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Analysis of Indonesian Students Online Behavior in China - Evelyn Pertiwi

Provide an analysis of the online purchase behavior of Indonesian students in China. This analysis provide some insight about how and what students are more likely to purchase.
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  ANALYSIS OF INDONESIAN STUDENTS ONLINE PURCHASE BEHAVIOR IN WUHAN Evelyn Pertiwi  –   PhD Candidate, Wuhan University of Technology 1.   Introduction Over the last few years, the development of Internet in Southeast Asia has been phenomenal (Nielsen 2011a). In Indonesia alone, the number of Internet users has grown from 25 million in 2008 (APJII 2012) to 74.6 million users in October 2013 (Lukman 2013). This represent a 198 percent in 6 years. According to APJIII forecast, this number will reach 100 million by 2015. Although the internet penetration only account for 30% of total population, the number of new users has seen an increase of more than 10 million every year since 2010 (Lukman 2013). Along with the development of Internet, the e-commerce market has also seen an important growth in Indonesia (VelaAsia, 2013). Over the years, B2C, C2C, group buying, and ranking e-commerce website have grown in popularity in Indonesia (Utomo, 2012). More and more  people find convenient to purchase from home or office rather than moving from one shop to another for a particular item and wait in long lines to pay. However, the e-commerce development is facing important challenges. Various researches have pointed out the socio-technological limitations resulting from the disparity of Internet access (Veritrans & DailySocial, 2012; Utomo, 2012). Furthermore, a study made by Susanto, Lee, & Zo (2011) pointed out that Indonesian online shoppers still have a limited trust in Internet banking mainly due to the dimensionality of trust in mediating the use of technological system. In comparison, China is currently on the right track to become the largest e-commerce market in the world (Chong, 2014). While price is still the primary motivator for shopping online, Chinese shoppers are shifting online for other reasons, too. In a survey made by Hoffmann, Lannes and Dai (2012), the authors found out that convenience and variety have gained ground and are now major considerations for a surprising number of online shoppers: 19% of survey respondents said convenience is the primary reason for shopping online, while 15%  pointed to variety as the major reason. Another trend is that China’s e -commerce ecosystem including sourcing, payment and delivery  –   has developed to a point where customers are trusting more and more online transactions (Hoffmann, Lannes and Dai, 2012). We conducted this research to analyze whether accessing more reliable e-commerce environment can influence Indonesian middle-class to purchase online. In our case, we used an online survey to analyze Indonesian students online purchase behavior in Wuhan. Because all of the students coming to China belong to the middle-class, our survey is providing an interesting analyze on the influence of China e-commerce environment on Indonesian online  purchase behavior. The study is composed of three parts: a presentation of the research contents and methodology, the research findings, and the conclusions of our research.  2.   Research Contents and Methodology 2.1.   Objectives 1.   Determinate whether Indonesian students who come to china tend purchase online due to the easy Internet access. 2.   Determinate whether the students’ demographic factors have an impact on their online  purchase behavior. 3.   Determinate whether the income, funding sources and major have an impact on the students online purchase behavior. 4.   Determinate which Chinese e-commerce platform is popular among Indonesian students. 5.   Determinate which products Indonesians students are more likely to purchase online. 2.2.   Research Questions Q 1 :  Is there any difference between Indonesian online purchase behavior before and after coming to Wuhan? Q 2 : Do the gender Indonesian students have an impact on their online shopping frequency in Wuhan? Q 3 :  Do the students major have an impact on their monthly income? Q 4 :  Do student funding source has an impact on their monthly income? Q 5 :  Do Indonesian students online purchase frequency in Wuhan influenced by their monthly income? Q 6 : Which e-commerce platform is popular among Indonesian students? Q 7 : What kind of products do Indonesian students like to purchase online? 2.3.   Hypothesis H I : There is no difference between Indonesian students online purchase experience before coming to Wuhan and after. H II : There is no difference between the gender of Indonesian students and their online  purchase frequency in Wuhan. H III : There is no difference between Indonesian students major and monthly income. H IV : The funding source doesn’t have any impact on the students’  monthly income. H V :  The monthly income of Indonesian students doesn’t have any impact on their online  purchase frequency.  2.4.   Methodology For this research, we used a questionnaire to collect primary data. The questionnaire was distributed randomly among Indonesian students in Wuhan through Social Media Group. It was composed of two parts: demographic information and questions related patterns of internet shopping behavior. The first part of the questionnaire measured respondents’ demographic information asking for the participants’ sex, age , current major, and monthly income. The second part of the questionnaire had questions related patterns of actual internet shopping behavior, also looked in detail at preferred products, and which e-commerce  platforms they visit in Wuhan. The data collection was initiated from March 19 th , 2014 and terminated in March 30 th , 2014 covering a period of 11 days. The study surveyed 52 respondents in Wuhan, but during the  process of data analysis, questionnaires of 7 respondents were omitted due to paucity of information, reducing the numbers of usable responses to 45 respondents. 3.   Research Findings 3.1   Demographic Analysis of the respondents Graph 1 Genders of Indonesian students in Wuhan Among the respondents, 40 percent were female and 60 percent of male. The sample is representative of Indonesian students since the number of males in China is higher compare to female. Graph 2 Age of Indonesian students in Wuhan 60% 40% MaleFemale26.7 35.6 20.0 8.9 8.9 to 2122 to 2526 to 2930 to 33>34    The majority of respondents were aged between 22 to 25 years old (35.6 percent) followed by those aged between 18 to 21 years old (26.7 percent). The results show that most Indonesian students coming to China are freshly graduate from high school or university, and eager to  pursue better academic education from abroad. Graph 3 Indonesians students ’  majors in Wuhan   According to our questionnaire results, most of the Indonesian students in Wuhan are Bachelor (35.6 percent) and Master (35.6 percent). The number of students who study mainly Chinese is quite low which relatively low (15.6 percent). If before, most student who came to China were for learning Chinese language, it is no more the case now. Similarly to other developed country, China has become a country with a high level of education. Although less students learn Chinese as primary subject of study, it doesn’t mean that others are unable to speak Chinese. Knowing Chinese is a primary condition to purchase online as most Chinese e-commerce platform are all in Chinese. One limitation of our questionnaire is the lack of  precision about the study language of the Bachelor and Masters students. But in this research, we assume that all the respondents have sufficient knowledge of the Chinese language in order to  purchasing online since all students receive 6 months of mandatory Chinese course. Graph 4 Indonesian students funding source to study in China One important aspect of studying in China is the source of the income for tuition fee and daily expenses. From our survey, the majority of the respondents were students who received a scholarship either from the Chinese government or from the Indonesian government (64.4 percent). This has an important impact of the students monthly incomes since their expenses are directly 15.6 35.6 35.6 13.3[VALUE]% [VALUE]% ScholarshipSelf-Support
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