Product Cognition, Platform Emotion, Behavior Intention, and Actual Behavior Stage in Cross Border E-commerce (Case Study: Shopee as The Biggest Cross Border E-Commerce in Indonesia)

Abstract

Cross-border e-commerce (CBEC) is growing rapidly, it provides a new shopping experience for customers where they can involve in a global transaction. Each year, CBEC receives a significant total number of transactions, recorded in 2018, CBEC transactions have increased by 27.5% globally. Shopee as the biggest of Indonesia CBEC has dominated the market with a monthly average of 200.2 million visits. Competition between CBEC in Indonesia continues, they are competing to provide the best quality of products and platform experience to gain trust and purchase from the customers. Building a trust and customer intention to purchase in CBEC platform is a challenge, while customers’ awareness of products is the first step in creating optimal product cognition. Perceived trust can be improved by the involvement of customers in the CBEC platform, the provision of convincing product information, as well as the awareness of good product quality, thus it will influence purchase intention of customers. Therefore, this study was conducted to analyze the relationship between product cognition stage, platform emotion stage, behavior intention stage, and actual behavior stage at the biggest CBEC in Indonesia. The research is based on the Hierarchy of Effect (HOE) model which consists of customers stages of journey. The survey began in January to March, 2020 and 1.281 respondents were processed through a structured questionnaire, and data were analyzed using the Structural Equation Method (SEM).