Implementation of Construal Level Theory (CLT) on Indonesian Customers toward Domestic as well as Overseas Online Shopping

Abstract

The purpose of this study is to analyze the psychological distance of Indonesian consumers when buying goods online. There is one theory and four variables involved in this study: Construal Level Theory (CLT), Psychological distance, Trust, Perceived value, Purchase intention. The population selected in this study are Indonesian online shop consumers who are classified as domestic online customers and overseas online customers. The population of this study is all Indonesian consumers who have an interest in and or have purchased online products domestically and or abroad. The number of samples used in this analysis is 318 for domestic customers and 331 for overseas customers. The primary data used in this study were uploaded to the internet site using Google Forms. Sampling was done by means of non-probability sampling and purposive sampling. The survey was shared through social media such as Line, WhatsApp, Line, Facebook, and Instagram. The statistical analysis used by SEM uses Partial Least Square (PLS) with the WarpPLS 7 edition program. There are six hypotheses a and b, relating to domestic online consumers and overseas online consumers. All hypotheses based on statistical analysis are accepted, except for hypothesis 3b which shows that they are rejected. From the results of this analysis, there are very interesting findings for Indonesian consumers who buy products online.