Along with the development of the world in this era of globalization, it cannot be denied that various fields are growing and developing rapidly simultaneously. Starting from the business, economic, social, political and other fields. Everyone involved in it also requires high mobility. This growth also makes various types of technology develop and makes it easier for humans to carry out their daily activities. Technology has a large role in facilitating the running of an activity. One of them is the internet that comes from daily activities to education and business activities.
The internet is widely used because it is global and its use is able to reach widely. The internet according to the Big Indonesian Dictionary has the meaning of an electronic communication network that connects computer networks and computer facilities organized throughout the world via telephone or satellite internet.
Concepts and Theory
2. 1. Marketing
According to Harris and Botten (2009: 5) marketing is a management process that is able to recognize, anticipate and give satisfaction to consumers to get profit for the company. Marketing requires a good and right planning process in order to be able to meet the goals of a company and it can be said that marketing is the main key to running a business or business.
In developing a business that aims to achieve predetermined goals, Kotler and Armstrong (2014: 5) argue that marketing is the main key. In running a business, the thing that must be considered is being able to provide good prices in the right place and also at the right time. With the marketing going well and precisely, a company can be close to consumers and able to meet consumer needs so as to provide satisfaction to consumers which has an impact on competition with competitors.
According to Kotler and Armstrong (2010: 29) marketing is a process for companies to create a value and also build relationships that aim to regain value from consumers. In this day and age, marketing cannot only be defined as "telling and selling" as in ancient times. Marketing must be able to meet the needs of consumers. As if the producer is able to understand the needs and desires of consumers, able to provide good prices, be able to distribute and promote these products effectively, the products or services offered can be sold easily. (Kotler & Armstrong, 2014: 27)
There are five marketing processes according to Kotler & Amstrong (2014: 27), namely:
1. Able to understand the market and the needs and desires of consumers
2. Design a marketing strategy that focuses on consumers
3. Applying an integrated marketing program that can convey values to consumers.
4. Building a beneficial relationship with consumers and also able to provide satisfaction to consumers.
5. Get back the value from consumers to create profit and customer equity.
2. 2. Global Marketing
2.2.1 Definition of Global Marketing
In 2008, there was an economic crisis in America that helped change the global economic strategy. Along with this globalization is also growing. Globalization is a trend where a company buys, develops, produces and sells goods and services in countries in the world. Many companies in various worlds are trying to keep up with the trend of globalization. (Hollensen, 2011: 6) Globalization and technological development make it easy for many companies in the world to relate to each other with the aim of developing their markets into a broader market, potentially and also having more profit, so the company will run a global marketing strategy that is in line with the world's development. currently. In addition, the company can also increase its competitive level and have access to find new products with the latest technology. When a company does business in various countries in the world it is called internationalization. (Hollensen, 2011: 6)
In carrying out the strategy globally, many things become the main support and the tools used to carry it out. Through the development of technology nowadays, there are various types of technology that facilitate life both in terms of daily activities until they are used for business, one of which is the internet. The internet is an interactive medium that can facilitate exchange of values. The internet has changed the way companies do marketing. (Stokes, 2013: 11)
According to Stokes (2013: 7) the internet is a network that connects the world that allows users to exchange information and data. The internet can also be referred to as users and related data. With the internet as a type of technological development today, it affects humans in carrying out their activities. The internet has a big impact on the speed of communication, marketing goods and services, also influencing the way to access information on websites, especially in online business. (Harris and Botten, 2009: 146)
2.2.2 Global Marketing Goals
In developing the global marketing strategy there are five main processes faced in the global marketing process so that it can determine a global marketing strategy. The process according to Hollensen (2011: 7) is:
• Decision to internalize
• Decide which market to enter
• Determine market entry strategies
• Designing a global marketing strategy
• Implement and coordinate global marketing strategy
The main objective of the process is to create a sustainable competitive advantage in a global market so that it can survive and also keep abreast of changes that will occur in the world market.
2. 3. Electronic Commerce (E-commerce)
According to Reid and Lorenz (2008: 3) with the existence of a global network such as the internet, the way people in the world to interact also evolves and changes from the way they share information to how to do business. The internet creates wider consumers and is able to share information, messages, products or even services. For some types of business, the internet is very important not only as a medium of communication but also as part of the operations carried out every day. The things that are included are e-commerce, communication, collaboration and training.
In the physical market, there are various types of communication media used to market an item or service in the buying process. If in the past marketing and sales were only done directly, the advent of the internet made the way of marketing also changed. Communication that takes place in e-commerce will be more easily delivered with a wide range through the internet. (Hollensen, 2014)
The presence of online communication is increasingly developing inter-world trade, a company can easily make sales in a country because of the smooth communication that makes it easy to monitor and run a business activity outside of other countries. Besides facilitating communication, the emergence of the internet also creates e-commerce. (Reid and Lorenz 2008: 3)
By utilizing the internet as a medium that is used, the internet has changed the way companies do business and this is one factor in how marketing and sales in a company can be said to be successful. Dewi and Warmika, 2017). The internet appears and has changed how the world deals. Online media makes consumers able to choose and also influence in the process of buying and selling. (Stokes, 2013: 22). E-commerce exists as an intermediary for the process of buying and selling products, information and services using the internet and other online environments. (Kaur, Pathak and Kaur, 2015)
2. 4. E-marketing
2.4.1 Definition of E-marketing
Technological developments in communication make considerable changes in personal life and also at work. Technology changes the way people communicate, find information, and also shop. Technology also influences a company in marketing its products and services in a new way and also the way they do business with suppliers and distributors. (Harris and Botten, 2009: 146)
According to (Kaur, Pathak and Kaur, 2015) e-marketing is an element that "moves" dynamically following the development of technology which is one of the strategies in marketing and is a computerized activity and
connected to an environment consisting of networks. E-marketing is a way to market by optimizing digital channels in business. (Stokes, 2013: 20). So it can be concluded that e-marketing is a dynamic process that aims to market products and services to consumers who use technology, especially the internet, to be effective and sell more easily.
2.4.2 E-marketing objectives
E-marketing is an effective method because it can reach consumers in large numbers and is also able to reach consumers globally in a short time with funds that are not too large. (Dewi and Warmika, 2017)
According to (Kaur, Pathak and Kaur, 2015) e-marketing offers goods or services directly to consumers through various types of media. The main purpose of e-marketing is to build good and long-term relationships with consumers through activities carried out online, where the internet becomes an intermediary for the exchange of ideas, goods and services that can satisfy both parties namely companies and consumers. In addition to these main objectives, according to (Kaur, Pathak and Kaur, 2015) there are also several other objectives of e-marketing, namely:
1. a) Methods for being able to make the market more effective and able to meet the needs desired by consumers.
2. b) As a basis for conducting research related to natural characteristics such as demographics, preferences, existing consumer needs, also able to meet the potential needs of consumers.
3. c) Design the process so as to be able to provide strong communication that exists between the company and the client.
4. d) Identify quality customer service in the right way.
Other opinions are obtained from Chaffey and Smith (2008: 35) where
the main purpose of e-marketing is to get closer to consumers and save the value that consumers give by keeping consumers to increase sales in the future.
2.4.3 Dimensions of E-marketing
Reporting from research conducted by Selim there are 13 criteria that can be used to evaluate e-marketing. According to Selim in Prasetya and So, 2014 there were three criteria used in his research. The use of these three dimensions is also considered suitable for researching a company's website as an electronic marketing medium that contains product information as well as other information that can be used in making purchases through a website.
Is the level of ability to access a website. In determining the accessibility of a website, the content contained in the website has an important role to determine the level of accessibility of a website. The ease of finding a website with search engines and being accessible to the public without having to register first and also be accessed efficiently without any time limit and other requirements are things that can be assessed from this accessibility dimension.
UrrencyCurrency / timeliness
This is the level associated with various updates available on the website. Like a company that will provide the latest information needed by consumers and also information that is easy to understand. The company also provides information when the website was last updated.
CcAccuracy / credibility
How true and reliable is the information contained on the website. The material on the website is also assessed to fulfill this dimension. As a reference, there is a physical company that can be contacted to get information.
2. 5. E-service Quality
2.5.1 Definition of E-service Quality
E-service quality is a service provided by a company to consumers through internet media. (Al-dweeri, et al., 2017) e-service quality is now known as E-ServQual which is the latest development of e-service quality. E-service quality is the ability that a company must have to be able to provide services that are able to meet consumer desires and expectations (Connolly in Nasser, et al., 2017)
The difference between traditional service quality and e-service quality is that there is no seller (salesman) who serves buyers directly, creates two-way communication between sellers and buyers virtually, and buyers who do self-service. (Lee and Lin in Nasser, et al. 2015). E-service quality is not only as a benchmark in consumer purchasing decisions.
E-service quality is an important factor that is useful for developing good relationships with consumers. E-service quality is one of the processes to create more value in the future in order to maintain marketing in the long term and get value back from consumers. (Chong and Man, 2017)
Al-dweeri, et al. (2017) argues that e-service quality must make the purchasing process efficient and can meet the needs and expectations of consumers without causing problems that make it difficult for consumers to make purchases.
From the above understanding it can be concluded that e-service quality is a service provided by the company to maintain consumers and get value back through electronic media or the internet.
2.5.2 Dimensions of E-service Quality
E-service quality is an important factor that can be used to provide the best service to consumers and is also a good way to maintain relationships with consumers (Shien and Yazdanifard, 2014). According to Zavareh, et al. (2012) there are several dimensions that can be used to measure e-service quality. Some of these dimensions are efficiency, privacy / security, fulfillment / reliability, site aesthetic, responsiveness and ease of use. These dimensions are measured electronically and the services provided by the company are not in the form of proof but through internet media.
Is the ability of the website that is used to be able to provide the right information and can help consumers in choosing the desired product with minimal effort. This efficiency dimension is subdivided into sub-dimensions, namely website updates and website information, website design, usability, and website navigation.
• Privacy / security
To make transactions via the internet, companies must first be able to build good relationships and build trust. This is because in the midst of developing electronic commerce, there is a feeling of insecurity when making transactions via the internet.
• Fulfilment / reliability
Can be measured based on the timeliness of the website in providing responses to consumers and also reliability or to the response to act immediately if there are several types of problems.
• Site aesthetic
Is one type of dimension that is tangible or visible because it is able to show facilities physically and also describe the company. The appearance of a good and attractive website can make consumers interested and visit the website later on.
Unlike the service quality in general, e-service quality is a broader concept through digital media. If consumers have questions or problems, then the response is needed by consumers to be able to shop and make payments.
AseEase of use
Because the use of the website as a basis for running sales, it is necessary to make spending easier. This is intended to provide convenience to consumers.
2. 6. Purchase Decisions
2.6.1 Definition of Purchase Decisions
According to Harris and Botten (2009: 59) consumers do not buy for a product, but for the value contained in the product. Online buying behavior is the process of buying products or services through the internet which consists of five decision making processes. (Baubonienė and Gulevičiūtė, 2015)
The process of purchasing decisions is the process of selecting decisions on several products carried out by end consumers for consumption that is done directly by themselves. (Kotler and Amstrong, 2014: 158) There are several factors that support consumers to make online purchases, but there are also several factors that make consumers reluctant to make purchases online. (Cho and Sagynov, 2015)
Many things need to be considered to succeed in marketing, especially the right marketing to potential consumers. In this era, where there are many potential customers who use the internet as a tool to facilitate their daily activities. Therefore, the right techniques are needed to be able to do marketing to the right consumers. (Vinerean, 2013)
2.6.2 Purchase Decision Process
The process of purchasing decisions by consumers according to Kotler and Armstrong (2014: 176-178) consists of five processes, namely need recognition, information search, alternative evaluation, purchasing decisions, and post-purchase behavior.
1. Introduction to needs
The decision making process begins with the introduction of needs that arise when consumers face a problem or need. The introduction of these needs can be influenced by various factors, namely internal stimulus that comes from within the consumer and external stimulus that comes from outside the consumer.
2. Search for information
Consumers who feel they want to fulfill their needs will begin to find information. Information retrieval can be obtained through several sources. Can be from personal sources (family, friends, neighbors) can also be from commercial sources (advertisements, promotions, sales people) or can also be obtained from public information (consumer reviews, mass media, online searches). The more information that consumers have about a product, the more knowledge and awareness of consumers about a product.
3. Alternative evaluation
Because the information that is already owned by consumers, it makes consumers have several alternative choices in buying products. Alternative evaluation is the process of evaluating the choice of products and brands and choosing them according to the conditions desired by consumers.
4. Purchase decision
After determining the choices of various alternatives available, the consumer will continue the next process, which is to take action to purchase the product. Where in this purchase decision there are two factors that influence, namely the attitude of others and also the unexpected situation factors.
5. Post-purchase behavior
After consumers decide to buy a product, the process doesn't just stop there. After buying a product there are two possibilities that occur to consumers, namely satisfaction or dissatisfaction. This depends on the product performance that is expected by consumers whether according to expectations. If the product exceeds expectations, consumers will feel very satisfied, but if the opposite, the consumer will feel disappointed. And customer satisfaction is very important to be able to build long-term
Chapter 3 Methodology
3.1 Research Design
Research design is a framework or plan used to measure and analyze data used to answer problems in a study. This design will be the basis for conducting research. (Sekaran and Bougie, 2016: 95).
This research design uses associative research because this research is intended to find out the influence or relationship of e-marketing, e-service quality, in relation to online shopping (e-commerce) on purchasing decisions in Jakarta, Indonesia.
With quantitative, qualitative research methods and data collection using survey methods where the survey results are converted into numbers and then analyzed using statistics so that this study was designed using a quantitative approach as the main approach. According to Sekaran and Bougie (2016: 48) surveys are quantitative studies that are used to examine the symptoms of a group or individual behavior and generally use a questionnaire as a data collection tool.
The unit of analysis in this study is the level of individuals, namely consumers (online users in Jakarta) who shop online. Using data obtained from individuals and treating the data as a data source. Time horizon or time dimension used is cross sectional, which is research conducted where data is collected only once in a certain period of time. (Sekaran and Bougie, 2016: 96)
3.1.1 Quantitative Research
According to Antwi & Hamza (2015) quantitative research methods by are methodologies related to attempts to measure social phenomena and collect and analyze numerical data, and focus on relationships among a number of smaller attributes in many cases. Cross-sectional research is a study conducted in a certain time and no other research will be done at different times to be compared. Quantitative research is collecting numerical data, performing observations and measurements of phenomena that can be analyzed statistically, repeated and replicated by the same researchers or other researchers in the same conditions (Everest, 2014).
3.1.2 Qualitative Research
According to Denzin and Lincoln (1994), qualitative research is a study that focuses on a phenomenon interpretation to govern the nature of a state or event in order for it to make sense in the sense of meaning that people will bring in this arrangement, and also qualitative research method is research conducted by involving the use of qualitative data, such as by conducting interviews, documents or by making observations, to understand and explain a social phenomenon. Qualitative research is a study aimed at gaining a deep understanding of human and social problems, not describing the surface of reality as a quantitative study with its positivism. Where in qualitative research the researcher will interpret how the subject gets the meaning of the surrounding environment, and how that meaning influences their behavior. Research is conducted in natural setting (naturalistic) not the result of treatment (treatment) or manipulation of variables involved.
3.2 Operational Variables
Physical elements such as office furniture layout, communication materials, and physical appearance such as uniforms or clothing and equipment.
Soares, Novaski, & Anholon, 2017
P2- Physical environment
P3 - Physical appearance of contributors
P4 - Materials related to the provision of services
Ability to perform established services in a safe and reliable manner.
P5 - Keep the promise
P6 - Interest in solving customer problems
P7 - Interest in doing the right service for the first time
P8 - Commitment to service
P9 - Persistence in performing the service properly
Willingness to help customers and provide fast service
P10 - Commitment to compliance with set deadlines
P11 - Readiness for customer service
P12 - Willingness to solve problems
P13 - Availability to solve customer questions for clarification
The ability of contributors to provide correct information, decisions and knowledge, and trust.
Q14 - Employees give customers confidence
P15 - Customers feel safe while interacting with the Institution
P16 - Courtesy and employee education
Q17 - There is knowledge that causes customer security.
Personal attention given to customers.
P18 - Individual attention to customers
P19 - A convenient schedule for customers
P20 - Personal services to customers
P21 - Attention to provide the best service to the customer
P22 - Understand customer's specific needs
3.3 Primary Research Methodology
In this study using primary data types. Primary data refers to information obtained directly by researchers on interest variables for specific research purposes (Sekaran and Bougie, 2013: 113). By collecting data through questionnaires and short interviews to patients at several private hospitals in Medan, Indonesia.
Interviews are commonly used information gathering methods. According to Kumar (2011), an interview is a verbal exchange, often face-to-face, though it can use the phone, where the interviewer tries to gain information, trust or opinion from others.
Questionnaire is a set of written questions that have been formulated beforehand where respondents record their answers with clear choices. Questionnaires are given using a Likert scale, which is a scale that states agree or disagree with certain subjects, objects, or events.
3.3 Secondary Research Methodology
Secondary data analysis is the analysis of data collected by others for other major purposes. The utilization of this existing data provides a viable option for subjects with limited time and resources (Johnston, 2014). Secondary data are data collected by parties not related to research studies but collect this data for several other purposes and at different times in the past. If the researcher uses this data then this becomes secondary data for the current user. It may be available in writing, typed or in electronic form. Secondary data can be found by collecting data based on literature review related to research process taken from book, journal, previous research and others.
In this research we use convinience sampling technique. Convinience refers to the collection of information from a group of people willing to give it (Sekaran and Bougie, 2013: 276). A total of 250 questionnaires addressed to patients of private hospital in Medan, Indonesia. During one month, 202 questionnaires were collected from the separate patients from private hospital in Medan, Indonesia.
3.5 Data Test
3.5.1 Data Validity
Validity Test is a process used to prove that an instrument, technique, or process used in analyzing a concept is able to measure the concept and can fulfill the purpose of measuring the validity of a question item in a questionnaire given to the respondent. (Sarstedt and Mooi, 2014: 36) A questionnaire is said to be valid if the question in a questionnaire is able to reveal something that will be measured by the questionnaire. The results of the existing questionnaire will be processed through SPSS software.
- H0: item question is valid
- H1: item question is invalid
Basic Decision Making:
- If r arithmetic> r table, then H0 is accepted
- If r arithmetic <r table, then H0 is rejected
3.5.2 Reliability Data
Reliability is data consistency, score, or observation obtainedby using measurements, the questionnaire was used in this study. A questionnaire is said to be reliable if the respondent's answer to the question or outcome of the measurement is consistent or stable over time. (Sarstedt and Mooi, 2014: 37). The results of the validity test will then be processed through reliability tests through SPSS software.
- H0: Reliable item point
- H1: unreliable question items
Basic Decision Making
- If r α> r table, then H0 is accepted
- If r α <r table, then H0 is rejected
3.6.2. Classic assumption test
The classic assumption test is to give certainty that the regression equation obtained has accuracy in estimation, not biased and consistent. Therefore, a classical assumption test is needed using Normality Test, Multicollinearity Test and Heteroscedasticity Test.
188.8.131.52 Normality Test
The normality test aims to find out whether in the regression model, the dependent variable and the independent variable have a normal or near normal distribution.
Basically the normality test is comparing the data we have. Normality testing is important because one of the requirements for parametric testing is that the data must be normally distributed. (Sarstedt and Mooi, 2014: 149)
The following are the Basis of Decision Making in Normality Test (α in this study amounting to 5% 0.05):
For the number of respondents> 50 then look at the sig in the Kolmogorov Smirnov table
o If sig> then the data is normally distributed.
o If the sig <data is not normally distributed.
184.108.40.206 Multicollinearity Test
According to (Ansofino, Jolianis, Yolamalinda and Arfilindo, 2016: 28) that a good regression model should not have a correlation between the independent variables. The presence of multicollinearity can be seen from the tolerance value or variance inflation factor value.
Basic Decision Making
Tolerance value> 0.10 = Does not occur multicollinearity Tolerance value <0.10 = Multicollinearity occurs
VIF> 10 = Multicollinearity
VIF <10 = There is no multicollinearity
The limit of tolerance value is below 0.10 or the VIF value is above 10, so there is a multicollinearity problem.
220.127.116.11 Heteroscedasticity Test
To find out the situation where the variance inequality occurs from the data in the regression model, it is necessary to test heteroscedasticity. The test is done by finding the correlation between the residual value and the independent variable. (Ansofino, Jolianis, Yolamalinda and Arfilindo, 2016)
Basic Decision Making
Sig> then heteroscedasticity does not occur
Sig <then heteroscedasticity occurs
3.6 Servqual Method
Servqual expectations and perceptions are measured by calculating the values assigned to the five dimensions:
1. Tangibility (appearance of physical facilities, equipment, personnel).
2. Reliability (ability to perform promised services accurately and appropriately).
3. Responsiveness (willingness to provide fast service and ability to help customers).
4. Assurance (knowledge and propriety of employees, their ability to build trust).
5. Empathy (concern, individual attention given to the company's customers).
The following formula is used to calculate servqual on five dimensions:
SQ = comparison of expectation (E) with performance level (P)
SQ = P-E
According to Manulik, Rosinczuk, & Karniej (2016) the negative value on servqual calculation results indicates patient dissatisfaction, and positive values indicate patient satisfaction. The questionnaire has two sets of similar statements where the first is measuring customer expectations, and the second is measuring customer perceptions of the actual service delivered. Servqual has been widely applied by different researchers in a variety of services, including hospitals (Kalaja, Myshketa, & Scalera, 2016). On measuring the value of the Servqual gap has a limit for the determination of the criteria of quality value that has been calculated. The assessment criteria are as follows:
(-4,00) - (-2,40)
(-2,41) – (-0,80)
(-0,81) – (0,80)
0,80 – 2,40
2,41 – 4,00
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