(PDF) Intervariable Influence Analysis of Hierarchy of Effect (Hoe) Model in Cross-Border E-Commerce (Study Case - Shopee and Lazada)
(PDF) Intervariable Influence Analysis of Hierarchy of Effect (Hoe) Model in Cross-Border E-Commerce (Study Case - Shopee and Lazada)
INTERVARIABLE INFLUENCE ANALYSIS OF HIERARCHY OF EFFECT (HOE) MODEL IN CROSS-BORDER E-COMMERCE (STUDY CASE: SHOPEE
AND LAZADA)
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ABSTRACT
Manuscript type: Empirical research
Research aims: This study was conducted to analyze and develop the intervariable inuence
within the stages of HOE Model in CBEC context.
Design/methodology/approach: Based on the Hierarchy of Effect (HOE) model which con-
sists of the stages of customer progression of learning and decision-making as a response of
their shopping experiences. A total research data of 1,651 respondents were collected through
a structured questionnaire. SEM method was used to test the proposed research model.
Research ndings: HOE Model was found to vary based on the level of product cognition
and platform involvement. Two case studies provide different results which occur due to the
different shopping journey held by the customer from the stages of cognition and involvement
to the decision of making a purchase.
Theoretical Contribution/Originality: The less attention that was given to the customer
behavior in CBEC context has driven the authors to analyze customer journey from prod-
uct cognition to actual behavior stage in CBEC context. The modication towards previous
research model is conducted to extend the analysis with a purpose to provide a full picture of
the customer experience and the factors that inuence their buying decision.
Practitioner/Policy Implication: Provide insights to encourage parties involved for imple-
menting strategic plans that could escalate market presence and competitiveness of Indonesia
CBEC at the global trade.
Research limitation/Implications: The authors extend the research model to actual behavior
stage which creates a wider unexplored variables on the formation of perceived trust and the
overall affective stage.
112
Diyang Risma Gabriella et al. / ASEAN Marketing Journal © Desember (2020) Vol. XII No. 2 113
have
Download full-text been widely used by cross-border consum- important to encourage
Copy link their purchase intention.
ers,PDF
such as AmazonRead full-text
(Emily Download
D., 2020) which has citation
Ultimately, successfully driving consumers’
more than 197 million visitors from all over the actual purchases will benet sellers, platform
world each month, Zalora with 2 million visits managers, and the industry itself. In addition,
every month from all over the world (Annelle, this research can contribute to providing addi-
TJ, 2020), Shopee and Lazada are also included tional references to academics and practitioners
in the CBEC example because of the meeting related to the dynamics of situations faced by
between sellers and buyers from different coun- consumers and sellers during the consumer buy-
tries. These examples differ from traditional ing process in the HOE Model stages.
e-commerce such as BliBli.com, BukaLapak,
and Tokopedia where the entities involved come LITERATURE REVIEW
from the same country.
Cross-Border E-commerce (CBEC)
Indonesia has two largest cross-border e-com-
merce sites, which are Shopee and Lazada. CBEC is an international application of e-com-
Based on Iprice’s research (2019), it appears merce where there are network transactions in
that Shopee occupies the rst position in Indo- foreign trade (Hu & Luo, 2018). On the CBEC
nesia with the highest number of active users per platform, consumers can directly search for
month compared to Lazada. However, Lazada product information, place orders and have
won rst place in other Southeast Asian coun- products sent to their address (Y. Wang et al.,
tries, such as Malaysia, the Philippines, Singa- 2017). CBEC can be considered a breakthrough
pore and Thailand. This shows that Shopee and in international trade, whether in the context of
Lazada are the largest CBECs with their respec- B2B, B2C and C2C (Y. Wang et al., 2017).
tive strengths and dominance in each different
country where Lazada controls the Southeast Hierarchy of Eect (HOE) Model
Asian market and Shopee controls the Indo-
nesian market (Iprice, 2019). This fact is what HOE model is a consistent sequence consisting
supports the researchers to choose Shopee and consumer response in three stages; cognition,
Lazada as the two case studies in this research so affection, and conation. Cognition is seen as
that the performance of the two CBECs can be mental activity that is reected in the thoughts,
seen and researched from the scope of Indonesia beliefs, or knowledge of consumers about some
and Southeast Asia. products on the CBEC platform (Barry and
Howard, 1990), and researchers in the journal
Based on the data and analysis previously de- call this product stage cognition. In addition,
scribed, this study aims to analyze the role of affection is treated as a level of feelings and
product cognition on purchase intention and con- emotions that can be linked to the CBEC plat-
sumer actual purchasing behavior on the CBEC form (Wijaya, 2015). In this study, the main ref-
platform. So far, there has been little academic erence journal referred to this stage as platform
research on CBEC, especially in analyzing the emotion. Finally, conation reects the intention
effect of product cognition on purchasing inten- to carry out the behavior (e.g., purchase) or the
tion in CBEC (Zhu, Mou, & Benyoucef, 2019). behavior itself on the CBEC platform (Egan,
Hierarchy of Effect (HOE) Model which refers 2007).
to a series of sequential processes from cogni-
tion to conative stages or from product aware- Product Description
ness to actual purchase (Lavidge & Steiner,
1961a; Zhu et al., 2019) will be adopted by re- Consumers are generally rational decision mak-
searchers in the context of CBEC in Indonesia, ers who use product information, prices, ben-
114 Diyang Risma Gabriella et al. / ASEAN Marketing Journal © Desember (2020) Vol. XII No. 2
ets, and promotions to determine whether a H6: The higher the platform situational in-
product is of good quality or not (Gentry et al., volvement, the higher the purchase intention
2006). According to Toulmin (1958), convinc- for Cross-border E-commerce Shopee/ Laza-
ing communication with trust must have a struc- da.
ture and well-ordered content.
Perceived Trust
H1: The higher the quality of the product de-
scription, the higher the perceived trust will be Bradach & Eccles (1989) view trust as a con-
https://www.researchgate.net/publication/348926733_INTERVARIABLE_INFLUENCE_ANALYSIS_OF_HIERARCHY_OF_EFFECT_HOE_MODEL_I… 3/11
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p , g p ( )
towards Cross-border
Download full-text PDF E-commerce
Read full-text Shopee/ trol mechanism
Download citation that facilitates
Copy link the exchange
Lazada. of relationships characterized by uncertain-
ty, vulnerability, and dependence. Many re-
Product Awareness searchers argue that trust is an important sup-
porting factor in online transactions, where
Consumer awareness is an instrument that there is uncertainty, information asymmetry
businesses use to build consumer attitudes and fear of opportunism (Gefen et al., 2003;
towards a brand or company by creating as- Triandis, 1980).
sociations and trust of the target audience in
a particular organization or product. In order H7: The higher the perceived trust, the high-
to identify the success of consumer attitudes er the purchase intention in Cross-border
towards a brand or company, it is important to E-commerce Shopee/ Lazada.
create protable brand associations and brand
trust. Awareness can inuence consumer per- Purchase Intention
ceptions and attitudes (Foroudi, 2019).
Hsu (1987) suggests that purchase intention
H2: The higher the product awareness, the refers to certain exchange behaviors created
higher the perceived trust in Cross-border after a consumer’s general evaluation of a
E-commerce Shopee/ Lazada product. Chang et al. (2016) show that buying
intention in CBEC, is inuenced by percep-
Platform Involvement tions of security, privacy, and the perceived
benets of transacting in CBEC.
According to the commitment-involvement
theory, when a person has a strong commit- H8: The higher the purchase intention, the
ment to an activity or behavior, he is unlikely higher the actual purchase towards Cross-bor-
to take the initiative to stop his activity or be- der E-commerce Shopee/ Lazada.
havior (Helgeson et al., 2002). Platform in-
volvement is divided into platform enduring Actual Purchase Behavior
involvement and platform situational involve-
ment. Platform enduring involvement reects Researchers have considered buying intention
the level of continued concern with the plat- as a proxy for actual buying behavior (Arm-
form. This can happen consistently for a long strong, Morwitz, & Kumar, 2000). Another
time (Albaum et al., 1998). Meanwhile, plat- aspect of actual purchases is to accurately
form situational involvement reects transient estimate the willingness of consumers to pay
feelings for the platform in terms of consumer the maximum price for a product (Lowe and
desires, interests, and beliefs. Alpert, 2010; Voelckner, 2006; Wertenbroch
and Skiera, 2002). This is especially import-
H3: The higher the platform enduring in- ant when successfully planning and evaluat-
volvement, the higher the perceived trust in ing pricing strategies, advertising, and pro-
Cross-border E-commerce Shopee/ Lazada. motional activities (Jedidi and Zhang, 2002)
or when developing new products (Morwitz,
H4: The higher the platform situational in- 2001).
volvement, the higher the perceived trust in
Cross-border E-commerce Shopee/ Lazada. RESEARCH METHOD
H5: The higher the platform enduring in- Data Collection Methods
volvement, the higher the purchase intention
in Cross-border E-commerce Shopee/ Laza- There are two methods that researchers use,
da. which are primary data and secondary data.
Diyang Risma Gabriella et al. / ASEAN Marketing Journal © Desember (2020) Vol. XII No. 2 115
116 Diyang Risma Gabriella et al. / ASEAN Marketing Journal © Desember (2020) Vol. XII No. 2
for CBEC Lazada. Furthermore, both CBECs ≥ 1.96. Except SI5 of the platform situational
were dominated by respondents with occupa- involvement variable which has an SLF value
tion as students, which are 74.79% for Shop- below the minimum limit, which is 0.44. Al-
https://www.researchgate.net/publication/348926733_INTERVARIABLE_INFLUENCE_ANALYSIS_OF_HIERARCHY_OF_EFFECT_HOE_MODEL_I… 5/11
1/3/23, 7:50 PM (PDF) INTERVARIABLE INFLUENCE ANALYSIS OF HIERARCHY OF EFFECT (HOE) MODEL IN CROSS-BORDER E-COMMER…
ee CBEC and 63.51% for CBEC Lazada. In though it does not cross the SLF 0.5 limit, based
addition,
Download respondents
full-text PDF were
Readalso dominated byDownload
full-text on Igbaria
citation et al. (1997), thislink
Copy value can still be de-
those from Jabodetabek, which are 52.46% for clared valid because it is still above 0.30 so that
CBEC Shopee and 50.81% for CBEC Lazada. the SI5 indicator can be further processed. Then,
Regarding the respondents’ average expendi- in terms of reliability, all variables also show re-
ture per month, the majority of respondents in liable results because they have the construct
both CBECs spent <IDR 1,000,000.00, which reliability (CR) number ≥ 0.70 and the variance
are 41.14% for Shopee CBEC and 35.95% for extracted (VE) value 0.50. Furthermore, the re-
CBEC Lazada. sults showed that all indicators had valid values
in the Lazada CBEC case study. In addition, all
The Measurement Model (Conrmatory variables also show reliable results. Therefore,
Factor Analysis) it can be concluded that all indicators and vari-
ables in the study of CBEC Shopee and CBEC
Based on the validity and reliability test results Lazada respondents have valid and reliable val-
of the Shopee CBEC case study main test, it was ues so that they can be used further in structural
found that all indicators have valid value, which tests.
were marked by the SLF value ≥ 0.5 and t-value
Figure 2. Goodness of Fit for Measurement Figure 3. Goodness of Fit for Structural
Model Model
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