Driving Factors Online Shopping in the Era of New Normal

Marike A. S. Kondoj, Herry S. Langi and Yoice R. Putung

Politeknik Negeri Manado, Jalan Raya Politeknik, Indonesia

Keywords: Online Shopping, Quantitative, Agile, MSMEs, North Sulawesi.

Abstract: Online shopping is not something that has just emerged due to the COVID-19 pandemic. The development

of information technology accelerates the growth of infrastructure that makes it easier for consumers to shop

online. The increasing use of the internet provides prospects for the development of digital marketing. This

research aims to analyze the factors that encourage consumers to do online shopping, especially in North

Sulawesi. All respondents have done online shopping is the new normal. This research is a quantitative

descriptive study, with a survey method and a questionnaire as the primary data collection tool. To develop

the system development with a short development duration, we use the Agile method at this application

development stage. Results obtained by 56.8% of respondents argued that the ease of shopping and access to

detailed information about products were the driving factors for online shopping, especially during the

pandemic. The results of this research are contributing to innovate the development of online shopping

applications for MSMEs for coconut-derived products in North Sulawesi.

1 INTRODUCTION

Currently, multitasking

media competes with TV media

to attract consumers' attention. The current global

phenomenon has changed the way consumers shop

and buys goods. Many companies are currently using

the internet to cut the cost of marketing a product to

stay ahead in a very competitive market .

Mulpuru, 2013, Forrester research estimates that

U.S. online retail will reach $262 billion and $370

billion by 2013 and 2017, respectively, representing

a compound annual growth rate of 10%. The

increasing way of online shopping today in the

new normal era is an interesting thing to research in-

depth to develop a system that can help MSMEs in

North Sulawesi.

With the COVID-19 pandemic there has been a

rapid change in buyer behavior. This encourages

every effort to reform marketing strategy. The

purpose of this study is to find the main factors that

encourage people to shop online during the

pandemic, so that the results of this study contribute

to innovating online shopping/e- commerce systems

to encourage economic growth, especially MSMEs

for coconut products in North Sulawesi (SULUT).

The many problems that have arisen due to the Covid-

19 Pandemic have encouraged MSMEs actors to

make breakthroughs that can encourage business

continuity. As a result of the pandemic, Taiwan

experienced disruption of the agricultural food supply

chain to supply market needs which experienced a

surge in demand (Chang, 2021). Apart from the

problems experienced by all business actors and

consumers during the pandemic with social

restrictions, working from home, the tourism industry

is quiet and many workers have been laid off, but we

must admit that on the other hand there is a positive

impact on the availability of e-platforms. - online

commerce that answers the need by sending goods to

the place/home.

2 SYSTEM ANALYSIS METHOD

This research is a quantitative descriptive study,

which describes the state of the subject or object of

research based on the facts or as they are. Descriptive

research only describes research situations or events,

does not seek or explain relationships, does not test

hypotheses, or make predictions. In addition, this

study focuses on observations and existing facts .

Likert scale is an instrument used to receive

respondents in responding to several statements in the

questionnaire. The data obtained are simplified in the

form of single table analysis and graphs so that they

are easy to read and interpret.

Kondoj, M., Langi, H. and Putung, Y.

Driving Factors Online Shopping in the Era of New Nor mal.

DOI: 10.5220/0010960600003260

In Proceedings of the 4th International Conference on Applied Science and Technology on Engineering Science (iCAST-ES 2021), pages 1123-1126

ISBN: 978-989-758-615-6; ISSN: 2975-8246

 2023 by SCITEPRESS – Science and Technology Publications, Lda. Under CC license (CC BY-NC-ND 4.0)

1123

The agile method was chosen as a reference in

system development because the development time

is quite short and cost-effective so that it allows fast

application usage. This research using 6 stages of the

Agile method, namely: planning, design, coding,

testing, documentation, and deployment and

maintenance.

3 RESULT AND DISCUSSION

The COVID-19 pandemic is unprecedented, its

consequences defying the most predictable scenario

(Carlsson-Szlezak Martin and Paul. 2020). COVID-

19 has had a far-reaching impact on the global

economy, with several countries closing their stock

markets, closing corporate offices, retiring small

businesses, and canceling large social events.

In Great Britain, economic spending has largely

been diverted to necessities, such as groceries. In

Denmark market

consumption of products and

services has fallen

by 27% with economic spending

largely diverted to personal protective equipment.

The same situation happened in Indonesia. The State

Expenditure Budget, which was originally estimated

at Rp 2,540,422 trillion, has increased to Rp 2,613.8

trillion.

In this research, the participating respondents

came from 14 districts / cities in North Sulawesi aged

15-56 years with 43.2% women and 56.8% men

where all respondents affected by the COVID-19

pandemic had done shopping and online transactions

during the pandemic. The questions developed in the

questionnaire include open and closed questions, so

that respondents can provide their opinions regarding

the questions posed without being limited by choices.

From the results obtained the distribution of the

questionnaire as shown in table 1 :

Table 1 : Respondent.

Address Res

ondent

Manado 39.8

Bitun

27.3

Minahasa Utara 10.2

Minahasa Selata

5.7

Minahasa Ten

ara 3.4

Boltim 3.4

Othe

ions/Cities

10.2

This State Budget consists of the Central

Government Expenditure Budget (ABPP) of IDR

1,851.10 trillion, including additional spending for

handling the COVID-19 pandemic of IDR 255.110

trillion. The Central Government Budget Structure

(ABPP) prioritizes its use for handling the COVID-

19 pandemic and its impacts in the form of threats that

endanger the national economy and/or financial

system stability with a focus on health spending,

social safety nets, and economic recovery. In addition,

for the TKDD Expenditure Budget, the government

has determined that the Village Fund Budget can be

used, among others, as a social safety net fund in the

village in the form of direct cash assistance to the poor

in the village and activities for handling the COVID-

19 outbreak .

Based on a survey released by Populix, online

shopping or e-commerce platforms are the people's

choice in meeting their daily needs. During the

pandemic, the majority of people work from home

according to government recommendations, as well

as in North Sulawesi. People surf with e-commerce,

gaming, banking, automotive, entertainment

applications, and so on.

From the results of the study, during the Covid-19

pandemic in Indonesia, there was a significant spike

in the pattern of using E-commerce by the public as a

means of meeting needs. This increase was seen in the

first quarter of 2020, which coincided with the

emergence of the first cases of COVID-19 in

Indonesia, and continued to increase in the second

quarter by 38%. This research is quantitative where

the process of collecting data is by using a

questionnaire method.

The respondent's address is one of the most

valuable variables. To find out whether North

Sulawesi is familiar with online shopping and

transaction technology. The graph below shows the

respondents who participated in this research in

Figure 1.

Figure 1: Respondents Address.

Based on previous research on consumer behavior

analysis, consumer motivation is one of the key

factors in online shopping. This motivation

encourages consumers to choose how to shop

according to their wants and needs .

iCAST-ES 2021 - International Conference on Applied Science and Technology on Engineering Science

1124

Based on the results of the respondent's test

regarding the factors that encourage online shopping,

56.8%, namely providing convenience both in

choosing products, making transactions, and

consumers just waiting at home. They said the same

thing, namely about the ease of both viewing and

selecting products, transacting and receiving goods

on the spot. These factors greatly affect the pandemic

situation . In addition, 19.3% said reducing activities,

and contact with people in addition to saving time

7.9% and another 16% had very varied responses.

From the results of direct interviews with them,

online shopping has been done not only during the

pandemic. In addition, some say that they are cool and

enjoy browsing the internet on online shopping sites

to see the products offered even though there is no

desire to buy at that time because they only fill time

when social restrictions are imposed and work from

home.

Consumer behavior that currently tends to try

something new and think innovatively opens

opportunities for all business actors, especially

businesses in the field of coconut derivative products

in North Sulawesi to innovate digital-based marketing

and sales models. It is based that online shopping has

a positive influence on consumers in taking attitudes

. From the questions given regarding the need for

online shopping sites / websites during the pandemic

47.7% of respondents strongly agree that currently in

running a business every business actor has an online

shopping service or website, not just making the

website as a promotional medium, 21.6% agree and

30.7% disagree. Those who disagree do not mean that

they have never done online shopping, but assume

that the availability of supporting infrastructure

requires a large amount of money. Respondent test

results related to the availability of online shopping

services are presented in Figure 2:

Figure 2: Respondents Test.

The convenience factor in shopping online is a

driving factor so that 97.7% think that online

shopping is very effective for increasing sales during

the pandemic. For respondents who come from the

city of Manado which is the provincial capital, 77%

of respondents experienced an increase in online

shopping activities during the pandemic.

In the Global Journal, the convenience factor is

the reason most respondents choose e-commerce. The

convenience of being able to buy by sitting at home

is 52.2% and the convenience of transactions can be

done 24 hours by 50.7%. This convenience factor is

the main factor that people choose to use E-commerce

. The results of this study are in line with the results

of research that has been carried out.

The price of the product has the most influential

factor on purchasing products online, then product

security, guarantees, and delivery time. In addition,

the company's reputation, information privacy, and

good product descriptions .

Because the need for online shopping services is

the most valuable thing in the era of new normal, the

web- based application that we have developed to

make it easier for buyers and sellers to conduct online

shopping transactions has an interface as shown

below.

Figure 3: Interface Design.

Interface design that is developed to meet user

needs regarding user and MSMEs needs. The

developed interface can be easily used because the

existing features are very familiar to the user. The

Agile method is used as a reference for system

development because it only takes a short time,

especially since the practice of social restrictions in

all regions in Indonesia since the pandemic.

4 CONCLUSION

Simplicity is an important factor in online shopping.

consumers must enjoy in terms of viewing details and

selecting products, making transactions, services, and

using applications that support online shopping

Driving Factors Online Shopping in the Era of New Normal

1125

services. based on the test results of respondents

showed that 47.7% of respondents strongly agree that

currently in running a business every business actor

has an online shopping service or website, not just

making the website as a promotional medium, 21.6%

agree and 30.7% disagree.

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