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Research Article | Volume 4 Issue 1 (Jan-June, 2023) | Pages 1 - 6
The Effect of Flash Sale on Online Impulse Buying Mediated by Positive Emotion in Shopee Users (Case Study on Gen Y)
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1
Faculty of Economics and Business, Universitas Tanjungpura, Pontianak, Indonesia
Under a Creative Commons license
Open Access
Received
Nov. 7, 2022
Revised
Dec. 11, 2022
Accepted
Jan. 14, 2023
Published
Feb. 13, 2023
Abstract

Impulsive behavior among Indonesians, particularly among members of generation Y, has been attributed to the rise of online purchasing. Consumer impulsivity has the potential to become a prospective market segment, allowing e-commerce to generate promotional activities such as flash sales to drive shoppers' propensity toward an impulsive purchase behavior. This research aims to prove the effect of flash sales on online impulse buying mediated by positive Emotions on generation Y. This research employed causal research design as part of used quantitative research methods. The questionnaire was distributed to a total of 205 people who fulfilled the purposive sampling criteria as Shopee users in the generation Y category. Data were analyzed using the Structural Equation Model (SEM) with the AMOS 26 program. The findings revealed that flash sales and positive emotions significantly affect generation Y's online impulse buying behavior at Shopee and positive emotions mediate this effect.

Keywords
INTRODUCTION

Technology development in the current digital era has brought rapid changes in aspects of human life. One of them is the internet, which has been utilized as a medium for online shopping, which has increased the number of customers who buy online each year in Indonesia. A study survey conducted by the Indonesian Internet Service Providers Association (APJII) found that by the year 2020, the number of internet users in Indonesia reached 73% of the population, equivalent to approximately 200 million users. Additionally, 54% of the population comprises generation Z and generation Y members who enjoy a digital lifestyle. According to Kotler and Keller, the term "e-commerce" refers to the use of a website to conduct or enable the selling of goods and services over the internet. People are encouraged to make unplanned purchases due to the ease and rewards offered by e-commerce, which leads to impulse buying [1]. 

 

Consumers purchase a product without a plan due to the emergence of marketing stimuli such as attractive promotions or discounts [2]. Hashmi et al., [3], define online impulse buying behavior as a desire or decision to buy a product spontaneously. The term "Generation Y" refers to those who came of age during and immediately after the proliferation of the internet [4]. According to Schmidt, the Y generation, or millennials, were born between 1981 and 1994. The Y generation is highly comfortable using technology such as social media and applying it to life. In addition, they have several qualities, including being creative, informative, productive, dynamic, practical, open-minded and consumptive. Compared to previous generations, Generation Y is more likely to engage in compulsive and impulsive buying [5].

 

In online retail, a "flash sale" is a type of limited-time event that offers steep discounts on various products, such as those not limited to consumer electronics, clothes and other items [6]. A flash sale is a type of limited-time sale that offers products at prices lower than their typical prices for a limited number of products for a limited amount of time [7,8]. Vannisa et al. [9], demonstrate that the limited amount of time and products available in the flash sale program can affect impulsive product purchases. A person with strong purchasing habits is likely to feel motivated by a flash sale program, which leads to them making purchases impulsively or spontaneously [10]. As a result, this type of offer is targeted toward price-conscious customers who frequently do not make plans to make purchases in advance, to entice them to make impulsive purchases [8]. Flash sales can also benefit the online market as they can increase the number of visitors and revenue [11,12].

 

The intensity of consumer spending can be influenced by the consumers' level of positive feeling, which is their mood. Customers are more likely to purchase when they are in a good mood [13]. When consumers experience pleasant emotions, those pleasant emotions will encourage consumers to make purchases on the spur of the moment. On the other hand, when consumers experience unpleasant emotions, those unpleasant emotions will not encourage consumers to make purchases on the spur of the moment [14]. The involvement of positive Emotions that a person feels can result in impulse buying behavior. According to a survey by iPrice in the year 2021 [15], the most popular platform for online shopping is Shopee, which receives approximately 129 million visitors per month. The e-commerce website Tokopedia receives 114 million visitors per month, Bukalapak receives 38 million visitors per month, Lazada receives 36 million visitors per month and Blibli receives 22 million visitors per month. The members of Indonesia's Generation Y are the subject of this study. Likewise, this research is intended to find the effect of flash sales and positive Emotion on impulse buying in Shopee consumers since there is still a relatively limited amount of study that focuses on the impulsive shopping habits of consumers of Generation Y.

 

Literature Review

Flash Sale and Positive Emotion: Bandyopadhyay et al. [16], stated that flash sales affect positive Emotions. In line with the previous Setiawan and Ardani [17] and Quach et al. [18], revealed that there is a positive influence of flash sales on Positive Emotion. Therefore, the research hypothesis can be formulated as follows:

 

  • H1: Flash Sale has a significant effect on Positive Emotion

 

Positive Emotion and Online Impulse Buying

According to the models of positive emotion on impulse buying developed by Mehrabian and Russell, the emotional state created by the physical surroundings is one of pleasure and delight [19]. When customers experience positive feelings while shopping, it will encourage them to make impulsive purchases since it can boost the emotions of consumers to buy something as quickly as possible without planning [13]. Research conducted by [20,21] showed that positive emotion significantly affects impulse purchases. The result is supported by the previous research conducted by Pramestya and Widagda [22] and Setiawan and Sahetapy, [17], that claims that positive emotion has a positive effect on impulse buying. Referring to the explanation, the hypothesis can be formulated as follows:

 

  • H2: Positive Emotion has a significant effect on Online Impulse Buying

 

Flash Sale and Online Impulse Buying

Based on research from Octaviana et al. [23], it exposed those flash sales have a positive and significant effect on online impulse buying. According to Zakiyya impulse buying occurs during a flash sale event These results align with research from Wangi et al. that there is a connection between flash discounts and impulsive purchases. The hypothesis can be formulated in the following way taking into account the findings of the study:

 

  • H3: Flash Sale has a significant effect on Online Impulse Buying

 

Amiri et al. [24], stated that a person who is experiencing more happy emotions at the time of making a purchase will create an increase in the impulse to buy, which means that positive emotions play a key role in determining whether or not a person is interested in getting or purchasing the product. Customers are more likely to make purchases through e-commerce platforms and this sale tends to encourage someone to make impulsive purchases. During the period of the flash sale promotion, customers may feel happy and also feel a little depressed because the flash sale only lasts for a limited time. It can make customers more likely to purchase [25]. Based on research on sales promotion that is linked to impulse buying, it is possible to conclude that buying behavior will occur in consumers when purchasing a product because it is backed by liking, joy, or positive feelings when receiving promotions on the market [26]. Therefore, the hypothesis can be formulated as follows:

 

  • H4: Positive Emotion Mediates Flash Sale and Online Impulse Buying

MATERIALS AND METHODS

Measurement

The design of this research is a causal research design. Data were collected through a 5-point Likert scale questionnaire with responses ranging from 5 strongly agree to 1 as strongly disagree. Flash sales were measured using five items adapted from Martaleni et al. [25]. Positive Emotion uses four items adapted from. In addition, Online Impulse Buying used six-item indicators adapted from [9,27,28].

 

Sampling and Data Collection

Two hundred-five respondents were assigned as the sample of this research. They are all users of the e-commerce platform Shopee who live in major cities in Indonesia (Jakarta, Pontianak, Bandung, Surabaya, Medan, Semarang, Makassar, Pekanbaru, Malang and Palembang) and fall within the age range of generation Y, which is defined by Schmidt as individuals who were born between 1981 and 1994.

 

Data Analysis

This research employed Structural Equation Modeling (SEM) with the AMOS 26 statistical tool to analyze and evaluate the research construct's measurement model and structural model. The fit test model is assessed based on the goodness of fit index parameters such as chi-square (χ2), CMIN/DF, Root Mean Square Error of Approximation (RMSEA), root means squared residual (RMR), goodness of fit index (GFI), Tucker Lewis Index (TLI), Incremental Fit Index (IFI), Comparative Fit Index (CFI), Normed Fit Index (NFI). The validity evaluation will rely on the value of the standardized loading factor (SLF), whose value must be ≥0.50 and the reliability construct will rely on the results of tabulation of Construct Reliability (CR) and Average Variance Extracted (AVE) values. Furthermore, the SEM analysis is the structural models' analysis to assess the research hypotheses and determine whether they are accepted or rejected. The SEM analysis will display the t-count value on each coefficient. A hypothesis is considered to have a causal relationship if the t-count value ≥ t table (1.96) to a significant degree of α (usually α = 0.05).

RESULTS

Respondent Characteristics

The analysis of customer demographic data collected by 205 respondents was obtained based on gender, age, domicile, intensity of use and expenditure of respondents in the Shoppe application. According to the findings of the description of the characteristics of the respondents, it can be seen that the majority of those who participated in this study were female (60%) at the age of 36-38 years (33%) and living in Pontianak (21%), used the Shopee application more than five times in a month (47%) and had a monthly expenditure for the Shoppe application of more than Rp. 300,000 (43%) (Table 1).

 

Table 1: Characteristics of Respondent

CategoryItemsF%
Gender

Male

Female

Total 

82

123

205

40

60

100

Age

 

28 – 31 years old

32 – 35 years old

36 – 38 years old

39 – 41 years old

Total

33

67

68

37

205

16,10

32,68

33,17

18,05

100

Domicile

Jakarta

Pontianak

Bandung

Surabaya

Medan

Semarang

Makassar

Pekanbaru

Malang

Palembang

Total

28

45

20

11

8

18

15

22

17

21

205

13,66

21,95

9,76

5,37

3,90

8,78

7,32

10,73

8,29

10,24

100

Intensity of Online Shopping at Shopee in 1 Month

1 time

2 Times

3 Times

4 Times

More than 5 times

Total

16

27

39

26

97

205

7,80

13,17

19,02

12,68

47,32

100

Costs incurred for shopping at Shopee for one month

< Rp.100.000

IDR 100,000 - IDR 200,000

IDR 200,000 - IDR 300,000

> IDR 300,000

Total

37

49

31

88

205

18,05

23,90

15,12

42,93

100

 

Measurement and Structural Models

Data processing used is the AMOS 26 application to test the suitability of the research model. The results of the data analysis obtained include standardized loading factors, validity and reliability of all questions in the questionnaire that showed in the Table 2.

 

Table 2 is the result of a validity and reliability test of the model's overall value. The standardized loading factor (SLF) value of all indicator variables in the full model is greater than 0.50. It indicates that all indicators are considered valid and capable of measuring the construct of the full model. The reliability test results present corresponding results. All instruments are reliable and can measure constructs of the full model consistently. It is proven from the Avariance extracted (AVE) value of the entire indicator instrument that obtained a ≥ value of 0.50 and a construct reliability (CR) value that obtained a value of ≥0.70.

 

Table 2: Measurement Model Results

 ItemsSLFAVECR
Flash SaleThe amount of discount during the flash sale makes me want to shop online0.8730.852

0.972

 

 

I often follow flash sale promotions when I'm going to buy online0.928
I feel the flash sale promotion gives me a relatively shorter time to make a decision0.933
The limited availability of products on flash sales makes me feel like I have to make a quick decision0.936
The promotions in the flash sale are very interesting0.945
Positive EmotionI feel happy with the discount price provided by Shopee0.949

0.911

 

 

0.981

 

 

 

I am satisfied with the discount price provided by Shopee0.942
I feel comfortable when shopping at Shopee0.964
I was excited when I found products at discount prices at Shopee0.963
Online Impulse BuyingMy purchases of flash sale programs on most online commerce marketplace sites are spontaneous.0.911

0.882

 

0.982

 

My purchases of flash sale programs on online commerce marketplace sites are mostly unplanned0.947
Before visiting online commerce marketplace sites, I usually don't have the intention to purchase a flash sale0.961
I buy what I like without thinking about the consequences0.966
I often buy things without thinking0.949
Sometimes I am a bit reckless about what I buy0.900

 

Table 3 is the result of the fit test model. It has been determined, based on the findings of the fit test model, that the model's condition of fit can be accepted and that it has been declared fit. Six measurements show the degree of goodness-of-fit. Hair et al. state that a research model construct can be declared fit and accepted if three to four measurements obtain a degree of good fit or greater than the cut-off value.

 

Table 3: Goodness of Fit Index

The Goodness of Fit IndexCut off ValueResults
TLI≥ 0.900,924
IFI≥ 0.900,937
CFI≥ 0.900,937
NFI≥ 0.900,923
RFI≥ 0.900,907

 

Hypotheses Testing

The results of the causal relationship test between variables in this study structure are Showed in Table 4.

 

Based on the AMOS processing results shown in table 4, the t-test value for the flash sale variable and positive Emotion obtained a value of 23.630, which is greater than the t-table value (1.96). In addition, the p-value is 0.001, less than 0.05 (α = 0.05). It implied that flash sales positively and significantly influence positive emotions and the first hypothesis is accepted. 

 

For the second hypothesis, the t-test value for the positive emotion variable and online impulse buying is 5.912 and the p-value is less than 0.001, indicating a significant effect of positive Emotion on online impulse buying. Therefore, the second hypothesis was accepted.

 

The third hypothesis showed that the t-test value for the flash sale variable and online impulse buying is 3.204 and the p-value is 0.001. It determines that flash sales positively and significantly affect online impulse buying. It assumed that the third hypothesis was accepted.

 

Table 4: Hypothesis Testing

HypothesesPathEstimateS.E.C.R.PConclusion
H1Flash Sale --> Positive Emotion0,9190,03923,630***significant
H2Positive Emotion --> Online Impulse Buying0,5740,0975,912***significant
H3Flash Sale --> Online Impulse Buying0,2980,0933,2040,001significant

 

Furthermore, the indirect influence of the mediation variables is presented in Table 5, which contains the results of the Sobel test.

 

Based on the Sobel test results in Table 5, the statistical value of the Sobel test was 5.73 and the p-value was 0.001. These results showed that the statistical value of the Sobel test was greater than the t-table (1.96). Likewise, the obtained p-value is less than 0.05 (α = 0.05). It showed a significant indirect influence of flash sales on online impulse buying through positive emotion.

 

Table 5: Sobel Test-Significance of Mediation

ItemsSobel test statisticsTwo-tailed probability
Flash Sale --> Positive Emotion --> Online Impulse Buying5,730,001

 

CONCLUSION

Users of Shopee can be prompted to make impulsive purchases online and experience happy emotions after being exposed to marketing activities such as flash deals. Shopee members of generation Y report significantly higher happiness levels after participating in flash sales. The Flash sale provided by Shopee e-commerce evokes a sense of high consumer fun and a happy mood and as a result, it has the potential to generate positive emotions in Shopee e-commerce [29].

 

It demonstrates that the more the intensity of sales promotion through flash sales, the more it will present a sensation of joy, contentment, comfort and stimulation, resulting in the consumers experiencing a higher level of positive Emotion. Therefore, the Flash sale positively and significantly affects online impulse buying generation Y Shopee users. Zhang et al. [8], explain that flash sales can encourage consumers to buy impulsevely. The growth of perceptions of the scarcity of items and the high value of goods sold due to flash sales, which provide big discounts in a short amount of time and create significant savings, leads to impulse purchasing [25]. 

 

Positive emotion has a positive and significant effect on online impulse buying in generation Y Shopee users. Previous research that looked at the role of emotions in marketing found that emotions play a significant role in the process of inciting impulsive purchasing behaviors. [30,31]. When consumers are content and feel at ease, shopping becomes more fun, increasing the probability that they may make purchases on the spur of the moment or without prior preparation [32].

 

Positive emotion can significantly mediate the influence of flash sales on online impulse buying in generation Y Shopee users. This study's results align with previous research that stated that emotions can mediate flash sales in encouraging consumers to impulse buy [16]. It demonstrates that the frequency of flash deals is directly correlated to a person's level of happiness while shopping which in turn might lead to an increase in impulsive purchases made online.

 

 

Figure 1: Full Model Structural Test

 

Acknowledgment

I appreciate the support of the Faculty of Economics and Business Universitas Tanjungpura in getting this journal published.

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