GENERATION Y’S COMPLAINT BEHAVIOR TOWARD ONLINE SHOPPING

Megawati Simanjuntak

Department of Family and Consumer Sciences
Faculty of Human Ecology,

Bogor Agricultural University (IPB), Indonesia

E-mail: mega_juntak@apps.ipb.ac.id

Submission: 22/05/2018

Accept: 06/06/2018

ABSTRACT

The purpose of this research was to analyze factors that influence Generation Y’s complaint behavior in online shopping. In general, Generation Y’s consumer of this research have a good perception of consumer rights. In contrast, the result showed that Generation Y in this research had a low complaint behavior. The research found that gender, strivers lifestyle, and number of social media account were influence Generation Y’s complaint behavior in online shopping. The result showed that male student did more complaint than female student. Generation Y who had strivers lifestyle will increase complaint behavior. The more Generation Y had social media account, the more Generation Y prefer to did a complaint.

Keywords: complaint, Generation Y, lifestyle, perception, internet usage

1. INTRODUCTION

The rapid development of technology led to a shift in values and a change in the mindset of consumers on the Internet as an alternative medium of shopping (LESTARI, 2014). Indonesia ranked sixth country of the world's Internet users based on smartphone users with a total of 83.7 million (EMARKETER, 2014).

Research results of Brand and Marketing Institute Research (2014) showed that the average of Indonesian consumer spending for online shopping reach Rp825 000 or around US$ 63 per year. Items which commonly purchased by online consumers are fashion, beauty products, toys, computers, electronics, gadgets, household supplies, software, books, magazines, travel, hotel, DVD, and CD (CHO et al., 2002; DELAFROOZ et al., 2010; VEERALAKSHMI, 2013; KHAN et al., 2014).

Second largest age group of the population of Internet users are 19 to 24 years after the age group > 25 (STATISTIC OF INDONESIA, 2013). This age group is classified as Generation Y and are a potential online shopping consumers (VERONIKA, 2013).

Generation Y were born between 1980 and 1995 with a certain characteristic such are confident, independent, goal-oriented, always up to date with the latest information, and are able to select and adapt technology in various aspects of life, including shopping (ASHRAF et al., 2013; MEIER; CROCKER, 2010; ISMAIL; LU, 2014; LUTHFI, 2014).

Online shopping has the potential to harm consumers in terms of security of transactions, include inconsistency of type and quality of the goods as promised, inaccuracies time of delivery of goods, as well as the insecurity of transactions (NATIONAL CONSUMER PROTECTION AGENCY, 2012).

The weak position of the consumers plus consumer ignorance about where to complain when problems arise add a row of problems facing by online shopping consumers. Referring to Consumer Protection Act Nu. 8 year 1999, there are some consumers’ rights are often overlooked by businesses.

Online consumers have a right to get clear information about the characteristics of the product, the price (cost, hidden taxes, payment deadlines), and the actual condition of the goods (ASHRAF et al., 2013). Social media is chosen by Generation Y as a channel for complaints to vent anger on businesses (CLARK, 2013).

The behavior of consumer complaints arises because of dissatisfaction, complaining attitude, self-confidence, the chances of success to complaints, negative word of mouth, and the intention to switch from the trader. Consumer’s confidence is a key driver of consumers to make complaints (FERNANDES; SANTOS, 2008). The tendency of consumers to complain on online shopping is higher when they do not get a confirmation response when asked (CHO et al., 2002).

Therefore, this study was addressed to: (1) identify the individual characteristics, lifestyles, perceptions of rights and obligations of consumers, and complaints behavior on online shopping of Generation Y’ consumers, and (2) analyze the factors that influence the complaints behavior against online shopping of Generation Y’ consumers.

2. LITERATURE REVIEW AND FRAMEWORK

Generation Y were born in 1986 to 2005 (SHARP; DYE, 2014). Williams and Page (2010) stated that the seven key values of Generation Y are: selection, meticulous, integrity, collaboration, speed, entertainment, innovation, and customization. Generation Y have several terms as the Millennial Generation, Echo Boomers, Why Generation, Net Generation, Gen Wired, We Generation, DotNet, Ne(x)t Generation, Nexters, First Globals, iPod Generation, and iYGeneration.

Generation Y are growing well and wisely at their age. Generation Y were born at the time of the computer and the Internet spread widely at home and at school, mutual respect between ethnic groups and cultures, women are able to work full time, born from a family with a father and a mother who worked, always connected with social media, selfish, independent, and concerned with results rather than the reason behind it.

Consumers choose goods, services, and activities according to certain lifestyle. One's lifestyle can be seen from the activities, interests, and his/her opinion (SUMARWAN, 2011). Mafini et al. (2014) identifies seven shopping style that appropriate to Generation Y, they are quality conscious, brand conscious, fun looking for new things, hedonists, confused due too many choices, habits, brand loyalty, and the fashion conscious. Brands of consumer products purchased by consumers are in line with their lifestyles (KRISHNAN, 2011).

Consumers’ segmentation based on lifestyle according to Wilbanks (2005) research classifies consumers into six criterias, they are: achievers, strivers, fulfilleds, believers, experiencers, and makers.

Consumer’s perceptions on product quality is measured as the determinant factor in choosing the product (ZEITHAML, 1988). Perception is the first impression in the minds of consumers and is the foundation before selecting and interpreting the information into a more meaningful. Consumers will have a different interpretation of the products according to the value of the needs and expectations of consumers (GHANAMATHADAYYA; SRINIVAS, 2014). Consumer’s perceptions will affect the level of customer satisfaction, buying decisions, and decisions of consumers in using products (KAZMI, 2012).

Most of consumers do not have the experience to seek redress and make complaints. A grievance of consumers in making a complaint depends on the circumstances and the size of the loss they felt (THOGERSEN et al., 2003). Research of Thogersen et al. (2003) explains that consumers would have a higher tendency to complain if they have a positive attitude about the complaint that they profess, are increasingly sensitive to shortages or product defects, and the higher the value of the grievances they felt. Cipriana et al. (2010) stated that the dissatisfied consumer will tell their negative experiences to other consumers and change their attitude towards goods or services.

Singh (1988) divides the complaint behavior into three categories, namely voice response, personal response, and third parties’ response. Voice responses means consumer convey a complaint directly to businesses, customer service, or keep silent and does not perform any action.

Private response by exit (leaving the disappointing online shopping), express the complaint verbally to the closest person (negative word of mouth), convey complaints through social media, as well as boycotts on online store and their products.

Third parties’ response is conducted by convey a complaint through the legal system, the media, newspapers, magazines, and authorized consumer organizations. Study of Zain (2011) found that Asian consumers tend not to complain and pick a negative word of mouth (WOM negative) as an alternative to express dissatisfaction.

Consumers will convey complaints when feeling aggrieved. Young consumers, have a high monthly income, both male and female, as well as the highly educated ones would complain when dissatisfied with the goods or services (LIU; ZHANG, 2007; CHEAWKAMOLPAT, 2009; CIPRIANA et al., 2010). Complaints were conveyed because consumers had an unpleasant experience when the performance of the products were under the expectations of consumers (SCHIFFMAN; KANUK, 2008).

Based on previous empirical study, the hypothesis that will be answered in this study are as follows:

H1 : There is a significant effect of gender on the behavior of the complaint

H2 : There is a significant effect of lifestyles on the behavior of the complaint

H3 : There is a significant effect of number of social media accounts on the behavior of the complaint

H4 : There is a significant effect of the perception of rights and obligations of consumer on the behavior of the complaint

Figure 1: Research framework

3. METHOD

3.1. Research Design

This study used cross sectional design with self-report methods. Under graduate students were chosen as research sample due to the student as a consumer have higher education and intellectual, and easier access to information as well as more exposed to information. In addition, students are the representative of Generation Y and belong to the consumer with a lifespan of 19 to 24 years which are the second largest age group of internet users (STATISTICS INDONESIA, 2013). Students like to do online shopping because the ease of shopping (NAZIR et al., 2012; PRATIWI, 2013).

3.2. Population and Sample

The population of this study are active students in Bogor Agricultural University in academic year of 2014-2015. Non-probability sampling specifically snowball method was conducted to choose the sample. One hundred respondents were selected using snowball technique. The criteria that has to be met to be chosen as sample of this study were consumers who conveyed online shopping at least three times with consideration once convey complaints.

3.3. Data Types and Data Collection Techniques

Data research include: (1) individual characteristics (sex and monthly allowances); (2) lifestyle; (3) internet usage (intensity of internet access, number of social media accounts); (4) perception of rights and obligations of consumers; (5) complaint behavior on online shopping. The data obtained through self-report method by using a questionnaire as a tool.

3.4. Instruments and Scale

Measurement’s tool on the perception of rights and obligations of consumers is a modified version of Ishak and Zabil (2012), Bhuian and Enazi (2013), and Zahrah (2014). Consumer’s lifestyle segmentation using VALS2 instruments adopted from Wilbanks (2005). Complaint behavior was measured with a modified instrument of Berry (2013) and Kumar, Sanuri, and Kaid (2013). Several of online shopping sites which frequently accessed was referred to Lukman (2014) that stated the 18 most popular online stores in Indonesia.

Lifestyle was measured by choosing one that best describes the consumer’s lifestyle. Lifestyle that can be selected by consumers are achievers, strivers, fulfilleds, believers, makers, or experiencers. Next, perception of the rights and obligations of consumers was measured by using 15 statements. The scale used to measure perception of the rights and obligations of consumers was four scales, namely "strongly disagree (1)", "disagree (2)", "agree (3)", and "strongly agree (4)". Behavior of complaints on online shopping was measured by using 15 statements using four scales, they are "never (1)", "rarely (2)", "often (3)", and "always (4)".

3.5. Instruments Test

Instrument’s trial was conducted to twenty students that do not chosen as respondents. The reliability’s value of the perception of rights and obligations was 0.885 with 15 valid questions, and reliability’s value of complaint behavior was 0.830 with 14 valid questions.

4. RESULT AND DISCUSSION

Complaint behavior only influenced 9.3 percent by all independent variables (gender, number of social media accounts, lifestyle, and the perception of rights and obligations of consumers). A total of 90.8 percent of the rest is explained by other factors not examined in this study. Gender, number of social media accounts, and lifestyle influence significantly on complaint behavior. Gender influence significantly and negatively as 19.1 percent (β = -0.191; p <0.1).

This suggests that male complain more than female. Number of social media accounts significantly and positively as 17.8 percent (β = 0.178; p <0.1). Lifestyle strivers significantly affect the behavior of the complaint and positively as 20.3 percent (β = 0.203; p <0.05). Therefore, H1, H2 and H3 were supported, whereas H4 was rejected.

Table 1 summarizes the hypothesis testing between the independent variables (gender, lifestyles, number of social media accounts, perception of rights and obligations), and dependent variable (complaint behavior). The regression equation for the model, namely:

Y₂ = 2.173 – 5.968D₁ + 1.531X₁ + 11.209D₂ + 0.172X₂ + e

The above equation shows that male do more complain, every increase of 1 social media accounts would raise the score of the behavior complained as 1.513 points, every increase of 1 scores perception of rights and obligations of consumers would raise the score behavior complained as 0.172 points, lifestyle strivers will raise complaint behavior score as 11.209 points (Figure 2).

Table 1: Summary of the hypotheses

Hypotheses	Statements	Results
Hypothesis 1	There is a significant effect of gender on the behavior of the complaint	Supported
Hypothesis 2	There is a significant effect of lifestyles on the behavior of the complaint	Supported
Hypothesis 3	There is a significant effect of Number of Social Media Accounts on the behavior of the complaint	Supported
Hypothesis 4	There is a significant effect of the perception of rights and obligations of consume on the behavior of the complaint	Not supported

Note: F value = 3.543 (p=0.010); Adj. R²=0.0923; Durbin Watson=2.170; * significant at p<0.1; ** significant at p<0.05

Figure 2: Regression analysis

This study was conducted to address the factors that influence Generation Y’s complaints behavior on online shopping. Online shopping tune young consumers because they do not find the right time and not ready to spend hours and hours to shop (YORUK et al., 2011; ANBUMANI; SUNDAR, 2014).

Results showed that the average intensity of internet access for students a day was 11.03 hours. Survey of Indonesian Internet Service Provider Association (2015) found that 87.4 percent of students used the internet to access the social network with the largest percentage (49%) of internet users aged 18 to 25 years. That age group is the millennial generation (digital natives) who was born when the internet began to be used widely.

Complaint behavior against the backdrop of dissatisfaction, complaining attitude, confidence, chances of success of the complaint, the delivery of negative word of mouth, and the intention to switch from businesses (FERNANDES; SANTOS, 2008).

Consumers filed complaint when the product's performance was below their expectations (SCHIFFMAN; KANUK, 2008). Due to the power of social media, consumers can express disappointment through social networking accounts they owned. Consumers have a new role as publisher and influencers to other consumers (ICO, 2015). A higher consumers’ tendency to complain was shown when they do not get any confirmation response when asked (CHO et al., 2002).

Gender negatively and significantly influences complaints behavior. The finding showed that male students tend to make more complaints than female students.

This is consistent with research of Yuliati and Anzola (2009) that men do more complaints. Hakimah et al. (2010) shows that women prefer a complaint passively. James (2013) states that women are more concerned about the safety and risks of online shopping.

Meanwhile, research Ioanăs and Stoica (2014) explain as much as 80 percent of women make sure the product information before buying. Consumers will find information about products from an online forum, businesses website, facebook account, or a friend's recommendation.

Lifestyle is an integrated system of attitudes, values, interests, opinions, and consumer behavior (SATHISH; RAJAMOHAN, 2012). Consumer with strivers lifestyle has achievement motivation, characteristic of trendy and lovers of pleasures (GHOSH, 2014). Consumers with strivers lifestyle always want to look stylish, are easily bored, impulsive, imitate those charming and wanted to get something that is outside of their range (SATHISH; RAJAMOHAN, 2012).

Strivers lifestyle affected consumers in making complaints. Consumers with strivers lifestyle have the following characteristics, namely low resource availability, status-oriented, have a credit balance, spending money to buy clothes and personal care products, concerned with self-image, and like to watch television (VALENTINE; POWERS, 2013).

Strivers are individuals who are stylish, have a high motivation to achieve, worrying about the opinions of others, with the additional revenue is low (TIDTICHUMRERNPORN, 2010). The increase in consumer incomes will decrease the interest of consumers to verify product to be purchased (IOANĂS; STOICA, 2014). Therefore, strivers will make complaints when an injustice by businesses because they have a low income but want to always look stylish and recognition from others.

Consumer perceptions of rights and obligations are in the very good category. The results showed that complaint behavior was not influenced by their perception of rights and obligations. The results of in-depth interview showed that consumers already have good perception and are very aware of the rights that must be defended as an injustice by businesses.

However, the implementation of the complaint depends on the level of mismatch conditions with product is supposed, product pricing, and procedures for the return or exchange of product. The more complicated procedures to follow, consumers prefer to give up these products and do not make repeat purchase in the store or they switch to another brand. Based on the result, the majority (81%) of students agree that they do not complain because it was considered a waste of time.

Number of social media accounts affected the complaint behavior. This is consistent with the findings of Instanbulluoglu (2013) that consumers who make complaints via social media maximize the benefits they get by minimize the costs. It is also in line with the principle of minimax Kowalski (1996).

Kamerer and Morris (2011) stated that the consumer motivations to make complaints through social media are to increase public participation and make the message more meaningful in achieving its objectives. Making complaints through social media such as facebook and twitter is the easiest way to channel their anger. The results of in-depth interviews found that file complaints through social media make consumers feel relieved, although it is not enough to solve their problem as it is not a major channel to complain.

More than half (55%) students were on very poor category of complaint behavior. Zain (2011) found that Asian consumers tend not to complain and spread negative word of mouth as an alternative to express their dissatisfaction. Online consumers are better at expressing disappointment via social media, but still relatively low in filing a complaint (CHO et al., 2002).

This is in accordance with Cipriana et al. (2010) that consumers do not have enough time to make complaints and lack of confidence that the problem can be solved. Consumers do not make complaints due to two things, namely the consumers are satisfied with the products and services provided by businesses and consumers who are not satisfied but chose not to make complaints (KAU; LOH, 2006).

The results of in-depth interviews showed that low complaint also caused students to be more selective in choosing an online store, so the product they purchase will meet their order and expectation. An easy way they do is to check through google, look at the number of followers, as well as see the comments field and testimonials from other buyers.

Students contacted online shop due to late delivery, wrong size, wrong color, and when the product are not in accordance with the promised conditions. They often tell close friends and family members, when they disappointed. The results of in-depth interviews are in line with Paina and Luca (2011) that consumers communicate directly with businesses, write comments on blogs, websites, online forums, or do not perform any action when experiencing problems in online purchasing.

Djamaludin, Rochany, and Simanjuntak (2008) explained that most of the students tell friends and family regarding disappointment at online purchasing, so that they can be more careful in choosing an online store. The results showed that students remain loyal after the complaint process has been handled well by businesses. In this study, the students also said the same thing, that is not a deterrent to online shopping and make a negative experience as a lesson.

"As consumers, we must be smart. Filing complaint is our right. Sometimes, we will receive compensation, but sometimes we will not. If we have disappointed, it would be better switch to other strore.”

5. IMPLICATIONS, LIMITATIONS AND SUGGESTIONS

The weakness of this study is failed to measure student satisfaction in online shopping. Therefore, it can not be concluded whether the lack of students complaints behavior caused by reluctance to lodge a complaint or they are very selective in choosing trusted online store. Another limitation is the determination of the students do not randomized so that the results can not be generalized to the population level.

The results showed that the student complaint behavior towards online shopping is in very poor category. Therefore, the government and other relevant institutions are expected to make efforts to educate about the importance of defending the rights of consumers by filing a complaint, especially in online shopping.

Governments can work with instagram account indonesia blacklist and www.cekpenipu.com, as well as making the official website of the government to facilitate consumer complaints in online shopping. Future studies are expected to analyze the other factors that can affect the behavior of a complaint that has not been investigated in this study, such as satisfaction, different age groups, different educational levels, channel complaints, type of consumer complaints, and cultural factors.

6. CONCLUSION

In general, Generation Y’s consumer of this research have a good perception of consumer rights. In contrast, the result showed that Generation Y in this research had a low complaint behavior. The research found that gender, strivers lifestyle, and number of social media accounts influenced Generation Y’s complaint behavior in online shopping. The result showed that males consumers did more complaint than female consumers.

Generation Y who had strivers lifestyle will increase their complaint behavior. The more Generation Y had social media accounts, the more Generation Y prefer to complaint. Therefore, the government and other relevant institutions are expected to educate consumers on the importance of defending consumers’ rights by put award a complaint, especially in online shopping.

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