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An Analysis of Trustworthiness in C2C e-commerce Indonesia: Kaskus and Tokopedia

A study submitted in partial fulfilment of the requirements for the degree of

Information System

at

THE UNIVERSITY OF SHEFFIELD

by

SETIANI

September 2016

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Abstract Background. In the contemporary world, e-commerce is growing rapidly with the

development of Internet. C2C (consumer to consumer) e-commerce is one of type e-

commerce which is very popular, including in Indonesia. Kaskus and Tokopedia are

the successful C2C e-commerce in Indonesia which have huge visitors everyday and

million transaction per month. However, there have been many issues regarding C2C

transaction in Indonesia such as fraudulent consumers and security system. In fact,

Indonesia has enormous Internet users but they are reluctant to purchase online

shopping through C2C e-commerce.

Aims. The aim of this research was to investigate trustworthiness consumers towards

C2C platforms based on model element trust. The model of element trust in this

research divided into three categories, namely Information, products, transaction,

communication, third party, and reputation. From each element could be found

which factor the most affect to consumers.

Methods. In this study, there were 110 samples from respondents who have never

conducted in C2C transaction and from those who have ever purchased in C2C

platforms (Tokopedia and Kaskus). The questionnaire was sent by Facebook group

to Indonesian student at University of Sheffield and random Facebook group so that

the demographic profiles of the respondents came from various backgrounds. The

pilot study also conducted in this research and sent it to Indonesian student at

University of Sheffield.

Results. The result of the survey analysed that Indonesia consumer’s is still sceptical

to purchase through C2C transaction, despite they often undertake transaction in

Tokopedia or Kaskus. Based on the result of statistical, Tokopedia and Kaskus have

different positive and negative attitude each element trust. However, in comparison

by mean scoring, it found that Tokopedia has more positive attitude than Kaskus.

Conclusions. It is concluded that consumer’s behaviour towards C2C platforms

depends on the element trust such as information, products or the reputation system.

Further study could include a more detailed analysis of particular demographic

profile such as gender, age, and education level.

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Acknowledgement I wish to take this opportunity to thank the following people who have helped me to

complete of this dissertation. First, I would like to thank Dr. Angela Lin for her most

valuable assistance and advice throughout this project. Second, I would like to

dedicate this dissertation to my parents for their constant love and encouragement,

Last, I would like to thank for those who helped participation on my questionnaires.

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Table of Contents Abstract..................................................................................................................................................1Acknowledgement............................................................................................................................3TableofContents...............................................................................................................................5ListofFigure........................................................................................................................................7ListofTables........................................................................................................................................8Chapter1.Introduction..................................................................................................................21.1Introduction..........................................................................................................................21.2Researchquestionandmotivation..........................................................................31.3Aimsandobjectivesofdissertation........................................................................31.4Methodology.........................................................................................................................31.5TheOutlineofthedissertation..................................................................................41.6Summary.................................................................................................................................5

Chapter2.Literaturereview........................................................................................................62.1Introduction..........................................................................................................................62.2TheConceptofTrust........................................................................................................62.3TheIntroductionofC2CE-Commerce.................................................................102.4TheIntroductionofOnlineTrustModel...........................................................11

2.5CaseStudies:.............................................................................................................................162.6Summary:............................................................................................................................21

Chapter3.Methodology..............................................................................................................223.1Introduction.......................................................................................................................223.2ResearchApproach........................................................................................................223.3Questionnaire...................................................................................................................233.4QuestionnaireDesignandAnalysis.....................................................................243.5Datacollection..................................................................................................................253.6DataAnalysis.....................................................................................................................253.7Summary..............................................................................................................................26

Chapter4.Findings........................................................................................................................274.1Introduction.......................................................................................................................274.2SampleProfile...................................................................................................................274.3FactordonotpurchaseC2Ctransaction...........................................................304.4TransactionExperience..............................................................................................314.5FactorInfluencingOnlineC2Ctransaction......................................................344.6Consumer’sattitudestowardstrustmodelinC2Cplatforms...............364.7Summary..............................................................................................................................52

Chapter5.Discussion...................................................................................................................52

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5.1Introduction.......................................................................................................................525.2Discussionoftheresult...............................................................................................525.3Summary..............................................................................................................................54

Chapter6.Conclusion...................................................................................................................556.1Introduction.......................................................................................................................556.2Conclusion...........................................................................................................................556.3RecommendationforC2CplatformsmodelsinIndonesia.....................566.4Thelimitationoftheresearch.................................................................................586.5Recommendationforfutureresearch................................................................58

Reference..............................................................................Error!Bookmarknotdefined.Appendix...............................................................................Error!Bookmarknotdefined.

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List of Figure FIGURE 2.4 MECHANISM KASPAY IN KASKUS ............................................................. 19

FIGURE 2.5 MECHANISM REKENING BERSAMA PAYMENT TOKOPEDIA ........................ 20

TABLE 4.1 GENDER AGE COMPOSITION ....................................................................... 27

FIGURE 4.1 EDUCATION LEVEL ................................................................................... 28

FIGURE 4.2 INTERNET EXPERIENCE ............................................................................. 29

FIGURE 4.3 HOURS SPEND ON THE INTERNET PER WEEK .............................................. 29

FIGURE 4.4 PARTICIPATION C2C TRANSACTION .......................................................... 30

FIGURE 4.5 THE REASONS NEVER CONDUCT IN C2C TRANSACTION ............................. 31

FIGURE 4.6 TRANSACTION EXPERIENCE ...................................................................... 32

TABLE 4.2 PLATFORM EXPERIENCE ............................................................................. 33

FIGURE 4.7 AVERAGE EXPENSES PER PURCHASE ......................................................... 34

TABLE 4.3 THE INFLUENCE OF FACTOR TO PURCHASE IN C2C PLATFORMS ................. 35

FIGURE 4.8 MOTIVATION FOR PURCHASING NEXT TIME ............................................... 36

FIGURE 4.9 MEAN SOCRE OF DESIGN SYSTEM .............................................................. 50

FIGURE 4.10 MEAN SCORE OF PAYMENT SYSTEM ........................................................ 51

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List of Tables TABLE 4.1 GENDER AGE COMPOSITION ....................................................................... 27

TABLE 4.2 PLATFORM EXPERIENCE ............................................................................. 33

TABLE 4.3 THE INFLUENCE OF FACTOR TO PURCHASE IN C2C PLATFORMS ................. 35

TABLE 4.4 COMPONENT MATRIX OF INFORMATION ..................................................... 37

TABLE 4.5 COMPONENT MATRIX OF PRODUCTS ........................................................... 38

TABLE 4.6 COMPONENT MATRIX OF COMMUNICATION ................................................ 38

TABLE 4.7 COMPONENT MATRIX OF TRANSACTION ..................................................... 39

TABLE 4.8 COMPONENT MATRIX OF THIRD PARTY ...................................................... 40

TABLE 4.9 COMPONENT MATRIX OF REPUTATION ....................................................... 41

TABLE 4.10 MEAN SCORE OF INFORMATION KASKUS .................................................. 42

TABLE 4.11 MEAN SCORE OF INFORMATION TOKOPEDIA ............................................ 43

TABLE 4.12 MEAN SCORE OF PRODUCTS KASKUS ....................................................... 43

TABLE 4.13 MEAN SCORE OF PRODUCTS TOKOPEDIA .................................................. 44

TABLE 4.14 MEAN SCORE OF TRANSACTION KASKUS ................................................. 44

TABLE 4.15 MEAN SCORE OF TRANSACTION TOKOPEDIA ............................................ 45

TABLE 4.16 MEAN SCORE OF COMMUNICATION KASKUS ............................................ 45

TABLE 4.17 MEAN SCORE OF COMMUNICATION TOKOPEDIA ....................................... 46

TABLE 4.18 MEAN SCORE OF THIRD PARTY KASKUS ................................................... 46

TABLE 4.19 MEAN SCORE OF THIRD PARTY TOKOPEDIA .............................................. 47

TABLE 4.20 MEAN SCORE OF REPUTATION KASKUS .................................................... 48

TABLE 4.21 MEAN SCORE OF REPUTATION TOKOPEDIA .............................................. 48

TABLE 4.22 MEAN SCORE OF DESIGN SYSTEM ............................................................. 49

TABLE 4.23 MEAN SCORE OF PAYMENT SYSTEM ......................................................... 50

TABLE 4.24 MEAN SCORE OF PAYMENT SYSTEM ......................................................... 51

TABLE 6.1 RECOMMENDATION FOR C2C TRUST ELEMENT IN INDONESIA .................... 56

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Chapter 1. Introduction 1.1 Introduction

The emergence of Internet has influenced in many fields such as business, economic,

and education. Internet has embedded in our daily lives which make life easier. In the

past several years, business like C2C commerce has extremely grown fast with

Internet development and it is one of the most popular ways in transaction online

shopping (Mohammed, 2005).

Ebay’s success as an online auction around the world help buyer find the product

what they want and seller can gain revenue from ebay. C2C is not only prominent in

west countries, Asia countries has become successful use the ebay. Although in

Indonesia does not have ebay platform, there are well-known C2C platforms namely,

Kaskus and Tokopedia. Both of these platforms are often accessed by consumers to

purchase in online shopping. Kaskus is the biggest online forum community in

Indonesia which provides C2C commerce. Consumer can see the review or find out

the information about anything such as merchant, reputation, product in forum in

order to enhance the trustworthiness to the customers. According to Singapore Post

(2014), Kaskus has visitors about 25 million every month and member registered

above 6.8 million in 2014. On the other hand, Kaskus’ competitor namely Tokopedia

also has huge visitors every month which is over 10 million with the sold products

two million a month in 2014. Tokopedia is C2C platforms that have same look like

eBay.

However, Indonesian users tend to look at the review products online and then

purchase products in store. Similarly, According to Turban (2008) that costumers

seek the information on C2C website about questions, negotiation, quality of

products, evaluation and the type of ways to trade for auction products. Despite,

Indonesia is one of the highest number of interne users in the world which is over 71

million of the total population of nearly 250 million were active internet users in

2013 (Statista, 2013), internet Indonesian users are unwilling to conduct transaction

C2C e-commerce. It is caused by providing personal information through online

could happen a risk of fraud so that the customers have mistrust to purchase online.

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In fact, consumer’s mistrust comes from different parties such as the sellers, buyers

and the platform’s system (Chow, 2015). The C2C platform’s system is one of the

main issues in Indonesia which is less secure for the customers.

1.2 Research question and motivation

According to the data in introduction section, Kaskus and Tokopedia are types of

C2C commerce but they have difference systems. As result of this, the Indonesian

user attitudes toward C2C platforms are influenced by various factors. It would be

interesting to investigate what the most influential factor trustworthiness for the

costumers. Thus it will know whether the consumer has the same level of

trustworthiness among these platforms (Kaskus and Tokopedia). This paper focuses

on customer attitudes in C2C platforms in order to discuss what factors will

influence the trustworthiness customers between two platforms and what the

differences these factors will make the platforms better in the future.

1.3 Aims and objectives of dissertation

The aim of this dissertation is to investigate what factors will influence the

trustworthiness users towards the platforms of Kaskus and Tokopedia in accordance

element trust and to determine which platforms can promote users are better

trustworthiness.

To achieve these aims, the dissertation can be divided into the following objectives:

1. To identify the current business of c2c market between Kaskus and

Tokopedia.

2. To identify the factors that influence consumer’s behaviour in C2C

transaction.

3. To identify the most importance factor transaction in C2C platforms.

4. To investigate the factor that influence consumer of these platforms based on

element trust.

1.4 Methodology

This study includes both primary and secondary research. The secondary research

that comes in the form of literature review discusses the theory of trust from different

perspective, illustrate customer’ attitude of trust in Indonesian’ culture, and study

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cases. In addition, the literature review examines a trust model in order to resolve the

problem

The primary research is based on an investigation towards Tokopedia and Kaskus’

Consumer. The investigation chose an inductive and qualitative method by sending

out the questionnaires. The participants are 100 current Tokopedia or Kaskus and the

data from them is presented in chapter four by using SPSS to analyse it.

1.5 The Outline of the dissertation

To indicate how the Chapters and sections fall into place, a brief overview of the

dissertation structure is presented as follows:

The first Chapter provides an overview of the problem background, the research

questions and motivation for the research, aims and objectives, methodology.

Finally, it outlines the structure of the dissertation.

The second Chapter reviews the key literature related to the topic of this dissertation,

such as the definition of trust in general and online, Elements trust online model

which is associated with e-commerce, and the background of study case of two C2C

platforms in Indonesia. And finally, the trust model that used in this research is also

presented in this Chapter.

The third Chapter explains how the study can be conducted, the reason of using

inductive approach and questionnaire methods. In addition, the design of the

questionnaire of this study is also presented and how the data would be analysed.

The fourth Chapter presents the results of the statistical research that achieved from

the analysis and evaluation towards online customer’ attitude with C2C platforms

Tokopedia and Kaskus. Finally, the result of the study examines with the findings

from literature review and case studies.

The final Chapter, the conclusions and limitations are discussed in Chapter five,

recommendations for further research. A full reference and appendix that includes

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the research questionnaire, the description of the interviews are provided at the end

of the dissertation.

1.6 Summary This chapter introduces the research field which includes overview of the

execution of the research, the research question and motivation, aims and

objectives,methodologyandthestructureadoptedinthisdissertation.

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Chapter 2. Literature review

2.1 Introduction

This chapter will elaborate the literature review related to the topic of this

dissertation such as the general concept of trust, the importance trust in E-commerce,

the definition of Customer to Customer (C2C) e-commerce, description regarding

perspective trust in Indonesia’s culture towards C2C platform, description about trust

model in previous studies, the presentation of trust model will use in this research

project, and introduce the studies case C2C platforms in Indonesia: Kaskus and

Tokopedia.

2.2 The Concept of Trust

2.2.1 The General Concept of Trust

Trust is a crucial in business activities, especially for conducting an online

transaction. The emergence of trust problem becomes a serious issue in the business

transaction. Many researches have shown studies about the definition of trust

according to their understanding. Trust has been defined in previous studies across

diverse disciplines, such as Marketing, psychological, management and Sociology.

From management perspective, trust is the key to building relationship between

partners in organisation or company. Without trust, changing partners would occur

that generates regulation company’s financial (Chow & Holden 1997). In marketing

concept, Roman (2003) indicated that trust facilitates interaction and negotiation two

parties that would generate company to company’ loyalty. In the psychological

perspective, the interaction interpersonal relationship that will generates emotions,

behaviour, and moods. In this sense, trust as “Individual’s current dispositional state

will affect people’s judgment towards the other party’s trustworthiness as well as

their tendency to form the initial trust with the other party” (Jones & George, 1998).

The tendency can affect how much an individual or party to trust another. The

tendency of a person is distinguished by culture, cultural background, experiences,

and personalities (Mayer, et al, 1995). Likewise, McKnight, Choudhury & Kacmar

(2002) agreed on trust as “multi-dimensional construct, which encompasses beliefs

in other party’s trustworthiness and the willingness to rely on the other party. In

other words, this reliance represents the willingness to be vulnerable to the other

party”.

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Schmidt et al (2007) defined trust as the subjective expectation of people concerning

the future action based on the other’s experience in the past. Gambetta (1988) stated

that trust is the performance of the person in which depends on the welfare of the

previous. Trust effects in interpersonal and group towards negative and positive

impact attitude (Cahill et al, 2003). Lewicki McAllister & Bies (1998) stated that the

Positive expectation in trust is related to other person or parties’ attitude. According

to Lewicki et al (1998), the positive expectation means an expectation the right

intention and behaviour by other parties can lead to having personal belief. Anget et

al (2001) mentioned trust as the emergence of individual or parties’ expectations in

which is good intention and good action. Strader et al (2002) stated that trust has

different context such as different people, roles, and scenarios. In general, the higher

of confidence that people have in the future behaviour, it depends on the higher of

the level of trust that someone has (Gefen, 2000).

2.2.2 The Importance of Trust in E-commerce

Trust has an extremely prominent issue in e-commerce. Trust is also the key to the

success of a transaction to be completed (Dimitriadis, 2001). Trust is more complex

to build in online transaction than offline (Hoffman et al, 1999). Some people trust to

make online transaction through phone or credit card, even when a failure occurrence

in the payment, they trust to service provider would correct the error. However, most

people are reluctant to get involved online purchasing because lack of

trustworthiness to give personal information to anonymous (Head et al, 2001).

According to Kini & Choobineh (1998) their research, user would have

trustworthiness in e-commerce when the interaction is under condition of risk. In

particular, when the financial transaction or personal information is involved in e-

commerce. Kini & Choobineh added an example that user are confident using

Internet for searching information because of low-risk. On the contrary, the financial

transaction is less used because it is very risky to share personal information. This

situation has proven by survey in the US that account for 70% users were concerned

to give personal information over the Internet, whilst user trusts to purchase Internet

use credit card was only 5% (Scott, 1997).

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Pittayachawan & Singh (2004) found out that most buyers want to buy a quality

product with a reasonable price while seller may sell a product with non-qualified

product in order to be well known in e-commerce marketplace. In other words, it can

be fraud for the buyers so that buyers are distrust to the seller in e-commerce. Trust

is essential to make transaction ecommerce will be successful (Tan & Thoen, 2000).

In C2C e-commerce has possibility to encounter distrust to the two parties because of

its mechanism. Before the buyers make a transaction to the sellers, the buyers need to

find some information about the goods, sellers, and method payments. Unlike

traditional commerce, consumers’ C2C e-commerce is not able to touch the goods

physically and also contact the seller without real. In this sense, the goods may have

different quality which is far from the buyers’ expectations in accordance

information on website. Davis (2000) explained that online consumer still rely on the

brand of product in which has shown its quality. Hence, the products which is from

local brand has to provide more information to the buyers. If the buyer is not

satisfied of the products, the products cannot exchange in the same time and it takes

longer to return and deliver new items or money. Moreover, the sellers need to

deliver the goods as soon as the buyer makes payments. In fact, the distrust of buyers

is not only come from the sellers, but also the payments. For example, the buyer has

done successfully make the payment, but the seller does not receive confirmation

payment. In this situation, fraud would occur if the mechanism of the transaction

does not perform in trustworthiness.

Many researchers have shown the trust relationship in global marketplace. Clarke

(1997) indicates that there are several factors trust relationship including merchant to

the buyer, customers and bank, bank and a merchant, merchants and banks, and a

trusted third party. Kolsaker and Payne (2003) found that security, confidentiality of

information and integrity are the subjects in trust building for consumers’ e-

commerce. According to Makelainen (2006), the trust relationship in C2C is divided

into three parts. The first part is the buyer and the sellers have to build the

trustworthiness each other. The second part is that the online auction platform is

needed to be trust by both the buyers and sellers. The third part trust relationship is

that both the buyer and seller need to trust the financial transaction processor in

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which assists the completion of the payment transaction and awaiting confirmation

of the payment from the financial transaction processor. This theory can be described

more detail in the figure 2.1 trust relationship in C2C transaction.

2.2.3 The attitude of Trust online in Indonesian Culture

Although Internet users in Indonesia are extremely high, the confidence to purchase

online shopping is low. Indonesian will read the review of products from Internet

before undertaking purchase online or offline. They intend to purchase an online

shop in a few months later when they feel confident about the products and vendors.

One of the obstacles is method online payment that Indonesian has low credit card

and debit card penetration (Watts, 2014). Giving personal information credit cards to

others lead to fraud online shopping. Still, an offline shop is preferable in Indonesia

because of the safe payment and also the products can be touched physically.

According to Chow (2015) CEO of Shopback market, there are several reasons why

Indonesian has perspective distrust in online shopping. These reasons are a challenge

for owner e-commerce in Indonesia. These are considered the most significant

reasons as follows:

1. Fraud Online

Buyers Sellers Trust

Auction Platforms

Financial Transactions

Trust Trust

Trust Trust

Figure 2.1 Mechanism Auction platforms

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Fraud online is occurred by some factors. First factor is Indonesian consumer usually

complain that the products is not as compatible as description on website. As the

result of this, they have perception that vendors attempt to make the products look

interesting, such as edit photo and inappropriate description. Second factor is scam

involved money transfer. In this sense, consumers have made a payment via bank

transfer but vendor did not receive the payment. The last factor is delivery service.

As Indonesia is an island country, it takes long time to send the products to other

island. Moreover, home address is difficult on the track for those who live in rural

areas because they do not have house number. Therefore, these factors are caused by

fraud online for Indonesian consumer.

2. Credit card

According to UBS report in 2014, Indonesian consumers are reluctant to make their

payments by credit card. The penetration of credit card in Indonesia is only 6%. It

shows that Indonesian have doubt to give personal information via online.

3. Infrastructure

Apart from fraud online and credit card problem, infrastructure is one of the reasons

that Indonesian consumers do not trust online shopping. In this context of

infrastructure is speed Internet. Slow Internet speed in some area, particularly in rural

area or countryside result in failure payment. Consequently, they are sceptical to

participate online shopping.

2.3 The Introduction of C2C E-Commerce

C2C e-commerce is one of model e-commerce and very popular where merchant can

sell the products whether is new or second-hand products based on auction method.

The process of bidding is only done by online. By providing intermediary or third

party who has platform, it facilitates the transaction for the consumers to the

merchants. Intermediary usually receives a commission from the transactions but

product exchanges is exclude the responsibility of intermediary. Jengwu et al (2009)

stated that C2C e-commerce as a virtual community where customers to customer

can perform a business function as well as social functions. In the social perspective,

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a virtual community will be able to gain interaction between its members for

developing friendships and may have common interest, exchange information, and

trading (Chen et al, 2009).

The most famous online auction in the world is eBay. eBay has branches in several

countries such as China, United Kingdom, and India. It has 233 million registered

members international global markets (eBay, 2007). Although there is no eBay in

Indonesia, hadi et al (2014) indicated that the percentage of Indonesian Internet users

are more than 60% using C2C e-Commerce. This percentage would happen more if

eBay had branch in Indonesia.

2.4 The Introduction of Online Trust Model

2.4.1 Theoretical online Trust Model

The development of technology has increased quality online business with providing

advance method payment such as credit card and telephone. Still, people are

sceptical to use these method payments as giving personal identification (Grabneur,

2002). Nevertheless, security of payment is not only the main issue to build

trustworthiness in online shopping. There are other factors must be considered in

building trust online. According to Hsu and Chuang (2014), the factor that need to be

considered are online trust in website, sellers, auction initiator, and group member.

Moreover, The fundamental differences of online and offline trust that is how trust is

built and maintained (Li et al, 2012). Online trust is how to use a the site by the user

where the user can rely on the information and services provided as well as

confidentiality using of their personal data (Kaasinen, 2005). The using of a website

or forum involves some features provided sites regarding the exchange of

information, and charging personal data provided by prospective customers who will

use a feature on the site. Issue ethical information about the individual should receive

more attention, especially the guarantee of privacy site users to carry out

transactions.

Basically trust building processes are involved between two parties namely sellers

and buyers. Sellers is as party to provide information about its products and buyers

is as second party which gives feedback to sellers after receive the products

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(Diagnault, et al, 2002). In fact, the past experience is a very effective way to

evaluate the trustworthiness, despite there is not constantly available for these

experiences. Tan (2003) explained that there is another way to build trust regardless

previous experience to the person that is the way online services should be developed

by the parties.

Xu and Guo (2016) proposed a model to analyse and solve the problem in order to

develop the trust building in C2C e-Commerce. They presented the model was based

on previous studies from Gefen et al. (2003), Li et al. (2012) and Kim et al. (2005). It

can be seen in figure 2.2 in a graphical way. Based on figure 2.2, the sellers provide

five elements to the buyers for giving feedback where the purpose of both sellers and

buyers are achieved. Furthermore, when the both parties interact each other in the

processing of trust, it will generate trust building stages which is located in the

middle of the box. Knowledge-based trust, experience-based trust, relationship-based

trust also can be described as stage of trust. These stages will move gradually to

other level stage when the parties between sellers and buyers achieve mutual trust.

The three of building stages can be shown in figure 2.2

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Figure 2.2 Trust model (Xu and Guo, 2016)

2.4.2 Elements of Online Trust

There have been a lot of researchers representing elements of online trust based on

their perspective. In order to improve consumers’ online trust, it is required

understanding of the element of online trust (Wang & Emurian, 2005). Hoffman et

al (1999) investigated that in the end of 20 century consumers concerned in website

security and privacy as the main elements of online trust. By the following century,

website interfaces turned out to be the major of elements to develop model in trust

building including security systems, interfaces, and information (Riegelsberger,

Sasse & McCarthy, 2003; Wang & Emurian, 2005).

Kim et al. (2005) divided the five elements of online trust building comprise

information/website, product, transaction, communication, and 3rd party. These

elements used by the seller to enhance the consumer’s trust and it was used by Xu

and Guo’s studies (figure 2.2).

a. Information/website

Information/website in this issue means that all of information used by seller to

promote their products on web store. According to Miaowen Xu & Xinlei Guo

(2016) in their research entitled Trust Building for Online Private Sellers: Case of

Taobao in China, one of effective things in e-commerce to enhance the trust of

buyers is the detailed product information, especially for first time buyer. Besides,

content design also influence trust building process (Wang & Emurian, 2005).

b. Product

Product refers to goods or service offered by the seller to fulfil the need of buyers.

Within the research of Xu and Guo (2016), they found that product quality is

decisively determine and enhance the buyers trust to sellers. It is utterly important to

put the quality of product in online shop to enhance the buyers’ trust.

c. Transaction

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Transaction means the quality of service online shop including payment, delivery,

policies of return and refund. Transaction also refers sales promotion for certain

product to attract the consumers (Kim et al, 2015).

d. Communication

Communication refers to instant online conversation between seller and buyers. Xu

and Guo (2016) also found that instant online chatting and WOM are the items that

can enhance the buyers’ initial trust to sellers.

e. 3rd party

3rd party means that how the 3rd party influences the sellers including provides

guarantee, control of false trading, fraud, and rating in order to improve the better

performance of online sellers. According to Xu & Guo (2016) in their research about

trust building, they revealed that items that can enhance the buyers’ trust are

regulation, combination of platforms and trustworthiness system. On the other hand,

weak control of Fraud and blackmail will reduce the mutual trust of buyers.

On the other side, Patokorpi and Kimppa (2006) identified different the elements of

online trust which are reputation, technology, expertise and relationship. However,

technology and expertise have same meaning with kim et al’ (2005) study.

- Reputation: In order to build online trust in e-commerce, reputation is the

first element that need to be considered by consumers. Strader and

Ramaswami (2002) pointed out that seller’s reputation and the previous

experience in C2C e-commerce are extremely important to help on trust

building. Furthermore, Einwiller (2001) added that reputation and brand are

considered trustworthy between the sellers and buyers.

- Technology: This element refers to design website which has to be supported

with appropriate features. Huang and Chang (2004) mentioned that web

design would impress to costumers including search tool, communication,

information products, security and privacy.

- Expertise: it means that service and delivery products should be well-timed

and provide accurate information so that facilitate consumer to find

information product quickly.

- Relationship building: It refers the relationship between sellers and buyers in

e-commerce are unclear as well as other business partners. Patokorpi and

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Kimppa (2006) stated “a close relationship is not necessarily a good

relationship. When an offline customer first uses the services of a company

online, he or she has an understanding of the company, its products and their

relationship. The customer may change his or her mind about the company

and about their mutual relationship if the company’s online presence differs

considerably from its offline image. After the relationship is built, typically

over some time, the customer can start to rationally believe that the trustee is

worthy of his or her trust”.

2.4.3 Trust Model in this Research Project

As Indonesian culture towards trust e-commerce has been elaborated in the attitude’s

section, in this section will elaborate trustworthiness C2C platform in Indonesia

which is categorised into six elements trust model. The author will propose trust

model towards the C2C platform which is adopted theory by Gefen et al. (2003), Li

et al. (2012) and Kim et al. (2005), and also Patokorpi and Kimppa (2006). However,

they used this model to analyse trustworthiness between the sellers and buyers, while

in this research, this model will use to analyse trustworthiness between the platforms

and buyers. Additionally, In Xu and Guo (2016), reputation was not included in their

research as category of the element on trust model. Most of consumers in online

shopping concern the information of the products that will result in reputation to the

sellers and its products (Shrum & Whutnow, 1998). Therefore, reputation will be

considered as element in the trust model in this dissertation.

This trust model is related to the current issue online shopping in Indonesia among

Kaskus and Tokopedia in which the buyers have distrust to purchase online shopping

through C2C platforms. As Kaskus and Tokopedia have difference systems, it can be

categorised into six elements trust model as approach the trust model. In order to

investigate outcomes six elements, it will generate customer’s attitude in which is

associated with experience based factor (Walzuch, et al, 2004).

16

2.5 Case Studies:

2.5.1 Background of Tokopedia and Kaskus:

Kaskus and Tokopedia are the biggest c2c platforms in Indonesia which is different

based on sales mechanism. Kaskus was established in 1999 by Andrew Darwis.

Kaskus was initially an online informal community forum of Indonesian student

abroad for publishing portal news about Indonesia. In 2008, it turned into proper

business as C2C e-commerce because of its sub-forums which is named forum jual

beli Kaskus. People can buy and sell anything whether the goods are new or used in

this sub-forum without fee of registration (Luthfihadi and Dhewanto, 2013). As a

result of this, in 2012 the number of transactions Kaskus can obtain 60 million dollar

per month, while from advertising reached 160 million dollar in 2014 (Yusuf, 2012).

At the same year, Kaskus had reached 7.8 million registered members and it is

growing every month by 120,000 (Lukman, 2014). Moreover, Kaskus is ranked

second in the category of e-commerce sites with the percentage of access from

visitor is 93.6 % or 42 million per month (Alexa statistic, 2016).

Buyers are usually concern to quality of the products by observing the price before

purchasing. In order to seek this information, buyers tend to read the review or

comments of other buyers in community forum. Hence, online community influences

to other users in the transaction which has a great potential in the development of

buying and selling in C2C platform in the future. However, review from other users

would not guarantee to trust others for the transaction. In 2011, members’ Kaskus

Platform - Information- Product- Transaction- Communication- Thirdparty- Reputation

Buyers

Figure 2.3 Trust Model used in this research project

17

committed fraud to other members that the sellers did not deliver the goods after the

buyers transferred the money. As result of this case, users’ Kaskus had decreased

gradually to conduct transactions. In addition, Authentication personal data user is

very low in Indonesia that everyone can make fake personal identification such as

address, email and photo. Most of the users who participate is fake as long as they

have a valid email. Still, users are sceptical that the good reviews may come from the

merchants who registered fake accounts.

Yet, Kaskus is the only one unique C2C platform in Indonesia which is based an

online community forum. Fu Zhihua (2009) stated that the future of market

development will be influenced by community – based C2C e-commerce. People

tend to look at the review first from others buyer before purchase than see the

product on Internet.

Tokopedia was released in 2009 and claimed as one of the biggest online

marketplace in Indonesia. Unlike Kaskus, Tokopedia has similar web design like

eBay and Taobao. Tokopedia has grown rapidly because its fund was supported from

SoftBanks. Tokopedia is C2C platform in Indonesia which is identical with Taobao

in China that the C2C platform has huge visitors. According to statisctic similar web,

Tokopedia is the first position as the most visited e-commerce site and following by

second rank is Kaskus. Tokopedia achieved transaction per month approximately

$291,000 per month with the number of items sold only 1.2 million per month in

2012 and then increased dramatically to 6 million per month in 2014 (Willis, 2016).

Co founder Tokopedia, Tanuwijaya stated that Internet users in 2012 attempted to

avoid shop online because the case of fraud online (sheley, 2013). It is related

Kaskus’ case in the same year so that Internet users need time to recover

trustworthiness in transaction online. In order to obtain trustworthiness from users,

both Kaskus and Tokopedia provide features such as sellers’ reputation, payments,

and review.

18

2.5.2 The difference between Kaskus and Tokopedia

Although both Kaskus and Tokopedia are popular in Indonesia, they have some

different features system and mechanism that they are providing for. The features as

follows:

Payment System:

Kaskus and Tokopedia have third party platform which is different name and

methods. Third party platform are famous for purchasing online shopping because it

is more safe to the customers than others payment. Paypal and escrow are famous

third party platform which is common use in the world. The third party services

authorize payment after the buyer receives the items (Wolverton, 2002).

According to CBEC report (2014), the amount of user credit cards in Indonesia

increased to approximately 15 million or 60% of the population. Gonzales (2003)

stated that the most easiest online payment system for C2C ecommerce is Paypal.

The issue of paypal In Indonesia is not as same as China. In china, customers do not

recommend to use paypal because the seller could disappear after receive payment

from the customers without send the products and also the regulation of currency

laws in China (Wang, 2006).

On the contrary, Paypal users in Indonesia are very low because of fraud problem. It

was caused about 25 million people had experience cyber crime using paypal. The

using of paypal requires a verification number credit card while credit card can only

be applied by those who meet the requirements such as minimum salary. As the

emergence of fake agency paypal using virtual credit card (VCC), it was interesting

for the buyers. The agency VCC offers cheap price to use paypal and the customers

just need to transfer the amount of price to the agency. As matter of fact, the agency

vanished after the customers transferred the money (Kaskus forum, 2012). Because

of this case, customers consumers concern to purchase payment use paypal and they

would rather choose another payments.

The issue of paypal payment made platforms C2C e-commerce support safe

electronic payment. Electronic payments have several benefits including efficiency

and flexibility without place or time barrier (Hy and Mykytyn, 2007). Kaskus has a

19

unique method of payment which is namely Kaspay. Kaspay is a third party service

where the customers need to put deposit to this account with minimum 50,000 IDR

(£3) and maximum 25,000,000 IDR (£1200). In other terms, Kaspay is a digital

wallet which links to customer’s bank account top up via bank transfer. In fact, not

all Indonesia bank support top up money to the Kaspay. Moreover, some merchants

in Kaskus do not have Kaspay services. In this context, buyers who want to purchase

via Kaspay must find merchants who have this service payment. In order to prevent

fraud, CBEC’s report (2014) also recommends to use National ID Card for

registration electronic payment.

Figure 2.4 Mechanism Kaspay in Kaskus

On the other hand, Tokopedia owns special method payment which is called

‘Rekening bersama’. There is no scientific study regarding the first development

rekening bersama in Indonesia but this method payment became well-known from

forum kaskus (Atmojo et al, 2016). The interpretation of rekening bersama in

English is Joint account. The mechanism of rekening bersama is easy in where

Tokopedia is a third party as an intermediary between sellers and buyers. After the

buyer transfer money to the joint account (rekening bersama )Tokepedia, Account

Tokopedia will notify to the sellers that the payment has been made then the goods

will be delivered by the sellers. Generally, this service charge the buyer but

Tokopedia provides free services at no extra charge.

20

Figure 2.5 Mechanism Rekening bersama payment Tokopedia

Search engine:

Tokopedia has features search for sellers in accordance discount price, method

delivery items, and the most of sell goods every merchant. Conversely, Kaskus has

limitation search for the customers such as discount price and price range which are

these categories provides as well as Tokopedia.

Fee Registration:

Both Tokopedia and Kaskus provides two options to register as seller that it is free or

pay monthly. The pay montly means the seller needs to pay subscription per month.

Nevertheless, the subscription member has benefit in which the logo merchant will

appear special verification with symbol thick or gold coins. However, Tokopedia

charge four fold more expensive than Kaskus.

Feedback and Reputation mechanism:

21

The feedback system from buyers has significant influence in which is provided

information about the transaction product and then it is determined trustworthiness of

the buyers to the sellers (Pavlou and Gefen, 2004).

User in Kaskus could not see the feedback more details regarding the products. The

user only can give the option symbols positive feedback, neutral, or negative

feedback. On the contrary, the feedback and reputation is obvious in Tokopedia. The

buyers are able to read the detail feedback from others buyers. If the buyers might

not feel satisfied with the goods, Tokopedia would investigate to the merchants.

Furthermore, there is reputation in every merchant with the amount of symbol points.

The high points show that the merchant has a good reputation.

Communication to the customers:

The another difference between tokopedia and kaskus is communication. In kaskus,

the customers may contact to the merchants via direct chat who are online at that

time. Although the merchants are offline, the customers still are able to leave the

messages. On the other side, despite Tokopedia does not provide chat direct to the

merchants, the customers can see the information when the merchants online or

offline the last time.

2.6 Summary:

This chapter of the dissertation has reviewed previous literatures of the concept of

trust in general and online transaction, the attitude of trust in Indonesia’s culture and

then presented the difference of mechanism between Kaskus platform and Tokopedia

Platform. In addition, the trust model of the dissertation has proposed in this chapter

so that it can be used to analyse trust relationship between the platforms and

customers.

22

Chapter 3. Methodology 3.1 Introduction

After reviewing literature review and case studies as secondary research in Chapter

two, the primary research will be presented in this chapter. The purpose of primary

research is to investigate trustworthiness C2C e-commerce in Indonesia by taking

case studies Tokopedia and Kaskus and then compare what the difference among

these platforms. Moreover, the reason of using inductive approach and questionnaire

methods will be explained in this chapter.

3.2 Research Approach

3.2.1 Inductive or deductive

Inductive approach is called bottom up which starts observation and then move in

particular experiences. The researcher develops a theory after looking at the data

from observation (Goddard & Melville, 2004). While, Deductive approach is called

top down which begins with an idea or hypothesis and it is tested by confronting

with observation whether the hypothesis approves or not (Snieder & Larner, 2009).

Based on the concept of this dissertation, it can bee seen that inductive approach is

appropriate for this research design.

3.2.2 Quantitative method

The quantitative method is one of the most common methods to use for collecting

data. The reason of using quantitative method is easy to collect from large sample

and it is also good to analyse the data (Cooper, 1998). A further reason of using

quantitative method is economical. McNeil (1985) stated that the quantitative

method is helpful to collect the amount of data in the limited time and the resource

by spending little expenses. In addition, the quantitative method can be analysed with

statistical software which is called SPSS.

23

3.2.3 Method of Investigation

In order to collect the quantifiable data, survey will be used in this research project.

Hoinville and Jowell (1978) stated questionnaire is flexible for collecting the data

which can be distributed to respondents any time and the respondents can fill out the

questionnaire in free time. Furthermore, questionnaire can solve the problem in

accordance the literature review of this dissertation and the data is easy to be

analysed. SPSS will be used to analyse the data from questionnaire in order to find

out the outcome trustworthiness Indonesian consumer in C2C platforms.

3.3 Questionnaire

3.3.1 Pilot Study

In order to obtain accurate and feasible data, it is necessary to distribute

questionnaire in a small scale preliminary study conducted (Hart, 2005). The pilot

study was sent to a small group of Indonesian student at University of Sheffield from

different background. When the feedback of 15 respondents returned, it found that

some questionnaire were not feasible. There were five respondents who did not

answer question 14 and they only gave two or three answers that they thought the

most important factor of C2C platforms and also question 8 that they did not give the

answer. Therefore, the researcher redesigned the questionnaire with adding word

‘required’. The outcomes of the pilot study are not included in the final outcomes of

this dissertation.

3.3.2 Sampling

Generally, the researchers specify particular group to collect the data because of the

population of group is enormous (Anon, 2005). Similarly, the researchers distribute

the questionnaires to the target population that they are interested in (McLeod, 2014).

Hart (2005) mentioned as “ sampling is about carefully selecting a sub-set of a

particular population that can be shown to share the properties or variables of the

population”. As a result of this, the questionnaire should be planned carefully and

sent to the right group.

According to Liu (2004) that young people and those who are well - educated tend to

be interested in online transaction. Hence, the questionnaire of this research was

24

mostly distributed to the young people so they would give right answer and have

more experience regarding online transaction. However, some questionnaires also

sent to people who are different ages and live in city and countryside. Therefore, the

outcomes from the questionnaire would be numerous with various experiences.

3.4 Questionnaire Design and Analysis

The questionnaire of the research should be designed based on several principles

which was adopted by Harvey’s (2005) book. The first principle is questionnaire

should not be too general. The second principle is that a question should address

clearly so that the respondent would not feel confusing to figure out. All the

questions in this questionnaire use closed ended questions which is easier to process

the responds, while open questions are hard to analyse the responds (Fraenkel and

Wallen, 1990).

The questionnaire of this dissertation is categorised into several parts. The first part

contains demographic profile of participant which is relating to basic information

such as gender, age, education level, and also the experiences of using Internet and

C2C platforms in Indonesia. The second part is about customer’s experience towards

Kaskus platform. The third part is that the customer’s experience using Tokopedia

platform. And the final part is the customer’s experience whom have ever purchased

both platforms.

Questions 1-4 are designed to collect participant’s information regarding gender, age,

education level, and occupation. It points out that participant’s behaviour can be

influenced by the characteristics of participants.

Questions 5-16 asked the respondent about experience of using Internet and online

transaction through C2C platforms. It is also including the reason of the respondents

who have never used C2C platforms. Therefore, this part can be used to analyse

between the respondent who have ever purchased C2C transaction and the

respondent have not.

25

Questions 17- 22 asked the respondents about the experience of using Kaskus

platform in accordance elements trust such as information, products, transaction,

communication, third party and reputation. This part points out that customer’s past

experience in using Kaskus which can be shown the result of strongest element and

weaknesses.

Questions 23- 28 asked the respondents regarding the experience of using Tokopedia

platform which is based on the element trust such as information, products,

transaction, communication, third party and reputation. This questions point out that

customer’s behaviour of using Tokopedia which can be shown the result of strongest

element and weaknesses.

Questions 29 is designed to collect respondents’ information regarding the

experience of using both platform and it can be used to analyse the comparison

between Tokopedia and Kaskus.

3.5 Data collection

The questionnaire survey was conducted from 25th of July to 8th of August 2016 and

it took two weeks to collect the data. The total of questionnaires were 113 but only

110 were usable. This survey was carried out amongst people to participate in the

survey who lived in Java island, Sumatra island, and Kalimantan Island. The survey

was sent to Facebook, email and Kaskus forum where the respondents could

participate as long as they had online transaction experience in C2C platforms.

However, the respondents who have never purchased online shopping in C2C

platforms could participate in order to find out their reasons.

3.6 Data Analysis

In order to structure the data of the dissertation, the initial quantitative results will be

recorded into the SPSS software. There are three specific data analysis in this

dissertation which are used by descriptive statistics, reliability analysis, and factor

analysis. Descriptive statistics will be used to analysis in questionnaire part 2, 3 and

question number 14 to find mean scores. Descriptive statistic also describes and

summarise the result of quantitative data with presentation all the value of variable.

26

Reliability analysis using cronbach alpha is common measure of consistency to

determine the data scale is reliable to use and analyse (Alan, 2008).

Factor analysis is to analyse questionnaire part 2 which is composed likert scales

questionnaire regarding element trust between Tokopedia and Kaskus Platforms.

Green and Salkind (2009) stated that “factor analysis is a technique used to identify

factors that statistically explain the variation and covariation among measure”.

Hence, in this part will be pointed out the result of factor trustworthiness in C2C

platforms.

3.7 Summary

This chapter described the research methodology of the dissertation. The

investigation method used an inductive and a quantitative method by carrying out

questionnaire survey. The survey was carried out in several Indonesian’ islands such

as Java, Sumatra, and Kalimantan. In addition, the data analysis tools were decided

by using SPSS and it will be discussed in the next chapter.

27

Chapter 4. Findings

4.1 Introduction

This chapter points out the questionnaire results and presents the descriptive analyse

by using SPSS. There were 110 questionnaires that were completed.

4.2 Sample Profile

This section presents a demographic profile of the respondents. The total number of

the participants in the questionnaire is 110. Their demographic information is

presented below with diagram.

• Gender

This section is to find the gender composition of the respondents in this research. It

can be seen in table 4.1 that the percentage of female was 51.8% and the percentage

of male was 48.2%. It also shows that the highest proportions of respondents are

between 25-34 years old and The total number of the most respondents are young

people between 16-34 years old is 96.3%.

Table 4.1 Gender Age composition

Age-range

Total 16-24 25-34 35-44

Gender Female Count 20 34 3 57

% within Gender 35.1% 59.6% 5.3% 100.0%

% within Age-range 47.6% 53.1% 75.0% 51.8%

% of Total 18.2% 30.9% 2.7% 51.8%

Male Count 22 30 1 53

% within Gender 41.5% 56.6% 1.9% 100.0%

% within Age-range 52.4% 46.9% 25.0% 48.2%

% of Total 20.0% 27.3% 0.9% 48.2%

Total Count 42 64 4 110

% within Gender 38.2% 58.2% 3.6% 100.0%

% within Age-range 100.0% 100.0% 100.0% 100.0%

% of Total 38.2% 58.2% 3.6% 100.0%

28

• Education Level

Figure 4.3 shows that all the respondents are well educated and most of them are in

undergraduate university with the total percentage is 82.7% and then followed by

15.5% of respondents who have master degree.

Figure 4.1 Education Level

• Internet Experience Questions 5 and 6 are designed to examine how long are the respondents of using the

Internet. Figure 4.2 shows the most respondents have been using the Internet for

more than 3 years with 96.4%. It indicates that the respondents are familiar for using

Internet. Figure 4.3 shows how many hours are spent on the Internet per week for the

respondents in Indonesia. The highest proportion of respondents are 43.6% which

access Internet more than 20 hours per week, while the lowest is 9.1% by the

respondents who access Internet less 5 hours per week.

1.8%82.7% 15.5

%

29

Figure 4.2 Internet Experience

Figure 4.3 Hours spend on the Internet per week

9.1%

1.8% 1.8%

22.7%

96.4%

10% 14.5%

43.6%

30

• Participation in Online C2C transaction

Figure 4.4 shows nearly half percentage that 46.4% of the respondents have never

conducted online C2C transaction. Conversely, 53.6% of the respondents have ever

purchased Online C2C transaction. After surveying the respondents about

participation in Online C2C transaction, the next section is to figure out what the

reasons for those who have ever purchased and not.

Figure 4.4 Participation C2C transaction

4.3 Factor do not purchase C2C transaction

This section is to find out the reasons of the respondents do not want to purchase

online C2C transaction. The respondent could pick more than one answer in this

question. The result of its response can be seen in figure 4.5 that the total of

respondents who do not make online C2C transaction is 51 respondents. The first

reasons show 43.1% the difficulty to judge the products on the Internet. And then the

second reasons are the respondents prefer to purchase products in store. The lowest

46.4%

53.6%

31

percentage shown by only one respondent who prefers to purchase in B2B

transaction. As a result of this survey, Indonesian customers are considered about the

quality of products.

Figure 4.5 The reasons never conduct in C2C transaction

4.4 Transaction Experience

According to survey’s result, there were 51 respondents who have never conducted

in C2C transaction, while 59 respondents claimed that they have ever conducted in

C2C transaction. In previous section, it can be seen the factor of respondents in

Indonesia do not purchase in C2C transaction, and this section describes transaction

experience and the influence of Online C2C transaction. Figure 4.7 illustrates that the

most respondents have ever purchased in C2C platforms is Tokopedia which gets

59.3% of the consumers while Kaskus only gets 10.2% of the consumers and 30.5%

of the consumers have used both platforms. In figure 4.6 shows that the most

experience respondents conducted in C2C transaction is as buyers. Its percentage

57.6%, whilst as seller and buyers are 35.6%. There were only 4 respondents who

conducted online C2C transaction as sellers.

11.8%11.8% 15.7% 37.3% 2%

43.1%

5.9%

29.4%

32

Figure 4.6 Transaction experience

Table 4.2 shows the percentage of the respondents who have used Kaskus and

Tokopedia based on age-range. It has variety of percentage how long the respondents

have been using Tokopedia and Kaskus. The highest percentage accounted for 33%

of the respondents have experience less 6 months purchasing in Kaskus. However,

there are also respondents have more than 3 years experience using both Tokopedia

and Kaskus with 38.9%. Tokopedia has more user than Kaskus, despite the most

consumer’s experience is less 6 months. Figure 4.7 shows a significant result by

66.1% respondents spent less IDR 500,000 (£25) per purchase through C2C

platforms.

6.8%

57.6%35.6%

33

Table 4.2 Platform experience

Experience

Total

0-6

months

7-12

months 1-2 Years

more than 3

years

Q12 Kaskus Count 2 1 2 1 6

% within Q12 33.3% 16.7% 33.3% 16.7% 100.0%

% within

Experience 8.3% 6.3% 18.2% 12.5% 10.2%

% of Total 3.4% 1.7% 3.4% 1.7% 10.2%

Tokopedia Count 17 9 9 0 35

% within Q12 48.6% 25.7% 25.7% 0.0% 100.0%

% within

Experience 70.8% 56.3% 81.8% 0.0% 59.3%

% of Total 28.8% 15.3% 15.3% 0.0% 59.3%

Both Count 5 6 0 7 18

% within Q12 27.8% 33.3% 0.0% 38.9% 100.0%

% within

Experience 20.8% 37.5% 0.0% 87.5% 30.5%

% of Total 8.5% 10.2% 0.0% 11.9% 30.5%

Total Count 24 16 11 8 59

% within Q12 40.7% 27.1% 18.6% 13.6% 100.0%

% within

Experience 100.0% 100.0% 100.0% 100.0% 100.0%

% of Total 40.7% 27.1% 18.6% 13.6% 100.0%

34

Figure 4.7 Average expenses per purchase

4.5 Factor Influencing Online C2C transaction

After analysing experience online C2C transaction, the next figure is to analyse the

factor that users purchased in C2C platforms. In order to determine the factor which

got the most response from the user, the data was analysed by finding the mean of

each variable in question number 14. From table 4.3, it shows that variable Q143

(Save time) gets the highest mean at 4.54%, and then followed by variable Q141

(Reasonable price) which derives score at 4.32%. Furthermore, the lowest mean is

derived by variable Q144 (Sales promotion) with under 4 points.

66.1%

18.6%

15.3%

35

Table 4.3 The influence of factor to purchase in C2C platforms

Q141 Q142 Q143 Q144 Q145 Q146 Q147 Q148 Q149

N Valid 59 59 59 59 59 59 59 59 59

Missing 0 0 0 0 0 0 0 0 0

Mean 4.32 4.19 4.54 3.80 4.29 4.22 4.19 3.85 4.00

Std. Deviation .797 .730 .502 .943 .789 .811 .840 .847 .851

The result of table 4.3 shows the percentage of the top three reasons that users have

motivation to purchase online through C2C platforms. From table 4.3, it can be seen

that more than 55% of the respondents chose “ trust the security which is more safe

than previous year” as the first reason and then the second reason is “I can choose the

payment system that I think is safe ” about 49.%. And the last reason is “ the

communication feature that provided by the platforms” gets at 35.6%. Moreover, the

figure shows that all the other factors are less significant for the respondents with the

percentage below 1.7%.

36

Figure 4.8 Motivation for purchasing next time

4.6 Consumer’s attitudes towards trust model in C2C platforms

This section will examine the factor trustworthiness towards C2C platforms based on

trust elements in which are information, products, reputation, communication,

transaction and third party. From the survey, there were 56 samples from respondents

who had used Tokopedia and 24 samples are from Kaskus users. As Tokopedia has

the value KMO (Kaiser Meyer Olkin Measure of Sampling Adequacy) is more than

0.5, the main data analysis will focus on Tokopedia users.

4.6.1 Factor Analysis

• Factor analysis for Information

By using factor analysis, the initial factor analyses extracted nine factors with

eigenvalue greater than one. There was no iteration because the absolute load is

greater than .50 in each items. Based on the test results of the total variance

explained that two factors were used to explain 73.017% of the overall construct of

55.9%13.6%

49.2%35.6%

18.6%

1.7%

37

transformational. This explains that the nine items were used to measure the

variables by grouped into two factors which the first factor accounted for 61.725%

variance and the second factor explained 11.292% of variance. The results of rotated

component matrix classified the first factor contains 8 items related to the interface

and search engine and the second factor comprised 1 item related to website security.

It can be seen in table 4.4 that its factors and its cronbach’s alpha values are very

high which means good for further analysis.

Table 4.4 Component matrix of Information

Total Variance Explained

Dimension

Initial Eigenvalues Cronbach’s

Alpha

Items

Component

% of Variance

Cumulative

% 1 2

Interface

and search

engine

61.725 61.725

.913 Q23a

Q23b

Q23c

Q23d

Q23e

Q23f

Q23g

Q23i

.749

.767

.831

.796

.870

.817

.779

.809

Website

security 11.292 73.017

.922

Q23h .645

Extraction Method: Principal Component

Analysis.

• Factor analysis for productsFactoranalysisforproductsalsohasabsoluteloadvaluegreaterthan0.5onany

itemsaswellasprevious factor. Unlike factoranalysis for information, factor

analysis for products has only 1 factor which comprised 7 items about

Tokopedia’sproductanditsdiscount.

38

Table 4.5 Component matrix of products

Total Variance Explained

Dimension

Initial Eigenvalues Cronbach’s

Alpha

Items

Component

% of Variance

Cumulative

% 1

Products

and

discount

50.596 50.596

.807 Q24a

Q24b

Q24c

Q24d

Q24e

Q24f

Q24g

.719

.642

.823

.752

.792

.573

.643

Extraction Method: Principal Component

Analysis.

• Factoranalysisforcommunication

Inthisanalysis,oneitemdidnotloadstronglywhichwaslessthan0.5soitwas

deletedafter2 iterations.With the remaining6 itemswere factor analysed,6

factorsexplainthetotalvariancefrom53.930%to25.200%asshownintable

4.6. The first factor encompassed 4 items which is associated with private

messagefeaturetomerchantandthesecondfactorcomprised2itemsrelatedto

special feature for complain. Both of the factors have acceptable cronbach’s

alpha.

Table 4.6 Component matrix of communication

Total Variance Explained

Dimension

Initial Eigenvalues Cronbach’s

Alpha

Items

Component

% of Variance

Cumulative

% 1 2

39

Private

message to

merchant

Special

feature for

complain

53.930

25.200

53.930

79.131

.743

.778

Q25a

Q25b

Q25d

Q25c

Q25e

.750

.881

.845

.707

.646

Extraction Method: Principal Component

Analysis.

• Factor analysis for transaction

There was no iteration process in this analysis because all the 7 items strongly loaded

greater than 0.50. Table 4.7 shows that the factor was named transaction and

payment system that accounted for 60% of the total variance and has very good

reliability. This factor consisted by 7 items which is related to the process of

transaction system, and payment system provided by the platforms.

Table 4.7 Component matrix of transaction

Total Variance

Explained

Dimension

Initial Eigenvalues Cronbach’s

Alpha

Items

Component

% of Variance

Cumulative

% 1

40

Transaction

and

payment

system

60.230

60.230

.867

Q26a

Q26b

Q26c

Q26d

Q26e

Q26f

Q26g

.706

.870

.791

.901

.565

.815

.735

Extraction Method: Principal Component

Analysis.

• Factor analysis for third party

Table 4.8 shows that only one factor related to third party system which consists 7

items. All of the 7 items absolute load was greater than .50 so there was no iteration

factor analysis for third party. The factor explained the total variance of 62.461% and

has high reliability value.

Table 4.8 Component matrix of third party

Total Variance Explained

Dimension

Initial Eigenvalues Cronbach’s

Alpha

Items

Component

% of Variance

Cumulative

% 1

Third party

system

62.461

62.461

.880

Q27a

Q27b

Q27c

Q27d

Q27e

Q27f

Q27g

.775

.849

.654

.733

.841

.860

.799

Extraction Method: Principal Component

Analysis.

41

• Factor analysis for reputation

Table 4.9 shows that there are two factors explain the total variance from 63.579% to

14.596%. Absolute load in each items was greater than 0.5 so that there was no

iteration in this factor analysis. The first factor comprised 6 items which related to

reputation merchant and the second factor consisted one item related to reputation

system in the platform. Either the first factor or the second factor has high value

reliability more than 0.8.

Table 4.9 Component matrix of reputation

Total Variance Explained

Dimension

Initial Eigenvalues Cronbach’s

Alpha

Items

Component

% of Variance

Cumulative

% 1 2

Reputation

merchant

Reputation

system

63.579

14.596

63.579

78.175

.869

.906

Q28a

Q28b

Q28c

Q28d

Q28e

Q28f

Q28g

.892

.876

.745

.886

.850

.698

.716

Extraction Method: Principal Component

Analysis.

4.6.2 Mean score for Kaskus and Tokopedia

In this part will analyse Kaskus platform and Tokopedia Platform by using mean

score. It will generate analysis the difference score between both platforms and

determine which variable has the highest score and the lowest score.

42

• Mean score Information

Table 4.10 illustrates that variable Q17i (kaskus forum is really helpful) get 4.58 as

the highest scores. Meanwhile, five factors that get low scores below 4 indicates

consideration of the respondents of using Kaskus. They are interface kaskus is easy

to use (Q17b), interface kaskus never have error warning (Q17d), the search engine

is easy to find products (Q17e), the search engine is useful (Q17f) and website

security is guarantee safe (Q17j).

On the other side, Tokopedia’s website is professional which has shown 4.20 scores

by variable Q17a in table 4.11. However, the interface Tokopedia never have error

warning (Q23d) has the lowest points. In other words, the respondents have

experience that interface Tokopedia have error warning occasionally.

Table 4.10 Mean score of information Kaskus

Item Statistics

Mean

Q17a 4.17

Q17b 3.75

Q17c 4.00

Q17d 3.58

Q17e 3.96

Q17f 3.71

Q17g 4.17

Q17h 4.04

Q17i 4.58

Q17j 3.92

43

Table 4.11 Mean score of Information Tokopedia

Item Statistics

Mean

Q23a 4.20

Q23b 4.14

Q23c 3.84

Q23d 3.71

Q23e 4.02

Q23f 4.04

Q23g 4.04

Q23h 3.89

Q23i 3.96

• Mean score products

Table 4.12 and 4.13 illustrates the mean score of products in Kaskus and Tokopedia.

The top scores in table 4.12 is Q18a ( Kaskus sells many unique products) and Q18f

( I can find products what I need in Kaskus). On the contrary, Tokopedia has 3

factors top scores which are Q24e (Tokopedia shows the best selling products), Q24f

( I can find product what I need in tokopedia), Q24g ( I prefer to purchase products

which has famous brand). In addition, Kaskus has 5 low means score factor below 4,

while Tokopedia only has 3 low mean score factor. It can be stated that Tokopedia’s

products is more better than Kaskus.

Table 4.12 Mean score of products Kaskus

Item Statistics

Mean

Q18a 4.25

Q18b 3.83

Q18c 3.38

Q18d 3.46

Q18e 3.71

Q18f 4.04

Q18g 3.92

44

Table 4.13 Mean score of products Tokopedia

Item Statistics

Mean

Q24a 3.98

Q24b 3.55

Q24c 3.75

Q24d 3.77

Q24e 4.04

Q24f 4.00

Q24g 4.09

• Mean score transaction

There is significant result between the table 4.14 and table 4.15. Table 4.14 shows

that Kaskus only has 2 high score factors that shown by Q19a (the transaction

procedure of Kaskus is easy to use) and Q19f ( the payment process is fast loading).

On the other hand, Tokopedia has 5 top scores factors which are Q26a (the

transaction tokopedia is easy to use), Q26b (The transaction system is easy to use),

Q26c (Tokopedia provides multiple method payments), Q26d (I trust the payment

system that provided by Tokopedia), Q26f ( the payment process is fast loading).

Mean score of transaction Tokopedia has more positive feedback rather than Kaskus.

Table 4.14 Mean score of transaction Kaskus

Item Statistics

Mean

Q19a 4.25

Q19b 3.83

Q19c 3.38

Q19d 3.46

Q19e 3.71

Q19f 4.04

Q19g 3.92

45

Table 4.15 Mean score of transaction Tokopedia

Item Statistics

Mean

Q26a 4.14

Q26b 4.21

Q26c 4.27

Q26d 4.30

Q26e 3.75

Q26f 4.02

Q26g 3.95

• Mean score communication

Table 4.16 shows Q20a (I can contact the merchant directly via online chatting) gets

the highest scores at 4.21. Variable Q20b and Q20c related to feature leave private

message have same scores at 4.13 points. On the other side, Tokopedia has low

overall mean score of communication. It could be found in table 1.7 that only one

factor has the above score 4 related to contact directly the merchant via online

chatting (Q25a). The lowest points is 3.64 related to special feature complain (Q25e).

Table 4.16 Mean score of communication Kaskus

Item Statistics

Mean

Q20a 4.21

Q20b 4.13

Q20c 4.13

Q20d 3.79

46

Q20e 3.96

Table 4.17 Mean score of communication Tokopedia

Item Statistics

Mean

Q25a 4.09

Q25b 3.93

Q25c 3.67

Q25d 3.76

Q25e 3.64

• Mean score third party

Table 4.18 shows that Kaskus does not have special factors in which get more than 4

points. However, Q22a (Kaskus provides third party such as Kaspay which is useful)

gets 3.92 points in which is the highest scores in third party factors. On the other

hand, Tokopedia still has more than 4 scores in its variables with the same points at

4.07. The top scores is Q22a (Tokopedia provides third party such as Rekening

bersama (REKBER) which is useful) and Q22b (Rekening bersama is very easy to

use). Additionally, sometimes the respondents are sceptical use REKBER which is

shown by variable Q22g as the lowest points.

Table 4.18 Mean score of third party Kaskus

Item Statistics

Mean

Q22a 3.92

Q22b 3.75

Q22c 3.58

Q22d 3.46

47

Q22e 3.67

Table 4.19 Mean score of third party Tokopedia

Item Statistics

Mean

Q22a 4.07

Q22b 4.07

Q22c 3.84

Q22d 3.68

Q22e 3.79

Q22f 3.70

Q22g 3.57

• Mean score reputation

Unlike mean score of third party, Kaskus gets better scores in reputation. The top

mean score of reputation Kaskus is Q22a (reputation system in Kaskus is right.),

Q22b (I am satisfied with the reputation system provided by Kaskus.), Q22c (The

reputation system in Kaskus shows positive attitude), Q22d (Kaskus provides special

logo for merchants who have a good reputation), and Q22e (Discussion forum page

in Kaskus could help user to review the reputation merchants and products).

Meanwhile the weakest score is Q22f (I have never heard any bad news about

KASKUS, including merchants, the payment system, and the server) at 3.42 points.

Table 4.21 shows that Tokopedia get less top scores variable more than 4. The three

top scores which has points more than 4 are Q28a (reputation merchant in Tokopedia

is right.), Q28b (I am satisfied with the reputation system provided by Tokopedia),

Q28c (The reputation system in Tokopedia shows positive attitude). Q28g gets 3.57

which is the lowest scores related to have doubt payment system in Tokopedia.

48

Table 4.20 Mean score of reputation Kaskus

Item Statistics

Mean

Q22a 4.21

Q22b 4.17

Q22c 4.13

Q22d 4.29

Q22e 4.29

Q22f 3.42

Q22g 3.54

Table 4.21 Mean score of reputation Tokopedia

Item Statistics

Mean

Q28a 4.20

Q28b 4.16

Q28c 4.11

Q28d 4.07

Q28e 3.88

Q28f 3.73

Q28g 3.57

4.6.3 Comparisons between Kaskus and Tokopedia

This part will elaborate the comparison platforms between Kaskus and Tokopedia by

mean scoring. The highest variable can be measured influential factor in the

platforms. In order to achieve this, mean scoring will be divided into three

categories. The first category is design system, the second category is payment

49

system and the last category is products and price. There were 18 respondents who

have ever purchased both the platforms.

1. Design system

Table 4.22 shows the percentage of variables and the mean score between Kaskus

and Tokopedia. It can be seen that the percentage of filter price range in Kaskus is

35.7% which means its feature ‘filter price’ is better than Tokopedia. Tokopedia has

the highest score at feature ‘special logo for merchant’ with 35.7%. By mean value,

Kaskus has better design system than Tokopedia with 27.5 points of Kaskus, while

Tokopedia mean score is lower at 22.4. In overall, the most respondents gave

‘neutral’ response to both the platforms regarding the design system.

Table 4.22 Mean score of design system

Kaskus Tokopedia Neutral

Interface design 32.1 32.1 35.7

Page loading 28.6 10.7 60.7

The error

system

14.3 10.7 75.0

Special logo for

merchant

25 35.7 39.3

Search engine 25 28.6 46.4

Filter price

range

35.7 17.9 46.4

Communication

feature

32.1 21.4 46.4

Total 192.8 157.1 349.9

Mean 27.5 22.4 50.0

50

Figure 4.9 Mean socre of design system

2. Payment system

Based on table 4.23, it can be seen that 32.1% of respondents claimed Tokopedia is

better than Kaskus and 22.3% of respondents gave feedback Kaskus is better than

Tokopedia. In this sense, it can be analysed that Tokopedia payment is more secure

than Kaskus which influenced reputation system as well.

Table 4.23 Mean score of payment system

Kaskus Tokopedia Neutral

Payment safety

system

25 46.4 28.6

Convenience of

payment

system

14.3 32.1 53.6

Reputation

system

21.4 28.6 50.0

Policy of

whether need to

pay the

platform

28.6 21.4 50.0

Total 89.3 128.5 182.2

0

10

20

30

40

Kaskus Tokopedia

51

Mean 22.3 32.1 45.6

Figure 4.10 Mean score of payment system

3. Products and price

In the aspect of product variety, table 4.24 shows that 32.1% of respondents found

Tokopedia platform has diversity product compared with Kaskus. Moreover, in the

aspect of the promotion strategy in Tokopedia is better with 46.4%. Tokopedia also

gets mean score greater than Kaskus with 32.1 points. Thus, either Kaskus or

Tokopedia has different value in each feature. By total mean scoring, Tokopedia is

supperior in payment system, reputation and products, while Kaskus only has a

slightly better in design system. Hence, Tokopedia is more popular in the last few

years in Indonesia.

Table 4.24 Mean score of payment system

Kaskus Tokopedia Neutral

Promotion 25 46.4 28.6

Variety of

product

14.3 32.1 53.6

Total 89.3 128.5 182.2

Mean 22.3 32.1 45.6

0

10

20

30

40

50

PaymentSafetySystem

ConvienceofPaymentSystem

ReputationSystemProvide

Policyofwhetherneedtopaytothe

platformKaskus Tokopedia

52

4.7 Summary

This chapter has presented all the data from the questionnaire. The discussion of the

results will be elaborated in the next chapter with the review of previous literature.

Chapter 5. Discussion 5.1 Introduction

This chapter will examine the further discussion from the findings that disclosed in

the previous chapter and also will link them with literature review.

5.2 Discussion of the result

The outcome from data analysis of questionnaires part one found that the most

respondents come from young people between 16-34 years old and it accounted for

around 96%. The highest percentage of respondent’s education is undergraduate

which shown by 82%. Meanwhile, there were 53.6% of users ever purchased online

C2C transaction and 46.4% never purchase in C2C transaction. According to Liu’s

research (2004) that online transaction comes from young people who are educated.

Her study has similar result of this dissertation in which the results indicated from

the previous survey such as age range and education level.

In fact, there is no big differences of the respondents who have never made online

purchase in C2C platforms and it has only difference 9% of respondents who have

ever made purchase through C2C platforms. In this case, the Internet users in

Indonesia are still reluctant to shop online through C2C platforms, even though they

are educated. The most reasons that respondents do not make C2C transaction is

difficult to assess products by online. It is similar from Chow’s survey (2015), he

stated that Indonesian users are still unwilling to conduct in online shopping and

spend their time to look at the review. Still, buyer is careful to purchase through C2C

platforms so they usually spent less £25 per transaction. In other words, Indonesian

people are less consumptive to shopping online.

53

The most respondents who had experience in C2C transaction is as buyers. There

were 53 users that used Tokopedia, including the users of using both Tokopedia and

Kaskus. There are three factors that influence purchasing in C2C transaction is save

time, reasonable price and the products are complete. Moreover, the factor make

respondents have motivation to purchase in C2C platforms is the security. They

revealed that the security of the C2C platforms (Tokopedia and Kaskus) is more

secure than in the past.

From the questionnaire part two, the outcome is to analysis between Tokopedia and

Kaskus in accordance six element trust by mean scoring. Firstly, the result of

information trust in Kaskus associated with forum community. Kaskus users are

more interested in forum kaskus rather than the website design. Forum community

can be useful to exchange new information and make a new friend (Chen et al,

2009). On the other hand, Tokopedia’s website is as professional look as eBay which

could be attractive for the customers. It has been mentioned by Wang and Emurian

(2005) that website design can affect consumer’s trust. Secondly, the results of

product element trust in Kaskus showed that the highest mean scores is unique

products that not all online shop sells unique products. Furthermore, Tokopedia has

three top mean scores positive feedback with the best selling product design which

appears its homepage website. Tokopedia also has variety of products as well as

Kaskus. Tokopedia users also prefer to purchase products with well-known brand

than unfamiliar brand. It has been mentioned by previous study that most consumers

still rely on products which has famous brand (Davis, 2000). Thirdly, the element

trust of transaction both the platforms have the same result which is the transaction

system both the platforms are easy to use. The multiple payment method that

provided by Kaskus got the lowest scores at 3.38, whilst Tokopedia still got high

scores in multiple payment method at 4.27. The next element trust is communication.

Both Kaskus and Tokopedia have top scores regarding feature online chatting. The

buyers can contact the merchants by online chatting so that the buyers can get the

fast response from the merchants. Xu and Guo (2016) stated that online chatting is

one of the factors could affect trustworthiness between the buyers and sellers in

online transaction. The fifth element trust is third party. Brand Kaspay as third party

payment system become successful to substitute paypal and it has low-risk. As mater

as fact, the owner of paypal must have credit card while it is risky for Indonesian

54

people as method payment online. Similarly, Tokopedia’s users claimed that they

prefer to pay online through its third-party payment, namely ‘Rekber’ than other

method payments. Generally, the online purchase is strongly influenced by third

party as the best method of payments (Wolverton, 2002). The last element trust is

reputation system. The reputation systems of the both platforms have good

reputation. Although Kaskus has the highest scores concerning the reputation system,

but the lowest scores indicates Kaskus users have never heard bad news about

Kaskus. It means that Kaskus users have ever heard bad news. Moreover, Tokopedia

users revealed that they still concern about payment system in Tokopedia which

shown the weakest score in table 4.21.

The part three of questionnaire is to compare the users who have ever purchased both

the platforms. There are three categories in this part which are design system,

payment system and variety of the products. The result of design system is users

prefer to use feature ‘filter price’ in Kaskus which is more detail than Tokopedia. On

the other hand, feature special logo for merchant in Kaskus is not as good as

Tokopedia. Furthermore, users showed the positive attitude about payment system in

Tokopedia but they do not trust payment system provided by Kaskus. In addition, the

variety of products in Kaskus has the lower score than Tokopedia. Tokopedia also

has better percentage 46.4% of promotion strategy. Sales promotion is necessary to

attract the consumers and it becomes one of the way to increase consumers as well

(Kim et al, 2015).

5.3 Summary

The discussion of the data analysis has been disclosed in this chapter with the

literature review. In the following chapter, it will present the conclusion and

recommendation for future research.

55

Chapter 6. Conclusion

6.1 Introduction

This chapter is the final part of this dissertation. As such, it will look back at the

initial aims and objectives set out in the first chapter, and any limitation encountered

during the research would be presented. At last, it gives recommendation regarding

further research in the field.

6.2 Conclusion

This research problem that has been disclosed in the first chapter is what are Kaskus

and Tokopedia customer’s attitude towards trustworthiness transaction in C2C

platforms based on model element trust. In order to achieve this aim, the objective of

the research have been done as follows:

1. To examine Kaskus and Tokopedia’s current business in Indonesia.

In chapter 2, the difference of mechanism between Tokopedia and Kaskus

was introduced such as search engine, fee registration, reputation,

communication to the customers, and method payment.

2. To identify motivation consumer’s behaviour towards C2C transaction.

Chapter 4 explained the motivation consumers to purchase towards C2C

transaction in the future. The first motivation is that the security in C2C

platforms (Kaskus and Tokopedia) is safer than previous year. The second

motivation is the platforms provide multiple payments so the customers can

choose which payment that they think is safe. The third motivation is the

platforms provide communication feature so that consumers are able to keep

in touch with the merchant easily.

3. To identify the most importance factor influence in C2C platforms.

In chapter 4 by using mean score, it has been analysed that the most

importance factor influence in C2C platforms is save time. Consumers make

a purchase through C2C platform could save time. The further factor is

reasonable price. Products in C2C platforms are cheaper than buy in the

offline store because consumers can undertake a price bid auction. In

56

addition, C2C platforms sell more complete products that do not sell in

offline shops.

5. To investigate the factor that influence consumer of these platforms based on

element trust.

Trust model was presented in chapter and likert point scale to compose the

questionnaire and surveyed six elements trust: information, communication,

products, transaction, third party and reputation. By using factor analysis and

descriptive for investigation the respondent’s data, the result is both platforms

have variety score in each trust elements. However, by testing mean score, it

can be found that Tokopedia had more satisfied consumers with its website

feature.

6.3 Recommendation for C2C platforms models in Indonesia

Based on the research findings and the analysis of C2C platforms In Indonesia,

Kaskus and Tokopedia are not perfect platforms in every aspect. Therefor, the author

provides recommendation for C2C trust element in Indonesia that presented in table

6.1.

Table 25 Recommendation for C2C trust element in Indonesia

Trust elements Factors Description

Information Interface and search engine By providing search engine, it

can be easier to find the products

in detail without take a lot of

time.

Website security A C2C website should provided

security system in order to keep

the consumer’s data and prevent

fraudulent.

Products Products and discounts The completeness of products

could affect consumers and the

57

platforms should offer a discount

voucher to attract the consumer

for purchasing.

Communication Private message to merchants A C2C website should provide

feature private message in order

to communicate between the

buyers and sellers.

Feature complain Apart private message, a C2C

website should have feature

complain for the buyers who get

disappointment from the sellers

and the buyers could request

block the merchant to the

platform.

Transaction Transaction and payment

system

A C2C website should have more

than one payments and easy

procedure.

Third party Third party system A C2C website should make the

procedure for registration of third

party system easily and does not

take a lot of time.

Reputation Reputation merchant In order to build trust to

consumers, a C2C platform

should provide special logo on

profile merchants. It can be easy

to distinguish whether the

merchants have a good point or

not.

Reputation system A website should have policy

about the product to improve its

reputation and also resolve

dispute between the buyers and

sellers.

58

6.4 The limitation of the research

There are several limitations of the research which should be taken into account to

the results. The majority of limitation of the research is the time. The author had just

one month to complete the data collection and the writing of the dissertation.

Therefore, there were only 110 samples from the respondents who have ever

purchased in C2C platforms and never purchase in C2C platforms. It should be more

comprehensive samples if there is more time.

6.5 Recommendation for future research

As this research had limitation of time, the author expects for further researcher can

explore more the data with the qualitative study in the form of interview of the

website developer and the respondent’s opinion. Moreover, the demographic profiles

should be included into the analysis in order to reach a deeper understanding of the

differences based on demographic profiles such gender, age and education level.

(Word Count: 11.555)

59

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looking-indonesia-still-not-down-with-online-shopping/

Wolverton, T, eBay brings escrow aboard. CNET News. 2002, May 2.

63

Appendix 1. Research Questionnaire Customer attitude survey in C2C platforms

Dear Sir and Madam:

Thank you for participating in this survey. I am a postgraduate student in the

Department of Information school at the University of Sheffield, United Kingdom.

The purpose of this survey is to research the consumer behaviour in the C2C

(Consumer to Consumer) transaction such as Kaskus and Tokopedia. Please

complete this questionnaire about your experience of shopping in the C2C

platforms.

Iwouldliketothankyouagainforyourtimeandparticipation!.

Regards,

Setiani

TheUniversityofSheffield

Ssetiani1@sheffield.ac.uk

July2016

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* Required

Part 1. Basic Information

1. Q1. Gender *Mark only one oval.

 Male

 Female

2. Q2. Age­range *Mark only one oval.

 16­24

 25­34

 35­44

 45­54

 55+

3. Q3. Study Level *Mark only one oval.

 High School or Lower

 College / University Undergraduate

 Master Degree

 Doctor Degree

4. Q4. Occupation *Mark only one oval.

 Student

 Business

 Unemployed

 Office Worker

 Other: 

5. Q5. How long have you been using the internet? *Mark only one oval.

 Less 1 Year

 1­3 Years

 More than 3 Years

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6. Q6. How many hours do you spend on the Internet per week? *Mark only one oval.

 less than 5 hours

 5­10 hours

 10­15 hours

 15­20 hours

 more than 20 hours

7. Q7. Have you ever conducted an online C2C transaction in Indonesia ( Tokopedia andKaskus)? If no, please answer question 8, if yes please answer question 9. *Mark only one oval.

 Yes, i have  Skip to question 9.

 No, i haven't  Skip to question 8.

The reason that you never use C2C platforms

8. Q8. What are the reasons that you do not make online C2C transaction? (multiple choices)*Check all that apply.

 Never think to try

 I do not trust online C2C transaction

 I do not trust the participant in online transaction

 I prefer to purchase in store

 I prefer to purchase B2C transaction

 It is difficult to judge the quality of the products on Internet

 It is a risk for me to give credit card information

 I need to read some reviews before purchase that i do not like to do it

Stop filling out this form.

Transaction Experience

9. Q9. What is your online C2C transaction experience? *Mark only one oval.

 I am a seller

 I am a buyer

 I am both seller and buyer

10. Q10. How long have you been using Tokopedia/Kaskus? *Mark only one oval.

 <0­6 month

 7­12 month

 1­2 years

 >3 years

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11. Q11. Average visit per month *

Mark only one oval.

 less than 5 times

 5­10 times

 11­20 times

 more than 20 times

12. Q12. How many times have you made a purchase this year? *

Mark only one oval.

 Less than 5 times

 5­8 times

 8­12 times

 More than 12 times

13. Q13. How much average did you spend per purchase? *

Mark only one oval.

 less than Rp 500,000 (£25)

 Rp 500,000 ­ Rp 1,000,000 (£25­ £50)

 Rp 1,000,000 ­ Rp 2,000,000 (£50­£100)

 More than Rp 2,000,000

14. Q14. What is the most importance factor in a C2C platforms? (scale is 5=Very Important,

1= not all important) *

Mark only one oval per row.

5 4 3 2 1

Reasonable price

The variety of products

Save time

Sales promotion

Special products that do not sell

by the local market

Payment system

Reputation system that provide by

the platforms

Functional design

The speed of loading interface

15. Q15. What do you trust to purchase next time on the platforms? (Multiple choices) *

Check all that apply.

 I trust the security now because it is better than previous year

 The interface design and Information is obvious so that i have no doubt

 I can choose the kind of method payment that i think is safe

 The platforms provide communication features to keep interaction between the merchants

and buyers

 I still consider to make a purchase next time

 Others

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16. Q16. Which platforms have you ever used? *Mark only one oval.

 Tokopedia  Skip to question 23.

 Kaskus  Skip to question 17.

 Both

Part 2: Customer attitude based on trust element in C2Cplatforms

Kaskus Customer' Attitude

17. Q17. Information *Mark only one oval per row.

StronglyAgree Agree Neutral Disagree Strongly

Disagree

The interface of KASKUS isprofessionalThe interface of KASKUS iseasy to navigateThe loading speed of KASKUSis really fastThe interface of KASKUS neverhave error warningThe search engine is easy tofind goods that I needThe search engine provided byKASKUS is very usefulKASKUS provides detailinformation of its product byproviding photo and descriptionThe advertisement on KASKUSwebsite is helpful to know newinformationKaskus’ forum is really helpfulWebsite security is guaranteedsafe

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18. Q18. Products *Mark only one oval per row.

StronglyAgree Agree Neutral Disagree Strongly

Disagree

KASKUS sells many uniqueproduct that do not provide byothers online shoppingKASKUS provides more than 8attachments to upload photo ofproductsKASKUS often gives discount ofits products for its forummember such as voucher codeKASKUS packages its productspresentableKASKUS shows the bestsellingproducts in homepageI can find product what I need inKASKUS quicklyI prefer to purchase productwhich has famous brand orgood quality

19. Q19. Transaction *Mark only one oval per row.

StronglyAgree Agree Neutral Disagree Strongly

Disagree

The transaction procedure ofKASKUS is easy to useThe transaction system is easyto use and safeKASKUS provides multiplemethod paymentsI trust the payment systemprovided by KASKUSKASKUS requires someinformation for purchasing and ittakes a lot of timeThe payment process is fastloadingMy personal information will notbe given to others by KASKUS

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20. Q20. Communication *Mark only one oval per row.

StronglyAgree Agree Neutral Disagree Strongly

Disagree

I can contact the merchantdirectly via online chatting whenthe merchant is onlineFeature leave private messageto the merchant is usefulI can leave my messageanytime to merchantKASKUS provides feature ‘befriends’ to subscribe and givethe notification about productand information from themerchantsI have never had problem usingcommunication feature tomerchant in KASKUS

21. Q21. Third Party *Mark only one oval per row.

StronglyAgree Agree Neutral Disagree Strongly

Disagree

KASKUS provides third partysuch as Kaspay which is usefulKaspay in KASKUS is very easyto use.Registration Kaspay is requiredsome information that takes alot of time.I prefer to use Kaspay thanothers payment provided byKaskus.I trust third party system inKASKUSThird­party system or Kaspayincreases confident to buyproducts online shop inKASKUSSometimes I am sceptical touse Kaspay

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22. Q22. Reputation *Mark only one oval per row.

StronglyAgree Agree Neutral Disagree Strongly

Disagree

Basically, reputation system inKASKUS is right.I am satisfied with thereputation system provided byKASKUS.The reputation system inKASKUS shows positiveattitudeKASKUS provides special logofor merchants who have a goodreputationDiscussion forum page inKASKUS could help user toreview the reputation merchantsand productsI have never heard any badnews about KASKUS, includingmerchants, the paymentsystem, and the server.Sometimes I have doubt aboutthe reputation system

Stop filling out this form.

Tokopedia Customer' Attitude

23. Q23. Information *Mark only one oval per row.

StronglyAgree Agree Neutral Disagree Strongly

Disagree

The Interface of Tokopedia isprofessionalThe interface of Tokopedia iseasy to navigateThe loading speed of Tokopediais really fastThe interface of Tokopedianever have error warningThe search engine is easy tofind goods that I needThe search engine provided byTokopedia is very usefulTokopedia provides detailinformation of its product byproviding photo and descriptionThe advertisement onTokopedia website is helpful toknow new informationWebsite security is guaranteedsafe

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24. Q24. Products *Mark only one oval per row.

StronglyAgree Agree Neutral Disagree Strongly

Disagree

Tokopedia sells many uniqueproduct that do not provide byothers online shoppingTokopedia provides more than 8attachments to upload photo ofproductsTokopedia often gives discountof its products for its forummember such as voucher code.Tokopedia packages itsproducts presentableTokopedia shows thebestselling products inhomepage.I can find product what I need inTokopedia quicklyI prefer to purchase productwhich has famous brand orgood quality

25. Q25. Communication *Mark only one oval per row.

StronglyAgree Agree Neutral Disagree Strongly

Disagree

I can contact the merchantdirectly via online chatting whenthe merchant is onlineFeature leave private messageto the merchant is usefulThe merchant gives fastrespond.I have never had problem usingcommunication feature tomerchant in TokopediaI can complain to the specialfeatures ‘complain’ thatprovided by Tokopedia

26. Q26. Transaction *Mark only one oval per row.

StronglyAgree Agree Neutral Disagree Strongly

Disagree

The transaction procedure ofTokopedia is easy to useThe transaction system is easyto use and safeTokopedia provides multiplemethod paymentsI trust the payment systemprovided by TokopediaTokopedia requires someinformation for purchasing and ittakes a lot of timeThe payment process is fastloadingMy personal information will notbe given to others by Tokopedia

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27. Q27. Third party *Mark only one oval per row.

StronglyAgree Agree Neutral Disagree Strongly

Disagree

Tokopedia provides third partysuch as Rekening bersama(REKBER) which is usefulRekening bersama is very easyto use.I do not have to register inRekening bersama because Ican pay direct transfer from myaccount bankI prefer to use Rekeningbersama than others paymentprovided by Tokopedia.I trust third party system inTokopediaThird­party system or Tokopediaincreases confident to buyproducts online shop inTokopediaSometimes I am sceptical touse Rekening bersama

28. Q28. Reputation *Mark only one oval per row.

5 4 3 2 1

Basically, reputation merchant inTokopedia is right.I am satisfied with the reputationsystem provided by Tokopedia.The reputation system inTokopedia shows positive attitudeTokopedia provides special logofor merchants who have a goodreputationI have never heard any bad newsabout Tokopedia, includingmerchants, the payment system,and the server.Sometimes I have doubt about thereputation system

Stop filling out this form.

Part 3, If you use both Kaskus and Tokopedia, How do you

think about the following questions?

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Powered by

29. Q29. *Mark only one oval per row.

Kaskus is better thanTokopedia Neutral Tokopedia is better than

Kaskus

Interface DesignPage loading speedThe safety of paymentsystemThe convenience ofpayment systemThe error systemSearch engine provide bythe platformSpecial logo for themerchantsThe policy of whether needto pay to the platformPromotion such as vouchercode provide by the websiteThe variety of productsFilter price range productprovide by the platformCommunication features tothe merchantsReputation systems provideby the platforms

74

Appendix 1.2 Approval Letter

Downloaded: 22/07/2016

Approved: 19/07/2016

Setiani Setiani

Registration number: 150232247

Information School

Programme: Information systems

Dear Setiani

PROJECT TITLE: An Analysis of trustworthiness in C2C E-commerce Indonesia : Kaskus and Tokopedia

APPLICATION: Reference Number 010176

On behalf of the University ethics reviewers who reviewed your project, I am pleased to inform you that on

19/07/2016 the above-named project was approved on ethics grounds, on the basis that you will adhere to

the following documentation that you submitted for ethics review:

University research ethics application form 010176 (dated 18/07/2016).

Participant information sheet 1022097 version 2 (18/07/2016).

Participant information sheet 1021943 version 1 (12/07/2016).

Participant information sheet 1020221 version 1 (24/06/2016).

Participant consent form 1020215 version 1 (24/06/2016).

If during the course of the project you need to deviate significantly from the above-approved documentation

please inform me since written approval will be required.

Yours sincerely

Matt Jones

Ethics Administrator

Information School

75

Appendix 1.3 Ethic application

Application 010176

Section A: Applicant detailsSection A: Applicant details

Created:

Fri 24 June 2016 at 19:10

First name:

Setiani

Last name:

Setiani

Email:

ssetiani1@sheffield.ac.uk

Programme name:

Information systems

Module name:

Dissertation

Last updated:

19/07/2016

Department:

Information School

Date application started:

Fri 24 June 2016 at 19:10

Applying as:

Undergraduate / Postgraduate taught

Research project title:

An Analysis of trustworthiness in C2C E-commerce Indonesia : Kaskus and Tokopedia

Section B: Basic informationSection B: Basic information

1. Supervisor(s)

Name Email

Angela Lin a.lin@sheffield.ac.uk

76

77

78

79

80

Appendix 1.4 Access to Dissertation Form Access to Dissertation

A Dissertation submitted to the University may be held by the Department (orSchool) within which the Dissertation was undertaken and made available forborrowingorconsultationinaccordancewithUniversityRegulations.Requests for the loanofdissertationsmaybereceived fromlibraries in theUKandoverseas. The Department may also receive requests from other organisations, aswellas individuals.Theconservationof theoriginaldissertation isbetterassured ifthe Department and/or Library can fulfill such requests by sending a copy. TheDepartmentmayalsomakeyourdissertationavailableviaitswebpages.Incertaincaseswhereconfidentialityofinformationisconcerned,ifeithertheauthoror the supervisor so requests, the Department will withhold the dissertation fromloanorconsultationfortheperiodspecifiedbelow. Wherenosuchrestriction is inforce,theDepartmentmayalsodeposittheDissertationintheUniversityofSheffieldLibrary.TobecompletedbytheAuthor–Select(a)or(b)byplacingatickintheappropriatebox

IfyouarewillingtogivepermissionfortheInformationSchooltomakeyourdissertationavailableintheseways,pleasecompletethefollowing:

✔ (a) SubjecttotheGeneralRegulationonIntellectualProperty,I,theauthor,agreetothisdissertationbeingmadeimmediatelyavailablethroughtheDepartmentand/orUniversityLibraryforconsultation,andfortheDepartmentand/orLibrarytoreproducethisdissertationinwholeorpartinordertosupplysinglecopiesforthepurposeofresearchorprivatestudy

(b) SubjecttotheGeneralRegulationonIntellectualProperty,I,theauthor,requestthatthisdissertationbewithheldfromloan,consultationorreproductionforaperiodof[]yearsfromthedateofitssubmission.Subsequenttothisperiod,IagreetothisdissertationbeingmadeavailablethroughtheDepartmentand/orUniversityLibraryforconsultation,andfortheDepartmentand/orLibrarytoreproducethisdissertationinwholeorpartinordertosupplysinglecopiesforthepurposeofresearchorprivatestudy

Name SetianiDepartmentInformationSchool

Signed SetianiSetianiDate31August2016

TobecompletedbytheSupervisor–Select(a)or(b)byplacingatickintheappropriatebox

81

(a) I,thesupervisor,agreetothisdissertationbeingmadeimmediatelyavailablethroughthe

Departmentand/orUniversityLibraryforloanorconsultation,subjecttoanyspecialrestrictions(*)agreedwithexternalorganisationsaspartofacollaborativeproject.

*Specialrestrictions

(b) I,thesupervisor,requestthatthisdissertationbewithheldfromloan,consultationorreproductionforaperiodof[]yearsfromthedateofitssubmission.Subsequenttothisperiod,I,agreetothisdissertationbeingmadeavailablethroughtheDepartmentand/orUniversityLibraryforloanorconsultation,subjecttoanyspecialrestrictions(*)agreedwithexternalorganisationsaspartofacollaborativeproject

Name Department

Signed Date THISSHEETMUSTBESUBMITTEDWITHDISSERTATIONSBYDEPARTMENTALREQUIREMENTS.