Group name:

Made Pradnyana Putra (015 2012 000 40)

I Komang Bagus Tribawa (015 2012 000 39)
Christian Dimas Prasetyo (015 2012 000 )
Propose Research title:
Factors That Affect Young Adult Behavior toward Online Shopping.
(A Case Study of Lazada.co.id Indonesia)

Chapter I
Introduction
1.1 Research Background
Now days the internet is one utilities that as media to support human in daily activities. The
Internet users in the world are using internet in every activities that they do every day. The
Internet is a global communication medium that is increasingly being used as an innovative
tool for marketing goods and services. The Internet has added a new dimension to the
traditional nature of retail shopping. (Jun Li Zhang, 1994). The internet offers many
advantages over traditional shopping channels and the medium is a competitive threat to
traditional retail outlets. Globally, consumers are rapidly adopting Internet shopping and
shopping online is becoming popular in Indonesia. If online marketers and retailers know
and understand the factors affecting consumers buying behavior, they can further develop
their marketing strategies to attract and retain customers.
Technology give the new dimension for customers behavior especially young adult that use
technology for supporting their daily needs. Since there are innovation in technology, young
adult empower it for doing business activities until doing online shopping. Consumer
behavior of every individual is different from other depending on buying choices which is
influenced by buying habits and choices that are turn tampered by psychological and social
drivers that affect purchase decision process. (Brassington, F. and Pettitt, S., 2000).
Consumers buying behavior will change if there are influencing in factor that consumers do
in their daily activities, that changing of life style of consumers through technology will
effect consumers behavior.
Internet makes life simple and innovative. People are doing business online and trade has
become more easy and fast due to this. Internet provides new ways to promote business.
Website becomes the essence of online business as to show their services and products.
Internet gathers all competitors and consumers in one place. It brings new lane to promote,
advertise products and services in market. (Barry Silverstein, 2002, p. 3).
Total global E-commerce sale in 2011 have grown to Euro 690 billion (USD 961 billion)
and recorded an increase of 20 % with an estimation of increase in the coming years and to
cross the 1 trillion Euro mark in 2013. Asia pacific region is leading in terms of growth as
compared to mature markets like US, UK, Japan and European countries. Asia Pacific
recorded 130 % growth specially China in 2011. The online retailing is becoming an
integral part of an economy and country and worldwide increasingly seeing trust and
confidence in purchasing online. (AadWeening, 2012)
There are many reasons for such a rapid developing of internet shopping, which mainly due
to the benefits that internet provides. First of all, the internet offers different kind of
convenience to consumers. Obviously, consumers do not need go out looking for product
information as the internet can help them to search from online sites, and it also helps
evaluate between each sites to get the cheapest price for purchase. Furthermore, the internet
can enhance consumer use product more efficiently and effectively than other channels to
satisfy their needs. Through the different search engines, consumers save time to access to
the consumption related information, and which information with mixture of images, sound,
and very detailed text description to help consumer learning and choosing the most suitable
product (Moon, 2004).
Lazada is one example of online retail company that offer merchandise and online shopping
for consumer especially young adults consumers in Indonesia. Lazada the leading online
department store in South East Asia launched in late March and is headquartered in
Singapore. Lazada is already fully operational in 5 countries (Malaysia, Vietnam, Indonesia,
Thailand, Philippines) and is growing at an impressive speed. Become a member of our
great international team and join a group of young and motivated entrepreneurs with various
backgrounds (e.g. McKinsey, BCG, Goldman, and Google). This is a unique opportunity to
gain valuable and challenging experience at a rapidly expanding start-up company. Rocket
Internets Lazada recently celebrated its second anniversary in Indonesia, and during its
short two years, it has risen to be one of the biggest B2C ecommerce players in the country.
Its endless pool of money helps of course. During the countrys national online shopping
day in December, Lazada Indonesia reported that they recorded thousands of orders per
hour. It is now operating with 300 employees in Indonesia and is looking to dominate the
next big trends. (Techinasia, 2014)
This research offers some insights into the links between e-shopping and consumers
behavior toward online shopping. This information can help online marketers and retailers
to develop appropriate market strategies for young adult consumers, make technological
advancements, and make the correct marketing decisions in order to retain current customers
and attract new customers for real retail store especially young adult consumers.

1.2 Problem Identification
This research is consisting of four aspects problem. The first aspect is about the motivation
that why customers are prefer to choose shop online through using the Internet. Consumers
have various motivations in terms of intrinsic factors and exogenous factors. The second
aspect is related with customers information search behavior and the ways of access
shopping websites. Understanding customers information needs can better identify the
information factors of online shopping. The third aspect is focus on the possible information
factors that influence customer online shopping behavior base on a case study of
Lazada.co.id. Testing the different information factors can find out what are customers
concerns more so as to help retailers improve information providing. The last aspect is about
information risks combine with the risks analysis of shop on Lazada.co.id. In this dynamic
information environment, there are various information sources to support for customers
information needs, which maybe involve inaccurate or false information then damage the
trust between customers and vendors. Therefore, information risks in online shopping
environment are also worth to study.

1.3 Problem statement
This research is aimed to answer research questions:
1. What are the motivations that customers choose to shop online?
2. What types of information do customers usually search for when they purchase
3. Online and how do customers access shopping website as usual?
4. What kinds of information factor may greatly impact on customers purchase
5. Decision on Lazada.co.id and in what extent?
6. What are the information risks that customer usually encountered when purchases on
Lazada.co.id?

1.4 Research Objective