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4th International Conference on Interdisciplinary, Social Science, Business
and Economics, Education and Technology 2022
LANGKAWI, Malaysia
7 August, 2022
eISBN: 978-967-2963-33-2
i
Copyright © 2022 ACADEMIA INDUSTRY NETWORKS. All rights reserved.
Copyright@2022
All rights reserved. No part of this proceeding may be reproduced in any form, except for
the inclusion of brief quotations in review, without permission in writing from the author/
publisher.
Publisher: Academia Industry Networks (002911676-U)
No 6 Jalan 3/R, Bandar Seri Putra
43000 KAJANG, Selangor
MALAYSIA
Printed in Malaysia
DISCLAIMER:
The editors of the 4th International Conference on Interdisciplinary, Social Science,
Business and Economics, Education and Technology 2022 (ISBTEC22) hereby state that
the papers that are published in this proceeding book were accepted upon review. The
editors are not responsible for any research misconducts (i.e., plagiarism, manipulation of
data, fabrication of data, etc.), content and language of the papers.
4th International Conference on Interdisciplinary, Social Science, Business
and Economics, Education and Technology 2022
LANGKAWI, Malaysia
7 August, 2022
eISBN: 978-967-2963-33-2
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Copyright © 2022 ACADEMIA INDUSTRY NETWORKS. All rights reserved.
PREFACE
Proceedings of 4th International Conference on Interdisciplinary, Social Science, Business
and Economics, Education and Technology 2022 (ISBTEC22)
It is my pleasure to welcome you to the 4th International Conference on Interdisciplinary, Social
Science, Business and Economics, Education and Technology 2022 (ISBTEC22).
ISBTEC22 aims to provide a platform for connecting academic scholars and industry
practitioners world-wide to share the research findings from various disciplines and create a
space for intellectual discussion, exploration and reflection of key issues that are shaping the
world today. This is a great opportunity for delegates to expand knowledge, plan and implement
innovative strategies, overcome barriers and move forward with the initiatives that benefit the
community. There will be huge opportunities for networking, informed dialogues and
collaborations.
Your participation in this conference and submission of research papers is greatly appreciated
and on behalf of the Organizing Committee, I wish you all the safety and health and together we
must strive to get over with the Covid-19 pandemic challenge as soon as possible. Our research
works must endure despite these challenges to continue contributing to the body of knowledge
from new research ideas, methods and problem resolutions.
Thank you.
Dr. Safaie Mangir
Conference Chairman
4th International Conference on Interdisciplinary, Social Science, Business
and Economics, Education and Technology 2022
LANGKAWI, Malaysia
7 August, 2022
eISBN: 978-967-2963-33-2
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ABSTRACT
The objective of this conference is to provide a platform for scholars, intellectuals and
professionals from various academic and industrial disciplines to share the research findings from
various disciplines and create a space for intellectual discussion, exploration and reflection of
key issues that are shaping the world today. The conference welcomes all authors from related
fields of research to submit and/or present the research papers. All accepted papers will be
published in the conference proceeding book with ISBN number. More importantly, the accepted
papers will also be published in refereed journals indexed by Malaysia Citation & Infometrics
Centre.
The conference has attracted a number of participations and accepted research papers from
various research disciplines for publication in proceeding book and journals. All submitted
papers were reviewed by the review committee and the corresponding acceptance notifications
were emailed to the authors upon acceptance approval by the review committee. Subsequently
all accepted papers will be published in conference proceeding book which is targeted to
complete by end of August 2022. All accepted papers correspondingly, will be published in
September 2022 Issue of the refereed journals. The proceeding (with ISBN) will be provided in
PDF format while the journal is online and the related online URL links will be provided via
email upon successful journal publication of the papers.
4th International Conference on Interdisciplinary, Social Science, Business
and Economics, Education and Technology 2022
LANGKAWI, Malaysia
7 August, 2022
eISBN: 978-967-2963-33-2
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1. AHLIYYAH KANAK-KANAK TIPIKAL DAN OKU 1
2. ANALYSIS OF FACTORS AFFECTING SHARIA STOCK PRICES IN
INDONESIA AND MALAYSIA IN THE PERIOD 2016 - 2020 9
3. ASSESSING INDONESIAN CONSUMER ADOPTION OF ELECTRIC
VEHICLES USING THE EXTENDED UTAUT2 MODEL 26
4. BAGAIMANAKAH BERMAIN AKTIF BOLEH MEMBANTU
PERKEMBANGAN KANAK-KANAK MUDA? 40
5. FACTORS DRIVING CONSUMER’S WILLINGNESS TO SHARE
PERSONAL DATA ON SOCIAL MEDIA PLATFORM 52
6. FACTORS INFLUENCING ONLINE PURCHASE DECISION OF LOCAL
PERFUME BRANDS IN INDONESIA 62
7. FACTORS INFLUENCING THE CONSUMER PURCHASE INTENTION
IN E-COMMERCE 78
8. FINANCIAL PERFORMANCE ANALYSIS AND RECOMMENDATION
OF PT BLUE BIRD TBK 92
9. IDENTIFYING IMPORTANT ELEMENTS IN TECHNOLOGY AS A
TEACHING TOOL FOR ETHICS EDUCATION IN SCIENCE THROUGH
THE FUZZY DELPHI METHOD 105
10. IMPROVING OPERATIONAL COST PLANNING CASE STUDY: CV
AN-NAKHL 106
11. MAKLUMBALAS TERHADAP PEMBINAAN STANDARD OPERASI
PROSEDUR (SOP) PENANGKAPAN DAN TAHANAN INDIVIDU
AUTISME 121
12. NEW NORMAL EDUCATION IN THE MID-WAY OF CHRISTIAN AND
MUSLIM COMMUNITY: ITS HIP AND VALLEY IN THE
DIGITALIZATION CHALLENGE 129
13. PERANAN NGO DALAM MEMBERIKAN PENDIDIKAN KEPADA
PENGGUNA: KAJIAN DI MALAYSIA 139
14. PHYSICAL AND SPIRITUAL CLEANLINESS IN ISLAMIC
PERSPECTIVE: RELATIONSHIP AND EFFECTIVENESS TO THE
HEALTH IN PREVENTING COVID-19 PLAGUE 143
15. REAL ESTATE BUSINESS A RETROFITTING’S PATH FOR FULLY
ECONOMY RECOVERY IN POST PANDEMIC 144
16. STUDENTS’ DETERMINANTS OF ENHANCING EMPLOYABILITY
MEDIATED BY EMOTIONAL INTELLIGENCE IN MALAYSIAN
PUBLIC UNIVERSITIES 156
17. STUDENT’S PERFORMANCE THROUGH GAMIFICATION
IMPLEMENTATION IN TEACHING AND LEARNING ACTIVITIES IN
QUANTITY SURVEYING PROGRAMME, UNIMAS 167
18. THE IMPACT OF FOOD-BATTLE VIDEO CONTENT: A CASE OF
TASYI ATHASYIA YOUTUBE CHANNEL 168
No Title Page
TABLE OF CONTENTS
4th International Conference on Interdisciplinary, Social Science, Business
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LANGKAWI, Malaysia
7 August, 2022
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19. THE IMPORTANCE OF DIGITAL FINANCIAL LITERACY TO
ANTICIPAYE IMPULSIVE BUYING BEHAVIOR IN 183
20. THE INFLUENCE OF DESTINATION ATTRIBUTES AND TOURIST’S
LIFESTYLE TOWARDS LOCAL TOURIST PREFERENCES IN
CHOOSING DOMESTIC TOURIST DESTINATIONS IN INDONESIA 195
21. THE INFLUENCE OF FINANCIAL LITERACY TOWARDS
INVESTMENT STRATEGIES AND INTEREST OF YOUNG INVESTORS
IN INDONESIA 210
22. THE INFLUENCE OF HERDING BIAS AND OVERCONFIDENCE ON
INVESTMENT DECISION FOR INSTITUT TEKNOLOGI BANDUNG
STUDENTS WITH FINANCIAL LITERACY AS MODERATING
VARIABLE 225
23. THE MEDIATION EFFECT OF KNOWLEDGE COGNITION AND
REGULATION COGNITION ON MATHEMATICS CLASSROOM
CLIMATE AND STUDENTS’ ACHIEVEMENT 240
24. THE RELATIONSHIP BETWEEN FINANCIAL LITERACY,
PERCEIVED USEFULNESS, AND PERCEIVED EASE OF USE ON
PAYLATER USAGE 256
25. THE RELATIONSHIP OF NONMAINSTREAM BRAND AMBASSADOR
QUALITIES TOWARDS PURCHASE DECISION OF MS GLOW FOR
MEN 270
26. THE SLOGAN "HEBAT PONOROGO" AS IDENTITY AND CITY
BRANDING IN PONOROGO TOURISM PROMOTION 286
27. WHAT MATTERS THE UPPER SECONDARY SCHOOL STUDENTS IN
LEARNING MATHEMATICS-RELATED SUBJECTS DURING THE
COVID-19 PANDEMIC ERA? 298
28. WHEN BRANDS BECOME ACTIVISTS: THE PERCEPTION AND
INFLUENCE OF BRAND ACTIVISM TOWARDS INDONESIA’S GEN Z)
308
4th International Conference on Interdisciplinary, Social Science, Business and
Economics, Education and Technology 2022
LANGKAWI, Malaysia
7 August, 2022
eISBN: 978-967-2963-33-2
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AHLIYYAH KANAK-KANAK TIPIKAL DAN OKU
Nurul Ilyana Muhd Adnan1*
1 Faculty of Islamic Studies, Universiti Kebangsaan Malaysia, Bangi, MALAYSIA
*Corresponding author: ilyana_adnan@ukm.edu.my
Abstract: Al-ahliyyah merupakan kelayakan yang ditaklifkan kepada setiap manusia yang hidup.
Ia merupakan satu kelayakan yang dituntut kepada setiap manusia yang berkelayakan untuk
menerima atau melaksanakan tanggungjawab tersebut sama ada dalam aspek muamalah,
iktiqad, ibadah dan sebagainya. Kelayakan yang ditaklifkan bergantung kepada peringkat serta
tahap perkembangan manusia iaitu dari peringkat janin, peringkat belum mumayyiz, peringkat
mumayyiz, peringkat baligh dan peringkat rushd atau dipanggil sebagai tahap kecerdikan akal.
Kertas ini akan membincangkan pertama, definisi kanak-kanak tipikal dan kanak-kanak OKU.
Kedua, tentang jenis-jenis ahliyyah kanak-kanak. Ketiga, halangan-halangan yang menyebabkan
seseorang kanak-kanak itu hilang kelayakan untuk menerima segala hak dan tanggungjawab
yang disyariatkan kepadanya.
Keywords: al-ahliyyah, kanak-kanak tipikal, kanak-kanak OKU.
1. Pengenalan
al-Ahliyyah dari segi bahasa ialah kelayakan atau keahlian. Menurut istilah syarak, al-ahliyyah
ialah kelayakan individu bagi menyabitkan hak yang disyariatkan ke atasnya atau kewajipan ke
atasnya serta sihat dan sah sesuatu tasarruf daripadanya (al-Zuhayli, 1986). Menurut Zaydan
(1999), al-ahliyyah bermaksud kelayakan seseorang untuk menerima segala hak dan
tanggungjawab yang disyariatkan kepadanya. Yakni, seseorang itu berupaya menanggung hak-
hak orang lain, menerima hak-hak atas orang lain dan mampu untuk melaksanakannya. Oleh itu,
kemampuan itu mengandungi dua bahagian iaitu ahliyyat al-wujub dan ahliyyat al-ada’ (al-
Zuhayli, 1986; Abu Zahrah, 1997). Justeru, kertas ini akan membincangkan pertama, definisi
kanak-kanak tipikal dan kanak-kanak OKU. Kedua, tentang jenis-jenis ahliyyah kanak-kanak.
Ketiga, halangan-halangan yang menyebabkan seseorang kanak-kanak itu hilang kelayakan untuk
menerima segala hak dan tanggungjawab yang disyariatkan kepadanya.
2. Perbincangan
Definisi Kanak-Kanak Tipikal
Kanak-kanak didefinisikan sebagai seseorang yang di bawah umur 18 tahun seperti yang
termaktub dalam Konvensyen Mengenai Hak Kanak Kanak dan seksyen 2 (1) 21 Akta Kanak-
Kanak 2001. Kamus Dewan Edisi Keempat (2010) mendefinisikan kanak-kanak sebagai budak
lelaki atau perempuan yang masih kecil yang biasanya belum berumur lebih daripada 7 atau 8
tahun.
4th International Conference on Interdisciplinary, Social Science, Business and
Economics, Education and Technology 2022
LANGKAWI, Malaysia
7 August, 2022
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Jamil, N. (2010) mengatakan bahawa kanak-kanak adalah seorang yang digelar budak atau anak
kecil, iaitu seorang manusia muda yang belum mencapai baligh serta belum tahu untuk membuat
keputusan dengan sendirinya.
Islam mendefinisi istilah kanak-kanak kepada seseorang yang belum baligh (Al-Sayuti
t.th). Sebelum kanak-kanak mencapai umur baligh, mereka akan melalui peringkat sebelum
mumayyiz dan peringkat mumayyiz.
Menurut Awdah (1994), peringkat sebelum mumayyiz bermula dari saat seseorang kanak-kanak
itu lahir sehinggalah usianya mencapai tujuh tahun. Sepanjang tempoh ini, kanak-kanak masih
belum mampu membezakan antara perkara yang baik dengan perkara yang buruk. Mereka juga
tidak dapat memahami kesan atau akibat bagi sesuatu perbuatan dan belum mempunyai keupayaan
untuk memahami (idrak). Pada peringkat umur ini, kanak-kanak disebut sebagai kanak-kanak yang
belum mumayyiz.
Peringkat mumayyiz pula akan bermula apabila kanak-kanak telah cukup umur tujuh atau lapan
tahun (al-Hisniy 2001). Penetapan umur tujuh tahun sebagai umur mumayyiz adalah berdasarkan
Hadith yang diriwayatkan oleh Abdul Malik bin Rabic bin Sabrah dan ayahnya daripada datuknya
yang bermaksud:
“Ajarlah (atau suruhlah) kanak-kanak bersembahyang ketika berumur tujuh tahun dan pukullah
dia ketika berumur sepuluh tahun” (Abu Daud: 495).
Berdasarkan hadis di atas, Rasulullah (s.a.w) menyuruh ibu bapa supaya mengajar solat kepada
kanak-kanak apabila usia mereka mencapai tujuh tahun. Pengajaran tentang mendirikan solat tidak
dapat dilakukan melainkan seseorang itu mempunyai kemampuan berfikir. Secara tidak langsung,
hadis ini menerangkan kemampuan berfikir akan wujud apabila seseorang kanak-kanak berusia
tujuh tahun. Oleh itu, kanak-kanak yang sudah mencapai tahap pemikiran tamyiz disebut sebagai
kanak-kanak mumayyiz (Madkur 1976). Apabila kanak-kanak mencapai umur baligh, mereka
dianggap mempunyai kemampuan berfikir dan boleh membuat keputusan yang munasabah
mengenai sesuatu perkara terutama yang berkaitan dengan dirinya.
Terdapat dua kaedah untuk menentukan baligh seseorang kanak-kanak. Pertama, baligh secara
tabi’i. Kedua, baligh berdasarkan umur. Kanak-kanak perempuan dianggap mencapai umur baligh
secara tabi’i apabila didatangi haid (Shafie 1321H). Manakala bagi kanak-kanak lelaki apabila
keluar air mani (Shirazi t.th). Manakala penentuan baligh berdasarkan umur ditentukan apabila
tanda-tanda fizikal tidak berlaku pada tubuh badan kanak-kanak. Justeru, fuqaha’ meletakkan
tahap umur tertentu sebagai umur baligh. Mengikut mazhab Hanafi, Shafi’i, dan
Hanbali, seseorang kanak-kanak dianggap sebagai baligh apabila berusia lima belas tahun (Ibn
Qudamah 1969 & Ibn Hummam 1995). Bagi mazhab Maliki pula menghadkan umur tujuh belas
tahun sebagai umur baligh (Al-Dusuki t.th).
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Economics, Education and Technology 2022
LANGKAWI, Malaysia
7 August, 2022
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Berdasarkan definisi dan takrif di atas, jelas bahawa terdapat perbezaan dalam memahami apakah
yang dimaksudkan dengan kanak-kanak. Kadang-kadang ia difahami sebagai umur seseorang di
bawah tujuh atau lapan tahun, dan kadang-kadang di bawah paras umur lapan belas tahun.
Manakala daripada sudut Islam, takrifnya lebih konsisten dengan menghubungkan keadaan aqil
baligh dengan definisi kanak-kanak.
Definisi Kanak-Kanak OKU
OKU dari sudut bahasa berkait rapat dengan kalimah al-I‘aqah. Al-I‘aqah bermaksud terhalang
atau terkurung (Manzur, 1990). Terdapat pelbagai tafsiran mengenai OKU dari segi istilah. Badan
Kebajikan Orang Cacat Arab Saudi mentakrif kecacatan sebagai cacat penglihatan, pendengaran,
fizikal dan pergerakan, susah belajar, tidak lancar bertutur dan bercakap, kecelaruan tingkah laku
dan suka menyendiri dan apa jua kecacatan yang memerlukan penjagaan yang khusus (Nizam al-
Shu’un al-Ijtima‘iyyah, 2000).
Pertubuhan Kesihatan Sedunia (WHO) dan Pertubuhan Bangsa-bangsa Bersatu (PBB) pula telah
mentakrif OKU sebagai seseorang yang tidak berupaya menentukan sendiri bagi memperoleh
sepenuhnya ataupun sebahagian daripada keperluan biasa seseorang individu. Individu OKU juga
tidak dapat hidup bermasyarakat sepenuhnya disebabkan sesuatu kekurangan, sama ada daripada
segi fizikal, mental, berlaku semenjak lahir ataupun kemudiannya (WHO, 1992).
Dalam konteks Malaysia, definisi OKU telah dijelaskan dalam Akta Orang Kurang Upaya 2008
(Akta OKU 2008). Akta ini telah diperkenalkan dan dikuatkuasakan pada 7 Julai 2008. Tujuannya
untuk memberi pengiktirafan dan perlindungan terhadap hak golongan OKU. Dalam akta ini,
definisi OKU menyamai definisi yang telah diberikan oleh PBB. Menurut seksyen 2 Akta OKU
2008, OKU ialah mereka yang mempunyai kekurangan jangka panjang fizikal, mental, intelektual
atau deria yang apabila berinteraksi dengan pelbagai halangan boleh menyekat penyertaan penuh
dan berkesan mereka dalam masyarakat (Akta OKU, 2008).
Selain daripada itu, OKU juga ditakrifkan sebagai seseorang individu yang mengalami
keterbatasan mobilisasi merujuk kepada jenis kecacatannya, sama ada fizikal (anggota), mahupun
mental (ringan, sederhana, berat), penglihatan, dan pendengaran (M. H. A. Rahman, 2009).
Golongan OKU ini harus dilihat dengan cara yang lebih positif dan betul kerana perbezaan asal
OKU ini bukanlah dari segi fizikal tetapi keupayaannya disebabkan oleh kelahiran secara semula
jadi ataupun disebabkan kejadian yang tidak diingini terjadi padanya (Utusan Malaysia 2012). A.
H. Ahmad (2012) menyatakan terdapat sesetengah pihak yang menggunakan istilah ‘Orang
Kelainan Upaya’ bagi mengkategorikan golongan ini. Istilah ini dilihat lebih menyantuni golongan
OKU itu sendiri. Penggunaan istilah ‘orang kurang upaya’ adalah kurang sesuai disebabkan ia
boleh menimbulkan persepsi negatif terhadap golongan tersebut. Perkara ini juga telah disentuh
oleh Ab Aziz Mohd Zin et al. (2009) yang menyarankan agar penggunaan ‘kurang upaya’
digantikan dengan istilah yang lebih tepat dan sesuai iaitu ‘Kelainan Upaya’.
Golongan OKU boleh dikategorikan kepada dua kumpulan kecacatan yang utama iaitu
ketidakupayaan kekal dan ketidakupayaan secara sementara. Kategori ketidakupayaan kekal
adalah golongan cacat anggota, cacat pendengaran, cacat penglihatan, terencat akal dan warga tua.
Manakala individu yang cedera, sakit dan mengandung pula diletakkan di bawah kategori
ketidakupayaan sementara (Ismail, A.M., 2015 & Mohd Zin, A. A, 2009).
4th International Conference on Interdisciplinary, Social Science, Business and
Economics, Education and Technology 2022
LANGKAWI, Malaysia
7 August, 2022
eISBN: 978-967-2963-33-2
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Golongan OKU ini, khususnya di Malaysia dapat dibahagikan kepada dua kelompok masyarakat
iaitu kelompok golongan kanak-kanak istimewa atau kanak-kanak khas dan golongan istimewa
dewasa dan warga tua. Kanak-kanak khas atau kanak-kanak istimewa ini boleh didefinisikan
sebagai kanak-kanak yang berbeza daripada kanak-kanak normal dalam beberapa aspek.
Antaranya adalah menerusi ciri-ciri keupayaan mental, sensori, keupayaan komunikasi, tingkah
laku sosial ataupun ciri-ciri fizikal dan sebagainya (Mohamed, J.K.A., 2005). Kanak-kanak yang
tidak mencapai akil baligh disebut sebagai al-qasir. Allah SWT menyebut lafaz kanak-kanak
menerusi firmanNya yang bermaksud:
Dan apabila kanak-kanak daripada kalangan kamu telah baligh, maka hendaklah mereka
meminta izin sama seperti cara orang-orang (yang telah cukup umur) yang tersebut dahulu,
meminta izin. (Surah an-Nur, 24:59)
Definisi al-qasir berdasarkan kitab Mu’jam Lughah al-Fuqaha adalah seseorang yang tidak
berupaya untuk melaksanakan tasarruf. Al-qasir termasuklah orang gila, kanak-kanak yang belum
cukup umur dan tidak mencapai umur baligh (Qal’aji, M.R. & Qanibi, H. S., 1988). Menurut
Wahbah al-Zuhaily (2012), al-qasir adalah mereka yang tidak sempurna al-ahliyyah sama ada
belum mumayyiz daripada segi percakapan, pemikiran dan tindakan, atau telah mencapai
mumayyiz akan tetapi tidak sempurna pemikiran. Al-Ahliyyah di sini bererti kesempurnaan
seseorang untuk menunaikan hak, menggalas tanggungjawab dan melaksanakan tasarruf ke atas
dirinya dan ke atas orang lain (Wahbah al-Zuhaily, 2006).
Berdasarkan definisi ini, golongan kurang upaya (OKU) sama ada dari segi mental ataupun fizikal
juga termasuk dalam kategori al-qasir kerana tidak sempurna al-ahliyyah mereka. Hal ini jelas
disebut dalam Akta 685, Akta Orang Kurang Upaya 2008 yang mendefinisikan OKU:
Mereka yang mempunyai kekurangan jangka panjang fizikal, mental, intelektual atau deria yang
apabila berinteraksi dengan pelbagai halangan, boleh menyekat penyertaan penuh dan berkesan
mereka dalam masyarakat
Namun, menurut Akta Kanak-Kanak 2001, kanak-kanak adalah seseorang yang di bawah umur
lapan belas tahun. Tasarruf mereka adalah terbatas dan masih berada di bawah tanggungjawab
penjaga. Ini menunjukkan definisi al-qasir di atas adalah sedikit berbeza sekiranya dilihat daripada
perspektif perundangan. Ini kerana definisi kanak-kanak berdasarkan Akta Kanak-Kanak 2001
tidak menetapkan kanak-kanak itu mencapai umur baligh. Oleh itu, Jawwad (2014) berpandangan
bahawa takrifan yang sesuai untuk al-qasir adalah turut merangkumi kanak-kanak bawah umur
sama ada mumayyiz atau tidak mumayyiz, mencapai umur baligh atau tidak, orang gila, orang
bodoh, OKU mental dan fizikal.
Jenis-Jenis Ahliyyah bagi Kanak-Kanak
Ahliyyat al-Wujub
Al-Zuhayli (1986) menyatakan Ahliyyat al-wujub ialah kelayakan manusia dibebani hak yang
disyariatkan untuknya dan yang diwajibkan kepadanya. Kelayakan ini wujud berdasarkan
statusnya sebagai manusia sama ada dewasa, kanak-kanak, mumayyiz atau belum mumayyiz,
lelaki atau perempuan. Begitu juga jika manusia itu seorang merdeka atau masih kanak-kanak.
Manusia yang tergolong dalam golongan ini bertanggungjawab melaksanakan tuntutan syarak ke
4th International Conference on Interdisciplinary, Social Science, Business and
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LANGKAWI, Malaysia
7 August, 2022
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atasnya sehinggalah dia meninggal dunia. Menurut Hanafiyah status ini kekal sehingga hutang dan
wasiat tetap perlu ditunaikan walaupun telah meninggal dunia (Abu Zahrah 1997).
Menurut Hasb Allah, A. (1959), ahliyyat al-wujub terdiri daripada dua jenis. Pertama, ahliyyat al-
wujub al-naqisah. Kedua, ahliyyat al-wujub al-kamilah. Ahliyyat al-wujub al-naqisah merupakan
keupayaan seseorang manusia untuk menerima hak syarak ke atasnya sahaja seperti janin di dalam
kandungan ibunya yang memiliki hak pewarisan, wasiat dan wakaf, namun tidak berkewajipan
menanggung tuntutan syarak ke atas hak tersebut. Ahliyyat al-wujub al-kamilah pula merupakan
kelayakan yang ditetapkan baginya dan diwajibkan ke atasnya untuk menanggung tanggungjawab
tersebut (al-Zuhayli 1995).
Hal ini meliputi semua golongan manusia yang baru lahir sehinggalah dia meninggal dunia selama
mana dia masih bernafas. Mereka memiliki hak untuk mewarisi, diwarisi dan diwajibkan nafkah
dari harta mereka serta tuntutan-tuntutan syarak yang lain sebagai manusia sempurna. Misalnya
anak yang baru dilahirkan berhak menerima warisan daripada ibu bapa atau kerabatnya. Menurut
sebahagian ulama, anak itu juga wajib menunaikan zakat fitrah atau zakat harta yang mana
pelaksanaannya dilakukan oleh ibu bapa atau walinya (Syarifuddin. A., 1997).
Walaupun begitu, ahliyyat al-wujub mempunyai tahap yang sesuai berdasarkan kepada proses
kejadian manusia. Bermula dari janin (dalam kandungan), diikuti bayi yang belum mumayyiz,
anak-anak yang mumayyiz, seterusnya sebagai orang dewasa. Oleh yang demikian, Ahliyyat al-
wujub di peringkat janin, belum sempurna dan akan menjadi sempurna setelah seseorang itu lahir
sebagai manusia (Abu Zahrah 1997).
Ahliyyat al-Ada’
Ahliyyat al-ada’ bermaksud kelayakan seseorang melakukan perbuatan yang diterima syarak. Ia
juga merupakan kelayakan melaksanakan atau menunaikan pengurusan syar’iyyah iaitu
pengurusan yang memberi kesan kepada hukum hakam syarak sama ada sah batal atau halal haram
(Hasb Allah, A. 1959). Menurut al-Zuhayli (1986) pula, ahliyyat al-ada’ adalah kelayakan
manusia sebagai pihak yang dituntut melaksanakan kewajipannya. Sebagaimana perkataan dan
perbuatannya juga akan dihitungkan serta menimbulkan pengaruh syar’inya. Hal ini bermaksud
jika dia melaksanakan sesuatu ibadah maka pelaksanaannya akan dihitungkan dan dapat
menggugurkan kewajipan ibadah tersebut. Begitu juga jika dia melakukan kerosakan, maka ia
dihukum setimpal mengikut perbuatan yang dilakukannya sama ada hukuman berbentuk fizikal
ataupun ganti rugi daripada hartanya. Menurut Zaydan (1999), seseorang insan yang berkelayakan
perlu bertanggungjawab di atas setiap perbuatannya.
Ahliyyat al-ada’ dikategorikan kepada dua bahagian iaitu ahliyyat al-ada’ al-naqisah dan ahliyyat
al-ada’ al-kamilah (Zaydan 1999). Ahliyyat al-ada’ al-naqisah bermaksud kelayakan menerima
yang sempurna tetapi kelayakan melaksanakan tidak sempurna. Pada peringkat ini, kelayakan
melaksanakan sesuatu pengurusan atau tindakan diberikan tetapi tidak kesemuanya boleh
dilaksanakan secara bersendirian seperti bermuamalah. Mereka memerlukan orang lain untuk
mentadbir dan menguruskan sebahagian urusan mereka. Mereka yang dimaksudkan ialah
golongan kanak-kanak mumaiyyiz (Mahmasaniy 1967).
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Mengikut jumhur ulama, kanak-kanak yang berusia tujuh tahun telah dianggap mumayyiz.
Kebiasaannya, kanak-kanak pada usia ini mencapai tahap mumayyiz kerana telah dapat
membezakan sesuatu yang baik dan buruk, makanan, najis serta boleh menguruskan dirinya sendiri
seperti memakai pakaian. Orang gila juga termasuk dalam kategori ini. Hal ini kerana golongan
ini tidak memiliki akal yang sempurna atau akalnya bermasalah dan terganggu. Justeru, golongan
ini tidak boleh diletakkan tanggungjawab ke atasnya (Zaydan 2006).
Ahliyyat al-ada’ al-kamilah pula ialah kelayakan melaksana yang sempurna iaitu kelayakan
seseorang untuk menunaikan tanggungjawab syarak ke atas dirinya apabila mencapai akil baligh
dan berakal. Golongan ini bebas melakukan tindakan mengikut kemahuan walaupun terdapat
risiko yang perlu ditanggung. Menurut Ali Hasbullah (1964), kelayakan ini diberikan pada
peringkat baligh dan rushd. Ini menunjukkan rushd merupakan golongan yang sempurna akalnya.
Mereka mampu berfikir dengan baik dan dapat membezakan sesuatu tindakan yang baik dan
buruk.
Rushd bermaksud golongan yang sudah cukup syarat ahliyyat al-ada’ al-kamilah iaitu telah
mencapai tahap baligh dan berakal (Ibn Kathir 2000; al-Zuhayli 1996). Hal ini menunjukkan
seseorang itu dapat bertindak mengikut keputusan sendiri dan mampu berfikir dengan waras.
Mereka ialah golongan manusia dewasa yang normal. Orang gila yang telah dewasa atau baligh
tidak termasuk dalam kategori ahliyyat al-ada’ al-kamilah tetapi ia termasuk dalam kategori
ahliyyat al-ada’ al-naqisah iaitu sama dengan kategori kanak-kanak mumayyiz.
Penerangan di atas jelas menunjukkan bahawa kelayakan kanak-kanak untuk menerima dan
melaksanakan tuntutan syarak sama ada dalam perkara muamalah mahupun ibadah dibahagikan
mengikut kategori kanak-kanak. Kategori kanak-kanak itu bermula dari peringkat janin dalam
kandungan, bayi yang baru dilahirkan, kanak-kanak mumayyiz dan kanak-kanak yang telah
dewasa.
Halangan-Halangan Al-Ahliyyah
Dalam Al-Ahliyyah terdapat beberapa halangan (‘Awarid Al-Ahliyyah) yang boleh menghilangkan
kelayakan. Kewujudannya akan menghalang seseorang daripada melakukan transaksi dan
menguruskan harta dalam beberapa keadaan tertentu (Abu Zahrah 1994). Halangan tersebut
terbahagi kepada dua bahagian:
1. ‘Awarid al-samawiyyah merupakan halangan yang datangnya daripada Allah atau ketentuan
syarak (semula jadi) dan bukan disebabkan perbuatan manusia.
Contoh halangan tersebut adalah seperti berikut:
a. Gila: hilang akal atau rosak akal sama ada gila secara berterusan atau gila sementara.
b. ‘Atah (nyanyuk): gangguan akal, hilang keupayaan menilai dan menimbang sesuatu (sukar
untuk memahami sesuatu).
c. Pelupa
d. Tidur dan pengsan
e. Marad al-maut, sakit yang tiada harapan sembuh dan kesudahannya adalah mati.
f. Mati.
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2. ‘Awarid Muktasabah merupakan halangan terhadap ahliyyah yang berlaku akibat tindakan
manusia sendiri. Misalnya kejahilan (jahl), tersilap (khata’), kebodohan dalam menguruskan harta
(safih), mabuk, sikap bermain-main (hazl) dan paksaan (ikrah).
3. Kesimpulan
Al-ahliyyah merupakan kelayakan yang ditaklifkan kepada setiap manusia yang hidup. Ia
merupakan satu kelayakan yang dituntut kepada setiap manusia yang berkelayakan untuk
menerima atau melaksanakan tanggungjawab tersebut sama ada dalam aspek muamalah, iktiqad,
ibadah dan sebagainya. Kelayakan yang ditaklifkan bergantung kepada peringkat serta tahap
perkembangan manusia iaitu dari peringkat janin, peringkat belum mumayyiz, peringkat
mumayyiz, peringkat baligh dan peringkat rushd atau dipanggil sebagai tahap kecerdikan akal.
Jenis al-ahliyyah yang telah digariskan mengikut peringkat ialah al-ahliyyah al-wujub dan al-
ahliyyah al-ada’. Dua jenis al-ahliyyah ini dibahagikan pula kepada dua iaitu wujub naqisah dan
wujub Kamilah. Begitu juga al-ahliyyah al-ada’, sama seperti yang tersebut. Terdapat dua kategori
halangan yang menyebabkan seseorang manusia itu terkeluar daripada senarai al-ahliyyah.
Halangan tersebut ialah awarid samawiyyah dan awarid muktasabah. Awarid samawiyyah ialah
kanak-kanak, gila, dungu, pengsan, tidur, marad al-maut dan mati. Manakala awarid muktasabah
ialah jahil, bodoh, mabuk, murtad dan muflis.
4. Penghargaan
Penghargaan ditujukan kepada Kumpulan Penyelidikan dari Pusat Kajian Syariah, Fakulti
Pengajian Islam, Universiti Kebangsaan Malaysia (UKM) bagi tajuk Penyelidikan “Pembinaan
Prosedur Operasi Standard (SOP) Tangkapan dan Pengendalian Tahanan Individu Autisme oleh
Penguat Kuasa Agama”, (Kod Penyelidikan- FRGS/1/2019/SS06/UKM/02/4) serta Kementerian
Pendidikan Tinggi Malaysia, atas biaya geran penyelidikan tersebut.
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Abu Dawud. (1999). Sunan Abi Dawud. Kitab al- Salah. Bab Mata Yu’mar al-Ghulam bi al-Salah.
Dar al-Risalah al-‘Alamiyyah: Damsyik.
Abu Zahrah, M. (1997). Usul al-Fiqh. Kaherah: Dar al-Fikr.
Abu Zahrah. (1994). Usul Fiqih. Cetak ulang. Jakarta: Terbitan PT Pustaka Firdaus.
Ahmad, A. H. (2012). Mengenal dan Menangani Orang Kurang Upaya. Kuala Lumpur: Dewan
Bahasa dan Pustaka, hlm. 1-2.
Awdah, A. Q. (1994). al-Tashric al-Jina’i al-Islami: Muqaranan bi al-Qanun al-Wadci. Jil. 1. Ed.
Ke-13. Mu’assasah al-Risalah: Beirut.
al-Dusuqiy. (t.th). Hashiyah al- Dusuqiy cala al-Sharh al-Kabir. Jil. 3. Maktabah Zahran:
Kaherah.
Hasb Allah, A. (1959). Usul al-Tashri’ al-Islami. Cet. 2. Misr: Dar al-Ma’arif.
Hasb Allah, A. (1964). Usul al-Tasyri’ al-Islami. Cet. k 3. Mesir: Dar al-Ma’arif.
Al-Hisniy. (2001). Kifayah al-Akhyar. Jil. 2. Dar al-Basyair: Damsyiq.
Hussain, R., Ahmad, M.Y. & Noh, N.C. (2020). Tadbir urus harta kanak- kanak menurut
perspektif Syarak. BITARA International Journal of Civilizational Studies and Human
Sciences 3(1): 145-156.
Ibn al-Hummam. (1995). Sharh fath al-qadir. Jil. 30. Dar al-Kutub al-'Ilmiyah: Beirut.
Ibn Kathir. (2000). Tafsir Ibn Kathir. Ed. 2. Bayrut: Dar Tayyibah.
4th International Conference on Interdisciplinary, Social Science, Business and
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Ibn Manzur. (1993). Lisan Al-Arab. Dar Shadir.
Ibn Qudamah. (1969). Al-Mughni. Jil. 4. Maktabah al-Qahirah: Mesir.
Ismail, A.M., Daud, M.N., & Borhan, A.H. (2015). Penyediaan Kemudahan Orang Kurang Upaya
(OKU) di Masjid-Masjid: Kajian Kes di Masjid-Masjid Daerah Batang Padang. Al-Hikmah
7(1) 2015: 6 2-7.
Jamil, N. (2010). Pengenalan dan Definisi kanak-kanak. http://kumpulansepuluh.blogspot.com/
2010/04/pengenalan-dan-definisi-kanak-kanak.html. Di akses pada 20 Feb 2022.
Jawwad. (2014). Al-Wilayah Ala Nafs Al-qasir Fi Al-Fiqh Al-Islami Wa Tathbiqatiha Fi Al-
Mahakim Al-Syari'yyah Fi Qita' Fhazzah: Dirasah Fiqhiyyah Muqaranah. Tesis Master.
Kuliah Tarbiah, Jami'ah Al-Azhar, Ghazzah.
Kamus Dewan. (2010). Edisi ke-4. Dewan Bahasa dan Pustaka: Kuala Lumpur.
Madkur, M.S. (1976). Usul al-Fiqh al-Islami. Dar al-Nahdah: Kaherah.
Mohamed, J.K.A. (2005). Pendidikan Khas untuk Kanak-kanak Istimewa, Pahang: PTS
Profesional Publishing Sdn Bhd.
Mohd Zin, A.A. (2009). Dakwah Islam Terhadap Orang Kurang Upaya. Kuala Lumpur: Penerbit
Universiti Malaya.
Nizam al-Shu’un al-Ijtima‘iyyah. (2000).
Qal'aji, M.R. & Qanibi. H. S. (1988). Mu'jam Lughah Al-Fuqha'. Ed. 2. Dar Al-Nafais.
Rahman, M. H. A. (2009). The Study of Development Programs for the Disabled Community in
Malaysia: The Opportunities and Problems in Education and Employment. Disertasi Sarjana
Ekonomi Tidak Diterbitkan. Kuala Lumpur: Universiti Malaya (UM).
al-Shafie. (1321H). al-Umm. Jil. 2. al-Dar al-Misriyyah: Mesir.
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Islamiyyah. Jil. 2. Bayrut: Dar al-‘Ilm li al-Malayin.
Suruhanjaya Hak Asasi Manusia (SUHAKAM). (2005). Konvensyen Mengenai Hak Kanak-
Kanak. Ampang Press Sdn Bhd: Kuala Lumpur.
al-Suyyutiy. (t.th). al-‘Ashbah wa al-Naza’ir fi qawacid wa furuc fiqh al-Shaficiyyah. Al-Halabi:
Kaherah.
Syarifuddin, A. (1997). Usul Fiqh. Jakarta: Logos Wacana Ilmu.
Undang-Undang Malaysia. Akta 611. Akta Kanak-kanak. (2001).
Undang-Undang Malaysia. Akta 685. Akta Orang Kurang Upaya. (2008).
Utusan Malaysia, 12 Mac 2012.
Utusan Malaysia, 14 Mac 2012.
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disorders: clinicalvdescriptionsvandvdiagnostic guidelines. World Health Organization.
https://apps.who.int/iris/handle/10665/37958
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Muassasat al-Risalah.
Zaydan. (2006). Al-Wajiz fi Usul al-Fiqh. Bayrut: al-Risalah.
Al-Zuhayli. (1986M/1406H). Usul al-Fiqh al-Islami. Bayrut: Dar al-Fikr.
Al-Zuhayli. (1995). al-Wajiz fi Usul al-Fiqh. Cet 2. Bayrut: Dar al-Fikr al-Mu’asir.
Al-Zuhayli. (2006). Al-Wajiz Fi Usul Fiqh Al-Islami. Ed. 2. Vol. 1. Dar Al-Khair.
Al-Zuhayli. (2012). Fiqh Al-Islami Wa Adillatuhu. Ed. 4. Vol. 7. Dar Al-Fikr
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ANALYSIS OF FACTORS AFFECTING SHARIA STOCK
PRICES IN INDONESIA AND MALAYSIA IN THE PERIOD 2016
- 2020
Mohamad Heykal1*, Andi Fahlevi2, Daniel3 and Kevin Wilson4
1 2 3 4 Faculty of Economics and Communication, Bina Nusantara University, Jakarta, INDONESIA
*Corresponding author: mheykal@binus.edu
Abstract: This study aims to find out the impact of liquidity, profitability, sales growth, and
dividend policy on Islamic stock price in Indonesia and Malaysia. The Variable used in this study
are (1) Dependent Variable: Stock Price, and (2) Independent Variable: Liquidity, Profitability,
Sales Growth, and Dividend Policy. The data is taken from financial statements and websites
based on the last 5 years (2016 – 2020) with a sample of 9 companies for Indonesian sharia stocks
listed on the Indonesia Sharia Stock Index (ISSI) and 11 companies for Malaysian sharia stocks
listed on the Bursa Malaysia Shariah Compliant Indices. The research method used is the multiple
linear regression method through the SPSS program version 26.0. The results of this study show
that liquidity and dividend policy have a significant influence, while profitability and sales growth
do not have a significant influence on Indonesia's Sharia stock price. In contrast to Indonesia's
sharia stocks, both liquidity, profitability, sales growth and dividend policy have no significant
influence on Malaysian sharia stocks.
Keywords: Sharia Stocks, Investment, Liquidity, Profitability, Sales Growth, Dividends, Share
Price.
1. Introduction
Investment is the purchase of an asset in the form of stocks, bonds, mutual funds with the aim of
getting a return in the future. Investments can be made with long-term or short-term goals. People
who invest are called investors. Investors have different investment behaviors, some like a high
level of risk (risk taker), some like a low level of risk (risk averse). Investors need to consider
several factors in making investment decisions both short-term and long-term (Yuniningsih,
Widodo, & Nizarudin, 2017). To invest in the capital market, more knowledge of investments is
needed, having experience in investments, as well as business instincts to analyze the securities
regarding which company's shares to buy, which stocks to sell, and which stocks to keep. Investors
must be rational in the face of the capital market and must have a strong forecast accuracy to
determine the future of the company whose shares will be bought, sold, or maintained with the
aim of obtaining profits that match the investor's predictions in the future.
The Capital Market is a meeting place for sellers and buyers of securities which is carried out in
one official institution called the stock exchange (Musthafa, 2015). In the capital market, the
products traded are in the form of stocks, bonds, and mutual funds. In addition to the conventional
capital market, there is also the Islamic Capital Market. Islamic capital markets can be found in
countries where the population is predominantly Muslim including Indonesia and Malaysia. The
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Islamic capital market has differences from the conventional capital market. In the Islamic capital
market, products traded must meet the criteria, namely following Islamic law.
In Indonesia and Malaysia, the Islamic capital market has developed in the number of sharia shares
listed. In Indonesia based on sharia capital market statistics from the OJK, in 2016 the number of
sharia shares in Indonesia amounted to 345 and in 2020 amounted to 436. An increase of 26% in
5 years. In Malaysia, the number of Sharia shares recorded in 2016 amounted to 672, and in 2020
amounted to 715. An increase of 6% in 5 years. If you look at the development of sharia stocks in
Indonesia, it is greater when compared to Malaysian sharia stocks, but the number of Malaysian
sharia stocks is still higher than the number of sharia stocks in Indonesia.
In this study, we want to find out whether factors such as liquidity, profitability, sales growth, and
dividends affect the growth of Islamic stocks in Indonesia and Malaysia. In previous research
conducted on manufacturing sector stocks in Indonesia, (Clarensia, Rahayu, & Azizah, 2017)
showed that the sales growth variable alone did not have a significant effect on the stock price
variable, while other variables such as liquidity, profitability, and dividends had a significant
influence on stock prices.
The purpose of this study is to find out whether factors such as liquidity, profitability, sales growth,
and dividends have a significant influence on Islamic stock prices in Indonesia and Malaysia in
the period 2016 - 2020. We chose Sharia stocks in Indonesia and Malaysia because these two
countries have something in common, namely having a sharia stock index. Through this study, we
hope to help investors in making investment decisions in Islamic stocks so that they can get a
return.
2. Literature Review
Signalling theory is a theory that discusses how signals relate to the successes and failures of
management that investors want to convey to investors (Farhana & Adelina, 2019). Signals are
conveyed through financial statements or annual reports by management. The signals given by
management can be either positive or neutral or negative signals.
Signaling theory can be associated with companies to provide information to investors by
publishing financial statements or annual reports as a tool used to attract investors (Widagdo,
Jihadi, Bachitar, Safitri, & Singh, 2020). Information allegedly through financial statements will
be notified to investors. Through the information provided by investors, it can be used to predict
company profits and also expected stock returns which are very important in making investment
decisions (Puspitaningtyas, 2019). The information provided by management such as dividend
collection has a significant effect on the share price (Suwanna, 2012).
Sharia stocks are stocks that follow sharia principles and do not conflict with Islamic law. The
main principles of Islamic finance are the prohibition of interest, the prohibition of contract
uncertainty (Sulia Sukmawati, Kusnadi, & Ayuni, 2020). This difference makes Islamic stock
investment different from conventional stock investment. Sharia stock investment is based on five
main principles, which include the prohibition of interest (usury), the prohibition of excessive
uncertainty (gharar), the prohibition of speculation (maysir) of risk and profit sharing, and the
prohibition of investing in 'unethical' (haram) industries (Abdul-Rahim et al., 2019; Abbes &
Trichilli, 2015). In the Islamic capital market, an efficient stock market must describe the actual
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and current stock market conditions of companies listed in the capital market, which in the end the
actual share price is formed based on fairness and transparency (Malini, 2021).
Sharia stocks are stocks that follow sharia principles and do not conflict with Islamic sharia. The
main principles of sharia finance are the prohibition of interest, the prohibition of contract
uncertainty (Soemitra, 2016). Just like conventional stocks, investing in Islamic stocks also
requires fundamental and technical analysis so that investors can assess the stock and make a
profit. The use of fundamental and technical analysis usually depends on the nature of the investor
himself where for long-term investments it would be better to use Fundamental analysis while for
short-term investments investors tend to use technical analysis.
In Indonesia, the list of sharia stocks can be seen on the Indonesia Sharia Stock Index. The
Indonesia Sharia Stock Index (ISSI) launched on May 12, 2011 is a composite index of Sharia
stocks listed on the IDX. In addition to this index, there is also the Jakarta Islamic Index (JII). The
Jakarta Islamic Index (JII) is a sharia stock index that was first launched in the Indonesian capital
market on July 3, 2000. In ISSI, the listed shares are sharia stocks as a whole while in JII there is
a selection of Sharia stocks which will later be selected 30 Sharia stocks based on the highest
average market capitalization in the last 1 year and based on the average daily transaction value in
the highest regular market.
In Malaysia, Islamic stocks are indexed on the FTSE Bursa Malaysia Gold Index. Of the total
number of Sharia stocks listed, 30 sharia stocks with the best performance are listed on the FTSE
Bursa Malaysia Shariah Index. To be listed in the FTSE Bursa Malaysia Shariah Index, there are
criteria that need to be met through three screening processes; The FTSE's global standards on free
float, liquidity and investment ability. Yasaar international Shariah screening methodology. The
screening methodology of the Sharia Advisory Board (SAC) of the Malaysian Securities
Commission.
Financial Ratio is a method of financial analysis that can be used as an indicator of assessing the
development of a company. Financial ratios can be used to see the financial condition in the form
of ratios to assess the good or bad performance of a company one period of time (Kasmir, 2014).
The financial ratios used in this study are liquidity ratios and profitability ratios. Liquidity ratios
that can use the ability to pay off the company's operating obligations within a short-term period
(Clarensia et al., 2017). Profitability Ratio can be used to find out how much a company's ability
is in earnings from sales, profits, assets, and company equity (Roiyah & Priyadi, 2019).
Liquidity is the ability possessed by a company to fulfill the company's operational obligations
regarding finances in the short term to pay off the company's obligations The liquidity in question
is assets and cash. The assets included in the liquidity of this company are current assets that are
easy to disburse into cash that include cash, securities, receivables, and inventory (Rahayu,
Zufrizal, Astuty, & Triastuti, 2020). The greater the liquidity the better the company is to bear the
company's obligations. Liquidity Ratio can be used to measure a company's ability to meet its
short-term obligations. One of the liquidity ratios is the Current Ratio, which describes the
company's ability to pay off short-term liabilities by utilizing its current assets (Susanti, Latifa, &
Sunarsi, 2020).
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Profitability is an effort made by a company to generate profit in the company's operational
activities for a certain period (Kasmir, 2014). Profitability is a capability possessed in a company
by making a profit or profit in a process through all existing capabilities and resources such as
sales activities, cash, capital, the number of employees and so on to what extent the company's
business ability generates profits from sales and investment of the company (Kumala & Ahya,
2020). Profitability can be used to measure the performance indicators of the company's
management. If the company's management is good, it will increase investor confidence to invest
in the company (Roiyah & Priyadi, 2019). Profitability can be seen from the Return on Equity
(Satar & Jayanti, 2020). Return on Equity can be used to measure a company's performance in
managing capital from the income or profits of companies that have generated it after tax (Kumala
& Ahya, 2020). The Profitability Ratio can be seen from how much the company is able to make
a profit from revenues related to sales, assets, and equity based on a certain measurement basis
(Ridha, 2019). The profitability ratio is used to measure the effectiveness of management based
on the return on investment sales as well as the company's ability to generate profit (profit) which
will be the basis for the company's dividend distribution (Kumala & Ahya, 2020). One of the
profitability ratios that can be used is the Return on Equity (ROE) ratio. ROE is one of the
important ratios for shareholders to know the effectiveness and efficiency of own capital
management which is carried out by the company's management (Laila, Dwi Nantyah, &
Sukmaningrum, 2014).
Sales growth is needed for the company so that the company can survive and develop to be bigger
in the future. According to (Hasanudin, 2021), in order for the company to succeed and survive as
a business, profitability and growth are very important for the company to survive and remain
attractive to investors. Stable sales growth from year to year can be an indicator that the company's
business is in good condition and can be an attraction for investors.
Dividends are the distribution of part of the profits to the shareholders. dividends are obtained
from the distribution of proceeds from the company to shareholders or investors in owning shares
with the number of shares it owns. In general, dividends can be distributed to shareholders within
a certain time such as getting dividends every year, it can happen in 6 months to get a share of
dividends from the company. Dividend Payout Ratio is the amount of dividends or percentage of
profit paid by the company to shareholders as cash dividends so that the higher the dividend payout
ratio set by the company, the smaller the funds invested in the company (Detiana, 2011). Dividend
policy is a decision on whether the profits earned by the company will be distributed to
shareholders as dividends or will be held for investment financing in the future (Satar & Jayanti,
2020).
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Previous research is needed to be a reference in carrying out this research. With previous studies,
hypotheses can be developed for this study. Here is a similar previous study:
Table 1: Previous Research
No
Name
Research Title
Sample
Research Results
1
Clarensia,
Jeany;
Rahayu, Sri;
Azizah, Nur
(2017)
Pengaruh Likuiditas,
Profitabilitas, Pertumbuhan
Penjualan, dan Kebijakan
Dividen Terhadap Harga
Saham (Studi Empiris pada
Perusahaan Manufaktur
yang Terdaftar di Bursa
Efek Indonesia Tahun
2007-2010)
14 Shares of
Manufacturing
Companies for the
Period 2007-2010
1. The sales growth
variable has no
significant influence
on the stock price
variable
2. Variables of liquidity,
profitability, sales
growth, and dividend
policy simultaneously
(simultaneously) have
a significant effect on
stock prices
2
Detiana, Tita
(2011)
Pengaruh Rasio Keuangan,
Pertumbuhan Penjualan dan
Dividen Terhadap Harga
Saham
20 Shares of LQ 45
Company in the
Period 2004-2008
1. Profitability affects
stock prices
2. Liquidity, dividends,
sales growth have no
effect on stock prices
3
Roiyah,
Maratur;
Priyadi,
Maswar Patuh
(2019)
Pengaruh Profitabilitas,
Ukuran Perusahaan dan
Good Corporate
Governance Terhadap
Return Saham Syariah
14 Shariah Shares
Incorporated in JII
for the 2013-2017
Period
1. Profitability Affects
Stock Returns
4
Pranata, Dany;
Pujiati, Diyah
(2015)
The Effect of Liquidity,
Profitability, Sales Growth,
and Dividend Policy on
Stock Prices After The
Implementation of IFRS
LQ 45 Company
Shares During the
Period 2011-2013
With the
Implementation of
IFRS in the
Financial
Statements
1. Liquidity has a
significant influence
on stock prices
2. Profitability has a
significant influence
on stock prices
3. Sales growth has a
significant effect on
stock prices
5
Hasanuddin
(2021)
Analysis of the Effect of
Sales Growth, Inventory
Turnover and Growth
Opportunities on
Profitability and Stock
Return
6 Shares of fast-
moving consumer
goods sub-sector
manufacturing
companies during
the period 2014-
2018
1. Sales growth has a
positive but not
significant impact on
stock returns
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2.1 Problem Statement
In this research, we want to find out factors such as liquidity, profitability, sales growth, and
dividend policy, which ones that can help investors make investment decisions in Islamic stocks.
Here are the research questions:
1. Does liquidity have a significant effect on Islamic stock prices in Indonesia and Malaysia?
2. Does profitability have a significant effect on Islamic stock prices in Indonesia and Malaysia?
3. Does sales growth have a significant effect on Islamic stock prices in Indonesia and Malaysia?
4. Does dividend policy have a significant effect on Islamic stock prices in Indonesia and
Malaysia?
5. Which factors can help investors make investment decisions in Islamic stocks?
3. Method
This research was conducted using quantitative methods. The data was analyzed to find out
whether these factors have a significant influence on Sharia stock prices in Indonesia and Malaysia.
Stock price data is accessed through the finance.yahoo.com website (Yahoo Finance) and financial
report data can be accessed through the websites of each company. For this study we used SPSS
software for Analysis and Microsoft Excel. The variables we used in this study are Liquidity (X1),
Profitability (X2), sales growth (X3), dividends (X4), and stock price (Y). The liquidity ratio used
in this study is the current ratio, the profitability ratio, namely return on equity, sales growth and
dividend policy, can be seen through financial statements, and the stock price can be taken from
the closing price of the shares.
3.1 Materials
The data we used in this study is time series secondary data. The secondary data used in this study
are data on sharia stocks Indonesia and Malaysia listed on the Indonesia Sharia Stock Index (ISSI)
and Bursa Malaysia Shariah Compliant Indices and financial statements in Indonesia and Malaysia
in investing.com. Financial statements can be obtained through the official website of their
respective companies. The data used is the annual financial statements of companies in Indonesia
and Malaysia in the period 2016 - 2020. After getting the complete data we use the normality test
to check if the data we need is consistent. To continue the research, we used the SPSS program
and Microsoft Excel to manage the research data.
3.1.1 Samples
To determine the number of samples used, this study used purposive sampling techniques. The
selected data are sharia stocks listed on the Indonesia Sharia Stock Index (ISSI) for Indonesia and
the FTSE Bursa Malaysia Hijrah Shariah Index for Malaysia. The selected stock will meet certain
criteria, such as:
1. Completeness of data on the company's annual report in the period 2016 - 2020.
2. Completeness of company stock price data on the yahoo finance website during the period 2016
- 2020.
3. The currency used corresponds to the national currency of the company.
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In the following table is a sample of company stocks used in this study:
Figure 1: Research Framework
Table 2: Sharia Stocks List
No
Indonesian Sharia Stocks (ISSI)
Malaysian Sharia Stocks
1
PT AKR Corporindo Tbk
PPB Group Bhd
2
PT Indofood CBP Sukses Makmur Tbk
Petronas Chemicals Group Bhd
3
PT Indofood Sukses Makmur Tbk
Digi.Com Bhd
4
PT Tambang Batubara Bukit Asam Tbk
Axiata Group Bhd
5
PT Semen Indonesia Tbk
Press Metal Bhd
6
PT Telkom Indonesia Tbk
Sarawak Oil Palms Bhd
7
PT United Tractors Tbk
Gas Malaysia Bhd
8
PT Kalbe Farma Tbk
Bursa Malaysia Bhd
9
PT Unilever Indonesia Tbk
Gamuda Bhd
10
-
Dialog Group Bhd
11
-
Tenaga Nasional Bhd
3.1.2 Site
As for data collection, independent variables such as liquidity, profitability, sales growth and
dividend payout ratio were taken from the company’s annual report. The company’s annual report
is downloaded directly from the company’s website. As for the dependent variable, stock prices
were obtained from finance.yahoo.com and investing.com.
3.1.3 Procedures
To illustrate this research, we developed a frame of mind. Based on the background and
formulation of the problem, and supported by the theoretical foundations and previous research,
this research framework is depicted through the following figure:
(Clarensia et al., 2017) shows that liquidity has a significant effect on stock prices. (Detiana, 2011)
shows that liquidity has an effect on stock prices. Based on previous studies, the hypothesis can
be formulated as follows:
H1: Liquidity has a significant effect on stock prices
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(Clarensia et al., 2017) shows that profitability has a significant influence on stock prices. (Detiana,
2011) shows that profitability has an influence on stock prices. (Pranata & Pujiati, 2015)
Profitability using ROA has a positive significant effect on stock prices. (Roiyah & Priyadi, 2019)
Profitability using ROI ratio affects stock returns. Based on previous studies, the hypothesis can
be formulated as follows:
H2: Profitability has a significant effect on stock prices
(Clarensia et al., 2017) shows that sales growth does not have a significant effect on stock prices.
(Detiana, 2011) shows that sales growth does not have a significant effect on stock prices. (Pranata
& Pujiati, 2015) shows that sales growth does not have a significant effect on stock prices.
(Hasanudin, 2021) shows that sales growth has a positive and significant impact on stock returns.
Based on previous studies, the hypothesis can be formulated as follows:
H3: Sales growth has no significant effect on stock prices
(Clarensia et al., 2017) shows that dividend policy has a significant influence on stock prices.
(Detiana, 2011) shows that dividend policy has no effect on stock prices. Based on previous
studies, the hypothesis can be formulated as follows:
H4: Dividend policy has a significant effect on stock prices
(Clarensia et al., 2017) conclude that the variables of liquidity, profitability, sales growth, and
dividend policy simultaneously significantly affect the variables of stock prices.
H5: Liquidity, profitability, sales growth, and dividend policy simultaneously have a significant
effect on stock prices.
3.2 Measurement
These are the equation used for liquidity, profitability, sales growth, and dividend policy:
1. Liquidity - Current Ratio
2. Profitability – Return on Equity (ROE)
3. Sales Growth
Information:
St = Sales period year t
St-1 = Sales of the previous year's period
4. Dividend Payout Ratio
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3.3 Data Analysis
This study used independent variable dependent variables with the multiple linear regression
method. Independent variables used in this study include liquidity, profitability, sales growth, and
dividend policy. The dependent variable used in this study is the sharia stock prices of Indonesia
and Malaysia which we have obtained after we filtered through purposive sampling method. We
used the data transformation of the Cochrane Orcutt method from the data that had been collected,
in the information to address the problem of autocorrelation in the data against this study. Data
transformation is needed so that the data can pass the necessary tests so that the results of this
study can be valid.
3.3.1 Classic Assumption Test
Indonesian Sharia Stocks
Figure 2: Normality Test of Indonesian Sharia Stocks
Normality Test
From the picture above, it can be said that distributed data is normal if the plotting data (dots)
follows diagonal lines. From the image, it can use a probability plot normality test that can be used
to detect regression models that will be analyzed to be distributed normally or not. The data used
for Indonesian sharia stocks can be concluded that the data can be distributed normally because it
follows a diagonal line.
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Table 3: Multicollinearity Test of Indonesian Sharia Stocks
Unstandardized
Coefficients
Standardized
Coefficients
Model
B
Std.
Error
Beta
t
Sig.
Tolerance
VIF
1
(Constant)
12923.922
3382.537
3.821
.000
LAG_X1
-3202.667
1486.198
-.339
-2.155
.037
.787
1.270
LAG_X2
104.276
56.225
.366
1.855
.071
.499
2.004
LAG_X3
47.853
72.314
.093
.662
.512
.980
1.020
LAG_X4
-174.109
84.195
-.386
-2.068
.045
.558
1.794
Multicollinearity Test
The Multicollinearity Test is a test that can be used to find out whether there is a correlation or has
a strong relationship between independent variables and dependent variables in a multiple linear
regression model. It can be seen from the table above that the variable LAG_X1 (Liquidity), for
tolerance of .787 > 0.100 and VIF of 1,270 < 10.00, it can be concluded that there is no
multicollinearity. The variable LAG_X2 (Profitability), for tolerance of .499 > 0.100 and VIF of
2,004 < 10.00, can be shown that there is no multicollinearity. Variable LAG_X3 (Sales growth),
for tolerance of .980 > 0.100 and VIF of 1,020 < 10.00, can be implied that there is no
multicollinearity. The variable LAG_X4 (Dividend), for tolerance of .558 > 0.100 and VIF of
1,794 < 10.00, can be shown that there is no multicollinearity. It can be concluded that the test
does not occur symptoms of multicollinearity if the tolerance value > 0.100 and the VIF value <
10.00. For data on Indonesian sharia stocks, it can be concluded that there are no symptoms of
multicollinearity.
Figure 3: Heteroskedasticity Test of Indonesian Stock Prices
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Heteroskedasticity Test
The heteroskedasticity test is a test that can be used to determine whether there is an inequality to
a variant from the residuality of one observation to another. It can be seen from the table above
that it can show that the data does not occur symptoms of heteroskedasticity, if there is no clear
pattern (wavy, widened or narrowed) in the scatterplots image, and also the dots spread above and
below the number 0 on the Y axis. Looking at the pattern in the picture above, it can be concluded
that the data for Indonesian Sharia stocks is free from the symptoms of heteroskedasticity
Table 4: Durbin Watson Autocorrelation Test of Indonesian Sharia Stocks
Adjusted R
Std. Error of the
Model
R
R Square
Square
Estimate
Durbin-Watson
1
.491a
.241
.164
7196.89972
1.833
a. Predictors: (Constant), LAG_X4, LAG_X3, LAG_X1, LAG_X2
b. Dependent Variable: LAG_Y
Durbin Watson Autocorrelation Test
For the autocorrelation test we used the Durbin Watson autocorrelation test method. The Durbin
Watson autocorrelation test is one of the mottoes that can be used to detect autocorrelation
problems in research. Based on the Durbin Watson autocorrelation test, data no autocorrelation
symptoms occur if the value of Durbin Watson is between du and 4-du (du < dw < ((4-du)). du
(1.7200) < dw (1.833) < 4-du (2.2800), meaning that the data are free from autocorrelation
symptoms.
Malaysian Sharia Stocks
Figure 4: Normality Test of Malaysian Sharia Stocks
Normality Test
The Normality Test is a test that can be used to find out the value of the distribution of data or
variables that have been collected and find out whether the data that is already owned is normally
distributed or taken from a normal population. From the image, it can use a probability plot
normality test that can be used to detect regression models that will be analyzed to be distributed
normally or not. From the picture above, it says that distributed data is normal if the plotting data
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(dots) follows diagonal lines. From the figure, the data used can be said to be normally distributed
because the dots follow diagonal lines.
Table 5: Multicollinearity Test of Malaysian Sharia Stocks
Unstandardized
Coefficients
Standardized
Coefficients
Model
B
Std. Error
Beta
t
Sig.
Tolerance
VIF
1
(Constant)
2.042
.521
3.920
.000
LAG_X1
-.613
.559
-.186
-1.097
.278
.683
1.464
LAG_X2
-.009
.010
-.166
-.897
.374
.574
1.741
LAG_X3
-.001
.020
-.004
-.029
.977
.955
1.068
LAG_X4
-.009
.021
-.070
-.439
.663
.770
1.298
a. Dependent Variable: LAG_Y
Multicollinearity Test
The Multicollinearity Test is a test that can be used to find out whether there is a correlation or has
a strong relationship between independent variables and dependent variables in a multiple linear
regression model. It can be seen from the table above that it can show that the variable LAG_X1
(Liquidity), for tolerance is as much as .683 > 0.100 and VIF of 1. 464 < 10.00, it can be concluded
that there is no multicollinearity. The variable LAG_X2 (Profitability), for tolerance of .574 >
0.100 and VIF of 1.741 < 10.00, it can be concluded that there is no multicollinearity. Variable
LAG_X3 (Sales Growth), for tolerance of .955 > 0.100 and VIF of 1.048 < 10.00, it can be
concluded that there is no multicollinearity. Variable LAG_X4 (Dividend Policy), for tolerance of
.770 > 0.100 and VIF of 1,298 < 10.00, it can be concluded that there is no multicollinearity. Data
is said to have no symptoms of multicollinearity if the Tolerance value > 0.100 and the VIF <
10.00. From the table above, the variables in the study did not occur symptoms of multicollinearity.
Figure 5: Heteroskedasticity Test of Malaysian Sharia Stock
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Heteroskedasticity Test
The heteroskedasticity test is a test that can be used to determine whether there is an inequality to
a variant from the residuality of one observation to another. The figure above shows the
Heteroskedasticity test for Malaysian Sharia Stocks. There is no heteroscedasticity, if there is no
clear pattern (wavy, widened or narrowed) in the scatterplot image, and also the dots spread above
and below the number 0 on the Y axis. Looking at the pattern in the figure above, it can be
concluded that the data for Indonesian sharia stocks is free from heteroscedasticity symptoms.
Table 6: Durbin Watson Autocorrelation Test of Malaysian Sharia Stocks
Adjusted R
Std. Error of the
Model
R
R Square
Square
Estimate
Durbin-Watson
1
.491a
.241
.164
7196.89972
1.833
a. Predictors: (Constant), LAG_X4, LAG_X3, LAG_X1, LAG_X2
b. Dependent Variable: LAG_Y
Durbin Watson Autocorrelation Test
For the autocorrelation test we used the Durbin Watson autocorrelation test method. The Durbin
Watson autocorrelation test is one of the mottoes that can be used to detect autocorrelation
problems in research. For the autocorrelation test we used the Durbin Watson autocorrelation test
method. Based on the Durbin Watson autocorrelation test, data used for the study, there were no
symptoms of autocorrelation if the Durbin Watson value was between du and 4-du (du < dw < ((4-
du)). du (1.7234) < dw (1. 882) < 4-du (2.2766), meaning that the data contained no autocorrelation
symptoms.
4. Results and Discussion
Indonesian Sharia Stocks
Table 7: T Test of Indonesia Sharia Stocks
Unstandardized
Coefficients
Standardized
Coefficients
Model
B
Std.
Error
Beta
t
Sig.
Tolerance
VIF
1
(Constant)
12923.922
3382.537
3.821
.000
LAG_X1
-3202.667
1486.198
-.339
-2.155
.037
.787
1.270
LAG_X2
104.276
56.225
.366
1.855
.071
.499
2.004
LAG_X3
47.853
72.314
.093
.662
.512
.980
1.020
LAG_X4
-174.109
84.195
-.386
-2.068
.045
.558
1.794
a. Dependent Variable: LAG_Y
T Test
The T test is used to test hypotheses that have been developed. In the T test, the research variables
were sought whether the variables partially had an influence on the dependent variables. The above
variables include liquidity, profitability, sales growth rates, and dividend policy. It can be seen
from the table above that the effect of LAG_X1 (Liquidity) on LAG_Y (Share Price) that the value
of t < 0.05 and it can be concluded that LAG_X1 (Liquidity) has a significant influence on the
LAG_Y (Share Price). LAG_X2 (Profitability) on the LAG_Y (Share Price) that the value of t >
0.05 and it can be concluded that LAG_X2 (Profitability) does not have a significant influence on
the LAG_Y (Share Price). LAG_X3 (Sales Growth) on the LAG_Y (Share Price) that the value of
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t > 0.05 and it can be concluded that the LAG_X3 (Sales Growth) does not have a significant
influence on the LAG_Y (Share Price). LAG_X4 (Dividend Policy) on the LAG_Y (Share Price)
that the value of t < 0.05 and it can be concluded that the LAG_X4 (Dividend Policy) has a
significant influence on the LAG_Y (Share Price). Of the four variables, liquidity and dividend
policy have a significant influence on stock prices. As for profitability and sales growth, it does
not have a significant influence on the stock price.
Table 8: F Test of Indonesian Sharia Stocks
Model
Sum of Squares
df
Mean Square
F
Sig.
1
Regression
642602516.873
4
160650629.218
3.102
.026b
Residual
2020019255.107
39
51795365.516
Total
2662621771.980
43
a. Dependent Variable: LAG_Y
b. Predictors: (Constant), LAG_X4, LAG_X3, LAG_X1, LAG_X2
Table 9: Percentage of Effect of Simultaneous Data Variables
Adjusted R
Std. Error of the
Model
R
R Square
Square
Estimate
Durbin-Watson
1
.491a
.241
.164
7196.89972
1.833
a. Predictors: (Constant), LAG_X4, LAG_X3, LAG_X1, LAG_X2
b. Dependent Variable: LAG_Y
F Test
The F test is used to test hypotheses that have been developed. Unlike the T test, the F test looks
for whether the independent variables simultaneously have an influence on the dependent
variables. Independent variables are simultaneously expressed to have an influence due to the
value of the Sig. < 0.05 (Sig. 0.026). Variables such as liquidity, profitability, sales growth rate,
and dividend policy have a simultaneous influence on the stock price because the value of Sig. <
0.05. The variables used had a significant percentage of influence of 24.1% and the rest where the
rest were influenced by other variables of 73.9% which were not found in the study.
Malaysian Sharia Stocks
Table 10: T Test of Malaysian Sharia Stocks
Unstandardized
Coefficients
Standardized
Coefficients
Model
B
Std. Error
Beta
t
Sig.
Tolerance
VIF
1
(Constant)
2.042
.521
3.920
.000
LAG_X1
-.613
.559
-.186
-1.097
.278
.683
1.464
LAG_X2
-.009
.010
-.166
-.897
.374
.574
1.741
LAG_X3
-.001
.020
-.004
-.029
.977
.955
1.068
LAG_X4
-.009
.021
-.070
-.439
.663
.770
1.298
a. Dependent Variable: LAG_Y
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T Test
The T test is used to test hypotheses that have been developed. In the T test, the research variables
were sought whether the variables partially had an influence on the dependent variables. The above
variables include liquidity, profitability, sales growth rates, and dividend policy. From the table
above, the effect of LAG_X1 (Liquidity) on the LAG_Y (Share Price) that the value of t > 0.05
and it can be concluded that the LAG_X1 (Liquidity) does not have a significant influence on the
LAG_Y (Share Price). LAG_X2 (Profitability) on the LAG_Y (Share Price) that the value of t >
0.05 and it can be concluded that LAG_X2 (Profitability) does not have a significant influence on
the LAG_Y (Share Price). LAG_X3 (Sales Growth) on the LAG_Y (Share Price) that the value of
t > 0.05 and it can be concluded that the LAG_X3 (Sales Growth) does not have a significant
influence on the LAG_Y (Share Price). LAG_X4 (Dividend Policy) on the LAG_Y (Share Price)
that the value of t > 0.05 and it can be concluded that the LAG_X4 (Dividend Policy) does not
have a significant influence on the LAG_Y (Share Price). Of the four variables, none of them have
a significant effect on Islamic stock prices, profitability, sales growth, and dividend policies.
Malaysia. The variable can be said to have a significant influence when the value of Sig. < 0.05.
Table 11: F Test of Malaysian Sharia Stocks
Model
Sum of Squares
df
Mean Square
F
Sig.
1
Regression
15.912
4
3.978
.545
.704b
Residual
357.771
49
7.301
Total
373.683
53
a. Dependent Variable: LAG_Y
b. Predictors: (Constant), LAG_X4, LAG_X1, LAG_X3, LAG_X2
F Test
The F test is used to test hypotheses that have been developed. Unlike the T test, the F test looks
for whether the independent variables simultaneously have an influence on the dependent
variables. Based on the table above, variables such as liquidity, profitability, sales growth rate, and
dividend policy simultaneously have no significant influence on stock prices due to the value of
Sig. > 0.05 (0.545).
5. Conclusion
This study wants to find out whether variables such as liquidity, profitability, sales growth, and
dividend policy have a significant influence on Islamic stock prices in Indonesia and Malaysia.
Several previous studies have shown that some independent variables in this study have a
significant influence on stock prices. Liquidity reflects the company's financial condition where
the higher the liquidity ratio means that the company is more able to meet obligations in the short
term. Profitability uses Return on Equity (ROE) to reflect a company's ability to make a profit or
profit. Positive sales growth indicates that the company can develop and survive as a business.
Dividend policies such as dividend payout ratio are the amount of the company's revenue
percentage that is divided into investors from the company. These four variables can be a reference
for investors in analyzing stocks so that investors can make investment decisions.
Based on the regression tests we conducted on Indonesian and Malaysian sharia stocks, several
variables in this study show that these variables have a significant influence on stock prices.
Variables such as liquidity and dividend policy showed a significant influence on Indonesia's
sharia stock price, although in this study we found that variables such as liquidity, profitability,
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sales growth, and dividend policy do not have a significant influence on Malaysia's Islamic share
price. This research is expected to be a reference for investors before making investment decisions
for Islamic stocks. Before investing, investors can understand the stock market and understand
what factors can help investors make investment decisions.
6. Acknowledgement
We would like to thank Mr. Mohamad Heykal as our lecturer, for his guidance and suggestion we
were able to complete this research.
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ASSESSING INDONESIAN CONSUMER ADOPTION OF
ELECTRIC VEHICLES USING THE EXTENDED UTAUT2
MODEL
Irfanto N1* and Aprilianty F2
1 2 School of Business and Management, Institut Teknologi Bandung, Bandung, INDONESIA
*Corresponding author: naufal_irfanto@sbm-itb.ac.id
Abstract: The number of users of electric vehicles in Indonesia is still relatively low. This study
aims to create an understanding of why the population of electric vehicles in Indonesia is still low
by assessing the consumer adoption of electric vehicles in Indonesia using all the variables
included in the Unified Theory of Acceptance and Use of Technology 2 Model, also adding several
variables found on the previous study such as Technophilia, Perceived Environmental Knowledge,
Perceived Functional Risk, Perceived Financial Risk, Perceived Time Risk. The study
methodology is based on a quantitative approach to collecting the primary data. The questionnaire
of this study was adapted and developed from previous studies. People who specifically have
experience driving electric vehicles in Indonesia were targeted and resulting 103 people's
questionnaire forms were analyzed. The SEM-PLS was used to conduct some tests to ensure the
data is valid and reliable, and also to test the study hypothesis. Only Performance Expectancy and
Habit had a significant impact on behavioral intention to use electric vehicles. Subsequently, also
only Habit and Behavioral Intention significantly impact the Use Behavior of electric vehicles. It
indicates that the adoption level of electric vehicles in Indonesia is still low. Additionally, the
recommendation was made to boost the adoption rate of electric vehicles in Indonesia by
understanding the significant and insignificant variables tested. Lastly, The UTAUT2 theory will
be used for the future research of adoption of electric vehicles.
Keywords: Electric Vehicles, Consumer Adoption, Behavioral Intention, Use Behavior,
UTAUT2, Indonesia.
1. Introduction
The previous studies showed that common vehicles that still use gasoline fuel have several bad
impacts towards the environment. Joskow et al. (1998) found that one of the largest contributors
and causing the primary second carbon dioxide emissions worldwide is terrestrial transportation,
due to the use of conventional fuel. Electric vehicles are a viable technology for establishing a
sustainable transportation sector in the future (Nanaki, 2021). This pollution can be minimized
because of the use of electricity as the energy source rather than use gasoline. According to Droppa
(2022), worldwide sales of electric vehicles achieved 6.75 million units in 2021, showing growth
of 108% from 2020. This year, sales of electric cars expected to reach approximately 9.5 million
units, after resolving the supply and logistical issues. Knowing the global development trend for
electric vehicles, the Indonesian government took some actions towards the implementation of
policy. The government is committed to promoting the growth of the electric vehicle technology
industry (Aziz et al., 2020). Based on Presidential Decree No. 55/2019 on the Acceleration of the
Battery-Based KBL Program for Road Transportation, the development of electric or battery-
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powered cars may be accelerated by offering incentives to the automotive industry. The adoption
process of technology has influenced and constructed by several variables to understand the user
intention of using new technology as what Venkatesh et al. (2003) and Venkatesh et al. (2012)
establish in their study. The framework model is therefore known as the Unified Theory of
Acceptance (UTAUT) model. In this case, electric vehicles are considered as new technology
adopted by the customer. The importance of using UTAUT Model is due to Venkatesh’s model
includes demographic, also experience factors built into it, making it more ideal for product-
oriented research in the business-to-customer sector (Chang, 2012).
2. Literature Review
Below is the previous study that related with this study topic area that state the objective, measures,
and the findings.
Table 1: Journal Matrix of Previous Study
Title
Objective
Measures
Research Findings
(Venkatesh, V., Thong, J.,
& Xu, X. 2012)
Consumer Acceptance and
Use of Information
Technology: Extending the
Unified Theory of
Acceptance and Use of
Technology
The purpose of
this research is
to investigate
the adoption and
utilization of
technology in
consumer
perspective
● Performance
Expectancy, Effort
Expectancy, Social
Influence, Facilitating
Condition, Hedonic
Motivation, Price
Value, Habit,
Behavioral Intention,
Use Behavior
● Compared to the original
UTAUT theory, the variance
explained has increased
significantly.
● Age, gender, and experience
moderate habit.
● With an increased experience,
the impact of behavioral
intention on usage will diminish.
● All the variables developed in
UTAUT has significantly impact
the behavioral intention and the
actual usage
(Gunawan, I., Redi, A.,
Santosa, A., Maghfiroh,
M., Pandyaswargo, A., &
Kurniawan, A. 2022)
Determinants of Customer
Intentions to Use Electric
Vehicle in Indonesia: An
Integrated Model Analysis
Predict interest
in electric
vehicles
adoption in
Indonesia, using
integrated
model perceived
risk, TPB, and
UTAUT2
● Attitude Towards
Use, Subjective
Norm, Perceived
Behavior Control
●Performance
Expectancy, Effort
Expectancy, Hedonic
Motivation, Price
Value, Habit
● Perceived Physical,
Performance,
Financial, Social, and
Time Risk
● Attitudes towards the use of
electric vehicles
is positively impacted by price
value, effort expectancy,
hedonic motivation, and
performance expectancy
● Attitudes towards the use of
electric vehicles is positively
impacted by habit at an
insignificant level
(Abbasi, H., Johl, S.,
Shaari, Z., Moughal, W.,
Mazhar, M., Musarat, M.,
Rafiq, W., Farooqi, A., &
Borovkov, A. 2021)
Consumer Motivation by
Using Unified Theory of
Acceptance and Use of
Technology towards
Electric Vehicles
To evaluate
consumer
motivation and
environmental
knowledge
towards electric
vehicles by
using the
UTAUT model
● Performance
Expectancy, Effort
Expectancy, Social
Influence
● Technophilia
● Perceived
Environmental
Knowledge
● Consumer intention is not
significantly influenced by
performance expectancy.
● Consumer intention is
positively and significantly
influenced by the effort
expectancy, social influence,
technophilia, perceived
environmental knowledge
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2.1 Problem Statement
For its operating purposes, the government expects to have 132,983 electric automobiles and
398,530 electric motorbikes by 2030 (Shofa, 2022). It has potential to reduce fuel consumption by
6 million kilo liters per year and reduce greenhouse gas emissions by 7.23 million tons of CO2
(Pribadi, 2021). The electric vehicle population in Indonesia, however, is still low (Shofa, 2022).
According to the Transportation Ministry, it estimated that Indonesia only had 14,400 electric
vehicles as of mid-November 2021. There were 12,464 electric motorbikes and 1,656 electric
passenger cars among the total. When compared to the current sales of electric cars in Indonesia
up to 2021, which are only 1900 electric cars, this target requires extraordinary efforts to actualize.
Director General of ILMATE, Taufiek Bawazier, who is charge in the ministry of industry in
Indonesia, said that currently the uptake of electric cars in Indonesia is still far from expectations.
Knowing the difficulties of how consumers would new technology, in this case is how to accept
the electric vehicle, Venkatesh et al. (2012) established the UTAUT2 model, which is one of the
most extensively used models to better understand the intention of the adoption process of new
technology. This primary research result is expected to be classified into the process of customer
adoption towards the electric vehicle and establish the best strategy for the development of the
automotive industry electric vehicle in Indonesia to overcome the problem that might affect the
customer's intention to use an electric vehicle.
3. Method
Electric vehicles adoption in Indonesia needs to be identified in the beginning. Subsequently, the
literature review and research methodology will also be employed, followed by quantitative
approach, and survey. Lastly, there will be discussion based on the findings.
3.1 Materials
A quantitative technique is used to finish the study, which entails completing a survey in order to
collect data. Below the technique and method of data collection will be explained.
3.1.1 Samples
The respondent will be both male and female participants of any age. This study will collect data
for minimum 100 respondents. The characteristic of the respondent will be people who domiciled
in Indonesia and have experience for driving electric vehicles.
3.1.2 Site
This research targeted the respondents who live in Indonesia, specifically live in the big city that
has a high chance for the respondents experiencing driving electric vehicles.
3.1.3 Procedures
Quantitative analysis, as defined by Aliaga and Gunderson (2002), will be employed since it is
appropriate for the goal of this study. The survey also will be used as the research approach since
it suits with Jackson (2009) explanation. Due to its potential to collect vast volumes of data in a
relatively short length of time, an online questionnaire is determined to be the ideal instrument for
collecting the data needed to complete this research. Judgemental sampling will be implemented
in order to offer the details.
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Figure 1: Conceptual Framework of the Modified UTAUT2 Model
• Performance Expectancy (PE)
According to Venkatesh et al. (2003), It has been continuously expected as the most significant
aspect of behavioral intention, and performance expectation is defined as the extent to which the
adoption of a technology will assist customers in accomplishing particular activities. Other
research that has used UTAUT as the foundation theory to explain the adoption of electric vehicles
have revealed that the variable has a significant influence on behavioral intention (Venkatesh, et
al., 2012; Gunawan et al., 2022) Based on the findings of this study, the following hypothesis will
be developed:
H1: Performance expectancy has a significant influence on behavioral intention to use electric
vehicles in Indonesia
• Effort Expectancy (EE)
Venkatesh et al., (2003) explained that effort expectation is the degree to which a user expects a
product to be easy to use. Venkatesh et al., (2012) discovered that the output of the effort
expectation in the UTAUT2 had a substantial effect on behavioral intention. Furthermore,
Gunawan et al., (2022) found that effort expectancy had an influence on behavioral intention in
their study on adoption of electric vehicles uptake. Based on the findings of this study, the
following hypothesis will be developed:
H2: Effort expectancy has a significant influence on behavioral intention to use electric vehicles
in Indonesia
• Social Influence (SI)
Social influence was described by Venkatesh et al., (2003) as the extent to which an individual
believes it is vital for them to accept the new system. Based on the findings of the study by
Venkatesh et al. (2003), social influence has a considerable impact on behavioral intention. Other
research that has used UTAUT2 as the foundation theory to explain the adoption of electric
vehicles indicated that the variable has a significant influence on behavioral intention (Venkatesh,
et al., 2012). Based on the findings of this study, the following hypothesis will be developed:
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H3: Social influence has a significant influence on behavioral intention to use electric vehicles in
Indonesia.
• Facilitating Condition (FC)
According to Venkatesh et al., (2003), facilitating condition is a person's notion that the necessary
organizational and technological infrastructure is already in place to make system utilization more
straightforward. Other research that has used UTAUT2 as the foundation theory to explain the
adoption of electric vehicles have found that facilitating has a significant influence on behavioral
intention (Venkatesh, et al., 2012). Based on the findings of this study, the following hypothesis
will be developed:
H4a: Facilitating condition has a significant influence on behavioral intention to use electric
vehicles in Indonesia.
H4b: Facilitating condition has a significant influence on the use behavior of electric vehicles use
in Indonesia.
• Hedonic Motivation (HM)
Venkatesh et al., (2012) defined hedonic motivation as the enjoyment of customers or pleasure in
utilizing technology. Venkatesh et al., (2012) and Gunawan et al., (2022) discovered that hedonic
motivation has an influence on behavioral intention in their studies of electric vehicles adoption
uptake. Based on the findings of this study, the following hypothesis will be developed:
H5: Hedonic motivation has a significant influence on behavioral intention of electric vehicles use
in Indonesia.
• Price Value (PV)
Pricing value is termed as the cognitive compensation between the projected advantages and the
expense of employing the technology (Venkatesh et al., 2012). Several researchers have
discovered that price value influences or has a considerable impact on behavioral intention
(Venkatesh, et al., 2012; Gunawan et al., 2022). Based on the findings of this study, the following
hypothesis will be developed:
H6: Price value has a significant influence on behavioral intention to use electric vehicles in
Indonesia.
• Habit (HA)
Habit, as described by Venkatesh et al., (2012), is the degree to which people tend to do things as
a result of learning. Additionally, habit is related to both behavioral intention and use behavior, In
the other studies, Gunawan et al., (2022) found that habit had an influence on behavioral intention
in their study on adoption of electric vehicles uptake. Based on the findings of this study, the
following hypothesis will be developed:
H7a: Habit has a significant influence on behavioral intention to use electric vehicles in Indonesia.
H7b: Habit has a significant influence on the use behavior of electric vehicles use in Indonesia
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• Moderating Factors
o Gender
Gender, as defined by the World Health Organization, refers to the roles, attitudes, activities,
qualities, and opportunities that any culture believes appropriate for boy and girl or man and
woman. Gender was believed to have a moderating effect on various connections between the
components in the UTAUT model by Venkatesh et al. (2003) research.
o Age
According to Venkatesh et al. (2003), age is a measurement of an individual's development that is
expressed in terms of the number of years necessary for the growth of an average individual. It
was shown that age had impacts that moderated the numerous interactions that took place inside
the construct in UTAUT.
o Experience
According to Venkatesh et al. (2012), the capacity to use the specified technology signified by the
length of experience and is often operationally defined as the passage of time from an individual's
first usage of technology. Simply described, it is the process of improving one's ability to use
technology through time.
H8a: Age, gender, and experience duration are moderating variable between the relationship of
facilitating condition and behavioral intention
H8b: Age, gender, and experience duration are moderating variable between the relationship of
hedonic motivation and behavior intention
H8c: Age and gender are moderating variable between the relationship of price value and
behavioral intention
H8d: Age, gender, and experience are moderating variable between the relationship of habit and
behavioral intention
H8e: Age, gender, and experience duration are moderating variable between the relationship of
habit and use behavior
H8f: Experience duration is moderating variable between the relationship of behavioral intention
and use behavior
• Technophilia (TEC)
Osiceanu (2015) explains that technophilia is characterized as a strong attraction to and curiosity
with new technology. Consumers who are tech-savvy and wary of new items are more likely to
have intention to buy (Egbue & Long, 2012). Numerous researches have demonstrated that
technophilia has a significant influence on the behavioral intention for the adoption of electric
vehicles (Abbasi et al., 2021). Based on the findings of this study, the following hypothesis will
be developed:
H10: Technophilia has a significant influence on behavioral intention to use electric vehicles in
Indonesia
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• Perceived Environmental Knowledge (PEK)
Arcury and Johnson (2012) explain that Perceived Environmental Knowledge refers to a person's
knowledge of an environment, ecosystem, and the influence of human actions on the environment.
Customer interest in purchasing environmentally friendly items is considerably increased by
perceived environmental knowledge, therefore, enhanced environmental understanding extends
customer consumption habits (Rashid, 2009). In the case of adoption of electric vehicles, many
studies have shown that perceived environmental knowledge has significantly influenced the
behavioral intention (Abbasi et al., 2021). Based on the findings of this study, the following
hypothesis will be developed:
H11: Perceived environmental knowledge has a significant influence on behavioral intention to
use electric vehicles in Indonesia
• Perceived Functional Risk (PFR)
The perception that product innovations may not work optimally after going through the testing
phase increases the functional risk, which deals with performance uncertainty (Ram & Sheth,
1989). Gunawan et al., (2022) found that Perceived Functional Risk has a negative impact on
attitudes towards the use of electric vehicles. As a result, the following hypothesis was chosen for
this study:
H12: Perceived Functional Risk has a significant influence on behavioral intention to use electric
vehicles in Indonesia
• Perceived Financial Risk (PFN)
Financial risk is the likelihood that customers will incur losses as a result of paying more than is
necessary to receive the product (Murphy & Enis, 1986). Gunawan et al. (2022) found that
Perceived Financial Risk has a negative has a negative impact on attitudes towards the use of
electric vehicles. As a result, the following hypothesis was chosen for this study:
H13: Perceived Financial Risk has a significant influence on behavioral intention to use electric
vehicles in Indonesia
• Perceived Time Risk (PTR)
Perceived time risk is to determine lost time by the individuals, to ineffectively try to make people
uncomfortable as they decide whether to purchase or adopt certain goods and services. (Mitchell,
1992). Gunawan et al. (2022) found that Perceived Time Risk has a negative impact on attitudes
towards the use of electric vehicles. As a result, the following hypothesis was chosen for this study:
H14: Perceived Time Risk has a significant influence on behavioral intention to use electric
vehicles in Indonesia.
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3.2 Measurement
The questionnaire is divided into three sections as explained below:
● A Likert scale of 1 to 5 will be used to evaluate any additional variables or constructs (with 1
disagree and 5 denoting agree).
● The demographic part will be evaluated by filling out the researcher's options.
● The behavioral component will be assessed in two ways: some respondents will fill out the
section based on choices suggested by the researcher, while others will fill out the section freely.
3.3 Data Analysis
Partial Least Square (PLS) will be used in the study's structural equation modeling (SEM) to
minimize the explained variation within an endogenous component as what Fornell and Bookstein
(1982) explained.
3.3.1 Validity and Reliability
In order to calculate the indicator dependability coefficient, Wong (2013) states that each outside
load can be squared. A value of 0.7 or above is preferred. Fornell and Lacker (1982) explain that
the square root of the average variance extracted (AVE) counts for each latent construct must be
greater than the correlation coefficients between the latent variables (0.5 or higher) to pass the
discriminating validity test, while both tests must pass for the average variance extracted (AVE)
counts to pass the convergent validity test. All the data gathered is pass the validity and reliability
test.
4. Results and Discussion
• Performance Expectancy towards Behavioral Intention
H1 is acceptable since performance expectation was determined by this research's calculations to
have a significant influence on behavioral intention of adopting electric vehicles in Indonesia.
Performance expectancy has the largest significant impact on behavioral intention, according to
the findings, which are in line with those of prior research by Venkatesh et al. (2012) and Gunawan
et al. (2022). This implies that people who use electric vehicles place a high value on their electric
vehicles’ capacity to help users increase their productivity. This happens due to the performance
expectancy concerns the expectations of electric vehicles users for their performance and future
status in the context of transportation usage.
• Effort Expectancy towards Behavioral Intention
H2 is unacceptable since effort expectancy was determined by this research’s calculation to have
an insignificant influence on behavioral intention of adopting electric vehicles in Indonesia. The
outcome conflicts with those of studies by Venkatesh et al. (2012) and Gunawan et al. (2022) that
explain the adoption of electric vehicles have found that social influence has a significant influence
towards behavioral intention. This shows that while adopting electric vehicles, customers do not
take the convenience of utilizing the electric vehicles itself. This happens due to the fraught
complications as what Anfinsen (2019) explain, such the distance that an electric vehicle can go
on a single charge that electric vehicles’ user might consider that utilizing an electric vehicle in
not easy as gasoline vehicles.
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• Social Influence towards Behavioral Intention
H3 is unacceptable since social influence was determined by this research’s calculation to have an
insignificant influence on behavioral intention of adopting electric vehicles in Indonesia. The
outcome conflicts with those of studies by Venkatesh et al. (2012) that explain the adoption of
electric vehicles have found that social influence has a significant influence towards behavioral
intention. This implies that the decision for using electric vehicles is a personal decision. This
happens due to the number of electric vehicles users in Indonesia still relatively small so that the
power of influence to each other also still low.
• Facilitating Condition towards Behavioral Intention and Use Behavior
H4a and H4b is unacceptable since facilitation condition was determined by this research’s
calculation to have an insignificant influence on behavioral intentions also on use behavior of
adopting electric vehicles in Indonesia. The outcome conflicts with those of studies by Venkatesh
et al. (2012) that explain the adoption of electric vehicles have found that facilitating condition
has a significant influence towards behavioral intention and also use behavior. This suggests that
the majority of users did not possess any necessary technological knowledge and assistance, also
they lack or fail to seek assistance from other users when they run into problems when utilizing
electric vehicles. This happens due to the lack of the infrastructure to support the development of
electric vehicles in Indonesia, especially lack of the charging stations (Maulia, 2022).
• Hedonic Motivation towards Behavioral Intention
H5 is unacceptable since hedonic motivation was determined by this research’s calculation to have
an insignificant influence on behavioral intention of adopting electric vehicles in Indonesia. The
outcome conflicts with those of studies by Venkatesh et al. (2012) and Gunawan et al. (2022) that
explain the adoption of electric vehicles have found that hedonic motivation has a significant
influence towards behavioral intention. This suggests that the enjoyment or delight that users
derive from using the electric vehicles do not play a significant role in their decision to embrace
electric vehicles. This happens due to the same feeling of driving an electric vehicle compared
with gasoline vehicles. The drivers do not need to pick up any new abilities to drive
(EfficiencyMaine, 2022).
• Price Value towards Behavioral Intention
H6 is unacceptable since price value was determined by this research’s calculation to have an
insignificant influence on behavioral intention of adopting electric vehicles in Indonesia. The
outcome conflicts with those of studies by Venkatesh et al. (2012) and Gunawan et al. (2022) that
explain the adoption of electric vehicles have found that price value has a significant influence
towards behavioral intention. This suggests that when selecting electric vehicles, people do not
weigh the trade-off between the benefits of electric vehicles and the costs associated with using
them. This happens due to the high price of the electric vehicles itself as what Alsamydai and
Yousif (2019) explain, so that people consider that the value of electric vehicles usage is not worth
the price compared to the gasoline vehicles. For Indonesia market itself, the price of electric
vehicles is considered as high (Rahadiansyah, 2021).
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• Habit towards Behavioral Intention and Use Behavior
H7a and H8a is acceptable since habit was determined by this research's calculations to have a
significant influence on behavioral intentions and also on use behavior of adopting electric vehicles
in Indonesia. In earlier research by Venkatesh et al. (2012) and Gunawan et al. (2022), habit was
discovered to have a considerable influence on behavioral intention and use behavior. The results
are consistent with those findings. This suggests that a user is more likely to accept and utilize
electric vehicles the more people use and become familiar with the system. This happens because
of the advanced technology of electric vehicles such dynamic acceleration and regenerative
braking that electric vehicle users may experience continuously when the more using electric
vehicles (RenaultGroup, 2020).
• Moderating Factors
Among the other hypotheses, only H8f is acceptable since experience duration was determined by
this research’s calculation to moderate the relationship between behavioral intention and use
behavior. The outcome conflicts with the study by Venkatesh et al. (2012) that explains age,
gender, and experience duration will moderate the relationship between facilitating condition,
hedonic motivation, price value, and habit with behavioral intention and use behavior. In addition,
H8c and H8e are partially accepted through one of its indicators. Specifically, age is acceptable
for becoming moderating variable between the relationship of price value and behavioral intention,
and also gender is acceptable for becoming moderating variable between the relationship of habit
and behavioral intention.
• Behavioral Intention towards Use Behavior
H9 is acceptable since behavioral intention was determined by this research's calculations to have
a significant influence on use behavior and also on use behavior of adopting electric vehicles in
Indonesia. In earlier research by Venkatesh et al. (2012) and Gunawan et al. (2022), behavioral
intention was discovered to have a considerable influence on use behavior. This suggests that the
factors in this study's analysis that were connected to behavioral intention alone were sufficient to
promote users' adoption of the electric vehicles. This happens due to the more intention that people
must use electric vehicles, the more people start and often to use electric vehicles.
• Technophilia towards Behavioral Intention
H10 is unacceptable since technophilia was determined by this research’s calculation to have an
insignificant influence on behavioral intention of adopting electric vehicles in Indonesia. The
outcome conflicts with those of studies by Abbasi et al. (2021) that explain the adoption of electric
vehicles have found that technophilia has a significant influence towards behavioral intention. This
suggests that when selecting electric vehicles, people have a lack of attraction and curiosity about
electric vehicles as a new technology. This happens due to the lack presence of supporting
ecosystem for electric vehicles in Indonesia (Kharisma, 2022).
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• Perceived Environmental Knowledge towards Behavioral Intention
H11 is unacceptable since perceived environmental knowledge was determined by this research’s
calculation to have an insignificant influence on behavioral intention of adopting electric vehicles
in Indonesia. The outcome conflicts with those of studies by Abbasi et al. (2021) that explain the
adoption of electric vehicles have found that perceived environmental knowledge has a significant
influence towards behavioral intention. This suggests that when selecting electric vehicles, people
have a lack of understanding regarding the green environment. This happens because Indonesian
people has lack awareness related to environmental sustainability, specifically due to the
dependence on fossil energy (Andika, 2022).
• Perceived Functional Risk towards Behavioral Intention
H11 is unacceptable since perceived functional risk was determined by this research’s calculation
to have an insignificant influence on behavioral intention of adopting electric vehicles in
Indonesia. The outcome conflicts by Gunawan et al. (2022) that explain the adoption of electric
vehicles have found that perceived functional risk has no significant influence on the attitude
towards use of electric vehicles in Indonesia. This suggests that when people try to utilize electric
vehicles, they believe that the electric vehicles will work ineffectively. This happens due the
battery issue regarding the battery performance such, the battery life cycle that electric vehicles
users might suffers (Kh, 2022).
• Perceived Financial Risk towards Behavioral Intention
H12 is unacceptable since perceived financial risk was determined by this research’s calculation
to have an insignificant influence on behavioral intention of adopting electric vehicles in
Indonesia. The outcome conflicts by Gunawan et al. (2022) that explain the adoption of electric
vehicles have found that perceived financial risk has no significant influence on the attitude
towards use of electric vehicles in Indonesia. This suggests that when people try to utilize electric
vehicles, they believe that they will incur losses because of paying more than is necessary to
receive electric vehicles. This happens due to the post-sale which is still unclear what will happen
in the future that might affect the economic value for the buyer (Anshori, 2022).
• Perceived Time Risk towards Behavioral Intention
H13 is unacceptable since perceived time risk was determined by this research’s calculation to
have an insignificant influence on behavioral intention of adopting electric vehicles in Indonesia.
The outcome conflicts by Gunawan et al. (2022) that explain the adoption of electric vehicles have
found that perceived time risk has no significant influence on the attitude towards use of electric
vehicles in Indonesia. This suggests that when people try to utilize electric vehicles, they believe
that they will lose their time. This happens due to the risk of electric vehicles users might suffer,
as what Anfinsen (2019) explain, such the duration of the charging time
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5. Conclusion
The goals of this to use the extended UTAUT2 model to analyze the adoption of electric vehicles
in Indonesia, to determine whether the recently added factors to the model have a significant
impact on that adoption, and to provide recommendations for electric vehicles that will help
Indonesia adopt it more quickly. Through the use of the SEM-PLS approach was used in this
study's analysis of the data. According to this study, it turns out that only 2 out of 12 indicators
that significantly impact the behavioral intention to use electric vehicles in Indonesia, that are
performance expectancy and habit. Additionally, habit and behavioral intention also have an
impact on the use behavior of electric vehicles in Indonesia. Effort expectancy, social influence,
facilitating condition, hedonic motivation, price value, habit, technophilia, perceived
environmental knowledge, perceived functional risk, perceived financial risk, and perceived time
risk are the variables not significantly impacting the behavioral intention to use electric vehicles
in Indonesia. Therefore, it can be concluded that the consumer adoption of electric vehicles in
Indonesia is still low due to the high number of rejected variables in this study that influence the
intention to use and the actual use of electric vehicles in Indonesia.
6. Acknowledgement
First and foremost, I want to express my gratitude to Allah SWT for providing me with the best
chance and direction. Additionally, to who have contributed to my development over the past three
incredible years. They are my nuclear family, my mother and father, my sister and my brother-in-
law, my unborn nephew. To mention all my extended family. Also Mrs. Fitri Aprilianty as my
supervisor. To add, my Hegar Asih friend, Hilal, Jawul, Fito, Fikri. Also, Technische Hogeschool
friends. Also, Matthew Alan and Diana Marchella.
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BAGAIMANAKAH BERMAIN AKTIF BOLEH MEMBANTU
PERKEMBANGAN KANAK-KANAK MUDA?
(HOW ACTIVE PLAY HELP YOUNG CHILDREN'S
DEVELOPMENT?)
Rosny Maidin1*
1 Fakulti Pendidikan, Universiti Kebangsaan Malaysia, Bangi, MALAYSIA
*Pengarang penghubung: alen_esmaryjune@yahoo.com
Abstrak: Istilah bermain aktif telah digunakan untuk menggalakkan peningkatan tahap
penggunaan aktiviti fizikal. Ini kerana, bagi kanak-kanak aktiviti fizikal dicapai dalam bentuk
tingkah laku bermain aktif. Bermain bagi kanak-kanak muda tidak memerlukan garis panduan
dalam permainan. Namun untuk membangunkan perkembangan kanak-kanak, memerlukan satu
pendekatan yang selari dengan fitrah semula jadi mereka yang suka bermain. Oleh itu, satu kajian
telah dijalankan bagi mengkaji bagaimana bermain aktif boleh membantu perkembangan kanak-
kanak muda. Objektif kajian ini adalah untuk merungkai teras bermain aktif bagaimana yang
boleh membangunkan dan memberi manfaat terhadap aspek perkembangan kanak-kanak. Kajian
ini menggunakan pendekatan kualitatif melalui kaedah kajian kes jenis penerokaan. Penglibatan
peserta kajian dalam kajian ini adalah seramai 10 orang kanak-kanak muda berusia dua hingga
enam tahun, juga disertai 10 orang kalangan ibu bapa kanak-kanak tersebut. Instrumen yang
digunakan dalam pemungutan data meliputi instrumen temu bual, pemerhatian, serta analisis
dokumen. Kemudian, data dianalisis menggunakan Kaedah Perbandingan Berterusan (Glaser &
Strauss 1967) berpandukan tema kajian iaitu apakah permainan aktif boleh membantu
perkembangan kanak-kanak muda? Hasil dapatan menunjukkan permainan akitf membantu
memperbaiki dan membangunkan perkembangan kanak-kanak dari segi memupuk perkembangan
kognitif, fizikal, bahasa, sosial, emosi dan tingkah laku serta pemikiran abstrak. Penemuan ini
membawa kepada kepentingan persekitaran dan permainan sosial yang semula jadi menjadikan
kanak-kanak aktif bermain sekaligus mempelajari tentang dunia persekitaran dan diri mereka
sendiri. Implikasi kajian ini dapat membantu ibu bapa, guru, pengasuh taska, pengamal kurikulum
pendidikan awal kanak-kanak, serta masyarakat setempat agar lebih peka terhadap fitrah kanak-
kanak iaitu bermain sebagai tujuan membangunkan aspek perkembangan diri untuk pertumbuhan
yang sihat.
Kata kunci: permainan bebas, bermain aktif, membangunkan perkembangan.
1. Pengenalan
Dalam dunia yang dijadualkan padat, keperluan untuk bermain bagi kanak-kanak menjadi terbatas.
Kadang-kala kanak-kanak bukannya tidak dibenarkan untuk bermain namun banyak faktor yang
menjadi penghalang yang tidak mampu dikawal oleh sebahagian manusia. Pada masa yang sama,
keperluan bermain bagi kanak-kanak juga kurang dipandang serius oleh orang dewasa. Bermain
adalah penting untuk membangun perkembangan kanak-kanak kerana ia menyumbang kepada
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kesejahteraan kognitif, fizikal, sosial dan emosi kanak secara optimum. NAEYC, (2009)
menghuraikan bermain ialah laluan penting untuk membangunkan peraturan kendiri serta untuk
menggalakkan bahasa, kognisi dan kecekapan sosial. Bermain memberi kanak-kanak peluang
untuk mengembangkan kecekapan fizikal dan keseronokan di luar, pemahaman dan memahami
dunia mereka, berinteraksi dengan orang lain, meluahkan dan mengawal emosi, mengembangkan
kebolehan simbolik dan penyelesaian masalah, dan mengamalkan kemahiran yang baru. Faedah
bermain adalah meluas dan melangkaui keuntungan kesihatan daripada aktiviti fizikal kanak-
kanak. Malah kepentingan bermain untuk perkembangan kanak-kanak telah diiktiraf oleh
Suruhanjaya Tinggi Hak Asasi Manusia Pertubuhan Bangsa-Bangsa Bersatu (PBB) sebagai hak
asasi setiap kanak-kanak (NAEYC, 2003). Bermain aktif bermaksud permainan dipilih secara
bebas, diarahkan secara peribadi, bermotivasi secara intrinsik, spontan dan menyeronokan
(Brockman, 2011). Bermain secara aktif tidak memerlukan garis panduan, atau sebarang peraturan
yang mengkehendak kanak-kanak mengikuti peraturan dalam permainan tersebut. Model
Highscope, (2003) mengungkap bermain secara aktif adalah manfaat yang besar dalam
pembelajaran aktif kerana semasa kanak-kanak bermain aktif-pembelajaran aktif turut berlaku
sekaligus memupuk perkembangan aspek kognitif dan sosialisasi kanak-kanak. Keadaan ini
menyokong fitrah kanak-kanak yang mempunyai daya tarikan intuitif yang kuat (Piaget & Inhelder
1969). Selain daripad itu, bermain juga menawarkan peluang yang sesuai untuk ibu bapa
melibatkan diri sepenuhnya dengan anak-anak mereka. Sebagaimana yang dijelaskan oleh (Cai,
2022), penglibatan bermain yang disertai orang dewasa membolehkan permainan menjadi aktif,
menarik minat kanak-kanak turut serta, kepelbagaian pembelajaran dapat diteroka, penyampaian
pembelajaran secara tidak langsung, dan jalinan hubungan erat antara anak dan Ibu bapa. Bagi
perspektif Vygotsky (1989), bermain aktif menjadikan permainan kanak-kanak menjadi aktif
kerana ia bersandarkan persekitaran sosial yang semula jadi berdasarkan sosiosejarah-sosiobudaya
manusia sebenar. Oleh itu, objektif kajian ini adalah bagaimana bermain aktif boleh membantu
perkembangan kanak-kanak muda.
2. Kajian Lepas
2.1 Bermain Aktif
Bermain aktif adalah penting untuk membangunkan kemahiran sosial, emosi, kognitif dan fizikal
dalam kalangan kanak-kanak. Menurut Brockman, (2011), bermain aktif mengembangkan
kemahiran sosial kanak-kanak, merangsang imaginasi dan menjadikan kanak-kanak lebih
menyesuaikan diri, lebih bijak dan kurang tertekan. Manakala NAEYC, (2009) menjelaskan
bermain aktif tercetus apabila kanak-kanak dalam aktiviti yang menyeronokkan, melalui
permainan bebas, atau sedang dalam meneroka dan menyelesaikan sesuatu permainan. Semasa
bermain aktif, kanak-kanak membentuk perhubungan dengan rakan sebaya mereka, memperoleh
keyakinan terhadap kebolehan mereka, belajar untuk meluahkan emosi, dan membangunkan
"motivasi penguasaan" yang akan memberikan mereka keinginan dalaman untuk menguasai
kemahiran baru. Orang dewasa boleh menyokong perkara ini dengan menyediakan cabaran fizikal
yang menyeronokkan yang sesuai untuk kebolehan kanak-kanak, dengan memberi pilihan kepada
kanak-kanak tentang cara mereka bergerak dan bermain, dan menyediakan peluang untuk kanak-
kanak mengamalkan peraturan kendiri melalui permainan fizikal (Loebach et al. 2021). Selain
membantu perkembangan kanak-kanak, bermain aktif juga boleh merapatkan dan mengeratkan
ikatan ibu bapa dan anak yang akan kekal seumur hidup (Cai, 2022; NAEYC, 2009). Ikatan
hubungan yang baik perlu dimulai daripada Ibu bapa dengan meluangkan masa bermain aktif
dengan kanak-kanak dan perlu konsisten. Jangan biarkan kanak-kanak menunggu masa bermain
tetapi tetapkan rutin bermain aktif setiap hari dan pelbagaikan corak bermain aktif. Rutin bermain
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mampu mengajar kanak-kanak tentang kesabaran, memantapkan aspek komunikasi kanak-kanak,
meningkatkan fungsi minda, merangsang minda dan meingkatkan kreativiti, meningkatkan dan
mengembangkan kemahiran sosial, mengajar tentang erti kerjasama, serta mematangkan emosi
(IPA, 1977).
3. Masalah Kajian
Isu kajian ini membincangkan pemasalahan di kalangan orang dewasa yang kurang memahami
istilah bermain aktif kanak-kanak. Kekurangan pengetahuan berkaitan istilah aktif kanak-kanak
bermain mengakibatkan orang dewasa kerap melarang kanak-kanak bermain, membataskan
permainan, memarahi kanak-kanak yang bermain secara aktif atau agresif, serta adakalanya
berlaku tindakan kekerasan terhadap kanak-kanak sebagai suatu solusi mendiamkan kanak-kanak
yang sedang bermain (Cai, 2022; Catalano, 2018; NAEYC, 2009). Di samping itu, isu ini juga
berkaitan dengan ciri bermain kanak-kanak mempunyai maksud mendalam yang boleh dikaitkan
dengan faktor emosi yang kurang stabil dalam diri kanak-kanak serta peniruan tingkah laku yang
kurang baik. Misalnya kajian daripada National Association for the Education of Young Children
(NAEYC), (2009) mengungkap bahawa kanak-kanak yang agresif dalam bermain merupakan
perasaan yang kuat dihadapi oleh kanak-kanak sebagai sebahagian daripada pertumbuhan dan
pembelajaran ini termasuklah isu kekecewaan, kemarahan, ketakutan, kesunyian, kekeliruan dan
sebarang emosi yang bermasalah yang timbul dan tidak didengari atau diluahkan sepenuhnya
boleh bertukar menjadi keagresifan. Kenyataan daripada International Play Association (IPA),
(1997) dan kajian Loebach et al. (2021) turut menyokong dimana orang dewasa yang kerap
memarahi kanak-kanak bermain mempunyai ketidakstabilan emosi disebabkan masalah yang
sedang dihadapi menyebabkan tindakan memarahi dan melarang kanak-kanak bermain. Malah
Brockman et al. (2011) dan Sandseter et al. (2020) turut menyatakan apabila kanak-kanak tidak
mempunyai ruang untuk bermain, mereka akan lebih fleksibel bermain di tempat yang dirasakan
menyeronokan untuk bermain, (misalnya ruang dapur, sofa, dan tempat-tempat yang tidak
sepatutnya) situasi ini boleh menyebabkan orang dewasa akan memarahi disertai dengan tindakan
kekerasan misalnya memukul dan sebagainya. Menurut kajian daripada Loebach et al. (2021)
tindakan negatif melarang kanak-kanak bermain adalah disebabkan mereka tidak mengetahui
manfaat bermain terhadap perkembangan kanak-kanak. Tindakan ini boleh membataskan
pergerakan kanak-kanak untuk meneroka permainan, dan tindakan ini secara tidak langsung
memindahkan ilmu asuhan yang kurang baik sehingga mereka menjadi pasif, kurang keyakinan,
takut bersosial dan menjadikan mereka seorang kanak-kanak yang pendiam (Ginsburg, (2007);
NAEYC, 2009). Isu terhadap larangan kanak-kanak bermain, permainan yang mempunyai garis
panduan, penguasaan peraturan, mengehadkan waktu bermain, serta kandungan permainan yang
dihadkan, menyebabkan kawalan bermain bagi kanak-kanak tanpa sedar yang dilakukan oleh
orang dewasa dan akhirnya menjurus terhadap kurangnya manfaat bermain yang didorongi oleh
diri kanak-kanak (Cai, 2022; Pakarinen et al. 2020; NAEYC, 2009; IPA, 1997). Sehubungan itu,
kajian ini wajar dilaksanakan bagi membuka minda orang dewasa berkaitan dengan kepentingan
dan manfaat yang positif daripada tindakan bermain aktif di kalangan kanak-kanak muda.
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4. Metodologi
Kajian ini menggunakan reka bentuk kualitatif menerusi kaedah kajian kes penerokaan. Kajian kes
penerokaan dilakukan berpandukan objektif kajian sebagai tema kajian iaitu Tema 1:
Bagaimanakah bermain aktif boleh membantu perkembangan kanak-kanak muda? Tema ini akan
disoal berdasarkan teknik penyoalan kajian; i) Apakah manfaat bermain aktif terhadap
perkembangan kanak-kanak? ii) Apakah bermain aktif membantu membangunkan perkembangan
kanak-kanak? Melalui teknik penyukilan soalan, kes ini dapat dirungkai dengan mendalam
sehingga mencapai tahap ketepuan. Tema ini diteroka menerusi aktiviti bermain aktif kanak-kanak
menggunakan pemerhatian secara langsung selama 30-40 minit. Penerokaan pemerhatian bermain
aktif kanak-kanak ini diteroka secara berulang sebanyak 10 kali selama 3 bulan. Kanak-kanak
bebas memilih permainan mereka, fokus pengkaji hanya meneroka bermain aktif kanak-kanak
berpandukan struktur pemerhatian Merriam & Tisdell (2016) bahagian (iii) aktiviti. Kemudian,
tema ini juga dirungkai melalui temu bual bersama informan dengan mengambil masa selama 30
minit dan temu bual bersama kanak-kanak adalah selama 15 minit mengikut laras bahasa mereka
agar ianya mudah difahami. Gambar foto, rakaman video pemerhatian, audio temu bual, transkrip
temu bual merupakan analisis dokumen digunakan sebagai data yang menyokong instrumen temu
bual dan pemerhatian. Kajian ini telah dijalankan di Seremban 2 Negeri Sembilan.
4.1 Peserta Kajian dan Tetapan (setting)
Kajian ini melibatkan peserta kajian utama di kalangan kanak-kanak berumur 2-6 tahun. Peserta
kajian ini turut melibatkan 10 orang Ibu bapa kepada kanak-kanak yang terlibat dalam sesi temu
bual. Penglibatan Ibu bapa sebagai peserta kajian adalah berdasarkan informan yang memberi
maklumat berkaitan iaitu Bagaimanakah permainan aktif boleh membantu perkembangan kanak-
kanak muda? Oleh itu, secara keseluruhan peserta kajian dalam kajian ini adalah seramai 20 orang
[10 kanak-kanak-pK; 10 Ibu bapa-PKi]. Penggunaan istilah “orang dewasa” dalam kajian ini
adalah merujuk kepada informan Ibu Bapa serta sebagai tujuan penerangan kajian berkaitan
bermain aktif kanak-kanak bersama dalam likungan orang dewasa.
4.2 Penganalisisan Data
Data dianalisis menggunakan kaedah perbandingan berterusan daripada Glaser dan Strauss (1967).
Kebaikan menggunakan kaedah ini melibatkan perbandingan elemen yang terdapat dalam satu
sumber data dengan sumber data yang lain. Proses ini berterusan sehingga kandungan semua
sumber telah dibandingkan supaya persamaan dikenal pasti serta jawapan kepada objektif kajian
benar-benar tepat. Dalam proses ini, analisis akan berarah melalui induktif ke deduktif (khusus-
umum) diterokai dengan lebih mendalam sehingga mencapai tahap ketepuan. Terdapat 5 peringkat
yang perlu dilalui pengkaji dalam melakukan analisis iaitu peringkat i) pengurusan data-pengkaji
membentuk fail setiap dapatan (3 instrumen yang digunakan). Peringkat ii) pengkaji memindahkan
data temu bual ke bentuk transkrip. Peringkat iii) pengkaji melakukan analisis temu bual daripada
transkrip, kemudian pengkaji membuka kod/outline, serta pengkaji menyelaraskan sumber
pemerhatian dan dokumen disatukan. Peringkat iv) pengkaji membina kategori yang signifikan
terhadap kod. Peringkat v) pengkaji membentuk tema dengan memilih kategori sebagai tema,
membina tema yang signifikan serta membina subtema dengan maksud yang signifikan dengan
tema. Berikut adalah dapatan kajian yang dihuraikan bersama dengan perbincangan.
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5. Dapatan dan Perbincangan Kajian
Dapatan kajian dihuraikan menerusi persoalan tema kes. Tema 1: Bagaimanakah bermain aktif
boleh membantu perkembangan kanak-kanak muda? Hasil penemuan kajian menunjukkan
bermain aktif membantu perkembangan kanak-kanak muda daripada aspek perkembangan
kognitif, perkembangan fizikal, perkembangan bahasa, perkembangan emosi dan tingkah laku,
serta perkembangan sosial.
5.1 Perkembangan Kognitif
5.1.1 Tingkatkan Keupayaan Kognitif
Perkembangan kognitif merujuk kepada keupayaan kanak-kanak untuk berfikir dan menggunakan
akal. Piaget (1969) menjelaskan bahawa kecerdasan kanak-kanak sentiasa mengalami perubahan
pengetahuan dan perubahan tersebut didasari oleh pembelajaran persekitaran yang dilalui oleh
kanak-kanak. Melalui bermain aktif, kanak-kanak membangunkan kebolehan pengetahuan dan
membina minda mereka dari peringkat umur ke peringkat umur seterusnya (Piaget & Inhelder
1969). Ini menandakan minda kanak-kanak sentiasa berkembang pada kadar yang lebih cepat
untuk menguasai sesuatu kemahiran apatahlagi diberikan peluang meneroka permainan aktif
dengan lebih awal kerana kanak-kanak mempunyai memori ingatan yang sangat kukuh. Melalui
kekuatan ini, kanak-kanak memperoleh kemahiran memberi perhatian, menaakul, mengingati
perkara yang telah mereka lakukan ketika bermain, serta kemahiran motor kasar dan motor halus.
Menurut (Loebach et al. 2021) salah satu cara terbaik untuk merangsang perkembangan otak dan
memupuk keupayaan kognitif kanak-kanak adalah melalui aktiviti bermain aktif sambil mereka
meneroka objek dan ruang fizikal yang dipandu oleh bahasa komunikasi. Menurut Vygotsky,
(1989) dengan memilih permainan, memfokuskan pada aktiviti tersebut, dan melihatnya hingga
ke penghujungnya, adalah elemen penting dalam kawalan kognitif, dan membantu mempertajam
kemahiran perancangan dan memfokuskan perhatian mereka. Keupayaan kognitif melibatkan
proses pemikiran, penyelesaian masalah dan interaksi dengan orang lain (Vygotsky, 1989). Kanak-
kanak mempelajari kemahiran ini dengan melakukan dan bermain adalah cara yang paling
berkesan untuk membangunkan kemahiran kognitif (Model HighScope, 2003). Sebagaimana
dapatan kajian menjelaskan keupayaan kognitif kanak-kanak;
(T1: i) L:3-4)” bila budak-budak kuat main ni dorang sebenarnya bijak, otak dorang sentiasa berhubung,
selagi dorang main selagi itulah budak aktif berfikir”.. ” pernah alami tak bila kanak-kanak bermain ada
suara-suara cakap nakal budak tu..atau ada kanak-kanak ni dia buat ini buat itu, tak duduk diam lepas tu mesti
budak tu dilabel nakal? Bagi saya nakal tu bermaksud bijak, banyak akal banyak berfikir banyak guna
pemikiran.” (T1: ii) L: 24-28)
” berfikir makna bagi kanak-kanak dan orang dewasa ni adalah berbeza. Kanak-kanak perlu bising perlu
bercakap perlu bermain perlu membuat perlu menadakan otak atau minda dorang sedang bekerja, sedang
menyelesaikan tindakan. Tetapi bagi orang dewasa untuk menyelesaikan sesuatu perkara tingkah laku mereka
perlu diam tetapi otak mereka sedang berfikir. Itu bezanya, jadi kita sebagai parents.kena faham dan tahu
bahawa kanak-kanak bermain aktif mengembangkan pemikiran kognitif mereka. Kalau kita larang dorang
bermain bermakna kita melarang mereka menggunakan pemikiran…” (T1: i/ii) L:9-15)
Respon di atas menjelaskan apabila kanak-kanak berhadapan dengan masalah semasa bermain, ia
menguji penaakulan dan pertimbangan mereka, dan keupayaan mereka untuk mencari
penyelesaian. Ia juga selari dengan hasil pemerhatian pengkaji di mana kanak-kanak yang bermain
aktif menunjukkan kebolehan dalam menyelesaikan konflik apabila ada diantara rakan mereka
yang bertengkar. Maka, Hal ini secara tidak langsung membantu mengukuhkan kemahiran berfikir
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kritis kanak-kanak. Perkembangan ini juga boleh merujuk kepada perubahan dalam asimilasi dan
akomodasi, di mana kanak-kanak menyesuaikan diri dengan pengalaman, konsep dan
keseimbangan baharu (Piaget & Inhelder 1969).
Selain itu, keupayaan kognitif kanak-kanak turut membangunkan pemikiran abstrak mereka.
Dalam hal ini, bermain aktif membolehkan kanak-kanak mencapai kecekapan berimaginasi
seterusnya meningkatkan pemikiran abstrak dengan usia lebih awal. Misalnya hasil dapatan kajian
menunjukkan di rumah kanak-kanak yang berumur 2-3 tahun bermain blok menggunakan alat
permainan. Namun apabila mereka berada di pantai dan bermain pasir, kanak-kanak membina blok
pasir sehingga membentuk sebuah rumah. Seterusnya, hasil pemerhatian kanak-kanak bermain
doh, didapati kanak-kanak menguli doh menggunakan alat permainan seperti alat peniup belon
dan seruling, kemudian membentuk biskut, donut, bebola/ bola kecil dan aiskrim pelbagai corak.
Permainan doh kanak-kanak awal usia ini dipandu oleh imaginasi yang kuat hasil dari imej konkrit
dikuasai oleh skema ingatan di mana mereka pernah memiliki setiap doh yang telah dihasilkan.
Selain itu, hasil pemerhatian pada kanak-kanak berumur 4-6 tahun semasa mereka bermain lompat
getah dan getah terputus. Terdapat kanak-kanak yang menyambung getah tersebut dengan cara
menggulung ikatan lalu mengikatnya, kemudian permainan diteruskan. Seterusnya, hasil
pemerhatian kepada kanak-kanak yang bermain peranan (main doktor-pesakit, dan play dolls).
Maka, semua tindakan permainan ini menjelaskan kecekapan dalam berimaginasi, kanak-kanak
bebas dan mencipta dunia sendiri sekaligus membina kekuatan imaginasi dan kreativiti, mengikuti
imaginasi dan mengeluarkannya dalam bentuk perbuatan bermain. Sebagaimana Piaget (Piaget &
Inhelder 1969), mengatakan pemikiran abstrak adalah keupayaan berfikir tentang idea dan situasi
abstrak, dan Vygotsky (1989) menambah tahap tertinggi pemikiran abstrak dan pengawalan
kendiri dalam pemupukan permainan pura-pura adalah menggunakan penggantian objek. Justeru,
imaginasi kanak-kanak memandu kepada pemikiran abstrak yang menyerlahkan imej, idea dan
konsep dari dalam fikiran mereka, kemudian berlaku penyusunan semula, aktiviti minda yang
menyusun dan menyambung semula dengan cara yang lebih baharu sehingga mereka mampu
mencipta bentuk permainan mereka sendiri.
5.2 Perkembangan Fizikal
5.2.1 Tingkatkan Kemahiran Fizikal
Permainan fizikal adalah salah satu aspek yang paling diingati pada zaman kanak-kanak. Menerusi
permainan aktif, anggota fizikal kanak-kanak turut sama membangun dan memperoleh kebolehan
dalam motor halus dan juga motor kasar kanak-kanak. Hasil pemerhatian pengkaji mendapati,
kanak-kanak yang melibatkan diri dalam bermain aktif memperoleh kekuatan koordinasi,
imbangan, kemahiran motor kasar dan kemahiran motor halus. Brockman et al. (2011)
berpendapat, permainan fizikal membantu kanak-kanak membina hubungan antara sel saraf dan
otak. Apabila hubungan ini berkembang, kanak-kanak bukan sahaja mencapai kesihatan yang baik,
malah kemahiran motor halus dan kasar kanak-kanak, sosialisasi, kesedaran peribadi, bahasa,
kreativiti dan penyelesaian masalah bertambah baik. Oleh itu, bermain aktif merupakan salah satu
cara membangunkan perkembangan fizikal kanak-kanak dengan lebih sihat secara menyeluruh.
Melalui bermain aktif, kanak-kanak pada usia yang sangat awal berpeluang menghubungkan
persekitaran dan fizikal dalam membangunkan perkembangan anggota tubuh yang sihat. Misalnya
dapatan temu bual dibawah menjelaskan;
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LANGKAWI, Malaysia
7 August, 2022
eISBN: 978-967-2963-33-2
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”saya tak larang anak saya main, dari kecik saya galakkan dia main. Setiap permainan tu berbeza ikut
peringkat umur la.. mana boleh sama jer kan. Dia kena teroka permainan yang berbeza supaya dia bukan
sahaja dapat pengetahuan melalui penerokaan tu tapi badan pun sama sihat dan cergas..” (T1:ii) L:9-12)
Kajian daripada NAECY, (2003) Loebach et al. (2021) dan Sandseter et al. (2020) telah
menunjukkan bahawa kanak-kanak yang aktif fizikal cenderung menjadi lebih kurus dan lebih
sihat, manakala zaman kanak-kanak yang tidak aktif boleh membawa kepada gaya hidup yang
tidak aktif pada masa dewasa. Selain itu, permainan fizikal membantu kanak-kanak menyimpan
tenaga semula jadi dan menggalakkan tabiat makan dan tidur yang lebih baik (Brockman et al,
2011). Melalui kehebatan bermain aktif, ibu bapa dapat menggalakkan tabiat sihat yang boleh
dilakukan oleh kanak-kanak sehingga dewasa. Sebagaimana dapatan temu bual berikut;
”kalau mak ayah kontrol anak-anak bermain susah lah dia nak jadi cergas. Kalau budak tu kuat makan kita
kena seimbangkan dia bersukan. Tapi bagi kanak-kanak kecil bersukan kurang sesuai, so kita kena lepaskan
mereka bermain dengan aktif yang seratus peratus menggunakan anggota tubuh. Bukan sekedar bahagian
tangan je tetapi keseluruhan. Mungkin bermain kejar-kejar, bermain pasing2, dan banyak lagi..” (T1: i) L:20-
25)
5.3 Perkembangan Bahasa
5.3.1 Tingkatkan Kemahiran Komunikasi
Penguasaan bahasa adalah menyeluruh sama ada lisan mahu pun bertulis. Kesukaran kanak-kanak
memahami bahasa komunikasi boleh diperbaiki dengan hanya melibatkan diri dalam permainan
aktif. Ini kerana, bermain aktif adalah dipandukan oleh aspek interaksi antara mereka, orang
dewasa, mahu pun interaksi arahan diri sendiri. Sebagaimana hasil pemerhatian pengkaji pada
kanak-kanak berumur 2-3 tahun (tingkah laku kanak-kanak bermain aktif daripada bantuan ibu
bapa, dan rakan sebaya mereka melalui respon interaksi aktif) misalnya cooking plays atau play
dolls; bagi kanak-kanak yang berumur 4, 5 dan 6 tahun (keaktifan mereka dalam bermain
dipandukan oleh interaksi antara ahli kumpulan dan inti pati permainan yang mereka mainkan.
Kajian lepas menunjukkan melalui bermain aktif kanak-kanak awal 2 tahun akan mempelajari pra-
literasi bahasa awal melalui interaksi bersama ibu bapa, kemudian meningkat kepada ayat mudah;
kemudian beransur meningkat pada usia 3 tahun dengan menguasai penggunaan ayat interaksi dan
mengetahui lebih banyak perkataan; dan terus berkembang mengikut pola umur 4-6 tahun dimana
pada umur tersebut lingkungan permainan kanak-kanak akan semakin membesar, maka fitrah
kanak-kanak yang suka bermain akan lebih menyerlah dan aspek komunikasi turut dikuasai
(Pakarinen et al. 2020; NAEYC, 2009). Sebagaimana hasil temu bual semua peserta kajian
berpendapat sama yang mana bermain aktif boleh mengajar kanak-kanak tentang perbualan
interaksi, perkataan baru, komunikasi lebih jelas, dan melatih kanak-kanak tentang bahasa literasi
awal. Berikut respon kanak-kanak berumur 4, 5 dan 6 tahun mengatakan mereka banyak bercakap,
mesti bercakap kalau nak bermain”.
Hasil dapatan bagi kanak-kanak yang berumur 2-3 tahun menjelaskan bahawa bermain aktif telah
menunjukkan perubahan dan penguasaan pada aspek bahasa mereka dengan lebih pantas
(menyebut, bercakap, bertanya, penggunaan ayat diri, arahan, dan cerita, nyanyian, dan
permintaan). Melalui kepantasan ini, perkembangan bahasa kanak-kanak usia awal akan terus
meningkat selagi mana mereka didedahkan dengan permainan situasi aktif. Berikut respon
daripada informan;
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Economics, Education and Technology 2022
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7 August, 2022
eISBN: 978-967-2963-33-2
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(TI: ii) L:8-12) ”Dengan bermain kanak-kanak dapat belajar bercakap dengan pantas. Cara guna ayat boleh
mereka adjust sendiri, hari-hari dorang akan bermain maka hari- hari itulah budak-budak ni akan belajar
bercakap, kita nak ajar anak bercakap ni kena melalui bermain sama-sama dengan dorang, sebab budak ni
kadang dorang tak nak bercakap, tak nak respon, tapi kalau kita ajak main ahh kat situlah dorang semua ni
aktif bercakap”..”macam anak saya. Dia pendiam tapi apabila bermain, permainan tu yang mendorong dia
bercakap. Contohnya main dolls, jual beli, berlakon…daripada pendiam tu lama-lama tingkah laku dia akan
berubah dimana bukan bermain sahaja dia bercakap, hari-hari tanpa bermain pun dah mula aktif bercakap,
banyak tanya dan bercerita..” (T1: i) L:16-19)
Melalui repson temu bual di atas, kanak-kanak yang bermain misalnya sosio drama, main peranan,
dan sebagainya bahasa komunikasi mereka seiring berkembang, dan ini menandakan kanak-kanak
tidak memerlukan sukatan pembelajaran khas tentang aspek bahasa komunikasi, kerana
kandungan permainan mereka secara semula jadi tersedia, hanya perlu untuk digali. Hal ini
bertepatan dengan teori Vygotsky (1989), beliau mengatakan bagaimana kanak-kanak menguasai
aspek bahasa mereka adalah melalui bermain yang mempunyai isi semula jadi ini termasuklah role
and acts, permainan yang mendorong kanak-kanak mengikuti peraturan dalam permainan, serta
permainan yang berteraskan sosiobudaya manusia misalnya kehidupan kanak-kanak itu sendiri.
Justeru, jelaslah bahawa bermain aktif mampu meningkatkan aspek komunikasi kanak-kanak
melalui situasi menggunakan perkataan yang mereka dengar daripada orang dewasa dan kanak-
kanak lain. Hal ini sekaligus mengembangkan kemahiran penguasaan bahasa kanak-kanak.
5.4 Perkembangan Emosi dan Tingkah Laku
5.4.1 Ekspresikan Emosi
Keajaiban bermain memberi kanak-kanak kuasa untuk menghapuskan perkara daripada senario
pura-pura mereka yang menakutkan mereka, dan mereka boleh melakonkan perkara yang dilarang
dengan selamat. Semasa bermain, kanak-kanak belajar untuk mengendalikan emosi mereka,
termasuk kemarahan dan ketakutan, mencipta dunia khayalan, watak dan plot yang sepadan
dengan keadaan emosi, serta meluahkan dan mengawal perasaan diri. Menurut NAECY, (2003)
melalui bermain, kanak-kanak belajar untuk mengatasi emosi semasa melakonkan emosi
ketakutan, kekecewaan, kemarahan dan pencerobohan dalam situasi yang mereka kawal, memberi
peluang untuk kanak-kanak mengamalkan empati dan pemahaman, serta memberi kanak-kanak
rasa pencapaian dan kepuasan, membina keyakinan dan persepsi diri kanak-kanak. Oleh itu,
sebagai orang dewasa apabila bermain bersama kanak-kanak, orang dewasa akan terlibat dalam
corak tingkah laku yang sama yang membentuk minda kanak-kanak secara positif. Antara hasil
pemerhatian emosi yang diluahkan oleh kanak-kanak termasuklah -keseronokan, gembira, ketawa,
suka, menghargai, menangis, takut, marah, merajuk, sedih, malu, kecewa, teruja, gementar,
bimbang, cemburu. Pakarinen et al. (2020) dan Vygotsky, (1989) menerangkan faedah bermain
aktif membangunkan perkembangan emosi yang berada dalam konteks permainan sosial dan
terbimbing dimana kanak-kanak belajar peraturan kendiri kerana mereka mengikut norma dan
memberi perhatian sambil mengalami perasaan seperti jangkaan atau kekecewaan. Oleh itu, hasil
pemerhatian selari dengan dapatan temu bual daripada informan yang dijelaskan seperti berikut;
”pertumbuhan emosi yang sihat dalam diri kanak-kanak apabila mereka dapat membina keyakinan diri dan
menjaga harga diri, mengalami pelbagai emosi, dan melepaskan emosi daripada trauma”..”anak saya nak
marah, saya akan ajar cara kawal kemarahan, anak saya nangis saya ajar dia kenal sebab kenapa dia nak
nangis, saya slowkan tangisan, tanya, dan ajar anak settelkan masalah yang buat dia nangis..macam ada satu
masa anak saya tiba-tiba ketakutan sampai dia menangis, rupanya dia tengah main “hantu-hantu”, so kat
sana kita as a parents kena ajar hati kena kuat kalau nak main hantu-hantu dan bagi faham kat dorang itu
hanya bermain”..(T1:i) L: 21-27)…
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”kanak-kanak main bebas, apa yang mereka suka main mereka akan main. Saya lebih suka anak-anak pilih
permainan daripada terikat dengan peraturan bermain. Bila mereka sendiri yang pilih dan bermain, mereka
dapat meluahkan perasaan emosi sama ada ekstrem atau sederhana. Dari situ kanak-kanak akan kenal sikap
diri sendiri dan cuba untuk berubah”..(T1: ii) L: 24-19)
Dapatan di atas mngungkap bermain bebas boleh menstabilkan emosi kanak-kanak dengan cara
meluahkan emosi dan perasaan mereka dan membantu mereka mengembangkan rasa siapa
mereka, peluang kepada kanak-kanak untuk mengalami dan meluahkan emosi seperti
kegembiraan, kekecewaan, marah, sedih, takut dan sebagainya. Pentingnya pertumbuhan emosi
yang sihat bagi kanak-kanak adalah untuk perkembangan kemahiran sosial yang sihat dimana
kanak-kanak keupayaan untuk membangunkan hubungan positif dengan rakan sebaya, mereka
belajar untuk bergaul antara satu sama lain melalui hubungan yang baik, kekuatan sikap
bekerjasama, berinteraksi secara berkesan, serta memudahkan penyelesaian masalah dan konflik
dalam bermain. Vygotsky, (1989) menjelaskan bermain aktif dalam situasi menyokong peraturan
emosi kanak-kanak dengan cara kanak-kanak melakonkan pengalaman emosi, dan menyatakan
kedua-dua perasaan positif dan negatif serta menyepadukan emosi dengan kognisi. Malah
NAEYC, (2009) turut menyatakan bermain dramatik mampu mengasah ketahanan mental kanak-
kanak kerana mereka melakonkan pelbagai watak dan peranan dalam sesuatu permainan tersebut.
Oleh itu, pembelajaran pemahaman emosi bagi kanak-kanak sekaligus membawa kepada
perubahan tingkah laku yang lebih baik.
5.5 Perkembangan Sosial
5.5.1 Tingkatkan Kemahiran Sosial
Bermain aktif adalah penting untuk perkembangan sosial kanak-kanak. Kanak-kanak yang sering
menyertai sesuatu permainan dengan aktif lebih mahir dalam bersosialisasi, bijak mengawal diri,
mudah bekerjasama, bertimbang rasa, mesra dan mempunyai kecekapan sosial yang lebih tinggi.
Hal ini telah dibuktikan daripada hasil pemerhatian pengkaji di mana kanak-kanak muda usia 2-3
tahun mula mengenali fasa berkawan dengan umur sebaya mereka (bermain bersama), dan
semakin kerap bermain bersama semakin mudah mereka bekerjasama dalam bermain. Bagi kanak-
kanak umur 4, 5, dan 6 tahun sosial bermain mereka lebih berarah kepada tolak ansur, bersahabat,
memahami kekurangan, memberi motivasi, gemar memberi bantuan dan bersedia menerima
penyertaan ahli. Mereka juga mempamerkan tingkah laku sosial yang baik, mudah menyesuaikan
diri dan ramah dalam berinteraksi. Pakarinen et al. (2020), mengatakan penyertaan kanak-kanak
yang ramai dalam permainan bermakna kanak-kanak dapat melihat isyarat sosial, mendengar dan
mengambil perspektif orang lain (aspek utama untuk membangunkan empati). Pernyataan ini
menerangkan permainan sosial memerlukan kanak-kanak berkongsi idea dan meluahkan perasaan
semasa berunding dan mencapai kompromi. Hal ini selari dengan dapatan temu bual bersama
kanak-kanak dan respon daripada informan;
..pK berumur 4, 5, 6,: “dapat ramai kawan, sama-sama main, mula-mula tak nak kawan, lama-lama tu dah
jadi kawan. Nanti kitaorang nak main lagi. Best..”
.10-pKi: “kanak-kanak yang sering bermain bersama dengan kanak-kanak lain, mereka akan mendapat social
skills. Macam mana nak tengok skill tu? ahh kita tengok anak kita kalau dorang tengah main tak ada bergaduh,
atau boleh atasi sedikit salah faham ahh itu social skill la tu.. sama juga dengan kerjasama..”
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Berdasarkan kenyataan di atas, ianya selari dengan dapatan Feleihi et al. (2022) yang menjelaskan
bermain aktif membantu kanak-kanak mengasah kemahiran sosial kanak-kanak sambil
memikirkan cara untuk berunding tentang dinamik kumpulan. Ia membantu kanak-kanak belajar
cara bekerjasama dan berbincang dengan rakan lain, mengenali dan bertindak balas terhadap
perasaan, berkongsi, menunjukkan kasih sayang, menyelesaikan konflik dan mematuhi peraturan.
Pelajaran awal yang penting ini membantu kanak-kanak memahami peranan dan peraturan
bermasyarakat. Maka, hubungan yang dibina melalui sosial yang sihat pada peringkat awal kanak-
kanak boleh memberi kesan positif kepada kemahiran akademik dan sosial-emosi kanak-kanak
seterusnya kesejahteraan dan perkembangan kanak-kanak (NAEYC, (2009). Oleh itu, melalui
bermain aktif kanak-kanak boleh membina hubungan yang boleh dipercayai antara mereka mahu
pun bersama orang dewasa. Misalnya kajian Pakarinen et al. (2020) mengatakan untuk membina
hubungan positif dengan orang lain, kanak-kanak perlu membangunkan kecekapan sosial dan
keupayaan untuk berinteraksi dengan orang lain dengan penuh perhatian, empati dan rasa hormat.
Kecekapan sosial adalah asas yang membolehkan kanak-kanak memahami dan mengawal emosi
mereka sendiri dan merundingkan interaksi mereka dengan orang lain. Berikut adalah respon temu
bual daripada informan;
(T1:i) L:2-26) ”kalau kanak-kanak bermain berkumpulan besar, mereka dapat mempelajari cara berkawan
dalam permainan yang mereka sertai. Semakin aktif bermain, semakin menyeronokan bagi mereka dan
semakin mereka mempelajari asas jalinan hubungan tanpa mereka sedari. Kalau nak tengok kesan tu tengok
selepas tamat mereka main, confirm dorang ni akan mesra. Itu tanda dorang sudah berkawan”. ”sebagai ibu,
kita faham keinginan anak untuk bermain, ada masa saya biarkan anak bermain, ada masa saya tak benarkan.
Bukan saya nak melarang saya tahu bermain ini bagus untuk perkembangan anak. Tapi kadang-kadang apa
yang mereka main ni buat saya marah contohnya melompat di sofa tu, atau berselerak..”..” saya okay je
budak-budak main, tapi kalau dah terlalu bising lagi-lagi mood saya tak okay ahh siaplaa ada laa gula-
gulanya tu..” (T1:ii) L30-34)
(T1: i) L: 15-18) ”cara kita nak rapat dengan anak-anak ni adalah melalui permainan. Kita sebagai orang tua
perlu ada masa bermain bersama anak kita. Daripada bermain, kita dapat ajar anak kita contohnya kalau
mereka banyak tanya, kita ajar satu persatu cara bertanya dan menjawab jawapan”.. ”kalau kita sebagai
parents ni, nak bina hubungan erat dengan anak-anak senang saja, bawa dorang main, join dorang main,
main ikut cara budak-budak. Kita kena jadi budak la..semasa bermain tu pun kena aktif bercakap, bagi respon,
bertanya semua kena aktif supaya budak-budak bukan sekedar bermain kosong tapi ada benefitnya..”(T1:ii)
L 27-30)
”Nak bagi anak main biar dia main. Ikut suka dia nak main apa. Kita sebagai ibu bapa just pantau keselamatan
dan tengok apa kanak-kanak tu main. Kalau positif kita galakkan sebab itu pengetahuan. Tapi kalau sampai
nak bertumbuk, nak tendang tu ahh kena larang la. Larang tu bukan just cakap “jangan main macam tu atau
tak boleh” tapi kita kena bagi sebab kenapa kita larang anak-anak bermain macam tu.., misalnya kita tegur
anak kita“aadlyn tak boleh main tendang nanti sakit kaki tak boleh nak berjalan, ini satu permainan tak baik..”
(T1:ii) L 21-27)
Dapatan temu bual diatas telah merungkai bermain aktif dapat membina hubungan yang baik
antara kanak-kanak dan berkesan untuk membina hubungan yang kukuh bersama ibu bapa. Jalinan
hubungan yang sihat boleh meningkatkan rasa berharga dan memiliki serta membantu diri berasa
kurang bersendirian NAEYC, (2009). Oleh itu, kanak-kanak membesar tidak merasakan sendirian
kerana mereka dilengkapi dengan teman bermain yang dapat membina hubungan lebih sejahtera.
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6. Rumusan
Hasil kajian ini telah merungkai bahawa bermain aktif boleh membantu perkembangan kanak-
kanak muda daripada aspek perkembangan kognitif, perkembangan fizikal, perkembangan bahasa,
perkembangan emosi dan tingkah laku, serta perkembangan sosial. Ini bermakna, kanak-kanak
hanya memerlukan tindakan bermain aktif untuk memupuk perkembangan diri. Oleh itu, bermain
aktif kanak-kanak adalah suatu jalan untuk menuju pembangunan perkembangan dan pertumbuhan
yang sihat. Maka, dengan sewajarnya orang dewasa perlu memberi lebih banyak masa dan peluang
kepada kanak-kanak untuk bermain kerana bermain boleh membahagiakan kanak-kanak,
menjadikan mereka lebih produktif dan bermoral, menyediakan minda untuk pembelajaran akan
datang, serta memaksimumkan peluang kanak-kanak menjadi ahli masyarakat yang bahagia dan
sihat. Rungkaian pengetahuan ini bukan sahaja tertumpu kepada Ibu bapa tetapi juga penyebaran
pengetahuan dalam kalangan guru, pengasuh taska, dan masyarakat setempat kerana lingkungan
persekitaran kehidupan dan perkembangan kanak-kanak berada pada ekosistem ekologi tersebut.
Ringkasnya, kajian ini diharapkan dapat membuka minda kepada semua lapisan masyarakat
bahawa bermain aktif membantu memupuk perkembangan kanak-kanak.
7. Penghargaan
Pengkaji ingin merakamkan penghargaan dan ucapan terima kasih kepada semua peserta kajian
yang terlibat dalam kajian ini, komuniti setempat atas kebenaran dalam menjalankan sesi
pemerhatian, dan juga reviewers untuk pengulasan yang berkesan dalam memperbaiki manuskrip
kajian ini.
Rujukan
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Barriers and Facilitators. BMC Public Health 2011, 11:461.
Brockman, R., Fox, K, R., & Jago, R. (2011). What is the Meaning and Nature of Active Play for
Today’s Children in the UK? International Journal of Behavioral Nutrition and Physical
Activity 2011, 8(15), 1-7.
Cai, Zhiqi. (2022). The HighScope Curriculum Support for Early Childhood Development-Take
Active Learning in Young Children as an Example. Atlantis Press. 631:
Doi:10.2991/assehr.k.220205.260.
Catalano, R. (2018). The important of free play in early childhood and primary school education:
Critical Analysis for Romania. Educational Research Applications 2018 (2).
Doi:10.29011/2575-7032/100050.
Feleihi, S., Abedanzadeh, R., & Saemi, E. (2022). Let them play the effect of active play on motor
proficiency and social maturing of children. Journal of Early Child Development and Care,
Taylor & Francis. Doi.org/10.1080/03004430.2022.2074981.
Ginsburg, K, R. (2007). The Importance of Play in Promoting Healthy Child Development and
Maintaining Strong Parent-Child Bonds. American Academy Of Pediatrics. 119 (1), 182-191
Glaser, B, G., & Strauss, A. 1967. The Discovery of Grounded Theory: Strategies for Qualitative
Research. Chicago: Aldine.
HighScope Educational Research Foundation. (2003). The Preschool Child Observation Record
(2nd ed.). Ypsilanti, MI: HighScope Press.
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International Play Association. 1977. The IPA Declaration of the Child’s Right to Play.
http://ipaworld.org/childs-rightto-play/the-childs-right-to-play.
Loebach., J, Sanches., M, Jaffe., J, & Marshall., T, E. (2021). Paving the Way for Outdoor Play:
Examining Socio-Environmental Barriers to Community-Based Outdoor Play. International
Environment Research Public Health. 18 (7): 3617.
Merriam, S. B., & Tisdell. E. (2016). Qualitative research: A guide to design and implementation
(4th ed). San Francisco, CA: Jossey-Bass.
National Association for the Education of Young Children. (2009). Play and Develomentally
Appriopriate Practice. Street NW: Washington.
NAEYC. 2009. Developmentally Appropriate Practice in Early Childhood Programs Serving
Children From Birth Through Age 8. Position statement. www.naeyc.org/files/
naeyc/file/positions/PSDAP.pdf.
NAEYC and the National Association of Early Childhood Specialists in State Departments of
Education (NAECS/ SDE). 2003. Early Childhood Curriculum, Assessment, and Program
Evaluation. Joint position statement. www.naeyc. org/files/naeyc/file/positions/pscape.pdf.
Ozturk, Y., & Ozer, Z. (2021). Outdoor Play Activities and Outdoor Environment of Early
Childhood Education in Turkey: a Qualitative Meta-Synthesis. Journal of Early Child
Development and Care, Taylor & Francis. Doi.org/10.1080/03004430.2021.1932865.
Pakarinen, A., Hautala, L., Hamari, L., Aromaa, M., Kallio, H., Liuksila, P, R., Sillanpaa, M., &
Salantera, S. (2020). The Association Between the Preference for Active Play and
Neurological Development in Toddlers: A Register-Based Study. International Journal of
Environmental Research and Public Health,17: 2525.
Piaget, J., & Inhelder, B. (1969). The psychology of the child. New York, NY: Basic Books.
Sandseter, E, B., Storli, R., & Sando, O, J. (2020). The Dynamic Relationship Between Outdoor
Environments and Children’s Play. International Journal of Primary, Elementary and Early
Years Education, Taylor & Francis. 50(1), 97-110.
Vygotsky, L. (1989). Thought and language. Cambridge, MA: MIT Press.
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FACTORS DRIVING CONSUMER’S WILLINGNESS TO SHARE
PERSONAL DATA ON SOCIAL MEDIA PLATFORM
Hilali Fahrian1*
1 School of Business and Management, Institut Teknologi Bandung, Bandung, INDONESIA
*Corresponding author: hilali_fahrian@sbm-itb.ac.id
Abstract: Factors driving consumer willingness to share personal data have been extensively
discussed by journals, but there are gaps in the literature that exist in terms of the research area,
research location, and variables discussed. Prior evidence reveals that consumers are still in a
vague state where they tend to be sensitive and concerned about their privacy, but on the other
hand they are also willing to share their personal data privacy (privacy paradox). On the other
hand, social media platforms are also threatened by reputational damage and financial loss when
they utilize consumers' personal data carelessly. In this research the author will examine which
factors from the variables of privacy calculus (perceived benefits, perceived privacy control,
perceived risk, perceived fairness, emotions, and bounded rationality) that have an influence on
consumer willingness to share personal data on social media platforms, according to previous
research. With these factors as consumer willingness dimensions, this study aims to resolve the
privacy paradox by examining the factors driving consumer willingness to share personal data on
social media platforms, as well as its effect on social media platforms itself and give
recommendations to them. This research employs a quantitative methodology, using an online
survey technique. Respondents who were involved in this study are 223 respondents. Those data
were analyzed by the PLS-SEM method using the Smart-PLS application. In this research findings
reveal that only perceived privacy control, perceived risk, perceived fairness, and bounded
rationality have significant effect on the consumer willingness to share personal data on social
media platforms. This research will contribute to filling in research gaps and expands our
knowledge of the factors driving consumer willingness to share personal data on social media
platforms with the outcomes achieved.
.
Keywords: Personal Data, Willingness, Social Media, Privacy Paradox, Privacy Calculus.
1. Introduction
Before digging further into personal data issue, it is necessary to identify and comprehend the
commercial proof of the value and significance of customer personal data. Today, client privacy
in the form of personal data, personal preferences, political interests, etc. is very susceptible to
being misappropriated as a commodity by a business. The significance of privacy as a commodity
in this context is that the personal data of the consumer may be used as valuable business resources
since the data can provide organizations with information for marketing or campaign content and
choices that can greatly affect their product sales. (Hargittai et al., 2008). Therefore, it is important
to discuss this topic about willingness of consumer to share personal data.
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2. Literature Review
Privacy Paradox
While users express grave anxiety about losing their privacy in the digital world, they seldom
defend themselves and are neither discrete nor cautious with their personal data on the Internet this
phenomenon is well-known as privacy paradox (Hargittai, 2010; Kowalewski et al., 2015; Lahlou,
2008). In this research, the author will use privacy calculus to determine the factors that affect
consumer willingness to share personal data.
Privacy Calculus
Privacy calculus is a risk-benefit analysis that takes into consideration inhibitors and drivers that
impact the choice to release information and personal data concurrently (Culnan & Bies, 2003).
When selecting whether or not to publish their personal information, individuals always undertake
a straightforward risk-benefit analysis utilizing generic factors (Laufer & Wolfe, 1977). If
consumers believe that the advantages of disclosure outweigh the present and future dangers, they
will likely expose their data (Culnan & Bies, 2003). In this study, the following are components
of the privacy calculus.
Perceived Benefits
(Kim, 2007) noted that perceived benefit, which include cognitive and emotive benefits, influence
how individuals continue to provide data. As components of an individual's perceived benefit,
extrinsic benefit suggests the use of personal data sharing, while intrinsic benefit provides delight.
This benefit influences a person's purpose to utilize social media platforms or other information
services.
H1. Perceived benefits have a significant impact on consumer willingness to share privacy.
Perceived Risks
The various risk linked with the exposure of personal information are known as perceived or
expected risks. Privacy risk is defined by (Featherman & Pavlou, 2003) as a possible loss of control
over personal information, such as when information about you is utilized without your knowledge
or consent. According to (Wamba, 2014), perceived risk impacts the inclination to utilize social
media.
H2. Perceived risk has a significant impact on consumer willingness to share privacy.
Perceived Privacy Control
Perceived privacy control covers elements of the privacy calculus, which is essential for people to
determine whether or not to participate in an interweb-personal connection. It has been claimed
that perceived privacy control might alleviate customers' context-specific worries about privacy
breach by certain external actors (Xu et al., 2008). A high level of perceived control over the
collection and subsequent use of personal data would indicate to consumers that they would be
able to handle and/or mitigate privacy risks associated with subsequent exchanges, thereby
increasing their desire to share information with the online vendor.
H3. Perceived privacy control has a significant impact on consumer willingness to share privacy.
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Bounded Rationality
The definition of rational decision making is selecting among options in accordance with the
preferences and beliefs of the particular decision maker (Luce & Raiffa, 1957). The rational choice
theory is an economic philosophy that implies humans can make logical judgments and educated
estimates that give them with the most advantages and happiness. The theory of bounded
rationality (Simon, 1995) is now largely acknowledged as a realistic depiction of much decision
behavior and a normatively reasonable adjustment to the costs and nature of information collecting
and processing by humans. It illustrates the notion that when people make judgments, their
rationality is constrained by the information element, the time element, and their cognitive limits.
The information factor suggests that humans lack the knowledge necessary to make reasonable
judgments.
H4. Bounded rationality has a significant impact on consumer willingness to share privacy.
Emotions
Researchers have revealed that many consumer actions are directly influenced by emotions. For
instance, unpleasant emotions enhance the likelihood that customers may participate in complaint
activities (Koletsky et al., 1995). It was discovered that customers who had favorable shopping
feelings stayed longer or spent more money, and that consumers who appreciate a firm are more
likely to give personal information on its website (Sherman et al., 1992).
H5. Emotions have a significant impact on consumer willingness to share privacy.
Perceived Fairness
Embedded inside the privacy calculus are the notions of social contracts and justice, which suggest
three justice principles and the norms underpinning a social contract (Li et al., 2010). The justice
(fairness) theory is founded on three fundamental principles: distributive justice, procedural
justice, and interactional justice.
H6. Perceived fairness has a significant impact on consumer willingness to share privacy.
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Figure 2.1: Conceptual Framework
Adapted from Han Lia et al. (2017), Karlijn Pots (2015)
2.1 Problem Statement
Big data and analytics have made client data a competitive advantage. Financial data analysis helps
companies understand consumer activities and desires. Digital and tech companies, especially
social media platforms, collect a lot of user personal data. Before using data, organizations should
have systems in place to address customers' privacy concerns, since privacy violations cause long-
term brand damage, decreased customer purchase intent, and security risks for consumers.
A March 2020 FTI Consulting survey found that firms expect a 9% drop in global annual revenue
due to a data privacy disaster. The 2013 Target data breach shows how a data leak can damage a
company's reputation. A third-party attack on 40 million credit and debit cards slashed sales.
Target's firing of hundreds of executives and store employees has boosted its reputation (FTI
Consulting, 2020). Facebook had the most recent and significant data exposures in 2016. Personal
information of nearly half a billion Facebook users in 106 countries was released online, according
to Business Insider. This includes 32 million US, 11.5 million UK, and 6 million Indian user
records. This breach hurts Facebook's finances and reputation. The FTC fined Facebook $5 billion
and required the company to adhere to legal regulations aimed at implementing greater
transparency in decisions affecting user privacy. Facebook's shares fell 5 percent to $162.57 per
share.
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Anecdotal and scientific data show consumers are willing to trade personal information for small
benefits. (Carrascal et al., 2013) found that internet users value their browsing history at 7 euros,
or a Big Mac meal. User privacy impacts the digital and technology commercial sectors
significantly. The privacy paradox explains these contradictory facts. Consumers' tendency to
engage in privacy-compromising behavior creates a gap between privacy beliefs and actual
conduct (Acquisti, 2004; Barnes, 2006). People who worry about internet privacy don't protect
their own. Businesses must understand customer behavior to avoid long-term reputational damage
from personal data use. This study will identify the factors that influence customer willingness to
share personal data to make recommendations for social media platforms.
3. Method
3.1.1 Samples
The research will use Judgmental or Purposive Sampling. Purposive Sampling is a non-probability
sampling process in which the researcher's judgment is used to pick instances that summarize a
given data set (Saunders et al., 2012). Since only those who meet requirements are sampled,
judgemental sampling improves population representation. Respondents must meet this
requirement:
1. Lives in Jakarta, Surabaya, Semarang, Bandung, and Yogyakarta
2. Social media user
3. Active user on social media platform
3.1.2 Site
This research was done Indonesian cities (Jakarta, Surabaya, Semarang, Bandung, and
Yogyakarta). Author chose only big cities in Indonesia's Java Island because they have developed
online societies and internet facilities. Java Island has high digital competitiveness in Indonesia,
according to research. East Ventures - Digital Competitiveness Index 2020 depicts the growth of
Indonesia's 34 provinces and 24 major cities.
3.1.3 Procedures
The study assesses how consumers' privacy concerns have affected their social media sharing. The
authors also conduct research and collect data from reputable publications, journals, and media
sources to indicate current issues of privacy paradox, such as why consumers are willing to share
their privacy and social media repercussions. The author can deduce the true situation from
secondary data. So, the author can deduce that the purpose of this research is to determine which
factor affects consumer willingness to share privacy and to provide insight and recommendations
for social media platforms.
Next, the author will conduct a literature review to better understand the topic and its theoretical
foundation. This section collects papers, articles, and prior research on consumer willingness to
disclose personal data. This literature review mainly examines and revises previous research on
similar topics. At this stage the author will also develop a research hypothesis.
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Because this research is quantitative, the author will use an online survey. Authors will collect
respondent data to determine how social media affects privacy. Analyzing questionnaire data with
PLS-SEM. The previous chapter's research questions and answers are concluded here. In this stage,
future research recommendations are made. Partial Least Squares (PLS) is used to investigate
correlations in SEM (SEM). Formative components favor PLS-SEM (Hair et al., 2019). Formative
models are evaluated on convergent validity, indicator collinearity, statistical significance, and
indicator weights (Hair et al., 2019).
Lastly, the author will analyze and summarize survey data. It involves using analytical and logical
reasoning to identify patterns, correlations, or statistics that prove or disprove a hypothesis. This
paper discusses data analysis results. The discussion on the finding will focus on what causes
consumers to willingly disclose personal data on social media platforms and recommend a
business.
3.2 Measurement
This will use quantitative data collection. This study uses quantitative methods because it examines
personal data sharing, which affects individuals. The quantitative approach is a research technique
that sheds light on events through numerical measurement and mathematical assessment
(Sukamolson, 2007). Testing hypotheses quantitatively will yield more accurate results.
In this research, the variables are the influence of each privacy calculus element on customer
willingness to disclose personal data, and the quantitative method with PLS-SEM technique is
used to measure them. This study also uses a survey because it can be adapted to a wide range of
topics. Previously gathered data can be categorized into figures, infographics, and statistics,
making it easier to detect links and express them concisely.
3.3 Data Analysis
This research data and information were collected only using Google Forms questionnaires. Using
Descriptive Statistics and PLS-SEM, this study will analyze the data collected from respondents.
Descriptive statistics decrease the data's complexity by encoding and filtering it so that it may be
measure and validated for future study. PLS-SEM will also be used to describe and calculate the
result of the research. In addition, the PLS-SEM test will consist of Reliability, Validity,
Collinearity, Coefficient of Determination (R2), Stone-Giesser (G), and F Square Effect Size (F2).
3.3.1 Validity and Reliability
"Validity" is the value delivered to the value scale that represents items with different features.
This number is then used to determine if the respondent agrees with the data. AVE indicates that
the measurement is known with high certainty. Each component can be used to calculate AVE.
(Malhotra, 2014) says the typical AVE for this validity study is 0.5. If the study is reliable, the
results validate established aspects, qualities, and variations. "Validity" refers to how useful the
data is for the investigation.
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“Reliability” measures an instrument's accuracy in relation to a particular idea (Ghozali, 2016).
The study used Wong's Smart PLS approach (2013). Smart PLS can evaluate the reliability of
indications. Smart PLS must be 0.70 or higher to double external load. Smart PLS consistently
provided 0.70 during this experiment.
4. Results and Discussion
Table 4.1: Hypothesis Testing
Hypothesis
Structural Path
T
Values
P
Values
Result
H1
Perceived Benefit → Consumer Willingness to Share
Personal Data
1.228
0.22
Rejected
H2
Perceived Risk → Consumer Willingness to Share
Personal Data
3.166
0.002
Accepted
H3
Perceived Privacy Control→ Consumer Willingness
to Share Personal Data
7.765
0
Accepted
H4
Bounded Rationality→ Consumer Willingness to
Share Personal Data
3.433
0.001
Accepted
H5
Emotions→ Consumer Willingness to Share
Personal Data
0.006
0.995
Rejected
H6
Perceived Fairness → Consumer Willingness to
Share Personal Data
7.557
0
Accepted
H1. Perceived benefits have a significant impact on consumer willingness to share privacy.
29. The first hypothesis asserted that perceived benefits had a substantial effect on consumers'
willingness to reveal personal information. Because as T-Value of this hypothesis is 1.228, which
is less than 1.96 at the significance level of 0.05 (5%), the hypothesis is not accepted. Therefore,
it may be inferred that perceived benefit do not have significant effect on consumers' willingness
to disclose personal data.
H2. Perceived risk has a significant impact on consumer willingness to share privacy.
30. The second hypothesis indicated that perceived risk has a substantial influence on customer
willingness to reveal personal information. This hypothesis is accepted since the T-Value is larger
than 1.96 at a significance level of 0.05 (5 percent). Thus, it can be shown that risk perception has
a substantial effect on consumers' willingness to disclose personal data.
H3. Perceived privacy control has a significant impact on consumer willingness to personal
data.
31. The third hypothesis asserts that consumers' willingness to reveal personal information is
significantly influenced by their perceived privacy control. Because as T-Value of this hypothesis
is 7.765, which is less than 1.96 at the significance level of 0.05 (5%), the hypothesis is rejected.
It follows that perceived privacy control has a substantial effect on consumers' willingness to give
personal information.
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H4. Bounded rationality has a significant impact on consumer willingness to personal data.
32. According to fourth hypothesis, bounded rationality has a major effect on customer willingness
to provide personal information. This hypothesis is accepted since the T-Value is larger than 1.96
at a significance level of 0.05 (five percent). Therefore, it may be inferred that bounded rationality
has a substantial effect on consumers' willingness to share personal data.
H5. Emotions have a significant impact on consumer willingness to share personal data.
33. Emotion has a substantial effect on customer readiness to provide personal information,
according to fifth hypothesis. This hypothesis is accepted since the T-Value of this hypothesis is
0.006, which is larger than 1.96 with a significance level of 0.05 (5 percent). Thus, it can be
inferred that emotions have not considerably affected the willingness of consumers to share
personal data.
H6. Perceived fairness has a significant impact on consumer willingness to share personal
data.
According to sixth hypothesis, perceived fairness has a substantial effect on consumers'
willingness to provide personal information. This hypothesis is accepted since the T-Value is
larger than 1.96 at a significance level of 0.05 (five percent). Therefore, perceived fairness has a
substantial effect on consumers' willingness to share personal data.
5. Conclusion
In the data analysis the author analyzes six factors of privacy calculus which are perceived benefit,
perceived risk, perceived privacy control, bounded rationality, emotion, and perceived fairness,
among those six hypotheses of the factor that drive consumer willingness to share personal data
that tested in this research, only four of them are accepted, means that only four of them proved to
have significant effect on consumer willingness to share personal data. The accepted variables are
Perceived Risk, Perceived Privacy Control, Bounded Rationality, and Perceived Fairness. Those
four hypotheses are accepted due to the fact that they have a T-value higher than 1.96. Each
accepted variable is also analyzed by descriptive analysis and proves that each accepted variable
has high significance, indicated by high mean score (>3.8). The result from this research itself is
not only proven by data analysis on this research alone but also supported and aligned by previous
research by (Pots K., 2015) and (Li Han et al., 2017).
Lastly, inferring from the summary above the author is able to find implications of this result for
the consumers perspective and business perspective. From the consumer's perspective, majority
consumers of social media platforms that become respondents to this research agree that the factor
that drives their willingness to share personal data is Perceived Risk, Perceived Privacy Control,
Bounded Rationality, and Perceived Fairness. Furthermore, this fact is also connected and has
several implications on how social media as a business should react to this result. Social media
platform as a business should minimize the risk when consumer decide to share their data, giving
more control to their consumer regarding their personal data, educate their consumer to understand
the value of their personal data, and giving better feedback or services performance to their
consumers to compensate their willingness to share personal data.
6. Acknowledgement
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Thanks to all my colleagues that help and support me in finishing this research. Special gratitude
also for author advisor Mrs. Annisa Rahmani Qastharin that give a meaningfull insight and
recommendation for finishing this reearch.
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FACTORS INFLUENCING ONLINE PURCHASE DECISION OF
LOCAL PERFUME BRANDS IN INDONESIA
Shintia Nurulita Hanun Azizah1* and Mustika Sufiati Purwanegara2
1 2 School of Business and Management, Bandung Institute and Technology, Bandung, INDONESIA
*Corresponding author: shintia_nurulita@sbm-itb.ac.id
Abstract: The growing of technology enables customers to utilize information technology with the
objective of doing the online shopping activities. Online transactions are now a prevalent and no
longer be a rare phenomenon, where advances in internet technology are utilized well. In addition,
the 2019 COVID-19 outbreak has had a significant impact on internet purchasing habits. Despite
the benefits of online shopping, certain shopping experiences cannot be replaced due to the
inability to use senses such as smell and taste while purchasing products. One of the examples is
perfume that require direct involvement of the olfactory and haptic senses. This research focuses
on local perfume brands in Indonesia. It because the growing local perfume market and the
development of numerous new local brands. Therefore, the purpose of this study is to identify and
investigate the factors that influence customers' purchase intention and online purchase decisions
in Indonesia. The findings will be utilized to evaluate and provide recommendations for online
retailers and marketers, particularly those in the local Indonesian perfume industry, in order to
develop appropriate and effective marketing strategies to attract their potential customers. A
quantitative survey was conducted among 512 Indonesian respondents between the ages of 18 and
29 who have purchased local perfume online within the past six months. PLS-SEM was used to
investigate the association between the tested variables and the primary data gathered via an
online questionnaire. According to the research findings, E-WOM (online consumer reviews,
testimonials, and ratings), social media marketing, price, product quality, and product description
have a significant influence to the online purchase decisions for the local perfume brands.
However, brand image, self-image, and packaging do not significantly influence on the online
purchase decisions for the local perfume brands. Additionally, the researcher comes with the three
highest influence of purchase intention. Product quality is the most influential factor of online
purchase decision for local perfume brands, followed by E-WOM (online consumer reviews,
testimonials, and ratings), and product description. With this research result, it could bring a
perspective to the local perfume company to develop strategic plan by enhancing more on these
factors that influence the purchase intention of the local perfume users to generate a marketing
strategy. It is done in order to strengthen the marketing strategy. attract new potential consumers
based on what their intention to purchase, and grow more profitable benefits to the local perfume
company.
Keywords: online purchase decision, purchase intention, local perfume, perfume industry, e-
WOM, brand image, social media marketing, self-image, product quality, price, packaging,
product description, purchase intention, online purchase decision.
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1. Introduction
1.1 Background
According to We Are Social and Hootsuite (2021), the number of Indonesia internet users reached
202.6 million, or 73.7% of the overall population of 274.9 million. According to Statista (2022a),
the number of e-commerce users in 2021 is projected to reach 158.6 million or equivalent to 78%
of total internet users in Indonesia. From this data, the number of e-commerce users in Indonesia
is expected to grow to 221.0 million in 2025. It has been demonstrated that online purchasing
provides more pleasure to current consumers who value convenience and quickness (Yu et al.,
2007).
Despite the benefits of online shopping, some studies argued certain shopping experiences due to
the incapacity to utilize senses such as smell while purchasing things, brick-and-mortar retailers
cannot be replaced by their digital counterparts for a specific range of goods. Consumers value the
ability to physically inspect goods prior to purchase. One example is perfume products that engage
the olfactory senses directly. (Levin et al., 2003; Phau & Poon, 2000; Zhang et al., 2018). Some
surveys have been identified that there items as one of the most popular internet purchases,
therefore it is important that online retailers need to understand consumer motivations and
perceptions toward online shopping to these products (Eurostat, 2018; Nielsen, 2018; Statista,
2022b).
In details, the other sources from Indexbox (2022) shows the Indonesian perfume market was
finally on the rise in 2021, after three years of decline. Overall, the total consumption indicated a
strong increase from 2012 to 2022 (Indexbox, 2022). Moreover, beauty trends are now
increasingly shifting towards local brands. In the recent years, local brands have begun to produce
cosmetics and skincare items. Currently, more and more local perfume brands are launching
quality products (Namira, 2020). According to Sudaryatmo, Chairman of YLKI in Advocacy and
Protection of Indonesian Consumers, local products are products made from materials originating
from within the country, the workforce comes from domestically, the product uses a local brand
and the last is company ownership. Based on this understanding, it can be concluded that a product
can be said to be a local product if it meets one or even the four references at once (Subagyo, 2012)
Based on the results of the Compas survey, local Indonesian perfume sales are starting to compete
with global brand perfumes. In August 2021, perfume local brand such as HMNS, Geamoore, and
Kahf were in the TOP 10 Top Best Selling Perfume Brands on Shopee and Tokopedia based on
their market share (Ramadhani, 2018). This shows that local Indonesian perfumes have a great
opportunity to compete with global brand perfumes and potential market in online industry.
1.2 Problem Statement
Based on the preliminary research with 10 interviewees, it shows that many customers are still
clueless about the quality and the scent of the product that they want to buy. They said that online
buying perfume has limit to use of senses such as smell senses. This is shown that purchasing
fragrances online without previous knowledge of the scent leads to problems with purchase
decision making. Additionally, there is no previous study focusing on local perfume product in
Indonesia. Hence, understanding factors influencing for online perfume shopping is important.
With the increase of Indonesian local perfume brand, online perfume purchases, and few studies
discussing this topic. Therefore, the author wants to know the factors that influence online
purchase decision, especially in local perfume brands in Indonesia
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1.3 Research Questions
Based on the context above, here are the issue that need to be addressed and explored in this
research:
1. What are the socio-economic profile and product consumption habits of local perfume
customers in Java Island?
2. What are the influencing factors of the online purchase decision of local perfume customers?
3. What is the most influencing factor of the online purchase decision of local perfume
customers?
1.4 Research Objectives
Knowing that there are background and research problem, the author wants to:
1. To provide an overview about socio-economic profile and product consumption habits of local
perfume customers in Java Island and its importance
2. To examine factors that influence the online purchase decision of local perfume customers
3. To know the most influencing factors of the online purchase decision of local perfume
customers
2. Literature Review
E-WOM: Online Consumer Reviews, Testimonials, and Rating
Electronic word-of-mouth (E-WOM) in the form of reviews, testimonials, and previous consumer
ratings are some main external sources that are vital for future buyers to receive needed
information about the store and be considered prior to making a purchase or payment, whether to
buy products from an online store brand or not (Hennig-Thurau et al., 2004).
Social Media Marketing
According to Neti (2011), Social Media Marketing is a strategic strategy for creating a company's
influence, reputation, and brand within the communities of prospective customers (Karman, 2015).
This study will use (Kim and Ko (2010), model by using social media characteristics;
entertainment (ENT), interaction (INT), trendiness (TRD), and customization (CUS), and Word-
of-Mouth (WOM). Word of mouth variable will also be used in this study more specifically E-
WOM that already explained above.
Brand Image
Brand image is described as perceptions of a brand as reflected by the brand associations held in
the consumer's mind or strong, favourable, and unique brand associations in memory (Keller &
Swaminathan, 2003).
Self-image
Self-image is how people see their looks, personality, type of person they are, what they feel others
think of them, how much they love themselves, and their status or position (Nair, 2016).
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Price
Price is the amount of money charged for a product or service, or the overall value buyers exchange
for the product or service's benefits. When deciding to acquire a product, people place a greater
emphasis on cost (Smith & Carsky, 1996).
Packaging
According to Kotler (2003), packaging is the design and production of a product's container.
Moreover, packaging is described as the material used to wrap consumer goods in order to retain,
describe, maintain, promote, or advertise the product (Olawepo & Ibojo, 2015).
Product Quality
Russell and Taylor (2005) concur that the definition of product quality is "fitness for use" or
conformity with client criteria. In addition, product quality can be defined as the potential of a
good or service to meet and exceed consumer expectations (Kotler & Armstrong, 2012).
Product Description
Product information or description is a significant variable utilized by marketers to assist
consumers in evaluating a product to make purchasing decisions (Khare & Rakesh, 2011a).
Purchase Intention
Morinez et al. (2007) stated purchase intention can be defined more broadly as the conditions
under which consumers are more likely to purchase a particular product (Diaa, 2017).
Online Purchase Decision
Online purchase decision is a buying act by the consumer after going through a selection process
that combines knowledge to evaluate two or more alternative behaviours, and choosing one of the
alternatives that is strongest to personal character (Andrade, 2000).
After evaluating the literature review, therefore, it is hypothesized that:
H1: There is a positive significant influence of E-WOM (online customer reviews, testimonials,
and ratings) to the purchase intention of local perfume brand
H2: There is a positive significant influence of social media marketing to the purchase intention
of local perfume brand
H3: There is a positive significant influence brand image to the purchase intention of local perfume
brand
H4: There is a positive significant influence self-image to the purchase intention of local perfume
brand
H5: There is a positive significant influence price to the purchase intention of local perfume brand
H6: There is a positive significant influence packaging to the purchase intention of local perfume
brand
H7: There is a positive significant influence product quality to the purchase intention of local
perfume brand
H8: There is a positive significant influence product description to the purchase intention of local
perfume brand
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H9: There is a positive significant influence purchase intention to the online purchase decision of
local perfume brand
H10: There is a positive significant influence E-WOM (online customer reviews, testimonials, and
ratings) to the brand image of local perfume brand
H11: There is a positive significant influence social media marketing to the brand image of local
perfume brand
H12: There is a positive significant influence self-image to the brand image of local perfume brand
The theoretical framework is illustrated in Figure 1.
Figure 1: Theoretical Framework
3. Method
3.1 Materials
In the initial stage of study, the author identified the problem in order to observe and narrow the
study topic and resulting a problem identification. Next, the researcher begins the justification
process by locating relevant literature. After a review of the relevant literature, this study employed
qualitative and quantitative research to test hypotheses. The author conducted qualitative research
as preliminary research to observe, explore, and understand more about the problem. Other that
than, the author using a quantitative approach, the author will collect numerical data, analyse the
data using a mathematical statistical technique, and evaluate hypotheses. The author uses surveys
in the form of questionnaires to collect data for the quantitative method.
3.1.1 Samples
In this study, the author used Isaac and Michael (1995) formula with infinite population and 5%
margin of error. It shows that this research needs minimal 349 respondents. This research gathered
512 respondents and uses non-probability sampling by make a subjective judgement, the selected
sample should have the requirement of 18-29 years old Indonesian citizen in Java Island who
experienced in buying online local perfume products in at least one time for the last 6 months.
3.1.2 Site
Java Island. Based on Indonesian Internet Providers Association (APJII) survey, the internet users
in Indonesia is concentrated in Java Island (Eloksari, 2020).
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3.1.3 Procedures
The variables involved in this study are an independent variable, a moderate variable, and a
dependent variable. The independent variable, according to Sugiyono (2018), is the variable that
causes the dependent variable to emerge or change. In this study, the independent variables are E-
WOM, Brand Image, Social Media Marketing, Self-image, Product Quality, Price, Product
Packaging, Product Description, while the moderate variable is Purchase Intention and Brand
Image, last the dependent variable is Purchase Decision.
3.2 Measurement
This survey uses primary data that collected using surveys and uses Google Forms as a tool to
collect all the information about respondents' data. In this research, Likert scale 1-5 will be used
for collecting the information. Researchers used a Likert scale of 1 to 5 ranging from 1 = very
disagreeable to 5 = very agreeable. The questionnaire element uses Indonesian because the
investigator distributed the questionnaire to respondents who use Indonesian as their primary
language. The structured questionnaire was developed by the previous literature review consist of
3 section (Socio-Demographic, behavioral, Close-Ended Question with 45 measurements items)
3.3 Data Analysis
Partial Least Square (PLS) was used to identify casual modelling in the conceptual framework.
The researcher utilized SmartPLS to calculate the association between all variables in this study.
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3.3.1 Validity and Reliability
3.3.1.1 Reliability Indicator
In exploratory study, a score of 0.4 is still acceptable (Wong, 2013). This research constructs a
conceptual framework that never been developed before, this research is concluded as exploratory
research. All variables meet the minimal recommended value score; consequently, it can be
assumed that all variables are reliable, and the research can proceed with further investigation.
3.3.1.2 Internal Consistency Reliability
The minimum value score is 0.7, but 0.6 is still deemed adequate for exploratory study (Wong,
2013). Due to the fact that the composite dependability value is more than the 0.70 criterion, as
shown in the table, all indications are considered reliable.
3.3.1.3 Convergent Validity
According to Malhotra (2010), Validity is the degree to which variations in recorded scale scores
represent real differences between objects and being evaluated; it's used to determine if respondent
results are acceptable; and AVE (average variance extracted) should be 0.5 or greater to assess
convergent and discriminant validity. All variables meet the minimal recommended value score;
consequently, it can be assumed that all variables are valid.
3.3.1.4 Discriminant Validity
According to Fornell and Bookstein (1982), the square root of each latent variable's AVE could be
used to demonstrate discriminant validity if the value is bigger than the other correlation
coefficients of all latent variables, the square root values of AVE are higher than the correlation
values in each row and column of latent variable. Consequently, it is reasonable to conclude that
all variables passed the discriminant validity test.
3.3.1.5 Outer Collinearity Test
According to Wong (2013), the Variance Inflation Factor (VIF) is calculated using 1/Tolerance
with a value of 5 or below. VIF values for all indicators meet the recommended requirements.
3.3.1.6 Inner Collinearity Test
All inner VIF values from all constructions are below the threshold of 5. In this research, there is
no collinearity difficulty in predicting related constructions, and examining the computation results
can proceed.
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3.3.1.7 Hypothesis and Path Coefficient Testing
Table 3.1 Hypothesis and Path Coefficient Testing
Hypothesis
Structural Path
Path
Coefficient
T-Values
Result
H1
E-WOM -> Purchase intention
0.207
4.575
Accepted
H2
Social Media Marketing -> Purchase intention
0.143
3.041
Accepted
H3
Brand Image -> Purchase intention
-0.014
0.708
Rejected
H4
Self-image -> Purchase intention
0.092
1.796
Rejected
H5
Price -> Purchase intention
0.101
2.201
Accepted
H6
Packaging -> Purchase intention
-0.014
0.268
Rejected
H7
Product Quality -> Purchase intention
0.229
4.821
Accepted
H8
Product Description -> Purchase intention
0.188
3.844
Accepted
H9
Purchase Intention -> Online Purchase Decision
0.637
17.604
Accepted
H10
E-WOM -> Brand Image
-0.031
0.709
Rejected
H11
Social Media Marketing -> Brand Image
0.432
8.920
Accepted
H12
Self-Image -> Brand Image
0.253
4.696
Accepted
Table 3.1 displays path coefficient and T-values. Path coefficients around +1 indicate a strong
positive association between two constructs, whereas path coefficients near -1 indicate a
significant negative relationship (Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, 2017). For
purchase intention, product quality -> purchase intention has the biggest path coefficient score,
which means that product quality is the most influential predictor of purchase intention of local
perfume brand. The value of 0.229 in the product quality -> purchase intention path can be
interpreted for every addition of one point in product quality would increase as much as 0.229
points in the of purchase intention of local perfume brand. Next, E-WOM -> purchase intention
has the second higher path coefficient score, which means that product quality is the most
influential predictor of purchase intention of local perfume brand. The value of 0.207 in the E-
WOM -> purchase intention path can be interpreted for every addition of one point in E-WOM
would increase as much as 0.207 points in the of purchase intention of local perfume brand.
Furthermore, for brand image, social media marketing -> brand image has the biggest path
coefficient score, which means that social media marketing is the most influential predictor of
brand image of local perfume brand. The value of 0.432 in the product quality -> purchase
intention path can be interpreted for every addition of one point in product quality would increase
as much as 0.432 points in the of purchase intention of local perfume brand.
According to Wong (2013), the bootstrapping method in SmartPLS can provide inner and outer
model significance testing T-statistics. This technique can be utilized to estimate the level of
significance between each variable investigated during hypothesis testing. T-statistics are
significant if the score exceeds 1.96, as assessed by a two-tailed t-test with a 5 percent significance
level (Wong, 2013). Therefore, 8 hypothesis are accepted: H1, H2, H5, H7, H8,H9, H11, H12 and
4 hypothesis are rejected:H3, H4, H6, H10
4. Results and Discussion
The first hypothesis is, H1: There is significant influence of E-WOM (online customer reviews,
testimonials, and ratings) to the purchase intention of local perfume brand. Based on the
hypothesis testing result, this hypothesis is accepted. This finding concurred with Kateelar et al
(201), electronic word-of-mouth with greater word-of-mouth quality is more persuasive to
customers and simpler to influence their purchase intentions (Ketelaar et al., 2015). This study's
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findings are consistent with those of a recent study by Ventre and Kolbe (2020), which identified
the perceived usefulness of online reviews (which will create trust) as one of the probable elements
that influence purchase intention. The more the credibility and trustworthiness of online
recommendations (ratings, reviews, and recommendations), the greater the impact on customers'
purchase intention. It shows that the customers are more likely to seek information on E-WOM on
social media from the other because their inability of customers to test the product. Therefore, by
looking at other customers’ review, testimonial, and ratings they can have an more insight about
the product and increase their purchase intention, Strengthening the result, E-WOM (online
customer reviews, testimonials, and ratings) has the highest score among the other variables
towards purchase intention.
Align with the next hypothesis, H2: There is significant influence of social media marketing to the
purchase intention of local perfume brand. Based on the data, the second hypothesis is accepted.
This finding supports the research of Gautam and Sharma (2017), social media marketing
activities have a significant positive influence on customers’ PI for a luxury fashion brand.
According Moslehpour et al. (2022), stated that that customer’s purchase intention will be even
greater when the social media marketing is well managed. Hence, this study is validated the
significant influence and important role of social media marketing towards purchase intention.
This indicates that customers are tend to check the brand’s social media to gain more information
about the brand and the product. Hence, this study is validated the significant influence and
important role o of social media marketing towards purchase intention.
On the other hand, based on the table, the hypothesis of H3: There is significant influence brand
image to the purchase intention of local perfume brand is rejected. This contradicts the findings
of the prior study. The greater the brand image, the greater the product quality perceived by
customers Grewal et al. (1998) and the greater the customer's purchase intention (Lin & Wang,
2012). Contradictory research by Yu, Lin, and Chen (2013) indicates that brand image has a
favourable effect on purchase intent for luxury brand categories. This distinct outcome may
emerge as a result of the presence of numerous new competitors in the Indonesian perfume market,
which has resulted in a flood of brand options for consumers, making brand image irrelevant in
determining purchase intent. In addition, customers prefer to use the product's quality as the basis
for comparison to other brands, rather than the brand's image.
Another contradictory result showed that the hypothesis of H4: There is significant influence self-
image to the purchase intention of local perfume brand is rejected. It shows a contrast with the
previous study from Landon, Jr. (1974) that found self-image has a correlation with purchase
intention. Supported by Kartika (2018) Research concluded that self-image has a substantial effect
on purchasing intention. This contradiction result may indicate that customers do not see their own
reflection through perfume or scent of perfume. They only buy perfumes with smells that they
like, not how the smell of the perfume reflects on them. This may be due to the functional benefits
of perfume, namely fragrances that are invisible to the eye so that customers do not associate
themselves with perfume products.
Move on to the other hypothesis, H5: There is significant influence price to the purchase intention
of local perfume brand is accepted. It is aligned with the Chowtanapanich and Chaipoopirutana
(2014) study that finds price has significantly influence the purchase intention. As well as the
findings of Hameed and Kanwal (2018) stated price has significant influence on the cosmetics
purchase intention. Despite the intense competition between local perfume brands, price remains
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a significant element in determining purchase intention. This demonstrates that customers have a
thorough understanding of the goods, as they are able to evaluate the product's quality to its price.
Customers will select the product that offers them the most value for their money from among the
different brands that offer similar products.
Moreover, the next hypothesis is H6: There is significant influence packaging to the purchase
intention of local perfume brand. Based on the data, the sixth hypothesis is rejected. Its shows a
contrast with the previous result study stated that packaging has several aspects that can improve
the customers purchase intention, these attributes consist of the design, color supplied, the shapes,
and many more that assist customers to distinguish the products and differentiate with the product
of competitors (Olawepo & Ibojo, 2015). The result also shows a contradiction with statement by
Kuvykaite (2009) that mentioned packaging has a positive influence on the purchase intention of
the customers. This may occur because the functionality of perfume is the scent and the durability,
therefore customers more rely on the product quality. From this result, it indicates that the first
judgment from the customers not rely on the packing, the attractiveness of packaging doesn’t give
a significant influence on the purchase process.
Move on to the other hypothesis, H7: There is significant influence product quality to the purchase
intention of local perfume brand is accepted. It is supported the study by Tsiotsou (2006) that
product quality has a beneficial effect on purchasing intent. Also, according to Zeehsan (2013)
quality is an essential instrument for developing a competitive advantage. With a large number of
t-values and other indicators, it is evident that product quality is of great importance. This indicates
that consumers are more knowledgeable about the product's materials, scents, characteristics, etc.
As stated by Garvin (2007), product quality is a collection of features and overall product
characteristics that have contributed to the demand fulfilment process (Sebastianelli & Tamimi,
2002). It indicates that customers are more inclined to respect a brand that provides them with a
product that fulfills their needs and exceeds their perception of the product's quality. If the product
meets the customer's quality expectations, they are more inclined to purchase it.
On the other hand, based on the table, the hypothesis of H8: There is significant influence product
description to the purchase intention of local perfume brand is accepted. It is consistent with
previous research indicating that product type (Moon et al., 2008), product price (Khare & Rakesh,
2011b) and product image (Park et al., 2018) may influence potential customers' purchase
intentions. Notably, the above characteristics are all associated with product description. As stated
by Mou, Zhu, and Benyoucef (2020), product descriptions must conform to customer
specifications, and every consumer must be able to comprehend the meaning and content of all
information. Additionally, product descriptions must be practical and offer value to the tasks
performed by customers. It shows that customers are more likely to look up to the product
description first and the judgement will rely on the product description because the inability to
physically access the products, especially the inability to try the scent of the perfume. Therefore,
the product descriptions have to be complete, specific, and easy to understand since it has positive
influence with purchase intention.
The next hypothesis which is H9: There is significant influence purchase intention and online
purchase decision of local perfume brand is accepted. This result shows a positive alignment with
the previous research. According to a study by Kim, Ferrin, and Rao (2008), a higher degree of
customers' purchase intention, particularly in an online purchasing scenario, may increase the
likelihood of actual purchase decisions. The association between these two variables demonstrates
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a positive and statistically significant outcome, which strengthens the case for accepting this
hypothesis. This result confirmed the findings of Dapas, Sitorus, and Purwanto (2019), which
stated that in the context of online shopping, customers consider a variety of factors prior to making
a purchase decision, which may lead to changes in customers' choices, preferences, and purchasing
behavior. Therefore, it is determined that customers' purchase intentions have a positive and
significant effect on their purchasing decisions. The greater a customer's purpose to purchase, the
greater their purchasing choice of a local perfume product in the context of online shopping.
Moreover, the next hypothesis is H10: There is significant influence E-WOM (online customer
reviews, testimonials, and ratings) to the brand image of local perfume brand is rejected. Its shows
a contrast with the previous result study of Bilgin (2018) that the more frequent search activities
for an information it will affect a view or image of a brand in the minds of consumer so EWOM
has a positive effect on brand image. From this result, it indicates that brand image is not influenced
by E-WOM because the brand should create the image itself from the company not from the
customers.
Move on to the next hypothesis, the H11: There is significant influence social media marketing to
the brand image of local perfume brand is accepted. It supported statement of Godey et al. (2016)
that social media marketing is important tool to build brand image. And other sources stated that
marketing activities in social media have a significant effect on consumers' brand image (Bilgin,
2018). It shows that customers are more likely judge the image of the brand based on the social
media activities that the brand created. Thus, it indicates that to gain a positive brand image, brand
should create several social media marketing activities.
Next, the last hypothesis is H12: There is significant influence self-image to the brand image of
local perfume brand is accepted. It supports a statement that stated that consumers have formed
positive “self-brand connection” based on the congruency between the individual’s “self-image”
and the “brand-image” (Escalas & Bettman, 2005). It indicates that the customers consumers use
specific brands as a narrative text to communicate who they are.
5. Conclusion
For answering the first research questions, it is found that the socio-economic profile of local
perfume brand is the majority of the local perfume users are female in the age of 18-21 years old,
located in East Java, have an occupation of student or college students who has monthly expenses
below Rp1.000.000. It can be concluded that mostly the consumers are educated to make
judgement toward the brands since their occupation mostly are in school and college. With the
amount of monthly expenses, it can be determined that respondents desire an affordable price, so
the company should pay attention to price setting and market promotion. Most respondents located
in East Java, indicating that users choose local over global brands. This socio-economic profile
can be used to determine target market and design approaches.
Moreover, based on the questionnaire result, the majority of local perfume users have used local
perfume for less than a year. 80% of the respondents buy 1-3 products in 6 months and 99.2% of
the respondents buy their local product in marketplace such Shopee and Tokopedia. Most of the
respondents spend on local perfume product for Rp100.000 – Rp299.999 per product. Majority of
the respondents influenced to buy local perfume product by their friends, it indicates that the
opinion of closest person to the respondents, which are friends, have a great influence on
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respondents’ behaviour. Last, the highest perfume scent preference for the respondents is floral
scent. Next, the consumers have habit to buy 1-3 products in 6 months with the range price
Rp100.000 – Rp299.999 per product via marketplace platform. This consumption habits can be
used as a strategy to make a product marketing, price range, and develop marketing strategy. It is
suggested to have a better understanding of the socio-economic profile of local perfume users and
their habits so that the company knows how to develop strategy precisely and effectively.
For answering the second research questions, it is found that online purchase decision of local
perfume is influenced by the E-WOM (online consumer reviews, testimonials, and ratings), social
media marketing which has 4 indicators such as entertainment, interaction, trendiness, and
customization, price, product quality, product description through purchase intention as the
mediating variables.
For answering the third research questions, after evaluating the factors influence the online
purchase decision of local perfumes by evaluate the path coefficient value, the researcher comes
with the three highest influence of online purchase decision. Product quality is the most influential
factor of purchase intention for local perfume brand, followed by E-WOM (online consumer
reviews, testimonials, and ratings), and product description. In this research, product quality
consists of the quality of the scents (long lasting), material used, the smell of the scents, and
functionality.
6. Acknowledgement
The authors would like to thank all the lecturers, family, friends, colleagues, interviewees,
respondents for providing continuous support and willing to participate in this study
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FACTORS INFLUENCING THE CONSUMER PURCHASE
INTENTION IN E-COMMERCE
Tan Kock Lim1*, Tan Hong Hooi2 and Loo Teck Khun3
1 2 3 School of Business, UOW Malaysia KDU Penang University College, Penang, MALAYSIA
*Corresponding author: kocklim.tan@kdupg.edu.my; kltan11112222@gmail.com
Abstract: E-commerce and internet growth and development are very rapid; however, it is not
well-balanced with the number of online purchase transactions which is still relatively low. The
purpose of this research is to determine the factors influencing consumer purchase decisions in e-
commerce. Technology Acceptance Model is the underpinning model applied in this study.
Electronic word of mouth, perceived trust, e-service quality and return policy are the independent
variables whereas customer purchase decision in e-commerce is the dependent variable in this
research. The data were obtained through the questionnaire with likert scale 1-5. Respondents in
this study were users in e- commerce with a total sample of 215 people. Five data analysis
techniques such as descriptive analysis, validity analysis, reliability analysis, correlation analysis
and regression analysis are used to analyse the result. According to the findings, this research
indicates that electronic word of mouth having a positive relationship with consumer purchase
intention in e-commerce whereas perceived trust, e-service quality and return policy shown that
there is no relationship in influencing consumer purchase intention in e-commerce. This research
is helpful for many fields as references, especially e-commerce and business industry to make
improvements on their online marketing strategy.
Keywords: Consumer purchase intention, E-commerce, Technology Acceptance Model.
1. Introduction
E-commerce can be defined as the activity involving purchasing and selling of products or services
through electronic systems such as the internet and other computer networks. In this new era of
science and technology, e-commerce has gained popularity over the world with many advanced
technologies introduced in its operations (Shahjee, 2016). Nowadays, consumers can access the
global market through the virtual economy on the internet and may select their favourite products,
and shop according to their times and place their order in anywhere they feel cosy and convenient
to them (Dan, 2014).
Developments in the commercial sector, coupled with the increasing popularity of the internet in
recent years, have made Malaysian companies more aware of the importance of e-business in
gaining a competitive edge in the global market. As such, a better understanding of the factors that
influence online shopping intention would help in planning better marketing strategies in targeted
segments.
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Figure 1.1 shows the number of online shoppers in Malaysia within 7- year period. It shows that
the number of online shoppers in Malaysia increases year by year. The number of online shoppers
in Malaysia for 2016, 2017 and 2018 are 0.88 million, 1.08 million and 1.31 million respectively.
In 2019, the number of online shoppers in Malaysia grew from 1.31 million to 1.58 million. In
2020, the numbwe of online shoppers in Malaysia is 1.88 million and estimated to continue to rise
in 2021 and 2022 which are 2.20 million and 2.53 million accordingly.
Figure 1.1: The number of Online Shoppers in Malaysia from 2016 to 2022
(Source: Wadolowska, 2018)
The advancement of the World Wide Web has resulted in the creation of a new form for electronic
retailers. However, web-retailers can only offer certain ranges of products and services to the
web-shoppers. This includes e-banking services, technology gadgets, cosmetics, clothing and
airlines e-ticketing services. Wolfinbarger and Gilly (2001) assert that webshopping presents
different shopping experiences even when the same products are purchased.
There are many researchers who have completed their analysis regarding factors influencing
consumers’ purchase intention in e-commerce. Despite that, the outcome of their analysis is
differenced. Some researchers agreed that electronic word of mouth have a positive impact
towards consumer purchase intention (Cheung, Lee & Rabjohn, 2008). Related to trust, some
researchers agreed there is positively linked with consumer purchase intention in e-commerce and
risk perception has a negative impact towards consumer purchase intention (Budi Puspitasari,
Nugroho W P, Nilan Amyhorsea & Susanty, 2018). The research conducted by Sinurat and Ali
(2020) agreed that e-service quality have a significant impact towards consumer purchase intention.
Accordingly, to Khanna, Awal and Gupta (2019), Janice, Saerang & Pandowo (2017) agreed that
return policy has a positive relationship towards consumer purchase intentions.
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The research objectives are as follows:
i. To examine the relationship between electronic word of mouth and consumer purchase
intention in e-commerce.
ii. To determine the relationship between perceived trust and consumer purchase intention in
e-commerce.
iii. To study the relationship between e-service quality and consumer purchase intention in e-
commerce.
iv. To investigate the relationship between return policy and consumer purchase intention in e-
commerce.
2. Literature Review
Technology Acceptance Model (TAM) theory was developed at 1989 by Davis which has a
purpose of predicting the acceptance of system and behavior of users when using the system. TAM
explains that individual behaviour when using a system is affected by perceived ease of use and
perceived usefulness. (Davis, 1989). Previous studies also using technology acceptance model as
a guiding theory such as in the field of online banking information systems acceptance (Chandio,
Abbasi, Nizamani & Nizamani, 2013) and cloud computing adoption by companies (Dachyar &
Prasetya, 2012) which both of the research area related to technology adoption. A website, in
general, can be considered as an information system which give information to its users. (Shih,
2004). Nowadays, TAM is the most suitable theory in order to explain the acceptance of
technology in the information system research (Gefen, Karahanna & Straub, 2003). Thus, online
purchase intention, as an appropriate measurement for intention to use a website, should be
explained as a part of technology acceptance model. As guiding theory in this research, the two
factors of TAM (perceived usefulness perceived ease of use) are included. Perceived ease of use
is explained to an extent when a user experienced a particular website as easily operated and
effortless (i.e., time and energy) to learn using the website (Chen & Ching, 2013). When websites
interfaces are easy to use, buyers will find the meaningful and useful information easily, which
improve their perception of usefulness.
Figure 2.1: Theoretical Framework of Technology Acceptance Model
(Source: Davis, Bagozzi & Warshaw, 1989)
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2.1 Purchase Intention
The intention to transact or purchase intention is defined as the intention of buyers to engage in
the exchange relationship at shopping websites, such as sharing information, maintain business
relationships, and create business transactions (Zwass, 1998). Intention to purchase online is based
on the relationship between behavioral intention and actual behavior. Behavioral intention of
individual to do action will determine the actual individual behavior. Thus, purchase intention to
particular online shopping websites is a factor that predicts the actual behavior or the purchase
decision of customers (Kim, Ferrin & Rao, 2008). The research observing online purchase
intention is an appropriate measurement for intention to use the website because online transaction
involves sharing information process and actual purchase so that online purchase intention will
depend on many factors (Pavlou, 2003).
According to Mirabi et al. (2015), purchase intention is a type of decision-making that discover
the factor to purchase a brand by consumer. Furthermore, researchers also defined purchase
intention as a situation where consumers tend to buy a certain item in certain condition. Purchase
intention usually linked to the consumer behaviour, perceptions and attitudes. It can be considered
as an effective tool to forecast the buying process of consumer.
2.2 Electronic Word of Mouth (eWOM)
Electronic word of mouth defined as any attempt by a former, potential, or actual consumer to
highlight the positive or negative features of a product or company through an online platform
(Almana and Mirza, 2013). Electronic word of mouth acts as a vital role in consumer’ perception
of a particular brand name (Amblee and Bui, 2012). One of the differences between electronic
word of mouth and traditional word of mouth is electronic word of mouth have the capability to
reach an unprecedented number of people all at once. Researchers stated that consumers rely on
online consumer reviews regarding products or services before they proceed to make their
purchase intention. This is because electronic word of mouth serves as decision aids, consumer
feedback mechanism and a recommendation system in e-commerce (Almana and Mirza, 2013).
eWOM information on various social networking sites highly influences purchase intention of
consumers (Evans and Erkan,2018). eWOM via social media significantly influences consumers
emotional, affective and cognitive responses (Yan et al,2018). Information quality is available to
consumers in the form of reviews significantly influences consumers purchasing intention
(Baroom et al.,2020). eWOM information or consumer reviews helps in buying decisions of
consumers (P.Y Michelle,2018). eWOM plays an important role in developing brand image in the
minds of consumers. Besides, eWOM and brand image have certain influence on buying intention
of consumers (Haun et al,2017).
2.3 Perceived Trust
Trust defined as a belief that the counterparty will meet the expectations without exploring the
vulnerabilities of the trustee (Aziz, Md Husin, Hussin & Afaq, 2019). Trust refers to a feeling of
security and willingness to depend on someone or something. Researchers considered that trust
and consumer satisfaction is a dynamic process and it is built over a particular period of time
contribution in order to satisfy beyond the effects of the economic outcome. There are two methods
distributed by researchers. The first method is defining trust as a belief, confidence, expectation or
attitude regarding another individual’s trustworthiness. The second method is trust as behavioral
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intention or behaviour of reliance and includes vulnerability and uncertainty (Kim, Chung & Lee,
2010). Researchers stated that users feel fearful making transactions through the Internet with e-
vendors. Consumers are afraid of disclosure of their personal data, lack of standards for secure
payment and lack of profitable business models. Thus, perceived trust helps decrease fear of
consumers and facilitate transaction in e-commerce.
In internet-based consumer behavior, trust is crucial, because, in virtual networks, understanding
cannot be increased through face-to-face interaction. Trust can enhance consumers’ intentions to
shop online and promote more shopping behaviors (Zhao et al., 2019). In context to social
commerce, trust is generally defined as a belief state that submits to the vulnerability created by
the actions of another party without monitoring or exercising control over the other party (Al-
adwan & Kokash, 2019).
2.4 E-service Quality
Service quality refers to the degree to which a website facilitates effective and efficient
purchasing. Researchers stated that on the beginning e-service quality consists of 11 dimensions.
Nonetheless, the figure lowered to 7 dimensions in the later studies. Moving on, the service quality
dimensions distributed into three segments such as tangibles, responsiveness, reliability, assurance
and empathy. E-service quality comprises four dimensions such as website design, customer
service, privacy or security, and fulfillment. Researchers stated that perceived e-service quality
has a significant impact on consumer satisfaction (Cristobal, Flavia´n and Guinalı´u, 2007). Other
researchers stated that e-service quality refers to online travel customers’ overall judgment of the
excellence and superior quality of e-service offerings in the virtual marketplace (Tsang, Lai &
Law, 2010). E-commerce may provide the tailor-made service and delivery product within the
promises time in order to influence consumer intention to purchase in e-commerce. E-service
quality positively influences consumer purchase intention in e-retail. (Kalia, Arora & Kumalo
(2016).
2.5 Return Policy
Return policy can be defined as the availability and its return management offers the psychological
benefit for solving consumer’s remorse such as security awareness. Furthermore, return policy
refers to the minds of buyers as an increase in the service quality of an organization, and the
perceived quality of an organization affects consumer purchase decisions (Kidane and Sharma,
2016). In addition, researchers stated that return policy also linked to the level of consumer loyalty
and increased consumer confidence to a store (Oghazi, Karlsson, Hellström & Hjort, 2017).
Therefore, the availability of return policy enhances consumer consumption decisions to purchase
via online channels.
Several important findings that describe the relationship between return policy and consumer
purchase intention. Return policies have a positive impact on consumer purchase intention in e-
business (Hsiao & Chen, 2012; Pei, Paswan & Yan (2014, Oghazi et al. 2017).
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2.6 Theoretical Framework
Figure 2.2: Theoretical Framework of this Study
The summary of hypothesis statement as follows:
3. Research Methodology
Research design, construct measurement and questionnaire design, and data analysis methods. The
research design consisted of research population and sample size, sampling method, data collection
method, unit of analysis
Quantitative method is the method applied in this research for collecting data. The sample size in
this study is 215. The questionnaire will be delivered to individuals who fit the criteria of this study.
SPSS software is used to analyzed the data.
The unit of analysis is individuals who are experiencing and having intention to purchase in e-
commerce. Questionnaire will be used to collect the relevant information from the respondents.
There are five data analysis techniques in this research such as descriptive analysis, validity
analysis, reliability analysis, correlation analysis and regression analysis.
H1
Electronic word of mouth is positively related to purchase intention in e- commerce.
H2
Perceived trust is positively related to purchase intention in e-commerce.
H3
E-service quality is positively related to purchase intention in e-commerce.
H4
Return policy is positively related to purchase intention in e-commerce.
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Descriptive analysis refers to identify, describe, compare and clarify all data collected. Standard
deviation, frequency distribution, percentage distribution and central tendency are applied to
present the collected information from questionnaire. Standard deviation and frequency
distribution is a display of the numbers of observations. The representation of a frequency
distribution can be tabular or graphical so that it is easier to understand well. Furthermore, the
demographic background of respondents.
Validity analysis refers to the accuracy of a method measurement and relates to what the survey
intended to measure (Messick, 1987). In this research Kaiser-Meyer-Olkin (KMO), Bartlett’s test
of sphericity and factor analysis is applied to discuss the data. KMO is applied to test how the data
is suited factor analysis and ensure that sampling is adequacy and should the result of KMO should
more than 0.5 (Crane, Busby and Larson,1991). Besides, Bartlett’s Test of Sphericity is applied
to test whether any redundancy between variable and the result (p <0.05) is significant
(Zach,2019).
Reliability analysis refers to the extent to which results are consistent over time. The accuracy of
a representation of the total population under research is defined as reliability (Golafshani, 2003).
Cronbach’s Alpha analysis is used to measure reliability and SPSS software is computed in this
research. The range is usually between 0 and 1 in Cronbach’s alpha reliability coefficient. However,
there is no lower limit to the coefficient. The closer Cronbach’s alpha coefficient is to 1.0 the
greater the internal consistency of the items in the scale. The increase in the value of alpha is
partially dependent upon the number of items in the scale, it should be noted that this has
decreasing returns. In brief, the high value for Cronbach’s alpha indicates good internal
consistency of the items in the scale (Gliem and Gliem, 2003)
Correlation analysis refers to a process for determining the relationships between both independent
and dependent variables. In this study, this method is applied to determine the relationship among
all variables through SPSS software. The correlation coefficient normally ranges from -1 to +1.
When the value establishes +1, then the data are positively correlated, and -1 has a negative
correlation. If the coefficient comes down to zero, the data is considered as not related (Kristoufek,
2013).
Multiple regression analysis is performed in this study. Multiple regression is a technique that
allows additional factors to enter the analysis separately so that the effect of each can be estimated.
This analysis is used to predict the value of several variables (Mason and Perreault, 1991). Hence,
regression analysis may help to predict consumer purchase intention in e-commerce. In addition,
R-square refers to the variance of the predicted values divided by the variance of the data. Durbin-
Watson test is applied to detect the presence of autocorrelation. Durbin-Watson usually provides
the values that range from 0 to 4. If the values near 0, then it is positive autocorrelation. The
negative autocorrelation is presented by values near 4. Autocorrelation is not present if the value
ranging from 1.5 to 2.5. Furthermore, multicollinearity is a phenomenon when two or more
predictors are correlated, if this happens, the standard error of the coefficients will increase.
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4. Discussion and Conclusion
This research picked out the sample size of 215 individuals who have experience in purchasing in
e-commerce in Malaysia. To ensure accuracy, researcher collected 220 sets of questionnaires,
while a total 220 sets of questionnaires were collected through online. Yet, 5 set of questionnaires
were unusable because they were not filled up properly.
Out of 215, 137 (63.7 percent) are female and 78 (36.3 percent) are male.
The result of KMO 0.889 is achieve the minimum required and the sampling is adequacy. The
Bartlett’s Test of Sphericity value is 3157.987 and this result achieve the significant value 0.000
which (p<0.05).
KMO Test
Bartlett’s Test of Sphericity
(Approx Chi-Square)
Bartlett’s Test of Sphericity
(Significance)
0.889
3157.987
0.000
The result of reliability analysis showed all the variable is achieved the minimum required
Cronbach’s Alpha value which is 0.7 and none of the item is abandoned.
The Pearson Correlation is used to get correlation value. In this study all the variable is significant
and positive. The result showed that the highest value of Pearson Correlation is 0.73 that mean
that the electronic word of mouth is the most effect variable toward purchase intention, while e-
service quality is 0.677, return policy is 0.607 and perceived trust is 0. 595.
Variable
Number of Items
Cronbach’s Alpha
Purchase intention
6
0.739
Electronic word of mouth
6
0.741
Perceived trust
6
0.778
E-service quality
6
0.760
Return policy
6
0.810
The regression analysis findings showed adjusted R2 is 0.613 which mean that 61.3% of the factor
of consumer purchase intention is related to electronic word of mouth, perceived trust, e-service
quality and return policy. The Durbin Watson is 1.550 which is acceptable and achieve the range
1.5-2.5 which mean that there is no autocorrelation.
R2
Adjusted R2
F
Durbin-Watson
0.620
0.613
85.619
1.550
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Furthermore, this study is no any multi-collinearity problem. The tolerance value of this study is
0.1-1.0 and there is no any variable is overlap and the value of VIF is between 1-10 and condition
index is 10-40.
Independent Variable
Tolerance
VIF
Condition Index
Electronic word of mouth
0.546
1.830
21.639
Perceived trust
0.397
2.521
24.903
E-service quality
0.314
3.180
33.842
Return policy
0.335
2.983
39.175
Based on the result of standardized Coefficient Beta. Electronic word of mouth positively affect
consumer to purchase on e-commerce because the standardized coefficient beta is 0.483 and
significant level is 0.000 yet the rest of the factor is not significant. The standardized coefficient
beta shows the value of perceived trust is 0.171, it stated that perceived trust is positive relationship
with purchases intention yet it is not significant because the significant level is 0.120. Besides the
e-service quality and return policy is positively influence consumer intention but the significant
level is (p>10). In addition, the t test is used to analyze one or two sample means. The confidence
interval of this study is 95%.
Table 4.1: Standardized Coefficients Beta
Independent
Variable
Sig.
t-value
Standardized
Coefficient Beta
95% Confidence Interval
Lower Bound
Upper Bound
Electronic word of
mouth
0.000
8.397
0.483***
0.398
0.641
Perceived trust
0.120
2.539
0.171*
0.040
0.321
E-service quality
0.190
2.368
0.180*
0.035
0.385
Return policy
0.330
0.977
0.072*
-0.74
0.218
Dependent variable: Purchase intention
Note: ***p<0.01, **p<0.05, *p<10
Figure 4.1: Result of Multiple Regression Analysis
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Table 4.2 showed summary of result. All the hypothesis rejected except H1 is accepted.
Hypothesis
Description
Standard
Coefficient
Beta
Result
Sig. P value
H1
Electronic word of mouth is positively
related to purchase intention in e-
commerce.
0.483
Accepted
0.000
H2
Perceived trust is positively related to
purchase intention in e-commerce.
0.171
Rejected
0.120
H3
E-service quality is positively related to
purchase intention in e-commerce.
0.180
Rejected
0.190
H4
Return policy is positively related to
purchase intention in e-commerce.
0.072
Rejected
0.330
The result indicated that electronic word of mouth is having a positive relationship with consumer
purchase intention in e-commerce whereas other factors which are perceived trust, e-service
quality and return policy show that there is no relationship in influencing consumer purchase
intention in e-commerce. Therefore, H1 is accepted and H2, H3 and H4 is rejected.
This study enables to provide a reference to future researcher and academy about the factor
influencing consumer intention to purchase in e-commerce. This study prove that electronic word
of mouth is positively effect consumer purchase intention in e-commerce yet the perceived trust,
e-service quality and return policy is no relationship with consumer purchase intention in e-
commerce. Therefore, the result may be a useful reference for future researcher.
E-service quality is not related with consumer purchase intention in e-commerce. Sometime the
product information provided in the website is not sufficient, therefore consumer is really hard to
make decision to purchase the product just by reading the limited information provided by the
website. Moreover, the merchant website should be update regularly, the website feature which is
too outdate or too new also hard to let consumer perform on the website. These is the issue that
merchant should take in consider in order to influence consumer purchase intention. Merchant
should ensure that product information is updated understandable and clear. Besides that, e-
commerce website should provide a user manual and tutorial to user. E-commerce website should
also develop several languages to in order consumer can choose the language they are understand
and this action may affect consumer intention to purchase in e-commerce.
Return policy is no affect consumer intention to purchase in e-commerce. The return policy is not
attracted consumer to purchase online this is because the procedure to return the product is too
time consuming and complex. Consumer can get feedback and direct return to the seller when
consumer is buying from the physical shop which is more time saving and convenient compare to
return the product to e-vendor. Furthermore, some of the merchant is charging an unreasonable
cost when consumer return the product, that may let consumer feel uncomfortable and not reason
to return and purchase product through online.
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Merchant and marketer should pay more attention to encourage consumer to leave a review on
product. By reading review of the product, it may attract consumer purchase intention to purchase
product in e-commerce. However, merchant and marketer should pay more effort on perceived
trust, e-service quality and return policy in order to change the mind of consumer and provide a
wonder purchase experience for consumer.
Merchant should improve the security of the website in order to protect consumer privacy and e-
commerce platform should verify every seller in the platform to avoid scammer and increase
consumer confident to purchase in e-commerce. Moreover, seller should ensure that the
information of the product is sufficient and clear to ensure that consumer is clear about the product
information such as the function of the product, expire date and price. E-commerce platform
should provide a user manual and tutorial to ensure that consumer is understand the feature of the
website. In addition, seller should explain the return policy clearly and charge a procedure fees
before consumer purchase product to avoid misunderstanding.
This study also enables to provide a reference to future researcher and academy about the factor
influencing consumer intention to purchase in e-commerce. This study prove that electronic word
of mouth is positively effect consumer purchase intention in e-commerce yet the perceived trust,
e-service quality and return policy is no relationship with consumer purchase intention in e-
commerce. Therefore, the result may be a useful reference for future researcher.
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FINANCIAL PERFORMANCE ANALYSIS AND
RECOMMENDATION OF PT BLUE BIRD TBK
Muh. Hisham Suryadinata1* and Asep Darmansyah2
1 2 School of Business and Management, Bandung Institute of Technology, Kota Bandung, INDONESIA
*Corresponding authro: muh_hisham@sbm-itb.ac.id, asep.darmansyah@sbm-itb.ac.id
Abstract: The passenger land transportation industry has been fluctuating lately, especially when
the emergence of ride hailing companies following with the covid-19 outbreak. This study will
analyze the financial performance of PT Blue Bird Tbk as one of the leading passenger road
transportation in Indonesia by comparing it with its competitor. The financial performance of each
company will be analyzed in the period of 2017 to 2021 by using financial ratios both in the
company’s financial statement and its segmented income statement, and combine it with DuPont
Analysis. The financial ratio that is being used consists of liquidity ratio, activity ratio, debt ratio,
and profitability ratio. The results shows that the company's financial performance in five years is
declining, but still above the industry average. The company managed their liquidity and debt
aspects well in recent years, but lacked in their activity and profitability aspects. In order to
increase the company’s financial performance, the company might decrease their liquidity ratio
and increase their debt ratio by investing it more to the technological development, collaboration
in ride-hailing companies, and also increase of investment in the bus and car rental segment.
Keywords: Financial Performance, Passenger Land Transportation Industry, Financial Ratio.
1. Introduction
In recent years, the passenger land transportation industry has been fluctuating lately, especially
when the emergence of ride hailing companies following with the covid-19 outbreak. PT Blue Bird
Tbk as one of the leading Indonesian transportation companies, serves a range of business in the
land transportation industry such as taxi provision services, car rental, bus charters, and other land
vehicles that have been operated in several urban areas in Indonesia. In facing those challenges,
the board of management has done several strategic actions to the continuity of the company’s
operation, however it is still unknown whether the company still could maintain their positions.
2. Literature Review
2.1. Transportation Industry
The business environment is constantly changing. These changes could be a result of competition,
regulations, customer preferences, the economy and technology (Al-Asmakh, 2016). The
passenger land transportation industry has faced those challenges, especially when the emergence
of ride hailing companies that affected all of the previously mentioned. Those companies bring
new technology to the market by serving the new services that are more affordable and more
suitable to the consumers (Mutiarin et al, 2019). The price tariff that rides hailing companies offer
becomes one of the key points the companies are well received to the people, and until the
Indonesia ministry of transportation sets the price caps in 2017. Beside that, the covid 19 pandemic
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also greatly influenced the industry as it caused a variety of social, economic and environmental
changes. In transportation industry, one of the most visible is in the reduction of mobility across
multiple sectors, such as border restriction, travel bans, quarantines, curfew, stay-at-home orders,
and other policies that reduced demand in this industry (Elizabeth et al., 2021). The government
restriction effected the customer behavior, which significantly decrease the total revenue of the
industry. These reasons combined with other factors makes the business operation of existing
conventional taxi companies become affected, the development of online car-hailing (Jiang and
Zhang, 2018) and the covid 19 pandemic (Elizabeth et al., 2021) accompanies the decline of
passenger land transportation industry. Therefore, the companies within the dealt a huge blow
because their financial performance goes down
2.2. Financial Ratio
Gitman & Zutter laid out the fundamentals of financial performance assessment through
calculating financial ratio, a method that involves calculating and interpreting financial ratios by
analyzing and monitoring the firm’s performance. Using the basic financial statements as a source,
this method could become a relative measure of the company’s performance and could be
presented to a variety of interested parties. To get a meaningful basis of comparison, the financial
ratios also need to be analyzed and interpreted through the combination of time-series approach
and cross-section approach to get a comprehensive view of a firm's financial condition.
Furthermore, it will provide even more insights of a firm's financial condition and assess the trend
in the behavior of the ratio in relation to the trend for the industry.
2.2.1. Liquidity Ratio
This ratio measures the company’s ability to satisfy their short-term debts and obligations. The
liquidity of the company could be measured by current ratio and cash ratio, as its inventories are
not hard to sell.
-
-
2.2.2. Activity Ratio
The activity ratios could measure the company’s efficiency in managing their accounts converted
into sales or cash. The ratio could be measured by average collection period as well as total asset
turnover.
-
-
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2.2.3. Debt Ratio
This ratio indicates the amount of other people’s money being used to generate profits. Using the
debt to asset ratio and debt to equity ratio could measure the financial leverage of the company.
-
-
2.2.4. Profitability Ratio
The company could measure their profitability by evaluating the firm’s profits with respect to a
given level of sales, a certain level of assets, or the owners’ investment. The profitability could be
measured by their gross profit margin, operating profit margin, net profit margin, return on assets,
and return on equity.
-
-
-
-
-
2.3. Segmented Financial Ratio Analysis
Segmented analysis is a tool that helps management understand which segment of business are
performing well by comparing it profitability by using the common size analysis (Gittman and
Zutter, 2012). By using the the common size analysis, the income statement of each segments
could be analyzed using its percentage of sales.
2.4. Dupont Analysis
This method could analyze the firm’s financial statements and their condition by consolidating the
income statement and balance sheet into a calculation of profitability, return on asset (ROA) and
return on equity (ROE). The upside of the DuPont analysis is that it permits the firm to break down
its financial condition into data of its profit-on-sales component, its efficiency-of-asset component,
and use-of-financial-leverage component.
3. Method
3.1. Problem Identification
There are three main purposes of this study. 1) To examine the PT Blue Bird Tbk. financial
performance 2) To recommend the strategy(s) that can be recommended to improve the financial
performance of PT Blue Bird Tbk.
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3.2.Literature Review
There are several literature references that will be used for this study. Literature reviews consist
of theories, tools and models from financial experts, which will support this study by providing
the basic information about the problems. The theories and tools will be taken from books, journals
and papers that are mentioned in related research and the reference section. The use of these
methods and tools will be used to assess PT Blue Bird financial performance and produce
conclusions and recommendations.
3.3.Data Gathering
The data used for this research is quantitative secondary data obtained from the annual reports of
PT Blue Bird. The data obtained from the company will then be compared with the data obtained
from benchmark companies in Indonesia’s passenger land transportation companies. All of these
benchmark companies have to satisfy the following criteria:
1. Is publicly traded in the Indonesia Stock Exchange.
2. A public passenger land transportation company.
3. Have a major segmentation with over 50% of their total revenue in the taxi segment and/or bus
and car rental segment.
4. Audited financial reports of the year 2017 - 2021 are available.
3.4. Data Processing
After the secondary data has been gathered, it will be processed through a couple of methods. The
approach of the study is through financial ratios of PT. Blue Bird, Tbk and other passenger land
transportation companies. The financial ratios consist of liquidity ratio, solvability ratio, activity
ratio, market ratio and profitability ratio. This study was based on published financial data for PT.
Blue Bird, Tbk. for the period 2017-2021.
3.5. Data Analysis
The data processed will be analyzed using the descriptive financial ratio by measuring, describing
and analyzing the financial performance to reach the objective. The researcher will be using the
financial ratios (Liquidity, Activity, Debt, and Profitability Ratio), DuPont analysis, and
segmented financial ratio to know the factors affecting the company’s financial performance.
Using this approach will help the researcher to analyze the factors that affect the company’s
financial performance the most and could help to draw conclusions and strategy to plan.
3.6. Conclusion and Recommendation
The findings from the data processing and analysis will be examined and interpreted to form a
cohesive and insightful information. The resulting conclusion will provide recommendations of
appropriate strategy(s) for PT Blue Bird's management.
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4. Results and Discussion
4.1 Financial Ratio Analysis
Table 4.3: Combined Approach of PT. Blue Bird, Tbk
FINANCIAL RATIO
2017
2018
2019
2020
2021
LIQUIDITY RATIOS
Current Ratio
176.91%
174.28%
124.59%
194.04%
241.84%
96.74%
88.21%
91.51%
72.03%
227.32%
Cash Ratio
108.80%
93.64%
61.44%
124.85%
167.36%
37.00%
37.28%
34.97%
27.61%
65.12%
ACTIVITY RATIOS
Average Collection Period
22.3
25.9
27.7
44.8
50.6
126.0
125.3
108.3
288.0
660.9
Total Asset Turnover
64.51%
60.66%
54.52%
28.22%
33.66%
37.12%
28.48%
30.83%
24.66%
27.79%
DEBT RATIOS
Debt Ratio
24.33%
24.30%
27.16%
27.82%
21.98%
47.90%
60.16%
67.70%
93.15%
35.89%
Debt to Equity Ratio
32.16%
32.10%
37.28%
38.54%
28.18%
203.95%
2.90%
14.10%
28.38%
82.26%
PROFITABILITY RATIOS
Gross Profit Margin
27.07%
27.96%
27.06%
16.34%
22.24%
10.80%
-483.66%
-136.28%
-61.40%
-23.47%
Operating Profit Margin
13.50%
13.23%
9.19%
-11.09%
-0.73%
-22.16%
-791.15%
-258.41%
-107.19%
-72.07%
Net Profit Margin
10.17%
10.91%
7.80%
-7.97%
0.39%
-29.10%
-2221.96%
-278.13%
-73.38%
510.93%
Return on Assets
6.56%
6.62%
4.25%
-2.25%
0.13%
-3.02%
-13.06%
-10.49%
-10.93%
38.66%
Return on Equity
8.67%
8.74%
5.84%
-3.12%
0.17%
-34.70%
29.97%
14.14%
-7.94%
46.03%
BIRD Ratio
Average Ratio
The combined approach above greatly helps the researcher to simplify the financial ratio of the
company. It combines the previous two approaches by averaging the financial ratios of the
industry. In order to add more visualization in each of the data, below are the descriptive analysis
in each of the ratio categories.
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Figure 4.1: Liquidity Ratio
Looking further to the liquidity ratios, PT Blue Bird Tbk remains constantly higher than the
industry in the past few years, even before the covid 19 pandemic both of the current ratio and
cash ratio is still high. Staying in the high liquidity is really beneficial for the company to face the
uncertainty during the pandemic, however in the long-term it is not beneficial as the asset could
be used to invest elsewhere to generate a higher return. This could become an additional
consideration towards the company’s management as if they could lessen their liquidity ratios and
take more risks to generate more profit. Especially with the transportation industry that is heavily
changing in the past few years, the development in technology is especially important to survive
in the industry.
Figure 4.2: Activity Ratio
For the activity ratios, the company once had a good average collection period in 2017 to 2019,
but it changes in 2020 upwards when the ratio is increased almost two times before the pandemic.
It indicates that the company could not maintain their payment collections, even though it is still
relatively accepted and also a way to keep the customers loyal. For the total asset turnover, the
company performed really well from 2017 to 2019. However, it shows the downward trend
especially in 2020 where the company significantly decreased for about 26.3%, nearly half of the
previous year’s ratio. It shows that the company couldn’t maintain their efficiency in managing
their assets to generate revenue. After looking further, the reason it goes down so much is mainly
because the annual sales of the company are also being cutted down by half from the previous
year. Even though both of the ratio is still considered better than the industry average, the company
should maintain their ratio to perform well.
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Figure 4.3: Debt Ratio
In the past five years, PT Blue Bird had managed its debt to asset ratio stable below the industry
average. Even though the casualties of their competitor managed to become the industry average
is unstable, it belows the average industry which means that the company wants to maintain a low
risk. This was a very good response during this pandemic era, but in the long term it couldn’t
sustain the changes of the industry.
Figure 4.4: Profitability Ratio
For the profitability ratios from 2017 to 2019, PT Blue Bird Tbk is still above the industry average,
even though there is one company that is near bankruptcy. However, by excluding PT Express
Transindo Utama in the calculation, it will show that Blue Bird profitability is lower than the
average.but when it comes to these unexpected things like pandemic, the company could be more
prepared to face the challenges and higher than the industry average. Even if the company’s net
profit margin, ROA, and ROE is still above the industry, it is still unfortunate that the company
will suffer a loss in 2020 to 2021. Looking more to one of PT Blue Bird Tbk competitors, which
is Batavia Prosperindo Trans, still could maintain their profitability positive in bus and car rental
segmentation. Looking more closely at BPTR financial ratios, the company has a ratio structure
with high debt ratio and low liquidity that might help the company to generate more revenue.
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4.2 Segmented Financial Ratio
4.2.1 Taxi, Bus and Car Rental Segment
Figure 4.5: Operating Profit Margin by Segment
These comparisons are using both the taxi segment and also the bus and car rental segment. As
shown on the figure above, the common size of the bus and car rental segment is far more profitable
than the taxi segment. The difference between segments in 2017 is already high, with Bus and Car
Rental segmentation 16.85% above the taxi segmentation. Event hough that bus and car rental
segment is decrease in 2018, it showed in the 2019 when the taxi segment had a decrease in
operating profit margin by 3.21% that makes the segment stay at 7.4%, on the other hand the bus
and car rental segment have significantly increased by 10.03%. As one of the reasons why the bus
and car rental segment is increase is due to the acquisition of the shuttle company at that time.
Figure 4.6: Direct Cost by Segment
Looking more, the reason why the bus and car rental segment is much more profitable is mainly
because this segment could save more on their direct cost. As shown on the figure, the bus and car
rental segment efficiently save their direct cost from 2017 to 2019 for about one-third of their cost.
Even though it increases in 2020 due to the covid 19 pandemic, it is still below the taxi segment.
However, considering the percentage of taxi segment revenue is more than 70% of the total
revenue, the company should still keep both of the segments and also consider investing more into
the car and bus rental segment because it is more profitable.
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4.2.2 Taxi Segment Comparison
Table 4.4: PT Blue Bird Taxi Segment Common Size Analysis
2017
2018
2019
2020
2021
BIRD
TAXI
BIRD
TAXI
BIRD
TAXI
BIRD
TAXI
BIRD
TAXI
Net Revenue
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Direct Cost
75.81%
-
158.54%
74.57%
-
179.27%
75.51%
-
218.93%
85.93%
-
443.03%
80.53%
-
309.37%
Gross Profit
24.19%
258.54%
25.43%
279.27%
24.49%
318.93%
14.07%
543.03%
19.47%
409.37%
Operating
Expense
13.63%
67.06%
14.82%
45.26%
17.09%
76.95%
27.94%
84.81%
22.64%
135.79%
Operating
Profit
10.57%
191.48%
10.62%
234.01%
7.40%
241.98%
-13.87%
458.21%
-3.17%
273.57%
Using the common size analysis to assess the segmented financial condition of PT Blue Bird and
its competitor PT Express Transindo Utama (TAXI) could be seen that BIRD is superior to their
competitor as TAXI keeps suffering loss. However, for the BIRD itself, the proportion of their
COGS and operating expenses is very high, which around 75% of their sales contributed to their
direct cost.
4.2.3 Bus and Car Rental Segment Comparison
Table 4.5: PT Blue Bird Bus and Car Rental Segment Common Size Analysis
2017
2018
2019
2020
2021
BIRD
BPTR
BIRD
BPTR
BIRD
BPTR
BIRD
BPTR
BIRD
BPTR
Net
Revenue
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Direct Cost
59.31%
54.68%
61.03%
54.68%
62.73%
53.54%
77.29%
59.07%
69.94%
63.72%
Gross Profit
40.69%
45.32%
38.97%
45.32%
37.27%
46.46%
22.71%
40.93%
30.06%
36.28%
Operating
Expense
13.28%
16.38%
14.67%
16.38%
21.38%
12.12%
26.83%
12.58%
24.44%
13.56%
Operating
Profit
27.41%
28.94%
24.31%
28.94%
15.89%
34.34%
-4.12%
28.36%
5.62%
22.73%
Figure 4.3: Combined Approach of Bus and Car Rental Segmented PT. Blue Bird, Tbk
For the bus and car rental segment, the common size analysis of the company is below the BPTR,
ranging from their net revenue to the operating profit. Thus, it means that the company could still
develop their segment in the car and bus rental segmentation.
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4.3 DuPont Analysis
The DuPont analysis breaks down the Return on Equity into three components, which are net profit
margin that indicates the operating efficiency, total asset turnover that measures the efficiency of
the asset, and lastly is equity multiplier that shows the financial leverage of the company. All these
three aspects will be observed which factors have a significant impact in the firm’s financial
performance.
Table 4.6: 3-Step DuPont Analysis
Year
Net Income / Sales
Sales / Total Assets
Total Assets /
Common Stock Equity
ROE
2017
10.17%
64.51%
132.16%
8.67%
2018
10.91%
60.66%
132.10%
8.74%
2019
7.80%
54.52%
137.28%
5.84%
2020
-7.97%
28.22%
138.54%
-3.12%
2021
0.39%
33.66%
128.18%
0.17%
As seen on the figure above, PT Blue Bird Tbk’s return on equity has a downward tendency in the
last four years, and starts significantly to drop in 2019 and 2020. Looking further to the factors
that caused the decrease, it could be shown that both net operating margin and total asset turnover
has a part in it, even though their financial leverage multiplier is increasing at the moment.
In 2019, the company lost their ROE by 2.91% with asset turnover ratio as their main factors. The
company is inefficiently generating profit by using their assets, which makes the total asset
turnover decrease by 6.14%. This decrease could be the result of the company’s action to acquire
cititrans as a leading shuttle company, which makes their assets significantly increase. Looking
further at the company’s sales that had been analyzed in the previous analysis, the decrease in
annual sales also contributed to taxi segmentation with their other segment profitability increasing.
This also resulted in the net operating profit margin decrease by 3.11%. Even though the company
has been increasing their financial leverage multiplier by 5.18%, it could not hold s the decreases
in return on equity.
In 2020, the company lost their return on equity by 8.95% mainly due to the global pandemic that
affected most of the industry. Again, total asset turnover had the most impact to the return on
equity with the decreasement by 26.30%. However, it is not the increase of total assets causing
this situation, but because of the annual sales that were nearly half sized than previous year.
Looking at the previous analysis, both of the segments were at loss with the taxi segment having
a larger contribution to the annual sales. This situation also resulted in the net profit margin also
decreasing by 15.77% with only a slight increase of financial multiplier leverages at 1.26%.
Fortunately, in 2021, the company started to regain back their return on equity by 0.17%. Even
though it has nearly reached zero percent, it could become the starting point of the firms. The
decrease in financial leverage multiplier becomes one of the reasons why it is not significantly
increasing, because the ratio is decreasing by 10.36%. However, their net profit margin has
increased by 8.37% and also their total asset turnover ratio increased by 5.44%, which makes the
firm regain their positive ROE.
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In overall, the company’s total asset turnover ratio becomes the most significant factor that affects
the changes in their return on equity. It is all the results of the company’s action to acquire the
other company in 2019 and also the external factors such as global pandemic in 2020 that turns
down the company’s annual sales.
5. Conclusion and Recommendation
Following the data analysis, the researcher will summarize the financial highlights, consisting of
conventional and segmented financial statements of PT. Blue Bird, Tbk. in comparison to other
Passenger Land Transportation in Indonesia. The company’s financial performance has moderate
financial performance. Especially in terms of liquidity and debt aspects compared to the other
companies. The company could survive especially in the uncertainty times like covid-19
pandemic, the company could manage their liquidity to pay their short-term obligations and also
the debt ratio is still small compared to the other companies. In terms of activity, the company is
still below the average of the industry and needs to be improved. And as for the profitability
aspects, the company is below the other competitors such as BPTR and WEHA, thus the company
could consider increasing the debt ratio to fund their technological innovation, as the industry is
highly changing.
Comparing the two business segments of the companies, which are the taxi segment and also bus
and car rental segment, the bus and car rental segment is superior in terms of profitability,
especially using the common size analysis that analyzes the percentage of each income statement.
However, comparing this segment to the top companies, which is BPTR, PT. Blue Bird Tbk, is
still below their ratio and still could be improved.
From this study, the authors have several recommendations for PT. Blue Bird Tbk to improve their
financial performance, which are stated as follows.
• Increase the Debt Ratio
The increase in the debt ratio could be an opportunity to the firms as the company could spend
investment to the other profitable business such as technological aspects to the taxi segment and
other collaborations more to the bus and car rental segment. The taxi segment in the long-term will
not produce much and even become the sign of bankruptcy if there is no improvement in the
technological aspect, especially if there are challenging ride-hailing companies that have the same
target market with the companies.
• Investment on the Technological Development on the Taxi Segment
The technological innovation is a must if the company wants to run in a long-term aspect,
especially with the two big competitors from the ride hailing industry that serves the same target
market with the taxi industry. Besides that, PT. Blue Bird has over 70% of their total revenue
comes from the Taxi segment, so it is such a pity to leave the industry. Technological development
also could come from the collaboration with the existing ride-hailing companies, such as gojek, to
get a win-win solution for both companies.
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• Considering More Investment on the Bus and Car Rental Segment
With the fact that the bus and car rental segmentation is more profitable compared to the taxi
industry using the common size analysis, the company should consider adding more and increasing
the investment to this segment.
• Manage the Cost and Revenue More Efficiently
Based on the common size analysis, the percentage of COGS is very high, or about 75% of the
total revenue comes down to the COGS. Thus, it will affect the gross profit margin and also the
net profit margin. Therefore, the company should consider changing the cost structure more
efficiently, whether to increase the service price or the COGS. As a benchmark, the company
should look up to the ride hailing companies price mechanism and algorithm.
References
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Palepu, K.G., Healy, P.M., Wright, S., Bradbury, M. and Coulton, J., 2020. Business analysis and
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IDENTIFYING IMPORTANT ELEMENTS IN TECHNOLOGY
AS A TEACHING TOOL FOR ETHICS EDUCATION IN
SCIENCE THROUGH THE FUZZY DELPHI METHOD
Mohd Salim Mohamed1* and Tan Zheng Hao2
1 2 Department of Science and Technology Studies, Faculty of Science, Universiti Malaya, Kuala
Lumpur, MALAYSIA
*Corresponding author: mohdsalim@um.edu.my
Abstract: Ethics education is very important for science students to cultivate their knowledge and
awareness of ethical issues in science. To increase the relevance of this subject to science students,
teaching and learning that emphasizes the use of technology is seen as one of the important ways
to achieve the goals of ethics education. This study aims to identify the elements needed in
integrating technology as a tool in ethics education using the Fuzzy Delphi method and the
participants of this study involved 23 experts in ethics education from various universities in
Malaysia. It is found that expert consensus on 7 out of 8 elements for technology in learning, is
more than 75% with a threshold value (d) < 0.2. This suggests that the elements of technology in
learning are needed in ethics education in science as they probe explicitly into SMEs’ experience
of teaching with technology, including the challenges that SMEs face in adaptation to the use of
technology as well as meeting Generation-Z students’ learning preference.
Keywords: Ethics education, Fuzzy Delphi, Instructional design, Technology in learning.
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IMPROVING OPERATIONAL COST PLANNING CASE STUDY:
CV AN-NAKHL
Dede Syarif Hidayat1*
1 School of Business and Management, Institut Teknologi Bandung, Bandung, INDONESIA
*Corresponding author: dede_syarif@sbm-itb.ac.id
________________________________________________________________________________________
Abstract: Operational cost planning is one of the most important aspect of the business, which
determine strategies that company will execute in the context of adopting strategies and predicting
the costs that will be assigned to long-term plans. An appropriate operational cost planning could
be implemented by calculating the operating costs with appropriate costing method and by
accurately forecasting future demands. CV An-Nakhl is a company running in the mining industry
specializing in trass and limestone. The company was established in 2001 with the activities of
mining and distributing directly from the mining sites to the partners. The company is one of the
pioneers of trass and limestone mining companies in Cirebon. Their customers are PT Indocement
Tunggal Prakasa, PT Waskita Toll Road, etc. CV An-Nakhl facing a problem with their
operational cost planning, their planning oftenly miscalculated. The problem occurs because they
do not have appropriate operational cost planning method. The objectives of this research are to
analyze the root cause of the problem and to propose the most appropriate operational cost
planning method, which could help the company to calculate their operational cost properly. The
methodology used in this research is the combination of quantitative and qualitative approach.
This research collects data from primary and secondary data. Primary data is from interviews
with the stakeholders of the company and secondary data is from the previous sales, revenue,
operational cost budget & realization, and types of operational costs. In this research, the data is
analyzed using ABC costing method and time series forecasting method. The result of this research
shows that by implementing appropriate operational cost planning method that was proposed, CV
An-Nakhl could calculate precisely for their recent operational cost and for the future operational
cost.
Keywords: Operational Cost Planning, ABC Costing, Demand Forecasting.
1. Introduction
1.1 Background
A company is established with the objective of generating a profit, the profit gained is aimed so
that the company's sustainability can be ensured and the company's development can continue to
be enhanced. To carry out these aims, every firm has to pay attention, especially planning and
controlling operational costs in order to enhance profits. The company will plan and control the
factors deemed crucial to accomplishing the objectives. Budget planning is an essential part of
company planning and controls (Karno and Shinta, 2009). It is considered that budget planning
can increase the performance of an organization.
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Every company evaluates the sustainability of life company on a regular basis in order to identify
the state of a healthy company and keep the company alive. This is commonly referred to as
corporate performance. A company's performance is understood as a result of managerial
activities. The outcomes of these management actions are then utilized as a metric or benchmark
to judge the performance of a company's management in terms of meeting the goals that have been
set within a specific time frame. Financial and non-financial strategies or approaches are used to
assess company performance. Firm performance is defined as what a company generates in a
certain time period while adhering to specified criteria. Business performance relates to how
market-oriented and profit-oriented the firm is (Rahadi, 2012).
The new accounting concept employs an Activity Based Costing Method (ABC Method) to
address the issues raised by traditional methodologies. According to Jawaharlal (2009), ABC is a
costing method in which costs are first traced to activities and subsequently to goods. The ABC is
a costing approach that focuses on the actions that are conducted to create things. The focus
locations for cost buildup become activities. This costing method posits that costs are incurred by
activities and that goods drive the demand for activities. Products are charged based on the number
of times they are used in each activity.
CV An-Nakhl is a company running in the mining industry specializing in trass and limestone.
The company was established in 2001 with the activities of mining and distributing directly from
the mining site to the clients. The company is one of the pioneers of trass and limestone mining
companies in Cirebon. Their customers are PT Indocement Tunggal Prakasa, PT Waskita Toll
Road, etc. As we can see in figure 1.3, the company’s mining site is located in Cupang, Cirebon,
which is known as the best quality trass and limestone site in Cirebon. CV An-Nakhl consistently
endeavors to provide its clients with excellent items at affordable prices. To keep this status, CV
An-Nakhl must be mindful of its operational cost planning and control. The objective is for the
business to maximize earnings that can be reinvested in the business and create advantages for the
owner (Roni Setiawan, 2015).
The company's operational cost planning control might be considered to be inadequate. This is
owing to the fact that operational cost planning is based only on the estimates of the board of
directors, and that estimation does not represent real operational costs. This issue is inseparable
from the lack of good corporate governance, which has an impact on the operational cost planning
they have made, their planning is imprecise, therefore operational costs may exceed or fall short
of forecasts.
1.2 Problems Formulation
From the background and analysis of the problem statement, it could be identified the problems
that are dealt with. So as could be more focused more directed in the operational cost planning at
CV An-Nakhl. Several questions could be formulated as follows:
1. What is the root cause of the miscalculation of operational cost planning in CV An-Nakhl?
2. What is the most appropriate operational cost planning for CV An-Nakhl?
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2. Theoretical Review
2.1 Operational Cost Planning
According to Rudianto (2009), operational cost planning is the process of determining the
programs that an organization will execute in the context of adopting strategies and predicting the
costs that will be assigned to long-term programs. Moreover, according to Supriyono (2007),
operational cost planning encompasses all spending plans associated with the distribution and sale
of a company's goods, as well as operational expenditures.
According to Mulyadi (2010), operational costs are costs that are not directly associated with a
company's goods but are related to the company's daily operational activities. Operational costs
consist of direct costs of goods sold (COGS) and other operational expenditures, which include
rent, wages, and other operational costs, as well as raw materials and maintenance costs.
Operational cost should not include non-operational costs associated with finance, such as interest,
investments, or currency conversion (Murphy, 2022).
2.2 ABC Method
Activity-based costing (ABC) refines a costing system by recognizing individual actions as the
primary cost object (Horngren et al, 2006). An activity is a one-time event, task, or unit of labor
that has a specific goal. For example, product design, machine setup, machine operation, and
product distribution. The ABC system calculates individual activity costs and assigns costs to cost
objects such as items and services based on the activities required to manufacture each product or
service.
according to Jawaharlal (2009), ABC is a costing method in which costs are first traced to activities
and subsequently to goods. The ABC is a costing approach that focuses on the actions that are
conducted to create things. The focus locations for cost buildup become activities. This costing
method posits that costs are incurred by activities and that goods drive the demand for activities.
Products are charged based on the number of times they are used in each activity.
According to the definition above, the ABC model is a model that imposes a production costing
activity-based cost necessary to manufacture each product or service. The ABC method
management system is supposed to assist minimize or even eliminate non-value-added tasks,
allowing the organization to provide its products at competitive costs.
2.3 Cost Object
According to Hansen and Mowen (2005), a cost object is any item where the cost is measured and
invoiced, such as goods, customers, departments, projects, activities, and so on. According to
Rajasekaran (2010), a cost object is anything for which a distinct cost measurement is desired.
While According to Carter (2009), the activities might include cost targets, a product, a batch of
identical units, client orders, contracts, product lines, process departments, divisions, projects, and
strategic objectives. According to certain definitions, a cost object is anything that is amassed for
management purposes.
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2.4 Cost Driver
Cost driver, according to Blocher et al (2011), is a factor that causes variations in the cost of an
activity. According to Jawaharlal (2009), a cost driver is a cost-generating activity. A cost driver
is a variable, such as activity or volume, that has little impact on costs (over a given period). That
is, there is a cause and effect link between changes in the level of activity or volume and changes
in the overall costs of the cost object. While Rajasekaran (2010) defines a cost driver as a variable
(level of activity, volume, etc) that has a casual effect over a given time range. According to certain
definitions, a cost driver is anything that is utilized as the foundation for a change in overall costs
for a cost object.
2.5 Forecasting
Forecasting is a major tool in successful and efficient planning, particularly in the business world.
Forecasting has a direct influence in external events that are often outside management's control,
such as the economy, customers, competitors, government, and so on. According to
Murahartawaty (2009), forecasting is the use of past data from a variable or a set of variables to
estimate its value in the future. Forecasting, according to Heizer & Render (2009), is the art and
science of predicting future occurrences. This may be accomplished by using previous data and
projecting it into the future using a mathematical model. Furthermore, it might be a subjective
intuitive forecast. It is also possible to use a combination of mathematical models suited to a
manager's good judgment.
2.6 Single Exponential Smoothing Method
Single Exponential Smoothing method is a method that shows weighting decreases exponentially
with observed values older (Tolstikova et al, 2015). Later, the value is given a substantially higher
weight than the value of observation is longer (Tonjang & Thawesaengskulthai, 2019). This
approach computes an exponential weighted moving average of all previous observations' values
(Ulkhaq et al, 2018). This trend and season have no effect on this strategy. The formula is as
follows:
Ŷ + 1 = + (1 − ) Ŷ (1)
Where:
Ŷt+1 = value forecast for the next period
Yt = demand for period t
Ŷt = forecast value for period t
α = smoothing weighting factor (0 < α < 1)
2.7 Measuring Forecast Method
There are several methods for calculating the overall error in forecasting. According to Heizer &
Render (2011), this calculation may be used to evaluate various forecasting models, monitor
forecasts, and confirm that forecasts are operating effectively. Three of the most used calculations
are Mean Absolute Deviation (MAD), Mean Squared Error (MSE), and Mean Absolute Percentage
Error (MAPE).
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2.8 Mean Absolute Deviation (MAD)
Mean absolute deviation (MAD) is a measure of variability that represents the average distance
between observations and the mean. MAD utilizes the data's original units, which facilitates
interpretation. Greater values indicate a greater distance between the data points and the mean.
Where:
X = Actual
µ = Forecast
N = Number of periods
2.9 Mean Squared Error (MSE)
The mean squared error (MSE) quantifies the error in statistical models. It measures the average
squared deviation between observed and projected values. When there are no errors in a model,
the MSE equals 0. As model inaccuracy grows, its value increases.
Where:
yi = The ith observed value.
i = The corresponding predicted value.
n = The number of observations.
2.10 Mean Absolute Percentage Error (MAPE)
MAPE is a relative error measure. MAPE is typically more relevant than MAD since MAPE
indicated the percentage error of the predicting result of actual demand for a certain time that
would offer information on whether the percentage error is too high or too low. MAPE may be
stated mathematically as follows:
2.11 Qualitative Method
Qualitative forecasting is a method of making predictions about a company's finances that uses
judgment from experts. Expert staff does qualitative forecasting by discovering and assessing the
link between current operational knowledge and projected future operations. This enables the
experts to predict how a company will do in the future based on their thoughts and information
gathered from other sources, such as employee surveys and market research.
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3. Research Method
This research consists of six stages: The Preliminary Study, Problem Identification, Literature
Review, Data Collection, Data Analysis, and Conclusion and Recommendation. It begins with
preliminary study and identifies the broad difficulties that led to problem identification. The
research is then supported by a literature review of pertinent prior research. The next step is data
collection, which includes interviews with the Board of Directors, staff, and historical data of CV
An-Nakhl. After collecting all the necessary data for the study, the following stage is to analyze
the data that could result in a solution for the company's problem. The final stage is to draw
conclusions and give recommendations for the business.
4. Result and Discussion
4.1 Existing Operational Cost Calculation
In this stage of this research, the author will calculate total cost incurred for each ton of products
with existing operational cost planning. By using existing sales in order to see the effectiveness of
the existing operational cost planning in Q4 2021.
Table 1: Existing Operational Cost Calculation in Q4 2021
Description
Trass
Limestone
Material Cost
-
-
Employee Cost
Rp36,325,000
Rp36,325,000
Loading Cost
Rp238,962,982
Rp277,952,018
Vehicle Cost
Rp889,560,000
Rp1,379,600,000
Unloading Cost
Rp34,394,138
Rp40,005,862
Other Cost
Rp10,431,500
Rp10,431,500
Total
Rp1,209,673,620
Rp1,744,314,380
As we see can in the Table 4.2., material cost from the two products is zero because there is no
material cost since the mining site is owned by the company. Total cost for trass for Q4 2021 is
Rp1,209,673,620 and total cost for limestone for Q4 2021 is Rp1,744,314,380.
4.2 Operational Cost Calculation with ABC Method
a. Cost Classification Based on Activities
The first stage in implementing the ABC method is to examine the company's activity of
identifying resource costs and activities. To determine the cost of resources on a variety of
activities, all activities must be classified according to how they utilize resources. Table 4.4. shows
the cost classification based on activities.
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Table 2: Cost Classification Based on Activities of CV An-Nakhl
No
Level Activity
Type of Cost
Amount of Cost
Total Cost
1
Unit Level Activity
Vehicle fuel cost
Rp1,455,290,000
Vehicle driver salary
Rp813,870,000
Heavy equipment fuel cost
Rp84,000,000
Heavy equipment operator salary
Rp62,790,000
Weighing cost
Rp23,721,600
Cooperative fee
Rp76,968,000
Total
Rp2,516,639,600
2
Batch Level Activity
Labour salary
Rp72,650,000
Security fee
Rp15,000,000
Consumption fee
Rp60,000,000
Total
Rp147,650,000
3
Facility Level Activity
Vehicle maintenance cost
Rp66,000,000
Heavy equipment maintenance cost
Rp78,000,000
Vehicle depreciation cost
Rp120,000,000
Heavy equipment depreciation cost
Rp35,000,000
Total
Rp299,000,000
Total Operational Cost
Rp2,963,289,600
As we can see in Table 4.4., the author divided the cost based on the 3 activity which are:
a. Unit level activity
Unit level activity is cost that is highly dependent on the units produced. The more products
that are produced, the more costs will be incurred. The type of costs that categorized as
unit level activity are vehicle fuel cost, vehicle driver salary, heavy equipment fuel cost,
heavy equipment operator salary, weighing cost, and cooperative fee.
b. Batch level activity
Batch level activity is cost that is highly independent and not related to the units produced.
The type of costs that categorized as batch level activity are labour salary, security fee, and
consumption fee.
c. Facility level activity
Facility level activities are activities carried out by the company, but are not directly related
to the product. The type of costs that categorized as facility level activity are vehicle
maintenance cost, heavy equipment maintenance cost, vehicle depreciation cost, and heavy
equipment depreciation cost.
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b. Determine Cost Pool and Cost Driver
Table 3: Cost Pool and Cost Driver Classification
Cost Pool Grouping
Cost Driver
Cost Pool
Unit Level Activity
Pool 1
Vehicle driver salary
Number of products sold
Rp813,870,000
Vehicle fuel cost
Rp23,721,600
Heavy equipment fuel cost
Rp84,000,000
Heavy equipment operator salary
Rp62,790,000
Weighing cost
Rp1,455,290,000
Cooperative fee
Rp76,968,000
Batch Level Activity
Pool 2
Labour salary
Total working hours
Rp72,650,000
Security fee
Rp15,000,000
Consumption fee
Rp60,000,000
Facility Level Activity
Pool 3
Vehicle maintenance cost
Total machine operating hours
Rp66,000,000
Heavy equipment maintenance cost
Rp78,000,000
Vehicle depreciation cost
Rp120,000,000
Heavy equipment depreciation cost
Rp35,000,000
Vehicle depreciation cost
Rp120,000,000
Heavy equipment depreciation cost
Rp35,000,000
Based on the table above, the author divided the cost pool into 3 pool and driver which are:
1. Pool 1
Pool 1 is for the cost which are dependent on the number of products sold, the costs are
vehicle driver salary, vehicle fuel cost, and weighing cost.
2. Pool 2
Pool 2 is for the cost which are dependent on the total operational hours, the costs are heavy
equipment fuel cost, heavy equipment operator salary, labour salary, cooperative fee,
security fee, and consumption fee.
3. Pool 3
Pool 3 is for the cost which are dependent on the total machine operational hours, the costs
are vehicle maintenance cost, heavy equipment maintenance cost, vehicle depreciation
cost, and heavy equipment depreciation cost.
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c. Calculate the Pool Rate
Table 4: Pool Rate Calculation
Activity
Cost Pool
Total Cost Pool
Cost Driver
Pool Rate
A
B
C
D
E = C/D
Vehicle driver salary
1
Rp2,516,639,600
64142
(ton of products sold)
Rp39,235
Vehicle fuel cost
Heavy equipment operator salary
Heavy equipment fuel cost
Weighing cost
Cooperative fee
Labour salary
2
Rp147,650,000
702
(total working hours)
Rp210,328
Security fee
Consumption fee
Vehicle maintenance cost
3
Rp299,000,000
624 (total machine operating hours)
Rp479,167
Heavy equipment maintenance cost
Vehicle depreciation cost
Heavy equipment depreciation cost
As we can see on Table 4.6., the author has calculated the pool rate, here are the calculation:
1. Total cost pool 1 is Rp2,516,639,600 with the cost driver is 64,142 (ton of products sold) and
the pool rate which calculated by dividing total cost pool with the cost driver is Rp39,235.
2. Total cost pool 2 is Rp147,650,000 with the cost driver is 702 (total working hours) and the
pool rate which calculated by dividing total cost pool with the cost driver is Rp210,328.
3. Total cost pool 3 is Rp299,000,000 with the cost driver is 624 (total machine operating hours)
and the pool rate which calculated by dividing total cost pool with the cost driver is Rp479,167.
d. Assigning Activity Costs to Cost Objects
The assignment of activity costs to cost objects is the process of calculating the cost of production
based on the consumption of each product for the activity. This stage is the last stage in determining
the cost of production using the ABC method. The imposition of operational costs for each cost
driver is actually by each of the many types of products by each cost pool, so that the operational
costs are obtained for each type of product.
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1. Trass
Table 5: Total Trass Operational Cost
Activity
Cost Pool
Pool Rate
Cost Driver
Total
A
B
C
D
E = C X D
Vehicle driver salary
1
Rp39,235
29,652
(ton of products sold)
Rp1,163,409,270
Vehicle fuel cost
Heavy equipment operator salary
Heavy equipment fuel cost
Weighing cost
Cooperative fee
Labour salary
2
Rp210,328
325
(total working hours)
Rp68,256,646
Security fee
Consumption fee
Vehicle maintenance cost
3
Rp479,167
252 (total machine operating hours)
Rp120,945,784
Heavy equipment maintenance cost
Vehicle depreciation cost
Heavy equipment depreciation cost
Total Operational Cost
Rp1,352,611,701
As we can see on Table above, the author has calculated the total operational cost for trass. Total
cost for pool 1 is Rp1,163,409,270, then total cost for pool 2 is Rp68,256,646, and last but not
least, total cost for pool 3 is Rp120,945,784. So, the total operational cost for trass is
Rp1,352,611,701.
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2. Limestone
Table 6: Total Limestone Operational Cost
Activity
Cost Pool
Pool Rate
Cost Driver
Total
A
B
C
D
E = C X D
Vehicle driver salary
1
Rp39,235
34,490
(ton of products sold)
Rp1,353,230,330
Vehicle fuel cost
Heavy equipment operator salary
Heavy equipment fuel cost
Weighing cost
Cooperative fee
Labour salary
2
Rp210,328
377
(total working hours)
Rp79,393,354
Security fee
Consumption fee
Vehicle maintenance cost
3
Rp479,167
372
(total machine operating hours)
Rp178,250,000
Heavy equipment maintenance cost
Vehicle depreciation cost
Heavy equipment depreciation cost
Total Operational Cost
Rp1,610,873,683
As we can see on Table above, the author has calculated the total operational cost for limestone.
Total cost for pool 1 is Rp1,353,230,330, then total cost for pool 2 is Rp79,393,354, and last but
not least, total cost for pool 3 is Rp178,250,000. So the total operational cost for limestone is
Rp1,610,873,683.
e. Cost Comparison Between Existing Method with ABC Method
Table 7: Total Cost Incurred for Each Ton of Products with ABC Method
Product
Total Operational Cost
Gap
Existing Method
ABC Method
Trass
Rp1,209,673,620
Rp1,352,611,701
-Rp142,938,081
(Undercosting)
Limestone
Rp1,744,314,380
Rp1,610,873,683
Rp133,440,697
(Overcosting)
Total
Rp2,953,988,000
Rp2,963,485,384
-Rp9,497,384
(Undercosting)
From the Table 7, it can be seen that there is a difference in the results between the calculation of
operational costs using the existing method and the calculation of operational costs using the ABC
method. Trass is experiencing under costing, where its company's costs are too low at
Rp142,938,081, whereas limestone is experiencing over costing, wherein the company's costs are
too high at Rp133,440,697. The existing total operational costs experienced under costing of
Rp9,497,384 when compared with calculations using the ABC method.
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This comparison illustrates the impact of utilizing standard cost accounting with a single cost
driver to the ABC method, which charges activity-based expenses using several cost drivers.
Improper cost allocation will result in cost distortion. The application of operational costs in
varying proportions for each product is the source of the cost distortion. The existing method tends
to employ a general method that simply charges for working hours, whereas the ABC method uses
many cost drivers, including working hours, machine operating hours, and total products sold. In
addition, the authors incorporate cost depreciation into the proposed ABC method, as the company
did not calculate cost depreciation previously.
4.3 Single Exponential Smoothing
1. Trass
Figure 1: Single Exponential Smoothing Forecast Result for Trass
Figure above compares the results of the forecast using a single exponential smoothing method to
the actual sales of trass from Q1 2019 to Q4 2021. The alpha used in this method is 0.135674,
which Minitab Software acquired. The calculation result of the single exponential smoothing
methd can be seen in Appendix. The single exponential smoothing forecasting method's error
summary is displayed below:
Table 8: Error Rate Evaluation of Single Exponential Smoothing Method for trass
MAD
MSE
MAPE
7310
68,482,704
35%
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2. Limestone
Figure 2: Single Exponential Smoothing Forecast Result for Limestone
Figure 2 compares the results of the forecast using a single exponential smoothing method to the
actual sales of limestone from Q1 2019 to Q4 2021. The alpha used in this method is 0.168227,
which Minitab Software acquired. The calculation result of the single exponential smoothing
methd can be seen in Appendix. The single exponential smoothing forecasting method's error
summary is displayed below:
Table 8: Error Rate Evaluation of Single Exponential Smoothing Method for Limestone
MAD
MSE
MAPE
9027
121,505,341
35%
Table 9: Single Exponential Smoothing’s Future Demand Result (In Tons)
Product
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Trass
24,872
24,872
24,872
24,872
Limestone
31,238
31,238
31,238
31,238
As seen in Table 9, the Single Exponential Smoothing results for the quarterly demand for the
future year for both trass and limestone indicate that the demand for the upcoming year is totally
flat. Based on these data, it is evident that the company cannot employ the forecasting method.
Adjustments and recalculations will be required for the findings, which might be performed using
the qualitative method analysis described in the following stage.
4.4 Qualitative Forecasting Method
Each board of directors of CV An-Nakhl were asked to give an assumption on how much the sales
would increase for the upcoming year based on their own opinion considering that the board of
directors are the most informed about the trends in demand for their products. Each board of
director’s assumption will be combined to get an overall demand forecast for the upcoming year.
Here are the answers from each board of directors of CV An-Nakhl:
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Table 10: Assumptions on Future Sales
CEO
20%
CFO
15%
COO
25%
As shown in Table 10, each CV An Nakhl's board of directors has provided an estimate for the
future year's sales growth. The utilized result is the average opinion of the whole board of directors.
After calculating the average of all responses, it was determined that sales of both CV An-Nakhl
products will climb by 20 percent per quarter over the next year. The tables below display the
results of the demand forecast using the Single Exponential Smoothing method, which has been
adjusted and recalculated using the qualitative method under the premise that quarterly sales will
rise by 20%.
1. Trass Table 11: Forecasted Demand of Trass (in Tons)
Period
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Forecast
24,872
29,846
35,816
42,979
2. Limestone Table 12: Forecasted Demand of Trass (in Tons)
Period
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Forecast
31,238
37,486
44,983
53,979
5. Conclusion
The author can provide several conclusions based on the research that has been conducted. These
conclusions answer the research question that were mentioned in the chapter I, and also fulfills all
the objectives that were mentioned as well. Here are the conclusions:
1. CV An-Nakhl is having difficulty with their operational cost planning. Using the Current
Reality Tree (CRT), the author discovered that the underlying cause of the problem is a lack
of appropriate operational cost planning and forecasting method.
2. In this research, the author developed an operational cost planning method based on the ABC
costing method to assist them in accurately calculating their operating costs. It is proven that
the suggested operational cost planning technique is less cost than the existing method. The
author suggests the ABC costing method because it provides precision and dependability in
product cost assessment by concentrating on the cause and effects relationship in cost
incurrence. Using this method, the company could allocate their operational budget more
efficiently into each of their operational activities. In addition, the author also incorporated
cost depreciation into the proposed ABC method, as the company did not calculate cost
depreciation previously.
3. The author also conducted a demand forecasting and applied it to the operational cost planning
that was chosen to provide guidance for the company in order to assist them adopt a more
appropriate operational cost planning. According to the demand forecasting analysis, the best
approach for CV An-Nakhl is a combination of Single Exponential Smoothing and Qualitative
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Method. When compared to other forecasting methods, Single Exponential Smoothing has the
lowest error and a qualitative method applied to make the forecast more accurate.
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MAKLUMBALAS TERHADAP PEMBINAAN STANDARD
OPERASI PROSEDUR (SOP) PENANGKAPAN DAN TAHANAN
INDIVIDU AUTISME
Zuliza Mohd Kusrin1* dan AbRahman Roseliza-Murni2
1 2 Department of Syariah Research Centre, Faculty of Islamic Studies, Universiti Kebangsaan Malaysia, Bangi,
MALAYSIA
*Pengarang penghubung: zuli@ukm.edu.my
Abstrak: Individu autisme dicirikan sebagai mereka yang mengalami kecelaruan perkembangan
neuro di dalam sistem saraf otak yang memberi implikasi terhadap kemahiran hubungan sosial,
defisit komunikasi dan tingkah laku berulangan. Perilaku tersendiri mereka yang melanggar
undang- undang menyebabkan keperluan dibangunkan SOP penangkapan dan tahanan individu
autisme. Walaupun laporan kes pelanggaran kesalahan jenayah yang melibatkan autisme
adalah terpencil namun, bagi menjamin hak mereka, suatu SOP khusus diperlukan agar pihak
Polis DiRaja Malaysia (PDRM) mahupun pegawai penguat kuasa agama (PPA) boleh
melaksanakan bidang tugasnya berdasarkan undang-undang. Matlamat kertas kerja ini
membincangkan perilaku autisme yang berkait dengan pelanggaran undang-undang. Seterusnya
membincangkan maklumbalas pelbagai pihak terhadap keperluan dibangunkan SOP tersebut
dari perspektif pengamal undang-undang iaitu PDRM, penguatkuasa agama, mufti, ahli politik,
para guru Pendidikan khas serta masyarakat awam. Rekabentuk kajian adalah secara analisis
dokumen dan temubual bersama informan. Data terkumpul dianalisis secara diskriptif dan
dipersembahkan secara tematik. Hasil kajian mendapati perilaku autisme yang terkait dengan
melanggar undang-undang seperti mencuri, mencabul kehormatan, berkelakuan tidak sopan di
tempat awam dan membakar bangunan. Informan kajian berpandangan keperluan dibangunkan
SOP Tangkapan dan Tahanan Autisme untuk kegunaan pihak polis dan juga penguat kuasa
agama, agar mereka dapat melaksanakan tanggung jawab secara berpandukan peruntukan
undang-undang yang jelas, menunjukkan keperihatinan pihak berkuasa terhadap jaminan
perundangan golongan autisme dan berkongsi maklumat bersama pihak barisan
hadapan/frontlines, orang awan dan ibubapa mengendalikan autisme dengan cara sepatutnya.
Kata kunci: Autisme, pelanggaran undang-undang, perilaku, SOP Tangkapan dan Tahanan,
PDRM, Pegawai Penguat Kuasa Agama.
1. Pengenalan
Individu autisme mengalami kecelaruan perkembangan-neuro dan menyebabkan kekurangan dari
segi kemahiran sosial dan imaginasi. Situasi ini menjadikan mereka terdedah dan agak cenderung
melanggar undang-undang rentetan sifat perilaku tersendiri mereka yang defisit pergaulan sosial,
obsesi kepada rutin harian dan kurang empati. Terdapat beberapa prilaku salah autisme seperti
perilaku seksual yang menunjukkan kemaluan atau menanggalkan pakaian, menyentuh orang lain
secara tidak sopan, mengintai (Zuraini & Zuliza 2019). Menurut Bisea (2010) remaja autisme
yang membuka pakaian dan mendedahkan kemaluan bukanlah berniat berperilaku kurang sopan
tetapi sebenarnya mereka tidak memahami perbuatan tersebut adalah salah. Ives & Munro (2020)
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selanjutnya menerangkan bahawa perbuatan menunjukkan kemaluan tersebut berpunca daripada
sikap mereka yang tidak pandai mengurus diri dan menjaga kebersihan termasuklah enggan
menggunakan tandas untuk membuang air. Kajian Ruble & Dalrymple (1993) terhadap 100
orang pengasuh kepada individu autisme mendapati 18% daripada mereka menyentuh individu
berlainan jantina secara tidak sopan.
Perlakuan tersebut telah memberi kesan kepada kecenderungan mereka terlibat dengan melanggar
undang-undang (Haskin & Silva, 2006; Claire Kings & Glynis H. Murphy 2014). Terdapat empat
faktor yang mungkin menyebabkan individu dengan autisme menjadi agresif dan melakukan
perbuatan melanggar undang-undang. Pertamanya, sifat individu autisme yang mempunyai
kelemahan berkomunikasi menyebabkan mereka berkemungkinan terdedah untuk dimanipulasi
oleh individu lain (Haskin & Silva, 2006). Keduanya, gangguan kepada jadual rutin harian
menyebabkan mereka menjadi agresif. Ketiganya, keinginan yang mendalam terhadap sesuatu
perkara berkemungkinan mendorongnya melakukan kesalahan bagi mencapai hajatnya (Haskin &
Silva, 2006). Keempatnya, menurut Wing (1981) tahap simpati yang rendah menyebabkan
mereka cenderung melakukan kesalahan undang-undang. Hasil kajian mendapati antara perilaku
autisme yang terkait dengan melanggar undang-undang seperti mencuri, mencabul kehormatan,
berkelakuan tidak sopan di tempat awam, membakar bangunan, menggodam perisian software.
Walaupun laporan kes pelanggaran kesalahan jenayah yang melibatkan autisme adalah terpencil
namun, bagi menjamin hak mereka, suatu SOP khusus diperlukan agar pihak Polis DiRaja
Malaysia (PDRM) mahupun pegawai penguat kuasa agama (PPA) boleh melaksanakan bidang
tugasnya berdasarkan undang-undang. Matlamat kertas kerja ini membincangkan perilaku
autisme yang berkait dengan pelanggaran undang-undang. Seterusnya membincangkan
maklumbalas pihak agensi dan masyarakat terhadap keperluan dibangunkan SOP tersebut dari
perspektif PDRM, penguat kuasa agama, guru Pendidikan Khas.
2. Metodologi Kajian
Rekabentuk kajian adalah secara analisis dokumen dan temubual bersama wakil pihak PDRM,
penguat kuasa agama, mufti, ahli politik, p a ra guru Pendidikan Khas dan masyarakat awam
berkaitan isu yang dikaji. Data terkumpul dianalisis secara diskriptif dan dipersembahkan secara
tematik.
Maklumbalas Agensi dan masyarakat tentang keperluan dibangunkan SOP Khas Autisme
(i) Sebahagian Perilaku Tersendiri Autisme Melanggar Undang-undang
Hasil kajian mendapati perilaku autisme yang terkait dengan melanggar undang-undang seperti
mencuri, mencabul kehormatan, berkelakuan tidak sopan di tempat awam, membakar bangunan,
menggodam perisian software. Berdasarkan temubual yang dilakukan terbukti wujud beberapa
perilaku tersendiri autism yang melanggar undang-undang seperti petikan berikut.
“ Perlakuan tidak sopan macam meraba … peluk.. “ (Guru Mohd Talha 2021)
“ Gosok-gosok .. alat kemaluannya (di tempat awam)” (Guru Mohd Talha 2021)
“ Dia pegang-pegang, dia peluk-peluk..” (Guru Mohd Talha 2021)
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“ Dia suka pegang buah dada orang, dia kalau lalu je bukan sentuh, dia akan genggam … “(Cikgu
Siti Hasha 2021)
“ Mencuri. Tapi bila dia suka barang tu dia nak bawa balik. Ada satu video tu dalam beg tu. Kami
pun tak boleh bayang video yang besar tu dia bawa balik “ (Guru Su Li Na 2021)
“ Ada juga yang mencuri suka curi pendrive tiba-tiba hilang pendrive .. “ (Guru Su Li Na 2021)
“ … bakar rumah neneknya sebab dia marah .. “ (Guru Norasmah 2021)
“ Dia tak puas hati sebab dia bertindak luar kawal, buat lain. Saya sendiri pernah dipukul, dia
bertindak di luar minda sedar ..” (Guru Norasmah 2021)
“ … suka angkat skirt orang, mereka suka bergesel kalua cikgu tu cantic atau mereka suka cikgu
tu akan pegang raba dan selain itu mereka akan buat mastubasi secara terbuka “ ( Guru Su Li Na
2021)
(ii) Autisme tergolong dalam kategori Orang Kelainan Upaya (OKU) masalah
pembelajaran dan wajar mendapat layanan undang-undang yang berlainan daripada
golongan tipikal
Hal ini diakui oleh pakar autism:
“ kena bezakan layanan, biasanya perkara yang dia terima, perkara yang orang autism faham tak
sama dengan orang biasa faham… kalau ditahan atau jumpa orang asing oleh orang yang mereka
tak biasa dengan dia mungkin akan mendatangkan ketakutan ataupun dia jadi stress tipically”
(Guru – Liew Bee Wah 2020)
Dari aspek Islam juga, hak golongan autism ini wajib dilindungi sepertimana kenyataan Mufti
Terengganu, Timbalan Mufti Selangor dan Penguat kuasa agama Selangor seperti kenyataan
berikut:
“ … Ya.. mereka ini unik, jadi mereka ni perlu ada SOP khas, sebab mereka ni bukan biasa tapi
luar… “ biasa
(Sabri Haron 2022)
“ ..mereka ni berbeza.. jadi tak adillah kalau kita layan mereka sama seperti individu normal”
(Miszairi 2022)
“ … Memberi hak yang sewajarnya kepada pihak yang ditahan… supaya proses tangkapan oleh
PPA berjalan dengan sempurna seterusnya dapat mengatasi segala masalah yang wujud semasa
proses tangkapan…” (Tuan Shahrom 2020)
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(iii) Persepsi Negatif Masyarakat Terhadap Pelaksanaan SOP Tangkapan & Tahanan
Biasa Terhadap Autisme
Kes tangkapan dan tahanan oleh pihak polis terhadap Ahmad Ziqri, pemuda autism, pada 11
September 2018 telah mencetuskan pelbagai pandangan awam, netizen juga pihak NGO. Beliau
ditangkap dan ditahan untuk siasatan di bawah sekyen 354 Kanun Kesiksaan atas kesalahan
mencabul kehormatan. Penularan berita tangkapan tersebut menyebabkan netizen mengecam
tindakan pihak polis dan ibu bapa mangsa wanita yang membesarkan isu tersebut sehingga
membuat laporan polis, walaupun setelah mengetahui keadaan pemuda tersebut adalah autisme
(Nadia 2018). Di samping itu ibu kepada pemuda tersebut juga meluahkan kebimbangan terhadap
keadaan anaknya yang tidak pernah berpisah dengan beliau tetapi terpaksa menghadapi situasi
yang asing denggannya iaitu digari, dengan memakai baju berwarna oren dan diletakkan di dalam
sel tahanan sementara menunggu hari pendakwaan. Ibunya juga menyatakan anaknya
kemampuan mental seorang yang berusia 13 tahun. Bagi menenangkan keadaan anaknya agar
tidak trauma, ibu tersebut terpaksa menerangkan kepadanya bahawa beliau sedang berada dalam
salah satu scene drama polis yang popular di Malaysia, iaitu Gerak Khas. Oleh itu dalam kes
ini Ahmad Ziqri menyedari bahawa beliau ditahan namun memberi kerjasama kerana
beranggapan beliau berada dalam set pengambaran filem Gerak Khas (Nadia 2018).
Kes ini juga mendapat perhatian serius Hannah Yeoh, yang merupakan Timbalan Meteri
Kebajikan Wanita, Keluarga dan Masyarakat pada ketika itu, dengan menggesa masyarakat dan
netizen menghentikan kecaman terhadap tindakan polis kerana dalam kes ini terdapat dua mangsa
iaitu wanita yang dicabul ditempat awam dan pemuda autisme yang dituduh dan ditahan dengan
menggunakan SOP biasa.
Walaupun perintah tahanan reman oleh pihak polis itu mendapat bantahan hakim dan pemuda
tersebut dilepaskan dengan jaminan polis, namun kes tersebut terus menjadi bualan umum ketika
itu. Penahanan dan permohonan reman selama empat hari terhadap Ahmad Ziqri mencetuskan
ketidakpuashatiaan pihak netizen terhadap tindakan PDRM dan meluahkan rasa simpati kepada
keluarga Ahmad Ziqri (Kasthuri Jeevendran 2018).
Rentetan ini pihak PDRM merasakan sangat perlu dibangunkan SOP autism bagi meredakan isu
tersebut serta menjamin hak perundangan autism/OKU. Hal ini dijelaskan oleh pihak PDRM
seperti petikan berikut:
“Perkara ini perlu diambil berat walaupun kes yang terpencil ini tidak banyak tetapi hentaman
daripada netizen dan masyarakat itu ia besar berbanding kes jenayah lain rompakan, pembunuhan
bersiri. Tetapi kes yang melibatkan kanak2 syurga ini ia memberi impak yang sangat besar dan
prihatin daripada semua golongan manusia dan sebab itu perlu SOP”.
(PDRM 2022)
“ … bila ada SOP ni, ia merupakan cara untuk menangkis kecaman daripada netizen… “
(PDRM 2022)
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(iv) Usul Pelbagai Pihak Agar diwujudkan SOP Khas Autisme /OKU
Pelbagai pihak seperti Ahmad Fadhli, Ahli Parlimen PAS Pasir Mas menghantar surat kepada
pihak Peguam Negara menyatakan agar kes sebegini dapat ditangani dengan lebih baik oleh pihak
polis di masa hadapan. Beliau juga berpandangan sewajarnya pihak polis dan mahkamah perlu
mempunyai prosedur tersendiri dalam menangani kes-kes sebegini. Beliau juga tidak menafikan
bahawa pihak polis telah bertindak mengikut prosedur undang-undang yang betul, namun
penambahbaikan masih boleh dibuat untuk pelaksanaan masa hadapan Justeru beliau
mendesak agar SOP kkusus autisme diwujudkan untuk kegunaan pihak polis
(https://berita.pas.org.my/tindakan-tepat-tolak-reman-pemuda-autisme/).
Dalam temubual The Star bersama Puan Hasnah, iaitu ibu kepada Ahmad Ziqri juga menunjukkan
beliau memahami trauma yang dialami oleh mangsa wanita yang dicabul oleh anaknya, seorang
autisme yang kelihatan seperti pemuda normal tetapi hakikatnya mempunyai kapasiti mental
kanak-kanak berusia 13 tahun. Tambahan lagi mangsa tidak pernah terdedah dengan sikap
individu autisme. Beliau juga tidak menyalahkan tindakan pihak polis namun beliau berharap
pihak polis menggunakan cara pengendalian tangkapan yang berbeza dalam kes melibatkan
autism atau OKU di masa hadapan.
(https://www.mstar.com.my/lokal/semasa/2018/09/17/anak-autistik-gerak-khas).
Beberapa hari selepas tangkapan dan tahanan Ahmad Ziqri, orang awam telah menunjukkan
sokongan melalui tandatangan secara dalam talian daripada beribu orang memohon agar pihak
Ahmad Ziqri dilayan secara adil dan pihak berkuasa menyemak semula SOP sedia ada agar
memenuhi juga keperluan pihak autisme/OKU (https://www.thestar.com.my/news/nation/
2019/03/26/new-police-sop-for-autism-cases/).
Hal ini juga diakui oleh pihak PDRM seperti petikan temubual ini:
“ …kita dapat kecaman yang sangat-sangat kuat daripada netizen-netizen daripada semua, NGO-
NGO, sehingga mereka mampu mengumpulkan 50000 petisyen dengan tindakan yang kita buat,
daripada persatuan-persatuan, netizen, kecaman juga diberikan kepada kementerian pembangunan
wanita, masyarakat dan sebagainya, di masa sama, netizen hentam semua”. (PDRM2022)
(v) Tiada Panduan khusus untuk melaksanakan tahanan & tangkapan yang melibatkan
autisme
Pihak PDRM dan penguatkuasa agama berpandangan perlu dibangunkan SOP Tangkapan dan
Penahanan Autisme untup Pihak Polis dan juga penguat kuasa agama, agar mereka dapat
melaksanakan tanggung jawab secara berpandu, mengikut peruntukan undang- undang yang jelas
dan juga menjamin hak perundangan autisme yang diketegorikan di bawah OKU yang
menghadapi masalah pembelajaran. Petikan yang menyokong kenyataan di atas adalah seperti
berikut;
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“ … SOP ini perlu dibina kenapa dulu tidak, ia adalah sebagai punca dan pegangan kita, kalau
kita takde garis panduan, untuk dimantapkan siasatan dan memberi inspirasi agar kita tidak
tersasar.. “ (PDRM 2022)
Tindakan pro-aktif pihak PDRM ini juga dipersetujui oleh oleh pihak penguat kuasa agama,
seperti petikan berikut:
“ ... SOP tangkapan ini penting dan selain itu juga kita nak mengelakkan tomahan masyarakat
kepada pihak penguat kuasa agaman terutamanya dalam mengendalikan kes-kes individu
autism..” (Zurul Iman 2020)
“ Kita lebih menggunakan kuasa atau budibicara PPA, kalau tiada satu SOP khusus makanya
kuasa budi bicara itu terlalu luas, di mana PPA akan menggunakan kuasa budi bicara tersebut
untuk melepaskan OKP atau YDS yang ditangkap dan sebagainya.”
(Zurul Iman 2020).
“ … Penguat kuasa agama pun perlu ada satu garis panduan untuk handle pesalah autisme…
“ (Miszairi 2022)
(vi) SOP Tahanan dan Tangkapan Autisme Bermanfaat kepada Polis/Penguat kuasa agama
/ frontliners/orang awam
Ketaiadaan garis panduan khusus untuk tangkapan dan penahanan autism/OKU menyebabkan
keperluan untuk mewujudkkannya. Di samping itu ia juga boleh dimanfaatkan bukan sahaja oleh
pihak berkuasa, malahan frontlines, pertubuhan awam seperti Jabatan Kebajikan Masyarakat dan
penguat kuasa agama, apabila berhadapan dengan autisme atau OKU yang lain. Hal ini disokong
oleh pihak berautoriti melalui petikan berikut;
“ Kita bina SOP ini sebab takut berlaku kesilapan ketika kejadian berlaku” PDRM 2022)
“ SOP yang dibina yang digarapkan untuk pelaksanaan oleh semua pegawai bertanggungjawab
tidak sahaja melibatkan suspek tetapi ia juga melibatkan mangsa dan juga saksi” (PDRM 2022)
“ SOP ini tidak boleh fokus pada autisme sahaja, sebab bila kita nampak orang tu, kita tak tau
sama ada dia autisme ke sakit mental atau lain-lain, jadi sepatutnya kena merangkumi semua
masalah mental “ (R6 -PM Dr Fairuz Bt Abdul Rahman 2020)
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(vii) Malaysia cakna terhadap hak Autisme/OKU dengan kewujudan Rakan Autisme,
roadshow kepada pihak PDRM dan penubuhan Pusat Autisme di PDRM.
Hal ini dibutikan melalui petikan berikut;
“ … wujudkan rakan autisme. Di peringkat awal, kontinjen dan daerah, dalam SOP lain kita tak
nampak, itu sedikit keistimewaan. Maksudnya sewaktu siasatan, dan tangkapan, fungsi rakan
autisme, senarai rakan autisme ni dipantau oleh Bukit Aman dan dia akan bantu pegawai yang
handle. Untuk terlibat dalam proses tangkapan… “
(PDRM 2022)
“ … PDRM ada buat roadshow di seluruh Malaysia, negara lain tidak, tetapi PDRM ni kita nak
seluruh warga PDRM memahami, menghayati dan melaksanakan SOP ini… “
(PDRM 2022)
Pembinaan SOP Tangkapan dan Tahanan Autisme ini juga telah mencetuskan usaha penubuhan
Pusat Autisme di cawangan Cheras pada 25 Mac 2021, bertujuan menyantuni anak-anak anggota
PDRM yang mengidap autism. Hal ini dijelaskan melalui petikan temubual berikut:
“ … kita membina satu institut/ pusat autisme PDRM. Tetapi di PDRM kita dibiayai bersama
juga Majlis Agama Islam Persekutuan, dan yang lain berjaya membina satu centre yang
menempatkan anak2 autisme dari kalangan PDRM di Lembah Klang… “
(PDRM 2022)
Penubuhan Pusat Autisme PDRM ini mendapat perhatian daripada pihak Yayasan Bank Rakyat
yang telah menjadikan anak-anak tersebut sebagai anak angkat mereka, bagi menjaga
kebajikan dan pelajaran anak-anak tersebut. Pada Januari 2022, sumbangan sebanyak seratus ribu
ringgit telah disampaikan oleh Pengerusi Yayasan Bank Rakyat, Datuk Megat Zulkarnain Tan Sri
Omardin kepada Ketua Polis Negara, Tan Sri Acryl Sani Abdullah Sani pada Program Pendidikan
kerjasama Yayasan Bank Rakyat dan Pusat Autisme PDRM (Kumara Sabapatthy 2022). Hal ini
menunjukkan sokongan pihak industri terhadap kebajikan anak-anak autisme. Diharapkan pihak
industri lain juga akan tampil menghulurkan bantuan sebegini bagi meringankan beban kewangan
pentadbiran dan pembelajaran anak-anak autisme ajar keperluan dan kebajikan mereka lebih
terjamin.
3. Kesimpulan
Berdasarkan perbincangan di atas, SOP autisme sangat wajar dibangunkan kerana ia
melengkapkan prosedur tangkapan dan tahanan untuk kegunaan autism dan OKU lain. Ia juga
berjaya menghentikan tohmahan pihak awam terhadap tindakan lalu pihak PDRM ynag didakwa
tidak melaksanakan SOP yang bersesuaian dalam kes tangkapan dan tahanan autism. Pembinaan
SOP tersebut juga mendapat sambutan positif dari pelbagai pihak. Ia juga membuktikan
kecaknaan kerajaan Malaysia terhadap hak OKU @ autisme.
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4. Penghargaan
Penghargaan ditujukan kepada Kumpulan Penyelidikan dari Pusat Kajian Syariah, Fakulti
Pengajian Islam, Universiti Kebangsaan Malaysia (UKM) bagi tajuk penyelidikan “Pembinaan
Prosedur Operasi Standard (SOP) Tangkapan dan Pengendalian Tahanan Individu Autisme oleh
Penguat kuasa Agama” (Kod Penyelidikan- FRGS/1/2019/SS06/UKM/02/4) serta Kementerian
Pendidikan Malaysia, atas biaya geran penyelidikan tersebut.
Rujukan
Bisera, M. 2020. Option and Attitudes of Parents and Students for Sexual Developmen, Sexual
Behavior and Gender Identity of Persons with Autism in The Republic of Macedonia. Journal
of Special Education and Rehabilitation 9(3): 7-24.
Haskins, Barbara G. & Camp; Silva, J. Arturo.2006. Asperger’s disorder and criminal behavior:
Forensic-psychiatric considerations. Journal of the American Academy of Psychiatry and the
Law 34(3): 374–384.
Ives, M. & Munro, N. 2020. Caring for a Child with Autism. London: Jessica Kingsley
Publishers.
King, Claire & Camp; Murphy, Glynis H. 2014. A Systematic Review of People with Autism
Spectrum Disorder and the Criminal Justice System. Journal of Autism and Developmental
Disorders 44(11): 2717–2733.
Rube, L.A. & Dalrymple, N.J. 1993. Social /Sexual Awareness of Persons with Autisme: A
Parental Perspective. Achieves of Sexual Behavior 229-240.
Transkripsi Perbincangan Meja Bulat Bersama Hakim Syarie dan Penguat Kuasa Agama 18
Disember 2020
Transkripsi Perbincangan Meja Bulat Bersama Hakim Syarie dan Penguat Kuasa Agama &
Pakar Autisme 30 Oktober 2020
Transkripsi Perbincangan Kumpulan Berfokus Bersama Guru Pendidikan Khas (SMK
Dato’Mustafa) 3 Februari 2021
Transkripsi Perbincangan umpulan Berfokus Bersama Guru Pendidikan Khas Sarawak (SMK St.
Joseph Miri & SMK Datuk Patinggi Haji Abdul Gapor Kuching 22 Mac 2021
Transkripsi Perbincangan Kumpulan Berfokus Bersama Guru Pendidikan Khas (SMK Kinabutan
II, Tawau Sabah) 12 Mac 2021
Transkripsi Temubual Bersama Sahibul Samahah Prof Madya Dr Hj Miszairi bin Hj Sitris,
Timbalan Mufti Selangot 5 April 2022.
Transkripsi Verbatim Sesi Temu Bual Bersama Pegawai Polis Jabatan Siasatan Jenayah Polis
Diraja Malaysia (PDRM) Bukit Aman. 13 Jun 2022.
https://www.mingguanwanita.my/di-sebalik-kisah-anak-autisme-yang-ditahan-polis-atas-
tuduhan-mencabul/
https://malaysiagazette.com/2018/11/13/kes-ahmad-ziqri-dapat-perhatian-kerajaan/
https://berita.pas.org.my/tindakan-tepat-tolak-reman-pemuda-autisme/
https://www.mstar.com.my/lokal/semasa/2018/09/17/anak-autistik-gerak-khas
https://www.thestar.com.my/news/nation/2019/03/26/new-police-sop-for-autism-cases/
https://malaysiagazette.com/2022/01/12/pusat-autisme-pdrm-jadi-anak-angkat-yayasan-bank-
rakyat/
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NEW NORMAL EDUCATION IN THE MID-WAY OF
CHRISTIAN AND MUSLIM COMMUNITY: ITS HIP AND
VALLEY IN THE DIGITALIZATION CHALLENGE
Gina A. Fontanilla1*
1 Department of Education, Cotabato Division, Dilangalen National HS, Midsayap, Cotabato, PHILIPPINES
*Corresponding author: author@university.edu.sg
Abstract: This study presented the lived experiences of school heads and teachers in the new
normal education which highlighted the opportunities and challenges of the digitalization in
education brought by ‘new normal’ education. In dealing with the challenges of digitalization in
education, the author contends that literacy on ICT determines the efficiency and effectiveness of
an individual in adapting to change like embracing the use of different technological platforms
and the school heads’ and teachers’ perception of their learning environments. Results showed
that the participants’ challenges include Lack of Manpower and other Resources, Poor Internet
Connectivity, Lack of Professional Training in ICT, and Result of Educational
Assessment/Learning Outcome. Despite these challenges, the participants were able to surpass all
of these through the strengthened linkages and partnerships with internal and external
stakeholders of the school, and personal or self-learning through online courses available. The
author concludes that learning to adapt to changes in the new normal education made the school
heads and teachers more resilient, innovative, and creative.
Keywords: New normal education, Challenges, Digitalization in Education, Adaptive to change,
technological platforms.
1. Introduction
The advent of the COVID-19 global pandemic has affected millions of children and youth in
almost every country in the world. At the height of the pandemic, nearly 90 percent of students
were affected by the closure of schools, universities, and other institutions (UNESCO, April 2020).
While school closures may have been necessary to reduce the transmission rate of COVID-19 in
many contexts, the full impact of such closures on the well-being of children and youth has not
always been considered in the decision-making process. Various risks to the education, protection
and health of children and youth need to be analyzed to decide whether schools reopen or stay
closed. Such data analysis, particularly at a local level, is necessary to make informed decisions
on when and why to reopen schools (UNICEF).
School closure did not hinder learning continuity but paved the way for the intensive
implementation of distance learning modalities such as modular distance learning (print and
digital), online distance learning, blended learning, RBI, and TVBI to achieve the department’s
goal that “no learner should be left behind”. Public and private schools in the Division of Cotabato
implemented different distance learning modalities just to ensure that quality education is
delivered to the learners even during this time of the pandemic.
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The department’s effort to implement learning continuity through its Basic Education Plan (BE-
LCP) under DepEd Order No. 012 s. 2020 has posted different questions and apprehensions on
how quality is education in this new normal set-up. Learning in the new normal is a challenge for
the teachers, students, and even parents (Davis, 2021). While the bulk of research focused on
describing learning as digital learning utilizing online distance learning and blended learning in
new normal education, there are limited studies that focused on the lived experiences of teachers
and school heads in the new normal education, hence, this study is conducted.
2. Literature Review
The following literature and studies are the bases in the conduct of the study.
New Normal Education
The study of Dziuban, C., Graham, C.R., Moskal, P.D. et al. addressed increasingly important
issues of student success, withdrawal and perception of the learning environment across multiple
course modalities. Arguably these components form the crux of how we will make more effective
decisions about how blended learning configures itself in the new normal. The results reported
here indicate that blending maintains or increases access for most student cohorts and produces
improved success rates for minority and non-minority students alike. In addition, when students
express their beliefs about the effectiveness of their learning environments, blended learning
enjoys the number one rank. However, upon more thorough analysis of key elements students view
as important in their learning, external and demographic variables have minimal impact on those
decisions
According to Zalat MM, Hamed MS, Bolbol SA (2021), e-learning was underutilized in the past
especially in developing countries. However, the current crisis of the COVID-19 pandemic forced
the entire world to rely on it for education.
Their study aimed to estimate the university medical staff perceptions, evaluate their experiences,
recognize their barriers, challenges of e-learning during the COVID-19 pandemic, and investigate
factors influencing the acceptance and use of e-learning as a tool teaching within higher education.
The study found that the majority (88%) of the staff members agreed that the technological skills
of giving the online courses increase the educational value of the experience of the college staff.
The rate of participant agreement on perceived usefulness, perceived ease of use, and acceptance
of e-learning was (77.1%, 76.5%, and 80.9% respectively).
The results of the study of Toader, Safta, and Titirisca (2021) show the positive effect of
digitalisation on tertiary education and also the positive impact of the latter on sustainable
development, as a base for future stimulation in public policies. The study concluded that most of
the participants in the university educational process have adapted to the online activity, and the
latter ‘saved’ the academic years 2019–2020 and, respectively, 2020–2021.
On the other hand, the development of digital competence is a fundamental component of the
initial and ongoing training of teachers. However, it is a complex process that includes various
strategies, for which there is not yet an integrated approach to improve teacher learning about the
pedagogical uses of digital technologies. The most effective model for developing teacher digital
competence is based on offering experiences that integrate digital technologies into learning as
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part of their training. It is not enough to provide teachers with access to ICT; time to experiment
and technical training on certain digital tools is also required. Reflective knowledge and skills
needed to integrate digital technologies into teaching practice should be developed in teacher
training programs, Berrocoso et.al (2021)
Challenges in e-Learning and Digitalization in Education
The study of Toader, Safta, and Titirisca (2021) shows the positive effect of digitalization directly
on tertiary education, and indirectly on sustainable development (in GDP per capita, as proxy).
The results also suggest the positive long-run effect of the tertiary education (all age groups) on
economic sustainable development, with GDP per capita in logarithmic values used as proxy. The
results confirm the necessity of public intervention and better funding of the education on all
levels, but most importantly in higher education, being in line with the economic literature that
accentuates the positive role of (tertiary) education on economic growth (sustainable
development). Moreover, students feel isolated due to lack of interaction, especially with teachers,
because they spend more time at home, in front of the computer and the pandemic has imposed
social distancing
In the study of Zalat MM, Hamed MS, Bolbol SA (2021) on the experiences, challenges, and
acceptance of e-learning as a tool for teaching during the COVID-19 pandemic among university
medical staff in Zagazig University, Egypt. The highest barriers to e-learning were insufficient/
unstable internet connectivity (40%), inadequate computer labs (36%), lack of computers/ laptops
(32%), and technical problems (32%). Younger age, teaching experience less than 10 years, and
being a male are the most important indicators affecting e-learning acceptance.
On the other hand, the study of Mustisya and Makokha (2016) in public universities in Kenya are,
today, turning to the use of e-learning in an attempt to cope with the rapidly increasing demand
for university education. Lecturers ranked heavy workloads the most serious challenge affecting
the adoption of e-learning, followed by: insufficient Internet connectivity, denial of copyrights for
their developed e-learning modules, limited information and communication technology (ICT)
skills, lack of incentives, shortage of computers/laptops, inadequate computer laboratories, and
insufficient time for online interaction. Students, on the other hand, ranked insufficient Internet
connectivity the number-one challenge, followed by: lack of computers/laptops, inadequate
computer laboratories, limited ICT skills, and insufficient time for online interaction. The paper
concludes that as a result of these challenges, the adoption of e-learning is slow and still at its
infancy stage in public universities in Kenya. It recommends that universities should invest heavily
in the improvement of e-learning infrastructure, e-learning content development, capacity
building, attitude change, and enhancement of e-learning awareness.
Self-paced learning significantly improves memory performance compared to a control condition
in which the same overall study time was used but time was not differentially allocated across
items, Tullis and Benjamin (2011). The advantage of self-pacing was apparent only in subjects
who utilized a discrepancy reduction strategy—that is, who allo cated more study time to
normatively difficult items. Self-pacing can improve memory performance, but only when
appropriate allocation strategies are used.
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Pokhrel and Chhetri (2021) found that the affordability and accessibility for all the learners of
varied economic background is identified as a challenge, for which the educational tools developer
could focus on customization. The lesson learnt from the COVID-19 pandemic is that teachers and
students/learners should be oriented on use of different online educational tools. After the COVID-
19 pandemic when the normal classes resume, teachers and learners should be encouraged to
continue using such online tools to enhance teaching and learning.
2.1 Problem Statement
What are the lived experiences of teachers and school heads in the new normal education?
3. Method
This study made use of the Purposive sampling method specifically the maximum variation
purposive sampling technique for the researcher is looking to examine a diverse range of cases
that are all relevant to a particular phenomenon or event (alchemer.com) wherein as used in this
study the researcher focused on the varied responses of participants with different experiences of
‘new normal’ education considering their diverse learners.
3.1 Materials
This study utilized technology-assisted platforms such as Google form survey, emails, and
messenger. The researcher used triangulation through published articles and previously conducted
studies.
3.1.1 Samples
This study made use of the Purposive sampling method specifically the maximum variation
purposive sampling technique for the researcher is looking to examine a diverse range of cases
that are all relevant to a particular phenomenon or event (alchemer.com) wherein as used in this
study the researcher focused on the varied responses of participants with different experiences of
‘new normal’ education considering their diverse learners.
3.1.2 Site
The study was conducted in the selected schools in Midsayap, Cotabato of which student
population is composed of diverse learners: Christian, Muslim, and Indigenous Peoples.
3.1.3 Procedures
The researcher sought permission from the identified participants of the study and to ensure the
anonymity of the participants, school heads were coded as SH1, SH2… SH5 while teacher
participants were coded as T1, T2…T5. Consent from the participants after being informed about
the purpose of the study and research objectives was obtained at the start of the online survey.
Privacy and confidentiality were assured.
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Design: This study utilized the descriptive qualitative research design which interprets phenomena
in terms of the meanings people bring to them (Denzin and Lincoln, 2011, p. 3 as cited by Fukofuka
(2014) and Accad & Accad (2016).
Variables: The phenomena as used in this study is the ‘new normal’ education and this will be
described and given meanings according to the experiences of the participants of the study, the
teaching and learning process in the new normal set-up as perceived by the participants wherein
the emphasis is to describe rather than to judge or interpret (Accad and Accad, 2015).
Power and sample size: The participants were the selected 5 school heads and 5 teachers of the
schools in Midsayap, Cotabato purposively chosen and selected by the researcher.
3.2 Measurement
Generally, this study dealt with the teaching and learning process in the ‘new normal’ set-up and
determine its groundwork in the digitalization challenge. Specifically, this study aimed to answer
the overarching research question: What are the lived experiences of teachers and school heads in
the new normal education? All the responses of the participants were encoded in an excel file and
analyzed. Emerging core and sub-themes were identified and specific phrases and statements were
quoted for emphasis.
3.3 Data Analysis
Thematic Analysis by Fokofuka (2014) cited by Accad and Accad (2016) was employed by the
researcher. All the responses of the participants were encoded in an excel file and analyzed.
Emerging core and sub-themes were identified and specific phrases and statements were quoted
for emphasis.
3.3.1 Validity and Reliability
The researcher used triangulation through published articles and previously conducted studies.
4. Results and Discussion
A. Opportunities
A.1 Access to Global Learning Platform
A.2 Innovations on Learning Resource Materials
A.3 Support of Stakeholders
B. Challenges
B.1 Lack of Material and Manpower Resources,
B.2 Poor Internet Connectivity,
B.3 Lack of Professional Training on ICT,
B.4 Result of Educational Assessment/Learning Outcome
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C. Coping Mechanisms
C.1 Strengthening partnership
C.2 Enroll Post Graduate via Online University,
C.3 Strengthening Linkages/Partnership
A. Opportunities
A.1 Access to Global Learning Platform
The participants said that the ‘new normal education gave them the opportunity to access the
Global Learning Platform. The use of online platforms such as Google Classroom, Zoom, virtual
learning environment, social media, and various group forums like Telegram, Messenger,
WhatsApp, and WeChat were explored and tried for teaching and learning for the first time to
continue education. This can be explored further even after face-to-face teaching resumes, and
these platforms can provide additional resources and coach to the learners, Pokhrel and Chhetri
(2021).
SH1: “Sa panahong ito ako natutong mag explore ng iba’t ibang platforms dahil kailangan
sa mga virtual communications at online submission ng reports gaya ng Zoom Meetings, Google
Meet, Microsoft Teams, email, at messenger”
SH3: “Wala jud ko ka encounter aning mga Zoom App, Google meet sa una dili pa jud ko
kabalo unsaon na…so sa umpisa nagpatudlo ko sa akong anak (hahaha) every time may mga
virtual meetings ta sa cluster or sa division office”
SH5: “Tong wala pa pandemic mam wala gid ko iya gasapak sinang mag email2 kay
ginapaobra ko lang na sa mga AdAs sa una…hahaha pero karon nagtuon gid ko kay tungod sa
AWA implementation”
T3: “Digitalization was never a challenge for me, it was an opportunity to broaden my horizons
and improve my digital skills. But unfortunately, I could not use it for the learning process because
students in our school do not have devices and loads to take online courses”
A.2 Innovations on Learning Resource Materials
The participants have shared that the ‘new normal’ taught them how to become innovative in the
adopted learning modalities like making contextualized learning activity sheets (LAS), video
lesson exemplars, and tutorial videos by selected teachers. This is supported by the study of
Dhawan (2020) which states that teachers have become habitual to traditional methods of teaching
in the form of face-to-face lectures, and therefore, they hesitate in accepting any change. But
amidst this crisis, we have no other alternative left other than adapting to the dynamic situation
and accepting the change. It will be beneficial for the education sector and could bring a lot of
surprising innovations.
SH2: “Also, though we almost started from scratch, our teachers are now equipped with new
normal skills that made them adapt to the changes”
SH4: “These ‘new normal’ made us innovative of the learning resource materials aside from
the printed modules that we have printed and distributed to our learners. We capacitate our
teachers in video-making lessons, RBI script writing, and contextualization of LAS based on the
module”
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SH5: “Naging daan talaga ang ‘new normal’ situation upang makabuo kami ng mga
contextualized LAS na supplement sa mga modules na binigay sa mga bata”
A.3 Support of Stakeholders
The participants have mentioned that the financial support from external stakeholders like BLGU,
MLGU, PLGU, non-government organizations, and alumni associations was strengthened
especially in terms of the module reproduction of learners. It has forged a strong connection
between teachers and parents than ever before. Homeschooling requires parents to support the
students’ learning academically and economically. Children with disabilities need additional and
special support during this ongoing emergency, Pokhrel, and Chhetri (2021).
SH3: “We are happy in the school because our Municipal LGU gave us printing machine and
bond papers through our SEF”
SH2: “Daw kanami lang pamation nga bisan sa panahon sang pandemya may ara gid mga tao
kag organisasyon nga handa magbulig kag nakahibalo maglantaw sang kahimtang sang
eskwelahan…mga alumni nga ara sa gawas sang Pilipinas nagaobra mga generous people gid
sila sa amon skwelahan ”
SH1: “Uhmm yes mam aside sa mga parent volunteers namin na nagdedeliver ng mga
module sa mga purok, masaya kami dahil ang aming BLGU ay nagbigay din ng mga school
supplies gaya ng ballpen, papel at notebook ng aming mga estudyante ”
B. Challenges
B.1 Lack of Manpower and other Resources
All participants expressed that because of the implementation of the Alternative Work
Arrangement the school lacks manpower resources, especially in module reproduction resulting in
the delayed distribution of learning materials to learners.
SH2 : “Given the guidelines on alternative work arrangements, our teachers and staff report
to school only once a week. With that, updates, issues, and concerns that need to discuss with the
group are mostly done thru virtual conferences. This at times causes a delay in the implementation
of PPAs needing immediate actions.”
SH4: “Kulang jud mi Working force due to skeletal schedule implemented. ”
SH5: “Mahirap talaga ang printing of learning materials mam kasi nakaskeletal tayo wala ring
printer ang ibang mga teachers sa kanilang bahay ”
B.2 Poor Internet Connectivity
All participants said that their major challenge in digital education is poor /no internet connectivity.
They said it hindered/deprived them to participate in virtual activities and reports required by the
department. This finding is the same as that of Zalat, Hamed, and Bolbol (2021), Dhawan (2020)
that the highest challenge for accepting e-learning were insufficient /unstable internet connectivity,
inadequate computer labs, lack of computers/laptops, and technical problems.
SH1: “We are struggling since the community has no electricity nor access to internet kasi
alam mo naman itong lugar namin mam na kailangan pang sumakay sa bangka ng halos isang
oras bago mo marating ang aming paaralan…”
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SH3 : “Voluminous paper works and overlapping offline and online activities caused distress
and inefficiency to work due to poor internet connection.”
SH4: “Usahay gud mawala ko sa virtual meeting kay gatuyok tuyok lang jud ang cursor sa akong
laptop. ”
SH5: “Mahirap talaga ang printing of learning materials mam kasi nakaskeletal tayo wala ring
printer ang ibang mga teachers sa kanilang bahay ”
P2: “It is very difficult for me to contact my students because of the unstable internet connection
in our area. Most of our students also don't have access to the internet since they don't have
gadgets to use.”
B.3 Lack of Professional Training on ICT
Three participants mentioned that they find difficulty in doing their ICT-related jobs because they
lack formal ICT training. These resulted in the inefficiency of performing ICT-related jobs.
T1: “I experienced problems with this platform. The system is complicated for me because I am
not an expert in using different apps in my cellphone since I'm used only to text and calls”
T2 : “At first, I find it difficult to troubleshoot new models of printers, when our printers run into
a problem.”
T3: “Challenges on digitalization in education in new normal is a not a difficult for me since I
have already a prior knowledge on ICT and digitalization. All I have done is enhance my
knowledge, skills, values, and attitudes so I can cope with it. By this, I can fit myself better to the
trend of today's new normal education”
SH4: “Not all school managers are digital technologically literate(
😂
isa nko)
B.4 Result of Educational Assessment/Learning Outcome
The participants shared that the results of educational assessments/learning outcomes of learners
are somewhat invalid and not reliable since they answered their written works and performance
tasks at home. On the other hand, most of the learners submitted their answer sheets of written
works and performance tasks unanswered because nobody could assist them in their learning
process. As all students’ assignments and examinations are carried out from home, it is challenging
for educators to find the authenticity of the work and the actual learning taking place. Moreover,
many parents guide and support their children during their learning process, and the extent and
degree of support vary greatly. Grading of students is another area of study as no proper criteria
are developed and effectively used. Pokhrel and Chhetri (2021)
SH1: “Unlike in the urban communities, houses are far apart from one another, so home
visitations were not easy. Aside from that, most of our learners do not have family members to
assist or facilitate learning at home. More than 90% of the parents are illiterate.”
SH2 : “For me, the result of educational assessments are doubtful which may not reflect student's
learning.”
SH5: “Honestly, it's hard to assess students' learning in new normal. We didn't know if they were
the ones answering their modules. ”
T1: “For those who are from far and remote areas, they suffer poor internet connection, the
absence of human intervention, lack of assistance for learners during exams and other forms of
evaluation.”
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C. Coping Mechanisms
C.1 Strengthening Linkages/Partnership
The participants expressed that one of their coping mechanisms to overcome those challenges is
to build strong linkages/partnerships with the school’s stakeholders especially the external
stakeholders like non-government organizations.
SH1: “Through strengthening partnership po maam.”
SH2 : “Access to the learners living in far-flung and war-torn feeder barangays is limited,
thus needing support from BLGUs and other support groups. Despite all these challenges, our
school remained steadfast in the new normal school year for we considered these challenges as
opportunities for wider and greater partnerships with our internal and external stakeholders and
partners..”
SH5: “Before ginadeliver sa Learning Center / Purok pero tong kasagsagan sa COVID some
teachers were reprimanded by the BLGU. So, ng change na pod na parents na lng pod ang
magkuha sa skol....in a scheduled day. Dili tanan Grade level parents mo adto sa skol.. ”
C.2 Enroll Post Graduate via Online University
It has emerged in the analysis that the participants enrolled in Post Graduate via Online University
and made the self-study and research using Youtube and other online resources.
SH1: “Mentoring teachers on the use of digital applications and platforms, balance the utilization
of internet resources and physical teaching and learning resources..”
T3 : “Participate in webinars rendered by ETU and other organizations for personal development,
enroll post graduate via online university for professional development, research or read via
YouTube and other online resources.”
T4: “All I have done is enhance my knowledge, skills, values, and attitudes so I can cope with it.
By this, I can fit myself better to the trend of today's new normal education.. ”
5. Conclusion
The study on the lived experiences of school heads and teachers in the new normal education
concludes that learning to adapt to changes in the new normal education made them more resilient,
innovative, and creative.
6. Acknowledgement
I am grateful and indebted to those who made essential contributions to the completion and
publication of this Qualitative research paper as partial fulfillment of the requirements for the
Degree Doctor of Education Major in Educational Management and Leadership. In particular, I
would like to express a special note of appreciation to the following: The research paper adviser
and professor Dr. Mildred Accad of Sultan Kudarat State University, Schools Division Office of
Cotabato officials, co-administrators of Dilangalen NHS, selected school heads and teachers of
Midsayap Cluster who are the participants of the study, my family and loving husband Daniel,
precious sons Gian, Dane and John for the love, understanding, moral, financial and spiritual
support during the completion of this paper, and above all to God Almighty, the giver of life and
the source of strength and love for who I am today. Thank you for all His blessings and may He
make us a blessing to all we come in contact with.
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https://journals.sagepub.com/doi/full/10.1177/2042753016672902
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3079256/
https://www.mdpi.com/2071-1050/13/11/6444/htm
https://www.researchgate.net/publication/283327169_Role_of_contextual_factors_in_using_e-
Learning_systems_for_higher_education_in_developing_countries
https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0256283#sec008
https://www.researchgate.net/publication/261107383_The_rhetoric_of_reform_and_teachers%2
7_use_of_ICT
https://journals.sagepub.com/doi/10.1177/2347631120983481
https://doi.org/10.1186/s41239-017-0087-5
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PERANAN NGO DALAM MEMBERIKAN PENDIDIKAN
KEPADA PENGGUNA: KAJIAN DI MALAYSIA
Norhoneydayatie Abdul Manap1*
1 Pusat Kajian Syariah, Fakulti Pengajian Islam, Universiti Kebangsaan Malaysia, Bangi, MALAYSIA
*Pengarang penghubung: norhoney@ukm.edu.my
Abstrak: Pengguna merupakan kelompok masyarakat yang mendapat perlindungan dari sudut
undang- undang. Walaubagaimanapun perlindungan undang-undang terhadap pengguna tidak
akan tercapai sekiranya pengguna tidak celik undang-undang atau jahil mengenai hak mereka
sebagai pengguna. Beberapa NGO telah mengadakan beberapa usaha untuk memberikan
pendidikan kepada pengguna termasuk berkaitan hak sebagai pengguna. Oleh itu, kajian ini
dilakukan untuk melihat sejauh mana peranan NGO dalam memberi pendidikan terhadap
pengguna. Metodologi analisis kandungan dilakukan dengan melihat kepada kajian-kajian
terdahulu mengenai peranan NGO dalam memberikan didikan kepada pengguna.
Kata kunci: NGO, pendidikan pengguna, hak pengguna, undang-undang, perlindungan.
1. Pendahuluan
Pengguna seringkali menjadi mangsa atau dieksploitasi oleh pihak peniaga. Kerapkali pengguna
diitindas dalam isu harga, maklumat barang atau perkhidmatan dan sebagainya yang
mengakibatkan kerugian kepada pihak pengguna. Oleh yang demikian, akibat daripada gerakan
pengguna, telah wujud persatuan pengguna untuk melindungi pengguna. Persatuan pengguna ini
bukan sahaja terdapat di Malaysia, malah di serata dunia. Oleh yang demikian, artikel ini
membincangkan mengenai persatuan pengguna dan peranannya dalam melindungi hak pengguna.
NGO dan Kepentingannya
Secara amnya, Pertubuhan Bukan Kerajaan (NGO) didefinisikan sebagai pertubuhan sosial atau
perniagaan yang bukan Kerajaan. Manakala menurut perspektif Jabatan Kebajikan Masyarakat,
NGO merujuk kepada Pertubuhan Sukarela Kebajikan (PSK) bercorak kebajikan yang
mengendalikan program dan menyediakan perkhidmatan untuk kumpulan sasaran (Azyyati Mohd
Nazim, 2014). Pertubuhan bukan kerajaan (NGO) memainkan peranan yang penting dalam
membantu masyarakat di sesebuah negara. Perkara ini tidak berlaku hanya di Malaysia, malah
turut menjadi amalan di kebanyakan negara-negara di dunia ini.
Akibat daripada gerakan pengguna yang kuat telah menyebabkan tertubuh persatuan pengguna
di Malaysia. Pada tahun 1973, Gabungan Persatuan-persatuan Pengguna Malaysia (FOMCA)
telah ditubuhkan untuk menyelaraskan kegiatan pergerakan pengguna di Malaysia. Semua
persatuan pengguna negeri ternasuk FOMCA adalah persatuan sukarela yang berperanan
untuk menyalurkan maklumat dan pendidikan untuk meningkatkan kesedaran pengguna.
Gerakan kepenggunaan turut dilonjakkan dengan penubuhan Majlis Penasihat Perlindungan
Pengguna Kebangsaan (MPPPK) yang ditubuhkan secara rasminya pada bulan Julai, 1973 yang
berfungsi untuk mengformulasi dan mengkoordinasi polisi kerajaan yang mempengaruhi
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kepentingan pengguna di peringkat kebangsaan. Oleh yang demikian, telah terdapat beberapa
persatuan pengguna di Malaysia yang telah ditubuhkan sehingga kini.
Kemudian, pengawalseliaan hal-ehwal kepenggunaan telah diambil alih oleh Majlis Penasihat
Pengguna Negara (MPPN) yang ditubuhkan di bawah Akta Pelindungan Pengguna 1999 (Christie
Ding Yean 2016).
Selain itu, Pusat Khidmat Aduan Pengguna Nasional (NCCC) pula ditubuhkan pada tahun 2004
hasil usaha daripada ERA Consumer Malaysia, Persatuan Pengguna Selangor dan Wilayah
Persekutuan dan KPDNKK. NCCC merupakan pusat aduan untuk membantu pengguna
menyelesaikan masalah berkaitan kepenggunaan serta pengantara bagi pengguna dan peniaga
untuk meyelesaikan pertikaian sebelum dirujuk ke Tribunal Tuntutan Pengguna Malaysia (TTPM)
(Christie Ding Yean, 2016). Dalam konteks untuk memelihara pengguna juga, pihak NCCC telah
menggariskan dalam laman web NCCC beberapa langkah yang perlu pengguna lakukan dalam
membuat pembelian secara online. Merujuk kepada usaha yang telah dilakukan oleh pihak
kerajaan dan NGO tersebut, maka jelaslah bahawa pengguna secara online juga turut mempunyai
hak dan dilindungi hak mereka.
Pengguna dan Pendidikan Pengguna
Pada 15 Mac 1962, ucapan yang disampaikan oleh Presiden Amerika Syarikat, John F. Kennedy
mengatakan bahawa, pengguna, secara takrifannnya melibatkan kita semua yang merupakan
kumpulan ekonomi yang terbesar; mempengaruhi dan dipengaruhi oleh hampir setiap keputusan
ekonomi, peribadi mahupun awam (Joon, C. D. Y. & S. S. A. Y., 2016). Dari sudut ekonomi,
pengguna merujuk kepada mereka yang membeli, memperoleh, dan menggunakan semua jenis
barang dan perkhidmatan (Christie Ding Yean, 2016). Menurutnya lagi, pengguna sebenarnya
melibatkan kita semua kerana kita terlibat dalam transaksi jual beli setiap hari. Selain itu, terdapat
juga yang mendefinikan pengguna sebagai seseorang yang membeli atau menyewa atau yang
menerima barangan atau perkhidmatan untuk digunakan, disimpan atau dipelihara, atau dibuang
sahaja dalam bentuk akhirnya (Mohd Hamdan Adnan, 2013).
Di Malaysia, seksyen 3 Akta Perlindungan Pengguna 1999 telah memberi definisi yang lengkap
di mana pengguna di bawah undang-undang ialah mereka yang memperoleh atau menggunakan
barang atau perkhidmatan daripada jenis yang lazimnya diperoleh bagi maksud penggunaan diri,
rumah tangga atau isi rumah tetapi bukan tujuan membekalkan barangan tersebut secara
perdagangan atau menggunakannya dalam satu proses pengilangan. Definisi ini adalah penting
kerana menghuraikan ciri-ciri pengguna agar mereka dilindungi dan berupaya untuk menuntut
ganti rugi melalui mekanisma tebus rugi yang dikhaskan kepada pengguna seperti Tribunal
Tuntutan Pengguna Malaysia sekiranya hak mereka dicabuli (Norhafifah, 2018). Berdasarkan
kepada definsi tersebut, jelas bahawa pengguna adalah mereka yang membeli atau memperoleh
barang atau perkhidmatan untuk tujuan kegunaan sendiri, dan bukan untuk perniagaan. Definisi
ini dilihat tidak membezakan sama ada pembelian atau perolehan barangan tersebut dilakukan
sama ada secara fizikal atau secara atas talian (online). Oleh yang demikian, seseorang individu
yang membeli barang secara online turut tergolong dalam kategori pengguna selagi mana
pembelian yang dilakukan olehnya bertujuan untuk kegunaan diri sendiri.
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Menurut sejarah barat, perlindungan pengguna bermula dengan penularan falsafah caveat emptor
yang membawa maksud ‘Let the purchaser beware’. Falsafah ini membawa erti pembeli terikat
kepada tanggungjawab untuk memeriksa kualiti barang yang dibelinya (Ananda Krishnan, 2008).
Konsep perlindungan pengguna berkait rapat dengan kuasa perundangan untuk melindungi
pengguna dan hak mereka terhadap pengeluar dan pembekal barangan yang mengeksploitasi
kepentingan pengguna. Dengan kata lain, perlindungan pengguna ini lahir disebabkan penindasan
dan penyelewengan terhadap hak pengguna oleh golongan peniaga sama ada pengeluar atau
pembekal (Sakina Shaik Ahmad Yusoff, 2007).
Frasa ‘perlindungan pengguna’ memberi pengertian bahawa perlindungan pengguna harus dilihat
dalam dua aspek, iaitu peruntukan undang-undang dalam melindungi pengguna dan mekanisme
tebus rugi pengguna (Nor’ Adha Ab Hamid & Sakina Shaik Ahmad Yusoff, 2011). Jolowicz
mengemukakan dua maksud yang berbeza untuk memberi pengertian konsep ‘perlindungan
pengguna,’ iaitu “…boleh membawa maksud salah satu daripada dua perkara: sama ada
pencegahan sesuatu daripada menjadi salah/silap bagi pengguna, atau peruntukan tebus rugi
kewangan bagi pengguna apabila sesuatu menjadi salah/silap.” (Sakina Shaik Ahmad Yusoff,
2007).
Selain itu, frasa ‘perlindungan pengguna’ juga dikaitkan dengan cara untuk melindungi hak
pengguna menerusi kawal selia diri (self-regulation), undang-undang persendirian, dan kawal selia
awam (public regulation) (Nor’ Adha Ab Hamid & Sakina Shaik Ahmad Yusoff, 2011). Di
Malaysia, Dasar Pengguna Negara (2011) turut menekankan bahawa pengguna perlu mempunyai
perlindungan diri iaitu mampu melindungi diri mereka dengan menggunakan perundangan yang
sedia ada di Malaysia. Bekas Menteri Perdagangan Dalam Negeri, Koperasi dan Kepenggunaan,
Dato’ Sri Ismail Sabri bin Yaakob (2010) pernah mengatakan, “…pengguna di masa hadapan perlu
mengamalkan perlindungan kendiri (self-protection) dan mengurangkan kebergantungan kepada
kerajaan.” Berdasarkan kepada maksud perlindungan pengguna tersebut, dapat disimpulkan
bahawa perlindungan pengguna ini merangkumi perlindungan pengguna dari sudut undang-
undang atau dengan maksud perundangan melindungi hak pengguna.
Peranan NGO Dalam Memberikan Pendidikan Pengguna
Pergerakan persatuan pengguna antarabangsa pula bermula pada tahun 1960 dengan lahirnya
Pertubuhan Antarabangsa Kesatuan-kesatuan Pengguna yang kini dikenali sebagai Consumers
International (CI). Consumers International merupakan satu persekutuan kumpulan pengguna di
peringkat antarabangsa. Penubuhan Consumers International ini bermula dengan penyertaan
daripada lima buah negara iaitu Amerika Syarikat, United Kingdom, belgium, Netherland dan
Australia (Mohd Hamdan Adnan, 1987).
Di Malaysia juga telah wujud persatuan pengguna yang berfungsi membantu dan melindungi
pihak pengguna. Antara peranan yang telah dilakukan oleh pihak persatuan pengguna adalah
dengan memberikan pendidikan pengguna, menjadi medium kepada aduan pengguna, serta
membantu pengguna yang ditindas oleh pihak peniaga. Peranan yang dilaksanakan oleh persatuan
pengguna ini memberikan impak yang besar kepada pengguna.
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2. Kesimpulan
Berdasarkan kepada perbincangan di atas, jelas bahawa persatuan pengguna telah muncul sejak
wujud kesedaran dan kebangkitan pihak pengguna. Gerakan pengguna amat penting untuk
memelihara hak mereka. Melalui penubuhan persatuan pengguna ini memberikan lagi kelegaan
kepada pihak pengguna dalam usaha melindungi hak mereka. Persatuan pengguna ini bukan sahaja
terdapat di Malaysia, malah juga terdapat di negara lain. Oleh yang demikian, pemerkasaan kepada
persatuan pengguna dan peranan mereka amat penting untuk terus melindungi dan memelihara hak
pengguna.
3. Penghargaan
Penghargaan kepada Kementerian Pengajian Tinggi atas pembiayaan projek Pembinaan Garis
Panduan Mengelak Penipuan dalam Pembelian dalam Talian (online), no projek:
FRGS/1/2019/SSI10/UKM/03/1.
Rujukan
Joon, C. D. Y. & S. S. A. Y. (2016). Perkembangan Perlindungan Pengguna: Cabaran dan Hala
Tuju Institusi Pelindung Pengguna di Malaysia. Jurnal Undang-Undang Dan Masyarakat,
20(0), 71–82.
Mohd Hamdan Adnan, Kepenggunaan, Dewan bahasa dan Pustaka Kementerian Pendidikan
Malaysia Kuala Lumpur, 1987.
Nor’ Adha Ab Hamid & Sakina Shaik Ahmad Yusoff, Pertikaian Perdagangan Pengguna:
Penyelesaian Pertikaian Alternatif di Malaysia, Dawama Sdn bhd, Malaysia, 2011.
Norhafifah Samsudin, Elistina Abu Bakar, Zuroni Md Jusoh, Afida Mastura Muhammad Arif, &
Norhasmah Sulaiman. (2018). Domain dan Indikator Literasi Undang-undang Pengguna di
Malaysia. Jurnal Pengguna Malaysia, 31, 9-26
Petikan ucapan oleh John F. Kennedy: “Special Message to the Congress on Protecting the
Consumer Interest.,” semasa membentangkan usul perundangan pengguna kepada Kongres
Amerika Syarikat pada March 15, 1962 http://www.presidency. ucsb.edu/ws/?pid=9108
Sakina Shaik Ahmad Yusoff, Perlindungan Pengguna di Malaysia: Falsafah dan Politik, dalam
Sakina Shaik Ahmad Yusoff et al., Undang-Undang Komersial dan Pengguna, Dewan bahasa
dan Pustaka, Kuala Lumpur, 2007.
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PHYSICAL AND SPIRITUAL CLEANLINESS IN ISLAMIC
PERSPECTIVE: RELATIONSHIP AND EFFECTIVENESS TO
THE HEALTH IN PREVENTING COVID-19 PLAGUE
Zanirah Mustafa@Busu1, Nik Muniyati Nik Din2, Zainab Hisham3*, Noraini Junoh4,
Nurhidayah Muhammad Hashim5, Nik Zam Nik Wan6 and Zulkarnain Yusoff7
1 3 4 6 7Academy of Contemporary Islamic Studies, Universiti Teknologi MARA, Machang Campus, Kelantan,
MALAYSIA
2 Academy of Contemporary Islamic Studies, Universiti Teknologi MARA, Kota Bharu Campus, Kelantan,
MALAYSIA
5 Academy of Contemporary Islamic Studies, Universiti Teknologi MARA Shah Alam, Selangor, MALAYSIA
*Corresponding author: 2021804206@student.uitm.edu.my
Abstract: Emphasis on cleanliness is an important foundation of faith because faith and
cleanliness are interrelated. Every Muslim must maintain cleanliness because it is an obligation
as a Muslim. A good Muslim and believer will take care of external and internal cleanliness from
the physical and spiritual aspects to form a true believer. At the same time, it can be a bulwark in
preventing the infection of the COVID-19 epidemic. Since this epidemic leads to uncertainty that
can affect the health and needs of life as a Muslim, then this study will debate physical and spiritual
hygiene to know the concept of hygiene about physical and spiritual aspects from the perspective
of Islamic Fiqh. In addition, this article also aims to examine the relationship between physical
and spiritual hygiene and its effectiveness on the health of Muslims to protect themselves from the
infection of COVID-19. Data for this study was obtained from library research through journal
articles, reference books, thurath books, reports, and documentation from the Ministry of Health
Malaysia and the Kelantan State Health Department. Personal hygiene and healthy life will help
in carrying out the duties of a Muslim in the daily routine, especially in the era of new norms. The
findings of the study show that a) there is a significant demand for physical and spiritual personal
hygiene practices according to Islamic Fiqh as well as a complete Islamic guide on health from
the point of view of care, maintenance, and control to protect oneself from the infection of COVID-
19 and b) there is positive influences and effective practices of consistent physical and spiritual
hygiene. We can take control measures to develop mandatory activities under the new norms,
especially to prevent all infectious diseases including the COVID-19 outbreak. Therefore, every
Muslim needs to take care and be consistent in maintaining the practice of cleanliness both
outwardly and inwardly, so that it becomes a shield against all dangerous epidemics.
Keywords: COVID-19 plague, cleanliness, health, Islamic Fiqh, new norms.
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REAL ESTATE BUSINESS A RETROFITTING’S PATH FOR
FULLY ECONOMY RECOVERY IN POST PANDEMIC
Sani Inusa Milala1*, Khadijah Md Ariffin2, Rozilah Kasim3, Narimah Kasim4, Azlina Md
Yassin5 and Mohd Hafizal Ishak6
1 2 3 5 6 Department of Real Estate and Facilities Management, Universiti Tun Hussein Onn, Batu Pahat, MALAYSIA
4 Department of Construction Management, Universiti Tun Hussein Onn Malaysia, Batu Pahat, MALAYSIA
*Corresponding author: saniinusamilala4@gmail.com
Abstract: The real estate sector, being the cornerstone industry of Asian countries Real estate has
played the greatest role and is continue to play in the global economy of a country like Germany,
China, Singapore, Nigeria, Austria, Malaysia, etc. Several research at local, national, and
international levels has been carried out to determine, and examine the impact of the real estate
sector’s performance in the contribution of building the nation’s economy, the fall and rise of
gross domestic product (GDP) become the subject of inquiries in all nation economy development
researches. The importance of the real estate market has been widely debated over the last decade.
The primary aim of this study is to explore the role of the real estate business in the gross domestic
product (economic) development with the view to straitening the real estate business as a path for
economic recovery in post covid 19 era. The study employed quantitative research method where
data was collected from secondary source and deliberation was made on the data to extract the
findings, use of cross-sectional data and intensive review of literature was also used in the analysis
about the subject of research, after where descriptive and exploratory strategy was also utilized,
from the finding of the study it was found that from 2014-2017 the Malaysian real estate sector
continue to bust and appreciate but the subsequent years there is downfall in the performance of
the market up to 2021 where the whole sector has been be hit by covid pandemic, it was also found
that Malaysia has the GDP growth of 4.45% , 5.81%, 4.77%, 4.30%,-5.59%, and 5.6% for the
year 2016, 2017, 2018, 2019, 2020, and 2022 respectively also there is annual changes of 3.0%,
-9.89%, -0.47%, -1.04%, 1.36% and -0.64% for the year 2022, 2020, 2019, 2018, 2017, and 2016
respectively, on the parallel comparison of the cross sectional data it prompt out the main heart
of the finding in this study where it shows that when the increase in the real estate performance is
proportionate to the increase in the gross domestic product (GDP). Where lastly it was also
projected from the finding of this study that there will be an increase in the Malaysian economy
(GDP) as it forecasted that there will be better real estate performance throughout the year. and
it was also seen as the path for economic recovery after covid 19 pandemic era. It can be concluded
that the real estate sector, is the cornerstone industry of economic development, and the Real
estate has played the greatest role and is continue to play in the global economy of the country
and is the great medium for economic recovery as the economy is hit by covid 19 pandemic.
Keywords: Economy, Real Estate, performance, Development, Gross Domestic Product.
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1. Introduction
Property, as well as any permanent improvements related to the land, whether natural or man-
made, such as water, trees, minerals, buildings, dwellings, fences, and bridges, are all included in
real estate (Chen, 2020).
Since the beginning of 2020, the global health catastrophe triggered by the COVID-19 pandemic
has changed living and working situations. (De toro et al., 2021). The epidemic has triggered a
crisis that has affected and is continuing to affect the whole all areas of the economy, including
agriculture the market for real estate, and the real estate sector During the lockdown, (Tanrıvermiş,
2020; De toro et al., 2020).
The COVID-19 plague continues to have detrimental implications outside of the health sector
(WHO.2020; Girard, & Nocca, 2020). and it has sparked a global crisis that is affecting (and will
continue to affect) several parts of the economy, especially real estate (Kholodilin, 2020). All
corporate activity that took place in the real estate contest ended in the initial phase of the
pandemic, except for critical services such as food distribution, pharmacy, and manufacturing.
Consumption, investment, and commerce all suffered as a result of the closures, resulting in
demand and supply shock (Lim, & Pranata, 2021).
All developments are attached to the land therefore any suspension in the daily activities on the
land indirectly affects the land and the development erected on the land. (Fahmid, et al., 2022).
The covid 19 pandemic has left the properties vacant and out of use, it also forces a change in the
property's uses, where changing the use of land within a short period is not possible, residential
properties were used as Working space as well as for recreational purposes this alteration comes
as a result to match the new specifications of those who are obliged to spend the most of their time
at home. This has continued to give a real estate role to play in driving the nation’s economy
although this will have an impact on the real estate market as well, In terms of trends and desirable
dwelling attributes, shortly. (Kim, et al., 2021)
Many humans’ lives have been impacted by the epidemic, prompting them to look for new areas
to reside or new ways of socializing. Real estate, which is presently the world's economy's leading
sector, accounts for 18 percent of GDP in a country like Italy (De toro et al., 2020).
Real estate has played the greatest role and is continue to play in the global economy of a country
like Germany, China, Singapore, Nigeria, Austria, etc. More than 700,000 real estate firms employ
about 3.8 million people, accounting for 22 percent of all enterprises and 10% of Germany's
workforce. In 2007, the real estate business generated 406 billion Euros in gross value added,
accounting for 18.7% of Germany's total gross value added (Gutachter-Gemeinschaft 2009).
Shen, (2021) examined using panel data models from 17 prefecture-level cities and prefectures in
Hubei Province from 2002 to 2018 Real estate development investment has a significant impact
on economic development. Strengthening that there is the linkage between real estate development
investment and economic growth.
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For many years, the real estate business has been on the rise, despite the slowing growth of the
real estate market across the country in recent years, several provinces and cities have implemented
new housing regulations to recruit talent. It can be observed that the real estate business is an
essential long-term effective component for economic growth, whether it is the direct influence of
the real estate industry on economic growth in recent decades or the indirect impact of the real
estate industry on economic growth in recent years (Shen, 2021).
The fast expansion of the real estate business has become a unique aspect of Asia's economy this
century. (Hong, 2014). The real estate sector, being the cornerstone industry of Asian countries
like China, had and continues to have a substantial effect on China's macroeconomic swings. It
not only accounts for a significant portion of GDP, but it has also evolved into a crucial tool for
the government to manage the economy (Zhang & Guo 2018).
Only a few studies have looked at the performance of the Malaysian property market (Yop, 2021).
The importance of the real estate market has been widely debated over the last decade. Prior
discussion has focused on various aspects of analysis used to evaluate the performance of the
property market, such as statistical analysis, surveys, and academic or industrial literature it will
be quite interesting to explore the contribution of the real estate sector to economic recovery in
post covid 19 pandemics.
2. Literature Review
Economic Growth
Economic growth is defined as a rise in an economy's total production, as measured by gross
domestic product (GDP), with the ultimate goal of raising people's living standards and quality of
life. This occurs when output per capita exceeds population, according to (Case, et al., 2012).
Economic growth, according to Haller (2012), is the systematic expansion of a country's economy,
and macroeconomic indices, notably GDP per capita, with a beneficial impact on the social-
economic sector. As a result, economic growth refers to a country's economy increasing.
GDP estimates market throughput by summing the values of finished goods and services produced
created and communicated for money within a given period, according to Costanzaet al., which
estimates market throughput by summing the values of final goods and services created and
exchanged for money within a given period (2009). The rate of economic growth is thus defined
as the percentage change in the number of goods and services produced from one year to the next
(Keithly, 2013).
Economic Growth and Real Estate
For a long time, the impact of property market movements on economic growth has piqued
people's curiosity. (Shiller,2008). This might be related to the importance housing plays in a
country's provision of one of its most fundamental needs: shelter. While this is a crucial sector in
a country's growth strategy, especially in terms of serving the ever-increasing urban population, it
is not the only one. (King’ori, 2017).
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The impact, or lack thereof, of rural-urban migration on economic growth, remains unknown, due
to a variety of causes, the wealth effect can cause a shift in real estate values, which can have an
impact on the economy (Ciarlone, 2011).
The Solow-Swan hypothesis, on the other hand, states that an economy's production is exactly
proportionate to its level of knowledge. Natural resources, such as land, have little impact on an
economy's output, according to the models. New growth theory was an advance on neoclassical
growth theory, in which, unlike in neoclassical theory, technological development was included
in the production function. As a result, technological advancements add to an economy's overall
production.
According to several research, there is a close link between real estate and economic growth. As
stated, (King’ori, 2017), When Ho and Wong (2008) looked at the influence of home prices on
private local demand in Hong Kong, they discovered that the housing market booms considerably
increased domestic demand. Juma, 2014; case et al., 2012; and Kazimoto, (2016). both found a
link between property prices and the economy in the United States and many other OECD nations.
In Hong Kong, Leung (2001) analyzed consumption and investment channels and discovered that
both channels responded positively to property prices.
For example, indicating an interest in Malaysian real estate, but solely for residential homes,
researchers looked into a complete comparative analysis of Malaysian publicly traded property
businesses, although the study was confined to shares of property market significance and
performance.
In recent years, global real estate has been looking for investment possibilities in rising real estate
markets, notably in Asia. The benefits of adding overseas real estate in mixed-asset portfolios for
portfolio diversification have been highlighted in the study (Yop, 2021).
There are several studies about real estate in the Asian countries for example, but there is limited
recent research on Malaysian property when compared to other countries; thus, there are several
opportunities to explore Malaysia property market research. Nevertheless, no evident study has
been undertaken on the real estate business as a path for retrofitting the economic recovery.
Global Economy Domain
The first quarter of 2018 experienced a significant drop in internationally connected real estate
investment activity. Investors are beginning to question if the cycle's conclusion is approaching
following five years of rising in investment turnaround. For two reasons, it's unlikely: The first is
rapid economic expansion. Property investment is not a stand-alone activity; it is a component of
a wider economic integration process. Economists believe that GDP growth is the single most
significant driver of overall capital and real estate flows. GDP growth not only stimulates occupier
demand for space, which supports rent prices, but it also boosts market and bank lending
confidence. Surprisingly, throughout the previous seven years, the global economy has grown in
both real and nominal terms. Overall, it has increased significantly faster than real estate
investment flows, thus real estate investment as a share of global GDP is still well below its recent
peak. Global economic support for real estate investment is robust as a result of prior nominal
growth and potential real growth. (Yilmazkuday, 2022; Kauppila, 2022; Moradi, 2022; Yop,
2021).
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3. Methodology
This study with aim of exploring the contributive role of real estate in the recovery of Malaysia's
national economy adopted intensive review, among the secondary objectives that are formulated
to aid in achieving the aim of the study is to review the Malaysian gross domestic product analysis
of secondary data from World Bank, IMF, and some related previous studies also aided in the
achieving the aim of the study, descriptive and exploratory strategy was employed also the study
used the parallel comparison analysis of world bank, IMF, and Malaysian property market review
cross-sectional data. After the years of comparison of the property market and the Gross
development product and decision is made in the study.
4. Results and Discussion
Performance of Malaysian Economy (2016-2022)
Malaysia's GDP (economy) grew by 4.3 percent in the third quarter of 2016 compared to the
previous quarter's recorded 4.0 percent) this is showing the appreciation of the economy’s
increment over time, owing to increased private sector expenditure and further help from net
exports. The major economic sectors continued to drive expansion on the supply side. The
economy increased by 1.5 percent on a seasonally adjusted quarterly basis from one quarter to the
next (2Q 2016: 0.7 percent).
In 2014 and 2015, the Malaysian economy survived substantial headwinds including falling
commodity prices, a bleak global trade climate, and a weakening Ringgit to emerge relatively
undamaged. Between 1980 and 2015, nominal GDP increased by 22 times, while nominal GDP
per person increased by 9.9 times. Malaysia's per capita GDP is still greater than the average for
upper-middle-income nations.
In absolute terms, average monthly family earnings increased by RM1,141, while median monthly
household incomes increased by RM959. As a result of the increase in household income, the
poverty rate fell to 0.6 percent in 2014, down from 1.7 percent in 2012. Wholesale and retail
commerce, information and communication, food and beverage, and lodging all expanded by 6.1
percent. Electrical, electronic, and optical items, as well as petroleum, chemical, rubber, and plastic
products, led to a 4.3 percent gain in the manufacturing sector.
Meanwhile, due to a rise in natural gas output, the mining and quarrying industry increased by 2.9
percent. Following a slowdown in oil palm and a decline in fishing and forestry and logging, the
agriculture sector grew by 4.2 percent. Civil engineering and specialized construction activities
contributed 0.5 percent to the construction sector's growth. For the second quarter of 2019,
businesses are more optimistic, with the overall confidence index climbing to +2.8 percent from -
2.2 percent in the first quarter. IT was indicated by the world bank record that Malaysia's GDP
growth rate for 2020 was -5.59%, a 9.89% decline from 2019. And for the years 2021 and 2022,
it was projected to have incremented to 5.6% (world bank, 2022).
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Table 1: Malaysian Gdp Growth Rate Data
YEAR
GDP GROWTH (%)
ANNUAL CHANGE
2022
5.6%
3.0% projected
2020
-5.59%
-9.89%
2019
4.30%
-0.47%
2018
4.77%
-1.04%
2017
5.81%
1.36%
2016
4.45%
-0.64%
Source: (World Bank, 2022).
The table above shows the Malaysian GDP growth and annual changes Malaysia has the GDP
growth of 4.45%, 5.81%, 4.77%, 4.30%, -5.59%, and 5.6% for the year 2016, 2017, 2018, 2019,
2020, and 2022 respectively also there is annual changes of 3.0%, -9.89%, -0.47%, -1.04%, 1.36%
and -0.64% for the year 2022, 2020, 2019, 2018, 2017, and 2016 respectively.
Figure 1: Malaysian GDP Annual Growth Trend
Source: (World Bank, 2022)
Economy GDP Growth of Malaysia and the economic GDP Growth of other Asian countries
The annual percentage growth rate of GDP at market prices is based on constant local currency.
Aggregates are based on constant 2010 U.S. dollars. GDP is the sum of gross value added by all
resident producers in the economy plus any product taxes and minus any subsidies not included in
the value of the products. It is calculated without making deductions for depreciation of fabricated
assets or depletion and degradation of natural resources.
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Table 2: Malaysia GDP Growth vs Asian GDP Growth
Country
2017
2018
2019-2020
2022 projected
Brunei Darussalam
-2.34
-0.50
Cambodia
7.07
7.04
Indonesia
5.02
4.79
Lao PDR
7.52
7.00
Malaysia
4.50
4.95
5.6
Myanmar
8.50
6.99
Philippines
6.13
5.81
Singapore
3.26
2.01
Thailand
0.82
2.82
Vietnam
5.98
6.68
Source (IMF, 2022; Yop, 2021).
Table 2 above is showing Malaysia's GDP growth and other Asian GDP growth the performance
over the years of Malaysia GDP’s performance should be underrated but up to the year 2019-2020,
there is a fall in the GDP where it was projected by the intentional monetary fund that the GDP is
to rise by 5.6% over previous years.
The World’s Top 5 Economies Country & Asian Inflation Rate
Inflation, as measured by the annual growth rate of the GDP implicit deflator, shows the rate of
price change in the economy as a whole. The GDP implicit deflator is the ratio of GDP in current
local currency to GDP in constant local currency.
Real estate is an element of economic development since it is such a large portion of the national
economy. As a result, strong real estate development will contribute to the economy's long-term
growth (Liu, et al., 2019). According to a national study, real estate investment may lead to
economic growth (Huang, et al 2008). Real estate investment, at the regional level, may not only
encourage and increase regional economic growth but can also stimulate economic growth in other
regions (Zhang, 2014).
Figure 2: Malaysian Real Estate Performance
Source: (IMF, 2022).
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Table 3: The World’s Top 5 Economies Country & Asian Inflation Rate
Country
2010
2014
2015
2016
2017
2018
United States
1.22
2.06
1.84
1.63
1.64
1.00
China
6.94
8.14
2.39
2.23
0.82
-0.45
Japan
-2.16
-1.85
-0.93
-0.56
1.67
2.01
Germany
0.76
1.07
1.50
2.09
1.73
2.06
United Kingdom
3.11
2.10
1.63
1.99
1.84
0.27
Asian
Brunei Darussalam
5.31
20.35
-0.05
-3.15
10.09
-1.22
Cambodia
3.12
3.36
1.37
2.25
1.68
1.26
Indonesia
15.26
7.47
3.75
4.97
5.39
4.23
Lao PDR
10.02
3.80
4.31
8.22
-0.30
-0.45
Malaysia
7.27
5.41
1.00
0.18
2.47
-0.39
Myanmar
5.45
6.59
11.31
Philippines
4.22
4.02
1.97
2.09
3.21
-0.68
Singapore
-0.05
1.11
0.73
-0.70
0.04
1.64
Thailand
4.08
3.75
1.91
1.73
0.96
0.26
Vietnam
12.07
21.26
10.93
4.76
3.66
-0.19
Source: Chew (2022) report of Rahim & co. in Malaysian property market review 2021/2022
Table 5 above is showing the comparison of the Malaysian GDP and other countries' economic
performance this result has also strengthened the finding of the study that any increase in the
performance of real estate there will be a proportionate increase in the gross domestic product
(GDP) of the country’s particular economy, most of the toping countries topping the performance
in the Gross domestic product ranking has also the better performance of real estate market.
The performance of real estate which has been displayed in the Malaysian property review 2022
was found that the overall optimistic mood is also reflected in the real estate market performance.
According to Rahim & Co International Sdn Bhd's Property Market Review 2021/2022 report,
which was formally issued on Jan 27, Malaysia registered a total of 201,065 real estate transactions
worth RM98 billion in the first nine months of 2021, a modest reduction of 1.8 percent year on
year. However, the value increased by 21.4 percent year over year.
From the established report highly classified data of RAHIM & CO. on market review 2021/2022
and in correspondence with the report of (World bank 2022 and IMF, 2022). The report on GDP
shows that there is a slowdown in the performance of the Gross Domestics product at around -
5.59% with annual changes of -9.98% this strengthens the fact that the real estate sector, in general,
has an impact on the development of GDP.
Following a major drop in property market transactions in 2020 (-9.9% in volume and -15.8% in
value) compared to the pre-Covid environment in 2019, Rahim & Co-director of research
Sulaiman Sahid claims that the economy and market gradually adjusted to a pandemic environment
in the first half of 2021, with a 21% increase in volume and 32.1 percent increase in value. When
the FMCO was implemented in 3Q2021, however, the overall performance decreased. The
residential sector, among others, has seen the most significant drop in transaction volume.
Considering the significant drop in the year 2021 3rd quarter it also shown that the gross domestic
product of the year 2021 there is slow down also in the flow, the economic result is strengthening
the fact that real estate sector and the national economy goes proportionally to one another. It was
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also shown from the record that "[Residential estate] transaction activity increased in the first half
of the year but slowed in the third quarter, resulting in a 2.6 percent increase for the first nine
months of the year." "On the supply side, new launches in the primary market had dropped, as
developers were still adjusting and affected by the pandemic and the country's containment
measures," Sulaiman says in his speech at the report's launch, adding that sporadic quick sales for
owner-occupier and domestic economy were observed.
Comparison of the Malaysian Property Market and the GDP Trend
From the secondary data collected it is proven that with the increase in the gross domestic product
of Malaysia there is a proportional increase in the performance of real estate performance which
the result is impliedly revealing that the increased performance of the real estate market and estate
sector, in general, there is an increase in the Gross Domestic Product of the nation, this also
showing the impact of the real estate performance to economic development.
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Source: authors compilation
The above chart is showing the movement trend of the economy and real estate, in the data set a
record of the IMF and the World Bank, the data indicated that from 2016-2017 there was a boost
in the Malaysian real estate sector whereas on the other side there is also increase in the economic
development of the country this finding has become the largest vacuum in the economic research
to explore as the two subject areas the real estate and the national economy and the real estate.
5. Conclusion
The primary aim of this study is to explore the role of the real estate business in the gross domestic
product (economic) development with the view to straitening the real estate business as a path for
economic recovery in post covid 19 era. The study employed a quantitative research method where
data was collected from secondary sources and deliberation was made on the data to extract the
findings, it can be concluded that the real estate sector, is the cornerstone industry of economic
development, and the Real estate has played the greatest role and is continue to play in the global
economy of the country and is the great medium for economic recovery as the economy is hit by
covid 19 pandemic.
6. Recommendation
The nature of the study indicated that there is a need for research to be conducted in every state of
Malaysia to compare with the economic development for a better understanding of the economic
contributors.
7. Acknowledgment
This research achieved the edge of success with the support of the Ministry of Higher Education
Malaysia under Fundamental Research Grant Scheme Vot No. FRGS/1/2020/SS0/UTHM/03/8
and also appreciation to the effort of Universiti Tun Hussein Onn Malaysia partially sponsored the
research.
REAL ESTATE
ECONOMY
0
1
2
3
4
5
year 2020 year 2019 year 2018 year 2017
Real Estate and National Economy Trend
REAL ESTATE ECONOMY
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STUDENTS’ DETERMINANTS OF ENHANCING
EMPLOYABILITY MEDIATED BY EMOTIONAL
INTELLIGENCE IN MALAYSIAN PUBLIC UNIVERSITIES
Marwa Al Asefer1*, Mohd Hizam Hanafiah2 and Noor Saadah Zainal Abidin3
1 3 Faculty of Business, Information and Human Sciences, Infrastructure University Kuala Lumpur, Kuala Lumpur,
MALAYSIA
2 Faculty of Economics & Management, Universiti Kebangsaan Malaysia, Bangi, MALAYSIA
*Corresponding author: marwa22288@yahoo.com
Abstract: Despite the increasing demand of the labour market, the employers still seem to have
difficulty in filling several vacancies because of the claim that majority of higher education
graduates are not employable and lack skills. Almost all countries, whether developing or
developed, are under pressure to generate employable graduates. Soft skills are widely required
by employers. Personality traits are one of the growing problems faced by organizations that
always brings offensive effects employability, Universities programs must not only create
graduates with certain qualifications, but also skills that employers want. Emotional Intelligence
(EI) is an essential element in determining personal employability. The “graduate skills gap” still
exists in fulfilling the demands of the labour market in Malaysia. Thus, there is an urgent need to
investigate students’ perception in enhancing employability and strategies universities could do
to: Fill the gap between university job preparation programs and employers’ demand and improve
employability and reduce the unemployment rate among graduates in Malaysia. The study was
conducted on students from business schools in Malaysian public universities using Cluster
Sampling Technique. SPSS and AMOS were used to analyse the data and the results showed that
students believe that soft skills and personality traits have an indirect effect on employability
through emotional intelligence while university program has a direct effect on employability.
Implications of the study can benefit the educational institutions and corporates to adopt strategies
to enhance employability and overcome the unemployment issue among graduates.
Keywords: Employability, Soft skills, Personality traits, University programs, Graduates,
Emotional Intelligence.
1. Introduction
Enhancing one's employability or upgrading one's skills is a significant purpose of Human
Resource Development. Personal circumstances, individual variables, and environmental
influences all play a role in the employability construct. The job market today is a dynamic and
challenging sphere for young people graduating from various educational institutions; the job
opportunities are more for graduates who possess the employability skills expected at work. But
only about 30% of the candidates who appear for interviews get selected (Nisha & Rajasekaran,
2018). In this context, several nations throughout the world have expanded their focus on skill
development, as to prepare graduates for the world of employability as required by employers
(Abelha, Fernandes, Mesquita, Seabra & Oliveira, 2020). Also, the absence of emotional
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intelligence weakens both a person’s and organization’s growth and development (Pathak, Shankar
& Tewari, 2018). No one factor alone can determine the employability of a person. It’s a
consequence of a number of factors that act together. Employers deem soft skills as employability
skills. In the same vein, (Gridwichai, Kulwanich, Piromkam, & Kwanmuangvanich, 2020)
revealed that personal traits are one of the growing problems faced by organizations; that always
brings offensive effects on employee performance and employability and that apart from the job
opportunities available, factors related to the persons themselves, such as their interests or personal
traits, also contribute to the difficulty of finding work (Baruddin et al., 2021). The major aim of
university programs and HE is to generate work-ready graduates (Jackson, 2017; Mcgunagle &
Zizka, 2020) also emotional intelligence abilities must function in combination with skills and
personality traits (Riopel, 2020). The extent to which university students understanding of
employees ’soft skills and personal traits and employers’ expectations in the new graduate leads
to further reflection: Do university graduates understand what employers seek? What strategies
can improve employability? These questions along with many others can help clarify the origin of
this study.
2. Literature Review
The job market today is a dynamic and challenging place for young people graduating from various
educational institutions; the job opportunities are more for graduates who possess employable
skills that are expected at workplaces. But only about 30% of the candidates who appear for
interviews get selected (Nisha & Rajasekaran, 2018). To have a clear understanding of the
employability situation, it is better to explain it in detail.
Many different definitions of graduate employability exist, Sutil & Otamendi (2021) reemphasized
and pointed out that employability is the ability to move self-sufficiently within the labour market
to realise potential through sustainable employment. While Behle (2020) termed employability as
the ability to find, keep, and progress in graduate employment. This was confirmed by Koenelakis
& Petrakaki (2020), who believed that employability is a collection of accomplishments – skills,
understandings and personal characteristics – that make graduates more likely to obtain
employment and succeed in their chosen vocations, benefiting themselves, the workforce, the
community, and the economy. Many academics and researchers agree that there is an increasing
gap between soft skills expected by employers and the level of soft skills possessed by graduates
(Singh & Jaykumar, 2019). Employers generally prefer to recruit an individual who possesses soft
skills in addition to hard skills (Maclachlan, 2019). Later, Majid, Eapen & Aung (2019) pointed
that there was evidence that soft skills compete with hard skills in their ability to predict
employability. Alongside, Charlton (2019) argued that strengthening soft skills is one of the best
investments a graduate can make for a future career. Another factor that may influence
employability is personality traits; To emphasize the importance of traits, Baptiste (2018)
mentioned that traits may represent not only the characteristics of people, but also their very selves.
This statement shows the stability and consistency of personality traits, which help to predict how
persons will behave over time when placed in different situations. Universities programs are
required for thousands of people to succeed in the workplace as the main goal of universities
programs is to transform students into critical and rational reflecting individuals by improving
their learning skills, conduct and lifetime empowerment (Teichler, 2018). Universities differ in
their mission, goal, functions, programs and the type of certificate they offer (Alemu, 2018) but
the major aim of university programs and HE is to generate work-ready graduates (Jackson, 2017;
Mcgunagle & Zizka, 2020). Emotional intelligence (EI) is a form of intelligence that involves the
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ability to monitor one's own and other's feeling and emotions, to discriminate among them, and to
use this information to guide one's thinking and actions (Poonamallee et al., 2018) having a higher
level of EI and better communication and problem-solving skills will lead to better employment
opportunities (Hasnah et al., 2018).
Relationship Between Soft Skills, Personality Traits, University Program, Emotional
Intelligence, and Employability
Today, soft skills are some of the most in-demand skills in any workplace. Vanitha & Jaganathan
(2019) found that graduates with skills such as effective communication, problem solving, time
management, teamwork which are known as soft skills as a whole have much better chances of
survival in the tough corporate world compared to those who are lacking in soft skills and that
employability skills are very essential in the current global job market. Other previous studies have
shown that personality traits may predict various labour market outcomes, such as earnings and
unemployment (Maczulskij & Viinikainen, 2021). Competencies are divided into three main
components: knowledge, skills, and personal traits. This was supported by Abidin (2021), who
included personality as an important criterion in the world of work in the 21st century.
Lack of knowledge among job seekers is the root of the growing unemployment. As such,
universities programs must not only create graduates with certain qualifications but also graduates
with the skills that employers want (Ali, Othman & Ahmad, 2017). Researchers advise graduates
to enhance their emotional intelligence in order to fulfil corporate criteria for employability skills,
as people's emotional intelligence is also positively linked with significant employment
experiences and emotional attachment to current careers and jobs such as Li & Pu (2021) assert
that interns who score high on emotional intelligence have a higher chance of being considered for
employment by the internship host organisation than those who score low. Advocates such as
Kaur, Shri, & Mital (2019) also agreed that educators want students to graduate with solid
foundation in knowledge and skills which will help them to be productive managers and effective
leaders, and this can happen by implementing emotional intelligence (EI) theory and exercise.
2.1 Problem Statement
Employers have blamed higher education institutions (universities) for not adequately preparing
students for the labour market, thus continuously highlighting the lack of soft skills and traits of
students (Succi, 2019). However, one of the major problems that HEIs face across the world is
generating job-ready graduates (Pazil & Razak, 2019). The number of unemployed graduates in
Malaysia in 2018 was 162.0 thousand persons, and the youth unemployment rate in 2019 was
170.3 thousand persons, 11.26%, and the number of unemployed persons escalated to 768.7
thousand persons by May 2021 (dosm.gov.my). While institutions of higher learning in Malaysia
produce over 200,000 graduates, one of five graduates are unemployed, with the majority of
Degree holders (Leo, 2019). Additionally, the Malaysian Employers Federation reported that
73.2% of the companies responding indicated that graduates lack skills and unemployed graduates
increase the negative impression on higher education (Britshi, 2019). In addition, graduates lack
the suitable skills, traits and qualifications essential to fulfil the demands of the industries
according to many Malaysian employers (Maniyam et al., 2021). Research on emotional
intelligence has been conducted overseas, but although the topic is gaining attention in Malaysia,
it is still in its preliminary stage (Khuan & Lin (2021). Therefore, there is an urgent need to
investigate students’ perception of factors that impact employability to fill the gap between
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universities job preparation programs and employers demands and improve employability and
reduce the unemployment rate among graduates in Malaysia.
3. Method
For data collection purposes, survey questionnaires were distributed to collect the specific
information required to obtain the research objectives. The data was analysed using (SPSS) and
(AMOS). Structural Equation Modeling (SEM) was utilized to examine interactions among study
variables. In this study, the population is focused on students in selected Malaysian public
universities using cluster sampling. The sampling frame in this study is randomly selected among
public universities in Malaysia that offer business programs. Selection was based on distribution
of states by zones in West Malaysia with a sample size of 384.
3.1 Data Analysis and Results
The demographic characteristics of the student population who have responded as shown in Table
1. Analysis of demographic constructs was done by frequency and percentage. Also, the results of
the correlation analysis revealed that there is significant positive relationship between study
variables as shown in Table 2.
Table 1: Results of Demographic Characteristics
Table 2: Correlation Coefficient
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The As far as the predictive ability of soft skills, personality traits, university program on
employability, structural equation model (SEM) was used, after running EFA and CFA the results
indicates a good Model Fit Indices as shown in Figure 1 below.
Figure 1: Structural Model Indicating the Predictors of Employability
As shown above, the structural model consists of three predicting constructs: soft skills (SS),
personality traits (PT), university program (UP). Hence, the proposed hypotheses that examines
the validity of the model are expressed in Table 3 and to verify the mediator test, a bootstrap test
using the re-sampling size (n = 1,000) (Awang, 2012, 2015a, 2015b) should be performed as it is
considered a powerful method to detect mediation (Memon, Cheah, Ramayah, Tine & Chuah,
2018). Table 4 below lists the bootstrapping results for (H8, H9, H10) which states that there is a
significant positive effect of mediating emotional intelligence on the relationship between each of
the study variables of (soft skills, personality traits, university program) and employability as
perceived by students in public universities in Malaysia.
Table 3: Direct Hypothesis Testing Results for Generating Model
Firstly, the bootstrapping results in Table 4 show the direct relation of the same route of 0.968,
whereas the indirect effect of SS on EMP is 0.009. This indicated that there was an influence from
mediators EI because the indirect effect was greater than the direct effect between SS and EMP.
Next, the bootstrapping results also showed the direct effect of the same route of 0.938, whereas
the indirect effect of PT on EMP was 0.005. This implied that there was influence from mediator
EI because the indirect effect was greater than the direct effect of PT on EMP. Finally, the direct
effect of the same route of (***) was shown, whereas the indirect effect of UP on EMP was 0.008.
This meant that there was influence from mediator EI because the indirect effect was greater than
the direct effect of UP on EMP.
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4. Discussion
Malaysia's young unemployment issues are particularly acute during these difficult times, but they
are also firmly founded in fundamental trends and unemployment rates among young adults and
recent graduates imply a lack of quality and a mismatch in skills (Aun, 2020). The study revealed
that students are aware of graduate employability and rely heavily on skills traits, knowledge, and
being emotionally intelligence for the employability enhancement. This study aimed to view
factors that may impact employability from students’ perspective. the findings of the study
demonstrated significant positive correlation among all study variables. As far as the direct
contribution of soft skills, personality traits, and university program to the rest of the study
variables, results have revealed that soft skills and personality traits were having insignificant
direct contribution to employability while university program was shown to have a significant
contribution to employability. This is because the consensus in the literature has been that
employability is core to higher education (Mawson and Haworth, 2018; Wilks et al., 2017). On
the other hand, soft skills and personality traits were having significant positive relationship and
impact on emotional intelligence also, emotional intelligence significantly impacted employability
with a significant positive relationship between the two. Emotional intelligence showed a
significant contribution to mediating both soft skills and personality traits (full mediation) on
employability while partially mediated the relationship between the university program and
employability.
Findings of the study showed that soft skills contribute directly to emotional intelligence so an
effective training of soft skills for the improvement of emotional intelligence is important as
students with greater soft skills like leadership and communication skills possess better emotional
intelligence (Rauf, Khalid, Rahman & Ghani, 2020). Public universities should consider curricula
modification to include a strong focus on employability outcomes as given that one of the main
objectives of universities is to promote employment and train highly efficient professionals to
address the needs of society (Chankseliani, Qoraboyev & Gimranova, 2021) through the
development of emotional intelligence since students believe that knowledge and skills provided
by their program has a direct influence on employability as general and emotional intelligence (EI)
and personality factors are part of the complex network of skills required to successfully perform
professional activities (Pertegal- Felices et al., 2017).
Table 4: Bootstrapping Results
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The findings of this study showed that there is a gap between employers’ expectations of factors
impacting employability and student perception while higher education institutions (universities)
act as a bridge between the two sides, as employers believe that soft skills and traits have a direct
influence on employability while students perceived that these skills and traits are essential to
develop emotional intelligence which in turn will have a positive impact on employability.
Therefore, emotional intelligence needs to be considered integrated as an educational strategy to
develop employability (Ningsih, Hariadi, Marniati & Rijanto (2021). Students believe that the
university program has a direct impact on their chances of employability throughout the knowledge
and skills learned during the program to be sufficient for them to be employed and holding an
academic certificate would improve chances of employability after graduating from university
(Hong, Ch’ng & Roslan, 2021). Employers should be encouraged to support universities through
the development of content for academic programs and ensure that universities are aware of the
changing skills demand in their industry. Thus, this study can benefit the educational institutions
and corporates to adopt the soft skills and traits for enhancing emotional intelligence which in turn
has a positive impact on employability. Emotional Intelligence can be embedded as a curriculum
in business schools for employability of students in future. This study aimed to add to the subject
of higher education teaching and learning by identifying the areas to consider in order to assist
students in growing their emotional intelligence while at university.
5. Conclusion
Based on the results that shows the students’ view of the factors that contribute to their
employability chances, this study clearly showed that each of students, universities and employers
play a different role to enhance graduates’ employability. Certain steps may be taken by students,
higher education institutions, and employers to overcome the unemployment issues. Students
should be able to identify and equip themselves with the skills in demand in the job market by
taking support and guidance from their institutes. Students should also constantly examine their
capabilities and improve their skills and attributes throughout time in order to be work ready.
Students must be willing to study and relearn. Lastly, students should make an effort to stay up
with current job market developments in order to have a thorough understanding of the labour
market's expectations such as the importance of being emotionally intelligent and its role impact
on the employability and being employed. on the other hand, Universities (Higher Education
Institutions) must serve as a link between students and businesses. Universities should be
responsible for making appropriate provisions for students' skill development in accordance with
market need. Universities training programs can enhance student’s employability capacity. Soft
skills programs should be embedded in formal education as focus should be on developing skills
considered important to be emotionally intelligence, which is considered important by the
corporates. Also, Assessment programs, such as self-assessment by students based on market
criteria, can be incorporated into the course framework to enable students critically evaluate their
skills and test their employability. Opportunities for active learning, such as internships, study
abroad in student exchange programs, or more extra-curricular activities, may have a positive
impact on the development of students' personalities and skill acquisitions also adopting a business
simulation games-based pedagogy to give business students a taste of various business issues by
managing a virtual company and incorporating real-life case studies into the curriculum to enable
students to understand and apply what they have learned in class. While the Ministry of Higher
Education may launch a national career service to provide information, advice, and guidance about
careers and learning for 18-24 years old; and may encourage employers to take on 18-24 years old
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for the work program during the study year to enhance experience and develop skills. As for
employers, businesses must take a more active role in connecting themselves with students if they
want to have better employers with the correct skill set. They must provide opportunities for
students to connect with one another, teachers to interact with one another, and greater cooperation
with higher education institutions. For example, to satisfy the demands of their business,
corporations must provide cost-effective training options, such as free certification courses.
Corporates should allow students to be exposed to diverse industrial job paths, as this will assist
them better connect their career objectives with workforce requirements. They can also arrange
employee engagement sessions with instructors and students to directly solve skill issues.
Companies can create workforce-related educational opportunities for students, such as skills
competitions, apprenticeships, or internships, and sponsor specific programs with a university or
institute that will benefit them in the long run.
6. Acknowledgement
The authors would like to deeply thank Infrastructure University Kuala Lumpur (IUKL) for giving
us the opportunity to conduct and publish this research. The corresponding author would also like
to thank AP. Dr. Manal Mohsen Abood for her financial support throughout the entire research
period.
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STUDENT’S PERFORMANCE THROUGH GAMIFICATION
IMPLEMENTATION IN TEACHING AND LEARNING
ACTIVITIES IN QUANTITY SURVEYING PROGRAMME,
UNIMAS
Sitti Diana Tamjehi1*, Nadia Zaini2, Siti Syariazulfa Kamaruddin3 and Afzan Ahmad
Zaini4
1 2 3 4 Department of Quantity Surveying, Faculty of Built Environment, Universiti Malaysia Sarawak, Kuching,
MALAYSIA
*Corresponding author: dianatamjehi@gmail.com
Abstract: Gamification is one of the most significant innovations in technology for interaction
between people. Thus it is not surprising that gamification has been discussed and introduced
especially in the field of education where promoting and sustaining engagement in class. To helps
the education sector in implementing the transformation teaching and learning, the gamification
is one of the best approaches. In quantity surveying programme, not all courses implement this
kind of transformative learning and lack of further research that have been execute. Therefore,
this research aim is to obtain student’s performance through gamification implementation in
teaching and learning in Quantity Surveying programme. The data collection is gained from the
comparison assessment and observation among the students during the implementation of the
game in class. The results show that students’ performance is very encouraging when gamified the
teaching and learning in class. This finding will help educators to review how effective the
gamification approach in teaching and learning and produce a variety of games for quantity
surveying programme which can help student’s performance.
Keywords: Gamification, Teaching and Learning, Quantity Surveying.
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THE IMPACT OF FOOD-BATTLE VIDEO CONTENT: A CASE
OF TASYI ATHASYIA YOUTUBE CHANNEL
Syafina Almaira1* and Ira Fachira2
1 2 School of Business and Management, Bandung Institute of Technology, Bandung, INDONESIA
*Corresponding author: syafina_almaira@sbm-itb.ac.id
Abstract: Internet and social media have become essential in the digital era and have become the
primary medium to receive information and news during the COVID-19 pandemic. Most business
owners utilize experts in their business area to influence people with their actions called
influencers. In this context, YouTube provides a platform that allows Indonesian food influencers
to deliver their culinary interests in informative ways. This research aims to understand how
effectiveness of influencers affect customers’ perceived credibility and purchase intention and
determine how perceived video characteristics affects customer purchase intention. Moreover, this
study determines the moderating effect of brand image in the relationship between effectiveness of
influencers to purchase intention. For this study, the researcher sees one of the famous Indonesian
food influencers, Tasyi Athasyia and focus on Tasyi Athasyia Food-Battle video content. The data
in this research used quantitative methods with 264 respondents of Tasyi Athasyia Food Battle
video content viewers. The data was processed using PLS-SEM. The research found that the
effectiveness of influencers, especially Tasyi Athasyia, significantly impacts the perceived
credibility of information and purchase intention. Also, brand image is a quasi-moderator of the
effectiveness of influencers to purchase intention. Furthermore, the research also shows that
perceived video characteristics significantly affect purchase intention through the perceived
credibility and usefulness of the video's information.
Keywords: Food Influencers, Influencers, Brand Image, Effectiveness of Influencers, Perceived
Video Characteristics, Perceived Credibility of Information, Perceived Usefulness of Information,
Purchase Intention, Tasyi Athasyia.
1. Introduction
Internet and social media have become essential things in this digital era. The internet has become
the primary medium for people to receive information and news, especially since the COVID-19
pandemic hit the world and affected many aspects of life. The Indonesian Government announced
the first case of Coronavirus in Indonesia in March 2020. COVID-19 pandemic has a significant
role in escalating the number of internet users in Indonesia as the government regulation forces
people to do all their activities online. People become more dependent on the internet and social
media to fulfil their social interactions and economic needs. The number of internet users in
Indonesia increased rapidly to 64.25% in 2020 during the Indonesia COVID-19 spread (Badan
Pusat Statistik, 2021). Indonesia's rapidly rising number of internet users has an impact on
increasing social media users. As of 2021, Indonesia is in the fourth position with the highest
number of social media users worldwide after China, India, and the United States, with current
active social media users close to 200 million (Dixon, 2022). Therefore, the increasing number of
social media users has led many businesses to utilize social media such as Instagram or YouTube
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and use influencers who are experts in their business area to influence people with their social
media accounts.
Influencers can utilize their social media to post content about specific areas such as lifestyle,
fashion, healthy living, food, beauty, or others. In the food industry, a famous influencer is called
a food influencer. A food influencer is a person that creates videos to give reviews about some
new or viral food brand. Many Indonesian Food influencers use YouTube to feature their culinary
activities since YouTube is the most accessed social media platform in Indonesia (Katadata, 2021).
Briliana et al. (2020) also stated that YouTube provides a platform that allows Indonesian Food
influencer to deliver their culinary interests in engaging and informative ways. Food influencers
use YouTube as their channel because the customer in the food business relies on YouTube to find
information about the taste of the food or menu recommendations. Influencer content
communicates with potential customers more genuinely, honestly, and directly than brand-
generated advertising (Talavera, 2015). Moreover, a study by Hsu et al. (2013) found that the
recommendations can significantly affect customer consideration before their final purchasing
decision and depend on the content. Jiménez-Castillo and Sánchez-Fernández's (2019) also stated
that perceived influence from content made by digital influencers affects the intention to purchase
the recommended brand.
One of the famous food influencers in Indonesia is Tasyi Athasiya, an Indonesia content creator
that reviews various Food and Beverage brands or restaurants with more than 2 million subscribers
in YouTube. Tasyi Athasyia YouTube channel provides various content such as Jajanan Fav
Tasyi, Review Restaurant, Battle Makanan, Trying Food Around the World, and other content
segments. The research will focus to Food-Battle content that reviews a similar food product from
several brands or restaurants that appeared in this Food and Beverage industry.
The emergence of many food brands and restaurants with similar products gives customers lots of
choices. Tasyi’s YouTube channel could help the viewers find a suitable brand that matches their
appetite. If the review about the product is positive, it also could help the business owners to raise
their brand awareness and brand image. Therefore, this research aims to know when their interest
in buying is generated and what factors influence Tasyi Athasyia viewers’ intention to purchase
food and drinks. Knowing the actual factor that influenced viewers’ buy intent will assists Tasyi
Athasyia’s YouTube channel enhance her review explanation in her video and content, which can
help new local food and beverage brands improve and develop their companies. Furthermore, the
research could also help other food influencer to determine what type of content that could boost
their own channel based on customers consideration.
2. Literature Review
Perceived Video Characteristics (PVC)
YouTube video content has some characteristics supported by specific features, such as quality
may affect customers' purchase intention (Satgunam et al., 2010). The quality of the video, whether
high or low, it could affect user engagement. The higher quality of the video could increase user
engagement (Dobrian et al., 2013). Khan (2017) conceptualized YouTube user engagement as
active participation and passive content consumption by liking or disliking, commenting, and
sharing the video based on entertainment, interaction, and information-giving motives. A comment
may be seen as an indicator of product popularity on a product's online content and can affect
purchase intention (Lee, 2009). Harris and Rae (2009) also supported this statement; many
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consumers prefer to base their purchasing decisions on the comments and recommendations made
by other consumers on social media. Furthermore, the length of the video, preparation, and
presentation of the content also influence customer purchase intention (Yüksel, 2016).
Perceived Credibility of Information in The Video (PCI)
The standard definition of credibility in the communication and psychology field is the
believability of information (Metzger et al., 2015). Believable people are credible people.
According to Brown et al. (2007), people tend to consider the argument as a valid source from
credible people sources, and it can lead them to process the expert message with a positive bias.
Based on previous research, the credibility of information provided by the YouTube Influencer
affects consumers' perceived information credibility (Xiao, Wang & Chan-Olmsted, 2018). Silvera
(2004) posits that consumers perceive a celebrity, now often called an influencer, through how
they endorse products. Consumers often consider reviews credible if it is congruent with their
knowledge and experience (Cheung et al., 2009). Endorsing or giving product recommendations
is also more influential than traditional recommendations (Senecal & Nantel, 2004). A prior study
has discovered the impact of the review on brand image in consumers' minds (Kostyra et al., 2016).
Furthermore, Mir and Rahman (2013) stated that consumers believe that product reviews and
information generated from product content on YouTube are more reliable than commercials.
Perceived Usefulness of Information in The Video (PU)
Consumers today utilize social media like YouTube to access user-generated or influencer product
information to help them make a purchasing decision. Perceived usefulness is the extent to which
online platforms belief that the information would increase efficiency in obtaining product
information (Pavlou & Fygenson, 2006). The influence’s content on YouTube can be from reviews
that deliver some information when they try the products and use customers’ perspectives. The
previous study stated that these kinds of reviews could make the customer feel the usefulness of
the information provided and strongly influence consumers’ products, also leading to purchase
behavior (Senecal & Nantel, 2004). Other studies also have found that the usefulness of the
information and the easily accessible information is affected by the online consumption decision
(Cheung, Lee, & Rabjohn, 2008).
Effectiveness of Social Media Influencers (EI)
Social media influencers represent a new independent, third-party spokesperson who could change
social media users’ sentiment through video blogs (vlogs) and others (Gorry, 2009). Using a
platform like Instagram, YouTube, or others, influencers create content to promote specific
products to gain followers (Glucksman, 2017). Influencers can provide testimonies about the
advantages of using a product, endorse a product, or act as a brand spokesperson for a certain
period (Blackwell et al., 2006). Most marketers choose attractive, credible, or expert influencers
regarding the product while simultaneously matching the intended brand image (Hakimi,
Abedniya, & Zaeim, 2011). Dissanayake and Weerasiri (2017) used the terms effectiveness of
influencers to refer to the outcome of source-based factors. They were referring to the TEARS
model (Trustworthiness, Expertise, Attractiveness, Respect, and Similarity) suggested by Shimp
(2010) to determine the effectiveness of the source of information an influencer gives.
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Brand Image (BI)
Brand image is defined as the brand association that customers remember when they think about
a brand (Keller, 1993). Brand associations' strength, favorability, and uniqueness may describe a
brand's image. A robust, favorable, and distinct brand image relates positively to the willingness
to pay premium pricing and more considerable brand equity (Faircloth, Capella, & Alford, 2001).
It involves customer perceptions, emotions, or any symbolic meaning. To a previous study by
Mukherjee (2009), influencers have two sides of impact on the brand. If they give positive
feedback, it can be beneficial for the company. Otherwise, it can negatively affect brand image
since it can change the consumers' perspectives. Brand image can be the moderating variable
between social media communication and consumers' behavioral intention. Lin et al. (2013) found
that brand image has moderating in the relationship between eWoM to purchase intention. As a
result, when the brand image is regarded as strong, favorable, and distinctive, video content
significantly influences consumers' brand buy intention than when the brand image is perceived as
less intense, favorable, and unique.
Purchase Intention (PI)
Purchase intention refers to a consumer's desire to purchase a product or service or, in other words,
(Younus, Rasheed, and Zia, 2015). Purchase intention will occur when consumers have a favorable
attitude or expression about brands or services, as they are impacted by the excellent attitude
toward the product or services (Sa'ait, Kanyan, and Nazrin, 2016). Several factors from the brand
affect the customers' purchase intention. According to Lin et al. (2013), viewing online reviews
and comments makes the customers feel more confident with the products and increase their
purchase intention. Electronic word of mouth (eWoM) quality, quantity, and source expertise
positively impacts purchase intention. Their research also found that brand image has a moderating
effect on eWOM and purchase intention. Other research also supports that brand image has
moderating effects on eWOM to purchase intention (Kala & Chaubey, 2018). Another factor that
can affect purchase intention on a Brand is video characteristics. Therefore, the researcher focused
on the factors that can significantly affect customer purchase intention in the current research.
2.1 Problem Statement
In early 2021, the number of culinary businesses reached more than 200,000 in the marketplace
(Haasiani, 2021). Companies must be creative and adaptive so that their business can reach its
target market. The growth of the culinary business also gives the customer lots of brand choices
and a lack of awareness of a new brand. Before choosing a brand in the culinary industry,
customers tend to search for external information (Pedraja & Yagüe, 2001). From the previous
study, the electronic word-of-mouth or e-WoM recommendations lead to consumers’ motivations
to process information. Consumers tend to accept the recommendation, so they are willing to
switch their declared attributes preferences and choose the optimal product recommended (Gupta
& Harris, 2010). One of the examples is when people or Social Media influencers (SMI) create
contents that include reviewing and promoting some products.
With the development of technology and the increasing use of social media, Adreani et al. (2021)
stated that Social Media Influencer (SMI) has become one of the most effective ways of promoting
brands. Tasyi Athasyia is a content creator that can be categorized as an Influencer active on
YouTube and Instagram as her channel to share her preference on what she would like to buy to
her viewers. With 268,427,241video views on YouTube, Tasyi regularly uploaded new videos
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three times a week with a variety of content segment. According to socialblade.com, the data
suggests that Tasyi Athasyia's channel's YouTube analytical history has increased significantly
from May 2021.
Tasyi's purpose when creating her channel was to share her hobbies in the culinary and cooking
with her viewers, then later became a piece of information for customers before buying a product
because her explanations were fun and detailed. People tend to believe influencers, in this case,
Tasyi Athasyia, more as she always gives an honest review for the product. From all of this comes
an interest in delving into the impact of the video food battle review created by Tasyi Athasyia
since food battle content has become popular nowadays. The viewers are stimulated to choose the
winner's products since they expressed a positive preference. Birch (1999) associates people's
food's sensory with a positive signal that creates a favourable for that food. However, Yeomans
(2007) explains that if the consequences are negative, such as nausea or displeasing, it can make
people aversion to food. Tasyi preference is also supported by viewers who approve of her choices
and have similar preferences.
Knowing the factors that can influence food purchase intention would allow the influencer to
improve the information and quality of their video based on the customer preference for specific
content. The objective of this research is to understand how effectiveness of Tasyi Athasyia
through Food-Battle video content affect customers’ perceived credibility and purchase intention.
Moreover, the objectives are to determine how perceived video characteristics affects customer
purchase intention from watching Tasyi Athasyia Food-Battle video content, and to determine how
brand image moderate effectiveness of Tasyi Athasyia to purchase intention. By answering the
objectives, researcher could give recommendation to influencers to help their viewers find a food
product and gain more viewers and engagement. Influencers could also help out to promote the
product. This study also allows food business owners to improve their business by determining
which influencer they should collaborate with.
3. Method
The research uses quantitative method with purposive sampling technique considering the
researcher want to select the specific criteria such as viewers of Tasyi Athasyia YouTube Channel
who watch Food-Battle video content. The detailed method that used for this research will be more
explained on the following section.
3.1 Materials
This section describes the material used in this study, including samples, sites, and an explanation
of material preparations.
3.1.1 Samples
To gather the data, researcher used an online questionnaire to get respondents. The data collected
will test the correlation between the independent variables to the dependent variable whether
positive or negative to prove the hypothesis with moderating variable. The scope of the research
will be limited to people who watch Food-Battle Content on Tasyi Athasyia YouTube channel.
The researcher selects the number of samples required for the research using Malhotra's (2010)
sampling approach, which suggested that the lowest sample number the researcher could choose
the number of samples required for the research, which indicated that the lowest sample number
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utilized for a marketing study would be 200 samples. A total of 264 survey responses were
collected as the data for this study.
3.1.2 Site
The research conducted online survey using questionnaire to gather the primary data. The research
uses online survey using questionnaire to gather more respondents in broaden region in Indonesia.
Furthermore, the online survey is less time consuming and can be targeted to specific criteria.
3.1.3 Procedures
The research aims to explore new hypothesis model with exploratory of causal relationships and
impact among variables. According to Hair et al. (2019), PLS-SEM are used when the analysis
relates to testing the theoretical framework of predictive perspectives, the structural model is
complex, and include many constructs. Since the researcher uses an exploratory to generate the
hypothesis and wants to examine complex relationship between variable, PLS-SEM is appropriate
to this study. The conceptual framework and variable operationalization had been presented in the
following figure (Figure 1). Effectiveness of Influencers and Perceived Video Characteristics has
a role as an independent variable and Purchase Intention is the dependent variable. Moreover, the
term Perceived Credibility of Information and Perceived Usefulness of Information is the
intervening variable and Brand Image is the moderating variable between the relationship between
effectiveness of influencers.
Figure 1: Theoretical Framework
From the literature review, the theoretical framework as the figure above with the hypothesis
proposed is as follows:
H1: Perceived video characteristic has positive significant relation with perceived credibility of
information in the video.
H2: Perceived video characteristic has positive significant relation with perceived usefulness of
information in the video.
H3: Perceived credibility of Information in the video has positive significant relation with the
perceive usefulness of information in the video.
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H4: Perceived credibility of Information in the video has positive significant relation with purchase
intention.
H5: Perceived usefulness of the information in the video has positive significant relation with
purchase intention.
H6: Effectiveness of influencers has a positive significant relation with perceived credibility of
Information in the video.
H7: Effectiveness of influencers has a positive significant relation with purchase intention
H8: The effectiveness of influencers on customers’ purchase intention tends to be larger when the
brand’s image as stronger, more favorable, and more unique.
3.2 Measurement
The dependent variable in this study is “Purchase Intention” which was measured using 5 items
and was prepared from Younus et. al. (2015). As for the independent variables “Effectiveness of
Influencers” measured using 5 items and prepared from Shimp (2010) and “Perceived Video
Characteristics” measured using 4 items from Khan (2017). Moreover, the intervening variable
“Perceived Credibility of Information” (5 items) and “Perceived Usefulness of Information” (3
items) were constructed based on prior work Yüksel (2016) and term “Brand Image” as the
moderating variable measured using 4 items were developed by the researcher. The items are
included in the Appendix and 5-point Likert scale was employed as the data measurement scale
ranging from strongly disagree (1) to strongly agree (5).
3.3 Data Analysis
To analyze the data, researcher used SmartPLS and results of the study using Partial Least Square
(PLS) Structural Equation Modeling (SEM). PLS-SEM examines the predictive correlation
between constructs to see whether the relationship or influence between them (Chin & Newsted,
1999). As a result, PLS-SEM is appropriate for the study since the researcher want to examine
complex relationship between latent variable. The research instrument was measured with
questionnaires that contain of 26 questions items to initial sample for piloting test to 30 initial
samples. After the piloting test are valid and reliable, the researcher distributed the questionnaire
to 264 respondents to obtain the research data.
3.3.1 Validity and Reliability
The measurement model in this stage was analyzed using the procedure defined for reflective
measurement model (Hair et al., 2019). Initially, the internal consistency of the measurement items
was assessed by ensuring the Composite Reliability and Cronbach’s Alpha (α) are above 0.7
(Shuttleworth, 2015). The result show that the minimum Cronbach’s Alpha value was 0.715 and
The Composite Reliability values for this study ranged from 0.823 to 1.000 indicating that the
measurements items adapted in this study are considered reliable.
After having confirmed the reliability, the instrument was subjected to validity test. Hair et al.
(2019) suggested the validity of the data is measured with two components which are convergent
validity and discriminant validity for reflective constructs. Convergent validity is evaluated using
Standardized Loading Factors (SLF) and Average Variance Extracted (AVE). According to
Tabachnick & Fidell (2014), for the indicator considered satisfactory if the SLF score are above
0.7. However, a loading between 0.4 and 0.7 is considered fair and can be acceptable. Moreover,
AVE should be greater or equal to 0.5 to achieved its validity (Ahmad et al., 2016).
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Table 1: Convergent Validity and Reliability Test
Variable
Number
of Items
Minimum
Loading
Factor
Average
Variance
Extract
Composite
Reliability
Cronbach’s
Alpha (α)
Effectiveness of Influencers
5
0.662
0.520
0.843
0.768
Perceived Video Characteristics
4
0.737
0.594
0.854
0.772
Perceived Credibility of Information
5
0.696
0.563
0.865
0.805
Perceived Usefulness of Information
3
0.824
0.722
0.886
0.807
Brand Image
4
0.679
0.539
0.823
0.715
Purchase Intention
5
0.666
0.583
0.874
0.820
Moderating (EI*BI)
-
1.018
1.000
1.000
1.000
Discriminant validity result could be analyzed by Fornell Larcker Criterion. Fornell Larcker
Criterion is the result of square root of AVE and to ensure the validity, the square root value of the
AVE score for each construct should be greater than the correlation value between constructs and
other constructs in the model (Wong, 2013).
Table 2: Discriminant Validity
BI
EI
Mod
PCI
PU
PVC
PI
Brand Image
0.734
Effectiveness of Influencers
0.447
0.721
Moderating Effects
-0.176
-0.184
1.000
Perceived Credibility of
Information
0.524
0.667
-0.167
0.750
Perceived Usefulness of
Information
0.539
0.567
-0.251
0.673
0.849
Perceived Video Characteristics
0.357
0.475
-0.177
0.639
0.487
0.771
Purchase Intention
0.637
0.568
-0.243
0.591
0.571
0.406
0.763
The result from Table 1 and Table 2 show that all data are valid and reliable and the researcher
can continue to the next step of the analysis.
4. Results and Discussion
The following are the data collected whereas most of respondents are female with a total of
82.95%. Most respondents were 15-25 years old (87.88%). The most respondents’ occupation is
college students with 78.79%. All the respondents have watched Food-Battle content on Tasyi
Athasuia YouTube channel since most of the respondents are like to watch YouTube with 98.86%.
From the respondents who watched Tasyi Athasyia’s Food-Battle content, most of the respondents
has given likes or comments in Tasyi Athasyia’s YouTube channel with 73.86% and the usage
time that the respondents watching Tasyi Athasyia’s YouTube channel is for 1-3 times in a month
with 67.4%. Moreover, recommendation by the closest person such as family or friends is the most
answered by the respondent with 36.36%.
Regarding the validity and reliability, the researcher calculates the Stone-Geisser (Q2) test to
analyze the predictive relevance of structural model, and the predictive power of the structural
model is examined using Coefficient of Determination (R2) of the constructs. Furthermore,
Goodness of Fit (GoF) is calculated by multiplying the average value of Q2 by the square root of
R2.
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Table 3: Inner Model Test
Coefficient of Determination
(R2)
Stone-Geisser (Q2)
Perceived Credibility of Information
0.579
0.320
Perceived Usefulness of Information
0.458
0.325
Purchase Intention
0.544
0.305
Average
0.527
0.317
GoF
0.230
According to Moore et al. (2013) the result of Coefficient of Determination could be implied that
Effectiveness of Influencers and Perceived Video Characteristic explains 57.9% of the variance in
Perceived Credibility of Information and considered as moderate effect size. Perceived Video
Characteristic and Perceived Credibility of Information explains 45.8% of the variance in
Perceived Usefulness of Information considered as weak effect size. Moreover, Effectiveness of
Influencers, Perceived Credibility of Information, and Perceived Usefulness of Information
explains 54.4% of the variance in purchase intention considered as moderate effect size.
Furthermore, according to Götz et al (2010), the result of Stone Geisser indicates that the model is
predictively relevant since the Q2 > 0. This study generates a goodness of fit score of 0.230 which
fulfil the greater than the minimal requirement scores of 0.1. This score indicates that the model
may accurately represent the empirical data.
After conducting inner model test, hypothesis testing was carried out to see whether the hypotheses
that have been made are accepted or rejected. The path coefficient is used to see the correlation
between variable is positive or negative and the t-statistics and P-value are used to see whether the
relation is significant. The hypothesis is accepted if accepted if the path coefficient is positive.
Also, the hypothesis is accepted if the t-statistic is higher than 1.96 and P-value is less than 0.05
(Wong, 2013). Hypothesis result show H1 has a path coefficient of 0.416, t-stat of 8.850, and P-
value <0.001, which means that H1 is accepted. H2 is rejected because it has t-stat of 1.165 and
P-value 0.224. Meanwhile, H3 has a path coefficient of 0.612, t-stat of 7.823, and P-value <0.001,
which means that H3 is accepted. H4 has a path coefficient of 0.156, t-stat of 2.166, and P-value
of 0.031, so the H4 is accepted. H5 is accepted because it has a path coefficient 0.121, t-stat of
1.974, and P-value of 0.049. H6 also accepted because it has a path coefficient 0.470, t-stat of
9.342, and P-value <0.001. H7 has a path coefficient of 0.210, t-stat of 3.994, and P-value <0.001,
which means that H7 is accepted. To answer H8, the researcher conducts moderating test and the
result are shown on the table below.
Table 4: Moderating Effect Result
Original
Sample
Standard
Deviation
T Statistics
P Values
Effectiveness of Influencers → Purchase
Intention
0.3454
0.0415
8.3151
0.0000
Brand Image → Purchase Intention
0.4665
0.0498
9.3667
0.0000
(EI*BI) Moderating effect → Purchase
Intention
-0.0961
0.0475
2.0250
0.0434
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Figure 2: Simple Slope
Since all the test result of t-statistics and P-value are significant, according to Sharma et al (1981),
the researcher could identify brand image as a quasi-moderator, means that brand image can
moderates the relationship between effectiveness of influencers and purchase intention and also
brand image can be an independent or predictor variable. However, due to the negative moderating
effect at high level of the moderator Brand Image, the effect of Effectiveness of Influencers on
Purchase Intention is weaker, while at lower levels of moderator Brand Image, the effect of
Effectiveness of Influencers on Purchase Intention in stronger.
From the hypothesis testing, the output of the hypothesis testing model is as follows:
Figure 3: The Relationship Between Variables
Perceived video characteristics has positive significant relation with perceived credibility of
information in the video and the result aligned with with the previous research that has been done
by Yüksel (2016) and Marthur & Mittal (2019), who all found that perceived video characteristics,
which consist of quality video, the duration of the video, and content quality, correlates with
perceive credibility, specifically in YouTube videos. However, contradicts with Yüksel (2016) and
Marthur & Mittal (2019) previous research, perceived video characteristics has no significant
relation with perceived usefulness of information in the video. Moreover, this study also found
that perceived credibility of information in the video has positive significant relation with the
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perceive usefulness of information in the video and purchase intention. It indicates that Tasyi
Athasyia Food-Battle Content can be trusted for their opinion on detailed product information
mentioned in the video and could lead to purchase intention. Also, the perceived usefulness of the
information in the video has positive significant relation with purchase intention. This result is
consistent with Cho & Sagynov (2015) and Ventre and Kolbe (2020), who stated perceived
usefulness is one factor that affects consumers' purchase intention.
Based on the result of the hypothesis analysis, it is found that effectiveness of influencers has a
positive significant relation with perceived credibility of information in the video. This hypothesis
is accepted as also supported by the past findings by Xiao et al. (2018) found that trustworthiness,
social influence, argument quality, and information from YouTube influencers positively affects
consumer perceived credibility on YouTube video. From this finding, it could be said that Tasyi
Athasyia as a food influencer on YouTube affects the customer trust and their perception to believe
the information given in Tasyi Athasyia Food-Battle content. This study also found that
effectiveness of influencers has a positive significant relation with purchase intention, means that
Tasyi Athasyia could lead the consumers’ intention to purchase the product mentioned in Tasyi
food-battle content.
From the moderating result, the study found that brand image as a quasi-moderator. However, the
interaction term (EI*BI) has negative effect on Purchase Intention. It means that the relationship
Effectiveness of Influencers and Purchase Intention will weaken if there is higher level of
moderator brand image and vice versa, the relationship between Effectiveness of Influencer and
Purchase Intention will stronger if the level of moderator brand image. As a Quasi Moderator, it
could be said that brand image can moderate the relationship between the effectiveness of
influencers and purchase intention but also be an independent or predictor variable. This statement
is supported by a previous study from Lin et al (2013) that found eWoM quality, eWoM quantity,
and sender expertise can affect purchase intention and Brand Image have a moderating effect in
the relationship between eWoM and purchase intention.
5. Conclusion
Based on the findings, it is concluded that the effectiveness of influencers specifically Tasyi
Athasyia, has affected the perceived credibility of information given by Tasyi Athasyia through
Tasyi’s food-battle video content and purchase intention significantly. In this research, the
effectiveness of Tasyi Athasyia is reflected in expertise, attractiveness, trustworthiness, respect,
and similarity. It means that the audience sees Tasyi Athasyia as an expert in the food and culinary
category, attractive and trustworthy. Also, when they have respect and similar taste with Tasyi
Athasyia, they are more likely to have positively perceived credibility of the information given in
the video, which leads to intention to buy the winning product on Tasyi Athasyia Food-Battle
Video Content.
Moreover, perceived video characteristics are significantly affecting purchase intention through
perceived credibility of information in the video and perceived usefulness. Implies that when the
audience perceives video characteristics as a well-prepared and presented video, has enough length
of duration, and the content presentation, it can affect the purchase intention with their perceived
credibility and usefulness of the information stated in the video.
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Furthermore, the research finds that perceived credibility and usefulness of the information have
partially mediated the impact of perceived video characteristics and purchase intention.
According to moderating test result, it is found that brand image is a quasi-moderator, which means
that brand image moderates the relationship between the effectiveness of influencers and purchase
intention but also can be an independent variable that can affect purchase intention. As stated
before, the effectiveness of influencers, specifically Tasyi Athasyia, positively leads to purchase
intention when the audience has a positive brand image toward a product mentioned by Tasyi
Athasyia in Food-Battle Video Content. It can enlarge their intention to buy the products. On the
other hand, the brand image could also act as an independent variable that directly affects the
customers’ purchase intention.
The following are some suggestions to food influencers and the marketers in food industry:
a. For food influencers it is recommend to pay attention to their video content characteristics,
such as quality, duration, and how the video is prepared and presented to the audience. The
most important thing is that food influencers must provide detailed product information but
not be too wordy and overclaimed. Since the result points out that it can enhance audience trust
and make them feel helpful in determining the food product they want to buy, it also makes
their purchases more effective and efficient. Moreover, the food influencers should maintain
their expertise, attractiveness, trustworthiness, and respect during their explanation in the
videos. Also, food influencers need to explain their food appetite when explaining the food so
the audience can decide whether their appetite is suitable or not.
b. For food marketers it is recommend to carefully select potential food influencers for
collaboration. Food marketers may try to identify influencers who can represent their product
through social media posts. As a result, food marketers may choose influencers who provide
comprehensive information on food products based on their expertise, attractiveness,
trustworthiness, respect, and similarity to their target audience. Also, the content created by
food influencers is mainly perceived as a genuine and honest opinion so that the business owner
can improve and develop their business from their feedback.
The following are some suggestions for further research include:
c. Researcher suggests looking into additional food content segments from Tasyi Athasyia or
other food influencers, since this study only focuses on Tasyi Athasyia Food-Battle content.
d. The researcher also considers other factors that might significantly impact customers'
intentions to purchase food and beverages after watching food content made by food
influencer.
e. The future study may examine in greater depth food influencer qualities such as how they
explain the food, how they react while trying the food product, and speaking style to explain
how food influencers might engage their audience and be chosen as their favourite food
influencers.
6. Acknowledgement
This acknowledgement is expressed to the author’s family, Bandung Institute of Technology, my
supervisors, and reviewers. Thank you for the guidance, feedback, and support.
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THE IMPORTANCE OF DIGITAL FINANCIAL LITERACY TO
ANTICIPAYE IMPULSIVE BUYING BEHAVIOR IN
BUY-NOW-PAY-LATER MODE
Rahmatika Tri Wulandari1* and Sylviana Maya Damayanti2
1 2 School of Business and Management, Institute of Technology Bandung, Bandung, INDONESIA
*Corresponding author: rahmatika_tri@sbm-itb.ac.id
Abstract: The growth of financial technology (fintech) in Indonesia is increasing in line with
technological advances in this digital era, even expanding the form of financial services to
adopting the Buy Now Payment Later (BNPL) method which is currently the third favourite
payment service. The convenience offered by this BNPL payment method attracts the attention of
many online platform users, but behind the benefits received, impulsive buying behavior may
appear followed by low levels of financial literacy and digital financial literacy which actually
leads to a slump in paying off unnoticed interest. The purpose of this research is to identify whether
digital financial literacy and its closely related financial literacy and the factors that underlie the
use of paylater effectively influence impulsive buying behavior using the buy now pay later
payment method in the younger generation whose financial literacy is lower than adults. This
research uses a quantitative approach to collect data through a survey of 385 respondents who
have used paylater throughout Indonesia. Data analysis technique using multiple linear regression
to analyze the relationship between variables. The results show that financial literacy and
behavior, digital financial literacy, and factors that underlie the use of paylater have a positive
influence on impulsive buying behavior using the buy now pay later payment method by 28.90%.
Keywords: Financial Literacy, Digital Financial Literacy, Impulsive Buying Behavior, Buy Now
Pay Later Payment Method.
1. Introduction
Technological advances in this digital era have brought forth the latest technology-based
innovations, one of which is in the realm of financial services which is marked by the presence of
financial technology (fintech). Fintech is a combination of information technology and financial
services that can make transactions done quickly without worrying about distance (Bank
Indonesia, 2020). The growth of fintech in Indonesia, which has increased during this pandemic
by 91% according to Bedjo Santoso at the Digital Talkshow and book review of the Fintech
Ecosystem in Indonesia, goes hand in hand with increasing internet penetration in 2021 which is
also increasing by 15,5% from the previous year, from 175.4 million to 202.6 million users
(Wearesocial & Hootsuite, 2021).
The initial entry of fintech in Indonesia was in the field of digital payments and peer to peer (P2P)
lending. Currently, fintech is expanding the forms of services provided to electronic money,
crowdfunding, and investment. Also, fintech adopts the Buy Now Payment Later method (BNPL)
and cooperates with several digital platforms that are widely used by Indonesian people in online
transactions, such as Traveloka, Shopee, Gojek, etc. BNPL's unique payment method attracts the
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attention of many online platform users because of the loan approval and easy process compared
to using credit or other payments and is in demand with various tempting promos.
Reinforced by an independent research institute, the Research Institute of Socio-Economic
Development (RISED) in February 2021, that out of 2,000 respondents, 77.2% agreed that access
to paylaters is easier than access to credit cards, 60.5% even agree that the ease of applying for
credit is the main advantage. Meanwhile, another advantage that is felt by 37.15% of respondents
is related to a small minimum transaction. Another advantage that is felt and agreed upon by the
respondents is that there is no admin fee if it is not used (31.65%) and can stop at any time
(30.45%). The number of users of each paylater application is 52% use shopeepaylater, while
31.28% use gopay paylater, and the rest use paylater in other applications (RISED, 2020).
With the ease of buying a product with financial support and easy application requirements for the
paylater feature, it is possible to create consumptive behavior. Consumptive behavior is an
individual's behavior by buying a product in excess without any basic needs but only based on
pleasure and desire (Lina & Rosyid, 1997). In addition, the digital finance industry in Indonesia is
still overshadowed by the low level of financial literacy and inclusion, especially among people
who do not have a bank account. Seeing these benefits, many people take advantage of it, but some
are unable to pay it off because of the high interest rate. In fact, Indonesia's digital financial literacy
rate has only reached 35.5% according to Teten Masduki, Minister of Cooperatives and SMEs
(MenkopUKM) in 2020. OJK conducted a national survey in 2019, the result is the level of
financial literacy of the young generation is lower than the adult generation.
The author wants to conduct research to find out the relevance of the importance of having good
digital financial literacy, especially for the youth in anticipating BNPL mode. This research uses
financial literacy, digital financial literacy, and paylater usage factors as independent variables that
are expected to be improved so that it can influence the use of digital financial innovations,
especially buy now pay later more wisely to avoid various existing digital financial problems and
the negative impact by using the buy now pay later method. Based on the description above, the
author takes the title "The Importance of Digital Financial Literacy to Anticipate Impulsive Buying
Behavior in Buy-Now-Pay-Later Mode".
2. Literature Review
2.1 Financial Literacy and Behavior
The definition of financial literacy is interpreted very diversely by various studies and institutions,
there is no universal standard regarding the definition of financial literacy. According to Vitt et al.
(2000), financial literacy is defined as the ability to read, analyze, manage, and communicate about
personal financial conditions that affect material well-being to take action resulting from processes
to thrive in a complex financial world. This includes the ability to discern financial choices, discuss
money and financial matters without (or despite) inconvenience, plan for the future, and respond
competently to life events that affect financial decisions on a daily basis, including events in the
economy in general (Vitt et al., 2000).
Financial literacy affects individual financial behavior and plays an important role in the formation
of wealth equity, where having good financial knowledge helps individuals make wise decisions
and can manage finances better, on the other hand, people who are less literate rarely make efficient
choices that lead to better outcomes, have a lot of debt, save little, and are prone to fraud (Andarsari
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& Ningtyas, 2019). Research conducted by Chen and Volpe (1998) shows that one's financial
knowledge can influence one's opinions and decisions. Low levels of financial literacy can affect
people in managing finances and ineffectiveness in managing money can make countries more
vulnerable to severe financial crises (Braunstein & Welch, 2002). Thus, having financial literacy
is very important so that financial problems that arise due to low financial literacy can be
minimized.
2.2 Digital Financial Literacy
Digital financial literacy is a limited payment or financial system service activity that is carried
out not through a physical office, but by using technological means, including mobile-based and
web-based and activity-party services (agents), with the target of serving the unbanked and
underbanked communities (Bank Indonesia). Digital financial literacy is a development of
financial literacy that is adapted to developments in the financial industry towards digitalization,
which is felt necessary for today's conditions (Sapulette et al., 2022).
Digital financial literacy directly connects or provides knowledge about online purchases, online
payments through various means, and online banking systems (Prasad and Meghwal, 2017).
Financial literacy is a problem in the digital age. People need to have a high level of financial
sophistication to use financial technology (fintech) products and services effectively, and avoid
fraud and major losses. Digital financial literacy is important because it will affect the way people
save and spend their money (OECD, 2018). From the OECD (2018), it was found that digital
financial literacy can influence financial behavior because digital financial services can improve
several aspects such as convenience and length of time for transactions, provider variants, service
variants, and other useful transactions between financial providers and consumers.
2.3 Financial Technology
Financial technology (fintech) is a financial intermediary institution whose function is to act as an
intermediary for financial transaction actors who do not want to cooperate with banks because they
feel burdened (Kotarba, 2016). Economic transactions carried out through fintech then create
several marketing methods while creating new payment schemes that are more practical and
modern, with the aim of providing convenience and attracting consumers. The services provided
include payment channel systems, digital banking, online digital insurance, Peer to Peer (P2P)
lending, as well as crowdfunding services (Chrismastianto, 2017).
2.4 Buy Now Pay Later Payment Method
Payment acceleration is also impacted by technological developments, as evidenced by the
continuous improvement in payment systems around the world. Based on Law no. 23 of 1999
Article 1 (6) concerning Bank Indonesia, currently known payment instruments other than cash
payments are paper-based payments (Cek/BilyetGiro), card-based (Credit Cards and Debit Cards)
and digital-based. Currently, people in Indonesia are starting to be introduced to the digital
payment system. According to Tarantang et. al (2019), digital payments are payments using
technology. The money is stored and then processed and received in the form of information in
digital payments, the money transfer process is carried out using electronic payment tools
(Tarantang et. al, 2019).
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In the middle of 2018, the fintech company introduced a payment technology with the concept of
installments without a credit card, called Paylater. Paylater is an alternative payment method that
adopts an online installment system without the need for a credit card and in the form of a credit
limit. Currently, paylaters are widely adopted by e-commerce in Indonesia, ranging from
entertainment companies, ticket and hotel reservations, market places, to online transportation
service providers (Eka, 2020). Several paylaters that have been integrated in Indonesia are
GoPayLater, ShopeePayLater, OVO PayLater, Traveloka Paylater, as well as those offered by
Akulaku, Kredivo.
2.5 Paylater Usage Facto
2.5.1 Perception of Ease of Use
Perception of ease of use is the act of an individual who believes that the use of a particular
technology can reduce his efforts to do something (Davis, 1989). In this research, this dimension
refers to the extent to which users feel that paylater technology is easy to use and simple.
2.5.2 Benefits Perception
Perception of benefits is the level of belief of an individual that using the technology will increase
his job performance (Davis, 1989). An individual will use a technology if he already knows the
benefits that may be felt when using the technology (Thompson, 1991). In the research conducted,
this perceived usefulness refers to the extent to which paylater users believe that the use of this
technology has benefits in online transactions.
2.5.3 Attitude Toward Actual Usage Intensity
According to Davis (1989), the intensity of the use of a technology is the desire of an individual
to continue to use the technology. An individual's attitude and attention to a technology can reflect
the level of technology use of the individual such as the desire to add additional devices to the
technology, the desire to invite others to use the technology, etc. (Hanggono et al., 2015). When a
technology is easy to use, has benefits in its use, users will continue to use the technology based
on the benefits they feel, this can then lead to user satisfaction (Tangke, 2004). Technology's
usability and convenience of use contribute to shopping pleasure, which enables to explain the
factors that lead to impulsive purchases (Fataron, 2020).
2.6 Impulsive Buying Behavior
Impulse buying is a consumer's tendency to buy a product spontaneously and immediately (Rook
and Fisher, 1995). Meanwhile, according to Baumeister (2002) impulsive buying is a sudden urge
to buy a product, this purchase is not planned or there is no initial intention to buy, where
consumers will buy products on the basis of encouragement without considering the long-term
consequences of the purchase. Impulsive buying behavior occurs suddenly and the individual
cannot resist the desire to buy an item even though the item is not a need or purpose. In essence,
impulse buying is a behavior when an individual feels a spontaneous urge to buy a product without
prior planning, this behavior can be caused by two factors that come from the individual himself
and from the market (Harmon and Novia, 2016).
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2.7 Problem Statement
From the previous explanation, in addition to the convenience offered by the new payment method
feature, which is already in great demand or often called a paylater, it can also cause other adverse
effects. This research is used to anticipate impulse buying behavior in the buy now paylater method
which can encourage problems related to digital financial literacy levels by investigating the
relationship between digital financial literacy and impulsive buying behavior on the buy now pay
later payment method. Based on the previous study, digital financial literacy had a positive effect
on spending behavior, saving behavior, and investment behavior (Rahayu et al, 2022). Digital
financial literacy is a development of financial literacy that is adapted to digitalization; therefore,
it is necessary to find out the relationship between financial literacy and impulsive buying behavior
in buy now pay later payment method. Based on Anifah (2020), financial literacy has a positive
and significant effect on consumptive behavior. This is also supported by previous research of
Fauzia and Nurdin in 2019. However, there is a contradictory study that financial literacy affects
consumptive buying with a negative relationship (Nurita et al, 2017). With the ease of using
paylater technology has an influence on the impulsive buying behavior of e-commerce users in
Indonesia (Sari, 2021). Therefore, based on the explanation, this study proposed the following
hypotheses:
H1: Financial literacy has a negative relationship and significant influences on impulsive buying
behavior
H2: Digital financial literacy has a positive relationship and significant influences on impulsive
buying behavior
H3: Paylater usage factor has a positive relationship and significant influences on impulsive
buying behavior
Figure 1: Conceptual Framework
3. Method
3.1 Data Collection Method
This research applied Quantitative approach and collected two types of data, which are primary
and secondary data which refers to information obtained from the previous study by researchers
relating to the variable of interest for the specific purpose of the research. To obtain primary data,
this research used questionnaire that was designed accordingly to answer the research question and
fulfill the research objectives. The population and sample used in this study were conducted with
a judgment sampling approach in which sampling was based on characteristics set against the
target population elements that were adjusted to the objectives or research problem. The criteria
for the respondents used are youth aged 15-24 years who have used paylater in Indonesia.
Digital Financial Literacy
Impulsive Buying Behavior
Financial Literacy
Paylater Usage Factor
H1
H2
H3
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3.2 Data Analysis Method
This method used two or more explanatory variables to predict the outcome of a response variable
with the goal of explaining the relationship between multiple independent variables against one
dependent variable. The independent variables in this research are financial literacy, digital
financial literacy, and paylater usage factors and the dependent variable is impulsive buying
behavior on using paylater payment method.
A total of 385 respondents were collected through questionnaire. The data collected were analyzed
statistically using MLR method by using SPSS. The validity and reliability of the questionnaire
data were tested using SPSS. After the questionnaire is proven valid & reliable, the classical
assumption test was conducted. Afterwards, the multiple linear regression analysis was conducted
to test the hypothesis.
4. Results and Discussion
4.1 Characteristics of Respondents
This research was conducted to 385 respondents that are identified as paylater users in Indonesia.
The demographic characteristics of the respondents obtained were 25.2% aged 15-18 years old
(young youth) and 74.8% aged 19-24 years old (old youth), then 72.7% were female and 27.3%
were male, and occupational status was dominated by students or college students, but few of those
respondents had side jobs, such as freelancer, entrepreneur, and employee. The respondents
domicile status mostly in Java island, especially in East Java (17.40%), followed by West Java
(13.77%), DKI Jakarta (13.51%), DI Yogyakarta (7.27%) and Banten (7.27%), and Central Java
(3.64%). The second rank domiciled in Kalimantan island (15.32%), then followed by Nusa
Tenggara and Bali island (13.51%). Meanwhile, respondents from Sulawesi island and Maluku
and Papua island were still very few compared to others, showing that there are still very few
paylater users in that area.
Out of 385 respondents who have experience using paylater financial services, some of them only
used one application, such as ShopeePayLater, GoPayLater, OVO PayLater, Link Aja, Akulaku
PayLater or Akucicil, Lazada PayLater, Traveloka PayLater, but there were also respondents using
more than one application paylater. There were other paylater service providers that are used, such
as Dana Paylater, Kredivo PayLater, Bukalapak BayarNanti, and Tiketcom Paylater. The most
paylater users are ShopeePayLater (82.86%), GoPayLater (20.26%), OVO Paylater (9.35%),
Akucicil (4.16%), and the rest use other paylater applications.
4.2 Data Analysis
In this research, data were analyzed by utilizing MLR SPSS with three steps. The first one is the
validity and reliability test to ensure that the instruments used in this study were valid and reliable.
The second step is classical assumption test and the last step is the multiple linear regression.
There were four classical assumption tests conducted in this research, which are normality test,
multicollinearity test, heteroscedasticity test, and auto correlation test.
Indicators in this research were analyzed using df (degree of freedom) with the formula df = n-2,
where n = number of samples. So, the df used is 385-2 = 383 with an alpha of 5%, then the result
of the r table value is 0.100. If r count is greater than r table and r is positive, then the questions
are said to be valid. The value of the reliability test can be accepted if the value is greater than 0.6
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and if the value above 0.8 it can be said to be good (Sekaran and Bougie, 2013). Based on the
conducted test, all the r count is greater than r table and the value is positive. Also, the all value of
Cronbach’s Alpha is greater than 0.6. Therefore, all variables are valid and reliable.
4.3 Classical Assumption Test
4.3.1 Normality Test
To determine the normality, this research is using a non-parametric test which is a 1-sample K-S.
The data is normally distributed if the result of test statistic > 0.05. Based on Table I, the Asymp.
Sig is 0.149 and exceeds 0.05, so it can be concluded that the data is normally distributed.
Table 1: Normality Test
Unstandardized Residual
Sig. (2-tailed)
0.149
4.3.2 Multicollinearity Test
This test is conducted to find out if there is a high correlation between two or more independent
variables in a multiple regression model (Adeboye et al., 2014). In this research, checking the
multicollinearity detected by looking at the tolerance value and variance inflation factor (VIF).
The tolerance must be greater than 0.1 and the VIF values must be less than 10. From Table II, it
shows that the tolerance values of all independent variables are above 0.1 and the VIF of all
independent variables are below 10, meaning that there is no collinearity between the independent
variables.
Table 2: Results of Multicollinearity Test
Model
Collinearity Statistics
Tolerance
VIF
Financial Literacy
0.738
1.355
Digital Financial Literacy
0.635
1.576
Paylater Usage Factor
0.785
1.274
4.3.3 Heteroscedasticity Test
Heteroscedasticity test is conducted to check if there is an inequality of variance from residual
from all observed regression models. In this research, Rank Spearman method is carried out by
regressing the independent variable to the absolute value of the residual (Gujarat, 2012). This
method is divided into 3 interpreting ways: seeing the significance relationship, seeing the
relationship strength, and seeing the relationship direction. If sig. (2-tailed) < 0.05, it indicates that
the relationship is significant, if correlation coefficient value is positive then the relationship is in
the same direction, and here are the basis references of the relationship strength:
0.00-0.25: weak relationship
0.26-0.50: moderate relationship
0.51-0.75: strong relationship
0.76-0.99: very strong relationship
1.00: perfect relationship
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Table 3: Results of Heteroscedasticity Test
Independent Variables
Correlation Coefficient
Financial Literacy
0.279
Digital Financial Literacy
0.349
Paylater Usage Factor
0.4881
Based on the conducted test, all of the sig. (2-tailed) is 0.00 < 0.05, so it can be concluded that
there is a significant relationship between Financial Literacy variable and Impulsive Buying
Behavior, Digital Financial Literacy and Impulsive Buying Behavior, and Factors Usage of
Paylater and Impulsive Buying Behavior. Based on the correlation coefficients, all show the
positive value which means that the relationship is in the same direction. Also, categorized as
moderate relationship because all are in the range of 0.26-0.50.
4.3.4 Autocorrelation Test
Autocorrelation test aims to find out if there is a correlation between variables in the same
prediction model with time series. To prove there is no auto correlation detected between the
variables, the Durbin Watson value must be dU ≤ DW ≤ 4-dU. dU and dL values for 385 samples
were not found, but dU values for 380 and 390 were 1,821 and 1,824, while dL values for 380 and
390 were 1,842 and 1,844. Based on the finding, the Durbin Watson score is 1.988, so it fulfills
the criteria that is higher than dU and lower than 4-dU. It means that there is no auto correlation.
4.4 Multiple Linear Regression
The findings of the analysis of multiple linear regression are displayed in Table IV.
Table 4: Results of Multiple Linear Regression
Model
Estimate
t
Sig.
(Constant)
7.779
3.051
0.002
Financial Literacy
0.236
3.306
0.001
Digital Financial Literacy
0.119
2.183
0.030
Paylater Usage Factor
0.324
8.078
0.046
From the regression model obtained, it can be interpreted as follows:
The constant of 7.779 states that if the variables of financial literacy, digital financial literacy, and
paylater usage factor are considered constant. The regression coefficient X1 of 0.236 states that
each addition of one unit of financial literacy value will increase the value of financial behavior
by 0.236 with the assumption that other variables are considered constant. The regression
coefficient X2 of 0.119 states that each addition of one unit of digital financial literacy value will
increase the value of financial behavior by 0.119 with the assumption that other variables are
considered constant. The regression coefficient X3 of 0.324 states that for every one category
increase in the paylater usage factor, the value of financial behavior will increase by 0.324 with
the assumption that other variables are considered constant.
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4.5 Partial Hypothesis Test (T-Test)
The t-test is conducted by looking at the significant value and the t-value. The significant value
has to be lower than alpha or 0.05 and the t-value has to be greater than the t-table value for a
hypothesis to be accepted. The t-table value in this research is 1.9684. The output from partial
hypothesis is displayed in Table 5.
Table 5: Results of Partial Hypothesis Test
Hypothesis
Sig.
Result
Financial literacy has a positive and significant effect on impulsive
buying behavior using paylater payment method
0.001
Accepted
Digital financial literacy has a positive and significant effect on
impulsive buying behavior using paylater payment method
0.030
Accepted
Income has a positive and significant effect on financial behavior
0.046
Accepted
4.6 Simultaneous Hypothesis Test (F-Test)
The F-test is done by looking at the significant value and the t-value. The significant value has to
be lower than alpha or 0.05 and the F-value has to be greater than the F-table value for a hypothesis
to be accepted. The research's F-table value is 2.6366.
Table 6: F-Test Result
Predictors
Sig.
Result
Financial literacy, digital financial literacy, paylater usage factor
0.000
Accepted
The Sig. value (P-value) in Table 6 is 0.000 which is less than alpha (α=5%). The sig. value
explains that financial literacy, digital financial literacy, and paylater usage factor simultaneously
have a significant effect on financial behavior.
4.7 R-Square Analysis
Table 7: R-Square
Table 7 shows that the R-value, which measures the correlation between independent and
dependent variables, is 0.543 or 54.30%. The R-square value in this model is 0.295 or 29.50%,
which means that the model formed or the existing independent variables can explain 29.50% of
the variation of the dependent variable. The adjusted R-square value is 0.289 or 28.90% which
indicates that financial literacy and demographic variables have an effect of 28.90% on financial
behavior. The remaining 71.10% cannot be explained by the existing independent variables or
explained by other variables outside the model.
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5. Conclusion
This research conducted to identify the effect between the importance of financial literacy, digital
financial literacy, and paylater usage factor toward the impulsive buying behavior of using the buy
now pay later method in youth. Based on the analysis results using Multiple Linear Regression
(MLR) of 385 qualified respondents, the regression formula data obtained Y = 7.7779 + 0.236
(Financial Literacy) + 0.119 (Digital Financial Literacy) + 0.324 (Factors Usage of Paylater). It
can be seen from this formula that conducted by using the f test, the constant value is positive,
which means that it shows the positive influence of the independent variables simultaneously. The
formula also shows the positive coefficient, meaning that there is a positive relationship between
all independent variables and the dependent variable.
From the results of hypothesis testing, not all the proposed hypotheses can be accepted because
the positive coefficient of financial literacy result that was developed is negatively related. Based
on the R adjusted square value is 0.289, meaning that financial literacy, digital financial literacy,
and paylater usage factors contribute together to impulsive buying behavior on paylater payment
method by 28.90%, while the remaining 71.10% is influenced by other factors not examined by
this research.
In accordance with the results of this research which proves that financial literacy, digital financial
literacy, and paylater usage factor have a significant positive effect on impulsive buying behavior,
there are some recommendations for some parties that can be given to anticipate impulsive buying
behavior using paylater payment method. For individuals, to be more pay attention to income and
expenses by recording income and expenses to avoid over budgeting in minimizing impulsive
buying behaviour. For financial technology can provide warnings and also educate users regarding
the use of services that are easy and offered so that consumers can always weigh the behavior that
will be taken in the future. The government can also synergize with financial technology to be able
to provide financial education and train more thorough behavior that can be given to all people
who can come from elementary, middle, high school, college education and also workers. Also,
the government can determine elements of legality that can refer to actions that mislead the public
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THE INFLUENCE OF DESTINATION ATTRIBUTES AND
TOURIST’S LIFESTYLE TOWARDS LOCAL TOURIST
PREFERENCES IN CHOOSING DOMESTIC TOURIST
DESTINATIONS IN INDONESIA
Davelynn Danielle1*
1 School of Business and Management, Bandung Institute of Technology, Bandung, INDONESIA
*Corresponding author: davelynn_danielle@sbm-itb.ac.id
Abstract: Tourism is one of the fastest growing economic industries in the world. In Indonesia,
the tourism industry plays a very large role in economic growth. Realizing the importance of the
tourism industry, the government is aggressively developing the tourism industry. This study
examines the relationship between destination attributes and tourist lifestyles on tourist
preferences in choosing domestic tourist destinations in Indonesia. This study is expected to help
the Ministry of Tourism and Creative Economy in developing the tourism industry, especially in
developing competitiveness among local tourist destinations and can help increase tourist
arrivals. The research objectives of this study are to find out the destination attributes that local
tourists consider when choosing a domestic tourism destination, To find out the local tourist
domestic destination preferences and To find out the relationship between lifestyle and destination
attributes on local tourist preferences in choosing domestic tourist destinations. This study uses a
mixed method. Qualitative approach using netnography and analysed using coding. For the
quantitative approach, questionnaires are distributed online using google form and analysed using
multiple linear regression. The results of this study indicate that there is a significant influence
between lifestyle and destination attributes on tourist preferences. However, not all lifestyles or
destination attributes influence each other, depending on the preferences of tourists who want to
go to which destinations. The “Culture Seeker” lifestyle, “Complete” Destination Attributes and
“Attractions” affect tourist preferences, especially recreational destinations. Furthermore, the
"Wasteful" and "Nature Lover" lifestyles, "Comfort" and "Attractions" Destination Attributes have
an influence on tourist preferences, especially urban destinations. The lifestyle of “Adventurers”,
“Nature Lovers”, “Family”, “Complete” destination attributes affect tourist preferences,
especially natural destinations. In addition, this study also finds out what destination attributes
are often considered by local tourists in choosing tourist destinations and lifestyles owned by local
tourists. The destination attributes found can be used as selling points for marketing strategies.
Keywords: Destination attributes, Tourist Preferences, Tourist Lifestyle.
1. Introduction
Tourism is one of the fastest growing economic industries in the world. According to International
Tourism Highlight (2020) Since 2010 until 2019, the ten year in a row international tourism was
experiencing sustainable growth. International tourism rose faster than the world economy, with
3.6 percent growth in 2018 and 2.8 percent growth in 2019 for global gross domestic product
(GDP) (International Tourism Highlights, 2020 Edition, 2021). In recent years the tourism industry
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has become the main source of foreign exchange income for the economy in Indonesia. Tourism
contributed as much as 5.9 percent to Indonesia's GDP or Rp941,107 billion in 2019 and tourism
provides 13,180.4 million jobs or 10.1 percent of total employment (Travel & Tourism Economic
Impact | World Travel & Tourism Council (WTTC), 2021). According to Pratomo, D (2017) the
growth of tourism in Indonesia is not only due to foreign tourists but local tourists who travel
domestically also play an important role. Domestic travel continues to increase, it can be seen in
the graph from 2002 to 2020. The peak of the increase in the number of domestic trips in 2019 was
722.16 million, from 2018 there were only 303.4 million trips. Although there was a decrease in
2020 to 518.59 million trips.
The complexity of tourism has recently been acknowledged as a result of changing customer tastes
and preferences, making products more competitive within the sector. In terms of keeping tourist
demand, tourism destinations face competition and obstacles (Dieke, 2005). The attractiveness of
a destination as a tourist product is determined by its unique attributes or qualities, which influence
tourist satisfaction and preferences. The tourism literature also stated that tourists' travel decisions
are influenced by their preferred destination. Destination preferences are a crucial key of
destination selection and are developed as a result of the selection process because destination
preference is a passenger's comparative attitude towards a destination. Tourists' preferences have
been examined based on their perceptions, which have been linked to numerous attributes they
take at the destination (Saikia, Buragohain and Choudhury, 2019; Mao, R.Y.; Zhang, H.Q., 2014;
Woodside, A.G.; Lysonski, S.,1989). In addition to destination attributes, tourist lifestyle is also
an important factor that can determine the behavior of domestic tourists (Duman, Erkaya and
Topaloglu, 2020).
2. Literature Review
Tourist’s Lifestyle
Lifestyle is defined as a multidimensional psychological notion that includes aspects such as
activities, interests, and opinions among other factors. Lifestyle characteristics influence people's
everyday purchase, consumption, and disposal patterns (Anderson and Golden,1984). Lifestyle
describes how individuals live and determines how they consume products and services, including
holiday destinations and activities (Füller and Matzler, 2008). Tourists' travel objectives, values,
and inclinations for travel behavior are mirrored in such lifestyle categories (Chen, Huang and
Cheng, 2009; Sirgy et al., 2010). Lifestyle factors affect how they participate in various categories
of tourism experiences (Gonzàles and Bello, 2002; Pizam & Sussman, 1995). According to
Gonzalez and Bello (2002) to identify the three AIOs is very difficult, there will be validity
problems and the survey that is made will also be very long. This will make the respondent feel
overwhelmed. Research from Dann (1981) said that the motivation of tourists on vacation can be
considered as "Interest", tourists will consider their lifestyle on vacation based on their interests
while on vacation. Interest can also predict the activities a person does (Sparks, 2018). This
research focuses on measuring the lifestyle of tourists based on their interests.
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Tourist’s Preference
Customer preferences reveal consumer choices among a large range of current service items
(Kotler, 2000). An affection for something is called preference. Preference may also be described
as a person's decision to favor or detest a product or services. Meanwhile, customer preferences
are defined as personal tastes as assessed by satisfaction from diverse commodities. In brand
choices, preference has been constructed as a measure of loyalty. Tourist preference refers to the
choices made by visitors when it comes to the tourist locations they visit. The standard of visitor
preferences will define the types of commodities people desire in tourist sites. According to Pearce
(1988) motivation is less specific to preferences because preferences can reveal what tourists will
do when they go and where tourists will go. Goodall (1991) says similarly that one's preference is
the best way to eliminate existing choices even though motivation is one that guides a person in
choosing. Tourist preference shows a destination's capacity to attract tourists and capture market
share by efficiently employing tourism resources. Furthermore, visitor choice is an essential aspect
in determining destination competitiveness (Sun, Ma and Chan, 2017).
Destination Attributes
A set of features that characterize a location as a travel destination is known as destination
attributes (Heung and Quf, 2000). Destination attributes are very influential on tourists who are
choosing destinations. Tourists will consider the attributes that exist in one destination with
another (Papatheodorou, 2001). Crouch (2011) defines a destination attribute as a collection of
diverse features of a tourism destination that travelers may use to assess the destination. These
attributes can be used to define a set of destination characteristics that describe a location as a
tourist destination and have an impact on the destination's image (Kim, Ritchie and McCormick,
2010). Destination attributes can influence tourists in choosing tourist destinations (Guzel, 2017;
Waas, & Chandrarathne, 2020). However, not all destination attributes have an impact on the
selection of tourist destinations equally, there are some attributes that are more important than
other attributes (Swarbrooke, 1999). According to Reisinger, Mavondo and Crotts (2009)
destination competitiveness is highly dependent on destination attributes and has an impact on
visitor satisfaction and experience, therefore it is important to identify destination attributes that
provide better offers and services for tourists in order to attract tourists to come.
2.1 Problem Statement
According to "Rencana Strategis 2020 - 2024" published by the Indonesian Ministry of Tourism
and Creative Economy, they stated their goal in 2020-2024 is to increase the contribution of
tourism and the creative economy to national economic resilience. To meet these objectives,
strategic objectives are made. Two of them are to increase the number of tourists and increase
competitiveness between destinations in the national tourism industry. According to Reisinger,
Mavondo and Crotts (2009), the competitiveness of a destination is highly dependent on
destination attributes which will have an impact on visitor satisfaction and experience, therefore it
is important to identify destination attributes that provide better offers and services for tourists in
order to attract tourists to visit. Developing tourist destinations can be through the development of
both public and tourist facilities, accessibility to facilities and infrastructure based on tourist
attractions; these are also known as destination attributes. The Strategic Plan Report lists any
problems that cause tourism development to be less than optimal. Such as the lack of development
of Indonesian tourism destination attributes and marketing strategies. There are still many tourist
destinations that do marketing about the features or attributes of the destination but are not in
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accordance with the original so that many tourists are disappointed. For this reason, it is necessary
to find out what destination attributes have been considered by tourists when choosing a tourist
destination. It is a crucial subject to assess current tourist preferences for various places (Sun, Ma
and Chan, 2017).
In the Strategic Plan Report In the 2020-2024 made by the ministry of tourism and creative
economy, stated that tourism development is still not optimal. and there is still no research in
Indonesia that discusses about the influences of destination attributes, lifestyle towards tourist
preferences in Indonesia. Therefore, this study aims to find out the destination attributes that local
tourists consider when choosing a domestic tourism destination. The second is to find out the local
tourist domestic destination preferences and the last is to find out the relationship between lifestyle
and destination attributes on tourist’s preferences in choosing domestic tourist destination. With
the hope the findings from research can help overcome tourism destination development to help
fulfil the Indonesian government's planned program for tourism in Indonesia and can revive the
tourism industry in Indonesia. This study also has 2 hypotheses:
• H1. Local Tourist’s Lifestyle significantly influences Local Tourist’s Preferences in choosing
Domestic Destination
• H2. Destination attributes significantly influences Tourist’s Preferences in choosing a
domestic destination
3. Method
This study uses a mixed method, namely using a qualitative approach and a quantitative approach.
3.1 Materials
For the qualitative approach, this study used netnography and the data is taken from the
conversations of the Indonesian online traveling group in the Line Open Chat and then the data
will be analysed using coding. For the quantitative approach, the data was taken using a
questionnaire distributed online using Google Forms and the data was analysed using
Confirmatory factor analysis and multiple linear regression.
3.1.1 Samples
The Criteria for Online Group for this conversation is an Active Group that discusses traveling or
tourist destinations in Indonesia, consisting of Indonesian citizens. The reason for choosing this
criterion is because the topic of this research is about tourism in Indonesia. As for the respondents
to the questionnaire, they must be people who have travelled domestically. According to Isaac and
William Burton Michael (1995) with an infinite population (> 1,000,000) and with an error rate of
5% So the researcher aims to get the minimum number of samples assigned for this research to be
349 respondents.
3.1.2 Site
from the netnography results it was found that most of the Group members from the Line Open
Chat were people from the island of Java and the destinations discussed were also tourist
destinations on the island of Java. Therefore, the requirements for respondents from the
questionnaire are tourists who live on the island of Java.
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3.1.3 Procedures
This research is an exploratory research in order to generate hypotheses. This study seeks to find
out whether the local lifestyle of tourists and destination attributes can influence tourist preferences
in choosing tourist destinations. Lifestyle and Destination attributes act as independent variables
and tourist preferences as dependent variables. the three variables will be measured using a 10-
likert scale.
3.2 Data Analysis
For qualitative and quantitative data, the results of the analysis will be displayed using descriptive
analysis in the form of a table
3.3.1 Netnography Results
The researcher downloaded the conversations from the groups above and coded the existing
conversations using Nvivo software. This netnography aims to find out which destination
attributes are the most frequently asked or considered by tourists before choosing a destination and
to find out what domestic tourist destinations local tourists like to visit. Researchers read every
chat that exists and code each keyword according to what is needed and categorize it. The result
of the open coding of the Group Open Chat Line conversation formed 10 codes Group, namely:
Accessibility, Accommodation, activities, attractions, local hospitality, packages, prices, services,
Special Events and Stay Duration.
Table 3: Destination Attributes Analysis from Netnography
Destination Attributes
Frequencies
Percentage
Attractions
650
31.54%
accessibility
335
16.25%
Cost
282
13.68%
Stay duration
189
9.17%
Activities
180
8.73%
Services
159
7.71%
Accommodation
128
6.21%
Tour Package
69
3.35%
Special Event
58
2.81%
local hospitality
11
0.53%
Table 3 shows the result of the first coding process which is destination attributes considered by
domestic tourists in choosing tourist destinations. The table shows which destination attributes are
most frequently discussed and those that are rarely discussed in the chat by tourists. As can be
seen, Attractions are the most talked about destination attributes. It can be seen in the table 4 from
the total destination attribute found, 31.54% contains attractions. Meanwhile, local hospitality is
in the lowest position because only about 0.53% of the total destination attributes found talk about
local hospitality. The results from this netnography will then be used for a quantitative approach,
namely questionnaires.
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3.3.1 Validity and Reliability
For the validity and reliability test, this study uses Confirmatory factor analysis. For lifestyle
variables, researchers have divided them into 7 sub variables, while for destination attributes
there are 13 indicators and tourist preferences consist of 12 indicators.
Table 4: Lifestyle CFA Validity and Reliability Results
Indicator
KMO
Extracted
Variances
Factor Loading
Cronbach
Alpha
Adventurous
0.792
51.960%
0.792
L_Adv1
0.670
L_Adv2
0.722
L_Adv3
0.758
L_Adv4
0.537
L_Adv5
0.822
L_Adv6
0.781
Extravagant
0.839
63.778%
0.886
L_Ext1
0.763
L_Ext2
0.809
L_Ext3
0.841
L_Ext4
0.805
L_Ext5
0.744
L_Ext6
0.825
Relaxation
0.645
47.459%
0.505
L_Rlx1
0.651
L_Rlx2
0.360
L_Rlx3
0.815
L_Rlx4
0.826
Nature Lovers
0.500
76.569%
0.671
L_Nat1
0.875
L_Nat2
0.875
MODEST
0.538
44.372%
0.359
L_Mod1
0.505
L_Mod2
0.706
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L_Mod3
0.760
Family Concern
0.500
71.293%
0.597
L_Fam1
0.844
L_Fam2
0.844
Culture Seekers
0.808
55.38%
0.789
L_CS1
0.731
L_CS2
0.735
L_CS3
0.838
L_CS4
0.805
L_CS5
0.586
Table 4 shows the CFA for lifestyle variables. Researchers have divided lifestyle into 7
dimensions, namely Adventurous, Extravagant, Relaxation, Nature Lovers, Modest, Family
Concern, and Culture Seekers. However, As shown on table 2 Relaxation and Modest did not pass
the CFA validity and reliability test, therefore these two lifestyle dimensions will not be used
further.
Table 5: Destination Attributes CFA Validity and Reliability Results
Destination Attributes
KMO
Extracted Variances
Factor Loading
Cronbach
Alpha
Factor 1 (All In)
0.881
22.96%
0.863
DA_NatureAttraction
0.624
DA_Cost
0.547
DA_Activity
0.500
DA_StayDuration
0.735
DA_TourPackage
0.600
DA_hospitality
0.666
Factor 2 (Convenience)
21.95%
DA_Accesible
0.514
DA_ServicesFacility
0.854
DA_ServiceQuality
0.847
DA_accomodation
0.603
Factor 3 (Attractions)
15.87%
DA_CultureAttraction
0.702
DA_ShoppingPlace
0.654
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DA_SpecialEvent
0.850
Total Variance Explained
60.78%
Table 5 shows the result from the CFA destination attribute. Of the 13 destination attribute
indicators after going through the CFA process, they are divided into 3 factors. Namely All in,
Convenience and attractions. All of these 3 factors have passed the validity and reliability test, so
there was no indicator has been eliminated.
Table 6: Destination Attributes CFA Validity and Reliability Results
Tourist Preferences
KMO
Extracted
Variances
Factor Loading
Cronbach Alpha
Factor 1 (Recreational
Destination)
0.848
23.69%
0.838
TP_Marine
0.860
TP_CulturalPlace
0.780
TP_ReligiousPlace
0.637
TP_RuralDestination
0.542
TP_HistoricalPlace
0.755
Factor2 (Urban
Destination)
TP_AmusementParks
23.38%
0.685
TP_CulinaryPlace
0.711
TP_EntertainmentArea
0.789
TP_TouristCity
0.686
TP_ShoppingCenter
0.739
Factor 3 (Nature
Destination)
14.31%
TP_Mount
0.818
TP_NaturePreserve
0.791
Total Variance Explained
61.37%
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Table 6 shows the result from the CFA of Tourist preferences. Of the 13 destination attribute
indicators after going through the CFA process, they are divided into 3 factors. Namely
Recreational Destination, Urban Destination and Nature Destination. All of these 3 factors have
passed the validity and reliability test, so there was no indicator has been eliminated. All variables
that have passed the validity and reliability tests will proceed to the next analysis process, namely
multiple linear regression
4. Results and Discussion
Table 7: Classical Assumption Test Results
Independent
Variables
Dependent
Variables
Kolmogorov
-Smirnov
(Normality
Test)
Multicollinearity
Test
Sig. Spearman
rho
(heteroscedastic
ity test)
Durbin-
Watson
(Autocorrelati
on test)
Collinearity
tolerances
VIF
Lifestyle_Adventuro
us
Tourist
Preferences
(Recreational
Destination)
0.9
0.433
2.308
0.283
1.822
Lifestyle_Extravagan
t
0.651
1.536
0.962
Lifestyle_Nature
Lovers
0.640
1.562
0.992
Lifestyle_Family
Concern
0.674
1.484
0.878
Lifestyle_Culture
Seekers
0.564
1.774
0.941
DA_AllIn
0.370
2.701
0.928
DA_Convenience
0.459
2.177
0.976
DA_Attraction
0.509
1.965
0.729
Lifestyle_Adventuro
us
Tourist
Preferences
(Urban
Destination)
<0.001
0.433
2.308
0.486
2.028
Lifestyle_Extravagan
t
0.651
1.536
0.758
Lifestyle_Nature
Lovers
0.640
1.562
0.802
Lifestyle_Family
Concern
0.674
1.484
0.499
Lifestyle_Culture
Seekers
0.564
1.774
0.752
DA_AllIn
0.370
2.701
0.793
DA_Convenience
0.459
2.177
0.855
DA_Attraction
0.509
1.965
0.435
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Lifestyle_Adventuro
us
Tourist
Preferences
(Nature
Destination)
<0.001
0.433
2.308
0.968
2.049
Lifestyle_Extravagan
t
0.651
1.536
0.955
Lifestyle_Nature
Lovers
0.640
1.562
0.632
Lifestyle_Family
Concern
0.674
1.484
0.667
Lifestyle_Culture
Seekers
0.564
1.774
0.472
DA_AllIn
0.370
2.701
0.219
DA_Convenience
0.459
2.177
0.283
DA_Attraction
0.509
1.965
0.265
Table 4.25 shows the results of the classical assumption test. For testing of tourist's preferences 2
and 3 For normality test results from Kolmogorov-Smirnov are <0.001 which is below Sig. 0.05
which means the data is not normally distributed. However, normality tests are generally carried
out for small samples, if the amount of data is more than 100 then normality is not a major concern
(Altman and Bland, 1995; Spss-tutorials.com, 2019). This study has 400 where > 100, then this
data is considered normally distributed. Multicollinearity test is used to determine whether there
is an exact linear relationship between variables. The test can be seen through the value of Variance
Inflation Factor (VIF) and collinearity tolerance. If the VIF value is > 1.00 and the collinearity
tolerance is > 0.10, then there is no multicollinearity (Gujarati, 2010). If seen in the table 4.25 the
VIF value of each variable is greater than 1.00 and the collinearity tolerance value is > 0.10 then
this research is free from multicollinearity problems.
According to Gujarat (2012), if the value of sig. >0.05, it can be said that there is no
heteroscedasticity problem. It can be seen in the table that each sub variable has a sig value > 0.05,
so it can be said that this data is free from heteroscedasticity. Finally, there is the autocorrelation
test, this test is used to determine the correlation between the observed subjects which are governed
by space and time. This study uses the Durbin-Watson method. According to Ghozali (2011) if the
value of Durbin Watson lies between the value of du and (4-Du) then there is no symptom of
autocorrelation. If seen in the table, the value of Du which is in accordance with this study is
1.87158 and the value of 4-Du is 2.12842. The results of the D-W for the first, second and third
tests are 1,822, 2,028, 2,049. The results of the three D-Ws are located between the two, so it can
be said that this study passed the autocorrelation test. It can be concluded that this research model
passed the classical assumption test
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Table 8: Multiple Linear Regression Results
Independent Variables
Dependent
Variables
β
t-score
P-Value
Sig. F
R-square
Lifestyle_Adventurous
Tourist
Preferences
(Recreational)
0.990
1.925
0.055
<0.001
0.552
Lifestyle_Extravagant
-0.003
-0.074
0.941
Lifestyle_Nature Lovers
0.830
1.967
0.500
Lifestyle_Family Concern
-0.042
-1.029
0.304
Lifestyle_Culture Seekers
0.346
7.675
<0.001
DA_AllIn
0.218
3.925
<0.001
DA_Convenience
-0.093
-1.857
0.064
DA_Attraction
0.310
6.531
<0.001
Lifestyle_Adventurous
Tourist
Preferences
(Urban)
0.460
0.767
0.444
<0.001
0.401
Lifestyle_Extravagant
0.232
4.777
<0.001
Lifestyle_Nature Lovers
-0.144
-2.939
0.003
Lifestyle_Family Concern
0.039
0.815
0.416
Lifestyle_Culture Seekers
0.006
0.108
0.914
DA_AllIn
0.112
1.738
0.083
DA_Convenience
0.184
3.188
0.002
DA_Attraction
0.286
5.218
<0.001
Lifestyle_Adventurous
Tourist
Preferences
(Nature)
0.260
3.769
<0.001
<0.001
0.193
Lifestyle_Extravagant
0.001
0.016
0.987
Lifestyle_Nature Lovers
0.218
3.837
<0.001
Lifestyle_Family Concern
-0.120
-2.166
0.031
Lifestyle_Culture Seekers
-0.011
-0.185
0.854
DA_AllIn
0.177
2.376
0.018
DA_Convenience
-0.123
-1.834
0.067
DA_Attraction
0.007
0.105
0.917
Table 8 shows the results of the multiple linear regression test. To test whether the independent
variable (X) has an effect on the dependent variable (Y), this research partially uses p-value and t-
score.
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According to Ghozali (2011) the value of Sig. <0.05 and according to Sujawerni (2014), if the
value of the t-score > T table means that the independent variable (X) has an effect on the
dependent variable (Y) partially. The t table value for this research is 1.9666.
To test the first dependent variable, namely "Recreational" Tourist preferences, only lifestyle
culture seekers (t-score = 7,675, p = <0.001) and for the Destination attributes variable All in (t-
score = 3.925, p = <0.001) and Attractions (t-score = 6.531, p = <0.001) which has a p-value of
less than 0.05 and a t-score that is greater than the t table. So, Culture seekers, all in and attractions
Significantly influence tourist's preferences in choosing a destination, especially in the
"Recreational" destination.
For the second test to the dependent variable "Urban Destination", for the lifestyle variable only
Extravagant (t-score = 4.777, p = <0.001), Nature lovers (t-score = -2.939, p = <0.001) which has
a p-value and the value of t according to the criteria. As for the destination attribute variable which
has a p-value and a t-value according to the criteria, namely convenience (t-score = 3.188, p =
0.002) and attraction (t-score = 5.218, p = <0.001). So, it can be concluded that these two tests
were Extravagant lifestyle, Nature lovers lifestyle, convenience and attraction. Significantly
influences tourist's preferences in choosing a destination, especially in "Urban" destinations.
Nature Lovers lifestyle has a minus value in its beta coefficient, so the value of nature lovers has
a negative influence on the tourist preferences of "Nature Lovers". In contrast to the Extravagant
lifestyle, convenience Destination attributes and Attraction destination attributes which have a
positive beta coefficient value which has a positive effect on the tourist preferences of "Nature
Lovers".
For the third test to the dependent variable Tourist preferences "Nature", for the lifestyle variable
only Adventurous (t-score = 3.769, p = <0.001), Nature lovers (t-score = 3.837, p = <0.001),
Family Concern (t- score = -2.166, p = 0.031) which has a p-value and a t-value according to the
criteria. Meanwhile, for the destination attribute variable that has a p-value and a t-value according
to the criteria, namely only All in (t-score = 2.376, p = 0.018). So, it can be concluded that these
three tests are Adventurous lifestyle, Nature lovers lifestyle, Family Concern lifestyles, All In
Destination attributes Significantly influences tourist's preferences in choosing a destination,
especially in "Nature" destinations. Family concern lifestyle has a minus coefficient value, so this
variable has a negative effect on "Nature" tourist's preferences. While the Adventurous lifestyle,
Nature lovers lifestyle, All In Destination attributes have a positive coefficient value, which means
that these three variables have a positive effect on the "Nature" tourist's preferences.
Overall, the lifestyle variable itself significantly influences tourist's preferences, although there are
two lifestyle dimensions that are not like family concern lifestyle and nature lovers. This study
supports the study of Duman, Erkaya and Topaloglu (2020) where lifestyle significantly influences
tourist's preferences in choosing a destination. Then H1 is supported. It is the same with lifestyle,
although there are several destination attributes that have no significant influence on Tourist
preferences, it can be concluded that the Destination attributes variable has an influence on the
tourist's preferences variable. This study supports studies from Saikia, Buragohain and Choudhury
(2019) and (Camacho-Murillo, Gounder and Richardson (2021) that destination attributes
significantly influence tourist's preferences in choosing a destination. Then H2 is supported
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Next, we look at the value of the F-score. According to Ghozali (2011) the value of Sig. <0.05, it
means that all independent variables (X) have an effect on the dependent variable (Y)
simultaneously. Can be seen in table 4.26 the results of Sig. F in the three tests has a value of
<0.001 so it can be said that all independent variables have an influence on the dependent variable,
namely tourist's preferences simultaneously.
According to Gujarati and Porter (2017) to see how the influence of the independent variable on
the dependent variable can be seen through the value of R square. If seen in the table 4.26 the value
of R square for the first test is 0.552. This means that the dependent variable, namely Tourist
preferences (Recreational Destination) can be explained by the independent variable by 55.2% and
the remaining 44.8% is explained by other variables not discussed in this study. The second test
has an r square value of 0.401. This means that 40.1% of the tourist preferences (Urban
Destination) variables can be explained by the independent variables studied, while the remaining
60.9% are explained by other variables. The third test has an R-square value of 0.193, so the
independent variable can only explain 19.3% of the tourist preferences variable "Nature". The
remaining 81.7% is explained by variables outside this study.
5. Conclusion
The conclusion for this research is the first is destination attributes that Local tourists consider
when choosing a domestic tourist destination are Attractions, accessibility, Price, Stay duration,
Activities, Services, Accommodation, Tour Packages, Special Events, local hospitality. Second,
Local tourist's domestic destination preferences are mountain destinations, marine tourism
destinations, nature reserves destinations, cultural destinations, religious destinations, Amusement
Parks, culinary places, villages, Entertainment Areas, tourist cities, historical places, and shopping
places. The last is There is a relationship between lifestyle, destination attributes and tourist
preferences, namely tourist lifestyle and destination attributes can significantly influence tourist
preferences in choosing tourist destinations.
For recommendation The attribute destinations found in this study can be used by destination
developers to improve attribute destinations for the better in order to invite more tourists to visit.
The attribute destinations found can also be used as selling points for marketing when doing
promotions. These attribute destinations can also be used as to increase competitiveness by
managers or other people in developing tourist destinations. From this research, it can also be seen
some of their lifestyle and destination preferences. In the future, psychographic segmentation and
destination preferences may be possible to determine the market according to the destination.
This research is still very limited, the respondents only come from the island of Java and the
lifestyle categories used are still few. There may be respondents who feel they are not suitable to
enter the existing lifestyle category. For future research, the researcher hopes to get respondents
from other islands. In addition, it may be possible to add other new lifestyle groups. Future
researchers can also conduct further research on attribute destinations because in Indonesia alone,
journals that discuss attribute destinations are still limited.
6. Acknowledgement
Thanks to my supervisor Dr. Ir. Mustika Sufiati Purwanegara, M. Sc who has taught and guided
me patiently so that I can complete this study.
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THE INFLUENCE OF FINANCIAL LITERACY TOWARDS
INVESTMENT STRATEGIES AND INTEREST OF YOUNG
INVESTORS IN INDONESIA
Muhamad Aufa Radyardhika1*
1 School of Business and Management, Bandung Institute of Technology, Bandung, INDONESIA
*Corresponding author: muhamad_aufa@sbm-itb.ac.id
Abstract: The purpose of this paper is to examine and analyse the influence of financial literacy
towards investment strategies among young investors. Comparing the differences in investment
strategies between investors with different financial understandings is also the goal of this
research. The data in this study were based on secondary data which are journals, articles, and
research related to this topic, namely about financial literacy and financial investment. Data were
analysed using a qualitative research approach. The results of this study are that financial literacy
has a strong influence on investment strategies, it can affect the mentality of an investor in carrying
out investment activities and there are other aspects that work in tandem with financial literacy to
motivate and inspire young investors to raise their investment interest. The implication of this
research is meant for the young investors who have just started investing less than 1 year and have
never done any basic learning before to better understand the importance of financial literacy in
investing activities.
Keywords: Business, Education, Financial Literacy, and Investment.
1. Introduction
Financial literacy refers to the public's financial knowledge and abilities, which enable them to
manage and maximize their financial resources. It is now widely regarded as a necessary life skill,
since young investors have become increasingly exposed to more sophisticated financial markets,
it is recognized as being of major relevance to consumer welfare, young investors must be able to
distinguish between a diverse variety of financial products, services, and providers in order to
successfully manage their finances. Furthermore, consumers must make every day financial
decisions regarding spending and saving. Understanding how to manage their own money
effectively is a necessary life skill in all phases of life. It's becoming clear that life preparation
entails more than learning to read and write and becoming successful. However, boosting financial
literacy among young people necessitates first identifying the factors that influence the financial
knowledge learning process and formulating effective interventions by those in charge of the
educational process.
Early 20s can be an exciting period of life for self-discovery and advancement, but it can also be
a time when some people develop bad financial habits. There are many challenges that will be
faced, including separating between what we want and what we need. When it comes to the
demands of the younger generation in their 20s, it must be extremely tough to resist several
temptations especially when they feel happy getting a salary for the first time. They usually tend
to use the money to buy what they want, treat friends or family, hang out, travel, and many more
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without thinking about other needs especially if their parents are still working at that time. These
unhealthy habits may influence their financial management decisions. People who have a good
level of financial literacy will be able to identify various financial products and their uses. The
implication is that they can get various benefits offered based on the level of risk they can bear
and it can reduce their risk of various kinds of fraud in financial investments.
The number of investors in the capital market is growing, although it is still insignificant in
comparison to the Indonesian population. Efforts to increase the number of investors in Indonesia
frequently enlist the help of a variety of groups, including sharia investment galleries. It wants to
recruit investors from all throughout Indonesia, particularly from campus circles. One of the roles
of investors is to help Indonesia expand its economy. The practice of investing a number of funds
to be developed over a certain period of time in the future in order to gain a profit or profit is
known as investment. One method of combating inflation is to invest. One of the criteria for the
country's economy to improve is investment. The greater the number of investors in a country, the
safer and more stable the country is to invest in. Because of the numerous resources accessible in
Indonesia, it is still regarded as a promising investment location. Some overseas investors are not
hesitant to invest in Indonesia, resulting in a favorable, albeit modest, increase in investor and local
investment. Starting an investment cannot be haphazard; it requires serious thought, especially for
novices. Investment objectives, investment period, risk, inflation, finances, vehicles, liquidation,
and earnings are all factors to consider. These factors must be taken into account appropriately in
order for the investment to yield the desired results, namely a profit.
Every year, millions of people become victims of investment fraud, with many of them being from
the younger generation. There is a scarcity of information about the knowledge that contributes to
financial problems. Many people struggle to comprehend their financial matters, such as taxes,
bank interest, loans, and some various financial instruments. There are so many events that can
disrupt a country’s economic stability that led to many unexpected things that can happen to the
citizens of that country. For example, during the recent pandemic, many new investors were born
due to the decline in many people's financial conditions because of the termination of most of the
employment contracts. Many of them end up investing because they are forced by circumstances
without doing basic learning about the stock market itself. They only follow advice and also an
invitation from someone they think is more knowledgeable in this field with the lure that they will
get huge profits. In the end they invested all the assets they had without doing research on what
product they would buy and suffered a very significant loss. This can happen because of the lack
of equitable learning about how important financial literacy is in our youth.
Research Objective
- To determine whether achieving financial literacy will have an influence on investment
strategy and investment interest
- To determine the influence of financial literacy towards investment strategies and interest
- To compare the difference of investment strategies between investors with different financial
understanding
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Research Question
- What are the challenges in achieving financial literacy?
- When is the best time to start learning to achieve financial literacy?
- How can financial literacy influence people’s investment strategies?
2. Literature Review
One of the most important parts of any research is the literature review. It reveals all important
theories, underpinnings, and conceptual framework from past study that are required to do
research. A literature review must be comprehensive enough to create and refine study ideas. This
literature review will be divided into four different topics: What is Financial Literacy, Attitude
towards Financial Education, Financial Investment Knowledge, Investment during the Covid-19
Pandemic, and Review of Previous Research Results.
2.1 What is Financial Literacy
Financial literacy refers to the capacity to comprehend and use a variety of financial concepts and
abilities, such as personal financial management, budgeting, and investing. Financial literacy is
the foundation of your financial relationship, and it is a lifelong process of learning. Understanding
how people may effectively handle their money is an important life skill that is required in all
facets of adult life. It's becoming clear that life preparation entails more than learning to read and
write and becoming tech-minded (Moreno-Herrero, Salas-Velasco, and Sánchez-Campillo, 2018).
Financial products and services have been more widely available in society in recent decades.
Unlike previous generations, who may have purchased items primarily with cash, today's
consumers prefer to use credit products such as credit and debit cards, as well as electronic
transfers. Mortgages, student loans, health insurance, and self-directed investment accounts have
all become increasingly important. As a result, it is even more important for people to understand
how to use them safely.
Financial literacy, according to the Otoritas Jasa Keuangan Republik Indonesia (OJK), is a set of
processes or activities aimed at improving the knowledge, skills, and confidence of consumers and
the general public so that they can better manage their personal finances. According to OJK, the
goal of financial literacy is to develop a high level of financial literacy among Indonesians so that
they can pick and use financial products and services to promote their well-being. Financial
literacy's aim is to give financial literacy instruction to Indonesians so that they can manage their
finances wisely, as well as to increase access to information and the usage of financial products
and services through the construction of infrastructure to support financial literacy. The level of
understanding of Indonesian people's finances is divided into four parts by OJK: Well-literate
means knowing and trusting financial service institutions and financial service products, including
features, benefits, risks, rights, and responsibilities associated with financial products and services,
as well as knowing how to use them. Sufficiently literate, with knowledge and beliefs about
financial service institutions and financial products and services, including their characteristics,
benefits, and hazards, as well as their rights and obligations. Less literate, with only a basic
understanding of financial organizations, products, and services. Not literate, lack understanding
and trust in financial service institutions and financial products and services, and lack skills in
using these products and services. (OJK, 2017)
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As we know, assessing people's financial literacy is very important. However, determining how
they perceive economic facts and make smart financial decisions in practice is difficult. There is a
lot of data to collect from everyone, and it is a difficult task because some people believe that
discussing money is taboo. Therefore, Lusardi and Mitchell (2011) in their research use four basic
principles in collecting data and measuring financial literacy, which are:
1. Simplicity. We wanted to assess fundamental financial ideas, similar to the simple ABCs of
reading comprehension.
2. Relevance. Questions required to connect to concepts important to people's day-to-day financial
decisions throughout their lives, and they had to capture broad rather than detailed ideas.1
3. Brevity. Because few representative surveys have the time to devote to financial literacy
subjects, the number of questions had to be restricted to a bare minimum to ensure universal
adoption.
4. Differentiation ability. We required questions that could distinguish between different degrees
of financial expertise so that we could compare people based on their responses to a common
set of questions.
Financial literacy requires an understanding of the financial knowledge on making decisions.
Information-based decisions are seen as tools for reaching the desired results. It's worth noting that
financial literacy only allows a person to make informed judgments. Financial literacy does not
ensure that the best choices are made. Financial literacy can only assist a person in mitigating the
possibility of making mistakes. Interpreting fundamentals of financial concepts allows people to
learn on how to navigate decisions in the financial industry. People with proper financial education
and skill can make better decisions and manage money better than those without any preparations.
Bhushan and Medury (2013) stated that for various reasons, financial literacy is critical.
Consumers that are financially knowledgeable may be able to weather harsh economic times
because they have saved, purchased insurance, and diversified their investments. Financial literacy
is also linked to good financial habits including paying bills on time, making loan payments on
time, saving before they run out, and responsibly managing credit cards.
When borrowing or investing money, everyone should be aware of the risks involved. Individuals
with financial literacy can better prepare for the future, make better financial decisions, and invest
in capital markets in a way that matches their needs. As the economy recovers from the COVID
crisis, this will become even more vital for individuals and businesses. Individuals who are
financially literate are also protected from over-indebtedness, excessive risk-taking, fraud, and
cyber-risks. Financial illiteracy can lead to a variety of hazards, including the accumulation of
unsustainable debt burdens as a result of bad spending decisions or a lack of long-term planning.
As a result, you may have poor credit score, bankruptcy, foreclosure, or other undesirable effects.
Given all of this, financial literacy is critical for the entire population, which is increasingly living
in a complicated and volatile economic environment. Many countries have recently taken major
steps to assess their citizens' current financial literacy and develop national financial literacy
programs. A lack of financial literacy can have major effects not only for people and their quality
of life, but also for the entire society's economic stability.
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2.2 Attitude and Factors towards Financial Education
There are many factors that can affect a person's level of financial understanding. Financial
decision-making is likely to become more difficult for consumers, compounding the challenges
associated with financial illiteracy. The patterns are convergent, demonstrating the necessity of
making well-informed financial decisions.
Based on research done by Moreno-Herrero, Salas-Velasco, and Sánchez-Campillo (2018), math
and reading can be used to assess overall cognitive aptitude. People must be able to read and
comprehend fundamental financial paperwork in order to be financially literate. People must also
have a basic understanding of math to be financially literate. However, having basic knowledge in
finance alone is not enough, there are also other factors that can affect a person's level of financial
understanding. In this regard, Marheni (2020) found that financial education, financial behavior,
and financial experience of parents all have a favorable impact on young individuals' financial
awareness, and those determinants interact. Lusardi et al. (2010) found that, while the parent's
educational status (college graduate or not) has a considerable impact on their child's financial
literacy, this relationship is not significant when the child's cognitive ability is taken into account.
It was also discovered that the habits considerably increase their child's risk diversification
awareness. Barberis and Thaler (2002) described that behavioral finance is a financial market
model that stresses the potential consequences of psychological aspects that influence investor
behavior. The basic idea is that behavioral finance theory ignores how individuals make decisions
in real life and that people matter. Market abnormalities, according to a rising number of
economists, are consistent with irrationality, which appears to define people who make difficult
decisions.
Financial decisions made by a person, according to Widayati (2012), include how much money
should be consumed each period, whether there is a surplus and how the excess is invested, and
how to support investment and consumption. According to Chinen and Endo (2012), someone who
can make the proper financial decisions will not have financial problems in the future, exhibits
healthy financial conduct, and can prioritize necessities above wants. Good financial planning,
management, and control activities reflect healthy financial behavior. The way a person controls
money input and exit, credit management, savings and investment are all indicators of excellent
financial conduct. Based on the analysis conducted by Hamdani (2018), the level of financial
literacy for young people or young people is still very small even though they are students in study
programs that are closely related to financial literacy. Many students are still too concerned with
their financial future because they think that they still have parents who can help them so that they
develop the learning about finance they want and don't implement it in their lives. This also proves
that the government's lack of supervision and concern for understanding literacy for young people
is still lacking.
Regardless of the amount of financial market development or the type of financial workshop
offered, financial literacy is extremely poor around the world. As a result, market changes appear
to have had little impact on financial knowledge, implying that there may be a limit to what people
can learn from their own financial experiences. There are also significant sex and age disparities
in financial knowledge among countries. In terms of financial expertise, women consistently know
less than males, and they are aware of this. The fact that the younger generation have less financial
understanding suggests that they are more vulnerable to errors and fraud in their financial activity
if not given proper lessons and guidance. (Lusardi and Mitchell, 2011)
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Educational institutions such as universities and institutes should play a vital role in teaching their
graduates how to make safe financial decisions and avoid risky financial activities as educational
and training institutions. Chinen and Endo (2012) says that the current financial crisis was sparked
by subprime mortgages, which were predominantly marketed to those with less education and,
presumably, less financial acumen than those who qualified for prime mortgages. As a result,
universities must create more innovative and effective ways to reach out to students. A well-taught
course can improve financial literacy and give evidence in support of proposed policies that
promote financial education in schools. Furthermore, it demonstrates that such courses would be
especially beneficial for people with educational backgrounds that have a lower financial literacy.
Given the importance of financial knowledge in maintaining economic well-being, such measures
may be promoted for redistributive and equalitarian grounds. (Corsini and Giannelli, 2021)
2.3 Financial Investment Knowledge
2.3.1 Investment
An investment is an asset or item purchased with the intention of earning money, gaining a number
of future advantages or increasing in value. The phrase investment can refer to a variety of things.
Investing money in both real estate (land, gold, machinery, and buildings) and financial assets
(deposits, stocks, and bonds) is a widespread practice. The term "appreciation" refers to an asset's
value increasing over time. When a person buys something as an investment, the goal is not to
consume it, but to use it to build wealth in the future. An investment always entails the expenditure
of some capital today, such as time, effort, money, or an asset, with the expectation of a higher
return in the future than what was first invested. Hayes (2021) says that the purpose of investing
is to generate income and increase the value of an asset over time. Any mechanism for creating
future income can be considered an investment. This includes, for example, the acquisition of
bonds, equities, or real estate property. Buying a property that can be used to manufacture things
can also be considered an investment.
According to Hartono (2017), investment is defined as deferring present consumption for a period
of time so that it can be utilized in effective production. The community's investment efforts will
continue to boost economic activity and employment possibilities, as well as raise national wealth
and prosperity. Delaying present consumption to invest in productive assets will raise overall
utility if productive assets exist. This role is derived from three key characteristics of investment
activities: (1) investment is a component of aggregate expenditure, so an increase in investment
will increase aggregate demand, national income, and employment opportunities; (2) an increase
in capital goods as a result of investment will increase production capacity; and (3) investment is
always followed by development technology.
The investor's investment selections are heavily influenced by its abilities. Financial limitations
will influence investment decisions, sometimes negatively. Own capital or debt might be used to
fund investments. When it comes to debt, it is intended that loan contracts would be enforced,
reducing conflicts between shareholders and debt holders when the company is in financial
difficulties. The prospects of companies that perform well are projected to improve as a result of
investment decisions. The prior company's financial performance, which included market to book
value and return on investment, did not have a beneficial impact on investment selections (Favara
et al., 2017). Investment education, particularly in the capital market, is intended to increase
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enthusiasm in investing in each participant's shares. A person's trust in stock investment grows as
his expertise in a field grows. (Tandio and Widanaputra, 2016)
There are many opinions about investing activities, there are some people who think that investing
is prohibited, many thinks that investing is similar to gambling activities because many people
invest by using speculation instead of studying the fundamentals of the product. Investing is not
the same as speculating. Investing is the purchase of an asset with the intention of holding it for
the long term, whereas speculation is the short-term benefitting from market inefficiencies without
studying the market and its products in depth. Investors often strive to expand the amount of assets
in their portfolio over time, but speculators rarely seek ownership. Speculation is rarely classified
as a typical investment, despite the fact that speculators frequently make well-informed selections.
Speculation is frequently perceived as a riskier venture than traditional investing (although this
can vary depending on the type of investment involved). Some experts compare speculation to
gambling, however the comparison's validity may be subjective. (Hayes, 2021)
However, not all short-term activity is speculative. Short term investment is also another sort of
investment. Short-term and long-term investments are the two types of investment period that are
commonly used. Short-term investments are those made over a relatively short period of time,
usually investors who use this system by investing for less than one year. On the other hand, a
long-term investment is focused on the future rather than the current term, investors must wait a
long period to receive the benefits from a long term investment. This investment period is usually
more than 1 year, between 3 years, 5 years, or even more than 5 years if the investor is confident
in the performance of the company or investment product that they bought.
As a result, investment is an effort made by sacrificing a number of funds utilized for long-term
investment in an asset with a specific aim in mind, namely to gain a profit from the current
sacrifices.
2.3.2 Investment Product
Investing in a variety of instruments is one of the wise decisions that we should make. We should
not spend all of our assets on a single investment product since it carries a high risk of loss. Instead,
we should diversify our investment strategy by distributing the funds we intend to invest among
multiple products to lower the chance of loss. This is something that deserves your attention.
Because the better and more capable you are at managing these investing funds, the more you
comprehend the numerous investment vehicles available. (Halim, 2005)
The following are some examples of financial instruments that can be used as an investment:
1. Deposit
This is a type of savings that is restricted to a specific period of time in accordance with the owner's
choices.
This type investment has the following benefits: Deposits carry a very low level of risk. The bank's
interest rate will also be higher than that of traditional savings accounts. Meanwhile, there is a
disadvantage: deposit money disbursed before the due date will be subject to a significant penalty
cost.
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2. Stock
Shares are evidence of your ownership in a business. Wherever you participate, put some money
into it. You will get a certain amount of profit sharing (dividends) on a regular basis as a result of
this investment. A fee will be levied if you acquire or sell shares in a securities company.
This type investment has the following benefits: Stock ownership can provide enormous rewards,
particularly if the stock price of the company you hold rises significantly. This profit could be
many times the cost of the shares you issued to obtain them previously. Meanwhile, there is a
disadvantage: Stocks also come with a significant amount of risk. If the stock price drops in the
market at any point, you could lose a lot of money.
3. Mutual Funds
One of the methods for collecting a large sum of money. An Investment Manager or an Investment
Company will manage the funds. Mutual funds will distribute risks and returns to their investors
evenly. The amount of profit you make will be determined by the mutual fund you choose when
investing.
This type investment has the following benefits: we don't have to worry about keeping track of our
investing funds. Because a skilled Investment Manager will handle it. Our investment funds will
be dispersed over several companies at the same time, allowing us to spread our risks and earnings
across multiple companies. Meanwhile, there is a disadvantage: This investment may leave us
feeling a little less content and maximized. Because our Investment Manager is in charge of
everything. When compared to the gains from investing in stocks, the profits are smaller. The
Company/Investment Manager that we use will also charge us a lot of management fees.
4. Gold
Facilities for public investment that are widely used. Indeed, gold has been utilized as a low-risk,
inflation-resistant investment since ancient times. Gold is available in the forms of bars, coins, and
jewelry. Obtaining it is likewise a simple procedure. That is why gold is so popular as a kind of
investment.
This type investment has the following benefits: Gold is a liquid asset that can be sold quickly if
we need money in an emergency. While gold is a valuable investment, it may also be worn as
jewelry. Meanwhile, there is a disadvantage: Gold is extremely vulnerable to being lost or stolen
by others. Because storing it at home is also quite risky, we may suffer a number of losses if it is
stolen at any point. When we wear gold jewelry, it may be stolen.
5. Bond
Is a debt document that will be received as proof of granting a given quantity of funds to a private
or public company that demands a specific amount of money. As a result, bonds are issued as proof
of borrowing these cash from the general public. In this situation, the bond issuer will pay the
investors a set amount of interest. Bonds will be issued with a minimum loan length of 5 years in
general.
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This type investment has the following benefits: Bonds pay a greater interest rate than bank
deposits. Monthly coupons are also provided by bonds. Meanwhile, there is a disadvantage:
Because the investment duration is so extensive, usually between 2 and 5 years, it will be difficult
to withdraw cash before the agreed-upon time frame. Bonds are likewise a high-risk investment.
The monies you deposited may not be refunded if the bond issuing business goes bankrupt or
liquidates.
6. Property
Another type of investment that is thought to provide constant price increases and long-term
stability. House prices always rise and, on rare occasions, fall. One of the reasons why many
individuals invest in real estate is because of this.
This type investment has the following benefits: The risk of falling prices is very low, even very
rare. The house has a promising risk to be used as an investment. In fact, this investment guarantees
a stable price increase every year so that it is quite resistant to inflation. Meanwhile, there is a
disadvantage: The property investment you have will require a number of upkeep charges. It might
be difficult to sell it. Especially if you require finances in a hurry or in an emergency.
2.3.3 Investment Interest
Interest in investing in stocks, of course, must be separated from the knowledge and education
received in order to create a perspective, because investing in the stock market entails risk in
addition to a return compared to other financial products. According to studies (Tandio &
Widanaputra, 2016), student interest in investing is influenced by their perception of return. Return
expectations have a favorable and considerable impact on stock investment interest, according to
the findings. Someone who is interested in investing can be identified by how hard they strive to
learn about a sort of investment, understand it, and then put it into practice. This is in accordance
with Kusmawati (2011), who claims that investment interest is the desire to learn everything there
is to know about a certain investment, including its benefits, drawbacks, and performance. Another
trait is that they will strive to learn more about these investments or will try to invest in these types
of investments right away, even if it means adding to the 'portion' of their present investments.
The Indonesian Stock Exchange (BEI) has made significant efforts to promote the capital market
to a variety of audiences, including students. Students are supposed to be agents of social change
in society, specifically in the transition from a consumer to a producer society. It is critical to
undertake training in order to increase public interest. Adding education to investing is a good way
to grow enthusiasts. People are hesitant to invest in the capital market for a variety of reasons,
including: first, a lack of understanding of how to trade; second, a perception that goods and
services in the capital market are high-risk; and third, the majority of goods and services in the
capital market are only used by the middle class. Wimboh Santoso, OJK's chief executive of law
and consumer protection, said that while there are 4 million investors, the number of millennials
that invest is still relatively modest. In comparison to surrounding countries, Indonesia ranks lower
than Singapore and Malaysia. (OJK, 2017)
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OJK (2017) also said that Individual willingness to invest will be increased via introductory capital
market courses, training, and investment seminars. The Indonesian Stock Exchange (IDX) website
provides information on investment approaches, and the Indonesian Securities Central Custodian
(KSEI) hosts workshops, discussion shows, seminars, interactive and instructional events, and
numerous educational programs for businesses. Many cautious potential investors undervalue their
investment. To fund a better future, students might invest in a variety of areas, including the capital
market. Funding is frequently an impediment to students making investments, particularly those
who receive money from their parents. When someone has a financial surplus, they invest it
quickly rather than preserving it (Komara & Wardani, 2018).
The Theory of Planned Behavior (TPB), which is a development of The Theory of Reasoned
Action, is a theory that helps explain the relationship between attitudes and behavior (TRA).
influenced by behavioral attitudes (behavioral attitudes) and subjective norms (subjective norm),
but also by perceived behavioral control (perceived behavioral control). Tandio and Widanaputra
(2016) explain that the Theory of Planned Behavior discusses how, through specific actions,
persons prefer to act in accordance with their intentions and perceptions of control, where
intentions are impacted by behavior, subjective standards, and behavior control. Because of the
awareness to act, potential investors are rated and considered. When an investor decides to achieve
a specific level of financial stability, suggestions from his family, environment, and innate genes
(male and female) produce certain behavioral patterns for the investor, his attitude and view toward
stock trading may get stronger. Investors will often begin to consider numerous other factors once
they have expressed an interest in investing. In his Theory of Reasoned Action, Ajzen (1985)
claims that a person's behavior is determined by an intention that is a function of behavior toward
subjective norm behavior. This intention is a cognitive representation of a person's preparedness
to behave and can accurately predict a person's behavior. Three factors influence this intention:
behavior, subjective norms, and control behavior.
The judgments and considerations of possible investors are present because of an awareness in
acting, according to Tandio and Widanaputra (2016). When decisions are taken to achieve a
specific level of financial stability, which is promoted by family, friends, and the environment to
form certain habits for these investors, investors' attitudes or opinions on stock investment grow
strong. Because of the awareness in carrying out investments, potential investors make
assessments and considerations.
2.3.4 Investment Strategies
Investments can be made in a variety of ways, including through the capital market. The capital
market serves two purposes simultaneously: economic and financial. Stocks, rights, and bonds are
some of the instruments of importance in the capital market. In addition to capital market
instruments, investors must be aware of dangers such as purchasing power risk, company risk,
interest rate risk, market risk, and liquidity risk when investing in the capital market. One option
to invest is to use the capital market. The capital market serves two purposes at once: economic
and financial. There are numerous instruments of concern in the capital market, including stocks,
rights, and bonds. In addition to capital market instruments, investors must be aware of several
dangers such as buying power risk, company risk, interest rate risk, market risk, and liquidity risk
when investing in the capital market. (Pakpahan, 2003)
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Investors who put the majority of their assets into a single form of investment must expect to profit
from it, thus it is critical to choose the right sort of investment to avoid losses. The outcome or
profit that investors hope to gain from investments made within a given period of time in the future
is known as return or return on investment. Tandelilin (2010) proposes the theory of return, which
defines return as one of the reasons that encourages investors to invest, as well as a reward for
investors' courage in taking risks on an investment. As a result, the optimal investment strategies
must be utilized in our future investment activities.
Active investment strategy and passive investment strategy are the two types of investment
strategies. According to Jones (2014), an active investment strategy is one that uses active trading
to create higher returns. The premise is that investors that do this benefit more than other investors,
such as superior analytical and judgment abilities, access to the most up-to-date information, and
the ability to accomplish things that other investors cannot. Despite multiple researches on efficient
markets, most investors still adopt this technique for stock selection and management. The reason
for this is that the profits are quite huge, and some investors believe they can make large profits
even if other investors cannot. Unlike active investors, passive investors believe that the market
price that occurs is a price that reflects the stock's inherent value. Investors will not try to actively
traded stocks that can generate abnormal returns in accordance with the principle of an efficient
capital market, which leads no investor to receive abnormal returns above the market. Carry out a
buy-and-hold strategy in its stock portfolio or duplicate the index (Tandelilin, 2010)
Technical and fundamental research will be used by active capital market investors to evaluate
stock selection. Active investors employ technical analysis because they believe that historical
data may be used to forecast future stock price movements. To forecast or value the future stock
price, investors will rely on previous stock price data and stock trading volume. Investors that
employ a passive investment strategy, on the other hand, will focus on the firm's fundamentals,
future goals, environmental impacts on the company, political influences on the company, and
other data about the company. Because investors who employ this method typically buy shares
when the stock price is lower than the stock's value.
3. Research Design Methodology
This research was designated as a comparative study to compare the findings of previous studies
on relevant issues such as financial literacy, investment activities, investment strategies, and
investment preferences.
3.1 Data Collection
This research used secondary data from journal articles, records, books, and periodicals. To fit the
subjects that will be covered in this paper, the majority of the study results used are from
Indonesian research as a basis for comparison to find conclusions. However, non-Indonesian
journal articles are also used to better grasp the topics to be presented in depth and generally.
The population refers to the total number of subjects or respondents who have relevant
characteristics and specific properties relating to the issue that the researcher has chosen to explore
and draw conclusions from. The participants in this study are largely students or people with little
or no investment expertise, or who have only invested for a few months.
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3.2 Data Analysis
Since this research is using secondary data from journal articles, records, books, and periodicals,
I will analyze all of the data to get the best answer for the research question.
4. Results and Discussion
Analysis of the data collected through secondary data from various journals and research stated
that achieving financial literacy has a significant impact on interest and investment strategy.
After analyzing several researches conducted in Indonesia and related to the topics discussed, the
authors found that Perceived Return, Perception of Risk, Minimum Investment Capital, and
Capital Market Training had a significant impact on investment interests and strategies. This can
also indicate that the more information a young investor has about investing, the more motivated
he or she is to invest, and vice versa, the less knowledge a young investor has about investing, the
less motivated he or she is to invest. Young investors can better grasp how to invest with
knowledge of investment.
Furthermore, young investors would recognize that having adequate investment knowledge will
make it easier for them to invest. As a result, young investors with a broad understanding of
investment are more likely to be motivated to participate in it, whether that motivation comes from
the outside or from within the young investor in the shape of achievement demands, power needs,
or the desire to cooperate.
5. Conclusion
Based on an analysis of all the data that has been collected by concluding the results of data
collected from research conducted by other researchers and also a literature review, the authors
conclude that financial literacy has a very significant influence on strategy and investment interest
for young investors or those with less than 1 year of investment experience.
The main barrier to financial literacy is the investors themselves; based on the findings of other
studies, it can be assumed that the investors' social environment and direct experience have a
significant impact on their financial literacy level. Financial literacy is a basic understanding that
should be taught to everyone since they are in school because it is a very important thing that can
improve a person's economic level and also the movement of a country’s economy. Financial
education initiatives will be most effective if they are adjusted to the level of understanding of
different subgroups of the population rather than generalized. Young investors with a high level
of financial literacy will be able to think more deeply about their investment selections. Extensive
knowledge will provide these young investors with a variety of investment options, each with its
own set of advantages and cons, making them more cautious in their decisions and lowering the
potential risk of their investments. As a result, we can conclude that financial literacy has a
substantial impact on young investors' interest and investing strategy; nevertheless, there are other
aspects that work in tandem with financial literacy to motivate and inspire young investors to raise
their investment interest.
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This study, however, did not provide clear evidence that financial literacy would significantly
influence strategies and investment interests of young investors. The findings presented in this
paper have implications for young investors or those with less than 1 year of investment
experience. This study examined the influence of financial literacy towards investment strategies
and interest.
6. Acknowledgement
Write your concise appreciation to all those people (or organizations) that have supported the
research program.
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THE INFLUENCE OF HERDING BIAS AND OVERCONFIDENCE ON
INVESTMENT DECISION FOR INSTITUT TEKNOLOGI BANDUNG
STUDENTS WITH FINANCIAL LITERACY AS MODERATING
VARIABLE
Ardhika Nur Pratama1*
1 School of Business and Management, Institute Teknologi Bandung, Bandung, INDONESIA
*Corresponding author: subiakto@sbm-itb.ac.id
Abstract: Nowadays, the disruption of technology forces the development of investment world. The need
for investment is increasing so they can get more additional income from capital market. From KSEI report
in June 2022, there huge increasement for total investor in Indonesia. Most of them are high school diploma
for the education background and students placed the second place for the investor occupation. Since the
investing are a part from financial literacy, this creates assumption for all investor that they have medium
to high financial literacy. But from the report from OJK in 2019, the current financial literacy index in
Indonesia is still 38%. The gap between increasement number of total investor and financial literacy index
create question among them, are the investor in Indonesia make rational investment decision among them
or they only follow the hype of investment world because sometimes when people make decision to choose
something they are influence by some biases. The example of current biases that usually occurs in
investment decision are herding bias and overconfidence bias. This research aim the influence of herding
bias and overconfidence towards students investor in Institut Teknologi Bandung with financial literacy as
moderate variable to know is there an effect from financial literacy to the herding bias and overconfidence
if they have those biases. This research conducted with non-probability sampling with 401 respondent and
use moderate regression analysis (MRA) as data analysis method for the financial literacy as moderating
variable and age, gender, faculty, monthly income, duration of investment as control variable. The result
of this research explain that overconfidence and herding bias have positive effect for student investment
decision. And for the moderating variable, financial literacy does not have significant influence to the
herding bias and overconfidence towards the student investment decision.
Keywords: Investment Decision, Herding Bias, Overconfidence, Financial Literacy.
1. Introduction
In present condition, financial literacy is the important thing to manage our money or asset that we
have and there is some increasement in the market participation because of people become more
interest in the financial market that promoted as well by the growth number of financial
institutions. Financial literacy itself define the knowledge of various financial skills such as
financial management, budgeting and investing (Fernancdo, 2021). It can help people to manage
what the next to do for their money they waste it to something that does not important. If people
have knowledge about the financial literacy, they can wise to spend their money and save it for the
next. The Indonesian Financial Services Authority conduct a survey in 2013 and found 21.84%
were financially literate, possessed knowledge, and trusted in the financial services sector.
According to the OJK (Otoritas Jasa Keuangan) survey in 2019, there is improvement to the
financial literacy in Indonesia. In 2019, the percentage of the financial literacy index in Indonesia
reach 38,03%, raise 8,33% from 2016 (OJK, 2020). From this survey there is little increasement
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from the financial literacy in Indonesia, especially in the capital market, there is only 4,92% in
2019.
As many people register the investor account for invest in the capital market, they should have to
decide to what kind of instrument they will entry. According to the Tanvir, Sufyan and Ahsan
(2016), investor decision from their investment is one of several aspect in the investment that is
important in the stock exchange investment. And for investment decision, investor has several
aspects that can affect the decision, intentionally or unintentionally, emotion can influence investor
rationally. In the research, Kahneman and Tversky (1979) explain prospect theory which is related
to the idea that humans do not always behave rationally. The involvement of emotions,
preferences, traits and various kinds of things inherent in humans often causes humans to not
always behave rationally in making decisions. Cognitive and emotional variables influence an
investor's investing decision, per Alwahaibi (2019). A rational investor chooses a low-risk, high-
return investment while investing. An investor's irrational conduct affects their investing decision
while making a choice. This type of investor behavior might lead to portfolio losses rather than
profits. Pompian (2006) divides bias into cognitive and emotional that cognitive bias defines as a
bias of how we interpret, process, and respond on information while emotional bias focuses on
feelings and spontaneity instead of facts. Overconfidence is an example of cognitive bias and cause
the main factor for influencing the decision to invest in a Ponzi scheme (Sari & Nugraha, 2016).
Besides the overconfidence bias can influence the investor decision making, herding bias can also
affect the decision making for the investor that can lead into investment loss. They pretend to
follow other investor investment plan, such as friends, family, or even unknown source from the
internet without consider other aspects. The herding bias and overconfidence can have different
impact on the investment decision, investor who has herding behavior can use other information
as additional judgement decision rather than follow it without any other decision. And for those
two behavior can lead the investor to get more profit or cause more loss.
2. Literature Review
Investment Decision
Investment decisions involve obtaining greater revenue from one or more assets in the hope of a
future profit. It helps choose alternate investments. Demographics, economic background, social
background, gender, and age influence investors' judgments (Novianggie & Asandimitra, 2019).
Financial Literacy
Financial literacy is the knowledge and ability to understand financial concepts to make financial
decisions (OECD, 2013). The investment decision include in this financial decision and for people
who have financial literate, it is easier for them to choose whether the best choice for them to
invest by using their knowledge to analyze the information about investment instrument (Wardani
& Lutfi, 2019).
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Herding Bias
Herding bias is the propensity for an investor to follow the investment plan recommendations of a
friend, family member, or broker when opting to make an investment. Individual investors are now
required to have a solid basis for their investing decisions in order to use them as a point of
reference (Qasim et al., 2019). According to the findings of Ghalandari and Ghahremanpour
(2013), herding bias has a favorable impact on investment decisions. This study found that the
herding bias influences Iranian investors' investment decisions. In addition, they discovered that
these investors rely more on the broker's pooled information. Setiawan, Atahau and Robiyanto
(2018) found, in contrast, that herding bias has no impact on investment decisions.
Overconfidence
Overconfidence refers to an investor's excessive confidence; as a result, they tend to be overly
optimistic about the market in which they invest, anticipating a massive return on their investment
and achieving great success. They believe their abilities, knowledge and expectation will gain huge
result (Novianggie & Asandimitra, 2019). These investors are overconfident in their skills,
knowledge, and future prospects, causing them to trade excessively at a lower level of predicted
usefulness. Self-attribution biases support the notion that investors who have a high level of
confidence in their trading abilities tend to engage in a high volume of trading, which has a
detrimental impact on their returns and is supported by their high trading volume. According to
the research conducted by Novianggie and Asandimitra (2019), student investing decisions are
correlated with their level of overconfidence. The explanation is that the respondent's response is
overly influenced by their own intuition regarding the investment they made. This research
connects to Toma's (2015) study, which demonstrated that an investor's level of overconfidence
influences the probability of making an investment decision; the more their level of
overconfidence, the greater their chances of making an investment decision. Alquraan, Alqisie and
Al Shorafa (2016); Khalid, Javed and Shahzad (2018); Qasim et al., (2019) found that
overconfidence had a beneficial impact on investing decisions. Ayu Wulandari and Iramani (2014)
found that overconfident behavior has a negative effect on investment decisions. And investors
with a high level of financial literacy can influence investing decisions due to their superior
knowledge Hayat (2016).
Financial Literacy Moderate Herding Bias and Overconfidence
Hayat (2016) studied Karachi and Islamabad investors' investment decisions. The investigation
showed that investors have an inadequate comprehension of financial fundamentals. Financial
knowledge cannot moderate the association between herding prejudice and investment decisions.
The study found that investors will always follow the herd if their investments continually deliver
profits. As a result of this research, investors believe public information is more profitable than
they wish and will continue to base future investment decisions on this perception. The investor
feels brokers have more reliable information. This result is consistent with the findings from
Khalid, Javed and Shahzad (2018) studies, they found that financial literacy cannot attenuate the
association between overconfidence and investing decisions. Higher-skilled investors are more
interested in technical and fundamental assessments, the survey found. Knowledgeable investors
get greater financial releases. Those with inadequate financial expertise rely on instincts while
investing.
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2.1 Problem Statement
With the rapid development of the investment world, the need for investment is increasing in
general, they assume that when investing, they will get additional income. This makes the role of
financial literacy very important, especially in understanding investment products. By having
adequate knowledge of finance, it is hoped that the public, especially investors, will be able to
make an investment decision that is right in line with expectations, namely getting additional
income. Based on the background above, the huge increasement of investor make a huge gap
between the financial literacy index and the investor total number in Indonesia. Since the
investment is one of the aspects in the financial literacy, are the investor make rational decision
when they invest in the capital market and is there are have a significant impact from the herding
bias and overconfidence to their investment decision. Moreover, since investing include in the
personal financial knowledge, this will create question among them. Is there any influence of
financial literacy to the herding bias and overconfidence in the student investment decision. With
the investor occupation second largest is the student, this will create a unique question among
them. Are the students who invest in the capital market do the rational decision and do the financial
literacy that they have can moderate the bias effect among them?
3. Method
Firstly, the researcher identified problems connected with financial literacy and investment
decision making. This will include the research question, study purpose, and scope limitation for
the problem identification. The researcher will then conduct a literature search for prior studies on
the same issue. From the literature review, researchers establish the prior study's hypotheses and
conceptual frameworks. In data collecting, the researcher will develop a quantitative research
approach and methodology beginning with data gathering technology, respondents, questionnaire,
and data analysis method. After that, the researcher will collect data and analyze the data
previously gathered via questionnaire. After collecting all of the data, the sample of undergraduate
students in the Bandung region will be evaluated using the Moderate Regression Analysis (MRA).
This research will conclude and make suggestions based on its findings at the final stage.
3.1 Materials
For the purpose of this study, a quantitative approach is used to measure the effect of financial
literacy on herding bias and overconfidence in student investment decisions. Using a structured
questionnaire, the researcher collects primary data for this study by distributing questionnaires.
For the purpose of collecting data without having participants answer several questions concerning
the current research topic, the survey method is employed (Connaway, 2010).
3.1.1 Samples
On this research, author uses a non-probability sampling method since not all demographic groups
have the same probability of being selected as respondents. Non-probability sampling is a sample
method in which not all people or population members can be picked as samples. Respondents for
this study must be undergraduate students at Bandung Institute of Technology, between the ages
of 18 and 23, as the minimum age for investing in the capital market in Indonesia is 17 years old,
and must have previously invested in any instrument.
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3.1.2 Site
This research employs non-probability sampling because not all students in all faculties have
previously been invested.
3.1.3 Procedures
Design
The variables involved in this study are an independent variable, a moderate variable, and a
dependent variable. The independent variable, according to Sugiyono (2018), is the variable that
causes the dependent variable to emerge or change. The independent variable also influences the
dependent variable; the symbol for the independent variable is (X). Consequently, the dependent
variable is the variable affected by the independent variable; the dependent variable is represented
by the symbol (Y). In this study, the independent variables are Herding Bias (X1) and
Overconfidence (X2), while the moderate variable is Financial Literacy (FL).
Variables
Four sections comprise the questionnaire: personal information, financial literacy, emotional bias,
and investment decision. In the first section devoted to personal information, the researcher
collects data on the respondent's age, gender, faculty, income, investment term, and investment
instrument.
Sample
The population for this sample is undergraduate students from Bandung Institute of Technology
in 2022 with current amount of 23.848 students. To determine the sample size, this research use
Slovin Formula with 5% margin error because the data will be categorical not continuous data that
5% margin error is acceptable (Hashim, 2010). The minimum sample size that requires for this
research from calculating using Slovin Formula is 379 samples.
3.2 Measurement
This survey uses primary data that collected using surveys and uses Google Forms as a tool to
collect all the information about respondents' data. In this research, Likert scale 1-5 will be used
for collecting the information about the emotional bias. The Likert scale is a type of scale used by
researchers to measure research attitudes. Positive and negative statements are most commonly
found on the Likert scale. Positive statements are used to measure positive perceptions, and
negative statements are used to measure negative perceptions. Researchers used a Likert scale of
1 to 5 ranging from 1 = very disagreeable to 5 = very agreeable. The questionnaire element uses
Indonesian because the investigator distributed the questionnaire to respondents who use
Indonesian as their primary language. Researchers used online messaging, social media, and email
to distribute surveys.
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3.3 Data Analysis
Descriptive Analysis
This study applies descriptive analysis, which interprets and explains data gathered from a
representative sample of respondents. According to research from Malhotra et al. (2016),
descriptive analysis will reveal missing or outlier data, as well as a discrepancy between the means
and standard deviations of variables measured on a five-point Likert scale. In addition, descriptive
statistics can be used to verify that the obtained data do not violate the skewness or kurtosis
assumptions, and that the mean and standard deviation fall within the predicted ranges. In other
ways, they will provide an outstanding summary of the sample's features. Statistics include
measurements of position (mean, mode, and median), variance (radius, interquartile range,
variance, standard deviation, and variation coefficient), and shape (skewness and kurtosis). This
type of analysis will be applied to clarify the author's collected data.
Moderate Regression Analysis (MRA)
This research will use Moderate Regression Analysis (MRA) to identify the type of moderating
variable. Use predictors in this investigation (herding bias and overconfidence). The interaction
test is utilized to assess the impact of the moderating variable on the relationship between the
independent and dependent variables. It is necessary to compare the two regression equations in
order to determine the type of moderating variable (Novianggie & Asandimitra, 2019).
Reliability and Validity Test
The validity test is used to determine whether a questionnaire is valid. When the questions or
statements on a questionnaire are able to reveal something that will be measured by the
questionnaire, we say that the questionnaire is valid. The statement questionnaire is deemed valid
if rcount is greater than rtable (Ghozali, 2018). The questionnaire is deemed valid if the
reproducibility coefficient is greater than 0.90 and the scalability coefficient is greater than 0.60.
(Abdi & Rianse, 2008). Using SPSS 24, examine the validity of statements using a Likert scale.
The statement questionnaire is deemed valid if rcount is greater than rtable (Ghozali, 2018).
The reliability test of a questionnaire is said to be reliable or reliable if a person's answer to the
statement is consistent or stable from time to time (Ghozali, 2018). The reliability test for financial
literacy uses the Kurder Richardson (KR) 20 formula because the score obtained is a dichotomy
score of 1 (one) and 0 (zero) (Abdi & Rianse, 2008). The reliability test for the statement
questionnaire was measured using the SPSS 24 program. SPSS provides facilities to measure
reliability with the Cronbach Alpha statistical test (lambing alpha). A variable is said to be reliable
if it gives a Cronbach Alpha value > 0.70 (Ghozali, 2018). The reliability test for the statement
questionnaire was measured using the SPSS 24 program. SPSS provides facilities to measure
reliability with the Cronbach Alpha statistical test (lambing alpha). A variable is said to be reliable
if it gives a Cronbach Alpha value > 0.70 (Ghozali, 2018).
Normality Test
The normality test aims to test whether in the regression model, the confounding or residual
variables have a normal distribution. There are 2 (two) ways that can be used to detect whether the
residuals are normally distributed or not, namely by graphical analysis and statistical tests
(Ghozali, 2018). The statistical test used in this study was the Kolmogorov-Smirnov test. If the
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significance > 0.05 then the data is normally distributed, otherwise if the significance is < 0.05
then the data is not normally distributed.
Multicollinearity Test
The multicollinearity test aims to test whether the regression model found a correlation between
the independent (independent) variables (Ghozali, 2018). Multicollinearity needs to be proven and
analyzed statistically by calculating VIF (Variance Inflation Factor). If the tolerance value is >
0.10 and VIF < 10, it means that there is no multicollinearity and if the tolerance value is < 0.10
and VIF > 10, it means that there is multicollinearity.
Heteroscedasticity Test
The heteroscedasticity test aims to test whether in the regression model there is an inequality of
variance from the residuals of one observation to another observation (Ghozali, 2018). This study
uses the Glejser test with the consequence that if the significance value is > 0.05 then the data does
not contain heteroscedasticity and if the significance value is <0.05 then it contains
heteroscedasticity.
To examine the relationship between the independent variable, the dependent variable, the control
variable, and the moderating variable, a moderate regression analysis (MRA) was employed for
this research. The utilized regression model is as follows:
ID = Investment Decision
FL = Financial Literacy
HB = Herding Bias
OC = Overconfidence
TI = Type of Investment
DI = Duration of Investment
e = Error
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3.4 Validity and Reliability
Validity Test
Financial Literacy
Table 1: Validity Test Financial Literacy
Indicator
r-table
r-count
Sig.
Result
FL1
0,1161
0,365
0,000
Valid
FL2
0,1161
0,480
0,000
Valid
FL3
0,1161
0,338
0,000
Valid
FL4
0,1161
0,634
0,000
Valid
FL5
0,1161
0,532
0,000
Valid
FL6
0,1161
0,534
0,000
Valid
FL7
0,1161
0,554
0,000
Valid
FL8
0,1161
0,545
0,000
Valid
FL9
0,1161
0,530
0,000
Valid
FL10
0,1161
0,529
0,000
Valid
Herding Bias
Table 2: Validity Test Herding Bias
Indicator
r-table
r-count
Sig.
Result
HB1
0,1161
0,395
0,000
Valid
HB2
0,1161
0,699
0,000
Valid
HB3
0,1161
0,740
0,000
Valid
HB4
0,1161
0,727
0,000
Valid
Overconfidence
Table 3: Validity Test Overconfidence
Indicator
r-table
r-count
Sig.
Result
OC1
0,1161
0,518
0,000
Valid
OC2
0,1161
0,352
0,000
Valid
OC3
0,1161
0,643
0,000
Valid
OC4
0,1161
0,737
0,000
Valid
OC5
0,1161
0,781
0,000
Valid
Investment Decision
Table 4: Validity Test Investment Decision
Indicator
r-table
r-count
Sig.
Result
ID1
0,1161
0,644
0,000
Valid
ID2
0,1161
0,545
0,000
Valid
ID3
0,1161
0,771
0,000
Valid
ID4
0,1161
0,755
0,000
Valid
ID5
0,1161
0,375
0,000
Valid
All the table show that all indicators of variables have an r-count value greater than the r-table and
a significant value less than 0.05 so that the indicators of variables are declared valid.
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Reliability Test
Reliability tests were carried out to determine whether the indicators studied had reliability by
calculating the Cronbach's Alpha value greater than 0.6. The following are the results of the
reliability test of the variables studied:
Table 5: Reliability Test
Variable
Indicator
Cronbach’s Alpha
Result
Financial Literacy
10
0,613
Reliable
Herding Bias
4
0,688
Reliable
Overconfidence
5
0,601
Reliable
Investment Decision
5
0,662
Reliable
4. Results and Discussion
In testing the hypothesis, the tests performed were the coefficient of determination test, moderated
regression analysis, simultaneous test (F test), and partial test (T test). The following are the tests
that will be carried out.
Coefficient of Determination Test
The coefficient of determination test is carried out to see how much influence the independent
variable and moderating variable have on the independent variable by using the adjusted R2 value.
Table 6: Coefficient of Determination Test
Model Summaryb
Model
R
R Square
Adjusted R
Square
Std. Error of the
Estimate
Durbin-Watson
1
.437a
.256
.232
.59882
2.065
a. Predictors: (Constant), Type of Investment, OC_FL, Income, HERDING BIAS, Duration
of Investment, OVERCONFIDENCE, Age, Faculty, HB_FL, FINANCIAL LITERACY
b. Dependent Variable: INVESTMENT DECISION
Based on the table, the adjusted R2 value is 0.232 and this value indicates that the influence of
financial literacy, herding bias, overconfidence, financial literacy moderation and herding bias, as
well as financial literacy and overconfidence moderation on investment decisions is 0.232 or
23.2%. The remaining 76.8% (100-23.2=76.8) was influenced by other variables not examined in
this study.
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Simultaneous Test (F Test)
Simultaneous test or F test is used to test whether the independent variable and moderating variable
simultaneously affect the dependent variable. The basis of the calculation is if the significant value
must be less than 0.05. The following are the results of the simultaneous test (F test) of this study
Table 7: Simultaneous Test (F Test)
ANOVAa
Model
Sum of Squares
df
Mean Square
F
Sig.
1
Regression
8.330
10
.833
2.323
.012b
Residual
139.847
390
.359
Total
148.178
400
a. Dependent Variable: INVESTMENT DECISION
b. Predictors: (Constant), Type of Investment, OC_FL, Income, HERDING BIAS, Duration of
Investment, OVERCONFIDENCE, Age, Faculty, HB_FL, FINANCIAL LITERACY
Based on the table above, the F test value is 2.323 and significant value is 0.012 and this value is
smaller than 0.05 (0.012 < 0.05). Based on this value, it can be concluded that the influence of
financial literacy herding bias, overconfidence, HB_FL, and OC_FL together has an effect on
investment decision.
Partial Test (T Test)
Partial test conducted to determine whether the built hypothesis is accepted or rejected on the basis
of measuring a significant value less than 0.05.
Table 8: Partial Test (T Test)
Variable
Coefficient
Sig. Value
Result
Financial Literacy
1,725
0,005
Accepted
Herding Bias
0,294
0,006
Accepted
Overconfidence
0,210
0,049
Accepted
HB_FL
-0,609
0,121
Rejected
OC_FL
-1,148
0,026
Accepted
Age
-0,037
0,475
Rejected
Faculty
0,036
0,496
Rejected
Income
0,049
0,346
Rejected
Duration of Investment
0,051
0,328
Rejected
Type of Investment
0,013
0,805
Rejected
In this study, the hypothesis uses a direction so that it uses a one-tailed significant value so that
the significant value is divided by two. The following describes the results of the partial test (T
test):
• The financial literacy variable has a coefficient value of 1.725 with a positive number so
that if financial literacy increases by one unit, it will increase investment decision by 1.725.
The significant value of the financial literacy variable is 0.005 and this value is smaller than
0.05 (0.005 <0.05) and indicates that the financial literacy variable has an effect on
investment decision so that hypothesis 1 is accepted.
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• The herding bias variable has a coefficient value of 0.294 with a positive number so that if
the herding bias increases by one unit, it will increase the investment decision by 0.294.
The significant value of the herding bias variable is 0.006 and this value is smaller than 0.05
(0.006 <0.05) and indicates that the herding bias variable has an effect on investment
decision so that hypothesis 2 is accepted.
• The overconfidence variable has a coefficient value of 0.210 with a positive number so that
if overconfidence increases by one unit, it will increase investment decision by 0.210. The
significant value of the overconfidence variable is 0.049 and this value is smaller than 0.05
(0.049 <0.05) and indicates that the overconfidence variable has an effect on investment
decision so that hypothesis 3 is accepted.
• The financial literacy variable which moderates herding bias has a coefficient value of -
0.609 with a negative number so that financial literacy weakens the influence of herding
bias on investment decision by 0.609. The significant value of the financial literacy
moderation variable on herding bias is 0.121 and this value is greater than 0.05 (0.121 >
0.05) and indicates that the financial literacy variable does not weaken the effect of herding
bias on investment decisions, so hypothesis 4a is rejected.
• The financial literacy variable that moderates overconfidence has a coefficient value of -
1.148 with a negative number so that financial literacy weakens the influence of
overconfidence on investment decisions by 1.148. The significant value of the financial
literacy moderation variable on overconfidence is 0.026 and this value is smaller than 0.05
(0.026 <0.05) and indicates that the financial literacy variable weakens the influence of
herding bias on investment decisions so that hypothesis 4b is accepted.
• The age variable has a coefficient value of -0.037 with a negative sign so that each age
increases by one unit, the investment decision will decrease by 0.037. The significant value
of the age variable is 0.475 and this value is greater than 0.05 (0.475 > 0.05) and indicates
that the age variable does not affect investment decision.
• The faculty variable has a coefficient value of 0.036 with a positive sign so that each faculty
increases by one unit, the investment decision will increase by 0.036. The significant value
of the faculty variable is 0.496 and this value is greater than 0.05 (0.496 > 0.05) and
indicates that the faculty variable does not affect the investment decision.
• The income variable has a coefficient value of 0.049 with a positive sign so that each income
increases by one unit, the investment decision will increase by 0.049. The significant value
of the income variable is 0.346 and this value is greater than 0.05 (0.346 > 0.05) and
indicates that the income variable does not affect the investment decision.
• The duration of investment variable has a coefficient value of 0.051 with a positive sign so
that every time the duration of investment increases by one unit, the investment decision
will increase by 0.051. The significant value of the duration of investment variable is 0.328
and this value is greater than 0.05 (0.328 > 0.05) and indicates that the duration of
investment variable does not affect investment decision.
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• The variable type of investment has a coefficient value of 0.013 with a positive sign so that
each type of investment increases by one unit, the investment decision will increase by
0.013. The significant value of the type of investment variable is 0.805 and this value is
greater than 0.05 (0.805 > 0.05) and indicates that the type of investment variable does not
affect investment decision.
5. Conclusion
The following describes the discussion based on the results of the study:
Effect of Financial Literacy on Investment Decision
Based on the results of the study, it was found that financial literacy had an effect on investment
decisions. The results of this study explain that the increasing financial literacy will increase
investment decisions. This result is in line with research conducted by Novianggie and
Asandimitra (2019) which found that financial literacy has an effect on investment decisions. The
investment decision includes in this financial decision and for people who have financial literate,
it is easier for them to choose whether the best choice for them to invest by using their knowledge
to analyze the information about investment instrument (Wardani & Lutfi, 2019). This result is
supported by the highest answer value of respondents in answering financial literacy questions
based on basic financial literacy and advanced financial literacy by answering 9 out of 10 questions
with correct answers. Meanwhile, the highest value of respondents' answers regarding investment
decisions is the 5th question, namely budgeted my money well. These results explain that someone
with financial literacy will be more careful in making investment decisions because the more
someone who has financial literacy will pay attention to investment developments so that when
making investment decisions it will not harm them. Financial literacy is needed when someone
will make an investment decision based on their ability to understand and apply their expertise in
finance so that when making an investment decision, they are very careful so that making
investment decisions becomes a place for the funds to be invested. In addition, being supported by
high financial literacy causes a high level of consideration for someone to invest, one of which is
to prepare investment funds carefully so that investment decision making is stronger, supported
by the investment funds they have.
Effect of Herding Bias on Investment Decision
The results of this study found that herding bias has an effect on investment decisions. This result
explains that the increasing herding bias will increase the investment decision. The results of this
study are in line with research conducted by Ghalandari and Ghahremanpour (2013) which found
that herding bias affects investment decisions. Herding bias is the tendency of an investor
following other investment plan suggestion that given by their friend, family, or broker in deciding
to make an investment. It made the individual investor must have a good choice in with their
investment decision so they can make them as the reference in the investment decision (Qasim et
al., 2019). This result is also supported by the respondent's highest answer regarding herding bias
from question 1, namely I prefer to invest in well-known companies that have wider media
coverage and the respondent's highest answer regarding investment decision from question 5 is
budgeted my money well. These results explain that when a well-known company has a lot of
news in the media, someone will take it as a material consideration in investing in the company.
Companies that have a lot of news in the media become famous and attract a lot of public attention
to be able to enter into investment trading. This is one of the behaviors of individuals in a group
who are without direction in making investment decisions based only on how the media covers a
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company so that it becomes famous and attracts people's attention to invest in the company. This
is one of the right bases in making investment decisions because a well-known company will have
a great responsibility to the community to maintain its reputation and positive image in the eyes
of the community so that the company can continue to be the attention of the wider community.
In addition, respondents have budgeted their money well in investing so that they can take the right
steps in investing.
The Effect of Overconfidence on Investment Decisions
The result of this research is that overconfidence has an effect on investment decision. These
results explain that increasing one's self-confidence will affect the amount of investment decisions
taken to make investments. This result is in line with research conducted by Novianggie and
Asandimitra (2019) which found that overconfidence has an effect on investment decisions. This
result is supported by the respondent's highest answer regarding overconfidence in the second
question, namely I take the responsibility of managing my portfolio and I trust my decisions and
the respondent's highest answer from investment decision on the 5th question, namely budgeted
my money well. These results explain that someone who has high self-confidence will influence
their investment decision. This is because high trust makes them their reference material in making
investment decisions because they have their own budget to prepare the invested investment funds.
When investing, someone will feel confident in predicting future events related to investment so
that in making investments that are supported by the capital that has been prepared.
The Effect of Moderating Financial Literacy with Herding Bias and Overconfidence on
Investment Decisions
The results of this study found that financial literacy did not weaken the effect of herding bias on
investment decisions. This result is in line with the lowest financial literacy of the respondents by
answering 0 out of 10 questions given and the lowest value of respondents' answers regarding
herding bias, namely my decision making in my investment is based on the votes of the majority
of the people closest to me and the lowest score of respondents' answers regarding investment
decisions is me. consider fundamental factors in my investment decisions. These results explain
that a person's minimal financial literacy makes someone prefer to be able to listen to input from
the majority of the closest people's voices compared to seeking information about investment as a
material consideration in making investment decisions. This ultimately causes a person's lack of
knowledge about investment products and risks so that they cannot analyze investment activities
fundamentally.
The Effect of Moderation on Financial Literacy with Overconfidence on Investment
Decisions
The results of this study found that financial literacy weakens the effect of overconfidence on
investment decisions. These results explain that the increasing financial literacy of a person will
reduce his overconfidence in making investment decisions. This result is supported by the highest
score of respondents' answers regarding financial literacy with correct answers as many as 9 out
of 10 questions given and the highest score of respondents' answers regarding overconfidence,
namely I am responsible for managing my portfolio and I trust my decisions and the highest answer
of respondents regarding investment decisions is when it comes to investing in the stock market, I
will enter when a lot of people enter into trading. These results explain that a person's high financial
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literacy will reduce his overconfidence in investing in someone to manage a portfolio and trust his
decisions because investing requires a lot of consideration and input in managing and dealing with
investment risks. Seeing the number of people entering the trade illustrates that many people carry
out investment activities so that the investment climate has a high level of competitiveness and
risk. Based on this, it is necessary not only to have confidence in portfolio management and
decision making so that financial literacy is also needed in taking investment steps
6. Acknowledgement
Thank you for Allah SWT., my family, friends, and my supervisor in School of Business and
Management Bandung Institute Technology. Because from your support I was able to finish this
research. And also thank you for all ITB students who have been respondent for my research.
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THE MEDIATION EFFECT OF KNOWLEDGE COGNITION
AND REGULATION COGNITION ON MATHEMATICS
CLASSROOM CLIMATE AND STUDENTS’ ACHIEVEMENT
Priscilla Petrus Dolinting1* and Vincent Pang2
1 2 Faculty of Psychology and Education, University Malaysia Sabah, Kota Kinabalu, MALAYSIA
*Corresponding author: cilla_ekin@yahoo.com
Abstract: There is a vast number of past studies revealed among the factors that affect the
achievement of students in mathematics subject are classroom climate, students’ knowledge of
cognition and regulation cognition. Therefore, this study aims to determine the mediation effect of
knowledge of cognition and regulation of cognition on relationship between classroom climate
(student cohesiveness, teacher support, involvement, investigation, task orientation, cooperation
and equity) and students’ mathematics achievement. This study employed survey method involving
a total of 326 form four students from five rural secondary schools via multi-stage cluster
sampling. Data were collected using two questionnaires: 1) What is Happening in This Class?
(WIHIC) and 2) Metacognitive Awareness Inventory (MAI) as well as mathematics form four
achievement test. The data was analysed by using Partial Least Squares-Structural Equation
Modelling (PLS-SEM) through Smart PLS version 3.2.8 software. Mediation analysis indicated
that knowledge of cognition mediates the relationships between classroom climate (investigation,
task orientation and equity) and students’ mathematics achievement, while regulation cognition
mediates the relationships between classroom climate (student cohesiveness, investigation and
equity) and students’ mathematics achievement. The findings of this study provide valuable
insights to the teachers about what they need to prioritise in regard to create a positive classroom
climate to develop students’ knowledge of cognition and regulation cognition as well as to improve
students’ mathematics achievement. This study contributes significantly to the body of knowledge
by developing and empirically testing the relationship connecting to classroom climate with
knowledge of cognition, regulation cognition and students’ mathematics achievement within the
rural school context in Malaysia.
Keywords: mathematics, classroom climate, knowledge of cognition, regulation cognition,
students’ achievement.
1. Introduction
Improving students’ mathematics achievement has been, and continues to become a major
educational goal (Wang & Eccles, 2016). In a school setting, the most common evidence of student
acquisition in mathematics skills is their mathematics grade and achievement but other indicators
of learning outcomes include active involvement in class activities, improved learning strategies,
changes in study habits and increased motivation (Cayubit, 2021).
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These learning outcomes are affected by many factors and there have been numerous studies
reported the role of classroom climate quality (Reynolds et al., 2017; Riaz & Asad, 2018) and
metacogniton awareness (Kaur et al., 2018; Langdon et al., 2019; Mamon et al., 2020) are
considered as crucial influencing factors.
2. Literature Review
In the current study, classroom climate is based on Vygotsky’s sociocultural theory (Vygotsky,
1978), which described most of the children’s learning is developed through interactions with
others in their social world. Vygotsky (1978) believed that human learning is originated in two
levels: first, through individual social interaction with others such as their parents or siblings in
terms of students’ home environment meanwhile teachers and students in a classroom setting.
Second, the students’ ability to convert the acquisition knowledge from social interaction into their
personal understanding. The second level of Vygotsky’s sociocultural theory (Vygotsky, 1978) is
the idea that the potential of students’ cognition is limited to a zone of proximal development
(ZPD). ZPD is used to describe skills that are difficult to achieve by students can be fully developed
with the assistance and social interaction with adults or more capable peers.
The concept of metacognition was initially introduced by Flavell (1979) as thinking about
thinking. After metacognition has been well accepted by most researchers from the field of
education and psychology, several researchers regarded metacognition as a two-dimensional
concept (Schraw & Dennison, 1994; Teng, 2017, Kallio et al., 2018, Stephanou & Mpiontini,
2017). Knowledge of cognition and regulation cognition. Knowledge of cognition has three
subcomponents namely declarative knowledge, procedural knowledge and conditional knowledge.
On the other hand, cognition regulation encompassing a set of activities (planning, monitoring and
evaluating) that enable students to control their learning. Thus, knowledge of cognition and
regulation cognition play an important role in mathematics learning.
There had been plenty of studies discussing the role of classroom climate quality such as students’
cohesiveness (Ouyang & Chang, 2019; Siti Nazleen & Nor Shahida, 2020), teacher support
(Zepeda et al., 2018), involvement (Mccleary et al., 2019), investigation (Muhammad Asy’ari et
al., 2019), task orientation (Manwaring et al., 2017), cooperation (Erdogan, 2019; Fischer et al.,
2018) and equity (Luria et al., 2017; Tang et al., 2017) in selecting learning strategies especially
knowledge of cognition and regulation cognition. These studies highlighted that student
cohesiveness, teacher support, involvement, investigation, task orientation, cooperation and equity
are indispensable in a classroom setting because it allows students to develop their knowledge of
cognition and regulation cognition, and could be helpful to their mathematics achievement.
2.1 Problem Statement
There is no denial of the fact that the disparities between urban and rural schools regarding quality
education and performance in public examination are widening at an alarming rate especially in
developing countries (Yap & Loke, 2016). In Malaysian context, mathematics has been a critical
subject in certain locations, especially in rural schools. Statistical evidence also showed that there
is a significant difference of the TIMSS mathematics achievement among urban and rural schools
in Malaysia. A summary of the mathematics performance by locality in TIMSS 2011 to TIMSS
2019 is provided in Table 1
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Table 1: TIMSS Mathematics Average Score By Locality (Malaysia) from 2011 to 2019
Locality
2011
2015
2019
Urban
448
470
471
Rural
416
442
435
Source: Malaysia Ministry of Education (2020)
The gap in public examination performance of mathematics such as Malaysian Certificate of
Education (SPM) between urban and rural students indirectly influences an individual state’s
performance in the national ranking. Both urban and rural schools are expected to show the same
academic performance as they follow a common curriculum and syllabus. Considerable studies
have shown that good quality of classroom climate (Cayubit, 2021) and higher level of knowledge
cognition and regulation cognition (Bishara & Kaplan, 2018; Ellah et al., 2018) in mathematics
learning are associated with higher achievement. To date, only few studies have reported the
interaction effects of the three variables: classroom climate, metacognition awareness (knowledge
of cognition and regulation cognition) as well as students’ mathematics achievement especially in
Malaysia education but none investigated those variables’ effect simultaneously in the context of
rural schools. Therefore, the current study aimed to examine the psychosocial features of the
classroom climate (students’ cohesiveness, teacher support, involvement, investigation, task
orientation, cooperation and equity) and their relation to students’ knowledge of cognition and
regulation cognition toward learning and achievement especially the mediation analysis.
3. Method
3.1 Materials
Two psychometric scales, namely: What is Happening in This Class (WIHIC) (Fraser et al., 1996)
and Metacognition Awareness Inventory (MAI) (Schraw & Dennison, 1994) as well as a
mathematics achievement test developed by the researcher were used to measure students’
perception of their mathematics classroom climate, knowledge of cognition and regulation
cognition as well as their mathematics achievement. The English version of WIHIC and MAI
questionnaires were translated into Malay language by the researcher and back translated to
English by an English teacher to ensure the validity of the translation. Then, the back translations
were checked by a language expert.
3.1.1 Samples
The population of this study were Form four students of all rural secondary schools in Sabah,
Malaysia, with a total number of 1319 Form four students (data obtained from Education Planning
and Research Division, MOE Malaysia). Based on Krejcie and Morgan (1970) sampling table, it
is suggested that the study needs a sample size of 302. The distribution of respondent profiles
according to gender and school name are given in Table 2.
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Table 2: The Distribution of Respondent Profiles According to Gender and School Name
Respondent Profile
Information
Frequency
Percentage
Gender
Boy
149
44.1
Girl
189
55.9
School Name
A
84
24.9
B
58
17.2
C
82
24.3
D
50
14.8
E
64
18.9
3.1.2 Site
The study was conducted in five Divisions in Sabah, Malaysia: Interior Division, Kudat Division,
Sandakan Division, Tawau Division and West Coast Division. Sabah is a state with the largest
number of rural secondary schools of all states in Malaysia (data obtained from Education Planning
and Research Division, MOE Malaysia).
3.1.3 Procedures
This study employed a survey design to investigate the mediation effects of knowledge of
cognition and regulation cognition on relationship between classroom climate and students’
mathematics achievement in the context of rural secondary schools in Sabah, Malaysia. Based on
the aim of the current study and literature review in Section 2, this leads to the following
hypotheses:
H01 (a): Knowledge of cognition is not a mediator for the relationship between student
cohesiveness and the students’ mathematics achievement.
H01 (b): Knowledge of cognition is not a mediator for the relationship between teacher support
and the students’ mathematics achievement.
H01 (c) : Knowledge of cognition is not a mediator for the relationship between involvement
and the students’ mathematics achievement.
H01 (d): Knowledge of cognition is not a mediator for the relationship between investigation
and the students’ mathematics achievement.
H01 (e) : Knowledge of cognition is not a mediator for the relationship between task orientation
and the students’ mathematics achievement.
H01 (f): Knowledge of cognition is not a mediator for the relationship between cooperation
and the students’ mathematics achievement.
H01 (g) : Knowledge of cognition is not a mediator for the relationship between equity and the
students’ mathematics achievement.
H02 (a) : Regulation cognition is not a mediator for the relationship between student
cohesiveness and the students’ mathematics achievement.
H02 (b): Regulation cognition is not a mediator for the relationship between teacher support
and the students’ mathematics achievement.
H02 (c): Regulation cognition is not a mediator for the relationship between involvement and
the students’ mathematics achievement.
H02 (d) : Regulation cognition is not a mediator for the relationship between investigation and
the students’ mathematics achievement.
H02 (e) : Regulation cognition is not a mediator for the relationship between task orientation
and the students’ mathematics achievement.
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H02 (f): Regulation cognition is not a mediator for the relationship between cooperation and
the students’ mathematics achievement.
H02 (g) : Regulation cognition is not a mediator for the relationship between equity and the
students’ mathematics achievement.
Figure 1 shows the conceptual framework of the current study. This framework comprises of
independent, mediating and dependent variables under secondary schools setting in rural area of
Sabah, Malaysia. The independent variables include students’ cohesiveness, teacher support,
involvement, investigation, task orientation, cooperation and equity which are adapted from
psychosocial aspects of a classroom climate proposed by Fraser et al. (1996). The mediating
variables include knowledge of cognition and regulation cognition which are adapted from the
concept of metacognition awareness by Schraw and Dennison (1994).
Figure 1: Conceptual Framework of the Current Study
By using multi-stage cluster sampling, one district was selected representing each Division with
the district functioning as the first cluster at the first stage. Then, one school was selected from the
selected district (first cluster) as the second cluster at the second stage. All Form Four students
from each cluster were selected to finally determine the final sample. The total number of 338
Form four students from five selected rural secondary schools in Sabah, Malaysia, were selected
for the final sample. The sample size was sufficient for the purposes of the current study.
3.2 Measurement
Students’ perceptions of their mathematics learning experiences in classroom were measured using
WIHIC, a multidimensional scale which consisted of seven sub scales: student cohesiveness (KP),
teacher support (SG), involvement (PL), investigation (PS), task orientation (OT), cooperation
(KJ) and equity (KS), each with eight items. Each item in WIHIC is rated on a Likert-type scale
where students answer the items according to five statements which are ‘Never’ (1), ‘Seldom’ (2),
“Sometimes’ (3), ‘Often’ (4) and ‘Always’ (5). The questions in WIHIC have been modified
specifically on mathematic learning experiences due to the original questions in WIHIC
encompassing a more general view on classroom climate. For example, the item “I discuss ideas
in the class” is changed to “I discuss ideas in mathematics class”.
Students’ knowledge of cognition and regulation of cognition were measured using the MAI. The
MAI consists of 52 items:17 items addressing knowledge of cognition includes eight items on
declarative knowledge, four items on procedural knowledge and five items on conditional
knowledgea. Meanwhile, 35 items addressing the regulation cognition includes seven items on
planning, 10 items on information management strategies, seven items relating to comprehension
H01
Student Cohesiveness
Teacher Support
Involvement
Investigation
Task Orientation
Cooperation
Equity
Knowledge of
Cognition
Regulation
Cognition
Students’
Mathematics
Achievement
H01
H02
H02
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monitoring, five items on debugging strategies and six items on evaluation. Items included in MAI
were rated on a five-point Likert-type scale ranging from ‘strongly disagree’ (1) to ‘strongly agree’
(5).
The students’ mathematics achievement was evaluated based on the total scores obtained from a
mathematics achievement test developed by the researcher. Six topics: standard form, quadratic
expression and equation, set, logical mathematical, straight lines and statistics were tested via eight
items multiple choice questions and five items subjective questions.
3.3 Data Analysis
Data analysis was based on the SEM approach to test the proposed hypotheses. The Smart PLS
program version 3.2.8 was utilized to run the data analysis. As mentioned earlier, the current study
hypothesizes two mediators in a model study, the researcher estimated specific indirect effect
instead of total indirect effects as suggested by Memon et al. (2018). A statistically significant
indirect effect (t-value > 1.96, two -tailed, p <0.05) are evidence for mediation (Preacher & Hayes,
2004; Zhao et al., 2010). In addition, an assessment of the confidence interval is also an important
criterion to confirm the mediation effect. If a confidence interval for the specific indirect effect
does not straddle a zero in between, this supports the presence of mediation effect and vice versa
(Memon et al., 2018). Bootstrapping is a nonparametric procedure that can be used to test the
statistical significance of various PLS-SEM results. However, the bias-corrected and accelerated
(BCa) bootstrap confidence intervals method is the most consistent effective technique (Puth et
al., 2015) and it adjusts the confidence intervals for skewness (Sarstedt et al., 2019).
3.3.1 Validity and Reliability
The reliability and convergent validity of the constructs is evaluated by analyzing the Cronbach’s
alpha and composite reliability of the indicator Hair et al. (2019) recommends a value of greater
than 0.708 as a threshold value for this indicator. Loadings above 0.708 indicate that the construct
explains more than 50% of the indicator’s variance, demonstrating that the indicator exhibits a
satisfactory degree of reliability. The Cronbach’s alpha scores ranged between 0.902 and 0.947
while the composite reliability scores ranged between 0.902 and 0.947, indicating adequate
convergence or internal consistency. Overall, these results provide clear support for the construct’s
internal consistency reliability as all criteria (i.e. CR, rho_A (), and Cronbach’s Alpha) are well
above the commonly recommended threshold of 0.708 as indicated in Table 3 and Figure 2.
This study assesses the discriminant validity via cross-loadings analysis and Heterotrait–Monotrait
(HTMT) ratio. The correlation matrix in Table 4 shows that for each pair of constructs, the AVE
square root of each construct is higher than the absolute value of their correlation. The results of
cross-loadings show that all items loaded higher on their respective constructs than on the other
constructs and the cross-loadings differences are much higher than the suggested threshold of 0.10.
Finally, the results of the HTMT ratio as shown in Table 4 confirm that values of the HTMT are
below the threshold of 0.85 or 0.90 (Henseler et al., 2015).
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Table 3: Validity and Reliability of Measurement Scales
Construct
Item
Outer
Loading
Rho_A()
CR
Cronbach’s
Alpha
AVE
Student
Cohesiveness
KP1
0.817
0.948
0.947
0.947
0.690
KP2
0.896
KP3
0.782
KP4
0.892
KP5
0.751
KP6
0.863
KP7
0.794
KP8
0.837
Teacher
Support
SG10
0.814
0.928
0.924
0.925
0.636
SG11
0.703
SG12
0.726
SG13
0.802
SG14
0.929
SG15
0.820
SG16
0.769
Involvement
PL19
0.744
0.921
0.917
0.917
0.648
PL20
0.859
PL21
0.749
PL22
0.721
PL23
0.870
PL24
0.872
Investigation
PS26
PS27
PS28
PS29
PS30
PS31
PS32
0.740
0.828
0.839
0.909
0.824
0.731
0.931
0.944
0.940
0.938
0.692
Task
Orientation
OT33
OT34
OT35
OT36
OT37
0.832
0.850
0.814
0.860
0.746
0.914
0.912
0.911
0.674
Cooperation
KJ39
0.808
0.928
0.926
0.925
0.642
KJ40
0.827
KJ42
0.754
KJ43
0.748
KJ44
0.871
KJ45
0.858
KJ46
0.730
Equity
KS47
0.805
0.933
0.930
0.929
0.627
KS48
0.890
KS49
0.771
KS50
0.714
KS51
0.769
KS52
0.858
KS53
0.796
KS54
0.715
Declarative
Knowledge
PK1a
0.840
0.930
0.929
0.929
0.653
PK1b
0.749
PK1c
0.768
PK1d
0.808
PK1e
0.824
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Construct
Item
Outer
Loading
Rho_A()
CR
Cronbach’s
Alpha
AVE
PK1f
0.831
PK1g
0.832
Procedural
Knowledge
PK2a
0.801
0.903
0.902
0.902
0.698
PK2b
0.827
PK2c
0.860
PK2d
0.853
Conditional
Knowledge
PK3a
0.814
0.924
0.924
0.923
0.708
PK3b
0.880
PK3c
0.855
PK3d
0.806
PK3e
0.850
Planning
RK1a
0.885
0.938
0.937
0.936
0.748
RK1d
0.872
RK1e
0.828
RK1f
0.830
RK1g
0.908
Information
Management
RK2a
0.841
0.945
0.944
0.944
0.707
RK2b
0.896
RK2c
0.819
RK2d
0.799
RK2h
0.837
RK2i
0.860
RK2j
0.829
Comprehention
Management
RK3a
RK3b
RK3c
RK3d
RK3e
RK3f
0.842
0.808
0.802
0.755
0.859
0.789
0.921
0.919
0.919
0.656
Debugging
Strategy
RK4a
0.908
0.822
0.896
0.848
0.904
0.944
0.943
0.942
0.768
RK4b
RK4c
RK4d
RK4e
Evaluation
RK5a
0.826
0.945
0.944
0.944
0.738
RK5b
0.836
RK5c
RK5d
RK5e
RK5f
0.859
0.871
0.863
0.898
Achievement Score
1.000
1.00
1.000
1.000
1.000
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Table 4: The Result of Discriminant Validity for HTMT Ratio
KJ
KP
KS
OT
PC
PK
PL
PS
RK
SG
KJ
KP
0.590
KS
0.719
0.552
OT
0.691
0.578
0.578
PC
0.536
0.502
0.523
0.522
PK
0.537
0.482
0.548
0.545
0.724
PL
0.532
0.752
0.552
0.527
0.401
0.472
PS
0.528
0.394
0.495
0.585
0.467
0.497
0.443
RK
0.523
0.510
0.541
0.504
0.756
0.789
0.432
0.491
SG
0.610
0.881
0.566
0.551
0.434
0.430
0.790
0.379
0.420
0.352
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Figure 2: Measurement Model Result
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4. Results and Discussion
The mediation analysis was conducted using 5000 bootstrapping samples. To test the mediating
role of knowledge of cognition (H01a, H01b, H01c, H01d, H01e, H01f, H01g) and regulation
cognition (H02a, H02b, H02c, H02d, H02e, H02f, H02g), researcher applied bootstrapping
technique using Bca to test the specific indirect effects. Table 1 shows the results of the indirect
effects of the independent (exogenous) variables (KP, SG, PL, PS, OT, KJ, and KS) on the
dependent (endogenous) variable (students’ mathematics achievement) through their mediators
(PK and RK).
The indirect effect of investigation (β =0.058, p = 0.026, 95% CI; LB:0.013, UB: 0.114), task
orientation (β =0.059, p = 0.069, 95% CI; LB:0.002, UB: 0.131) and equity (β =0.073, p = 0.022,
95% CI; LB:0.013, UB: 0.136) on students’ mathematics achievement through knowledge of
cognition were significant. There is no mediation effect for knowledge of cognition on student
cohesiveness (β =0.048, p = 0.316, 95% CI; LB: -0.029, UB: 0.149), teacher support (β =-0.051,
p = 0.330, 95% CI; LB: -0.156, UB: 0.044), involvement (β =0.048, p = 0.182, 95% CI; LB:-0.013,
UB: 0.130) and cooperation (β =0.036, p = 0.332, 95% CI; LB:-0.028, UB: 0.119).
In line with previous findings, through knowledge of cognition, classroom climate that encourages
investigation (Cheng & Wan, 2017; Nurulhuda & Saemah, 2017), task orientation (Neuenhaus et
al., 2018; Hayat et al., 2020) and equity enhanced students’ mathematics achievement significantly
(see Table 1). The other four factors (Student Cohesiveness, Teacher Support, Involvement, and
Cooperation) of classroom climate did not show significant mediation level by knowledge of
cognition. This shows that only certain components in classroom climate are influenced by
knowledge of cognition. Thus, the findings of the current study regarding student cohesiveness
contradict the result of Sadipour et al. (2017) and Wentzel et al. (2018). More specifically, student
with positive emotion tends to participate and interact with other students in the classroom, affect
the use of learning strategies such as metacognitive strategies and lead to the improvement of
students' academic performance. Moreover, the inconsistent findings of teacher support as reported
in Chong et al. (2018) show that more future studies are needed to investigate types of teacher
support other than emotional support as measured in the current study to explain teacher support
on knowledge of cognition and students’ achievement. Furthermore, these findings contradict the
work by Law et al. (2019), when students are self-initiated to participate in learning and thinking
activities, interact with others will positively and directly affect their learning performance. These
apparently contradictory results can be explained by the passive interaction of teacher-student
classroom climates in the current study due to the fact that lecture-based teaching is still common
in Asian education context (Tran et al., 2019).
The indirect effect of student cohesiveness (β =0.174, p = 0.011, 95% CI; LB:0.0070, UB: 0.338),
investigation (β =0.099, p = 0.007, 95% CI; LB:0.033, UB: 0.177) and equity (β =0.114, p = 0.012,
95% CI; LB:0.024, UB: 0.205) on students’ mathematics achievement through regulation
cognition were significant. There is no mediation effect for regulation cognition on teacher support
(β =-0.123, p = 0.094, 95% CI; LB: -0.290, UB: 0.001), involvement (β =0.019, p = 0.700, 95%
CI; LB:-0.079, UB: 0.116), task orientation (β =0.037, p = 0.404, 95% CI; LB:-0.052, UB: 0.126)
and cooperation (β =0.061, p = 0.235, 95% CI; LB:-0.029, UB: 0.174).
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Regulation cognition mediated the effects of classroom climate component: student cohesiveness,
investigation and equity on students’ mathematics achievement. This suggests that students with
high perception of close relationships with classmates, do more inquiry, have equal learning
opportunities with other students in the classroom, are likely to plan, manage information, monitor
their comprehension, use debugging strategies and evaluate their understandings which in turn
leads to improved mathematics achievement. These results echo our expectations as well as
previous findings from Zhou et al. (2021) and Nurulhuda and Saemah (2017) which indicated that
students’ regulation cognition, is positively linked to their reports of closeness with their
classmates and the emphasis of inquiry activities in the classroom. This result implied
metacognitive aspects (knowledge of cognition and regulation cognition) to be a prerequisite for
effective learning and is believed to directly contribute to an increase in student achievement.
To sum up, the bootstrapping results presented in Table 4 indicated that the mediation effect of
classroom climate (Investigation, Task orientation and Equity) on students’ mathematics
achievement through knowledge of cognition and the mediation effect of classroom climate
(Student Cohesiveness, Investigation and Equity) on students’ mathematics achievement through
regulation cognition were significant.
Table 4: The Result of Mediation Tests
Independent
Variable
Dependent
Variable
Hypotheses
Path
Coefficient
T value
P value
BCa CI
[LB, UB)
Knowledge of Cognition (PK) as Mediator
KP
Students’
Mathematics
Achievement
H01a
0.048
1.003
0.316
[-0.029, 0.149]
SG
H01b
-0.051
0.974
0.330
[-0.156, 0.044]
PL
H01c
0.048
1.333
0.182
[-0.013, 0.130]
PS
H01d
0.058
2.230
0.026
[0.013, 0.114]
OT
H01e
0.059
1.820
0.069
[0.002, 0.131]
KJ
H01f
0.036
0.969
0.332
[-0.028, 0.119]
KS
H01g
0.073
2.283
0.022
[0.013, 0.136]
Regulation Cognition (RK) as Mediator
KP
Students’
Mathematics
Achievement
H02a
0.174
2.546
0.011
[0.070, 0.338]
SG
H02b
-0.123
1.673
0.094
[-0.290, 0.001]
PL
H02c
0.019
0.385
0.700
[-0.079, 0.116]
PS
H02d
0.099
2.699
0.007
[0.033, 0.177]
OT
H02e
0.037
0.834
0.404
[-0.052, 0.126]
KJ
H02f
0.061
1.188
0.235
[-0.029, 0.174]
KS
H02g
0.114
2.515
0.012
[0.024, 0.205]
Note: KP: Student cohesiveness, SG: Teacher Suport, PL: Involvement, PS: Investigation, OT: Task Orientation, KJ:
Cooperation, KS: Equity
5. Conclusion
This study investigated the mediation effects of knowledge of cognition and regulation cognition
on the relationships between classroom climate and students’ mathematics achievement. The
findings indicated a significant indirect effect between component of classroom climate (i.e.,
student cohesiveness, task orientation, investigation and equity) and students’ mathematics
achievement through knowledge of cognition and regulation cognition. Based on the findings,
when students make good friendship with other students, help each other, do more investigation,
task oriented and their mathematics teacher behaves equally towards all students significantly
influence students’ knowledge of cognition and regulation cognition and mathematics
achievement. The result of this study will add value to existing literature on the relationship
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between perceived classroom climate on students’ achievement particularly on issue related to
learning outcomes such as knowledge of cognition and regulation cognition. The significant
mediating role played by knowledge of cognition and regulation cognition have drawn attention
to the need for a well-organized workshop for teachers to provide the support and learning tools
necessary to further develop metacognitive strategies. It is also suggested that schools should
endeavour to create a positive classroom climate which emphasize student cohesiveness, task
orientation, investigation and equity to support students’ knowledge of cognition and regulation
cognition in order to improve academic performance. Further investigations might be needed to
understand the nature of this relationship.
6. Acknowledgement
Part of this article was extracted from a doctoral thesis submitted to University Malaysia Sabah,
Kota Kinabalu, Sabah.
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THE RELATIONSHIP BETWEEN FINANCIAL LITERACY,
PERCEIVED USEFULNESS, AND PERCEIVED EASE OF USE
ON PAYLATER USAGE
Jeremy Mikael1 and Raden Aswin Rahadi2*
1 2 School of Business and Management, Bandung Institute of Technology, Bandung, INDONESIA
*Corresponding author: aswin.rahadi@sbm-itb.ac.id
Abstract: The mass adoption of paylater is a result of more accessibility and an easier
requirement to request consumer loans compared to credit cards. In addition, paylater allows
users to take credit or pay installments, which is useful for fulfilling needs. However, the ease and
usefulness provided by paylater may lead to potential problems related to excessive loan bills and
debt which damages the user’s credit score. Personal financial well-being may also be damaged
as paylater usage tends to trigger impulsive buying behavior. Therefore, improving financial
literacy to make a well-informed financial decision is essential. This research is aimed to identify
the relationship between financial literacy, perceived usefulness, and perceived ease of use on
paylater usage and how it further relates to impulsive buying behavior. Using quantitative
methods, the researcher studies a sample of 341 respondents. This research uses Pearson’s
Correlation Coefficient to identify the relationship between variables. The results show no
significant correlation between financial literacy and paylater usage. On the other hand, the result
indicates a significant positive correlation between perceived usefulness and paylater as well as
between perceived ease of use and paylater. There is also a significant positive correlation
between paylater usage and impulsive buying.
Keywords: financial literacy; perceived usefulness; perceived ease of use; paylater usage;
impulsive buying.
1. Introduction
Nowadays technological development and digital transformation is inevitable in almost every
aspect of our daily life as a result from the fourth industrial revolution. This also involves
traditional industry which undergo a vast change due to digital transformation with continuously
evolving technology. The rapid technological developments emerge as both businesses and
customers demand an easier and more efficient business processes that are made possible by the
existence of an online system and digitalization in a daily basis (Muljani & Ellitan, 2019).
Research conducted by Google, Temasek, & Bain shows mass adaptation of 4 digital services in
Indonesia with $44 billion gross merchandise value (GMV) and expected to grow 23% annually
until it reaches $123 billion in 2025. One of the biggest and fastest-growing digital industries is e-
commerce with more than 50% annual GMV growth in 2019-2020 and contributing 72% of the
total GMV of digital services mentioned before (Google et al., 2020). The vast growth of e-
commerce in Indonesia can be a catalyst for other industry, notably financial technology or known
as fintech.
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Fintech consists of many business models but the most common one when speaking of e-
commerce is digital wallet for payment. To attract more customer, many e-commerce platforms
adapt innovative features to provide more seamless and convenient business process to its
customer, two most recognized fintech products are digital payment alternatives which are digital
wallet and paylater (DailySocial.id, 2020). Research by J.P Morgan shows digital wallet usage
will continue to grow from 16% in 2019 to 22% of total e-commerce payment method in 2023
while cash payment declines (J.P. Morgan, 2021). Better than digital wallet, paylater has a decent
annual GMV growth rate of 27% from 2021 to 2028 (Research & Markets, 2021).
There is no denying that fintech give its user more accessibility to financial services, with paylater
being one of it. The main reason why users decide to use paylater instead of credit card in doing
e-commerce transaction is because of the accessibility followed by relatively easier requirement
to request consumer loan (Rumayya et al., 2020). Paylater provides its user a more seamless and
convenient transaction process. These eases of use are the reasons behind the mass adoption of
paylater in Indonesia.
Paylater is like credit card in term of giving its user to take credit or pay instalment, which lessen
the pain and can be considered as solution to fulfil their needs. Paylater does not involve with bank
as the creditor which means that consumers can still use this payment method even if they are not
financially prepared to take out a loan (Shahid & Razaq, 2017). Therefore, there is a perceived
usefulness aspect when speaking about paylater service.
Alongside with the significant growth of paylater, customers have to improve their financial
literacy to make effective financial decisions since informed financial decision have been proven
as a key factor in making effective financial judgement (Lusardi et al., 2017). Ease of access and
user-friendliness of a financial product is important for financial inclusion while at the same time
having an impact on the decisions made by those who have a low level of financial literacy (Panos
& Wilson, 2020).
Financial literacy is directly related to the ability to managing money (Laily, 2016). It means the
higher the financial literacy, the better its ability to manage money. This money management
includes allocating expenditure efficiently and evaluate if the usage of money is according to plan
or not. Beside money management, financial literacy also affect financial decision making which
involves how much money to consume, what to do with excessive money after the consumption,
and saving or investing decision (Widyawati, 2012). Thus, higher financial literacy indicates better
decision making regarding financial decision.
In contrary, lower financial literacy indicates worse financial decision making. Low level of
financial literacy may result in unwise financial decision since financial literacy can help people
in making financial decision that prioritize prudence (Yuesti et al., 2020). People with low
financial literacy are unable to assess and make informed decisions about their personal finance.
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2. Literature Review
Financial Literacy
Financial literacy is the knowledge of basic economic and financial concepts, as well as the ability
to use that knowledge and other financial skills to manage financial resources effectively for a
lifetime of financial well-being (Hung et al., 2009). Stolper & Walter (2017) defined as the ability
to use knowledge and skills to manage financial resources effectively for a lifetime of financial
well-being.
A more recent definition of financial literacy is provided by Organization for Economic
Cooperation and Development (OECD) which states financial literacy as the knowledge and
understanding of financial concepts and risks, and the skills, motivation, and confidence to apply
such knowledge and understanding in order to make effective decisions across a range of financial
contexts, to improve the financial well-being of individuals and society and to enable participation
in economic life (OECD, 2016). The definition provided by OECD has two parts. The first part
refers to the kind of thinking and behaviour while the second part refers to the purposes for
developing financial literacy. To be more specific about the scope of financial literacy, a matrix
based on OECD Core Competencies Framework is developed involving 4 main components of
financial literacy which are money & transactions, planning & managing finances, risk & reward,
and financial landscape (Otoritas Jasa Keuangan, 2015).
Paylater
Paylater is the latest digital payment methods in Indonesia which offers opportunity for consumers
to buy products or service and pay it later (Pratika et al., 2021). It has similar function with credit
card since the user can make a purchase to fulfil their needs or wants and pay it later on a designated
due date. Sari (2021) stated that paylater has advantages compared to credit card in term of easiness
to register since it doesn’t require as many requisitions as credit card.
Perceived Usefulness
Davis defined perceived usefulness as the extent to which a person believes that using a specific
system or technology would improve his or her work performance (Davis, 1989). It is based on
the word useful that depicts the capability of being use advantageously. Based on these statements,
it can be concluded that perceived usefulness indicates a person’s belief in using a particular
technology to be beneficial for him or her. The perceived usefulness can be referred to both direct
and indirect benefit (Satoto et al., 2021). Direct benefits means that the benefits that customer
enjoy is tangible while indirect benefits are less tangible and more difficult to be assessed.
Perceived Ease of Use
Perceived ease of use indicates a person’s belief in using a specific product or technology to lessen
the required effort or as a belief that a technological system is available be used straightforwardly.
It derived from the definition of the word ‘ease’ which means freedom from difficulty or great
effort. Thus, a technology or product that is perceived to be easier to use or require less effort is
more likely to be accepted. Speaking of effort, it can be defined as a finite resource that are
necessary to be allocated for a certain activity (Davis, 1989).
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Impulsive Buying Behavior
Impulsive buying is a tendency that happen to a consumer to buy a product spontaneously without
careful consideration. Impulsive buying is a sudden urge to buy a product which never be planned
before or buy a product with no initial intention to bought at the first place (Sari, 2021). Impulsive
buying is the urge to engage in unplanned purchasing behavior, as opposed to planned purchasing
behavior, which is characterized by quick and instantaneous decision making (Lee & Kacen,
2002).
2.1 Problem Statement
The extensive development of financial technologies that is revolutionising the financial services
may damage financial well-being by triggering impulsive buying behavior when dealing with
financial technologies and platforms such as paylater. A high probability of impulse buying
happened to paylater users, or in other words, paylater usage positively related with impulse
buying behavior. Research also provides information about paylater feature as an impulsive buying
drive in e-commerce. It states that paylater has a direct significant effect when it comes to
impulsive buying due to its easiness, speediness, and relatively low interest rates that may
encourage customers to buy impulsively.
Laily (2016) states financial literacy includes knowledge of allocating expenditure efficiently and
evaluate if the usage of money is according to plan or not. Since impulsive buying behavior
considered as unplanned expense without careful consideration, it is closely related with low level
of financial literacy. In conclusion, impulsive buying behavior is considered unproper financial
decision and can affect financial well-being negatively without a proper financial literacy.
With vast paylater adoption, it is possible that people with low financial literacy is already using
the product. Several financial related risks may be expected such as excessive loan bill and debts,
unclear information about product, loan requirements, and additional fee, failure to pay loan and
affecting overall credit scoring (Rumayya et al., 2020). When customer fail to pay their loan within
the given period, it will affect the merchant financial performance similar as non-performing loan
in bank credit.
Figure 1: Research Framework
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3. Method
3.1 Research Method
This research collects primary data by distributing online questionnaire to 341 respondents which
use 24 different indicators (see Appendix 1) with 5 Likert-scale options to measure each variable.
This research uses one method of non-probability sampling which is purposive sampling
technique. Purposive sampling is based on the researcher’s judgement of who will gives the best
information to meet the research objective.
Before distributing the online questionnaire to bigger audiences to achieve the desired sampling
size, the researcher conducts a pilot study or pilot test to 30 samples. The ideal number of samples
for pilot study is 10% of total sample. Pilot study is necessary to minimize or eliminate problem
when answering the questionnaire and recording the data (Saunders et al., 2012). Pilot study is a
small-scale research critical in refining the questions contained and reducing the risk of fatal flaw
on the full study, or in other words pilot test serve as a fine tuner for the study (Zikmund et al.,
2012).
The data gathered from these respondents is tested using validity and reliability test to figure out
is the questionnaire already appropriate or not and to indicate potential flaw on the questionnaire.
Validity refers to the accuracy of the questionnaire to measure the intended variable while
reliability indicates whether the questionnaire gives the same results if applied repeatedly to the
same object each time or measure the precision of the questionnaire (Babbie, 2014). Validity test
use Pearson’s Correlation method to analyze the correlation between each indicators with the
measured variable (Ahrens et al., 2020). Reliability test use Cronbach’s alpha and the acceptable
value must be at least 0.6.
Since the research objective is to find the relationship between financial literacy, perceived ease
of use, and perceived usefulness on paylater usage as well as impulsive buying behavior when
using paylater, a clear characteristic of respondent is needed. These characteristics are Indonesia
citizen between 18-25 years old to fit the young adult category of OECD/INFE framework and
have used paylater at least once.
Researcher decided to use Pearson’s Correlation Coefficient method to analyze the relationship
between variables. Pearson’s Correlation Coefficient is used to measure a monotonic relationship
between 2 variable which either the value of one variable increase with the other variable, known
as positive correlation, or the value of one variable increase while the other decreases, known as
negative correlation (Schober & Schwarte, 2018).
This method is chosen since researcher wants identify the relationship of each independent variable
with a dependent variable, which can be clearly identified with a correlation commonly
abbreviated as “r”, which measured in a scale of -1 to 1 (Levine et al., 2016). One important note
as stated by Zikmund et al. (2012) is Pearson’s Correlation Coefficient doesn’t imply a causation
effect between variables, only the relationship between them.
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Method to test hypothesis used in this research is t test for correlation coefficient. As stated in
Zikmund et al. (2012), correlation between variables is statistically significant if at least one of
these conditions is met. The first condition is if the tSTAT is more than the t from the critical value
table with a degree of freedom of n-2 and a level of significance (α) of 0.05. The second condition
is if the p-value is less than 0.05.
3.3.1 Validity and Reliability
To make sure the questionnaire accurately measures the desired variables, a pilot test involving
validity and reliability test is conducted with a sample size of 30. The question is valid if the r
value is higher than the r value from the table (r = 0.304) and considered reliable if the Cronbach’s
alpha is higher than 0.6. All indicators used to measure variables are valid since the r is more than
0.304 (see Appendix 2). In addition, all variables have more than 0.6 Cronbach’s alpha (see
Appendix 3). Based on the pilot test results, all questions used in the questionnaire are valid and
reliable according to the chosen methods. Thus, there will not be any question removed or revised
and the list of question can be concluded as accurate and precise to measure all variables needed
(Babbie, 2014).
4. Results and Discussion
4.1 Pearson’s Correlation Coefficient Result
To identify the relationship between each independent variable with the dependent variable,
Pearson’s Correlation Coefficient is used to indicates a linear relationship between an independent
variable and a dependent variable without any implication of determining causation effect between
variables. A correlation exists if the p-value is less than 0.05. The first three correlation are between
3 independent variables which are financial literacy, perceived usefulness, and perceived ease of
use with one dependent variable which is paylater usage. The fourth correlation is between paylater
usage and impulsive buying behavior where paylater usage acts as the independent variable and
impulsive buying behavior as the dependent variable.
The interpretation of correlation coefficient follows Evans description where there are 5 categories
of correlation. The first one is very weak correlation with coefficients between 0.00 and 0.19. The
second one is weak correlation with coefficients between 0.20 and 0.39. The third one is moderate
correlation with coefficients between 0.40 and 0.59. The fourth one is strong correlation with
coefficients between 0.60 and 0.79. The last category is very strong correlation with more than.79
correlation or between 0.80 and 1.0 (Evans, 1996).
Based on result (see Table 1), there isn’t any significant correlation between financial literacy (FL)
and paylater usage (PL) since the p-value is more than 0.05. There are correlations between
perceived usefulness (PU) and PL as well as between perceived ease of use (PE) and PL since the
p-value is less than 0.05.
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Table 1: Pearson’s Correlation Analysis Results
Variables
Correlation (r)
p-value
FL & PL
0.055
0.310
PU & PL
0.416**
0.000
PE & PL
0.119*
0.028
PL & IB
0.311**
0.000
* Correlation is significant at the 0.05 level (2-tailed)
**Correlation is significant at the 0.001 level (2-tailed)
Based on Evans (1996) interpretation of correlation value, PU and PL has a moderate positive
correlation since the r value is 0.416. On the other hand, the correlation between PE and PL
indicates a very weak positive correlation since the r value is only 0.119. It can be concluded that
PU has the most correlation with PL.
Besides analyzing the relationship between those 3 independent variables and paylater usage as
the dependent variable, this research also aims to study the relationship between paylater usage as
an independent variable and impulsive buying behavior as the dependent variable. Based on p-
value, it can be concluded that there is a significant correlation between paylater usage and
impulsive buying behavior. Since the Pearson’s correlation coefficient of 0.311 is between 0.20
and 0.39, the relationship is considered a weak positive correlation.
As a reminder, if a significant correlation is identified, it means that a linear relationship between
independent and dependent variable is present. It only indicates the increase of one variable as the
other one increase and vice versa. Correlation can’t be used to identify further causation effect or
influence of the independent variable to the dependent variable (Levine et al., 2016).
4.2 Hypothesis Testing with t-Test
The Pearson’s Correlation Coefficients calculated in the previous part are used to determine
whether there is a statistically significant linear relationship between each independent variable
and the dependent variable. The Pearson’s Correlation Coefficient for the population is symbolized
by ρ. The null and alternative hypothesis for this test according to Levine et al. (2016) are no
correlation and correlation exist respectively.
The null hypothesis will be rejected if at least one of these conditions is met. The first condition is
if the tSTAT is more than the t from the critical value table with a degree of freedom of n-2 and a
level of significance (α) of 0.05. The second condition is if the p-value is less than 0.05. This study
uses 341 sample, so the degree of freedom is 339. With 0.05 level of significance, the
corresponding t value from the table is 1.6484. The tSTAT is calculated using a formula p where r
indicates the correlation coefficient and n indicates the number of samples Levine et al. (2016):
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If the calculated tSTAT is more than 1.6484, the null hypothesis will be rejected. The result of tSTAT
calculations for the correlation and the p-value of each correlation are as follows (see Table 2).
There are 4 main points to interpret the results of the hypothesis testing using t test for the
Correlation Coefficient. There isn’t enough evidence to conclude that there is a significant
correlation between financial literacy (FL) and paylater usage (PL). There is enough evidence to
conclude that there is a significant correlation between perceived usefulness (PU) and paylater
usage (PL). There is enough evidence to conclude that there is a significant correlation between
perceived ease of use (PE) and paylater usage (PL). There is enough evidence to conclude that
there is a significant correlation between paylater usage (PL) and impulsive buying behavior (IB).
Table 2: Hypothesis Testing Result
Relationship
Correlation
tSTAT
p-value
H0 Status
FL → PL
0.055
1.0142
0.311
Do not reject H0
PU → PL
0.416
8.4228
0.000
Reject H0
PE → PL
0.119
2.2067
0.028
Reject H0
PL → IB
0.311
6.0249
0.000
Reject H0
4.2 Discussion
The results show that there isn’t any significant relationship between financial literacy and paylater
usage. It means there is no monotonic relationship between 2 variable which either the value of
one variable increase with the other variable or decrease. It implies that people who have low
financial literacy is still likely to have similar paylater usage as people who have high literacy,
resulting in no apparent linear relationship.
Hamid & Loke (2021) states about the impact of financial literacy on credit card usage specifically
about the repayment pattern. Since paylater is like credit card, relationship between financial
literacy and paylater may present in the repayment process or pattern. Chernovita (2020) also
emphasize on the temptation to use paylater, not the paylater usage itself. Although Chernovita
(2020) stated that there is a positive relationship between financial literacy and carefulness in using
paylater, this research proves that there isn’t any relationship in the general use, specifically
frequent or routine use of paylater.
The results show that there is a significant positive correlation between perceived usefulness and
paylater usage. The correlation coefficient is also the highest among 2 other independent variables.
The presence of paylater gives its user opportunity to fulfil their needs and/or wants in the absence
of cash or credit card, or even when the funds are insufficient. The usefulness of paylater is like
credit card as it provides the same benefits, mainly for urgent need (Rumayya et al., 2020; Shahid
& Razaq, 2017). This result also in accordance with several studies about the relationship between
both variables (Kurniawan et al., 2021; Rachmawati & Astuti, 2020).
The result shows that there is a significant positive correlation between perceived ease of use and
paylater usage. Although the correlation coefficient is not as high as the correlation between
perceived usefulness and paylater usage, it is still statistically significant. The result is in
accordance with (Rumayya et al., 2020) that suggests the usage of paylater is driven by the ease
of access and relatively easy to fulfil requirements to get credit. The result also inline with some
studies which specify the relationship between the ease of use of paylater with user’s intention to
use paylater (Harun & Ayu Salmah, 2020; Putri & Iriani, 2020; Rachmawati & Astuti, 2020).
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Thus, the ease of using paylater, finding information about how to use it, as well as do repayment
process in paylater have an impact on the frequent use of paylater.
The result shows a significant positive correlation between paylater usage and impulsive buying
behavior. As explained in Sari (2021), paylater usage is considered one driver of impulsive buying
since there is a high probability of impulse buying happened to paylater users. Hilmi & Pratika
(2021) also shows similar result about the relationship between the use of paylater with impulsive
buying behavior. The easiness, speediness, and relatively low interest offered by paylater has an
impact on impulsive buying.
5. Conclusion
The first objective to identify the relationship between financial literacy and paylater usage is
already answered since the result fails to identify the relationship between these variables by using
correlation coefficient. It can be concluded that there is no relationship between financial literacy
and paylater usage. The frequent use of paylater of people with high financial literacy and low
financial literacy may have a little different, resulting in no existing correlation. The researcher
suggests for further research to identify the behavior use of paylater between two groups, high
financial literacy, and low financial literacy. Benchmarking to product like paylater, credit card, a
relationship between financial literacy and paylater usage may exist on the repayment pattern.
The second objective to identify the relationship between perceived usefulness and paylater usage
is answered by the existence of significant correlation between these variables. It is proven that
the usefulness of paylater, especially when cash is insufficient, drives the usage of paylater. The
benefits of paylater that is like credit card who provides possibilities to do instalment to fulfil needs
or want impact the usage of paylater. The results shows that respondents who feel the usefulness
of paylater tends to use paylater more frequently or routinely and more likely to use it on the future.
Suggestion for further research is to differentiate the perceived usefulness of paylater between two
different groups, which are high financial literacy and low financial literacy.
The third objective to identify the relationship between perceived ease of use and paylater usage
is answered by the existence of significant correlation between these variables. The correlation is
not as strong as perceived usefulness but still there is a relationship between the perceived ease of
use and paylater usage. People who feel the ease when using paylater will use it more frequently
rather than using other payment methods. Several studies also prove these results which emphasize
the relationship between the perceived ease of use and paylater usage. The relatively easy process
to apply and register for paylater than credit card is also a driver when people decide to use
paylater. Furthermore, the availability of information regarding how to use paylater is a factor that
supports the usage of paylater.
The last objective of this research is to identify the relationship between paylater usage and
impulsive buying behavior. The relationship is identified by the positive correlation between these
variables, indicating a high probability of impulsive buying among paylater users. Previous studies
also prove this relationship where paylater usage is considered as a driver for impulsive buying.
There are several supporting factors such as the easiness, speediness, and relatively low interest
offered by paylater.
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As mentioned above, there are some inputs for further research involving the variables included
in this research. The first one is to identify the usage behavior of people with high financial literacy
and low financial literacy when using paylater, especially the repayment process. The second one
is to identify the different of perceived usefulness between the same group of people, high versus
low financial literacy. There may be a difference of usefulness or benefits perceived by these 2
different groups.
Besides recommendation for further research, findings from this research can be use as
fundamentals of recommendation for businesses especially e-commerce platforms and paylater
services providers. Since there is a significant relationship between perceived usefulness and
perceived ease of use in using paylater, e-commerce platforms and paylater providers should
consider to gives a clear information about the benefits offered by using paylater, not only to buy
something now and pay it later but to an extent that someone can manage their cash flow better by
using paylater or even buy urgent needs when cash is sufficient. Regarding the ease of use, e-
commerce platform and paylater provider must ensure the customer journey when using paylater
is full of easiness and convenience without any complicated process that may hinder the usage of
paylater.
Furthermore, this research also identifies the relationship between paylater usage and impulsive
buying behavior. This finding may be helpful for financial education institution to raise awareness
of impulsive buying among paylater users. There are many downsides of impulsive buying when
using paylater, such as failed to pay debt that may affect user’s credit scoring. For current or
potential user, the result is also helpful for them to be more self-conscious when using paylater
especially in e-commerce, so they won’t buy impulsively.
6. Acknowledgement
The author would like to say thank you to all stakeholders that involved in this research. Without
their support, help, and advice from them, this research will not be completed as it is. The author
also express gratitude to and acknowledge the support of Dr. Raden Aswin Rahadi for the guidance
given in building this paper.
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Appendices
Appendix 1 – Questionnaire Items
Variable
Code
Indicator
Financial
Literacy
FL1
I make a daily budget allocation plan
FL2
I have a financial goal(s)
FL3
I track income & expense routinely
FL4
I allocate some money for savings and/or investment
FL5
Before using a financial product/service, I find information about the desired
product/service
FL6
I compare several financial product/services before making a decision
FL7
I’m willing to take risk when investing
FL8
I put a lot of concern for my financial needs
Perceived
Usefulness
PU1
Paylater makes payment process a lot easier
PU2
Using paylater during online shopping is timesaving
PU3
Using paylater can help me in managing finance (income & expense)
PU4
Overall, paylater is useful in your daily life
Perceived
Ease of Use
PE1
Paylater is easy to use as a payment method
PE2
I can easily learn how to use paylater
PE3
Information about how to use paylater is easy to obtain
PE4
Paylater repayment process is easy to be done
Paylater
Usage
PL1
I routinely use paylater as a payment method
PL2
Paylater can be considered as an alternative payment method
PL3
I have a desire to use paylater regularly in the future
PL4
I’m willing to recommend my close friend to use paylater
Impulsive
Buying
Behavior
IB1
When using paylater, I often buy product without careful consideration
IB2
When using paylater, I easily get tempted to buy new product
IB3
When using paylater, there is a sudden urge to purchase something impulsively
IB4
I feel regret after purchasing something using paylater
Appendix 2 – Validity Test
Code
r value
Category
Code
r value
Category
FL1
0.578
Valid
PE1
0.748
Valid
FL2
0.647
Valid
PE2
0.837
Valid
FL3
0.656
Valid
PE3
0.724
Valid
FL4
0.686
Valid
PE4
0.472
Valid
FL5
0.586
Valid
PL1
0.894
Valid
FL6
0.482
Valid
PL2
0.687
Valid
FL7
0.401
Valid
PL3
0.818
Valid
FL8
0.459
Valid
PL4
0.916
Valid
PU1
0.731
Valid
IB1
0.835
Valid
PU2
0.701
Valid
IB2
0.963
Valid
PU3
0.789
Valid
IB3
0.939
Valid
PU4
0.850
Valid
IB4
0.788
Valid
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Appendix 3 – Reliability Test
Variables
Cronbach’s alpha
Category
FL
0.680
Reliable
PU
0.762
Reliable
PE
0.632
Reliable
PL
0.850
Reliable
IB
0.904
Reliable
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THE RELATIONSHIP OF NONMAINSTREAM BRAND
AMBASSADOR QUALITIES TOWARDS PURCHASE
DECISION OF MS GLOW FOR MEN
Matthew Alan1* and Fitri Aprilianty2
1 2 School of Business and Management, Bandung Institute of Technology, Bandung, INDONESIA
*Corresponding author: matthew_alan@sbm-itb.ac.id
Abstract: Rising male cosmetic customers create a great potential for skincare companies.
However, as a result of rising competition, the cosmetics and personal care industries are
becoming more aggressively competitive. Beauty brands must be inventive to attract customers
and differentiate themselves. In Indonesia, cosmetics industry promotions often involve brand
ambassadors. The issue is that many people don't feel brand ambassadors with a handsome and
cool image are enough to generate trust because they assume brand ambassadors are handsome
or pretty from the start, not from the skincare they sponsored. In the midst of competition, MS
Glow For Men made a breakthrough in August 2021. They launched a new campaign with brand
ambassadors that features popular yet anti-mainstream brand ambassadors. This campaign tries
to get consumers to purchase their products as a result of their new ambassador. However, MS
Glow For Men’s unique brand ambassadors has not been tested for their effectiveness in
increasing customers’ purchase decision. It can even be said that their new brand ambassador
can be said to be quite risky. This study aims to explore the factors that make “nonmainstream”
brand ambassadors attractive for a local man skin care brand and assess the brand ambassador's
influence on customers’ purchase decisions for MS Glow For Men products. Two approaches are
used in this study; a qualitative approach with semi-structured interviews was conducted to 5
respondents, and 211 respondents performed a quantitative approach with structured
questionnaire. Both approaches were conducted to people who had bought MS Glow For Men’s
after #semuajugabisa campaign started in August 2021. This research uses manual coding,
descriptive statistics, and PLS-SEM for data analysis in generating the data. The results indicate
that MS Glow For Men “nonmainstream” brand ambassador does not affect customers’ purchase
decision towards MS Glow For Men products, it affects customers’ purchase intention through a
number of variable. It is found that brand ambassador’s credibility, attraction, and power have a
significant influence towards purchase intention through brand awareness, brand image, and
brand trust. This study aims to enhance marketer understanding of how companies could improve
purchase decision through brand ambassador strategy.
Keywords: MS Glow For Men, Brand Ambassador, Brand Awareness, Brand Image, Brand Trust,
Purchase Intention, Purchase Decision.
1. Introduction
In Indonesia, beauty and personal care markets have experienced continuous growth due to high
demand. Indonesia's annual revenue from skincare has been growing continuously since 2012.
Indonesia's growth in the skincare industry, as measured by annual revenue, is estimated to reach
approximately US$1.5 million in 2020, a 1.65 percent increase over 2019. According to Antara
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(2021), Cosmetics were also contributed 1.92 percent of Indonesia's gross domestic product in
2020. Male product lines are increasing faster than female product lines in Indonesia's cosmetic
industry, and male skincare products will continue to gain popularity as awareness of the
importance of male skincare rises.
While the beauty market in Indonesia is promising, the players in this industry are not small. The
cosmetics and personal care industries are becoming increasingly competitive and fierce. To
differentiate themselves, beauty brands must think creatively about how to promote their products
and attract customers.
In the midst of competition, MS Glow For Men made a breakthrough in August 2021. They
launched a new campaign with brand ambassadors that features popular yet nonmainstream brand
ambassadors. According to Oxford Languages (2022), mainstream has a definition of the ideas,
attitudes, or activities that are regarded as normal or conventional. Meanwhile according to
Merriam Webster (2022), nonmainstream has a definition of not belonging to the mainstream.
MS Glow For Men has recently adopted the "real people, real skin" approach by hiring a "unique"
brand ambassador who is deemed nonmainstream, rather than the brand ambassador that the
majority of beauty companies use who adheres to the beauty standard. Unlike the rest, this local
skincare brand chose two comedians, Babe Cabita and Marshel Widianto, as its new brand
ambassadors.
By communicating the #semuajugabisa campaign through their new brand ambassador, MS Glow
For Men's decision might grab the attention of men and “ordinary people" who believe they do not
need skincare or that men’s skin can't be enhanced to be cleaner, healthier, and glowing. This
campaign tries to get consumers to purchase their products as a result of their new ambassador.
For several days, this decision was in the spotlight, and it even became a trending topic on Twitter
and a spotlight in several media outlets such as suara.com, sindonews.com, and liputan6.com. The
success of Babe Cabita and Marshel Widianto, on the other hand, did not come easily. Being a
beauty product brand ambassador has resulted in a surge in netizens on Instagram and Twitter.
There are many people who gives bad opinions and insults at the same time.
It did not, however, diminish Babe Cabita's and Marshel Widianto's confidence. Numerous people
also encourage them to become brand ambassadors. According to some netizens, the appearance
of Babe Cabita and Marshel Widianto can help dispel the myth that beauty and handsomeness
must be white and slim. Even if some beauty or care products feature models with varying
appearances, this demonstrates that these goods are conscious of the real diversity around them.
According to Kompas.com (2021), this strategy appears to have a positive reaction, as many people
have stated that they use "real" people to convince customers that their skincare is impactful. An
article in Liputan6.com (2021) stated that they promote the advertisements in New York Times
Square and receive a favorable review from a foreigner.
An earlier study from Sari Dewi et al. (2020) discovered that brand ambassadors in the beauty
industry are proven to influence purchase decisions. The higher the positive perception of the
consumer toward brand ambassador, the higher the purchase decision. Brand ambassadors are one
of the most important factors in determining customer buying interest (Soniya and R, 2018). Luh
(2019) claims that a brand has a substantial impact on consumer purchasing decisions, while
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Umunnakwe (2018) demonstrates that sponsored products have a beneficial impact on customers'
desire to buy. Additionally, having a celebrity as a brand endorser has a tremendous impact on
consumer enthusiasm in spending (Djafarova and Trofimenko, 2018; Vouk, 2005).
2. Literature Review
Brand Ambassador
A brand ambassador is someone who has been entrusted with the authority to market a product by
exploiting their glory and personal accomplishments (Muhammad, 2014). Meanwhile, Royan
(2005) defines a brand ambassador as someone who advocates for a product and is willing to speak
about it in order to influence the product's seller. A brand ambassador is essentially anyone who
is enthusiastic about the brand they are representing and is committed to reaching the target
audience.
According to Rossiter and Percy (2005), brand ambassadors display a variety of qualities that can
be measured. VisCAP is a term that refers to the following characteristics:
Visibility
A major characteristic of celebrity communicators, is likely to improve brand recognition –
particularly brand recall – although the marketer must be careful not to obfuscate the brand's
presentation. (Rossiter & Percy, 1985; Yoon & Kim, 2015)
Credibility
A presenter can be perceived as an expert without being objective, and vice versa. Expertise is
relevant to informational communication models, both low and high involvement because
perceived expertise enhances attention to and learning of (low involvement) or acceptance of (high
involvement) information presented in support of brand attitude. Objectivity, on the other hand, is
mainly relevant to the high involvement/informational model. (Rossiter & Percy, 1985; Yoon &
Kim, 2015)
Attraction
The attraction the presenter holds for the target audience is of primary importance for the
transformational models, where the advertising content most offers positive stimuli to enhance the
positive motivation. (Rossiter & Percy, 1985; Yoon & Kim, 2015)
Power
In addition to being renowned and attractive, brand ambassadors must be idolized by the audience
in order to have purchasing power. At this point, the target audience will be strongly encouraged
to make a purchase. (Rossiter & Percy, 1985; Yoon & Kim, 2015)
Brand Awareness
Aaker (1991) defines brand awareness as the ability of prospective purchasers to recognize or
recall a brand as a member of a certain product category (Karman, 2015). According to some
sources, brand awareness is the fundamental and primary constraint in any brand-related search,
and it directly influences customer buying decisions (Dabbous & 19 Barakat, 2020).
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Brand Image
Similar to the definition of brand image by Hofstede et al. (2007), which describes brand image as
a set of beliefs held about a specific brand and subjective perceptions of associations, brand image
is defined as perceptions about a brand as reflected by the brand associations held in consumer
memory or strong, favorable, and unique brand associations in memory (Keller, 2003).
Brand Trust
According to Vivek, Beatty, and Morgan (2012), consumer (or potential customer) participation
in an online campaign may develop trust by demonstrating that the firm genuinely cares about
them and has their best interests at heart. In general, trust is an individual's generalized expectation
that the word of another may be depended upon (Rotter, 1967).
Purchase Intention
Kim, Ferrin, and Rao (2008) revealed that a consumer's intention to purchase has a favorable effect
on the purchase decision, which is corroborated by Ariff (2014), who discovered that the
purchasing behavior of a product is highly influenced by the consumer's intention to purchase that
product
Purchase Decision
Purchase decision is a consumer activity including the evaluation of two or more brand options in
order to select the most favored brand (Karimi, Papamichail, and Holland, 2015). Kotler and
Armstrong (2014) defined purchase decision as the stage of a buyer's decision-making process in
which the individual chooses to acquire the product under consideration
2.1 Problem Statement
The cosmetics and personal care industries are becoming increasingly competitive and fierce. This
is seen by the variety of cosmetics available, both domestically and internationally. According to
the government, Indonesia has 797 large cosmetic industries and small and medium-sized
enterprises (IKM).
Many netizens do not believe that brand ambassadors with a pretty, handsome, attractive, and cool
image as a marketing strategy used by beauty brands are enough to build trust because they believe
that if the brand ambassadors are handsome or pretty, they are handsome or pretty from the start,
not from the skincare they endorsed, and that handsome men will always be handsome, and so do
pretty girls. Wang and Hariandja (2016) and Rutha et al. (2019) similarly argue that brand
ambassadors have very little influence on consumers' purchasing decisions. With this phenomenon
in mind, is it effective that MS Glow For Men can drive purchase intentions and customer
purchasing decisions by using nonmainstream men as brand ambassadors? As a result, this
research is essential to be conducted.
Due to the increased competition in the market, the differentiation of similar products through
branding is a critical competitive component for a firm in order to shape consumers' perspectives
and make the products more desirable.
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By communicating the #semuajugabisa campaign through their new brand ambassador, MS Glow
For Men's decision might grab the attention of men and “ordinary people" who believe they do not
need skincare or that men’s skin can't be enhanced to be cleaner, healthier, and glowing. This
campaign tries to get consumers to purchase their products as a result of their new ambassador.
However, the impact of MS Glow For Men's unique brand ambassadors in influencing customer
purchasing decisions has not been evaluated. Even so, one could argue that their new brand
ambassador is rather questionable. This is based on research by (Nofiawaty et al., 2020; Sari Dewi
et al., 2020; Nurhasanah, 2017) concerning the risk of brand ambassador strategy, as it can
influence purchasing decisions. According to the findings of Fitriahningsih et al (2020), brand
ambassadors and brand image significantly influence purchase decisions. The effect of the brand
ambassador and brand image on purchase decisions is also confirmed by Fawwaz and Indrawati
(2018) and Ramadhanti and Usman (2021). Furthermore, Wang and Hariandja (2016) also stated
that brand ambassadors positively influence the company’s brand image, and the use of brand
ambassadors as a marketing strategy should be increased.
Many studies have found the relationship between brand ambassadors and purchase decisions is
positive and significant. But in MS Glow For Men’s case, it is different because the brand
ambassadors that they used are nonmainstream. So, is it effective to use MS Glow For Men's
nonmainstream brand ambassador to influence customers’ purchase decisions? Therefore, this
study will research how the usage of the “nonmainstream” ambassador influences customers’
purchase decisions toward MS Glow For Men products. To evaluate the brand ambassadors, this
study will use the VisCAP model that consists of visibility, capability, attractiveness, and power
(Rossiter & Percy, 1985; Yoon & Kim, 2015).
2.2 Hypothesis Development
Figure 3.1 depicts the suggested paradigm for this research after considering the prior relevant
studies. The variables and framework are developed and merged from several research on such
material, the author provides the proposed model for the conceptual framework of this research.
Figure 3.1: Conceptual Framework
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Hypotheses
H1: Brand ambassador has a significant influence on brand awareness
H2: Brand ambassador has a significant influence on purchase decision
H3: Brand ambassador has a significant influence on purchase intention
H4: Brand ambassador has a significant influence on brand image
H5: Brand awareness has a significant influence on brand image
H6: Brand image has a significant influence on purcase intention
H7: Brand image has a significant influence on brand trust
H8: Brand image has a significant influence on purchase decision
H9: Brand trust has a significat influence on purchase intention
H10: Purchase intention has a significant influence on purchase decision
3. Method
There are two fundamental techniques to data collection: the qualitative approach and the
quantitative approach. Both methodologies are used to collect data in this study since the
quantitative research method is used to investigate the factors that make “Nonmainstream Men”
brand ambassadors attractive for a local man skin care brand, while qualitative research approach
helps the researcher to know the influence of nonmainstream men brand ambassadors towards
purchase decision of MS Glow For Men.
3.1 Materials
In the initial stage of study, the author identified the problem in order to observe and narrow the
study topic and resulting a problem identification. Next, the researcher begins the justification
process by locating relevant literature. After a review of the relevant literature, this study employed
qualitative and quantitative research to test hypotheses. The author conducted qualitative research
as a preliminary research to observe, explore, and understand more about the problem. Other that
than, the author using a quantitative approach, the author will collect numerical data, analyse the
data using a mathematical statistical technique, and evaluate hypotheses. The author uses surveys
in the form of questionnaires to collect data for the quantitative method.
3.1.1 Population and Sample
The population of this research includes people in Indonesia from all age who have at least
purchase MS Glow For Men products after #semuajugabisa campaign started in August 2021. The
smallest sample size employed for a marketing study would be 200 samples, according to
(Malhotra N, 2010). Hence, this research requires 200 or more respondents. Before completing the
survey's questionnaire, participants must fulfill all prerequisites. For the interview, the author
asked 5 people who use local man skincare brand.
3.1.2 Procedure
The variables involved in this study are an independent variable, a moderate variable, and a
dependent variable. In this study, the independent variables are Brand Ambassador’s Visibility,
Credibility, Attraction, Power, while the moderate variable is Brand Awareness, Brand Image,
Brand Trust, Purchase Intention last the dependent variable is Purchase Decision.
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3.2 Measurement
This survey uses primary data that collected using surveys and uses Google Forms as a tool to
collect all the information about respondents' data. In this research, Likert scale 1-5 will be used
for collecting the information. Researchers used a Likert scale of 1 to 5 ranging from 1 = very
disagreeable to 5 = very agreeable. The questionnaire element uses Indonesian because the
investigator distributed the questionnaire to respondents who use Indonesian as their primary
language. The structured questionnaire was developed by the previous literature review consist of
3 section (Socio-Demographic, Behavioral, and Close-Ended Question)
3.3 Data Analysis
Partial Least Square (PLS) was used to identify casual modelling in the conceptual framework.
The researcher utilized SmartPLS to calculate the association between all variables in this study.
Figure 3.2: PLS
3.3.1 Validity and Reliability
3.3.1.1 Reliability Indicator
The procedure that is commonly referred to as the internal consistency making use of measures of
composite dependability was utilized. In order for the results of the composite reliability test to be
approved, they need to be at least 0.7 or higher (Wong, 2013).
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Table 3.1: Internal Consistency Reliability
According to the findings of this study's composite reliability, after removing one variable that is
not reliable, every variable has a value greater than 0.7, which indicates that every variable are
reliable.
3.3.1.2 Convergent Validity
The Convergent Validities are obtained from the observations of each variable's Average Variance
Extracted (AVE), with valid AVE values being greater than 0.5. (Malhotra et al., 2016). All
estimated AVE values in this ressearch are more than 0.5, suggesting that all variables in this
research are reliable.
Table 3.2: Convergent Validity
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3.3.1.3 Discriminant Validity
For discriminant validity, the AVE square root of each latent variable must be larger than the
correlation between latent variables (Wong, 2013). The result indicates that the square root values
of all variables AVE are greater than the correlation values in both the row and column of latent
variables. In consequence, all variables pass the discriminant validity test.
Table 3.3: Discriminant Validity
AT
BA
BI
BT
CR
PW
PD
PI
VI
AT
0.861
BA
0.495
0.794
BI
0.449
0.642
0.853
BT
0.509
0.660
0.616
0.800
CR
0.376
0.430
0.364
0.405
0.864
PW
0.511
0.469
0.473
0.436
0.346
0.897
PD
0.261
0.186
0.140
0.203
0.297
0.163
0.788
PI
-0.024
-0.129
-0.088
-0.167
-0.045
0.049
-0.083
0.734
VI
0.526
0.405
0.348
0.376
0.347
0.467
0.225
-0.129
0.871
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3.3.1.4 Collinearity Test
The Variance Inflation Factor (VIF), which is calculated as "1/Tolerance," is applied with a
recommended value of 5 or below to eliminate collinearity issues. All projected VIF values for all
indicators met the previously established preferred criterion. Therefore, it is reasonable to conclude
that there are no issues with multicollinearity among the independent variables.
Table 3.4: Discriminant Validity
VIF
VI1
1.365
VI2
1.365
CR1
1.322
CR2
1.322
AT1
1.304
AT2
1.304
PW1
1.592
PW2
1.592
BA1
1.543
BA2
1.715
BA3
1.233
BI1
1.735
BI2
2.318
BI3
1.743
BT1
1.525
BT2
1.597
BT3
1.285
PI1
1.285
PI2
1.589
PI3
1.299
PD1
1.314
PD2
1.758
PD3
1.425
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3.3.1.5 Hypothesis Testing
Table 3.5: Hypothesis Testing
Hypotheses
Structural Path
T Statistics
(|O/STDEV|)
P values
Result
H1a
Visibility -> Brand Awareness
1.218
0.224
Rejected
H1b
Credibility -> Brand Awareness
3.567
0.000
Accepted
H1c
Attraction -> Brand Awareness
2.974
0.003
Accepted
H1d
Power -> Brand Awareness
2.701
0.007
Accepted
H2a
Visibility -> Purchase Decision
0.685
0.494
Rejected
H2b
Credibility -> Purchase Decision
2.992
0.003
Accepted
H2c
Attraction -> Purchase Decision
1.879
0.061
Rejected
H2d
Power -> Purchase Decision
0.080
0.936
Rejected
H3a
Visibility -> Purchase Intention
2.233
0.026
Accepted
H3b
Credibility -> Purchase Intention
0.480
0.631
Rejected
H3c
Attraction -> Purchase Intention
0.731
0.465
Rejected
H3d
Power -> Purchase Intention
2.358
0.019
Accepted
H4a
Visibility -> Brand Image
0.040
0.968
Rejected
H4b
Credibility -> Brand Image
0.814
0.416
Rejected
H4c
Attraction -> Brand Image
1.324
0.186
Rejected
H4d
Power -> Brand Image
2.361
0.019
Accepted
H5
Brand Awareness -> Brand Image
5.181
0.000
Accepted
H6
Brand Image -> Purchase Intention
0.356
0.722
Rejected
H7
Brand Image -> Brand Trust
8.569
0.000
Accepted
H8
Brand Image -> Purchase Decision
0.405
0.685
Rejected
H9
Brand Trust -> Purchase Intention
2.351
0.019
Accepted
H10
Purchase Intention -> Purchase
Decision
0.781
0.435
Rejected
4. Results and Discussion
Brand ambassador relationship with brand awareness
The first hypothesis stated that brand ambassador has a significant influence on brand awareness.
According to Table 4.9, the relationship of H1b (credibility to brand awareness), H1c to (attraction
to brand awareness), and H1d (power to brand awareness) shows a positive significant result, only
H1a (visibility to brand awareness) does not show a positive significant result. This is also aligned
with the study by Aprilia (2018) that states that brand ambassador has a direct influence on brand
awareness and Osak and Pasharibu (2020) that states brand ambassador has a significant influence
on brand awareness. The brand ambassador that is represented by a celebrity or another public
figure can help the consumer to like the product more. This shows that brand awareness will
increase if the advertisement is using celebrity as an endorser.
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Brand ambassador relationship with purchase decision
The second hypothesis stated brand ambassador has a significant influence on purchase decision.
According to Table 4.9, the relationship of H2a (visibility to purchase decision), H2c to (attraction
to brand awareness), and H2d (power to brand awareness) does not show a positive significant
result, only H2b (credibility to purchase decision) show a positive significant result. This result is
also aligned with Samosiret al., (2016) and Hariandja (2016) that also states that brand ambassador
does not have a direct influence on purchase decision. Meanwhile (Yusiana and Maulida, 2015,
Nofiawaty et al. 2020, Sari Dewi et al., 2017) stated that brand ambassador positively influence
purchase decision. After testing MS Glow For Men’s unique brand ambassadors on their
effectiveness in increasing customers’ purchase decision. It can be said that their unique brand
ambassadors do not influence purchase decision.
Brand ambassador relationship with purchase intention
The theird hypothesis stated that brand ambassador has a significant influence on brand awareness.
According to Table 4.9, the relationship of H1a (visibility to purchase intention), and H1d (power
to purchase intention) shows a positive significant result. The brand ambassador's visibility
determines how well-known or familiar the ambassador is to the general public (Rossiter and
Percy, 1985; Yoon & Kim, 2015). So the more popular the brand ambassador is, it will increase
the chance of purchase intention. Power is the ability to attract consumers to buy, besides being
famous and attractive, brand ambassadors also must be idolized by the audience. At this level, it
will naturally lead to strong encouragement to the target audience to buy. (Rossiter & Percy, 1985;
Yoon & Kim, 2015)
Brand ambassador relatioship with brand image
The fourth hypothesis stated that brand ambassador has a significant influence on brand awareness.
According to Table 4.9, All hypothesis except of H1d (power to brand image) does not shows a
positive significant result. This implies that brand ambassador does not have a direct influence on
brand image. But, there are many research that states brand image as mediating variable to brand
ambassador to purchase decision, such as Fitriahningsih et al. (2020) concluded that brand
ambassadors influenced purchasing intention as an intervening variable due to the brand image
they created. Because it has the potential to alter brand image, a brand ambassador is an important
aspect of a marketing strategy. Rutha et al. (2019) concluded that the better the brand ambassador
in the view of society, the better the perception of brand image.
Brand awareness has a significant influence on brand image
The fifth hypothsis stated that brand awareness has a significant influence on brand image.
According to Table 4.9, the relationship of brand awareness to brand image shows a positive
significant result. Thereore, this hypothesis is accepted. According to numerous studies, including
Chang (2012) and Barreda et al. (2015), strong brand awareness is connected with other brand
qualities, such as brand image, and has a substantial impact on a brand's market share. In addition,
Bernarto et al. (2020) asserted that the more the brand awareness, the higher the brand image. This
highlights the vital role that brand awareness plays in forecasting brand image.These results
indicate that if MS Glow For Men has a high brand awareness, it will increase MS Glow For Men
brand image. This is consistent with the survey results, which indicate that all brand awareness
metrics had mean scores above 4. This is comparable to the average brand image score, which
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similarly received averages above 4. Thus, all of the results discussed explain brand awareness can
positively affect brand image. MS Glow For Men can maintain and increase their brand awareness
by creating marketing activites both online and offline to ensure their presence is noticeable by
their customers.
Brand image does not have a significant influence on purchase intention
The sixth hypothesis stated brand image has a significant influence on purchase intention.
According to Table 4.9, the relationship of brand image to purchase intention does not show a
significant result. Therefore, this hypothesis is rejected. This study results consistent with Li
(2017), but inconsistent with Ristanto (2016); Agmeka, et al. (2019); Apriani (2019). There are
many studies that have been conducted to determine the brand image variables that affect purchase
intention. Ariely and Levav (2000) in Ahdiany (2020) argue that in front of other people, consumer
choices are different from what they will make themselves. This shows that consumers think that
the acquisition of a better image can be achieved through the acquisition and use of products and
brands (Ahdiany, 2021). The good brand image will be perceived as good product by consumers
and will attract purchase interest, and vice versa. This study shows that brand image of MS Glow
For Men has no significant effect on purchase intention. These results indicate that although MS
Glow For Men has a good brand image, it cannot make consumers interested to buy the brand.
Brand image has a significant influence on Brand Trust
According to the seventh hypothesis, brand image has a significant impact on brand trust. A
According to Table 4.9, the association between brand image and brand trust is favorable and
statistically significant. Theoretically, this idea is supported. This is consistent with the findings
of Mudzakkir and Nurfarida (2015) and Bernarto et al. (2020), who found that brand image has a
strong influence on brand trust. The brand image could provide brand trust. All indicators on the
brand image must be well managed to increase the brand trust. For example, the management must
strive to make their MS Glow For Men popular. They must also pay attention to the products.
Besides offering good quality products, MS Glow For Men service must also be good and
consistent. The employees must be able to provide continuous good service, for example by being
polite, friendly, error-free, and fast-response in ordering to maintain the customers’ trust. Further,
a prestigious, famous, and trusted brandcould predict their brand trust. When the brand image was
getting weaker, it could have an impact on the decline in customer confidence towards the brand.
Furthermore, brand trust has a significant influence on purchase intention. According to the
questionaire result, the mean scores of all brand trust indicators were above 4 which indicates that
the respondents have a high brand trust in MS Glow For Men. So in order to lead the customer
into purchase intention, MS Glow For Men has to maintain their unique campaign about inclusive
beauty and realistic representation of Indonesian.
Brand image does not have a significant influence on Purchase Decision
According to the eighth hypothesis, brand image has a significant impact on buying decisions.
According to Table 4.9, there is no significant correlation between brand image and purchasing
decision. Consequently, this hypothesis is rejected. This result is inconsistent with the findings of
Wibowo (2017) and Ambolau et al. (2013), who found that brand image has a direct influence on
purchasing decisions. Figure 4.8 demonstrates that, among 211 respondents when asked about
what factors influenced them to buy MS Glow For Men products: 35% influenced by the product
quality with a total amount of 73 respondents; 27% influenced by the brand ambassador with a
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total amount of 56 respondents; 25% influenced by the price with a total amount of 53 respondents;
12% influenced by the availability in the market with a total amount of 26 respondents; 3%
influenced by themselves just want to try with a total amount of 3 respondents. So this also implies
that brand image does not have a direct influence towards purchase decision because consumers
still consider several factors such as the product quality, brand ambassador, the price, and
availability in the market. This study shows that brand image of MS Glow For Men has no
significant effect on purchase intention. These results indicate that although MS Glow For Men
has a good brand image, it cannot make consumers interested to buy the beauty brand.
Brand Trust has a significat influence on Purchase Intention
The ninth hypothesis stated that brand trust has a significant influence on purchase intention.
According to Table 4.9, the association between brand trust and purchase intent is significantly
positive. Theoretically, this idea is supported. This is consistent with the findings of Aydin et al.
(2014) and Bernarto et al. (2020) that brand trust has a direct effect on purchase intent. Moreover,
according to the survey results, the average score for each brand trust indicator was greater than 4,
indicating that the respondents have a high level of trust in MS Glow For Men as a brand. Similarly,
the purchase intention indicator was greater than 4, indicating that individuals had a strong intent
to purchase. These results illustrate how brand trust may positively influence purchase intention
and how a high level of consumer trust in the brand may enhance purchase intention. These
findings imply that when customers have a brand trust toward MS Glow For Men, they believe
that MS Glow For Men is reliable and trustworthy, and so is the campaign. Furthermore in the
open-ended question in quesstionaire, many people have stated that they like seeing Babe Cabita
and Marshel Widianto as MS Glow For Men’s brand ambassador becauase they are breaking
beauty boundaries and have realistic representation of indonesian which makes them trust the
brand.
Purchase Intention does not have a significant influence on Purchase Decision
Previously, it was hypothesized that purchasing intention significantly influences purchase
decision. According to Table 4.9, the relationship between purchase intention and purchase
decision is insignificant. Consequently, this idea is rejected. This result contradicts the findings of
Rachbini, Widarto (2018) and Harum et al. (2021), who found that purchasing intention had a
direct and substantial effect on purchase choice. Despite the fact that, according to the
questionnaire results, the mean scores of all purchase intention indicators were over 4, indicating
that respondents have a high intention to purchase MS Glow For Men products, this did not lead
to a purchase decision. This suggests that this could be a potential for MS Glow For Men as it
relates to developing marketing strategies for how customers' purchase intentions can be converted
into purchase decision.
5. Conclusion
According to the interview and survey results, the factors that make "nonmainstream” brand
ambassadors attractive for a local man's beauty and personal care brand are that this strategy has
not been used by other brands in the same industry, it is unique because it dares to be unusual, it
is fascinating to watch "different" faces of men's beauty and personal care brand ambassadors, and
it is relatable for Indonesian consumers because they represent real Indonesian skin and breaking
beauty standards.
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As per the findings from PLS analysis, the usage of "nonmainstream” man as a brand ambassador
had no effect on the purchasing decisions of MS Glow For Men customers. However, it has been
demonstrated that brand ambassadors have an indirect effect to purchase intention.
Nonmainstream brand ambassadors can boost brand awareness, and the greater the increase in
brand awareness, the greater the brand image will become. When a positive brand image is created,
consumers' trust in the brand will rise, which in turn might increase their purchase intention
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THE SLOGAN "HEBAT PONOROGO" AS IDENTITY AND CITY
BRANDING IN PONOROGO TOURISM PROMOTION
Adi Santoso1*, Alip Sugianto2 and Nur Sayidatul Muntiah3
1 2 3 Ponorogo Muhammadiyah University, Jawa Timur, INDONESIA
*Corresponding author: adisantoso@umpo.ac.id
Abstract: Slogan language is an interesting part of advertising. The government of Ponorogo has
the slogan "Ponorogo Hebat" which is the identity and city branding as an effort to promote the
city of Ponorogo, one of which is through tourism. Therefore, it is necessary to know how the city
branding strategy is carried out by the Ponorogo government. This study uses a qualitative
descriptive approach. This research took place in Ponorogo Regency, precisely at the location
that became the object of branding. Data analysis using triangulation. The results of this study
can be concluded that the implementation of the city branding "Ponorogo Hebat" is very
appropriate based on the analysis of place, objectives, popularity and goals in developing tourism
aspects such as branding on Hos Cokroaminoto street, Bendo Dam, and the mural festival. The
city branding becomes an identity because it is a monument that has a long enough duration and
has a significant impact on tourism development in Ponorogo.
Keywords: Language, City Branding, Tourism, Ponorogo.
1. Introduction
Slogan language is a medium or tool to tell something to the public that is part of an
advertisement. The language used is usually short, clear, concise, interesting and makes an
impression on the community. According to KBB1, slogans are words or short sentences that are
interesting and striking and easy to remember to tell or advertise something. Slogan language is
also often used to convey certain goals such as to build public awareness of something, provide
certain information, as an appeal, motivate to influence others, so the use of this slogan has a close
relationship with public information.
The government of the regents of Ponorogo for the 2020-2024 period, Sugiri Sncoko and
Lisdyarita have an interesting slogan, "Ponorogo Hebat". The slogan consists of two words,
namely “Ponorogo” and “Hebat”. The first word shows the name of the area or district of
Ponorogo, the second word great is an acronym for harmonious, beautiful, energetic, trustworthy
and pious. The acronym as stated in the government's vision is a series of Harmonious words in
realizing the Ponorogo community to live a safe, comfortable, peaceful, harmonious, harmonious
and harmonious life. Elok realizes that Ponorogo is beautiful, beautiful, and elegant so that it
becomes a comfortable and fun place to work and create and is able to invite tourists from outside
Ponorogo. Bergas is to create a superior, healthy, intelligent, and agile Ponorogo community to
support global development. Amanah is a representation of the government serving the community
wholeheartedly and managing the APBD really for the welfare of the people. Piety is the hope of
the people of Ponorogo who believe and fear God Almighty.
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The slogan "Ponorogo Hebat" has become an identity and city branding in every government
activity in various fields such as agriculture, health education, and government, including in the
field of tourism. Mission in the field of Tourism by improving the quality of infrastructure in
tourism objects, building new tourist objects in the form of places and events, increasing
international class cultural and tourism events, building a tourism industry based on community
economy, building a cultural center complex, consisting of a core building in the form of a
monument, museums, plazas, theaters, and art markets, as well as creating attractive and wide-
reaching tourism promotion programs.
The vision and mission of “Ponorogo Hebat" is part of the city branding and identity of tourism
development in Ponorogo. City branding is a marketing strategy carried out by a city, especially
in the economic field. City branding owned by a city also has a role to influence a tourist to visit
a destination or city that has been branded. Lailatus, and Nurita, 2018). City branding is usually
based on three main attributes, namely image, uniqueness and authenticity. Branding, mainly
developed from marketing strategies, is increasingly being used for city marketing and promotion,
similar to products (Muge Riza, 2012). Kotler even argues that place is a product whose identity
and value must be designed and even marketed as a product (Kotler, 1999).
Photo 1: “Ponorogo Hebat” Branding
One of the goals of city branding is to find or create uniqueness that makes the city has a city
characteristic that can be distinguished from other regions (Ashworth, 2009), thus city branding
must pay attention to how culture and history, economic growth, social development,
infrastructure and architecture, landscape and environment. This city branding also forms
an identity that distinguishes what is real and visible at first glance and is strong in creating an
impression in the minds of people even who have never seen it. Therefore, identity is always
exclusive and cannot be produced and each region has a unique identity consisting of the image of
the city, regional advantages, history, geography and so on (Wicaksono, 2019). Ponorogo as an
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area in East Java has many advantages in the field of tourism, be it natural tourism, culture,
historical tourism, religious tourism, culinary tourism that can be used as an icon in tourism
development. In line with that, the slogan "Ponorogo Hebat" is an umbrella for all aspects of
development in building city branding and identity.
In this millennial era, the tourism industry is growing rapidly, each region is competing to attract
the attention of tourists with various marketing activities carried out (Andriani, 2018). The
implementation of regional autonomy has encouraged the government to further develop and
market the advantages of the tourism sector, one of which is by creating city branding. City
branding can attract the attention of tourists to visit an area, this is because city branding can form
positioning and differentiation in marketing an area so that a city can build a clear identity, strong
associations, and embed positive attributes in order to be able to win the competition with other
cities, especially in tourism sector
This article wants to examine city branding and identity in tourism promotion in Ponorogo
district. Based on the description of the background above, the following problems can be
formulated: 1) how is the implementation of the city branding slogan "Ponorogo Hebat" in
tourism promotion? 2) How is city branding in building a tourism identity?
2. Literature Review
Slogan Language
Slogans are usually interesting and arranged in such a way that they can influence the
reader. Slogans have the nature of words that are easy to remember and tell something to many
people. (Desi Lestari, Padi Utomo and Agus Trianto, 2019) In line with that, Supriatna said that
slogans are words that inspire enthusiasm. This slogan is usually chosen for various purposes such
as life goals, vision and mission which describes the hope related to something desired. This slogan
is widely used in government agencies, private institutions, individuals. In government agencies,
slogans are usually related to regional development that reflected the vision and mission of the
government. In private institutions, for example, it is intended to develop institutions in accordance
with the vision and mission of the institution or for individuals as an effort to motivate themselves
related to life goals. Slogans have two main functions, namely to maintain the continuity of a series
of advertisements in a campaign and to simplify an advertising message strategy in positioning
statements so that it is concise, repeatable, attracts attention and is easy to remember by the
public.
Place Marketing
Yananda and Salamah (2014: 19) define place as a culture, politics, and geography that is rapidly
increasing as well as being seen as a product. According to Kotler in Yananda and Salamah
(2014:16) Place Marketing is the design of a place to satisfy the needs of the target market. Place
marketing can be said to be successful if city residents and business people are very happy with
their community and visitors and investors get what they want. Place marketing is an aspect of
urban development (Urban Development).
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According to Yananda and Salamah (2014:17) three important components of regional marketing
are positioning determination, differentiation development and efforts to build regional
brands. Positioning is an attempt to establish a certain position in the minds of
customers. Differentiation is an effort to differentiate itself through a unique value proposition and
different from what is provided by the competitors. Building a brand is nothing but building
awareness, brand association, perceived quality, and brand loyalty. The right positioning
supported by strong differentiation can produce a strong and credible regional brand in the eyes of
customers. Regions must also segment the market and focus on choosing their customers.
City Branding
Branding is an attempt to build a brand. A brand or brand is not just a series of words or images
affixed to a product or service without a meaning to follow (Santoso, 2016). Logos, taglines,
symbols, whatever the name and shape are part of the brand or brand to distinguish one product
or service from another. Brand or brand, can traditionally be interpreted as a name. terminology,
logos, symbols or designs created to mark or identify the products offered to consumers. A brand
is a unique identity of a product or service in the minds of consumers, which reflects the level of
difference from competitors (Murfianti, 2010).
Malik, et al., (2016) said that city branding is the identity of an area that gives a certain impression
and message to a consumer (tourist). Pakarti, et al., (2017) states city brаnding is strategic of giving
them brand in the city which serves as a tool to identify or control the potential of the
peatlands Anholt in Moilanеn and Rainisto (2009:7) City branding is the management of a
destination through strategic innovation, coordination, economic coordination,
coordination Yananda and Salamah (2014: 34) explain that city branding serves as a tool to
communicate a place (city, district, or province) to stakeholders.
Branding of places or regions has differences with product branding (Sukmaraga & Nirwana,
2016). To create a strong city branding, it is necessary to have an attachment in the form of the
strength of the nation of origin that reflects the quality of the product with the area or place where
the product originates or is made. Dinnie (2011) explains that the stakeholders of city branding are
very broad consisting of the community, investors, tourists and government parties so that in-depth
analysis is needed to form regional branding.
A city with a strong brand can be different from other cities. Through the brand a city can be in
the minds of the people when thinking about a place, that is, city branding plays a role in creating
positioning and differentiation of a city so that it can win the competition between regions. City
Branding strategy according to Andrea Insch, namely: Identity, which is the process of identifying
the identity of an area (city, district, region), Objective, which is to determine the main purpose of
determining the city brand, Communication, which is a form of communication carried out to
promote city branding Coherence, is harmony communication carried out by all parties involved
in promoting the city branding that has been built.
Tourist
Tourism is an activity or trip carried out by one or more people to a place outside their place of
residence which is intended for pleasure, relaxation, business interests or other interests. (Risaldi
& Wedayanti, 2019). According to the Law of the Republic of Indonesia Number 10 of 2009
concerning Tourism, tourism is a journey carried out by a person or group of people by visiting
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certain places for recreational purposes, personal development or studying the unique attractions
of tourist attractions visited in a temporary period. The tourism sector is one sector that is currently
being promoted by the government (Rani, 2014). In order to support the tourism sector, the
government not only builds infrastructure but also does several other things, such as promoting a
strategy to improve the performance of the tourism sector in the Asean Economic Community
(Sabon, et all, 2018). As evidenced by the development of the tourism sector, it will increase GDP
revenue (Mudrikah, 2014). In addition, in the analysis of regional tourism development strategies,
there is still regional tourism that has the potential to be developed but has not received full
attention (Primadany, 2013).
In this case, an area can certainly be a tourist attraction, which means everything that has a
uniqueness such as beauty and value in the form of a diversity of natural, cultural and man-made
wealth that is the target or destination of tourist visits. Indonesia's tourism development has been
reflected in the strategic plan formulated by the Ministry of Culture and Tourism of the Republic
of Indonesia, namely: Improving people's welfare by opening up business opportunities and
employment opportunities as well as equitable development in the tourism sector; Realizing
sustainable tourism development so as to provide socio-cultural, socio-economic benefits for the
community and the region, as well as maintaining environmental quality; Increase tourist
satisfaction and expand market share; and create a conducive climate for the development of
Indonesian tourism powerful, productive, transparent and corruption-free, so that it can carry out
the function of the public service, as a trust which can be accounted for ( accountable )
(Indonesia).
3. Method
This study uses a descriptive qualitative research method, which emphasizes understanding related
to problems contained in people's lives related to relationships, activities, attitudes, views and also
ongoing or ongoing processes (Simamora & Sinaga, 2016) . location in Ponorogo Regency,
precisely in the location that is the object of branding, so it is hoped that more in-depth information
can be extracted about the "Ponorogo Hebat" branding related to the implementation of the
program in the context of tourism development in Ponorogo Regency. The type of research used
is qualitative research using interviews and direct observations in the field which produces data in
the form of written and spoken words from resource persons, by taking notes and providing actual
descriptions to support the presentation of the data. Qualitative research develops concepts and
collects data (facts) and thus does not test hypotheses and statistics. (Singarimbuan & Effendy,
1999). The subjects of this research are all elements that act as actors or actors of cultural events in
Ponorogo district. The main informants are based on the main requirements, namely from
the event side, they are people who play a role in planning and implementing cultural events, are
responsible for the operation of cultural events, and have the power to make decisions. Meanwhile,
from the community side, it is the person who directly feels the impact of the language that is
established through the organization of cultural events.
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4. Results and Discussion
Implementation of 'Great Ponorogo' Branding
The slogan "Ponorogo Hebat" is a program of the regents of Sugiri Sancoko and Lisdyarita in
building the Ponorogo district government for the 2020-2024 period. The slogan is the spirit of
development, so "Ponorogo Hebat" is applied in various sectors such as agriculture, education,
economy, health and tourism. In the field of tourism, this slogan is designed in such a way with
the hope of improving the economic sector of the Ponorogo community. The " Ponorogo Hebat"
program in the context of the success of the Ponorogo local government program is very important
as an effort to succeed the regent's vision and mission in realizing "Ponorogo Hebat".
The phrase “Ponorogo Hebat” consists of two words, namely Ponorogo which indicates a location
or the name of a region in East Java and the word great which in meaning is a very good condition,
exciting or special. This "Ponorogo Hebat" can be interpreted as a special area that is memorable
for all people, both Ponorogo residents and outside the region, in the slogan of course there is a
hope and prayer to bring goodness in every government journey. Therefore, "Ponorogo Hebat" is
not only a development slogan, but must be realized because it is part of a political promise to the
community.
The implementation of "Ponorogo Hebat" in the tourism sector is by using various media such as
the construction of new tourist attractions, tourist renovations, to various competitions or festivals
or through activities that essentially build a new innovation. Even though this program has just
started, the results can be felt so far, both in the form of physical buildings and systems. Physical
buildings that have been successful include making efforts to face off the HOS Cokroaminoto road
to become a tourist destination, the concept of the HOS Cokroaminoto road is similar to Malioboro
Ponorogo, the Hos Cokroaminoto road was chosen because it has historical, cultural tourism
potential and the main protocol road that become a trading center. This face off development is
the result of community participation such as Muhammadiyah mass organizations, Surya
Supermarkets, Bank Rasuna CSR, and other institutions.
The community-based development is a form of community participation in developing Ponorogo
district so that all elements feel they have a shared responsibility in keeping Ponorogo for the
better. The "Ponorogo Hebat" program under Sugiri Sancoko's leadership was quite good, as
evidenced in 99 working days (taking the philosophy of Asmaul Husna) after being appointed as
regent, he tried to organize and develop in Ponorogo by conducting community service
competitions, Ponorogo batik design competitions, mural competitions sports-themed, located at
the Batara Katong stadium, and so on. These movements are quite enthusiastic about the people
of Ponorogo, it is proven that every event held is enough to attract the attention of the wider
community.
The branding of "Ponorogo Hebat" is quite appropriate, namely by taking a moment of change or
contextual in the regional head election so that it becomes a separate bargaining for voters to make
choices with an attractive and quite promising slogan. This momentum has become one of the right
and fast changes through the "Ponorogo Hebat" branding. The slogan seems very suitable if you
see the very diverse potential of Ponorogo, ranging from cultural tourism, nature, religion, culinary
and others. Potential in the field of culture for example reyog art, gajah-gajahan, unto-untoan,
kebo-keboan, gong gumbeng. Nature tourism is very diverse considering that geographically
Ponorogo is on the slopes of Mount Wilis, it saves natural potential, including Telaga Ngebel,
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waterfalls, and caves. Religious tourism includes the tomb of Batara Katong, the Tegalsari
mosque, to Islamic boarding schools, both modern and salaf. Culinary tours include chicken satay,
gule satay, dawet jabung, and others.
This wealth is a motivation for the government to continuously improve in order to have a positive
impact on the joints of life both in the fields of education, economy and social society. Based on a
study of the potential of Ponorogo, it is no exaggeration if the slogan of this great Ponorogo became
the choice of the regent of Sugiri. This Ponorogo district city branding strategy, when analyzed
with Andrea Insch's theory, meets the criteria where in this city branding by identifying a very
strategic place in terms of popularity, based on the objective, the main goal is development and
development to improve the welfare of the community, the main interest is the community. as the
recipient of the program, communication in the promotion of "Ponorogo Hebat" also runs
massively in various government-owned sectors, and the last element is harmony between all
elements, both government and society.
Branding and Identity Formation
Socialization and publications related to the slogan "Ponorogo Hebat" has massively gone viral
on various government-owned social media, as the leading sector. Social media owned by the
Ponorogo Regency Government became a pioneer, which was continued by the relevant
goverment, to media partners. This indicator is that several government-owned or private agencies
have included the “Ponorogo Hebat” logo in every activity, these systems and mechanisms have
run naturally, meaning that there are no top-down instructions, but people voluntarily and without
realizing it also promote the “Ponorogo Hebat” branding. This is great”, for example the use of
twibon about the anniversary of Ponorogo district, thousands of people download twibon
voluntarily, which automatically affects the image and identity formation.
Strengthening the image of this branding indirectly strengthens the identity that is strongly
attached to the development of Ponorogo during the reign of Sugiri Sancoko with the slogan
"Ponorogo Hebat". The formation of this image is also through a program that is permanent and
in the form of a monument so that it is remembered by the public for a very long duration. Among
the identity formation programs include the following:
1) Cokroaminoto's Host Development
The construction of the Hos Cokroaminoto road as one of the tourist destinations made by
Ponorogo is interesting, because it was the first development breakthrough carried out by the
regent Sugiri Sancoko in the 99 working day program after being sworn in as regent. The
determination of the Hos Cokroaminoto road is quite strategic, both from the elements of
historical, economic and socio-cultural studies of the Ponorogo community. From the historical
element, this road holds many historical relics such as SMP N 1, Post Office, Dhuwur Mosque,
and so on. From the economic side, this road is a trading center so that with the construction of
this cokroaminoo hos, the community's economy can increase, from the socio-cultural side it has
strong roots as the basis for community movements. This strategic location has become an
attraction in itself as a place to face off and not only that along the way also branding identity with
the slogan "Ponorogo Hebat" in several locations such as in front of the market, in front of schools,
and parks so as to strengthen the identity.
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Photo 2: Warok Statue and “Ponorogo Hebat” Branding
The identity of the "Ponorogo Hebat" is also supported by the construction of a warok statue, a
warrior figure of the Ponorogo community, this statue was built as an effort to inspire the spirit of
the chivalrous spirit of the Ponorogo people who became the icon or pride of the people of
Ponorogo. The construction of this warok statue has become an important identity symbol of a
figure who is respected and appreciated by the people of Ponorogo. This reading of community
psychology indirectly affects the soul of the people of Ponorogo who are proud and happy with
the nature of heroism. In addition, several symbols in the art of reyog are also reflected along the
Hos Cokroaminoto street so that the impression of ethnicity, and the characteristics of the
Panaragan culture are very pronounced, for example there is a mask of the king of
Klanasewandana, the patih of pujangganong and lamp ornaments in the shape of a peacock feather
which add to the beauty of the atmosphere and make it one of the places to visit kongkow or
refreshing.
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2) Bendo Dam Construction
Photo 3: Regent Sugiri Sancoko inaugurated Bendo Reservoir Water Filling
The construction of the bendo dam in Ngindeng Sawoo Ponorogo village has been going on since
2013, or has experienced a change of regent in Ponorogo for 3 times. In the era of regent Sugiri
Sancoko, the Bendo dam was inaugurated by President Joko Widodo. This multifunctional dam,
which was built at a cost of 1.1 trillion, has a capacity of 4 million cubic meters, a height of 74
meters, an inundation area of 70 hectares. This dam can provide irrigation for 78000 hectares of
rice fields and raw water supply of 370 liters per second, and can reduce flooding by 31 percent or
117.4 cubic meters per second. Setkab.go.id 7 September 2021-10-06
This dam later by the Regent Sugiri Sancoko will also be used as a tourist vehicle considering the
location of this dam is very strategic, close to the provincial route and has a beautiful panoramic
view of the mountains. The bendo dam is also part of the implementation of the “Ponorogo Hebat”
branding as shown in the photo of the inauguration of the water filling of the dam by the regent a
few months ago. This is certainly a distinct advantage for the Ponorogo government because in
terms of image and imagery it goes well which will always be remembered for all time in the
inscriptions and branding displayed in the area of the Bendo dam.
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3) Setting up the Batara Katong Stadion Stadium
Photo 4: Ponorogo Hebat in Mural
The mural festival is one of the 99-day work programs of the Ponorogo regent, Sugiri
Sancoko. This festival was held as an effort to beautify the stadium which seemed less well
maintained. This mural competition was organized by the Department of Art, Culture, Tourism,
Youth and Sports. Participants register and send designs first, in the selection process 20
participants are selected who are entitled to take part in this mural competition. The location of the
mural has been determined by the committee on the walls of the stadium with a sports theme. In the
festival, there is also a branding "Ponorogo Hebat" almost every participant's work shows that the
implementation of the branding is already running naturally present existence in addition to being
tidier stadium is also used as a means of travel sports many people who use the morning as a sport
such as jogging.
Tourist
Some of the places that have been arranged and developed are now a place for tourists both from
local and outside the region. They usually want to see the development and progress of Ponorogo
to do tourism activities, be it enjoying the city atmosphere, scenery or just taking photos. Places
that have been carried out by city branding have a positive impact on people's visits to those places
and make icons or identities of new tourist facilities for the community, and it is proven that many
people use them as tourist facilities. The role of branding in promoting the Ponorogo area is
considered successful, so it is not surprising that the Ponorogo district government plans to do
a face off again at several points in the city of Ponorogo such as the golden triangle ring, Sudirman
streets and others. Development and city branding have an effect on tourism and of course have
implications for the economic growth of the community.
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5. Conclusion
Based on the exposure of the data and the results of the analysis that has been carried out, it can
be concluded that the language of the slogan "Ponorogo Hebat" is very appropriate and successful
in carrying out city branding through several strategies, namely identification of locations, very
clear goals and having a relationship between the government and the community shoulder to
shoulder with each other. participatory so as to be able to realize several development programs
through face offs, mural festivals, and environmental mutual cooperation
competitions. Identifying this potential, becomes a place or city branding effort carried out in the
arrangement and development of the city through the "Ponorogo Hebat" branding which directly
and indirectly affects the Ponorogo tourism sector with marked economic growth.
6. Acknowlegement
Thanks to the Deputy for Strengthening Research and Development of the Ministry of Research
and Technology/National Research and Innovation Agency No.313/E4.1/AK.04.PT/2021 for
funding this research, hopefully it will bring goodness to the entire community.
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Santoso, A. (2016). The Influence of Product Quality and Brand Equity on Purchase
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Photo Source:
1. Ponorogo Hebat Dokumen
2. Media Ponorogo
3. Ponorogo Hebat Dokumen
4. Ponorogo Hebat Dokumen
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WHAT MATTERS THE UPPER SECONDARY SCHOOL
STUDENTS IN LEARNING MATHEMATICS-RELATED
SUBJECTS DURING THE COVID-19 PANDEMIC ERA?
Chee Loong Lee1, Yoke Chin Kuah2, Wai Kwan Lau3, Nurullashkeen Mohd Anis4 and
Chooi Yi Wei5*
1 2 3 5 Faculty Business and Finance, University Tunku Abdul Rahman, Kampar, MALAYSIA
4 Faculty of Arts and Social Science, University Tunku Abdul Rahman, Kampar, MALAYSIA
*Corresponding author: weicy@utar.edu.my
Abstract: Traditional face-to-face teaching and learning mode was stopped during COVID-19;
online teaching and learning is the only feasible mode to continue schooling. However, it is a
sudden and new challenge for students, especially for mathematics-related subjects that involve
the mass of calculation and hands-on practices. This study takes the first step in carrying out a
preliminary needs analysis to identify the needs of students in learning mathematics-related
subjects online. The respondents of this study comprised 431 Malaysian upper secondary students.
The findings reported that learning support is the most significant factor affecting students’
learning of mathematics-related subjects, while math anxiety was the minor factor. Thus,
educators and policymakers should improve learning support to promote smooth and polished
online learning in mathematics-related subjects.
Keywords: Upper secondary school; Online learning; Mathematics-related subjects; COVID-19
Pandemic.
1. Introduction
Since end of 2019 until present, the world has been affected by the Coronavirus (COVID-19)
spread and World Health Organization has declared this scenario as pandemic. The whole world
is suffering from the COVID-19 pandemic and Malaysia is no exception. Therefore, Malaysia
Government announced Movement Control Order (MCO) in March 2020 in order to minimize
transmission of this virus and break the chain of the COVID-19 infection. This unexpected
situation has a significant impact on education sector in Malaysia. Although the schools and
learning institutions have been closed due to MCO, yet the teaching and learning process is still
on going.
In order to resume learning process for students, education institutions start Online Teaching and
Learning (OTL) mode. It has been more than a year since the implementation of OTL with Home-
based Teaching & Learning1.0 implemented fully online in March 2020 and Home-based
Teaching & Learning 2.0 in November 2020 with various learning methods apart from online
method. The Education Ministry announced that the OTL sessions would continue after taking the
current Covid-19 situation into account. It is a new normal in teaching and learning and is deemed
as an effective model to create more flexible educational practices in the future. Whether learning
has taken place during the OTL or not has been the concern of parents, students and of course the
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educators. This is due to the problems and challenges faced such as internet connectivity,
availability of IT gadgets, delivery of lesson, classroom management and readiness of students and
educators.
The main issue here is the unknown requirement that is demanded from the educators and students;
what is really needed from the students in their learning? The answer for this question may
enlighten their direction in this journey of OTL and to ensure that learning does take place. It could
also function as a suggestion for the improvement of OTL. The study may assist the teachers in
ensuring teaching does happen which will ensure that learning takes place. This study will look at
the OTL of mathematics-related subjects in secondary schools in Malaysia. Questionnaires were
distributed to upper secondary students in Malaysia via Google Forms and collected 431 responses.
The study aims to investigate the need analysis of five factors that affect OTL namely, teaching
practices, platform/facilities, learning support, Maths’ anxiety and self-confidence. This new data
and novel findings would contribute to finding the gaps of implementation of OTL and hence,
provide solutions to the gap such as creating a module to address the issue.
This study is organized as follows. Section 2 reviews the literature related to the factors that affect
OTL performance. Section 3 describes the data and discusses the methodology. Section 4 discusses
the results. Finally, the last section presents a conclusion.
2. Literature Review
The effects of the COVID-19 pandemic have affected all educational activities in Malaysia. Web-
based and online learning platforms have exploded in popularity because of the lack of other
options. Online learning, on the other hand, has several drawbacks. As the key measure of online
learning preparedness, students must have access to technology (Rasheed et al., 2020). Meanwhile,
Favale et al. (2020) discovered that poor internet access was the primary factor affecting students’
online learning behavior at an Italian institution. Instructors may require extra time to create
successful material delivery since students will more likely face adapting and technical difficulties
(AJ & Vijayalakshmi, 2019). Besides, interaction is an important component of effective online
learning, as it has a favorable influence on learning (Ha & Im, 2020). Thus, instructors must use
online electronic communication systems that allow for teacher-student engagement (Kamal et al.,
2020). According to Boelens et al. (2017), successful designs and digital education emphasize
student-driven learning and interactivity. Interaction serves both social and cognitive purposes.
Blended learning is crucial for open and remote education, especially when the pandemic spreads.
A good instructional design is also required for a smooth transition to online learning, ensuring
that students do not fall behind in their studies (Volungevičienė et al., 2020). As a result, educators
and instructors must stay current on learning and tool theories in order to meet the demands of
their students. Hence, online cloud-based solutions like Google Drive and Zoom Cloud Meeting
are now vital to accommodate a varied and geographically dispersed group of learners from across
the world (Kamal et al., 2020). In addition, numerous learning and teaching techniques were also
implemented, including live video conferences (Microsoft Teams, Zoom, Youtube), pre-recorded
lecture films (Youtube), and social media (Telegram, Whatsapp, Facebook) (Kamal et al., 2020).
Perienen (2020) studies teachers’ perspectives by adopting ICT in teaching mathematics and finds
that students understand the subject more appropriately and effectively when technology is
integrated. Cullen et al. (2020) also point out that using technology into mathematics classes boost
learning. Borge & Mercier (2019) discovered that adopting numerous tactics to assist students in
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discussing, participating, sharing and contributing is much more crucial when they are not in touch
physically.
During the Covid-19 pandemic, most physical classes shifted to online classes suddenly. It was
found that school management and teacher lack readiness for online classes and providing learning
support to students (Martin et al., 2019). Kelly (2014) points out that learning support is vital to
letting students not to feel alone and building up confidence in their school and teachers. More
recent attention to learning support has focused on the online learning support roles (OLSR);
according to Nacu et al. (2018), teachers play as encouragers and instructors; they provide formal
assessments such as grades, ratings, and badges to encourage students to study hard. They teach,
monitor, and guide students to think and understand the related concept and skills. Next, students
make friends and support together and form learning brokers that connect each other with various
learning opportunities. Finally, parents are the resource provider and learning promoters. They
prepare study spaces, devices, and guides for their children to support online learning. Redmond
et al. (2018) suggest that learning support is the critical competency of online teaching and
learning. Together, these studies indicate that learning support from teachers, students, and parents
is a vital factor in online learning.
Stress and anxiety have been identified as significant challenges in teaching math-related subjects
(Bradstreet, 1996). The feeling of fear, tension, and apprehension when learning and doing math
exercises cab be described as math anxiety (Ashcraft, 2002). Pizzie and Kraemer (2017)
replenished that math anxiety is one type of phobia that creates behavioral disengagement bias
when exposed to math stimuli. Although Dowker et al. (2016) argue that a person without any
math anxiety can be poor at math, it is well known that math anxiety has a negative influence on
math achievement (Ma, 1999; Skagerlund et al., 2019). It is because math learning is highly
dependent on working memory (Lefevre et al., 2005; Lemaire et al., 1996), and the math anxiety
erodes the working memory that controls, regulates, and maintains relevant information in math
learning (Engle, 2002; Miyake & Shah, 2005). Furthermore, the online burden, such as connection
problems and weak interactions with teachers and friends, has made matters worse, Ramirez et al.
(2018) argue that online burden amplifies the math anxiety and affects a person’s ability to learn
math. In all the studies reviewed here, math anxiety is a significant challenge in teaching and
learning math-related subjects, especially in online classes.
Self-confidence is a vital feature in overcoming stress and anxiety in learning, especially in math-
related subjects requiring a high working memory level. Self-confidence is the capability to
understand own weaknesses and limitations and react appropriately to overcome these (Hendrian
et al., 2018; Jerald & Me, 2020). Students with self-confidence enjoy showing off, daring to appear
in front of the class, telling stories, and answering questions (Han et al., 2015; Hendriana et al.,
2018; Kavenuke et al., 2020). Ardianti et al. (2021) claim that self-confidence is not an innate
ability. It requires support from family members, friends, instructors, and the environment.
Training students to expoxe themselves and dare to ask can be done through group activities.
Letting the students to discuss and present together can reduce their anxiety and foster self-
confidence (Hendriana et al., 2018; PharmD et al., 2020). Moreover, instructors should provide
positive words and feedback to ensure students do not feel inferior to others and can be more
confident (Muppudathi, 2014; Pandey & Kurian, 2016). These studies indicate that self-confidence
is critical for students to learn effectively.
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3. Methodology
This quantitative study aims to conduct a preliminary needs analysis learning mathematics related
subject among Malaysian upper secondary school students. The contexts to be researched include
teaching practice, facilities, learning support, math anxiety and self-confidence.
3.1 Population and Sample Size
The upper secondary school students of Form 4 and Form 6 are those involved in learning
mathematical related subjects such as Mathematics, Additional Mathematics, Physics,
Engineering, Science, Accounting, Economics. Quota sampling technique will be employed to
select the respondents based on 5 regions in Malaysia namely Northern, Central, East Coast, South
and East Malaysia.
3.2 Questionnaire Development
A total of 32 items ranged in 5-likert scale has been developed through the review of relevant past
studies. The questionnaire developed in English language and translated into Malay and Chinese
language to cater the respondents from public secondary school, Chinese independent High School
and International Schools in Malaysia. Questionnaire has undergone expert validation by 2
academicians from curriculum and assessment area and education field. Thereafter, pilot test has
been performed among 33 respondents from few secondary schools of public secondary school,
Chinese independent High School and International Schools. Reliability test measured by
Cronbach Alpha value indicated 0.879. Hence, all the items in the questionnaire have fulfilled the
rules of thumb of reliability analysis and the same questionnaire is being employed for the actual
data collection.
3.3 Data Collection and Data Analysis
Questionnaire has been sent out via Google form link to the respondents during the period of
complying with social distancing and strict restriction of entering the school in person. The survey
link available in three languages (English, Bahasa Malaysia and Chinese) distributed to
respondents via various method such as WhatsApp and snowball method from one to another. A
total of 431 set data has been successfully collected within 2 months. The data obtained has been
transferred to Statistical package for Social Science (SPSS) version 25 for statistical analysis of
respondent’s profile, score mean and standard deviation. The statistical results will be discussed
in the next subtopic.
4. Results and Discussion
Respondent’s profile is presented in Table 1 as follows. There were 431 responses being reported
descriptively. Respondents involved in this study are from all states of Malaysia. Majority of the
students from the East Coast region (Pahang, Terengganu and Kelantan) n = 156, 36.20%,
followed by the respondents from Central region (Selangor, WP Kuala Lumpur, and WP Putrajaya)
n = 108, 25.06%. A total of 250 female (58%) respondents and balance of 181 male (42%)
respondents. Majority respondents are the Form 4’s students (n = 356, 82.6%) and the remaining
of 75 respondents (17.4%) are the Form 6 students. Majority of the schools are located at urban
area (n = 318, 73.78%) such as city and town area with strong (n = 144, 33.41%) and average
speed (n = 262, 60.79%) of internet connection. Rural areas include small town in the area located
far from town mainly in Sabah and Sarawak with poor internet connection as well. Respondents
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are mostly Chinese (n= 280, 64.97%) followed by Malay (n = 95, 22.04%) and others (n = 49,
11.37%) which consists of Bajau, Iban and Kadazan from East Malaysia. Most of the respondents
are from public secondary schools (government subsidized school) (n = 393, 91.18%) and 38
respondents (8.82%) are from private secondary school namely Chinese Independent High Schools
and international schools In Malaysia.
Table 1: Respondents Profile
Item
Description
Frequency
Percentage
Region
North
41
9.51
Central
108
25.06
South
52
12.06
East Coast
156
36.20
East Malaysia
74
17.17
TOTAL
431
100
Gender
Male
181
42.0
Female
250
58.0
TOTAL
431
100
Level of
Study
Form 4
356
82.6
Form 6
75
17.4
TOTAL
431
100
School’s
location
Urban
318
73.78
Sub-urban
34
7.89
Rural
79
18.33
TOTAL
431
100
Speed of
internet
connection
Strong
144
33.41
Average
262
60.79
Poor
25
5.8
TOTAL
431
100
Ethnicity
Malay
95
22.04
Chinese
280
64.97
Indian
7
1.62
Other
49
11.37
TOTAL
431
100
Type of
school
Public
secondary
school
393
91.18
Private
secondary
school
38
8.82
TOTAL
431
100
Source: Developed for research
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As shown in Table 2, there are 5 constructs being examined to determine the upper secondary
school student’s need towards learning mathematics related subjects during pandemic era. The
constructs namely teaching practice (TP), facilities (F), learning support (LS), math anxiety (MA)
and self-confidence (SC). Learning support (LS) is found to be most significant concern for the
students (μ = 4.1213, SD = .7460) learning mathematics related subjects such as accounting,
science, economics, mathematics, and additional mathematics. Next, teaching practice (TP) (μ =
3.9791, SD = .8196) employed by their teachers for the lesson and class activities during the class
as the secondary concerned element to the students. Meanwhile, math anxiety (MA) is found to
be the least (μ = 3.3067, SD = 1.0106) concerned factor to the students. This indicates that majority
students are with positive feeling towards learning mathematics related subjects.
Table 2: Mean and Standard Deviation Based on Constructs
Source: Developed for research
Table 3 illustrates the mean and standard deviation for each item under the constructs respectively.
Teaching practice (TP). Majority respondents agreed that their teacher provides adequate teaching
material for online mathematics related subject (Item TP4) ( μ = 4.17, SD = .976) followed by
their teacher is updated with technologies in teaching (item TP 2) ( μ = 4.17, SD = .976). However,
the students claimed that their teacher are not really into educational games during the teaching of
mathematics related subject (item TP 6) ( μ = 3.59, SD = 1.278).
Facilities (F). Majority students can read their teacher's writing on online platform (item F3) such
as Google Meet and Zoom. These online platforms have been widely used during the emergency
remote learning due to MCO implemented by government. Throughout these 2 years of online
learning period, the teachers have applied various online features such as screen sharing, video
conferencing, chat, whiteboard, and file sharing features on the online platform (item F5) for better
communication with the students ( μ = 4.12, SD = 1.019).
Learning support (LS). Majority parents provide devices (laptop and smart phone) (item LS6) ( μ
= 4.30, SD = .936). The parents also provide a comfortable learning environment for their children
to learn from home (item LS7) ( μ = 4.16, SD = 1.022). Meanwhile, students feel comfortable
communicating with their friends via online platform and device without meeting their friends in
person (item LS1) ( μ = 4.19, SD = 1.023).
Construct
N
Mean (μ)
Standard Deviation
(SD)
Teaching practice (TP)
431
3.9791
.8196
Facilities (F)
431
3.9451
.8507
Learning Support (LS)
431
4.1213
.7460
Math Anxiety (MA)
431
3.3067
1.0106
Self-confidence (SC)
431
3.6187
.8114
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Math anxiety (MA). Less than 25% of the students have bouts of unexplained crying when being
given a lot of difficult mathematics questions that must be submitted the next day (item MA5) ( μ
= 2.82, SD = 1.518). This indicates that students are able to cope with their online learning in
mathematics related subject regardless of the learning environment during pandemic era.
Self-confidence (SC). Approximately 65% of the students are dare to express their opinions during
group discussion via online platform (item SC1) ( μ = 3.86, SD = 1.111). However, they are not
comfortable turning on the camera during online classes (item SC4). Hence the mean of the said
item at low score relative to other items under the construct of self-confidence ( μ = 2.94, SD =
1.414).
Table 3: Mean and Standard Deviation Based on Items
Construct
Code
Items
Mean (μ)
Standard
Deviation (SD)
Teaching practice
(TP)
TP1
My teacher uses mathematics
software to teach me.
3.99
1.078
TP2
My teacher is updated with
technologies in teaching.
4.09
.969
TP3
My teacher uses audio, video, text,
simulations to enhance my learning
ability.
3.97
1.059
TP4
My teacher provides adequate
teaching material for online
mathematics related subject.
4.17
.976
TP5
My teacher uses various methods to
make me participate during online
mathematics related subject.
4.00
1.055
TP6
My teacher applies educational games
to teach mathematics related subject.
3.59
1.278
TP7
My teacher is able to ensure smooth
learning process.
4.04
1.012
Facilities (F)
F1
I am able to access the recorded videos
for online classes anytime.
3.85
1.183
F2
I am able to access online learning
platform (Google meet & Zoom)
anywhere.
3.91
1.203
F3
I am able to read my teacher's writing
on online platform.
4.12
1.019
F4
My teacher uses online statistical
software (graphing and calculation) to
teach mathematic related subject.
3.83
1.186
F5
My teacher uses online features (such
as screen sharing, video conferencing,
chat, whiteboard, and file sharing
features) for better communication.
4.12
1.019
F6
I feel comfortable attending online
classes.
3.85
1.157
Learning Support
(LS)
LS1
I feel at ease communicating with my
friends.
4.19
1.023
LS2
I am able to obtain full cooperation
with my friends during group
4.11
1.005
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discussions.
LS3
My teacher provides clear
explanations of homework to me.
4.00
1.066
LS4
Immediate feedback from my teacher
motivates me to do more practices
with the course material.
4.01
1.073
LS5
My teacher shares various useful
online links as additional learning
materials.
4.09
1.018
LS6
My parents provide devices (laptop
and smart phone) to support my
learning.
4.30
.936
LS7
My parents provide comfortable
environment for my study at home.
4.16
1.022
Math Anxiety
(MA)
MA1
I feel nervous a day before
mathematics test.
3.75
1.299
MA2
I feel tired having to complete
homework on my own.
3.49
1.339
MA3
I struggle to concentrate on
mathematics lessons.
3.16
1.410
MA4
I feel uneasy when the teacher
announces a mathematics quiz.
3.33
1.302
MA5
I have bouts of unexplained crying
when being given a lot of difficult
mathematic questions that must be
submitted the next day.
2.82
1.518
MA6
I feel that lack of explanation creates
confusion in understanding
mathematics concept.
3.32
1.285
Self-confidence
(SC)
SC1
I dare to express my opinions during
group discussion.
3.86
1.111
SC2
I volunteer to work on assignments or
questions on the online learning
platform
3.71
1.150
SC3
I am able to provide strong arguments
to defend my opinion or answer.
3.76
1.076
SC4
I felt comfortable turning on the
camera during online classes.
2.94
1.414
SC5
I am able to try new things to learn
mathematics related subject.
3.81
1.045
SC6
I spend less time studying when there
is no homework assigned to me.
3.73
1.178
Source: Developed for research
5. Conclusion
The global disruption by Coronavirus disease (COVID-19 caused by a newly discovered
coronavirus (Word Health Organization, 2020) has severely affected the economy sector of very
nation in this world, including the higher education sector. To resume learning process for students,
education institutions start Online Teaching and Learning (OTL) mode. The objective of this study
is conducting a preliminary needs analysis learning mathematics related subject among Malaysian
upper secondary school (form 4 and form 6) students. The contexts to be researched include
teaching practice, facilities, learning support, math anxiety and self-confidence. Mathematical
related subjects such as Mathematics, Additional Mathematic, Physic, Engineering, Science,
Accounting, Economics. A total of 431 responses were collected and statistical analysis of
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respondents’ profiles, score mean, and standard deviation has been used for identifying the needs
of students in studying math-related subjects in online mode. Major findings are learning support
is the most significant factor affected student’s learning mathematics, while math anxiety (MA) is
found to be the least significant factor. However, the finding from the studies also support that
majority of student have positive feeling toward learning during MCO pandemic period.
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WHEN BRANDS BECOME ACTIVISTS: THE PERCEPTION
AND INFLUENCE OF BRAND ACTIVISM TOWARDS
INDONESIA’S GEN Z)
Adiel Ananda Haryono1*
1 School of Business and Management, Bandung Institute of Technology, Kota Bandung, INDONESIA
*Corresponding author: adielananda@gmail.com
Abstract: The goal of this research was to learn about customers' perceptions and reactions to
the phenomenon of brand activism. Using an abductive research approach based on relativism
and social constructionism, this study employs a qualitative research design. To elicit reactions
and replies, eleven semi-structured interviews were performed with the help of a single
advertisement communicating brand activism. This study results show that Indonesia Gen Z
consumers mostly expect brands to participate in brand activism. Furthermore, respondents view
brand activism as a positive value when it does occur within a brand. It was also found that
perception formation is influenced by self-identity, brand cause fit, responsibility, emotion, and
authenticity, which reinforces Broberg & Doshoris framework (2020). Additionally, these themes
will only elicit a positive response from consumers if the companies behind them can demonstrate
that they are both concrete and consistent over time in their stance and action. Thus, marketing
practitioners and managers who are interested in learning more about incorporating
environmental brand activism into their companies might benefit from this research.
Keywords: Brand Activism, Brand cause fit, Brand Meaning, Consumer Activism.
1. Introduction
In today's increasingly competitive marketplaces and with a more sophisticated and conscientious
consumer base, product-based branding is no longer sufficient to attract value-driven customers.
(Batra, 2019; Belk, 1988) The majority of millennials and Gen Z demand the proper positioning
of products and an outward message of what the brand values and does not. And unlike
conventional customers who may have prioritized a product's price or performance, those
customers who are driven by this concept also desire to see businesses that serve the greater good
(Sarkar & Kottler, 2018)..
As a result of this phenomenon, more businesses are beginning to alter their branding strategies to
attract more value-driven customers. Several studies have also shown that when done right, it can
attract a new consumer base, increase impressions and exposure to the brand, and enable firms to
boost revenue by enhancing consumer loyalty (Kottler, 2018). Additionally, when brands and
companies effectively establish an emotional connection with their target consumer base, the
relationship may transcend product quality or even price. (Shetty, al 2019). As various reports
have also revealed, one-third of customers rely on a brand's social and environmental success on
their purchasing decisions. (Unilever, 2017). And 57% of 14,000 consumers in 14 countries think
that their political or social beliefs influence their decision to buy or boycott a brand. (Edelman
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survey, 2018). As a result, attaining and expressing brand activism authenticity can become a vital
marketing strategy and the possibility of enacting social change.
1.1 Problem Statement
The research on the brand activism is few, and the bulk of studies have been conducted primarily
from a brand management perspective, emphasizing the importance of companies engaging in
brand activism. (Sarkar & Kottler, 2018). Therefore, few studies have placed a premium on the
customer viewpoint.
Additionally, this field of study is still limited within Indonesia's Gen Z consumer. As a result, the
prospective information gained from this inquiry has the potential to have a significant impact on
brand perception and purchasing decisions about these research subjects. As Indonesia's Gen Z
population accounts for 27.94 percent of the total population (BPS 2020), it is the largest segment
of the country's population and will likely be for the following years. As such, it provides important
insight into the future for brands and enterprises targeting this part of the market.
1.2 Research Question
In light of the foregoing, and in order to better understand how Indonesian Generation Z perceives
and responds to brand activism, the following research question must be addressed:
- How do Indonesia’s Gen Z consumers perceive brands' engaging in brand activism?
2. Literature Review
2.1 Brand Activism
Brand activism seems to arise from marketing and corporate-driven activities like cause-related
marketing and corporate social responsibility (Sarkar & Kottler, 2018). To elicit good opinions of
the brand or company, companies have employed cause-related marketing as a mediator in linking
the brand and the customer through a cause (Chang & Chu, 2019). Corporate social responsibility,
on the other hand, takes it a step further and incorporates it into the company's core values
(Weinzimmer and Esken, 2016). However, a tendency among businesses to become more socially
conscious, often known as brand activism, has lately emerged (Sarkar & Kottler, 2018).
Brand activism is described in this study as brands taking a statement on socio-political concerns
and a marketing approach used by brands to persuade people to adopt specific beliefs (Manfredi-
Sánchez, 2019). Brands might become activists by contributing resources or issuing remarks that
draw attention to a particular issue to raise awareness, establish a positive reputation, and earn the
consumer's respect (Vredenburg et al., 2020). Furthermore, brand activism can be categorized into
six categories (Sarkar and Kottler, 2018).
2.1.1 Consumer Activism
Consumers typically support brands through action that is consistent with the brand's identity and
their own ideals (Shetty et al., 2019). And if done correctly customers will reward businesses by
establishing a long-term loyalty to that brand, gaining a competitive edge. (Weinzimmer & Esken,
2016). However, brand activism can also result in negative consequences such as boycotts if the
brand identity, social-political cause, and consumer attitudes are in conflict (Vredenburg et al.,
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2020). As a result, brand activism can be dangerous, as it might result in diminished earnings and
brand equity (Shetty et al., 2019). Consumers are also more wary of corporations who exploit it
for their own gain. Thus, people are being 'woke-washed,' or persuaded to support a brand by the
appearance that it supports social concerns (Sobande 2019).
2.2 Brand Perception
Perception is closely connected to psychology and can be described as the process through which
stimuli are received, processed, and converted into a response by the person (Evans et al., 2013,
p.38). Perception may also be analyzed in terms of customer attitudes about a brand and may affect
brand equity, as perception encompasses both positive and negative attitudes toward a business
(Rodrigues and Martins, 2016). Therefore, people who have a favorable opinion of a brand are
more inclined to acquire its products (Sasmita and Suki 2015). And has an impact on customers'
willingness to pay a premium price to support a brand (Weinzimmer & Esken, 2016).
Marketing success is defined by brand equity, which can be quantified by customers' favorable
responses to a brand based on their mental connections with it (Rodrigues and Martins, 2016).
When brands take an activist stance, consumers create opinions about them based on their
expectations and the firms' prior engagement in prosocial issues. Consumers are also satisfied
when the message is not overly divisive or detrimental to their sense of self-identity. (Broberg &
Doshoris, 2020) However, if consumers believe the ad is a danger to their identity, uproar will
ensue. Therefore, consumer perceptions and responses are contingent upon the audience's
openness to brands that address contentious subjects that defy social conventions (Vredenburg et
al., 2020).
2.2.1 Brand Cause Fit
Brand-cause fit is the degree to which the brand and the cause are in sync (Das et al., 2020). Brand-
cause fit contributes to good sentiments towards cause-related marketing initiatives when high,
whereas low brand-cause fit might lead to unfavorable attitudes towards the brand. (Irmak &
Jayachandran, 2012). A high brand-cause fit can also influences purchase intention and fosters
more positive impressions of the brand (Simmons & Becker-Olsen, 2006). Thus, it is perceived
that brand-cause fit plays a significant part in the cause-related marketing. Furthermore, when a
cause is connected to the customer's own life experiences and the consumer has prior
understanding of the cause, consumers are more likely to see cause-related marketing favorably.
(Broberg & Doshoris, 2020) As a result, the campaign's success was enhanced when consumers
felt it represented their own values and views.
2.2.2 Brand Meaning
Consumers' brand meaning conveys their connections, perceptions, and expectations of the brand.
As each brand interaction leads to various connections that ultimately create the consumer's
opinion of the brand. (Wilson, Bengtsson, and Curran, 2013). Thus, each consumer's impression
is unique, since they will have their own connections and meanings of the brand.
Consumers are more attracted to companies that convey significance to the individual customer,
which helps the person create their self-identity (Hammerl, et al. 2016). As brands become
extensions of one's self. Consumers thus see brands as extensions of themselves and consciously
pick brands that enhance their self-image, allowing them to communicate their individuality to
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others. (Broberg & Doshoris, 2020). Additionally, a postmodern perspective indicates that
customers actively co-create brand meaning (Firat & Venkatesh, 1995). According to Ligas and
Cotte (1999), customers co-create meanings for brands based on their present life objectives and
past experiences. Because each customer has a unique background with a brand, they decipher the
meaning differently.
Because brand activism is about taking a stand on issues and displaying ideals to connect with
customers who share those beliefs. Brands control the messages they send and the symbolic
meaning they communicate. (Batra, 2019). Contrary to common opinion however, these activist
messages provided by corporations are not always regarded favorably by customers because of a
mismatch between marketers' and consumers' interpretations. (Broberg & Doshoris, 2020)
2.3 Indonesia’s Gen Z Consumers
Indonesia’s Gen Z is predicted to be the largest group of customers in the next few years, with a
population of approximately 73 million in 2020 alone (BPS, 2020). They also pose a tremendous
challenge to enterprises, since they have witnessed unprecedented changes in the social, political,
technological, and economic spheres (Vredenburg, Kapitan, Spry, & Kemper 2020). Thus, they
can be considered socially conscious consumers. These consumers are also able to demonstrate
and communicate their beliefs and ethics, as well as show their support for social or political causes
much easier. This is partly due to increased access to social media platforms, which have resulted
in more informed consumers that have developed from passive recipients of advertising-generated
content to more interactive participants who can voice their values and opinions. (Ayuni, 2019)
Gen Z customers' access to a wealth of information also makes it more difficult to convince them
to stay loyal to a single brand (Fromm & Read, 2018). As a result, Gen Z is more equipped to
discern inauthentic marketing, have higher brand expectations, and are more engaged in advocacy
(Duffett, 2017). Additionally, because young customers are more exposed to social media, they
are more critical of businesses that engage in unethical behavior on social media platforms and are
increasingly exposed to brand activism strategy (Shetty et al., 2019).
3. Method
3.1 Research Philosophy
The most relevant research philosophy in light of the study objective was interpretivism.
Interpretivism was chosen because the study sought to understand deeply on Gen Z consumers'
brand perceptions and its effect on their consumer behavior. It views that reality is formed socially
and that customers may see things differently depending on their worldview (Saunders, 2012).
3.2 Research Approach
An abductive technique was determined to be the most suited for the study. This is to close a gap
in current research, and work with both hypotheses and collected data to accomplish the study's
objective. As it aims to investigate a phenomenon and explain its patterns in order to develop a
new or alter an existing theory (Lewis and Thornhill, 2012). the goal is to contribute to and
integrate existing expertise in the area of brand activism. Therefore, this approach is deemed most
appropriate as this research is more qualitative in nature.
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3.3 Research Design
Given the research question, more information was required, necessitating the employment of a
qualitative method. In line with the study's objective, this research is exploratory in character.
Saunders, Lewis, and Thornhill (2012) assert that exploratory studies are an excellent method for
generating open questions in order to get insight into a particular topic of interest.
Additionally, Saunders, Lewis, and Thornhill (2012) argue that since the research is exploratory
in nature, data collection is likely to be unstructured and therefore dependent on the respondents'
contributions, as a result, an interview method is deemed most appropriate.
3.4 Materials (Marketing Stimulus)
For this study, it employed a visual technique to discover what consumers think about brand
activism and how they react to it. An advertisement clip was used in this study to create stimulus
by using commercials from an FMCG brand (AQUA) that exhibited brand activism. This is done
because the benefits of using a visual approach add value to current methods by adding more
dimensions, gathering richer multidimensional data, and providing useful insights into the
participants' worlds. (Glaw et al., 2017)
3.4.1 Advertisement
This section contains a more detailed description of the companies and commercials. The
commercials will be analysed and shown using graphics to show how they depicted brand activism.
Ad: Redefine your normal
Danone-AQUA launched the #bijakberplastik (wise use of plastic) marketing campaign to reduce
plastic waste through a comprehensive approach that included educating consumers to take
responsibility for the waste they produce as well as innovation in the packaging used to promote
their new recyclable water bottle. The advertisement ‘Redefine your normal’ conveyed brand
activism by showing waste of plastics and landfill to highlight what is considered normal before
covid and encouraging people to live in a more sustainable and circular way. Thus, taking a stance
on the environmental issue of waste and consumption of plastic products in Indonesia.
3.5 Site (Data Collection)
In order to gain a more in-depth knowledge of respondents' opinions and their ideas, feelings, and
responses to companies engaging in brand activism, interviews were selected as the data gathering
method (Broberg & Doshoris, 2020). Semi-structured interviews were chosen since the study's
purpose was to determine how consumers feel and think when firms include activist themes into
their marketing, and their reaction to it (Broberg & Doshoris, 2020).
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Figure 3.1: AQUA Life - ‘Redefine Your Normal’
3.5.1 Procedures (Sampling)
The respondent is limited to Gen Z born (1997-2012) and Indonesian natives. Easterby-Smith et
al. (2018) state that this sampling method is used when generalization of the sampled population
is unfeasible.
Saunders (2012) do advise that qualitative data, in this instance interviews, be collected until data
saturation is achieved. As previous qualitative studies similar to this have determined that eleven
was the number of interview respondents where data saturation was achieved. (Broberg &
Doshoris, 2020), this research will also include eleven respondents following the same a non-
probability sampling method.
To achieve maximal variance sampling within the particular customer base of Indonesians Gen Z,
this was accomplished by the researcher purposefully selecting individuals with different traits in
order to generate the greatest amount of variance (Saunders,2012). Maximum variation sampling
is intended to study a phenomenon from every conceivable angle in order to gain a better
understanding. (Etikan, Abubakar, & Alkassim, 2015). As this phenomenon has not been
researched in Indonesia before and wants to generate as much information as possible, it is best
accomplished via maximal variety. To maximize variety, respondents were purposefully mixed by
their gender, age, domicile, profession, and area of study if they are students.
Below are the table of the respondents and their personal information for the interview:
Table 1: Respondents
Name
Nationality/domicile
Gender
Age
Occupation
Respondent 1
Indonesia (Banten)
Male
21
Student (marketing)
Respondent 2
Indonesia (Depok)
Female
22
Investor
Respondent 3
Indonesia (Jakarta)
Male
20
Business owner
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Respondent 4
Indonesia (Bali)
Female
17
Student
Respondent 5
Indonesia (Bandung)
Male
24
Aspiring musician
Respondent 6
Indonesia (Depok)
Female
20
Student (finance)
Respondent 7
Indonesia (Palembang)
Male
23
HR in logistic company
Respondent 8
Indonesia (Surabaya)
Male
21
Graphic designer
Respondent 9
Indonesia (Bandung)
Female
20
Copywriter & student
Respondent 10
Indonesia (Depok)
Male
21
Customer operation at company
Respondent 11
Indonesia (South Tangerang)
Female
23
Program manager
3.5.2 Interview Guide & Process
According to Bryman and Bell (2011), it is important to establish an interview guide before
conducting semi-structured interviews. Because this is a semi-structured interview, these topics
and questions can be handled in whatever sequence that best suits the flow of the conversation
(Bryman & Bell, 2011; Saunders, Lewis & Thornhill, 2012; Easterby-Smith et al., 2018).
The researcher began the interviews by phoning the respondents via Google Meet, followed by a
brief general talk in order to build a pleasant and relaxed relationship. (Saunders, Lewis, and
Thornhill, 2012). Furthermore, it is recommended to remind respondents that the interview is
confidential, and their name kept anonymous, since this will allow them to be calmer throughout
the interview and instill greater faith in the interviewer's reliability. As a result, this study chose to
keep the respondents' names secret in order to elicit as much information as possible.
The interview began with a series of introductory questions related to important theme topics.
Following the discussion of these topics, the researcher showed the AQUA advertising "redefine
your normal." Adverts were discussed and it was assessed whether or not these ads sparked any
reaction from the respondents to brand activism. Finally, a closing question allows interviewees
to share any final thoughts or observations that aren't directly related to the interview topic.
(Broberg & Doshoris, 2020).
3.6 Data Analysis
The data analysis procedure should be consistent with the strategy and methodology of the study
(Easterby-Smith et al., 2018). Since there is a shortage of literature on consumer perceptions of
brand activism and the researcher does not want to confine its findings to the theory alone, it is
best to use grounded analysis to establish the facts from the results. By using grounded analysis,
one may develop a novel theory rather than just rearranging data to match existing frameworks
(Easterby-Smith et al., 2018).
Following each interview, the audio recordings will be converted to written form. Then reading
the empirical material carefully over and over again. This is referred to as acquainting yourself
with the data and states that it is the first stage in interacting with the content. (Rennstam and
Wästerfors, 2018) Following that, the researcher begin summarizing each interview with important
results and ideas, which enable the study to remove material that was deemed unnecessary for this
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research. The procedures were maintained via open coding, which was used to establish
connections across various categories (Easterby-Smith et al., 2018). Additionally, by coloring
ideas and quotations within the same category the same color, it is possible to distinguish one
category or potential essential concepts from another. This refers to the process of
conceptualization as comparing color coding from each interview in order to discover similarities
and discrepancies across respondents' quotes. (Easterby-Smithet al., 2018) Following that, the
researcher color-coded the paper to ensure that each color associated with the idea and quotation
adhered to the same color code. After that, the researcher can start identifying patterns and develop
themes and sub-themes. Due to this fact, the study findings will then discuss and expound on these
topics.
3.6.1 Validity and Reliability
Given the study's qualitative nature, the findings are assessed using Guba and Lincoln's assessment
criteria, which place a priority on credibility and authenticity (Bryman & Bell, 2011). To enhance
the credibility of this article, it will summarize each interview and offer an opportunity for each
respondent to receive this summary in order to validate the results. To improve transferability,
researchers are urged to provide lengthy descriptions that are rich in cultural elements (Bryman &
Bell, 2011). As a result, the analysis included precise and detailed quotations. Throughout the
technique section, there will be an attempt to be as specific as possible in describing the selected
approach and describing the procedure in depth, along with the rationale for doing so to ensure
dependability. To improve confirmability, it is recommended to avoid participating in interviews
for longer than required and intervene with clarifying questions or eliciting more information from
participants to mitigate researcher’s own bias. Additionally, this research provides extensive
quotations from the transcriptions to bolster the validity of the researcher’s interpretations.
4. Results and Discussion
4.1 Theoretical Contributions
Using contemporary literature review to support or disprove these findings, the theoretical
contributions will be presented in the next section. Brand activism, consumer activism, and brand
meaning all gain depth from this research as this study made a major addition to consumers'
perceptions of brand activism.
Brand activism has increased, according to Sarkar and Kottler (2018) and Shetty, Venkataramaiah,
and Anand (2019), as a result of a more value-driven society and customers, as well as a lower
degree of confidence in institutions. As a result, they claim that customers expect companies to
take a stand, and that customers may indirectly support the promoted cause. It appears that this
study validates this finding as most respondents expect brands to take a stand on issues since they
believe they have the responsibility and power to do so. However, this contradict with Broberg &
Doshoris (2020) findings that consumers do not anticipate brands to become politicians since they
think that this is not their primary responsibility. This result, the researcher feel, is crucial to
respondents' perceptions of brand activity, and propose that it is linked to respondents being from
Indonesia. Which the researcher argue that Indonesians have a lower trust in their governmental
institutions compared to Scandinavians respondents from the research done by Broberg &
Doshoris (2020). Thus, they are more likely to support companies that take stand on issues.
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This research also backs up the findings of Sarkar and Kottler (2018) and Shetty, Venkataramaiah,
and Anand (2019), who claim that the brand-cause fit influences how people view brand activism.
When there was a direct correlation between cause and brand, respondents assessed the fit to be
high. However, if respondents thought the match was poor, the brand activism was regarded as
just PR or greenwashing, and the brand activism became inauthentic. As this backs up Sarkar and
Kottler (2018)'s conclusion that the greatest threat to brand activism is being regarded as
inauthentic.
Consumers are more likely to buycott if they believe the position is sincere, according to Baek
(2010) and Neilson (2010), which this study demonstrated to be true within brand activism. Most
respondents stated that if businesses were consistent and transparent within their business practice
and show how they would tackle these issues over a longer period of time, they would be more
likely to form positive reactions, which aligns with Broberg & Doshoris (2020) who argue that
brands must back their stance on issues with meaningful and concrete actions.
This study adds to the body of knowledge in the field of brand meaning. Respondents were drawn
to companies that produced value and meaning for them, which aligned with current literature
(Batra, 2019). A similar outcome for respondents' views of brand activism was found in this study
by Broberg & Doshoris (2020), as respondents stated that they actively chose companies that
matched their values and ideals, they were more likely to produce favorable impressions. (Broberg
& Doshoris, 2020). A conclusion drawn from this study is that customers have a significant role
in shaping the meaning of brands, which supports Ligas and Cotte's (1999) theory that customers
are co-creators of brand meaning. Since their perceptions were obviously based on their own self-
identity and values. The findings of this study suggest that consumers' views of brand activism are
shaped by their understanding of the brand's meaning.
5.2 Perception Formation Model
It is essential to look at the primary themes that emerged from the empirical data and literature,
which include brand activism, consumer activism, and brand meaning. The researcher observed
that these fundamental principles shaped and governed respondents' views and responses to brand
activism. As the principles of: brand-cause fit, authenticity, responsibility, emotions, and self-
identification are all examined from the perspective of the customer in this study similar to the
study conducted by Broberg & Doshoris (2020). As far as the author's knowledge goes, there is
limited research on brand activism from a customer viewpoint in the current literature. To that end,
the goal of discussing this framework is to gain a better knowledge of how respondents think about,
feel about, and respond to brand activism by gathering data from those respondents. As well as
validating Broberg and Doshoris' (2020) framework of the consumer's perspective. From the
empirical findings, it was found that how Indonesian Gen Z consumers perceive brand activism
was also similar to the perception model of Broberg and Doshoris framework (2020). The Figure
below depicts this conceptual framework.
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Figure 2: Broberg & Doshoris Conceptual Framework, 2020
It is also worth noting that the individual's self-identity plays a major part in shaping these
perceptions, as the respondent personal experiences and values affect these beliefs. (Broberg &
Doshoris, 2020) It became obvious that responders had peculiarities to their responses that
are based in part on their own personal experiences. Thus, people's perspectives on brand activity
are shaped by their conceptions of the world and of themselves. However, as they all build on one
another, all of the important elements should be seen as part of a inter-connected process, as it
explain how and why people came to hold the perception as they do.
5. Conclusion
5.1 Research Aim and Main Findings
When conducting this study, the researchers wanted to understand more about how consumers
perceive and respond to brand activism. Based on these findings, a conceptual framework by
Broberg & Doshoris (2020) was reinforced to better explain how respondents view brand activism
and how they react to it.
Respondents also said it would be more appropriate for AQUA, a water mineral firm, to take a
stand on the issue of plastic waste. As AQUA might be perceived as more real and trustworthy by
offering actual acts in their advertisements and campaigns, AQUA can manage to establish intents
among the respondents by presenting clear actions on how they may assist to the cause. If the
company behaves consistently, these intentions may become actions in the form of altered
purchasing behavior in the future. Finally, contrary to previous research, this study does not
suggest that poorly executed brand activism would result in a larger backlash for the brand. When
brand activism is done properly, however, it can result in a positive brand perception.
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5.2 Limitations of the Study and Recommendations for Future Work
It is important to note, however, that there are several limitations to this study.
Because the participants in this study were only exposed to one advertising from an FMCG brand,
the results may be difficult to generalize to other industries. Furthermore, the interview participants
may have been influenced by the stimulus material rather than the phenomena itself. Therefore,
future research may focus on replicating the study within different industry and companies’ context
as well as focusing on discussing more about the phenomena of brand activism rather than a
company’s advertisement and act of conducting brand activism.
Additionally, due to cultural and national differences among customers, this study only looks at
Indonesians, hence the findings might be drastically different if conducted across a wider range of
nationalities and localities. Furthermore, the conclusions of this study are confined to just 11
respondents and their subjective perspectives. Therefore, future research may be conducted in
other countries and geographical areas as well as increasing the respondent interviews to validate
and improve the credibility and sincerity of the results and findings within the study.
Another thing to consider is the fact that the data collection was completed just using a single
technique, suggesting that triangulation was not accomplished. Therefore, the researcher admits
that a netnography research may have enhanced the study in order to give more in-depth insights.
As consumers are more likely to disclose their true feelings and intentions online because of
netnography (Kozinets, 2002).
6. Acknowledgement
I would like to thank everyone who participated in this study's research. Without these great
contributions to this qualitative study, I would not be able to hand in the contributions I am submitting
today.
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