THE INFLUENCE OF THE BANDWAGON EFFECT, DIGITAL PAYMENT, AND INCOME ON PURCHASE DECISIONS FOR THE KOREAN WAVE ASSOCIATED PRODUCT

Authors

  • Rachel Millenia Lumban Gaol Universitas Brawijaya
  • Setyo Tri Wahyudi Universitas Brawijaya

DOI:

https://doi.org/10.21776/csefb.2023.02.4.8

Keywords:

purchase decision, Korean Wave, bandwagon effect, digital payment, income

Abstract

The number of enthusiasm about the Korean Wave is on the rise. This remains across Indonesia as well, allowing for a yearly public consumption of Korean Wave items to exceed 20 million rupiahs. This study aims to determine the influence of several factors considered to drive purchasing decisions, such as the bandwagon effect, digital payments, and income on purchasing decisions for products associated with the Korean Wave (Hallyu). This research is a descriptive quantitative research in which the data collection method was carried out by distributing questionnaires to individuals who were categorized as Generation Z. The data obtained were then processed and tested using the binary logistic regression method with the Wald test method to determine the partial effect and the statistical G test to determine the effect simultaneously. The results showed that the bandwagon effect (X1) and digital payments (X2) partially had a significant effect on purchasing decisions (Y), while income (X3) partially had no significant effect on purchasing decisions (Y). Then the bandwagon effect (X1), digital payments (X2), and income (X3) simultaneously influence purchasing decisions (Y).

References

Amalia, D., Nuryadin, N., & Sentosa, E. (2023). Analysis of Consumptive Behavior of K-Pop Fans in Affected West Jakarta by the Effect of Lifestyle and Financial Literacy. International Journal of Social Science And Human Research, 06(01), 70–75. https://doi.org/10.47191/ijsshr/v6-i1-11

Besanko, D. A., & Braeutigam, R. R. (2014). Microeconomics 5th Edition.

Bank Indonesia. Sistem Pembayaran & Pengelolaan Uang Rupiah. Accessed on 02 January 2023 from https://www.bi.go.id/id/fungsi-utama/sistem-pembayaran/default.aspx

Boto-García, D., & Baños-Pino, J. F. (2022). Social influence and bandwagon effects in tourism travel. Annals of Tourism Research, 93. https://doi.org/10.1016/j.annals.2022.103366

Bosnjak, M., Ajzen, I., & Schmidt, P. (2020). The Theory of Planned Behavior: Selected Recent Advances and Applications. Europe's journal of psychology, 16(3), 352–356. https://doi.org/10.5964/ejop.v16i3.3107

CNBC Indonesia. (2022, 08 November). Gokil! K-popers Habiskan Rp20 Juta Setahun Demi Dukung Idol. Accessed on 23 January 2023 from https://www.cnbcindonesia.com/lifestyle/20221108114249-33-385986/gokil-k-popers-habiskan-rp20-juta-setahun-demi-dukung-idola

DBS Bank Survey. (2023, 22 Feb). Survei DBS: Inflasi Sebabkan Pergeseran Budaya Konsumsi Masyarakat Indonesia pada 2023-2024. Accessed on 05 July 2023 from https://www.dbs.com/newsroom/Survei_DBS_Inflasi_Sebabkan_Pergeseran_Budaya_Konsumsi_Masyarakat_Indonesia__pada_2023_2024

Devia SS, V., & Putri, Y. K. W. (2022). Purchase Decision: Do the Paylater Ease and Consumer Satisfaction Affect It? (Case Study on Shopee Paylater and Gojek Paylater). Sriwijaya International Journal of Dynamic Economics and Business, 6(2), 147. https://doi.org/10.29259/sijdeb.v6i2.147-164

Department Global Communication and Contents Division. (2015, April 21). Korea.net.

Erasmus, A. C., Donoghue, S., & Dobbelstein, T. (2014). Consumers’ perception of the complexity of selected household purchase decisions. Journal of Retailing and Consumer Services, 21(3), 293–305. https://doi.org/10.1016/j.jretconser.2014.02.008

Ghozali, Imam. (2011). Aplikasi Analisis Multivariate Dengan Program IBM. SPSS 17, Cetakan Kelima, Semarang: Badan Penerbit Universitas Diponegoro.

Jin, D. Y., & Yoon, T. J. (2017). The Korean Wave: Retrospect and Prospect. International Journal of Communication, 11, 2241–2249.

KataData Indonesia. (2023, 09 Feb). Meskipun Tumbuh Konsumsi Masyarakat 2022 Belum Pulih dari Pandemi Covid-19. Accessed on 23 January 2023 from https://databoks.katadata.co.id/datapublish/2023/02/09/meskipun-tumbuh-konsumsi-masyarakat-2022-belum-pulih-dari-pandemi-covid-19

Kim, B. (2015). Past , Present and Future of Hallyu (Korean Wave). American International Journal of Contemporary Research, 5(5), 154–160.

Kim, J. (2016). Success without Design: Hallyu (Korean Wave) and Its Implications for Cultural Policy*. The Korean Journal of Policy Studies, Vol. 31 (3), 101-118.

Korea Foundation. (2022, 02 May). Analysis of Global Hallyu Status. Accessed on 23 January 2023 from https://issuu.com/the_korea_foundation/docs/2021_analysis_of_global_hallyu_status_eng

Korean Foundation for International Cultural Exchange (KOFICE). (2019). Persentase Responden yang Tertarik Gunakan Produk & Layanan Korea Selatan. Accessed on 23 January 2023 from http://eng.kofice.or.kr/b00_hallyuReports/b10_reports_list.asp

Kotler, Phillip dan Kevin Lane Keller. 2016. Manajemen Pemasaran edisi 12 Jilid 1 & 2. Jakarta: PT. Indeks

Kusnawan, A., Andy, Hernawan, E., Silaswara, D., & Sefung, T. (2020). The Effect of Digital Payment to Millennial Consumer Purchase Decisions. TEST Engineering and Management, 82(5116), 5116–5129. www.alexa.com

Leibenstein, H., & Quarterly, T. (1950). Bandwagon , Snob , and Veblen Effects in the Theory of Consumers ’ Demand Author ( s ): H . Leibenstein Reviewed work ( s ): Published by : Oxford University Press. Sociological Theory, 64(2), 183–207. https://doi.org/10.2307/1882692

Luo, S., Sun, Y., & Zhou, R. (2022). Can fintech innovation promote household consumption? Evidence from China family panel studies. International Review of Financial Analysis, 82(October 2021), 102137. https://doi.org/10.1016/j.irfa.2022.102137

Mainolfi, G. (2020). Exploring materialistic bandwagon behaviour in online fashion consumption: A survey of Chinese luxury consumers. Journal of Business Research, 120(September 2018), 286–293. https://doi.org/10.1016/j.jbusres.2019.11.038

Ministry of Culture, Sports, and Tourism. (2023, 09 January). Press Releases. Accessed on 23 January 2023 from https://www.mcst.go.kr/english/policy/pressView.jsp?pSeq=211

Najib, M., & Fahma, F. (2020). Investigating the adoption of digital payment system through an extended technology acceptance model: An insight from the Indonesian small and medium enterprises. International Journal on Advanced Science, Engineering and Information Technology, 10(4), 1702–1708. https://doi.org/10.18517/ijaseit.10.4.11616

Pindyck, R. S., & Rubinfeld, D. L. (2017). Microeconomics: Eighth Edition. In Pearson Education.

Puspitasari, S. D., & Indrarini, R. (2021). Pengaruh Penggunaan Digital Payment terhadap Perilaku Konsumsi Islam Masyarakat Surabaya Pada Masa Pandemi Covid-19. Jurnal Ekonomika Dan Bisnis Islam, 4(2), 64–74. https://doi.org/10.26740/jekobi.v4n2.p64-74

Putri, V. K., & Reese, M. (2018). the Impact of ‘Korean Wave’ on Young Indonesian Females and Indonesian Culture in Jabodetabek Area. Emerging Markets : Business and Management Studies Journal, 4(1), 35–53. https://doi.org/10.33555/ijembm.v4i1.60

Nabila, L. D., & Sulistyowati, R. (2020). Pengaruh Dompet Digital Dan Promosi Penjualan Terhadap Keputusan Pembelian Pada Bisnis Franchise Minuman. Jurnal Pendidikan Tata Niaga (JPTN), 8(3), 1034–1040.

Nurfadiah, R. T., & Yulianti, A. (2017). Konformitas Dengan Kepercayaan Diri Pada Remaja Komunitas Pecinta Korea Di Pekanbaru. Psikoislamedia Jurnal Psikologi, 2(2), 212–223

Sabir, I., Azam, A., Majid, M. B., Mahmud, M. S. bin, & Sabir, N. (2020). The Bandwagon Effect and Consumption of Fashion Goods: A Case of Young Consumers of Pakistan. Scholedge International Journal of Management & Development ISSN 2394-3378, 7(5), 88. https://doi.org/10.19085/sijmd070502

Simbar, F. K. (2016). Fenomena Konsumsi Budaya Korea Pada Anak Muda di Kota Manado. Jurnal Holistik, 10(18), 1–12.

Sugiyono. (2017). Metode Penelitian Kuantitatif, Kualitatif, dan R&D. Bandung: Alfabeta, CV

Syukri, A. U., & Rahmatia, R. (2020). Determinan Pola Konsumsi Mahasiswa Yang Bekerja Di Stie Tri Dharma Nusantara. Jurnal Ekonomi Pembangunan STIE Muhammadiyah Palopo, 6(1), 1–11. https://doi.org/10.35906/jep01.v6i1.460

Triwijayati, A., Melany, Wijayanti, D., & Pradipta, D. B. (2019). The Role of Social Class vs. Income in The Purchase of Consumer Products in Jawa Timur. Wacana, Jurnal Sosial Dan Humaniora, 22(4), 308.

Twitter. (2022, 26 January). Indonesia negara yang paling ramai membicarakan K-pop di Twitter 2021. Accessed on 23 January 2023 from https://blog.twitter.com/in_id/topics/insights/2022/indonesia-negara-yang-paling-ramai-membicarakan-k-pop-di-twitter

Yu, D. (2014). Motivations of luxury consumption in America vs. China. ProQuest Dissertations and Theses, 71. http://ez.sun.ac.za/login?url=http://search.proquest.com/docview/1558876015?accountid=14049%5Cnhttp://sunsfx.hosted.exlibrisgroup.com/sun?url_ver=Z39.88-2004&rft_val_fmt=info:ofi/fmt:kev:mtx:dissertation&genre=dissertations+&+theses&sid=ProQ:ProQuest+Diss

Yucha, N., Setiawan, S., Muttaqiin, N., Ekasari, R., & Mauladi, K. F. (2020). Digital Payment System Analysis of Buying Decision in Indonesia. The Journal of Asian Finance, Economics and Business, 7(10), 323–328. https://doi.org/10.13106/jafeb.2020.vol7.n10.323

Downloads

Published

2023-11-15

Issue

Section

Articles