Trust Perception and Payment Method on Marketplace in Indonesia

(Study on Shopee)

AIDA SARI1, MUDJI RACHMAT RAMELAN2, DINA SAFITRI3, NUZUL INAS4

1,2,3,4 Department of Management, Faculty of Economics and Business, Universitas Lampung,

INDONESIA

Abstract: The rapid development of e-commerce in Indonesia has led to the emergence of competition. One of

the e-commerce platforms that is aggressive in promoting and widely used by Indonesian consumers is Shopee.

Shopee conducts promotions in Indonesia to bring new shopping experiences to facilitate easy sales and

provide shoppers with secure payment processes and integrated logistics arrangements.The research purpose is

to determine reputation’s effect, privacy, size, safeguard, web familiarity, and ease in creating a positive effect

on confidence; and trust variable will have a positive effect on payment methods using the electronic payment

system (EPS), credit cards and cash on delivery on product purchases at online shops in Indonesia. The

research methodology uses quantitative methods with a cross-sectional research design by distributing

questionnaires online with a Google Form, with 248 respondents. The study led to the findings of the

perceptions of trust significantly influenced by security, benefits, and convenience, while reputation, privacy,

size, and web familiarization do not affect trust. Furthermore, trust affects the electronic payment method

(EPS), credit card, and cash on delivery. The limitation of the study is in the sampling method which covers not

all regions in Indonesia. Contribution: as a company, Shopee should maintain security, the benefits, and

convenience to develop strategies using electronic payment methods.

Keywords: Online Shop, E-commerce, trust and method of payment.

Received: May 9, 2021. Revised: December 4, 2021. Accepted: January 3, 2022. Published: January 4, 2022.

1 Introduction

E-commerce has defined as buying process,

retailing, and commercialized the goods and

services electronically as business transaction,

both B2C and or B2B by using the internet. E-

commerce has become a business alternative in

the modern era which is in line with

increasingly dynamic market conditions and

competitive competition, resulting in changes in

consumer behavior.

According to Tech in Asia, there are five-

business models of E-commerce in Indonesia,

including classified ads, marketplaces C2C,

shopping malls, B2C stores, and online stores

on social media. One of the marketplace

applications currently being used in Indonesia is

Shopee, that benefits the E-commerce business

by using mobile devices. Shopee positions

itself as a marketplace application. Shopee

exists in Indonesia to bring a new shopping

experience, facilitate easy sales, and equip

buyers with secure payment processes and

integrated logistics arrangements.

Maqableh et al. (2015) stated that the

payment system that will be resolved through

the application system faces many threats;

therefore, the system of remittance is

deliberated to keeping the safeguard and data

protection, and has the technique to produce

reliable transaction records. The problem of

consumer confidence in safety of personal data

protection of online remittance is necessary

because electronic payment systems have been

habituated as a common media for banking

transactions. Some of banking activities such

as payments and transfers now shift to mobile

devices that offers more flexibility in time and

place. Mobile transaction is considered as an

effective and efficient way than the traditional

financial transactions.

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Sumanjeet (2009) stated that the electronic

payment system method is a challenge because

it includes elements of trust measurement as

part of customer payment services using

payment methods, and requires efforts to

convince people who have an experience of

being dissatisfied with online payment systems,

and prefer to make payments in cash due to the

consideration of the trust factor. The most

considerably reason is trust insufficiency from

the customers that experience frequent failures,

online fraudulence, the limited number of

electronic payments options, that breeds the

uncertainty of the users for using such of

technology. The product itself usually does not

exist during transactions through E-commerce

platforms, so the lack of trust and acceptance

becomes important for customers. This research

is expected to yield valuable insights into how

customers behave when using Shopee's

payment methods.

2 Problem Formulation

2.1 Problem formulation and Hypothesis

Some studies only link between the factors

that influence trust in the marketplace, and very

rarely in developing countries that focus on

trust factors that affect the payment system to

be made. Therefore, the formulation of the

problem in this study is whether perceptions of

reputation, privacy, size, security, benefits, and

convenience form a positive influence on

perceptions of trust and whether trust has a

positive effect on purchases using EPS

(Electronic Payment System), credit cards and

cash on delivery (COD).

Based on the description of the former

research, we construct the first hypothesis,:

 H1: Perceptions of reputation, privacy, size,

security, benefits, website user friendly, and

convenience have a significant impact to

trust.

Kim et al. (2010) indicated that the payment

system is a perception of user friendly and

usefulness. There are six elements that affect

electronic payment systems, consisting of

safeguard, user friendly, trustworthiness,

interoperability, common problems, and

additional services. Based on the six factors

above, a lot of effort is needed to generate

mutual trust between traders and customers

in online shopping. Nuri (2014) stated that

security and trust contribute pivotal role to

Privacy standpoint

Claire (2004) explains that privacy is a form

of personality protection. This explanation

explains that privacy is a situation where

someone is allowed to keep individual

information. In addition, privacy is defined as

the ability of individuals to manage the

completeness of personal information, where

the information will be needed and used by

other parties (Ackerman and Culnan, 2002). In

e-commerce, privacy itself is defined as the

willingness of consumers to provide

information via the internet before deciding to

buy an item (Ackerman and Culnan, 2002).

Concerning other people, humans have a

reference to the level of privacy they want.

The relationship between privacy space in

e-commerce is that privacy is the willingness of

consumers to provide information via the

internet before someone decides to buy an item

(Ackerman, 2002); and Culnan (2000). Privacy

on the internet includes 'spam,' data, choices,

and information sharing with e-commerce

service providers. Consumers also ask for

assurances that the information they provide is

limited and regulated by the person concerned

(Belanger, 2002) and (Hoffman, 1999).

Everyone has severe protection of the

privacy of each individual. The information

they provide to sellers in e-commerce is given

by customers very carefully (Hoffman, 1997).

When a consumer maintains their privacy, they

usually prefer to provide incomplete

information to internet providers. The privacy

provided to a website carries a risk of misuse of

that information. In other words, the more a

person feels that a web address well guards the

information provided, the higher the level of

one's trust in a web address will be. (Franzak,

2001).

The privacy standpoint above raises one

hypothesis below, namely:

 H2: Perceived privacy forms a positive

impact on trust

Measurement standpoint

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Perception of size refers to a buyer's

perception of the company's size as being more

significant than the size of the existing

store/office (Jarvenpaa, 2000). According to

Doney (1997) in Jarvenpaa (2000), perception

is one metric by which a large company's size

can persuade other consumers to trust it, and

many companies are successful at it.

A large size indicates that the business can

handle product or service failures and

compensate its customers (Jarvenpaa, 2000). A

large company's characteristics must also

include controlling its suppliers and services, as

the more significant the company, the more

other parties invest in it.

Hypotheses that can be built from the

explanation above are:

 H3: Perception of firm size forms a positive

impact on Trust.

Security standpoint

E-commerce security is a significant control

issue for companies that run e-commerce

(Laudon and Laudon, 2005). Data related to e-

commerce, such as buyer and seller data, must

be kept confidential when consumers are in

electronic transmission. Additionally, the

transmitted data must be protected from being

altered or modified by anyone other than the

sender (Belanger, 2002).

According to Audun (2007), security, in

general, can be interpreted as a state of being

free from danger. This understanding is

comprehensive and includes a person's sense of

protection from intentional and unintentional

crimes, such as natural disasters. A security

threat is defined as a situation, condition, or

event that has the potential to damage data or

networks, which can be in the form of

destruction, leakage, alteration, and misuse of

data (Kalakota and Whinston, 1996) in

(Belanger, 2002).

Consumer security concerns in e-commerce

can be addressed through the use of protection

technology. These technologies are categorized

as security features when they are used

(Belanger, 2002).

According to Icove (2000), based on

security holes, security can be classified into

four, namely: physical security (physical

security), security related to people (personnel),

data security (data security), and media and

communication techniques (communications). ).

Security in operations includes policies and

procedures used to set up and manage security

systems and post-attack recovery procedures.

The management of the security of the online

payment system can be seen from the side of

risk management. Rahardjo (2005) suggests

using the "Risk Management Model" to deal

with threats (managing threats).

Three components contribute to risk,

namely assets, vulnerabilities, and threats. E-

commerce network security that provides

features such as guarantees, contracts, or other

procedures ensures that payment security exists

and runs well (McKnight, 2002 and Shapiro,

1987).

Someone who has a high perception of

structural assurance will firmly believe that

internet technology (e.g., data encryption)

protects so that someone believes that

transactions via the internet can run safely

(McKnight, 2002).

Encryption, legal protection, and technology

safeguards keep consumers from losing money

and privacy. According to Gefen (2003),

security guarantees can be built into e-

commerce sites through collaboration with third

parties who have a good reputation in network

security issues and provide internet security

assurance standards with web assurance seals

such as Verisign E-TRUST, Good House

Keeping, and CPA Web Trusts.

Consumers who feel safe with the internet

environment will tend to trust websites that

provide electronic commerce services compared

to people who feel that the internet is not safe

because they do not believe that there is

adequate protection on e-commerce sites.

From this theory, the fourth hypothesis is

generated, namely:

 H4: Perceived security has a positive impact

on trust

Benefit standpoint

Rahmatsyah (2011) defines perceived

usefulness as the subjective probability of

potential users using a particular application to

facilitate the performance of their work. This

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simplified performance can produce better

physical and non-physical, such as the results

obtained will be faster and with more satisfying

results compared to not using the product with

the new technology. According to Mangin et

al., (2008:14).

Perception of benefits is defined as the

degree to which a person believes that using

technology will increase his/her performance at

work, meaning that the benefits of internet

banking facilities will be able to increase

performance productivity for people who use

the facility.

According to Almuntaha (2008:14), user

perceptions of the benefits of technology can be

measured from several factors:

 The use of technology can increase user

productivity.

 The use of technology can improve user

performance.

 The use of technology can increase the

efficiency of user processes.

The hypotheses that can be built from the

literature review above are:

 H5: Perceived benefits form a positive

impact on trust

Engagement standpoint

Marofi et al. (2012), examines and observes

consumer behavior and impressions of security

and trust in e-payment systems based on

proximity to the website. Rouibah (2012) found

several influencing variables, including internet

experience, personal innovativeness, habit,

tendency to trust. The presence of a third party,

the intention when using the e-payment system

through the connecting variables, the perception

of pleasure, the perception of risk, and trust.

Koufaris and Hampton-Sosa investigated

the level of consumer confidence in the

company's business website after the customer's

first visit to the company's website. The

investigation results found that consumer

perceptions of the company's reputation and

willingness to improve goods and services have

a tangible impact on consumer confidence.

In addition, usability, ease of use, and

security controls are also suspected of having a

significant impact on trust.

The hypotheses raised from the above

theory are:

 H6: Familiarity with the website builds

consumer trust

Convenience standpoint

Jogiyanto (2009) states that perceived ease

of use is defined as the extent to which a person

believes that using technology will be free from

effort. As implied by definition, ease perception

is a belief about the decision-making process. If

a consumer believes an information system is

straightforward to use, he or she will use it.

Sun and Zhang (2011) identified the

dimensions of perceived ease, namely, ease to

learn (easy to learn), ease to use (easy to use),

clear and understandable (straightforward and

easy to understand), and become skillful

(becoming skilled).

The hypothesis that emerged from the

theory above is:

 H7: Perceived convenience forms a positive

impact on trust

Trust standpoint

The primary determinant that affects e-

commerce is trust that the trust strongly

influences consumer behavior on the internet.

Besides that, it can increase social status and

make purchases in the marketplace (Gefen,

2000).

The study conducted by Tan and Thoen

(2001) focused on two main activities, namely

electronic payments, and cross-border trade,

introducing a model of the level of trust

depending on the individuals involved in the

transaction, that the two main factors of the

level of trust in transactions are the trust of

other parties and control mechanisms. Both of

these factors have objective and subjective

aspects.

With the high level of uncertainty and

dynamics in cyberspace, trust appears and is

determined as a direct determinant of attitude

(Gefen and Straub, 2003; Hassanein and Head,

2007; Lin, 2011).

Trust can also be referred to as one's belief

in trusting others which can be determined by

perceived integrity, benevolence, and

competence (McKnight et al., 2002; Lin, 2011).

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Simply put, trust can be described as the

expectation that others will not behave

opportunistically and that the vendor will

deliver what has been promised (Gefen et al.,

2003).

Trust is emphasized as one factor that

significantly influences e-commerce (Abbad et

al., 2011), especially online shopping (Faqih,

2011). According to Abbad et al. (2011), trust

and security are among the primary constructs

for e-commerce.Higher quality e-commerce

sites usually result in higher perceptions of trust

(Hsiao et al., 2010).The context of building

trust is a very challenging process and critical in

shaping consumer attitudes in a developing

country (Lee et al., 2010; Al-Debei and Al-

Lozi, 2014).

Payment methods standpoint

Tsiakis and Sthephanides (2005) imply that

trust and security are two crucial and essential

determinants for any electronic payment system

used as a medium for financial transactions.

Kim et al. (2010) stated that the payment

system perceives ease of use and usefulness.

Nuri (2014) stated that security and trust were

found to play an essential role in attracting and

gaining customer loyalty.

The description of previous studies as

described above builds several hypotheses,

namely:

H8: Perceived trust has a positive impact on

purchase intention using EPS

H9: Perceived trust has a positive effect on

actual purchases using credit cards

H10: Perceived trust has a positive effect on

actual purchases using cash on delivery.

2.2 Research Method

The methodology that is applied for this

study is a quantitative method, that use a cross-

sectional research design where data collection

activities are carried out from one respondent at

a time. The population and sample of this

research are buyers at online Shopee in

Indonesia by applying non-probability sampling

or with a sampling method, which is

convenience sampling, namely members of the

population who are selected based on the

judgment from the researchers.

The number of samples in research using

PLS (partial least square) SEM must have a

minimum of five times the number of questions

in the questionnaire (Hair et al., 2014), so the

total number of questionnaires in this study is 5

x 44 questions so that the respondents in this

study are 220 respondents.

The research questionnaire was designed by

using closed questions in which each variable to

be examined using five measurement scales

(Likert). In distributing research questionnaires,

we use Google-Form by sending questionnaire

links online and explain what will be done to

respondents via social media such as

WhatsApp, Line, direct massage on Instagram

and other social media so that it can speed up

and also make it easier for respondents to fill

out them and the results will be stored digitally.

The components in this research were

adopted from the research of Maqableh et al.

(2015) which is closely related to trust

behaviour and online shopping payment

methods for Shopee in Indonesia (Appendix 1).

All constructs in this study were measured by a

Likert scale, and used a 5-point scale from 1

with information "strongly disagree" to 5

"strongly agree".

The fit test of the overall PLS SEM model

can be seen in TABLE 1, which shows the fit

results. It can be seen that the structural model

testing phase (inner model) can be done using

the following Good of Model Fit.

Table 1. Goodness of Model Fit

Goodness Model of Fit

Original Value (Saturated

Model)

Estimated Model

Note

SRMR

0.067

0.099

Model Fit

d_ULS

4.430

9.688

Model Fit

d_G

1.537

1.703

Model Fit

Source: Data Analysed with Smart PLS Version 3

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The result of the SRMR (referred to the

Standardized Root Mean Square Residual)

figure is the level of prediction error for the

independent variable on the dependant variable.

The residual estimate in this research is the

smaller original value of 0.1. d_ULS (The

Squared Euclidean Distance) and d_G (The

Geodesic Distance) define that a representative

research model must indicate the figure that is

bigger than 0.05 (if using a 95% confidence

interval) or >0.01 (if using a 99% confidence

interval). This means that the research model

has a low residual distribution. Then the

validity test is valid by looking at the square

root of average variance (AVE) value which has

a loading factor above 0.5 and the reliability test

results can be seen from the results of

composite reliability having a value above 0.7

or can also be strengthened by Conbach's

Alpha. (Appendix 2).

3 Problem Solution

The results of distributing questionnaires were

conducted on a non-probability basis through

Google-Form collected 248 which can be

processed into research data. The profiles of

respondents who filled out the questionnaire are

as follows:

Table 2. Respondent Characteristic

Type of Characteristic

Characteristic

Total

Percentage

Sex

Male

78

31,45%

Female

170

68,55%

Age

18 – 30 years old

194

78,23%

30 – 40 years old

15

6,05%

40 – 50 years old

21

8,47%

> 50 years old

18

7,25%

Occupation

Students

147

59,27%

Private-Company Employees

43

17,34%

Civil Servants

47

18,95%

State-owned Enterprise Employees

11

4,44%

Income

< IDR 3 millions

173

69,35%

IDR 3 millions up to IDR 6 millions

50

20,16%

IDR 6 millions up to IDR 9 millions

15

6,05%

> IDR 9 millions

11

4,44%

Shopping Frequency

< 3 times

87

34,68%

6 times

65

26,21%

9 times

20

8,06%

>12 times

77

31,05%

Shopping Cost

<IDR 1.5 millions

188

75,40%

IDR 1.5 millions up to IDR 3 millions

49

19,76%

IDR 3 millions up to IDR 4.5 millions

4

1,61%

> IDR 4.5 millions

8

3,23%

The results of the distribution of the

questionnaires of this study indicate that most

of the respondents who shop online at Shopee

are women with the respondents of the

millennial-age group, which is 78,23 percent

and the shopping frequency more than 12 times

of 31,05 percent. This group is the most active

in shopping online at Shopee. This happens

because consumer confidence in the security of

the online payment system is needed (Maqableh

et al., 2015).

Table 3. Determinant coefficients

Model

R Square

Perceived trust

0.644

Purchase intention to use EPS

0.438

Actual purchase using credit

0.016

Actual purchase using on

delivery

0.023

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The findings of the coefficient of

determination show that the effect of total

reputation perception, privacy perception, scale

perception, safeguard perception, perceived

usefulness, user friendly perception, and trust

perception by 64,4% percent. The trust

perception variable intention to buy by EPS

contributed 43,8%. Trust perception towards

factual buying using credit card contributed

1,60 % and the variable trust perception

towards factual buying using on cash-on-

delivery contributed 2,30 %.

After going through the coefficient of

determination, the next stage is testing the

hypothesis, which is the last stage after all the

parameters have been known.

Table 4. Hypothesis Test

Model

Original

Sample

Mean of

the ample

Standard

Deviation

T-Value

P-Value

Note

Reputation perception -

> perceived trust

0.043

0.054

0.070

0.613

0.540

Not significant

Privacy perception

-> Trust perception

0.119

0.117

0.064

1.841

0.066

Not significant

Scale perception --

> Trust perception

0.003

0.002

0.059

0.047

0.963

Not significant

Privacy perception ->

Trust perception

0.456

0.452

0.059

7.749

0.000

significant

Perceived usefulness

(PU)-> Trust

perception

0.150

0.155

0.059

2.560

0.011

significant

User friendly

perception (PE) ->

Trust perception

0.030

0.020

0.082

0.363

0.716

Not significant

Perceived ease of use -

> Trust perception

0.156

0.162

0.070

2.227

0.026

significant

Perceived trust ->

Intention of buying by

employing EPS

0.662

0.665

0.032

20.645

0.000

significant

Perceived trust ->

Factual buying by

credit cards

0.127

0.134

0.064

1.986

0.048

significant

Perceived trust ->

Factual buying with

cash-on-delivery

system

0.152

0.157

0.061

2.484

0.013

significant

Hypothesis results

 H1 Reputation Perception is not significant

to perceived trust seen from the P-value

0.540. The first hypothesis is not supported.

Unlike previous research conducted by

(Gul, Roshana 2014) proved that reputation

is positive and significant to trust.

 H2 Privacy perception is not significant to

Trust perception seen from P-value 0.066.

Hypothesis 2 does not support

 H3 Scale perception is not significant to

trust perception seen from the P-value

0.963. The third hypothesis does not support

 H4 Privacy perception is significant to Trust

perception as seen from the P-value 0.000.

The 4th hypothesis supports

 H5 Perceived usefulness is significant to

trust perception seen from the P-value of

0.011. The 5th hypothesis supports

 H6 User-friendly perception is not

significant to Trust perception seen from P-

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value 0.716. The 6th hypothesis does not

support

 H7 Perceived ease of use is significant to

Trust perception as seen from the P-value

0.026. The 7th hypothesis supports

 H8 Perceived trust is significant on

Intention of buying by employing EPS as

seen from the P-value 0.000. The 8th

hypothesis supports

 H9 Perceived trust is significant to the

factual buying by credit cards seen from the

P-value 0.048. The 9th hypothesis supports

 H10 Perceived trust is significant on factual

buying with cash-on-delivery system seen

from P-value 0.013

These results show that there is an

implication of belief-formers on online

shopping on Shopee application in Indonesia,

which is determined by safety, benefits, and

convenience factors that have a very significant

effect. This supports the research of Abbad et al

(2011) where trust and safeguard are two main

constructs for E-commerce. High calibre E-

commerce sites gain bigger perception of trust

from its customers (Hsiao et.al, 2010) and the

remarkable actions to gain customer’s trust will

form the consumer attitudes in a developing

country (Lee et al., 2010; Al-Debei and Al-

Lozi, 2014).

These results indicate that there are findings

related to the willingness of customers who

shop online through the Shopee application, is

that they will buy products from Shopee by

making payments via EPS. This finding

supports the research of Tsiakis and

Sthephanides (2005), the credence and

safeguard are most pivotal and indispensable

factors for electronic payment system that is

applied as the tool to financial activities. In

addition, Nuri (2014) stated that security and

trust are important roles in attracting and earn

customer loyalty.

The findings also prove the trust perception

is influenced by the safety, benefits, and

convenience of shopping online at Shopee in

Indonesia, and the perception of the payment

method for purchasing the most influential

factor is by using EPS. Therefore, marketplace

service providers such as Shopee might build

trust by focusing on the safety, benefits, and

convenience of doing online shopping. Further

for the long term, service providers may

develop payment methods through EPS.

Consumers will be most likely to make

purchases online at Shopee with a high level of

trust and payment methods via EPS. If trust,

security, ease of payment have been satisfied by

consumers, consumers will be directly

recommended about the online services offered

by shopee in Indonesia.

4 Conclusion

Based on the results of the research

conducted by using of PLS SEM, the trust

variable is a multidimensional construct

consisting of reputation, privacy, size, benefits,

security, benefits, web familiarity, and

convenience. This result shows that the p-value

is not all indicators that have loading to the

latent variable which is less than 0.05.

This research proves that the factors that

have a significant effect are the safety, benefits,

and convenience of using Shopee as an e-

commerce platform in Indonesia. In addition,

this research also shows an eloquent impact of

trust on payment methods using EPS, credit

cards, and cash on delivery.

The implication for Shopee is to provide

online shopping services such as how to build a

security strategy, benefits, and convenience for

consumers to access Shopee online and another

strategic implication is to develop an electronic

payment method (EPS). The use of EPS can be

relied on in the payment system for online

shopping and by providing a high-security risk

and convenience, consumers will certainly be

loyal to Shopee.

References:

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(2011), “Limitations of e-commerce in

developing countries: Jordan case”,

Education, Business and Society:

Contemporary Middle Eastern Issues,

Vol. 4 No. 4, pp. 280-291.

[2] Al-Debei, M.M. and Al-Lozi, E. (2014),

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APENDIX 1. Variable Operational

Perceived Reputation (PR): (Adapted from

Maqableh et al., 2015)

PR1 Shopee is most favorable website for

shopping online

PR2 Shopee is a trusted website for shopping

online

PR3 Shopee is the top-picked website for

shopping online

PR4 Shopee cares about online customers

Privacy perception (PP): (Adapted from

Maqableh et al., 2015)

PP1 I believe that I recognize all the

companies that benefited from data

collection that I supply during my

activities in Shopee

PP2 I understand the data that I have to supply

to Shopee during a transaction

PP3 I am sure that the data I provide to Shopee

is verifiable

PP4 I am convinced that my data will not be

disclosed by Shopee without my

permission

Scale perception (PS): (Adapted from

Maqableh et al., 2015)

PS1 Shopee is a giant firm

PS2 Shopee is one of biggest supplier’s in

industry for online shopping

PS3 Shopee is a huge platform

PS4 Shopee are available in regional and

global networks

Perceived security (PC): (Adapted from

Maqableh et al., 2015)

PC1 I think Shopee's electronic payment

system is safe.

PC2 I consider the data related to

customers’ transactions using

Electronic payment systems at Shopee

is safe

PC3 I presume that illegal parties are

banned to get my data that I supply

during transactions at Shopee

PC4 I do not worry of the hacker assault of

Shopee's electronic payment system

Perceived usefulness (PU): (Adapted from

Maqableh et al., 2015)

PU1 Buying at Shopee enhances my buying

performance

PU2 Buying at Shopee escalate my

purchase productivity.

PU3 Buying at Shopee escalate my

effectiveness

PU4 Buying at Shopee is practical

Habitual using the website (FW): (Adapted

from Maqableh et al., 2015)

FW1 It is common for me to use Shopee

FW2 I repeatedly is looking for an item at

Shopee

FW3 Buying process in Shopee is well-

known for me

FW4 It is a habitual for me to buy from

Shopee

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User friendly perception (PE): (Adapted from

Maqableh et al., 2015)

PE1 It is a piece of cake for me to learn

about Shopee

PE2 My dealing with Shopee is transparent

and articulate

PE3 I hope no problem to be familiar to use

Shopee

PE4 Shopee is easy to use for online

consumers

Perceived trust (PT): (Adapted from Maqableh

et al., 2015)

PT1 I am convinced that my activities at

Shopee are secured

PT2 My activities with Shopee tend to be

reliable

PT3 Shopee will immediately notify me of

any transaction problems

PT4 I am sure my activities with Shopee

website or application will be crystal-

clear

Intention of buying by employing EPS (P1):

(Adapted from Maqableh et al., 2015)

P11 I will likely buy products from Shopee

P12 I will consider buying products from

Shopee from now on

P13 Probably I would purchase products

from Shopee from now on

P14 Every chance I have, I intend to buy

products from Shopee

Factual buying by credit cards (AP) : (Adapted

from Maqableh et al., 2015)

AP1 I often purchase online in Shopee by

using my credit cards

AP2 I made intensive online purchases at

Shopee using a credit card

AP3 Majority of my purchases in Shopee

are paid by credit cards

AP4 I would like to continue my purchasing

through Shopee by using credit card in

the future

Factual buying with cash-on-delivery system

(AO) : (Adapted from Maqableh et al., 2015)

AO1 I often make online purchases from

Shopee with money (cash-on-delivery)

AO2 I made intensive buying through

internet from Shopee using money

(cash-on-delivery)

AO3 Mostly, I purchased frequently through

Shopee by cash payment (cash-on-

delivery).

AO4 I would like to continue my purchasing

through Shopee by cash in the future

APENDIX 2. Validity and Reliability Test

Variable

Average Variance

Extracted (AVE)

Composite

Reliability

Cronbach’

Alpha

rho A

Perceived reputation

0,599

0,856

0,776

0,782

Perceived privacy

0,581

0,847

0,760

0,765

Perceived size

0,737

0,918

0,880

0.885

Perceived security

0,656

0,882

0,821

0,852

Perceived usefulness

0,720

0,911

0,870

0,873

Familiarity with the

web

0,750

0,923

0,889

0,923

Perceived user

friendly

0,736

0,918

0,880

0,887

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Trust perception

0,613

0,864

0,791

0,807

Purchase intention to

use EPS

0,681

0,894

0,842

0,877

Actual purchase using

credit

0,880

0,967

0,954

0,967

Actual purchase usimg

cash delivery

0,901

0,973

0,964

0,990

Source: Data analyzed by using SmartPLS Version3

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DOI: 10.37394/23207.2022.19.7

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