The Use of Artificial Intelligence on Indonesia

Online Shopping Application in Relation

to Customer Acceptance

Fitri Ayu Nofirda1(B) and Mulkan Ikram2

1 Universitas Muhammadiyah Riau, Pekanbaru, Indonesia
[email protected]
2 Bank Nagari, Pekanbaru, Indonesia

Abstract. The fast growth of digital technology has changed the way people shop
online. Researchers and retailers need to know how people react to new technolo-
gies, especially artificial intelligence. The purpose of this study was to assess
consumer perceptions of an AI device’s utility, usability, and purchase intention.
In this study, we suggest the TAM’s expansion for use in the area of e-commerce.
By adding a mediating component, trust, to the original variables of the technol-
ogy acceptance model, the relationship between perceived usefulness, perceived
ease of use, and customer purchasing intention will be adjusted. Using the tech-
nology acceptance model (TAM) as a theoretical foundation, this study examines
customer trust and acceptability of Artificial Intelligence in online buying. The
total number of respondents was 170, and SEM-AMOS was used to analyse the
data, which comprised both the realibility test and structural equation modelling.
The hypothesis was evaluated based on the results of second-order measurement
model. The study’s findings indicate perceived usefulness, perceived ease of use
have a direct influence on customer buying intention. In addition, the research
showed the mediation influence of trust between perceived usefulness and per-
ceived ease of use among consumer online buying. The results of this study that
valuable implications for web shop owners to increase customer acceptance.

Keywords: Perceived Usefulness · Perceived Ease of Use · Artificial

Intelligence · Online Shopping · Buying Intention

1 Introduction
Digital technology has transformed online shopping with its rapid development (Daley,
2018). The use of artificial intelligence (AI) in online commerce has increased in recent
years, as AI is an important tool for meeting rapidly changing customer expectations
and improving sales efficiency (Szabolcs, 2020; Moriset Ahmad et al., 2018; Bacik, R
et al., 2020; Zhiqi Zhu, 2021). The AI system is a combination of software programs
and hardware that represents environmental factors and can be used to continuously
evaluate and analyze data to determine choices and movements (European Commission,
2018). Previous research has focused specifically on the benefits of using AI in the

© The Author(s) 2023

P. Susanto et al. (Eds.): PICEEBA 2022, AEBMR 250, pp. 642–651, 2023.
https://doi.org/10.2991/978-94-6463-158-6_56
 The Use of Artificial Intelligence on Indonesia Online Shopping Application 643

online environment and how consumers are accepting AI in online retail. Based on the
utility theory, this new technology helps customers consider and select the most suitable
products, reducing the cost and time spent searching (Pricewaterhouse, 2018; Bakos,
1977; Stigler, 1961). In addition, the development of technology, artificial intelligence,
augmented reality, augmented fact, and digital fact will assist purchsers needs in a simple
way (Enache, 2018). Due to the fact, they have got less time to save in a physical store,
they will choose to buy merchandise available online.
According to Statistics Indonesia (2021), 32 million people in Indonesia are using
e-commerce. The population has expanded by 88 percent since. 2020, when there were
just 17 million people. The current Covid-19 problem, which forced us to perform many
tasks at home starting in 2020 and accelerated the growth of e-commerce, is one of the
factors contributing to the significant increase in the volume of online commerce. Online
shopping is becoming more popular among consumers, who use it to make purchases,
research products, or simply do some browsing.
Consequently, the interaction between marketers and consumers is more strongly
influenced by online shopping environments. The Internet has transformed the transmis-
sion and processing of information.
Despite the fact that the interactive nature of the Internet has made it easier for
shoppers to make well-informed product decisions, the assimilation of information in the
online shopping environment is a personal education, experience, and and was difficult
depending on the level of cognitive ability. Trust has always been an essential ingredient
in marketing, especially e-commerce (Liao, 2010). Online shopping customers cannot
evaluate the service environment or see or touch the products. Higher risk of purchasing
products in online stores than a physical store (Chio, 2009).
The Theory of Reasoned Action and the Theory of Planned Behavioural form the base
for the technology acceptance paradigm, which attempts to explain behavior intentions to
use information systems. (Grandón, Nasco, & Mykytyn Jr, 2011). According to Lim and
Tang (2012), for instance, there are a variety of predicted impacts across different studies
involving various types of users and systems, and TAM connection findings do not hold
true in all investigations. Some models, to better explain information system adoption,
several models, including the UTAU model (Venkatesh, Morris, Davis, and David, 2003),
have been modified or added to (Pavlou, 2003). In an effort to completely comprehend
online customer attitudes and behaviors, researchers and market practitioners have, for
decades, researched the aspects that influence online consumer attitudes and behaviors.
This research tries to fill this gap by giving information about how people decide to
shop online and how those plans turn into actual ecommerce use. This study will also
look at the effect of trust as a mediator, It may discourage individuals from using online
shopping. By including a mediator variable, the primary variables of the technological
acceptance model will be changed, trust, which is expected to strengthen or weaken the
connection between perceived usefulness, perceived ease of use, and consumer buying
intention.
Based on the study background that has been explained, we formulate 6 research
questions that will be answered in this research.
644 F. A. Nofirda and M. Ikram

The research questions are:

1. Does perceived usefulness significantly influence trust on online shopping applica-
tion?
2. Does perceived ease of use significantly influence trust on online shopping applica-
tion?
3. Does perceived usefulness significantly influence consumer buying intention on
online shopping application?
4. Does perceived ease of use significantly influence consumer buying intention on
online shopping application?
5. Does perceived usefulness significantly influence consumer buying intention on
online shopping application, and is the relationship mediated by trust?
6. Does perceived ease of use significantly influence consumer buying intention on
online shopping application, and is the relationship mediated by trust?
In addition, the purpose of this study might be stated as to investigating the influence
of perceived usefulness and perceived ease of use on customer buying intention on online
shopping application. Moreover, the research also investigates the mediation effect of
trust on the relationship between perceived usefulness and perceived ease of use toward
consumer buying intention on online shopping application.
In this study, We focus mostly on artificial intelligence in relation to online commerce
in Indonesia. Online shopping apps that delivers the product directly over the Internet
and provide adequate information and a user-friendly interface to circumvent channel
intermediaries (Wawan, 2013). Despite the proliferation of online shopping applications
and other online shopping and ticketing sites, there are not many empirical studies
examining the acceptance of online shopping applications. This study is to fill in the
gaps to gain more insight into the adoption of artificial intelligence in online shopping
applications, especially in online shopping.

2 Literature Review and Hypotheses Development

2.1 The Technology Acceptance Model
In the perspective of data system research, the Technology Acceptance Model (TAM) is
a widely used modeling technique. Davis (1989) initially established the Technological
Acceptance Model (TAM), which explains computer usage patterns to predict technology
adoption. The TAM indicates that users’ attitudes and adoption decisions are affected
by their conceptions of a technology.

2.2 Perceived Usefulness

An individual’s appraisal of the utility of a new information technology in a given situ-
ation is the perceived ease of use. Perceived usefulness shows task-related productivity,
performance, and effectiveness according to the TAM model. Perceived ease of use
refers to how simple the user believes the target system should be to use (Davis, 1989).
The concepts of perceived usefulness and perceived ease of use are subjective individual
assessments of the usefulness and simplicity of a certain system.
H1: Perceived usefulness has positive impact trust on online shopping application.
 The Use of Artificial Intelligence on Indonesia Online Shopping Application 645

2.3 Perceived Ease of Use

The perceived ease of use of technologies and systems is an important factor in their
acceptance (Davis, 1989, 1993; Davis, Bagozzi, & Warshaw, 1992; Mathieson, 1991).
TAM has highlighted the issue of perceived usability due to the influence a poor user
interface has on IT technology rejection. (Venkatesh & Davis, 1996). In TAM, perceived
ease of use is the degree to which a person thinks it would be easy to use a certain
system (Davis, 1989, p. 320). Prior research has demonstrated a correlation between
perceived ease of use and consumer attitude towards technology. According to Brill
(2018), consumer satisfaction will increase if digital. Therefore, if this product is simple
to use and interact with, people will likely form a positive attitude.
H2: Perceived ease of use has positive impact trust on online shopping application.

2.4 Consumer Buying Intention

When customers use the Internet, they often form attitudes that influence their propensity
to make online purchases. Therefore, internet usage and feelings about online buying
are strong indicators of whether or not you intend to do so.
H3: Perceived usefulness has positive impact consumer buying intention on online
shopping application.
H4: Perceived ease of use has positive impact consumer buying intention on online
shopping application.

2.5 Trust

The impact of trust on the fulfillment of Internet purchasers may differ by individual.
Castelfranchi and Tan (2002) suggested that online shoppers will not engage in a trans-
action until their level of perceived trust exceeds the minimum acceptable threshold.
Customers are encouraged to do things online because trust makes them less worried
about risks and weaknesses (Salo, 2007). Martinez-Lopez et al. (2005) stated that it is
necessary for online businesses to establish trust and brand equity in order for consumers
to build a purchasing intent on their websites.
H5: Perceived usefulness has positive impact consumer buying intention on online
shopping application, mediated by trust.
H6: Perceived ease of use significantly influence consumer buying intention on online
shopping application, mediated by trust.
646 F. A. Nofirda and M. Ikram

3 Research Methods
This study used a quantitative survey design with closed-ended questions. This study’s
population consisted of Indonesian consumers who used artificial intelligence for online
purchasing applications. We delivered 170 surveys via Google Form to consumers who
used online shopping for this study. The sample sizes meet the statistical requirements.
According Hair et al. (2019) that the sample size should be between 5 and 20 observations
or items to get an alpha of 0.05 and a power of 0.8. In this study, the conceptual framework
and hypotheseswere tested using a method called structural equation modeling (SEM).
Since the study is about the mediation hypothesis, Hair et al. say that a SEM approach
is the best way to test this relationship (2019).

4 Discussions and Results

Using SEM-AMOS, Based on the research by Hair et al., we run a bootstrapped structural
model and a reflective measurement model (algorithm). This study model uses the two-
step estimation as a variable higher order called “trust.” The measurement model is
initially examined for validity and dependability to ensure that it satisfies the standards
for measuring quality.
Hair et al. (2019) suggested a measurement test and quality criteria. All invalid
items were eliminated from the variables, and the data were reexamined to ensure the
measurement model’s validity. The results of the measurement evaluation are available
in (Table 1).

Goodness of Fit
The measurement of Goodness of Fit (GOF) research model is something relative, the
use of several GOF Index allow researcher to get the proposed model. Using three to
four fit models is adequate to show that this research model is acceptable, at least each
one is fulfilled (Hair et al., 2011). Based on the analysis of the model test using SEM
with the evaluation of the GOF criteria in the model test, it can be concluded that the
proposed model is acceptable. These results can be seen in Table 2.
Path coefficient analysis in SEM is used to test the accepted if the significant level
of the relationship between construct variable on the regression weight of the maxi-
mum likelihood estimation has p value <0.05 (Cooper & Schindler, 2011). In addition,
hypothesis was carried out by looking at the critical ratio (CR) value, which was greater
than 1.96 at a significant level of p < 0.05 and 2.58 at a significant level of p < 0.01. It
can be seen from Table 3 that the standardized regression weight of the trust construct
on perceived usefulness is 0.236, p value 0.001.
 The Use of Artificial Intelligence on Indonesia Online Shopping Application 647

Table 1. Measurement Model Indicator

Construct/Items LF CA CR AVE
Perceived Usefulness 0,583 0,86 0,82
PU1 – Using shopping ads and 0,701
online shops that use artificial
intelligence helps me find the best
deals.
PU2 – The use of AI in retail stores 0,691
makes it easier for me to buy things
PU3 – I think it’s helpful that AI is 0,706
being used in retail.
PU4 – Artificial intelligence helps 0,599
me save time in stores where it is
used.
Perceived Ease of Use 0,733 0,86 0,74
PEoU1 - The shopping apps and 0,504
websites driven by artificial
intelligence are easy to use.
PEoU2 - If I use Artificial 0,603
Intelligence to help me shop, I don’t
have to think too much (alternatives
are offered by Artificial
Intelligence).
PEoU3 - When AI recommends 0,681
things to me, shopping is simplified.
PEoU4 - I find it easy to find out 0,662
how to use shopping apps and
websites that are powered by AI.
PEoU5 – It is easy to learn how to 0,532
use shopping apps and web shops
that are powered by artificial
intelligence.
Trust 0,779 0,84 0,64
TR1 - I am certain that that Artificial 0,538
Intelligence is used in retail to make
sure that customers get the best
products.
TR2 – I trust apps and websites that 0,732
use AI.
TR3- I trust that my personal 0,779
information will be kept confidential
when using Apps or web shops that
use Artificial Intelligence
(continued)
648 F. A. Nofirda and M. Ikram

Table 1. (continued)

Construct/Items LF CA CR AVE
Consumer Buying Intention 0,739 0,86 0,75
CBI1 - I intend to use Artificial 0,529
Intelligence in retail (advertising and
web shop)
CBI2 - I intend to continue using 0,668
Artificial Intelligence powered apps
and web shop
CBI3 - I believe the items in 0,612
Artificial Intelligence in retail are
suitable for me to buy
CBI4 - I always talk about retail 0,651
Artificial Intelligence with my
friends
CBI5 - I have an interest in using 0,627
applications and websites that use
Artificial Intelligence.
Notes: LF = loadings factor; CA = Cronbach’s Alpha, CR = Composite Reliability and, AVE =
Average Variance extracted

Fig. 1. Nested model (Structure Equation Modelling)

 The Use of Artificial Intelligence on Indonesia Online Shopping Application 649

Table 2. Goodness of Fit (GOF)

Criteria Reference Value Result Description

Chi-square Small 206,893
RMSEA <0.08 0,068 Good
CFI >0.95 0,893 Good
TLI >0.95 0,872 Good
CMIN/ df <5.00 1,815 Good

Table 3. Loading Value and The Significance of The Structural Relationship Between Construct

Effect Estimate Critical Ratio Standardized P value Description

Regression Weight
Trust ← Perceived 0,453 2,549 0,236 0,011 Significant
usefulness
Trust ← Perceived 1,289 5,645 0,771 0,000 Significant
ease of use
Customer buying 0,303 2,254 0,221 0,024 Significant
intention ←
Perceived usefulness
Customer buying 0,457 2,127 0,383 0,033 Significant
intention ←
Perceived ease of use

The value of trust in perceived ease of use is 0.771, p value 0.000, the value of
customer buying intention on perceived usefulness is 0.221, p value is 0.024, the value
of customer buying intentions towards perceived ease of use is 0.383, p value is 0.033.

5 Conclusions
This study expands our understanding of customer acceptance of artificial intelligence in
online buying in. It was demonstrated that the commonly utilized technology accepatance
model is suitable for assessing customer acceptability of artificial intelligence in online
shopping.
Based on the results of the hypothesis test, perceived usefulness and perceived ease
of use have a significant positive impact on customer buying intention on Indonesia’s
online shopping applications. Therefore use artificial intelligence on online shopping
application in Indonesia recommended to the people that want to buy product on online
shopping application. Improving perceived usefulness and perceived ease of use by trust
on online shopping application will increase consumer trust to use artificial intelligence
on online application. Before people will use artificial intelligence to make online pur-
chases, they need to trust it. If people don’t trust an AI-powered web store or app, they’re
650 F. A. Nofirda and M. Ikram

likely to think it’s not worth as much and have a bad attitude about it. This could cause
a drop in web traffic. Also, AI must provide customized deals for online shopping, i.e.,
products with the best value. It is expected to cut down on the time it takes to find
products, which will make shopping more efficient.

6 Implications

It is currently more important than ever to adapt to customer preferences, customize

the customer experience, and enhance online buying. The findings of this investigation
indicate that artificial intelligence can be a highly beneficial tool for such attempts.
This study has practical applications. Web store owners and those in charge of online
marketing can benefit from understanding how customers adapt to new technologies,
such as when they utilize artificial intelligence to shop online. It is also useful for scholars
and researchers who wish to examine the used Technology Acceptance Model to examine
online shopping.
This study will also be of interest to them who are interested in how trust influences
online decision-making. Regarding future research directions, it would be beneficial to
repeat this study in a multicultural setting. Additionally, it would be useful to evaluate
the model of the Technology Readiness Index established by Parasuraman (2000) and
compare the results reported here to the new findings.

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