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ABSTRACT
This study examines the effect of value shopping and financial literacy on urges to buy and impulsive buying behavior. This study uses a quantitative approach and partial least square (PLS-SEM) to test the hypothesis. The data for this study were obtained from 128 questionnaires of Z-Gen in Indonesia. This study indicates that financial literacy and urges to buy impulsively influence impulsive buying behavior. While value shopping only encourages to buy impulsively but does not affect impulsive buying behavior. However, financial literacy does not involve urges to buy impulsively. This study enriches the knowledge regarding impulsive buying behavior, specifically for Z-Gen, highly attached to the technology. This study also suggests that Z-Gen need financial literacy to control their impulsive buying behavior.
Keywords: Value shopping; financial literacy; urges to buy; impulsive buying behavior.
1. INTRODUCTION
Nowadays, technology is also getting more sophisticated. One of them is the presence of the internet. Since the existence of the internet, most of the activities have been carried out by the internet network. There is no exception in buying and selling activities that are also carried out online or commonly referred to as electronic commerce (e-commerce). One of the advantages of this e-commerce system is that only with the internet buyers can buy the goods they are looking for without having to come and meet directly with the seller. This causes people to choose to transact online because it is instant and practical. Coupled with the COVID-19 pandemic, people have to limit their interactions, making them buy more and more goods online.
We Are Social in April 2021 conducted a survey which resulted that Indonesia occupies the highest position, namely 88.1% of Indonesian citizens using e-commerce services in buying certain products in the last few months. This indicates that the Indonesian people have a very high online shopping intention compared to other countries. This data means that the Indonesian people are no stranger to popular e-commerce such as Tokopedia, BukaLapak, Shopee, Lazada, Blibli, and many more. People's interest in online shopping is instant and practical because there are various attractive offers made by e-commerce. One of these offers is a discounted price. The existence of these offers can encourage someone to make an impulse purchase. Especially someone who has...