E-commerce

Zero Moment of Truth: Is it still relevant?

Indonesia is a growing netizen, and we are getting better at using internet, meaning that internet is beyond Facebook or Twitter or chatting. Based on research done 400 dollar loan today, Indonesia netizens’ online habits are more into lifestyle like shopping, news watching/radio listening, and also developing specific communities.

Looking beyond the survey result above, I remember back in 2013 when Indonesia is bursting with internet, somebody from the e-commerce forum I joined wondered if the online shopping will work here this country, especially for the retailer products on loans-cash.net. He asked on bouncy castle the forum, above all the online shopping process & logistics, what made costumers buying online?

What companies should do: putting costumer first.

We are now living in the Age of Customers Influence, where what matters most is that what customers look, perceive, and value the products (or services) the company offers. It is the era where no longer the company or the product determines the positioning in the market, but the costumers.

At first, customers will perceive the products upon packaging, ads on TV or Radio, and other marketing program. Value will be given after using the products, the recurring probability of the products is all based on customers satisfaction. But any ways, digital existence then helps the customers to be smarter Spiderman Bounce House Slide than ever. Tools like social media holds the strong position for the customers to value the products (and services) offered in the market. Purchasing is not only a main behavior for every customers. They will find out if the product will be worth buying.

Zero Moment Truth was first compelled by Google, where customers have the ability to look beyond the products before buying. Digital researching to find reference, benchmark, and evaluation becomes an habitual of customers nowadays; an aspect that every company should be aware of.

Here we analyze 515 JAKPAT Panels about their shopping behavior; what are they actually doing (just searching or really want to buy) and what intention they have to make online purchase.

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From 515 responds we got in half days, it is found that Java become the main province resulting major online purchase. West Java reign the first place by 22.72%, followed by East Java with 16.31% differences, and (surprisingly) Jakarta at the 3rd place by 16.12%, Central Java with 13.01%, to Yogyakarta that came with the stark contrast of 6.02%, a significant lower number than the rest of the above.

Competitiveness Analysis and Development Strategies for 33 Indonesian Provinces (2013) mentioned the fact that the economic growth and the level of background education in Java, especially in Jakarta, East Java and West Java does raise the awareness of its resident in knowing the advantages than any other provinces in Indonesia. But it is interesting to note that Jakarta, as the capital city with the most exposure to growth than other cities, were beaten by West Java and East Java, which means that the growth in infrastructure doesn’t necessarily related to a higher level of awareness in buying products.

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Talking about age demographic, it is reigned by range 18-29, which is understandable, since the younger ones has become the part of “Information Age”. The generation in this part has been nurtured by technologies, totally aware of its importance and how to use it. They don’t hesitate to push any boundaries for innovation, but the most important point to drive the input is “knowledge, not capital”, which means that knowledge is needed to control the technologies that can serve the workers rather than doing repetitive tasks. This further cemented the findings that people between 18-29 years old came with strong desire of information in decision-making, especially when buying products.

ZMOT: What information to what product?

When it comes to information searching, it is found that most panelists are seeking information about gadgets, beating the medicines and even financial products. Referring to the first place in the charts, we have to take ask ourselves a question: what kind of impact does the technology had on us? Since the era of revolution, people keep striving for innovation that can leave their mark on every aspect of human being by abiding to the function for easier, user-friendly and conducting business. Loads of advantages and how it is required even more to keep up with the word nowadays encourage people to avert their attention to gadgets. There are many warnings for people to take the technology “in moderation” and not to strain themselves. It is somehow surprising that clothes, beat the position of medicines, though the importance of being healthy is an obvious thing. The answer to this result can be seen as in the case of consumerism. The rate of consumerism in Indonesia is pretty high; observers conclude that the phenomena of Indonesians still going to the mall and flocking in many shops, even in (supposedly) economic crisis, are a sign that the crisis doesn’t have a big impact on their economic needs, but some rebut by saying that buying many things doesn’t mean you’re rich and healthy. Clothes come in various brands, and besides gadget, it can also serve as an instrument to boost your popularity in the society.

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Each participant were given option of medium he/she use to get the information, and Google, as we all know, got the highest percentage of 95.92%, which makes a huge difference compared to those like recommendations from family/friends/relatives and offline brochures.

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Interestingly here is, opinion and recommendation from closest people matters in taking the decision. This answer takes place 48.35%, which came from the tendency from people to asking for references from someone that know a lot, or even own the product so they can actually explain anything about it that is needed to know. Some might even place the whole decision of buying or not buying after hearing from the first person, usually friend, relative or family, because they couldn’t be bothered by looking for information by themselves.

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Out of four options of devices given, hand phone reign by significant percentage of 85.24%, followed by laptop with recognizably smaller percentage of 45.44%. While computer place third by 32.23%, tablet placed last by 27.77%. People, especially in Indonesia, is moving a lot, where hand phone then become handy and becomes a portable’ version of laptop. Despite all the inconveniences, compared to laptop, hand phone has been used even more often for its practicality in size and specification.   Which is when the matter of size is been brought, why computer reign over tablet? This shows that despite the high possibility in size and practicality, standard of preferences (which is usually different for each person) is also play a good part in the percentage.

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Talking beyond the products, quality becomes the main point of the product when it comes to make a decision to purchase. Some even doesn’t mind the price if the quality is top-notch, or worth it in the terms of quality. Not only for gadget but this is also true for any kind of shopping product, for instance clothes. When someone buy clothes, he/she also check the size, colour, the quality of the fabric and whether the clothes is exactly in fashion or not, and how it fits the body; all of that are called specification. At the third place are the testimonies of the user at 52.04%. This is one of the references that act more as a factor that either reassures the consumer to buy the products or the exact opposite. At the last place, some people are more intrigued in finding the faults of other brands of the same product for comparing which one is better.

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Looking beyond the product information given, the majority of the participants of 74.53% made the decision to purchase the product. The underlining part in this is that 75.53% will choose either to buy it or not, while those who certainly will but it falls on the measly 13.79%. This phenomenon is understandable if we refer to the factor of previous user testimonies, price, and comparing faults with other brand of the same product. Competing with slightly lower percentage is those who often don’t buy the product at 10.1%, and the last that absolutely will not buy the product at 0.58%.

Another decision to purchase is the place. Indonesian people are still in the early stage to purchase online, where we have the gut of “seeing is believing”. There has been a longtime insecure feeling regarding the disadvantages of using online shop: you can’t check the quality of the products you buy yourself, you have to place a huge amount of trust on the seller, the product may have been delivered to the wrong house and worst, a scam. I remember reading the article about Chinese woman buy a fancy dress online which, when arrived, isn’t quite the glamorous gown she thought she was buying. The percentages of those who often buy at offline stores are significantly larger than those who buy the products online. This shows the majority of Indonesians still rely on the traditional way of shopping face-to-face rather than ordering online.

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The last cycle of Zero Moment of Truth is whether you’ll purchase again the product or not. Apparently, the percentages of those who often use the same product are high by 56.7%, followed by those who often don’t by 25.24%. This further show that Indonesians tend to stick to the same product they already acquainted to and doesn’t really search for another product unless the information on the new product is buzzing constantly.

It is also the same when to decide where to purchase. Those who often do lie within the percentage of 60.19%, which is considered pretty high compared to those who often don’t with huge gap of 38.64%, which is the habit of Indonesians in sticking to the same routine that is more convenient, since adapting to new products and stores can be time-consuming.

For more detail you can download XLS report at the button below. JAKPAT report consists of 3 parts which are 1) Respondent Profile, 2) Crosstabulation for each question and 3) Raw Data. Respondent profile shows you demographic profiles ( gendr,age range, locationby province, and monthly spending). Cross tabulation enables you to define different demographic segment preference on each answer.

Click the icon to download XLS report

And if you’d wish to send a survey to JAKPAT’s respondent, let’s request a Sales Quote here!sales quote button

If you’re interested to do survey on retail and consumer goods field toward our respondents, we have over 31,000 mobile respondents ranged from age 17-50 years old, smartphone active users, and located in all regions of Indonesia that has installed our app and readily answering your survey. Those 31,000 respondents has been verified, profiled, and continuously tracked to make sure you get the updated profiles of them. Our respondents has been profiled based on their demographic (age,gender,location, spending level, profession,religion), lifestyle habit (smoking/non, gamers/non, wearing glasses/non, frequent flyer/non, online shopper/non), and also brand consumption level ( brand A users, brand B users in FMCG, Retail, E-commerce,etc). 

If you want to do research toward our respondent, please signup here and directly create your survey there. Or directly contact our Bizdev – partner@jajakpendapat.net. 

To non-Indonesian client, we offer free translation from foreign languages includes English, Chinese,Hindi,etc.

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