Megawati Simanjuntak
Department of Family and Consumer Sciences
Faculty of Human Ecology,
Bogor Agricultural University (IPB), Indonesia
E-mail: mega_juntak@apps.ipb.ac.id
Submission: 22/05/2018
Accept: 06/06/2018
ABSTRACT
The purpose of this
research was to analyze factors that influence Generation Y’s complaint
behavior in online shopping. In general, Generation Y’s consumer of this
research have a good perception of consumer rights. In contrast, the result
showed that Generation Y in this research had a low complaint behavior. The
research found that gender, strivers lifestyle, and number of social media
account were influence Generation Y’s complaint behavior in online shopping.
The result showed that male student did more complaint than female student.
Generation Y who had strivers lifestyle will increase complaint behavior. The
more Generation Y had social media account, the more Generation Y prefer to did
a complaint.
Keywords: complaint,
Generation Y, lifestyle, perception, internet usage
1. INTRODUCTION
The
rapid development of technology led to a shift in values and a change in the
mindset of consumers on the Internet as an alternative medium of shopping
(LESTARI, 2014). Indonesia ranked sixth country of the world's Internet users
based on smartphone users with a total of 83.7 million (EMARKETER, 2014).
Research
results of Brand and Marketing Institute Research (2014) showed that the
average of Indonesian consumer spending for online shopping reach Rp825 000 or
around US$ 63 per year. Items which commonly purchased by online consumers are
fashion, beauty products, toys, computers, electronics, gadgets, household
supplies, software, books, magazines, travel, hotel, DVD, and CD (CHO et al., 2002;
DELAFROOZ et al., 2010; VEERALAKSHMI, 2013; KHAN et al., 2014).
Second
largest age group of the population of Internet users are 19 to 24 years after
the age group > 25 (STATISTIC OF INDONESIA, 2013). This age group is
classified as Generation Y and are a potential online shopping consumers
(VERONIKA, 2013).
Generation
Y were born between 1980 and 1995 with a certain characteristic such are
confident, independent, goal-oriented, always up to date with the latest
information, and are able to select and adapt technology in various aspects of
life, including shopping (ASHRAF et al., 2013; MEIER; CROCKER, 2010; ISMAIL; LU,
2014; LUTHFI, 2014).
Online
shopping has the potential to harm consumers in terms of security of
transactions, include inconsistency of type and quality of the goods as
promised, inaccuracies time of delivery of goods, as well as the insecurity of
transactions (NATIONAL CONSUMER PROTECTION AGENCY, 2012).
The weak
position of the consumers plus consumer ignorance about where to complain when
problems arise add a row of problems facing by online shopping consumers.
Referring to Consumer Protection Act Nu. 8 year 1999, there are some consumers’
rights are often overlooked by businesses.
Online
consumers have a right to get clear information about the characteristics of
the product, the price (cost, hidden taxes, payment deadlines), and the actual
condition of the goods (ASHRAF et al., 2013). Social media is chosen by
Generation Y as a channel for complaints to vent anger on businesses (CLARK, 2013).
The
behavior of consumer complaints arises because of dissatisfaction, complaining
attitude, self-confidence, the chances of success to complaints, negative word
of mouth, and the intention to switch from the trader. Consumer’s confidence is
a key driver of consumers to make complaints (FERNANDES; SANTOS, 2008). The
tendency of consumers to complain on online shopping is higher when they do not
get a confirmation response when asked (CHO et al., 2002).
Therefore,
this study was addressed to: (1) identify the individual characteristics,
lifestyles, perceptions of rights and obligations of consumers, and complaints
behavior on online shopping of Generation Y’ consumers, and (2) analyze the
factors that influence the complaints behavior against online shopping of
Generation Y’ consumers.
2. LITERATURE REVIEW AND FRAMEWORK
Generation
Y were born in 1986 to 2005 (SHARP; DYE, 2014). Williams and Page (2010) stated
that the seven key values of Generation Y are: selection, meticulous,
integrity, collaboration, speed, entertainment, innovation, and customization.
Generation Y have several terms as the Millennial Generation, Echo Boomers, Why
Generation, Net Generation, Gen Wired, We Generation, DotNet, Ne(x)t
Generation, Nexters, First Globals, iPod Generation, and iYGeneration.
Generation
Y are growing well and wisely at their age. Generation Y were born at the time
of the computer and the Internet spread widely at home and at school, mutual
respect between ethnic groups and cultures, women are able to work full time,
born from a family with a father and a mother who worked, always connected with
social media, selfish, independent, and concerned with results rather than the
reason behind it.
Consumers
choose goods, services, and activities according to certain lifestyle. One's
lifestyle can be seen from the activities, interests, and his/her opinion
(SUMARWAN, 2011). Mafini et al. (2014) identifies seven shopping style that
appropriate to Generation Y, they are quality conscious, brand conscious, fun
looking for new things, hedonists, confused due too many choices, habits, brand
loyalty, and the fashion conscious. Brands of consumer products purchased by
consumers are in line with their lifestyles (KRISHNAN, 2011).
Consumers’
segmentation based on lifestyle according to Wilbanks (2005) research
classifies consumers into six criterias, they are: achievers, strivers,
fulfilleds, believers, experiencers, and makers.
Consumer’s
perceptions on product quality is measured as the determinant factor in
choosing the product (ZEITHAML, 1988). Perception is the first impression in
the minds of consumers and is the foundation before selecting and interpreting
the information into a more meaningful. Consumers will have a different
interpretation of the products according to the value of the needs and
expectations of consumers (GHANAMATHADAYYA; SRINIVAS, 2014). Consumer’s
perceptions will affect the level of customer satisfaction, buying decisions,
and decisions of consumers in using products (KAZMI, 2012).
Most of
consumers do not have the experience to seek redress and make complaints. A
grievance of consumers in making a complaint depends on the circumstances and
the size of the loss they felt (THOGERSEN et al., 2003). Research of Thogersen
et al. (2003) explains that consumers would have a higher tendency to complain
if they have a positive attitude about the complaint that they profess, are
increasingly sensitive to shortages or product defects, and the higher the
value of the grievances they felt. Cipriana et al. (2010) stated that the
dissatisfied consumer will tell their negative experiences to other consumers
and change their attitude towards goods or services.
Singh
(1988) divides the complaint behavior into three categories, namely voice
response, personal response, and third parties’ response. Voice responses means
consumer convey a complaint directly to businesses, customer service, or keep
silent and does not perform any action.
Private
response by exit (leaving the disappointing online shopping), express the
complaint verbally to the closest person (negative word of mouth), convey
complaints through social media, as well as boycotts on online store and their
products.
Third
parties’ response is conducted by convey a complaint through the legal system,
the media, newspapers, magazines, and authorized consumer organizations. Study
of Zain (2011) found that Asian consumers tend not to complain and pick a
negative word of mouth (WOM negative) as an alternative to express
dissatisfaction.
Consumers
will convey complaints when feeling aggrieved. Young consumers, have a high
monthly income, both male and female, as well as the highly educated ones would
complain when dissatisfied with the goods or services (LIU; ZHANG, 2007; CHEAWKAMOLPAT, 2009; CIPRIANA et al.,
2010). Complaints were conveyed because consumers had an unpleasant experience
when the performance of the products were under the expectations of consumers
(SCHIFFMAN; KANUK, 2008).
Based on
previous empirical study, the hypothesis that will be answered in this study are
as follows:
H1 : There is a significant effect of gender on the
behavior of the complaint
H2 : There is a significant effect of lifestyles on
the behavior of the complaint
H3 : There is a significant effect of number of
social media accounts on the behavior of the complaint
H4 : There is a significant effect of the perception
of rights and obligations of consumer on the behavior of the complaint
Figure
1: Research framework
3. METHOD
3.1.
Research
Design
This
study used cross sectional design with self-report methods. Under graduate
students were chosen as research sample due to the student as a consumer have
higher education and intellectual, and easier access to information as well as
more exposed to information. In addition, students are the representative of
Generation Y and belong to the consumer with a lifespan of 19 to 24 years which
are the second largest age group of internet users (STATISTICS INDONESIA,
2013). Students like to do online shopping because the ease of shopping (NAZIR
et al., 2012; PRATIWI, 2013).
3.2.
Population
and Sample
The
population of this study are active students in Bogor Agricultural University
in academic year of 2014-2015.
Non-probability sampling specifically snowball method was conducted to choose
the sample. One hundred respondents were selected using snowball technique. The
criteria that has to be met to be chosen as sample of this study were consumers
who conveyed online shopping at least three times with consideration once
convey complaints.
3.3.
Data
Types and Data Collection Techniques
Data
research include: (1) individual characteristics (sex and monthly allowances);
(2) lifestyle; (3) internet usage (intensity of internet access, number of
social media accounts); (4) perception of rights and obligations of consumers;
(5) complaint behavior on online shopping. The data obtained through
self-report method by using a questionnaire as a tool.
3.4.
Instruments
and Scale
Measurement’s
tool on the perception of rights and obligations of consumers is a modified
version of Ishak and Zabil (2012), Bhuian and Enazi (2013), and Zahrah (2014).
Consumer’s lifestyle segmentation using VALS2 instruments adopted from Wilbanks
(2005). Complaint behavior was measured with a modified instrument of Berry
(2013) and Kumar, Sanuri, and Kaid (2013). Several of online shopping sites
which frequently accessed was referred to Lukman (2014) that stated the 18 most
popular online stores in Indonesia.
Lifestyle
was measured by choosing one that best describes the consumer’s lifestyle.
Lifestyle that can be selected by consumers are achievers, strivers,
fulfilleds, believers, makers, or experiencers. Next, perception of the rights
and obligations of consumers was measured by using 15 statements. The scale
used to measure perception of the rights and obligations of consumers was four
scales, namely "strongly disagree (1)", "disagree (2)",
"agree (3)", and "strongly agree (4)". Behavior of
complaints on online shopping was measured by using 15 statements using four
scales, they are "never (1)", "rarely (2)", "often
(3)", and "always (4)".
3.5.
Instruments
Test
Instrument’s trial was conducted to twenty students that do not
chosen as respondents. The reliability’s value of the perception of rights and
obligations was 0.885 with 15 valid questions, and reliability’s value of
complaint behavior was 0.830 with 14 valid questions.
4. RESULT AND DISCUSSION
Complaint
behavior only influenced 9.3 percent by all independent variables (gender,
number of social media accounts, lifestyle, and the perception of rights and
obligations of consumers). A total of 90.8 percent of the rest is explained by
other factors not examined in this study. Gender, number of social media
accounts, and lifestyle influence significantly on complaint behavior. Gender
influence significantly and negatively as 19.1 percent (β = -0.191; p <0.1).
This
suggests that male complain more than female. Number of social media accounts
significantly and positively as 17.8 percent (β = 0.178; p <0.1). Lifestyle
strivers significantly affect the behavior of the complaint and positively as
20.3 percent (β = 0.203; p <0.05). Therefore, H1, H2 and H3 were supported,
whereas H4 was rejected.
Table 1
summarizes the hypothesis testing between the independent variables (gender,
lifestyles, number of social media accounts, perception of rights and
obligations), and dependent variable (complaint behavior). The regression
equation for the model, namely:
Y2 = 2.173 – 5.968D1 + 1.531X1 +
11.209D2 + 0.172X2
+ e
The above equation shows that male do more complain, every
increase of 1 social media accounts would raise the score of the behavior
complained as 1.513 points, every increase of 1 scores perception of rights and
obligations of consumers would raise the score behavior complained as 0.172
points, lifestyle strivers will raise complaint behavior score as 11.209 points
(Figure 2).
Table 1: Summary of the hypotheses
Hypotheses |
Statements |
Results |
Hypothesis 1 |
There is
a significant effect of gender on the behavior of the complaint |
Supported |
Hypothesis 2 |
There is
a significant effect of lifestyles on the behavior of the complaint |
Supported |
Hypothesis 3 |
There is
a significant effect of Number of Social Media Accounts on the behavior of
the complaint |
Supported |
Hypothesis 4 |
There is
a significant effect of the perception of rights and obligations of consume
on the behavior of the complaint |
Not supported |
Note: F value = 3.543 (p=0.010);
Adj. R2=0.0923; Durbin Watson=2.170; *
significant at p<0.1; ** significant at p<0.05
Figure 2: Regression analysis
This study was conducted to address the factors that influence
Generation Y’s complaints behavior on online shopping. Online shopping tune
young consumers because they do not find the right time and not ready to spend
hours and hours to shop (YORUK et al., 2011; ANBUMANI; SUNDAR, 2014).
Results showed that the average intensity of internet access for
students a day was 11.03 hours. Survey of Indonesian Internet Service Provider
Association (2015) found that 87.4 percent of students used the internet to
access the social network with the largest percentage (49%) of internet users
aged 18 to 25 years. That age group is the millennial generation (digital
natives) who was born when the internet began to be used widely.
Complaint behavior against the backdrop of dissatisfaction,
complaining attitude, confidence, chances of success of the complaint, the
delivery of negative word of mouth, and the intention to switch from businesses
(FERNANDES; SANTOS, 2008).
Consumers filed complaint when the product's performance was below
their expectations (SCHIFFMAN; KANUK, 2008). Due to the power of social media,
consumers can express disappointment through social networking accounts they
owned. Consumers have a new role as publisher and influencers to other
consumers (ICO, 2015). A higher
consumers’ tendency to complain was shown when
they do not get any confirmation
response when asked (CHO et al., 2002).
Gender negatively and significantly influences complaints
behavior. The finding showed that male students tend to make more complaints
than female students.
This is consistent with research of Yuliati and Anzola (2009) that
men do more complaints. Hakimah et al. (2010) shows that women prefer a
complaint passively. James (2013) states that women are more concerned about
the safety and risks of online shopping.
Meanwhile, research Ioanăs and Stoica (2014) explain as much as 80
percent of women make sure the product information before buying. Consumers
will find information about products from an online forum, businesses website,
facebook account, or a friend's recommendation.
Lifestyle is an integrated system of attitudes, values, interests,
opinions, and consumer behavior (SATHISH; RAJAMOHAN, 2012). Consumer with
strivers lifestyle has achievement motivation, characteristic of trendy and
lovers of pleasures (GHOSH, 2014). Consumers with strivers lifestyle always
want to look stylish, are easily bored, impulsive, imitate those charming and
wanted to get something that is outside of their range (SATHISH; RAJAMOHAN,
2012).
Strivers
lifestyle affected consumers in making complaints. Consumers with strivers
lifestyle have the following characteristics, namely low resource availability,
status-oriented, have a credit balance, spending money to buy clothes and
personal care products, concerned with self-image, and like to watch television
(VALENTINE; POWERS, 2013).
Strivers
are individuals who are stylish, have a high motivation to achieve, worrying
about the opinions of others, with the additional revenue is low
(TIDTICHUMRERNPORN, 2010). The increase in consumer incomes will decrease the
interest of consumers to verify product to be purchased (IOANĂS; STOICA, 2014).
Therefore, strivers will make complaints when an injustice by businesses
because they have a low income but want to always look stylish and recognition
from others.
Consumer
perceptions of rights and obligations are in the very good category. The
results showed that complaint behavior was not influenced by their perception
of rights and obligations. The results of in-depth interview showed that
consumers already have good perception and are very aware of the rights that
must be defended as an injustice by businesses.
However,
the implementation of the complaint depends on the level of mismatch conditions
with product is supposed, product pricing, and procedures for the return or
exchange of product. The more complicated procedures to follow, consumers
prefer to give up these products and do not make repeat purchase in the store
or they switch to another brand. Based on the result, the majority (81%) of
students agree that they do not complain because it was considered a waste of
time.
Number
of social media accounts affected the complaint behavior. This is consistent
with the findings of Instanbulluoglu (2013) that consumers who make complaints
via social media maximize the benefits
they get by minimize the costs. It is also in line with the principle of
minimax Kowalski (1996).
Kamerer
and Morris (2011) stated that the consumer motivations to make complaints
through social media are to increase public participation and make the message
more meaningful in achieving its objectives. Making complaints through social
media such as facebook and twitter is the easiest way to channel their anger.
The results of in-depth interviews found that file complaints through social
media make consumers feel relieved, although it is not enough to solve their
problem as it is not a major channel to complain.
More than half (55%) students were on very poor category of
complaint behavior. Zain (2011) found that Asian consumers tend not to complain
and spread negative word of mouth as an alternative to express their
dissatisfaction. Online consumers are better at expressing disappointment via
social media, but still relatively low in filing a complaint (CHO et al., 2002).
This is in accordance with Cipriana et al. (2010) that consumers
do not have enough time to make complaints and lack of confidence that the
problem can be solved. Consumers do not make complaints due to two things,
namely the consumers are satisfied with the products and services provided by
businesses and consumers who are not satisfied but chose not to make complaints
(KAU; LOH, 2006).
The results of in-depth interviews showed that low complaint also
caused students to be more selective in choosing an online store, so the
product they purchase will meet their order and expectation. An easy way they
do is to check through google, look at the number of followers, as well as see
the comments field and testimonials from other buyers.
Students contacted online shop due to late delivery, wrong size,
wrong color, and when the product are not in accordance with the promised
conditions. They often tell close friends and family members, when they
disappointed. The results of in-depth interviews are in line with Paina and
Luca (2011) that consumers communicate directly with businesses, write comments
on blogs, websites, online forums, or do not perform any action when
experiencing problems in online purchasing.
Djamaludin, Rochany, and Simanjuntak (2008) explained that most of
the students tell friends and family regarding disappointment at online
purchasing, so that they can be more careful in choosing an online store. The
results showed that students remain loyal after the complaint process has been
handled well by businesses. In this study, the students also said the same
thing, that is not a deterrent to online shopping and make a negative
experience as a lesson.
"As consumers, we must
be smart. Filing complaint is our right. Sometimes, we will receive compensation,
but sometimes we will not. If we have disappointed, it would be better switch
to other strore.”
5. IMPLICATIONS, LIMITATIONS AND SUGGESTIONS
The weakness of this study is failed
to measure student satisfaction in online shopping. Therefore, it can not be
concluded whether the lack of students complaints behavior caused by reluctance
to lodge a complaint or they are very selective in choosing trusted online
store. Another limitation is the determination of the students do not
randomized so that the results can not be generalized to the population level.
The results showed that the student
complaint behavior towards online shopping is in very poor category. Therefore,
the government and other relevant institutions are expected to make efforts to
educate about the importance of defending the rights of consumers by filing a
complaint, especially in online shopping.
Governments can work with instagram
account indonesia blacklist and www.cekpenipu.com, as well as making the
official website of the government to facilitate consumer complaints in online
shopping. Future studies are expected to analyze the other factors that can
affect the behavior of a complaint that has not been investigated in this
study, such as satisfaction, different age groups, different educational
levels, channel complaints, type of consumer complaints, and cultural factors.
6. CONCLUSION
In general, Generation Y’s consumer of this research have a good
perception of consumer rights. In contrast, the result showed that Generation Y
in this research had a low complaint behavior. The research found that gender,
strivers lifestyle, and number of social media accounts influenced Generation
Y’s complaint behavior in online shopping. The result showed that males
consumers did more complaint than female consumers.
Generation Y who had strivers lifestyle will increase their
complaint behavior. The more Generation Y had social media accounts, the more
Generation Y prefer to complaint. Therefore, the government and other relevant
institutions are expected to educate consumers on the importance of defending
consumers’ rights by put award a complaint, especially in online shopping.
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