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Abstract
Introduction
Indonesians, especially when shopping online, increasingly use the cash on delivery (COD) system to pay for goods.
Objectives
This study aims to determine the effect of the cash on delivery (COD) payment method on the purchasing decisions of the Wamena community on the Shopee e-commerce platform.
Method
This research method uses an approach. The type of research used, namely the mixed method, is a research method that combines quantitative and qualitative data to produce more comprehensive data. The sample used amounted to 100 respondents who actively use Shopee in Wamena. Quantitative research measures the Cash on Delivery (COD) variable through Convenience, Privacy, and Trust. The purchasing decision variable is measured through indicators of Problem recognition, Information search, and Evaluation of alternatives. The data analysis techniques used in this study are validity tests, reliability tests, correlation tests, regression tests, t-tests, and determination coefficient tests.
Results
The results showed that the COD payment method positively and significantly affected the purchasing decisions of the Wamena city community at Shopee E-Commerce. The contribution given by the cod variable is 49% to purchasing decisions. Researchers conducted interviews to strengthen the results. The interview results show that the people of Wamena city choose cod payment because the average estimated delivery from Java to Papua is at least 7 days, so buyers find it easier to control expenses because they only pay when the goods are in hand. This payment system is also felt to be able to avoid bills that come after transactions and can control excessive shopping desires.
Implications
With the increasing trend of COD usage, this study's results underscore the importance of buyers' and sellers' protection for this type of transaction.
Originality/Novelty
This study contributes to studies on online purchasing, especially in areas outside Java Island, where facilities and infrastructure are limited to support fast delivery.
Keywords
Article Details
Copyright (c) 2024 Fitri Fitri, Syarifah Syarifah, Rianik Thomas
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References
AbuAli, A. N., Alrefaei, A. A., Aljohani, S. A., Aloufi, I. N., Ghabban, F., Ameerbakhsh, O., Alfadli, I., Al-Shehri, A. H., Fallatah, N. A., & Younis, H. A. (2024). The impact of e-commerce on traditional businesses in Saudi Arabia. Journal of Service Science and Management, 17(04), 354–366. https://doi.org/10.4236/jssm.2024.174018
Ahdiat, A. (2024, January 10). 5 e-commerce dengan pengunjung terbanyak di Indonesia (Januari-Desember 2023) [5 e-commerce with the most visitors in Indonesia (January-December 2023)] [HTML]. Databoks. https://databoks.katadata.co.id/teknologi-telekomunikasi/statistik/3c9132bd3836eff/5-e-commerce-dengan-pengunjung-terbanyak-sepanjang-2023
Al-Adwan, A. S., Al-Debei, M. M., & Dwivedi, Y. K. (2022). E-commerce in high uncertainty avoidance cultures: The driving forces of repurchase and word-of-mouth intentions. Technology in Society, 71, 102083. https://doi.org/10.1016/j.techsoc.2022.102083
Amofah, D. O., & Chai, J. (2022). Sustaining consumer e-commerce adoption in Sub-Saharan Africa: Do trust and payment method matter? Sustainability, 14(14), 8466. https://doi.org/10.3390/su14148466
Anas, H. (2023). Determinant factor on the decision to use the COD payment method: Case of Millennial Generation—Indonesia. East Asian Journal of Multidisciplinary Research, 2(1), 281–290. https://doi.org/10.55927/eajmr.v2i1.2597
Anjum, S., & Chai, J. (2020). Drivers of cash-on-delivery method of payment in e-commerce shopping: Evidence from pakistan. Sage Open, 10(3). https://doi.org/10.1177/2158244020917392
Ariffin, S. K., Mohan, T., & Goh, Y.-N. (2018). Influence of consumers’ perceived risk on consumers’ online purchase intention. Journal of Research in Interactive Marketing, 12(3), 309–327. https://doi.org/10.1108/JRIM-11-2017-0100
Armiani, A. (2022). E-commerce berbasis cash on delivery guna meningkatkan omset penjualan produk UMKM pada masa pandemi COVID-19 [E-commerce based on cash on delivery to increase sales turnover of MSME products during the COVID-19 pandemic]. Owner, 6(1), 668–676. https://doi.org/10.33395/owner.v6i1.639
Azali, K. (2016). Cashless in Indonesia: Gelling mobile e-frictions? Journal of Southeast Asian Economies, 33(3), 364–386. https://www.jstor.org/stable/44132411
Benamati, J. “Skip,” & Serva, M. A. (2007). Trust and distrust in online banking: Their role in developing countries. Information Technology for Development, 13(2), 161–175. https://doi.org/10.1002/itdj.20059
Bhatti, A., & Rehman, S. U. (2020). Perceived benefits and perceived risks effect on online shopping behavior with the mediating role of consumer purchase intention in Pakistan. International Journal of Management Studies, 26(1), 33–54. https://doi.org/10.32890/ijms.26.1.2019.10512
Brands, J., & Van Wilsem, J. (2021). Connected and fearful? Exploring fear of online financial crime, Internet behaviour and their relationship. European Journal of Criminology, 18(2), 213–234. https://doi.org/10.1177/1477370819839619
Brinson, A., Lee, M.-Y., & Rountree, B. (2011). Direct marketing strategies: The rise of community supported fishery programs. Marine Policy, 35(4), 542–548. https://doi.org/10.1016/j.marpol.2011.01.014
De Kerviler, G., Demoulin, N. T. M., & Zidda, P. (2016). Adoption of in-store mobile payment: Are perceived risk and convenience the only drivers? Journal of Retailing and Consumer Services, 31, 334–344. https://doi.org/10.1016/j.jretconser.2016.04.011
Ding, Y. (2023). Explore the development of new e-commerce models and their impact on consumer purchasing power. 19–24. https://doi.org/10.2991/978-2-38476-092-3_4
Dong, J., & Jia, H. (2022). SWOT analysis: Growth of e-commerce within the context of digital economy. BCP Business & Management, 33, 508–518. https://doi.org/10.54691/bcpbm.v33i.2834
Duarte, P., Costa E Silva, S., & Ferreira, M. B. (2018). How convenient is it? Delivering online shopping convenience to enhance customer satisfaction and encourage e-WOM. Journal of Retailing and Consumer Services, 44, 161–169. https://doi.org/10.1016/j.jretconser.2018.06.007
Gawor, T., & Hoberg, K. (2019). Customers’ valuation of time and convenience in e-fulfillment. International Journal of Physical Distribution & Logistics Management, 49(1), 75–98. https://doi.org/10.1108/IJPDLM-09-2017-0275
Hamed, S., & El-Deeb, S. (2020). Cash on delivery as a determinant of e-commerce growth in emerging markets. Journal of Global Marketing, 33(4), 242–265. https://doi.org/10.1080/08911762.2020.1738002
Heliyani, H., Tasri, E. S., Amelia, D., & Dwianda, Y. (2023). The contribution of e-commerce to economic growth in the COVID-19 era. Economics Development Analysis Journal, 12(1), 129–140. https://doi.org/10.15294/edaj.v12i1.58386
Hille, P., Walsh, G., & Cleveland, M. (2015). Consumer fear of online identity theft: Scale development and validation. Journal of Interactive Marketing, 30(1), 1–19. https://doi.org/10.1016/j.intmar.2014.10.001
Isanawikrama, I., Hutomo, E. D., Irawan, I., & Aguzman, dan G. (2023). Effect of payment gateways towards online shopping behavior in SME in Indonesia. E3s Web of Conferences, 426, 02018. https://doi.org/10.1051/e3sconf/202342602018
Jiang, Y. (2023). The marketing strategy of enterprises for China’s sinking market under the trend of live e-commerce. International Journal of Global Economics and Management, 1(1), 35–40. https://doi.org/10.62051/ijgem.v1n1.06
Khan, B. U. I., Olanrewaju, R. F., Baba, A. M., Langoo, A. A., & Assad, S. (2017). A compendious study of online payment systems: Past developments, present impact, and future considerations. International Journal of Advanced Computer Science and Applications, 8(5), 256–271. https://doi.org/10.14569/IJACSA.2017.080532
Kirana, C., & Yunanto, Y. (2023). Perlindungan dan tanggung jawab hukum atas pembatalan transaksi jual beli melalui metode cash on delivery di e-commerce [Protection and legal responsibility for the cancellation of sale and purchase transactions through the cash on delivery method in e-commerce]. Al-Manhaj Jurnal Hukum Dan Pranata Sosial Islam, 5(2), 1977–1988. https://doi.org/10.37680/almanhaj.v5i2.3443
Kotler, P., & Armstrong, G. (2018). Principles of marketing (17th edition). Pearson Higher Education.
Lakeman, F. A., Walter, N., & Cleff, T. (2021). The impact of payment methods and payment-related marketing communications on e-commerce retailer trust—An empirical consumer analysis of Indonesian e-commerce start-ups. International Journal of Electronic Business, 16(4), 352–376. https://doi.org/10.1504/IJEB.2021.118492
Lalu, S. (2024). Online shopping preferences and behaviors of Bajo fishermen in Popisi Village, Banggai Laut Regency, Indonesia. Egyptian Journal of Aquatic Biology and Fisheries, 28(6), 999–1012. https://doi.org/10.21608/ejabf.2024.395131
Nahlah, N., Lutfi, M., & Sapa, N. B. (2022). Islamic fiqh views on e-commerce. Journal of Business and Management Studies, 4(4), 231–136. https://doi.org/10.32996/jbms.2022.4.4.22
Nazara, D. S., Ratnawita, Ekasari, S., Sulistiarini, E. B., & Utami, E. Y. (2024). Analysis of perceived value of benefit cash on delivery payment method customers when using digital wallet application. Jurnal Informasi Dan Teknologi, 6(1), 21–28. https://doi.org/10.60083/jidt.v6i1.467
Nurcahyo, R., & Putra, P. A. (2021). Critical factors in Indonesia’s e-commerce collaboration. Journal of Theoretical and Applied Electronic Commerce Research, 16(6), 2458–2469. https://doi.org/10.3390/jtaer16060135
Pratama, R. I., Megadini, D. D., & Kusriandini, T. (2019). Effect of perceived ease of use, word-of-mouth communication, and brand image on decision to use Lazada e-commerce services. International Journal of Multicultural and Multireligious Understanding, 6(1), 173. https://doi.org/10.18415/ijmmu.v6i1.533
Purwandari, B., Suriazdin, S. A., Hidayanto, A. N., Setiawan, S., Phusavat, K., & Maulida, M. N. (2022). Factors affecting switching intention from cash on delivery to e-payment services in C2C e-commerce transactions: COVID-19, transaction, and technology perspectives. Emerging Science Journal, 6, 136–150. https://doi.org/10.28991/esj-2022-sper-010
Rita, P., & Ramos, R. F. (2022). Global research trends in consumer behavior and sustainability in e-commerce: A bibliometric analysis of the knowledge structure. Sustainability, 14(15), 9455. https://doi.org/10.3390/su14159455
Șoavă, G., Mehedinţu, A., & Sterpu, M. (2022). Analysis and forecast of the use of e-commerce in enterprises of the European Union states. Sustainability, 14(14), 8943. https://doi.org/10.3390/su14148943
Srivastava, A., Mukherjee, S., Datta, B., & Shankar, A. (2023). Impact of perceived value on the online purchase intention of base of the pyramid consumers. International Journal of Consumer Studies, 47(4), 1291–1314. https://doi.org/10.1111/ijcs.12907
Tsary, S. R. (2023). Application of the principle of good faith in electronic transactions (e-commerce) by consumers that use the cash on delivery (COD) method. International Journal of Multicultural and Multireligious Understanding, 10(10), 51–59. https://doi.org/10.18415/ijmmu.v10i10.5098
Tudor, C. (2022). Integrated framework to assess the extent of the pandemic impact on the size and structure of the e-commerce retail sales sector and forecast retail trade e-commerce. Electronics, 11(19), 3194. https://doi.org/10.3390/electronics11193194
Wrigley, N., & Currah, A. (2006). Globalizing retail and the ‘new e-conomy’: The organizational challenge of e-commerce for the retail TNCs. Geoforum, 37(3), 340–351. https://doi.org/10.1016/j.geoforum.2005.06.003
Yogatama, A. G., Nurhadi, M., Sekarsari, L. A., & Irawan, I. C. (2023). Efektivitas sistem cash on delivery pada e-commerce Lazada selama masa pandemi COVID-19 [Effectiveness of the cash on delivery system in Lazada e-commerce during the COVID-19 pandemic]. Publik Jurnal Manajemen Sumber Daya Manusia Administrasi Dan Pelayanan Publik, 10(2), 689–703. https://doi.org/10.37606/publik.v10i2.608
Yu, L., Liu, Q., Hua, R., & Fu, Y. (2020). Risk analysis of cash on delivery payment method by social network analysis and Fuzzy Petri Net. IEEE Access, 8, 174160–174168. https://doi.org/10.1109/access.2020.3024590
Yulianto, Y., Sisko, A., & Hendriana, E. (2021). The stimulus of impulse buying behavior on e-commerce shopping festival: A moderated-mediated analysis. Journal of Business Management Review, 2(10), 692–714. https://doi.org/10.47153/jbmr210.2152021
References
AbuAli, A. N., Alrefaei, A. A., Aljohani, S. A., Aloufi, I. N., Ghabban, F., Ameerbakhsh, O., Alfadli, I., Al-Shehri, A. H., Fallatah, N. A., & Younis, H. A. (2024). The impact of e-commerce on traditional businesses in Saudi Arabia. Journal of Service Science and Management, 17(04), 354–366. https://doi.org/10.4236/jssm.2024.174018
Ahdiat, A. (2024, January 10). 5 e-commerce dengan pengunjung terbanyak di Indonesia (Januari-Desember 2023) [5 e-commerce with the most visitors in Indonesia (January-December 2023)] [HTML]. Databoks. https://databoks.katadata.co.id/teknologi-telekomunikasi/statistik/3c9132bd3836eff/5-e-commerce-dengan-pengunjung-terbanyak-sepanjang-2023
Al-Adwan, A. S., Al-Debei, M. M., & Dwivedi, Y. K. (2022). E-commerce in high uncertainty avoidance cultures: The driving forces of repurchase and word-of-mouth intentions. Technology in Society, 71, 102083. https://doi.org/10.1016/j.techsoc.2022.102083
Amofah, D. O., & Chai, J. (2022). Sustaining consumer e-commerce adoption in Sub-Saharan Africa: Do trust and payment method matter? Sustainability, 14(14), 8466. https://doi.org/10.3390/su14148466
Anas, H. (2023). Determinant factor on the decision to use the COD payment method: Case of Millennial Generation—Indonesia. East Asian Journal of Multidisciplinary Research, 2(1), 281–290. https://doi.org/10.55927/eajmr.v2i1.2597
Anjum, S., & Chai, J. (2020). Drivers of cash-on-delivery method of payment in e-commerce shopping: Evidence from pakistan. Sage Open, 10(3). https://doi.org/10.1177/2158244020917392
Ariffin, S. K., Mohan, T., & Goh, Y.-N. (2018). Influence of consumers’ perceived risk on consumers’ online purchase intention. Journal of Research in Interactive Marketing, 12(3), 309–327. https://doi.org/10.1108/JRIM-11-2017-0100
Armiani, A. (2022). E-commerce berbasis cash on delivery guna meningkatkan omset penjualan produk UMKM pada masa pandemi COVID-19 [E-commerce based on cash on delivery to increase sales turnover of MSME products during the COVID-19 pandemic]. Owner, 6(1), 668–676. https://doi.org/10.33395/owner.v6i1.639
Azali, K. (2016). Cashless in Indonesia: Gelling mobile e-frictions? Journal of Southeast Asian Economies, 33(3), 364–386. https://www.jstor.org/stable/44132411
Benamati, J. “Skip,” & Serva, M. A. (2007). Trust and distrust in online banking: Their role in developing countries. Information Technology for Development, 13(2), 161–175. https://doi.org/10.1002/itdj.20059
Bhatti, A., & Rehman, S. U. (2020). Perceived benefits and perceived risks effect on online shopping behavior with the mediating role of consumer purchase intention in Pakistan. International Journal of Management Studies, 26(1), 33–54. https://doi.org/10.32890/ijms.26.1.2019.10512
Brands, J., & Van Wilsem, J. (2021). Connected and fearful? Exploring fear of online financial crime, Internet behaviour and their relationship. European Journal of Criminology, 18(2), 213–234. https://doi.org/10.1177/1477370819839619
Brinson, A., Lee, M.-Y., & Rountree, B. (2011). Direct marketing strategies: The rise of community supported fishery programs. Marine Policy, 35(4), 542–548. https://doi.org/10.1016/j.marpol.2011.01.014
De Kerviler, G., Demoulin, N. T. M., & Zidda, P. (2016). Adoption of in-store mobile payment: Are perceived risk and convenience the only drivers? Journal of Retailing and Consumer Services, 31, 334–344. https://doi.org/10.1016/j.jretconser.2016.04.011
Ding, Y. (2023). Explore the development of new e-commerce models and their impact on consumer purchasing power. 19–24. https://doi.org/10.2991/978-2-38476-092-3_4
Dong, J., & Jia, H. (2022). SWOT analysis: Growth of e-commerce within the context of digital economy. BCP Business & Management, 33, 508–518. https://doi.org/10.54691/bcpbm.v33i.2834
Duarte, P., Costa E Silva, S., & Ferreira, M. B. (2018). How convenient is it? Delivering online shopping convenience to enhance customer satisfaction and encourage e-WOM. Journal of Retailing and Consumer Services, 44, 161–169. https://doi.org/10.1016/j.jretconser.2018.06.007
Gawor, T., & Hoberg, K. (2019). Customers’ valuation of time and convenience in e-fulfillment. International Journal of Physical Distribution & Logistics Management, 49(1), 75–98. https://doi.org/10.1108/IJPDLM-09-2017-0275
Hamed, S., & El-Deeb, S. (2020). Cash on delivery as a determinant of e-commerce growth in emerging markets. Journal of Global Marketing, 33(4), 242–265. https://doi.org/10.1080/08911762.2020.1738002
Heliyani, H., Tasri, E. S., Amelia, D., & Dwianda, Y. (2023). The contribution of e-commerce to economic growth in the COVID-19 era. Economics Development Analysis Journal, 12(1), 129–140. https://doi.org/10.15294/edaj.v12i1.58386
Hille, P., Walsh, G., & Cleveland, M. (2015). Consumer fear of online identity theft: Scale development and validation. Journal of Interactive Marketing, 30(1), 1–19. https://doi.org/10.1016/j.intmar.2014.10.001
Isanawikrama, I., Hutomo, E. D., Irawan, I., & Aguzman, dan G. (2023). Effect of payment gateways towards online shopping behavior in SME in Indonesia. E3s Web of Conferences, 426, 02018. https://doi.org/10.1051/e3sconf/202342602018
Jiang, Y. (2023). The marketing strategy of enterprises for China’s sinking market under the trend of live e-commerce. International Journal of Global Economics and Management, 1(1), 35–40. https://doi.org/10.62051/ijgem.v1n1.06
Khan, B. U. I., Olanrewaju, R. F., Baba, A. M., Langoo, A. A., & Assad, S. (2017). A compendious study of online payment systems: Past developments, present impact, and future considerations. International Journal of Advanced Computer Science and Applications, 8(5), 256–271. https://doi.org/10.14569/IJACSA.2017.080532
Kirana, C., & Yunanto, Y. (2023). Perlindungan dan tanggung jawab hukum atas pembatalan transaksi jual beli melalui metode cash on delivery di e-commerce [Protection and legal responsibility for the cancellation of sale and purchase transactions through the cash on delivery method in e-commerce]. Al-Manhaj Jurnal Hukum Dan Pranata Sosial Islam, 5(2), 1977–1988. https://doi.org/10.37680/almanhaj.v5i2.3443
Kotler, P., & Armstrong, G. (2018). Principles of marketing (17th edition). Pearson Higher Education.
Lakeman, F. A., Walter, N., & Cleff, T. (2021). The impact of payment methods and payment-related marketing communications on e-commerce retailer trust—An empirical consumer analysis of Indonesian e-commerce start-ups. International Journal of Electronic Business, 16(4), 352–376. https://doi.org/10.1504/IJEB.2021.118492
Lalu, S. (2024). Online shopping preferences and behaviors of Bajo fishermen in Popisi Village, Banggai Laut Regency, Indonesia. Egyptian Journal of Aquatic Biology and Fisheries, 28(6), 999–1012. https://doi.org/10.21608/ejabf.2024.395131
Nahlah, N., Lutfi, M., & Sapa, N. B. (2022). Islamic fiqh views on e-commerce. Journal of Business and Management Studies, 4(4), 231–136. https://doi.org/10.32996/jbms.2022.4.4.22
Nazara, D. S., Ratnawita, Ekasari, S., Sulistiarini, E. B., & Utami, E. Y. (2024). Analysis of perceived value of benefit cash on delivery payment method customers when using digital wallet application. Jurnal Informasi Dan Teknologi, 6(1), 21–28. https://doi.org/10.60083/jidt.v6i1.467
Nurcahyo, R., & Putra, P. A. (2021). Critical factors in Indonesia’s e-commerce collaboration. Journal of Theoretical and Applied Electronic Commerce Research, 16(6), 2458–2469. https://doi.org/10.3390/jtaer16060135
Pratama, R. I., Megadini, D. D., & Kusriandini, T. (2019). Effect of perceived ease of use, word-of-mouth communication, and brand image on decision to use Lazada e-commerce services. International Journal of Multicultural and Multireligious Understanding, 6(1), 173. https://doi.org/10.18415/ijmmu.v6i1.533
Purwandari, B., Suriazdin, S. A., Hidayanto, A. N., Setiawan, S., Phusavat, K., & Maulida, M. N. (2022). Factors affecting switching intention from cash on delivery to e-payment services in C2C e-commerce transactions: COVID-19, transaction, and technology perspectives. Emerging Science Journal, 6, 136–150. https://doi.org/10.28991/esj-2022-sper-010
Rita, P., & Ramos, R. F. (2022). Global research trends in consumer behavior and sustainability in e-commerce: A bibliometric analysis of the knowledge structure. Sustainability, 14(15), 9455. https://doi.org/10.3390/su14159455
Șoavă, G., Mehedinţu, A., & Sterpu, M. (2022). Analysis and forecast of the use of e-commerce in enterprises of the European Union states. Sustainability, 14(14), 8943. https://doi.org/10.3390/su14148943
Srivastava, A., Mukherjee, S., Datta, B., & Shankar, A. (2023). Impact of perceived value on the online purchase intention of base of the pyramid consumers. International Journal of Consumer Studies, 47(4), 1291–1314. https://doi.org/10.1111/ijcs.12907
Tsary, S. R. (2023). Application of the principle of good faith in electronic transactions (e-commerce) by consumers that use the cash on delivery (COD) method. International Journal of Multicultural and Multireligious Understanding, 10(10), 51–59. https://doi.org/10.18415/ijmmu.v10i10.5098
Tudor, C. (2022). Integrated framework to assess the extent of the pandemic impact on the size and structure of the e-commerce retail sales sector and forecast retail trade e-commerce. Electronics, 11(19), 3194. https://doi.org/10.3390/electronics11193194
Wrigley, N., & Currah, A. (2006). Globalizing retail and the ‘new e-conomy’: The organizational challenge of e-commerce for the retail TNCs. Geoforum, 37(3), 340–351. https://doi.org/10.1016/j.geoforum.2005.06.003
Yogatama, A. G., Nurhadi, M., Sekarsari, L. A., & Irawan, I. C. (2023). Efektivitas sistem cash on delivery pada e-commerce Lazada selama masa pandemi COVID-19 [Effectiveness of the cash on delivery system in Lazada e-commerce during the COVID-19 pandemic]. Publik Jurnal Manajemen Sumber Daya Manusia Administrasi Dan Pelayanan Publik, 10(2), 689–703. https://doi.org/10.37606/publik.v10i2.608
Yu, L., Liu, Q., Hua, R., & Fu, Y. (2020). Risk analysis of cash on delivery payment method by social network analysis and Fuzzy Petri Net. IEEE Access, 8, 174160–174168. https://doi.org/10.1109/access.2020.3024590
Yulianto, Y., Sisko, A., & Hendriana, E. (2021). The stimulus of impulse buying behavior on e-commerce shopping festival: A moderated-mediated analysis. Journal of Business Management Review, 2(10), 692–714. https://doi.org/10.47153/jbmr210.2152021