Digital entrepreneurship: Socio-demographics and consumer behavior in Indonesia
-
DOIhttp://dx.doi.org/10.21511/ppm.21(3).2023.23
-
Article InfoVolume 21 2023, Issue #3, pp. 290-299
- Cited by
- 557 Views
-
165 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Consumer characteristics of digital entrepreneurship are indispensable in achieving sustainable growth. Digital entrepreneurship has been rapidly growing and developing worldwide, and Indonesia is no exception. This study aims to determine the effect of socio-demographics on consumer decisions on using products and services of digital entrepreneurship in Indonesia. The study used an online survey of 400 residents of Palembang City, Indonesia. The respondents were selected through a stratified random sampling method. A logistic regression model is estimated to determine the effect of socio-demographic variables that promote start-up entrepreneurship. The empirical results show that age, education, and income have a significant effect on consumers of digital entrepreneurship. The results also confirm that young people are more likely than older people to set up digital entrepreneurship. The higher people’s income and higher their education, the greater their likelihood of using products and services of digital entrepreneurship. The implication is that digital entrepreneurs must consider the reach of consumers to the products and services offered in terms of price, quality, uniqueness, and convenience per socio-demographic conditions.
Acknowledgment
The research team would like to thank the Directorate of Resources, Directorate General Higher Education, Research and Technology Ministry of Education, Culture, Research and Technology as the funder, with Contract number 009/E4.1/AK.04.RA/2021.
- Keywords
-
JEL Classification (Paper profile tab)J10, J12, M00, M29
-
References50
-
Tables6
-
Figures0
-
- Table 1. Characteristics of respondents
- Table 2. Distribution of users and non-users of Palembang start-ups
- Table 3. Uji t-test
- Table 4. Chi-square test
- Table 5. Logistics estimation results
- Table 6. Odds ratio results
-
- Ahmad, R., & Hollebeek, L. D. (2021). Customers’ service-related engagement, experience, and behavioral intent: Moderating role of age. Journal of Retailing and Consumer Services, 60, 102453.
- Ajayi, M. O., Ogundipe, C. F., & Ayeni, G. O. (2021). Determinant of consumer preference for smartphone among mobile phone users in Oyo State, Nigeria. International Journal of Academic Research in Economics and Management Sciences, 10(1), 259-268.
- Ali, A., Xiaoling, G., Ali, A., Sherwani, M., & Muneeb, F. M. (2019). Customer motivations for sustainable consumption: Investigating the drivers of purchase behavior for a green-luxury car. Business Strategy and the Environment, 28(5), 833-846.
- Alrawad, M., Lutfi, A., Alyatama, S., Al Khattab, A., Alsoboa, S. S., Almaiah, M. A., Ramadan, M. H., Arafa, H. M., Ahmed, N. A., Alsyouf, A., & Al-Khasawneh, A. L. (2023). Assessing customers perception of online shopping risks: A structural equation modeling–based multigroup analysis. Journal of Retailing and Consumer Services, 71, 103188.
- Carthy, P., Lunn, P. D., & Lyons, S. (2020). Demographic variation in active consumer behaviour: Online search for retail broadband services. Heliyon, 6(7), e04478.
- Cavallo, A., Ghezzi, A., Dell’Era, C., & Pellizzoni, E. (2019). Fostering digital entrepreneurship from startup to scaleup: The role of venture capital funds and angel groups. Technological Forecasting and Social Change, 145, 24-35.
- Changchit, C., Cutshall, R., & Pham, A. (2022). Personality and demographic characteristics influence on consumers’ social commerce preference. Journal of Computer Information Systems, 62(1), 98-108.
- Chen, H. S., Liang, C. H., Liao, S. Y., & Kuo, H. Y. (2020). Consumer attitudes and purchase intentions toward food delivery platform services. Sustainability, 12(23), 10177.
- Chikersal, P., Tomprou, M., Kim, Y. J., Woolley, A. W., & Dabbish, L. (2017). Deep structures of collaboration: Physiological correlates of collective intelligence and group satisfaction. Proceedings of the ACM Conference on Computer Supported Cooperative Work, CSCW (pp. 873-888). Portland, Oregon, USA.
- Chowdhury, P. P. (2019). Factors affecting buyer behavior: A study on the consumers of two-wheelers (motorcycles) of Dhaka City. Asian Journal of Management, 10(1), 33-41.
- Cockayne, D. (2019). What is a startup firm? A methodological and epistemological investigation into research objects in economic geography. Geoforum, 107, 77-87.
- Dabija, D. C., Bejan, B. M., & Tipi, N. (2018). Generation X versus millennials communication behaviour on social media when purchasing food versus tourist services. EaM: Ekonomie a Management, 21(1), 191-205.
- Derbani, A., & Banani, A. (2020). The use of collective intelligence to create efficient marketing strategies. Pamator Journal, 13(2), 199-205.
- Dunska, M., Salkovska, J., Batraga, A., & Braslina, L. (2018). Consumer behaviour in innovative products purchasing process. Marketing and Management of Innovations, 9(3), 276-289.
- Elia, G., Margherita, A., & Passiante, G. (2020). Digital entrepreneurship ecosystem: How digital technologies and collective intelligence are reshaping the entrepreneurial process. Technological Forecasting and Social Change, 150, 119791.
- Fekete-Farkas, M., Gholampour, A., Bouzari, P., Jarghooiyan, H., & Ebrahimi, P. (2021). How gender and age can affect consumer purchase behavior? Evidence from A microeconomic perspective from Hungary. AD-Minister, 39, 25-46.
- Giones, F., & Brem, A. (2017). Digital technology entrepreneurship: A definition and research agenda. Technology Innovation Management Review, 7(5), 44-51.
- Gujarati, D. N., & Porter, D. C. (2009). Basic econometrics (5th ed.). New York: McGraw Hill Inc.
- Haji, R., & Stock, W. G. (2021). User settings for advertising optimization on Facebook: Active customer participation or settings blindness? Telematics and Informatics, 59, 101548.
- Hasbi, I., Fakhri, M., Saragih, R., Kurnia, B., & Aini, A. G. (2020). Determinant factors of consumer preferences on electronic wallet users in Bandung. Proceedings of the International Conference on Industrial Engineering and Operations Management (pp. 914-919). Harare, Zimbabwe.
- Hossain, M. K., Salam, M. A., & Jawad, S. S. (2022). Factors affecting online shopping behavior in Bangladesh: A demographic perspective. International Journal of Business Ecosystem & Strategy (2687-2293), 4(3), 13-22.
- Islam, T., Meade, N., Carson, R. T., Louviere, J. J., & Wang, J. (2022). The usefulness of socio-demographic variables in predicting purchase decisions: Evidence from machine learning procedures. Journal of Business Research, 151, 324-338.
- Kadoya, Y., & Khan, M. S. R. (2020). What determines financial literacy in Japan. Journal of Pension Economics and Finance, 19(3), 353-371.
- Khobzi, H., Lau, R. Y. K., & Cheung, T. C. H. (2019). The outcome of online social interactions on Facebook pages: A study of user engagement behavior. Internet Research, 29(1), 2-23.
- Kimmitt, J., Muñoz, P., & Newbery, R. (2020). Poverty and the varieties of entrepreneurship in the pursuit of prosperity. Journal of Business Venturing, 35(4), 105939.
- Knell, M. (2021). The digital revolution and digitalized network society. Review of Evolutionary Political Economy, 2, 9-25.
- Kumar, R., & Kumar, R. (2019). Impact of various demographic factors on consumer behaviour – An empirical study of electronic products in rural Himachal (India). Indian Journal of Economics and Business, 19(1), 109-127.
- Kuswati, R., & Irmawati. (2018). Consumer innovativeness: Literature review and measurement scales. KnE Social Sciences, 3(10), 663-672.
- Le Dinh, T., Vu, M. C., & Ayayi, A. (2018). Towards a living lab for promoting the digital entrepreneurship process. International Journal of Entrepreneurship, 22(1), 1-17.
- Lenda, A. G., & Mahendra, D. M. (2021). Ekonomi dan perdagangan online di masa pandemi [Economics and online trading during the pandemic]. Seminar Nasional Sistem Informasi (SENASIF), 5(1), 2588-2598. (In Indonesian).
- Mladenović, D., Bruni, R., & Kalia, P. (2021). Social and demographic predictors of consumers’ word of mouth engagement in Czechia. Journal of International Consumer Marketing, 33(4), 418-433.
- Muafi, M., Syafri, W., Prabowo, H., & Nur, S. A. (2021). Digital entrepreneurship in Indonesia: A human capital perspective. Journal of Asian Finance, Economics and Business, 8(3), 351-359.
- Muthupriya, A. (2019). Online shopping attitude among the youth: A study on Alagappa University Students in Karaikudi, Sivaganga District. Shanlax International Journal of Management, 7(1), 43-47.
- Nambisan, S., Wright, M., & Feldman, M. (2019). The digital transformation of innovation and entrepreneurship: Progress, challenges and key themes. Research Policy, 48(8), 103773.
- Nathan, N. K., Sutherland, R. L., Hope, K., McCarthy, N. J., Pettett, M., Elton, B., Jackson, R., Trost, S. G., Lecathelinais, C., Reilly, K., Wiggers, J. H., Hall, A., Gillham, K., Herrmann, V., & Wolfenden, L. (2020). Implementation of a school physical activity policy improves student physical activity levels: Outcomes of a cluster-randomized controlled trial. Journal of Physical Activity and Health, 17(10), 1009-1018.
- Pebrianti, W. (2020). Demografi pengguna produk digital asli kota Pontianak metode crosstabs [Demographics of original digital product users in Pontianak city crosstabs method]. Cakrawala Management Business Journal, 3(1), 571-582. (In Indonesian).
- Remane, G., Hanelt, A., Nickerson, R. C., & Kolbe, L. M. (2017). Discovering digital business models in traditional industries. Journal of Business Strategy, 38(2), 41-51.
- Richter, C., Kraus, S., & Syrjä, P. (2015). The share-economy as a precursor for digital entrepreneurship business models. International Journal of Entrepreneurship and Small Business, 25(1), 18-35.
- Romadhon, J., Yazid, M., Mulyana, A., & Yunita. (2021). Social demographic factors influencing consumer’s preferences on rice attributes in Indonesia: A multinomial logistic approach. Potravinarstvo Slovak Journal of Food Sciences, 15, 235-244.
- Rybaczewska, M., Sparks, L., & Sułkowski, Ł. (2020). Consumers’ purchase decisions and employer image. Journal of Retailing and Consumer Services, 55, 102123.
- Sahut, J. M., Peris-Ortiz, M., & Teulon, F. (2019). Corporate social responsibility and governance. Journal of Management and Governance, 23(4), 901-912.
- Song, Y., Li, G., Li, T., & Li, Y. (2021). A purchase decision support model considering consumer personalization about aspirations and risk attitudes. Journal of Retailing and Consumer Services, 63, 102728.
- Sussan, F., & Acs, Z. J. (2017). The digital entrepreneurial ecosystem. Small Business Economics, 49(5), 55-73.
- Thenmozhi, G., & Sathya, P. (2022). A study on consumers’ attitude towards online shopping in Madurai city. International Journal of Mechanical Engineering, 7(2), 479-483.
- Urbinati, A., Chiaroni, D., Chiesa, V., & Frattini, F. (2020). The role of digital technologies in open innovation processes: An exploratory multiple case study analysis. R&D Management, 50(1), 136-160.
- Weinlich, P., & Semerádová, T. (2022). Emotional, cognitive and conative response to influencer marketing. New Techno Humanities, 2(1), 59-69.
- Zajonc, R. B., & Markus, H. (2019). Affective and cognitive factors in preferences. Journal of Consumer Research, 9(2), 123-131.
- Zaky, M. A., Nuzar, I., Saputro, W. E., Prayusta, B. D. S. B., Wijaya, S. B., & Riswan, M. (2018). Mapping dan database startup Indonesia 2018. MIKTI dan Teknopreneur Indonesia. (In Indonesian).
- Zhang, H.,Koh, J. Y., Baldridge, J., Lee, H., & Yang, Y. (2021). Cross-modal contrastive learning for text-to-image generation. Proceedings of the IEEE/CVF Conference on Computer Vision and Pattern Recognition (pp. 833-842).
- Zhou, M., Huang, J., Wu, K., Huang, X., Kong, N., & Campy, K. S. (2021). Characterizing Chinese consumers’ intention to use live e-commerce shopping. Technology in Society, 67, 101767.