1

CHAPTER I

INTRODUCTION

1.1 Research Background

The Internet we know today, plays an integral part in our modern society,

it is a globally connected networking system that allows its users to easily store

and access information of any kind using the Internet (Sharma, 2002). The

existence of the Internet has allowed small businesses and established brands to be

able to utilize the capability of the internet to market products, gain competitive

advantage and extend their target audience at the right timing and in the right

context (Picincu, 2019).

This notion of a connected world through networks of information has

been coined since the early 1900s by the great Nikola Tesla (Andrews, 2013).

Though still a premature concept at the time, the seed of thought for this

worldwide network became a revolutionary beginning for others to build upon. It

was not until the 1960s that the first prototype of the Internet was created by the

US Department of defense called the ARPANET (Emspak & Zimmermann,

2017). The ARPANET however, only allowed their users to communicate within

only a single network. Until the 1990s, the usage of the internet was strictly

confined by the government and was not available to the public. It finally took

shape to a more comfortable interface into the internet we know now, when

2

scientist Tim Berners Lee created the World Wide Web (Andrews, 2013). In

Exhibit 1.1, we can see the progress of the internet since its beginning until today.

Exhibit 1.1 A Brief History of IOT

Source: Braun (2019)

A study by Miniwatts Marketing Group (2019) shows that the number of

active internet users has increased from 1.669 billion people in June 2009 (or

24.7% of the world’s population at this time) to 4.536 billion people in June 2019

(or 58.8% of the world’s population at this time). A study by Simon Kemp (2019)

also shows that during January 2019, 67% of the world’s population were using

smartphones, 45% of the world’s population were active social media users, and

42% of the world’s population were mobile social media users (Exhibit 1.2). In an

increasingly online world, information can be delivered and received in a faster

rate than ever before, and entrepreneurs, marketers and companies alike must be

acutely aware of the current climate surrounding them (Hutchinson, 2019).

3

Exhibit 1.2 Data of Global Mobile, Internet, Social Media Use

Source: We Are Social (2019)

The implications for businesses are that the Internet has allowed

transactions to be possible on a more global scale, in a manner that buyers and

sellers are able to interact much more fluidly with each other despite them being

at a very large distance apart (Ferreira et al., 2017). This bridge in

communication, greatly enhances the economy, where products can be seen

anywhere in the world, 24/7 and transactions to be made with just a click of a

button (Heath, 2017).

Considering the revolutionary advancement of the Internet, smartphones,

social media and its impact on the lifestyle of the world as seen in Exhibit 1.2, an

emerging business is growing faster than ever across the world, e-commerce.

Retailers now face some of the toughest issues ever experienced in the history as

the way consumers are shopping is fundamentally changing, and they must keep

up with technological advancement to do business (Saroja, 2012).

4

E-commerce or electronic commerce also known as e-business is the

transaction of goods and services through electronic communications (Tian and

Stewart, 2006), mainly the Internet, and could be accessed through electronic

devices such as smartphones or computers. E-commerce has been around for over

30 years, but only recently got recognized by the general public in the past decade

or so according to Tian (2006). The first ever recorded e-commerce transaction

was in 1994 where a man sold a CD to his friend through his own website called

NetMarket (Schreiber, 2019). Ever since then, e-commerce has been

tremendously more popular across people around the globe. According to the U.S.

Department of Commerce Statistics (United States Census Bureau, 2019), Brick-

and-mortar sales rose from $2985 billion in 2016 to $3043 billion in 2017, a mere

2% increase while E-commerce sales rose from $390 billion in 2016 to $453

billion in 2017, a 16% increase. It can be observed from the data that Brick and

mortar retail stores are already mature business channels that do not have much

room to grow on, while e-commerce are growing at a much faster rate than their

physical store counterparts.

E-commerce is exceptionally relevant in Indonesia as research states that

revenue from e-commerce sites amounted to 6 billion USD, and expected to grow

by approximately 18% annually in the next 5 years, forecasted to reach 16.4

billion USD of market volume by the end of 2020 in Indonesia (Das et al., 2016).

Up to 78% of internet users in Indonesia have made purchases online an even

bigger percentage in comparison to other countries such as United States with

75% (Exhibit 1.3). There are two types of e-commerce, Business-to-business

5

(B2B), which means that companies conduct business with their suppliers,

distributors, and partners through electronic networks, and Business-to-consumer

(B2C) which means companies sell products and services to consumers for their

personal use and non-business usage (Tian and Stewart, 2006).

Exhibit 1.3 Data of Technology Usage in Indonesia

Source: McKinsey (2019)

6

Consumers prefer to purchase from the Internet as it gives them the

convenience of shopping without having to go to the store, consuming less time

and less effort to buy what they want (Aryanto and Chang, 2019). Another

advantage is that consumers are able to use the Internet to compare prices, look at

the latest products on offer, before making a purchase (Khan, 2016).

In this research we will be discussing the B2C side as in Indonesia, the

population of people projected to have access to Internet and phones to potentially

start purchasing through online platforms are projected to increase to up to 144.9

million people, an increase of 57 million people in comparison to 2015 (Das et al.,

2016), considering the accessible price of phones and mobile data plans. The

range of products or services that could be purchased by consumers are wide, as

researched by Kemp (2019), such as fashion and beauty, electronics and physical

media, food and personal care, furniture and appliances, toys; DIY and hobbies,

travel (such as plane ticket and accommodation), digital music, and video games.

These e-commerce transactions could happen either through social media apps

such as Facebook, or Instagram, or more popularly through online shopping

websites and mobile applications (Kemp, 2019) such as Tokopedia, Bukalapak,

Shopee, Traveloka, just to name a few of the most popular available in Indonesia.

To be able to transform traditional business to e-commerce is not an easy

step but a necessary component of business strategy in this modern era

(Nanehkaran, 2013), considering the potential revenue it would provide.

7

However, for this research, the e-commerce company Tokopedia becomes

an intriguing subject because of its standings as one of the most used online

shopping platforms in Indonesia from data by iPrice Insights (2019), shown in

Exhibit 1.4, its monthly web visits is currently number one throughout 2019, and

data compiled by Kemp (2019) from analytic sites App Annie and SimilarWeb,

states that Tokopedia is currently number one in Indonesia for both the greatest

number of visits and highest number of average monthly active users in 2019,

above all other applications such as Shopee, Bukalapak, Lazada, Jd.id, blibli.com,

Zalora, etc.

Exhibit 1.4 Popularity of E-commerce sites in Indonesia

Source: iPrice Insights (2019)

Within the large amount of internet users and prominence of the e-

commerce experience, a demographic is of interest. A demographic cohort known

as Generation Z, which are those who are born between 1995 and 2010 (Dolot,

2018), are important as they are the first generation to be born during an

interconnected world where the internet first became commonplace, living in a

world where computers have always existed from the moment they are born. This

is important to discuss because marketers must realize that the population of Gen

Z in the world is overtaking the Millennials, becoming the largest population of a

8

generation in the world in 2019 according to a Bloomberg analysis of the UN

World Population Prospects shown on Exhibit 1.5. Considering their proficiency

and lifestyle that revolves around technology, their effects to usage of shopping in

online platforms will be a major impact on the e-commerce industry.

Exhibit 1.5 World population of Millennials and Gen Z in 2018 and 2019

Source: Bloomberg (2019)

There are multiple studies by researchers with differing results in their

definition of what Gen Z’s traits are, and so it is important to identify a single

consistent definition of Gen Z so that there will be no inconsistencies in the

findings of the research, and therefore only research from generational experts are

used in defining Gen Z. As businesses and economy change over the years,

marketing strategies need to be up to date to catch up to contemporary business

practices.

Individuals in Gen Z are born in an already digitized world where major

technological breakthroughs have occurred since they were at a young age such as

the internet of things, laptops, smartphones, freely available networks and social

9

media (Singh & Dangmei, 2016). Being a “digital native”, the generation is very

adept at fast-paced communication, using their digital devices as a means of

communicating with their peers (Dolot, 2018). Dolot (2018) also stated that

digital communication is one of the key factors that drive Gen Z to be what they

are. It has become a habit for Gen Z to share with their peers what products or

services they have first handedly experience through virtual/digital means. This

phenomenon benefits business abundantly as digital marketing has become a

subject which boosts the possibility of increased customer base greatly. It allows

Word of Mouth or WOM for short, to be spread much easier across Gen Z

youngsters through digital media. This fact emphasizes the importance of digital

marketing to capture Gen Z consumers.

The young generation is also skillful in choosing reliable information

through the internet (Dolot, 2018), they are able to easily differentiate false

information with actual ones. The implication of this skill is that Gen Z are able to

search for advertisements related to the product they are interested, making digital

marketing much easier to be done on this generation compared to others.

Yet, with all the benefits comes with negatives. Though with technological

prowess in their general skill sets, Gen Z suffer from attention span deficits and

low aptitude for concentration (Tari, 2010; Giunta, 2017). This shorter attention

span is due to their interdependence for technology and the digitized world. Gen Z

constantly require looking at their gadgets and this is due to habits of having

advanced technology at an early age according to research by Tari (2010). Shorter

10

attention spans imply that marketing strategies that involve deep thought or

concentration prove to be ineffective to Gen Z and so reading quick and easy

online reviews are alternatives they choose to take when choosing a brand, hence

the importance of this study.

Research also shows that Gen Z follows a more traditional characteristic

where they are very sensitive about spending money, need to be informed before

purchasing something and are more skeptical about products (Wallace, 2017).

Data from Accenture also emphasizes on these facts and even shows that Gen Z

are very hardworking individuals who are willing to relocate for an attractive job

and are willing to work long hours for their employer, given that they are given an

appropriate compensation (Lyons, 2017).

Though general characteristics of Gen Z around the world has been

discussed in the previous passage, it is important to note that those discussed are

characteristics of Gen Z around the world, and not Jakarta or Indonesia’s Gen Z

which potentially may have different characteristics. A small-scale study

consisting of a quantitative and descriptive research of 89 respondents by

Dwidienawati & Gandasari uncovers the general characteristics of Gen Z around

Indonesia (Dwidienawati & Gandasari, 2018). The authors have concluded that

Gen Z is a unique generation that needs specific marketing strategies to attract

their attention, considering the circumstances that they were born, in a world

where computers have always existed. Their potential impact to the online

shopping industry shall be of concern for business owners.

11

Home to 261 million lives, Indonesia is the 4th largest populated country

in the world (BBC, 2018). With such a large population and still at a developing

stage of their economy, there are countless opportunities to be had in the country.

Indonesia as a country in particular is an interesting subject for this research. As

of September 2019, Indonesia has the highest usage of e-commerce in the world

in comparison to any other country, with 90% of the country’s internet users ages

16 to 64 are reported to have already experienced buying products and services

online (Kemp, 2019). Survey by GlobalWebIndex shown in Exhibit 1.6 below

shows just how prominent and impactful the e-commerce industry is in Indonesia.

Exhibit 1.6 E-commerce activities in Indonesia

Source: GlobalWebIndex (2019)

It is also worth noting as while Indonesian internet users are comparatively

small to its overall population, they are highly active, having higher average hours

per day on the internet and social media, higher Facebook visitors per internet

users and higher online purchases per active internet users than Americans, who

are among the most technologically literate and technologically active in the

12

world (Das et al., 2016). 95% of buyers in Indonesia also evaluate the products

and service by reading reviews online before making their purchase decision,

from the convenience of their phone (Debora, 2016). Debora (2016) also mentions

that 70% of Indonesian internet users, trust the reviews of other buyers, even

though they do not individually know who the reviewers are. Exhibit 1.6

showcases the data of e-commerce activities in Indonesia.

According to an infographic projection by McKinsey consulting (2017),

Indonesia is predicted to have more than tripled their e-commerce consumers

from 20 million in 2017 to 65 million in 2022, a whopping 325% increase. The

data just goes to show the rapid growth of the e-commerce industry in the country.

Yet with the popularization of e-commerce, comes the downfall of brick and

mortar stores. This is especially a significant problem for brick and mortar sellers

in Indonesia where digital shopping is shown to be the highest in the world.

Businesses who excel at brick and mortar channels of sales are bound to take a hit.

These businesses will need to adapt to these digital changes in the market or else,

they will suffer from economic losses.

Jakarta is of further interest to us as a study by the Statistics Indonesia or

Badan Pusat Statistik (BPS) shows that despite its small geographical size, it has

managed to become the province with the highest Purchasing Power Parity (PPP)

per Capita in all of Indonesia of US $ 57,906 in 2018 (Badan Pusat Statistik,

2019). With the highest market opportunity in all of Indonesia, Jakarta serves as

the utmost important region in the country for businesses and investors to set their

13

sights on, with potentially the most profitable market for e-commerce businesses

to exploit on. Statista (2019) presents data of their forecast of Indonesia’s e-

commerce market in 2022, and how governments and companies can encourage it

in Exhibit 1.7 below.

Exhibit 1.7 Forecast of E-commerce market of Indonesia in 2022

Source: Statista (2019)

Another research conducted by Eliot Simangunsong who is a professor in

a well-known business university in Indonesia called Prasetya Mulia, involves an

in-depth qualitative research involving 23 participants undergoing face-to-face

interviews and has found formidable results in said research. His research

conclusions are as follows; the Gen Z recipients in the research have high priority

to purchase fashion apparels even more so than food and technology, would spend

14

money whenever they had the chance, and half preferred to shop online while the

other, offline (Simangunsong, 2018).

We can deduce that Gen Z are split when it comes to consuming products

offline or online, which is contradictory to what the global research had found

where Gen Z preferred shopping online (VisionCritical, 2018). Gen Z in

Indonesia are also very consumptive which is another contradictory characteristic

to Gen Z in previous research (Wallace, 2017). It is true that Gen Z in Indonesia

are tech natives as well, yet they do not share the same characteristics as Gen Z in

the western world.

Synthesizing all the research findings, we can assume that Jakarta or

Indonesian Gen Z aren’t as similar in terms of characteristics that are found in

other Gen Z research. Gen Z in Indonesia tend to be more consumptive, split in

terms of online shopping preference and are more interested in fashion products

rather than other goods.

With all previously discussed studies about the rise of e-commerce and

Gen Z in Jakarta, it is apparent that marketers must find a fast and informative

way to disperse information in a concise and succinct manner in the online

shopping platform. One very efficient and impactful solution are online consumer

reviews available at e-commerce platforms (Weathers, Swain and Grover, 2015).

Online customer reviews can be defined as “peer-generated product

evaluation posted on company or third-party websites” (Mudambi and Schuff,

2010). It is information presented from the perspective of consumers who have

15

purchased and used the product, including experiences, evaluations, and opinions

(Lee and Han, 2014). Generally, online reviews could be focused on two types

(Cheung and Thadani, 2012), either from online consumer reviews sites (e.g.,

Epinions.com and Tripadvisor.com), or online shopping sites (Amazon.com and

eBay.com). In relevance to our study, online shopping sites most used in

Indonesia according to the most recent data (3rd quarter of 2019) calculated

through monthly web visits, AppStore rank, PlayStore rank, Twitter, Instagram

and Facebook are Tokopedia, Shopee, Bukalapak, Lazada and Blibli (iPrice

Insights, 2019) as shown in Exhibit 1.4.

As for online consumer review sites, the most commonly used applications

are for travels, and culinary reviews, such as Zomato and Qraved for culinary

reviews, and TripAdvisor and Agoda for travel/hotel reviews from fellow

consumers. In the research community, user-made blogs that reviews products,

food, or other experiences is also defined as an online review (Liu et al., 2013).

All these forms of reviews by consumers can be classified as e-WOM, or

electronic word-of-mouth, which has been a relevant topic of research as it has the

potential to influence consumer purchase decisions (Cheung & Thadani, 2012;

Hong, Kim and Lennon., 2018), and its influence in society is growing

significantly considering the availabilities of online discussion forums and social

media, such as Facebook, Twitter, Instagram, and blogs (Hong et al., 2018),

fulfilling the same role as traditional word-of-mouth.

16

These online reviews are seen to be an important source of information

that facilitates consumers to make purchase decisions (Zhang et al., 2014).

Retailers usually encourage consumers to post their experience and opinions about

the product on their online store website (Hong et al., 2018), as the availability of

consumer reviews on a website is seen to have a potential to attract consumer

visits to the site (Mudambi and Schuff, 2010). Not only are online reviews helpful

for consumers, but also for retailers and product designers as it a valuable source

of information that offers real post-purchase experience, satisfaction of product

and the needs and preferences of the consumer (Liu et al., 2013; Hong et al.,

2018).

However, policies of online reviews available in e-commerce platforms in

Indonesia may differ with each other, for example Bukalapak has a policy that

could remove one negative feedback every twenty positive feedbacks as seen in

Exhibit 1.8, and this kind of censorship could have an effect on buyer trust

(Mudambi and Schuff, 2010). Another example such as Zalora, an online-

shopping platform focusing on fashion, do not provide customer reviews at all.

Exhibit 1.8 Feedback policy of Bukalapak

Source: Bukalapak website (2019)

Most of the other e-commerce platforms such as Tokopedia and Shopee do

not interfere with reviews, unless reviewers violate rules such as posting with foul

17

language or profanity is it written on their policy that they will take action, such as

removing the review.

Another key information to understand, not all aspects of online reviews

are positive, and there are several different factors that could affect purchase

intention of consumers of the online reviews. If the perception of the consumer on

online review is negative, for example the lack of trust on reviews made by other

consumers, then online reviews would become a counterproductive tool that could

detract consumers from making effective decisions that lead to product purchase

(Hong et al., 2018).

In this research the authors will use Tokopedia, the number 1 largest e-

commerce retailer in Indonesia, as the platform used for the data collection.

Tokopedia as seen previously in Exhibit 1.4, is the number one e-commerce

retailer in Indonesia. The company sells a myriad of types of products, ranging

from electronics, fashion, books, furniture and much more (Tokopedia, 2019).

Tokopedia has become the biggest electronic mall in Indonesia by creating an

outlet for all sellers in Indonesia to work on digitally. According to the company

themselves, over 1% of all economic transactions in Indonesia occur through their

e-commerce ecosystem (Tokopedia, 2019). This number is ridiculously high when

we take into account that Indonesia’s total GDP in 2019 is US$ 1.11 trillion

(International Monetary Fund, 2019).

E-commerce websites serve as the mediator between these sellers and

buyers and allows themselves to provide a sense of security and trust to both

18

parties, as they know that if the opposing party decides to not play by the rules,

they will be sanctioned by the mediator (Akhlaq and Ahmed, 2014).

Due to Tokopedia’s massive transaction amounts and their infinitely wide

range for types of products is why this research has chosen Tokopedia as a

nucleus for the research to base online reviews on. Some websites such as Zalora

or Lemonilo are mainly focused on certain types of products, Zalora for fashion

and Lemonilo for healthy foods. Thus, Tokopedia is perceived to be the most

ideal e-commerce platform as it contains all types of products.

Several studies had already discussed and documented their findings on

the significance of consumer ratings to sales, for example, a study by Clemons

(2006) found that average ratings of premium products are in fact good predictors

of sales growth. Also, other studies have found that ratings are also good

predictors of ticket sales for movies, and books (Chevalier & Mayzlin, 2006;

Dellarocas, 2003).

However, these studies do not discuss the consumers’ perception of

reviews on the first place nor the significance of information quality of online

reviews in the perception of consumers which should be a top priority to be

studied considering that online reviews are a valuable source of information about

post-purchase satisfaction and experience of the product or service (Hong et al.,

2018). A previous study by Schindler and Bickart (2005) found that consumers

questioned the validity of reviews by how it was written, or the wording used,

which also brings the question whether this negative perception would deter

19

reading activity of the review in the first place. If consumers indeed find reviews

useful, they would have a higher chance to actually read the reviews and it could

convert to the intent to purchase and produce sales. Information quality

characteristics such as incredibility, exaggeration, irrelevancy, and untimeliness

(Hong et al., 2018) are also to be discussed as it affects the consumers’ perception

of quality of review.

This negative perception of consumers review is also caused by an

upcoming issue regarding online reviews, which is the existence of fake reviews,

which can be defined as false, misleading and deceptive communications in a

digital environment which do not reflect the genuinely held opinion of the author

(Hunt, 2014). Hunt also mentions how the existence of fake review may affect the

perception of consumers on the credibility of the reviews, which could potentially

lead consumers to suboptimal purchasing decisions. Considering the reliance of

consumers on online reviews to make their purchasing decisions (Klaus et al.,

2019), research has to be done regarding how consumers’ review reading activity

translates to purchasing intention. Survey by Debora (2016) also found that the

fact is many consumers that are surveyed suspect fake reviews if all the reviews

are positive and none negative in e-commerce sites, which would mean that

negative perception of review quality in does exist.

Nonetheless, different consumers may have a different perception of the

“usefulness” of online review. Isaac (2016) adopts Davis (1989), who defines

“perceived usefulness” as the degree a person believes that using a particular

20

system would enhance their performance, which is online shopping in this case.

Perceived usefulness has been studied to be a determinant for user intentions to

use a system and it is highly important in determining technology usage behavior

(Isaac, 2016) which in this study translates to the importance of perceived

usefulness of online reviews by consumers in using the online review system in

their online purchasing decisions.

The “usage” of online reviews means the “reading activity of reviews”,

that could be concluded as: if the consumers read the reviews of a product and it

affected their purchasing decision, it means that they have used online reviews

and it affected their purchase intention (Hong et al., 2018). The relevance of

reading reviews and intentions to purchase from an online store is also studied by

Hong (2018), and study shows that reading behavior of reviews significantly

influences purchase intention.

This phenomenon discussing the significance of online reviews toward

purchase intention in Tokopedia specifically have been observed in studies such

as those by Kevin (2018), Ichsan et al. (2018) and Agustina et al. (2018) before,

proving that interest of this topic does exist and is worth studying. Agustina et al.

(2018) states that fake online reviews is as a marketing strategy used by sellers in

e-commerce platforms such as Tokopedia and Shopee, and if noticed by readers

could affect the perceived credibility of the seller. Online credibility is an

important aspect of the development of the e-commerce sector (Augustina et al,

2018) and online reviews in such platforms is one of the factors affecting it, and

therefore should be studied upon. Kevin (2018) and Ichsan et al. (2018) has also

21

specifically found the occurrence or phenomena in which online reviews does

affect purchase intention in Tokopedia specifically, further strengthening the need

to study what affects review reading activity of the readers.So, with information

gathered regarding the prominence of e-commerce, the attributes of Gen Z in

Jakarta, and the significant effect of the online review system, this thesis’ goal is

to determine whether negative perception and perceived usefulness of online

reviews by consumers, affects review reading activity and purchase intention in

online stores by Gen Z in Jakarta.

1.2 Research Question

Based on the background this research has discussed, the lack of studies of

online reviews is the problem faced in the progression of e-commerce related

study in Jakarta.

This thesis focuses on the following problems:

1. Does Gen Z’s negative perception of review quality affect their

purchasing intention.

2. Does Gen Z’s perceived usefulness of online reviews affect purchasing

intention.

3. Does Gen Z’s negative perception of review quality affect review

reading activity.

22

4. Does Gen Z’s perceived usefulness of online reviews affect their review

reading activity.

5. Does Gen Z’s review reading activity affect their purchasing intentions.

1.3 Research Aim

The basis of this research stems from the idea that online reviews are a

contemporary platform for consumers to outlet their experiences and thoughts

over certain goods or services. In recent years, there has been an upsurge of usage

for these reviews and they are becoming more and more prevalent by time (Klaus

& Changchit, 2019), whilst their impacts towards Gen Z’s purchasing behavior is

still left unexplored in Indonesia. This lack of study regarding Indonesia’s

Generation Z is concerning to many businesses that wish to market their products

or service to them. Hence, this thesis aims to identify what are the effects along

with the extent of how negative perceptions of online reviews and perceived

usefulness of online reviews can affect consumer’s purchasing intention for

Generation Z consumers in Jakarta area in Indonesia.

1.4 Research Objectives:

The researchers of this study have come up with 5 relevant objectives that

this thesis hopes to accomplish:

1. To understand the effects of negative perceptions of review quality on

Gen Z’s review reading activity

23

2. To understand the effects of negative perceptions of review quality on

Gen Z’s purchasing intention

3. To understand the effects of perceived usefulness of online reviews on

Gen Z’s reading review activity

4. To understand the effects of perceived usefulness of online reviews on

Gen Z’s purchasing intention

5. To understand the effects of review reading activity on Gen Z’s

purchasing intention

1.5 Scope and limitations of the research

The scope of research will specifically include only people who identify as

Generation Z who lives in Jakarta. The questionnaire will mainly be distributed to

young university undergraduates in the year 2019, hence, the population sample

of Gen Z will be leaning to participants aged 18-22 but does not limit other

possible samples as the survey is widely distributed. A specific Indonesian e-

commerce platform known as ‘Tokopedia’ will be the subject for the research.

24

1.6 Systematic Outline

To clarify the outline of the overall research paper, a systematic outline

that contains the writing material is needed. The systematic outline is as below:

CHAPTER I: INTRODUCTION

This chapter discusses the research background, research questions,

research aim, research objective, scope and limitations of the research, and

systematic outline.

CHAPTER II: LITERATURE REVIEW

This chapter discusses the theoretical framework of the research, and

therefore what will be discussed are: discussion of each of the variables,

previous studies regarding the relationship between the variables,

hypotheses proposed, and the research model.

CHAPTER III: RESEARCH METHOD

This chapter discusses how the research is done, and therefore describe

the: research design, analytical method of the research, types and data

sources, population and sample, descriptive analysis, validity and

reliability testing, operational definition, pre-test, and hypothesis testing

method.

25

CHAPTER IV: FINDINGS AND ANALSYSIS

This chapter discusses the findings and analysis of the research, conducted

with method discussed in the previous chapter and, items discussed are:

respondents profile, descriptive statistics, validity test, reliability test,

hypothesis testing, and results of hypothesis testing.

CHAPTER V: CONCLUSIONS AND SUGGESTION

This chapter discusses the conclusion of the research, managerial

implications, limitations and suggestions on how further studies could be

conducted.