pISSN: 2723 - 6609 e-ISSN: 2745-5254
Vol. 5, No. 11, November 2 024 http://jist.publikasiindonesia.id/
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4864
Online Grocery Shopping Intentions:
A Comparative Study between Gen Millenials and Gen Z in
Indonesia
Felicia Vionita1*, Roger Alexsander Siburian2
Universitas Bina Nusantara, Indonesia
Email: [email protected]1*, [email protected]2
*Correspondence
ABSTRACT
Keywords: online grocery
shopping;
generational; comparison
Indonesia market.
This study focuses on behavioral intentions in buying
groceries Online. This research also aims to compare the
factors influencing Gen Millennial and Gen Z consumers.
This research applies the Technology Acceptance Model
(TAM). The hypotheses used are perceived usefulness,
perceived ease of use, and perceived enjoyment of online
grocery shopping. This research uses a survey to collect
data from 199 respondents, 98 are millennials and 101 are
Gen Z in Indonesia. The results showed that perceived
usefulness and perceived enjoyment have a significant
effect on online grocery shopping intentions in Gen
Millennials and Gen Z, while perceived ease of use only
affects online grocery shopping intentions in Gen
Millennials.
Introduction
The COVID-19 pandemic has changed many people's behavior patterns, including
online shopping activities, especially online grocery shopping. In Indonesia, during the
PSBB (large-scale social restrictions), many online grocery start-ups emerged such as
SayurBox, TaniHub, Segari, and Traveloka Mart that received funding from investors.
However, over time only a few online grocery start-ups were able to survive.
According to information from CNN Indonesia (2022), Traveloka Mart was only able to
operate for six months, this was marked by officially closing the service in March 2022.
In addition, the same phenomenon also happened to the start-up company Bananas
which stopped its operations after operating for ten months (CNN Indonesia, 2022).
HappyFresh temporarily stopped in the context of business restructuring due to default
on obligations but resumed operations in September 2022 after obtaining funding.
Segari laid off 24 percent of its employees in January 2023, and SayurBox also laid off
its employees in 2023 (CNBC, 2023).
Online Grocery Shopping Intentions: A Comparative Study between Gen Millenials and
Gen Z in Indonesia
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4865
This phenomenon is contrary to the results of a survey conducted by (Advisor,
2024) Where the market size of online grocery is estimated to grow at a CAGR of
24.7% in the period 2024-2030. This growth estimate is also in line with the results of a
survey conducted by TGM Consumer Sentiment Report in Indonesia 2024 that reveals a
significant 31% of respondents indicate their intention to increase spending on
necessities and groceries over the next three months. In more detail, Based on the total
number of respondents, 38 percent of Gen Millennials agreed to do their grocery
shopping online, followed by Gen Z at 26 percent.
Research that has been conducted by (Shameer, 2019) Revealed that Millennials
and Gen Z are highly dependent on the use of technology in their lives, this can include
choosing how they shop for groceries. According to Databoks (2022), the largest
population in Indonesia is dominated by Gen Z (27.94%) and Gen Millennials
(25.87%). Gen Millennials and Gen Z's dependence on technology and their large
population is the reason for this research to focus on Gen Millennials and Gen Z in
Indonesia.
Gen Millennials is a generation born between 1981 and 1994 and grew up in the
internet era. (Robinson, 2017) This generation grew up in a world that was changing
rapidly in terms of the economy, ecology, politics, society, and technology. (Tri
Marhendra Rahardyan et al., 2023). Millennials have grown up in an online and social
network society. They are familiar with computers, the internet, and graphical user
interfaces (GUI) (Ruangkanjanases et al., 2021).
Gen Z is the generation born between 2000 and 2010, known as the first
generation to grow up in a globally linked society and be accustomed to technology and
instant information as the iGeneration or the internet generation. (Tri Marhendra
Rahardyan et al., 2023). Gen Z also has sophisticated and complex visual abilities,
producing many visual learning techniques.
A characteristic of Generation Z is their native use of technology. If millennials
are considered the “digital pioneers”, who witnessed the explosion of technology and
social media, then Gen Z was born in a world at the peak of technological innovation -
where information can be accessed quickly and social media is increasingly available.
(Jin, 2010).
Previous studies have shown that there are some factors in the technology
acceptance model (TAM) affecting the purchase intentions of online buyers towards
online groceries. Research conducted by (Mondal & Hasan, 2023) On online grocery
shopping after the COVID-19 pandemic using the Technology acceptance model
(TAM) theory found that there was a significant influence of perceived usefulness,
perceived ease of use, and shopping habits during COVID-19 on online grocery
shopping intentions but only focused on Gen Millennials in Bangladesh. Besides,
research conducted by Ruangkanjanases (2021) comparing Thai and Indonesian
millennials in adopting online grocery shopping through TAM shows that there is an
influence of social influence, perceived usefulness, and perceived ease of use on
the intention to purchase groceries online. There has been no comparative study
Felicia Vionita, Roger Alexsander Siburian
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4866
investigating consumer intention to adopt online shopping between millennials and Gen
Z in Indonesia before.
The purpose of this study is to identify the direct impact of perceived usefulness,
and perceived ease of use on online grocery shopping intentions, especially among Gen
Millennials and Gen Z in Indonesia by adding perceived enjoyment as an additional
indicator by recommendations from previous research. This research is expected to be
able to answer whether there is the same influence between Gen Millennials and Gen Z
with several different characteristics as mentioned above.
Method
Sample and Data Sources
The research design used in this study is quantitative research with non-
probability sampling techniques, while the method used is a purposive sampling method
because the sample is selected based on certain considerations, in this study those
selected as samples are people who have done online grocery shopping which is divided
into two generations: 14 to 29 years old as gen millennials, while 30 to 44 years old as
gen Z. (Pradhana et al., 2024). Determining the sample size is based on the sample-to-
item ratio, with the ratio should not be less than 5 to 1 (Gorsuch, 1983; Hatcher, 1994;
Suhr, 2006). In this study, the number of indicators or items used is 14 times so there
must be at least 70 samples. To collect data using the structured questionnaires. The
questionnaire contains two types of questions such as demographic questions and close-
ended questions, signifying the constructs.
Measures
The dependent variable online grocery shopping intentions uses constructs
adapted from (Abdullah et al., 2016). The independent variables perceived usefulness
and perceived ease of use are also adapted from (Abdullah et al., 2016) Investigating the
influence of the most commonly used external variables of TAM on students’ Perceived
Ease of Use (PEOU) and Perceived Usefulness (PU) of e-portfolios. Perceived
enjoyment adapted from Hasan (2021). Each variable is measured ordinally with a five-
point Likert scale taken from Sugiyono (2013), with weight one as strongly disagree,
while weight five as strongly agree.
Data Analysis
Data analysis used Partial Least Square (PLS) with Smart PLS 4.0 as the analysis
tool. After the required data was collected, PLS was chosen for the study because it uses
indicators to measure each construct and the measurement model is structural.
The PLS analysis program is divided into two parts: Measurement model analysis
and Structural analysis. Measurement model analysis is used to define the measurement
of latent variables and aims to measure the reliability and validity of the measurement
model (Hair,2021). Meanwhile, Structural model analysis is useful for showing the
interrelationships among latent variables in the form of a structured model (Hair,2021).
Online Grocery Shopping Intentions: A Comparative Study between Gen Millenials and
Gen Z in Indonesia
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4867
Results and Discussion
Demographic
The sample data collected was 199 respondents using questionnaires distributed
via Google Forms. Based on the data collected, 51% are aged 14-29 years as Gen Z and
49% are aged 30-44 years as Millennials. If divided by gender males 42%, females
58%. Based on educational background, it is dominated by Bachelor (S1) as much as
85%, followed by students at 8%, then Master (S2) at 7%, and finally Doctor (S3) as
much as 1%. Based on occupation, it is dominated by private employees 75%, students
10%, self-employed 9%, others 6%. Finally, based on area, most respondents are in
Jabodetabek 96%, and the remaining 4% are outside Jabodebatek.
Measurement Model
The study used a two-step approach to data analysis, where confirmatory factor
analysis (CFA) is performed to ensure the quality of data and proposed constructs, and
PLS-SEM is used to test the causal relationships between constructs. The convergent
validity value is seen from the outer loading on endogenous and exogenous variables.
The recommended value is >0.7. The AVE value is expected to be> 0.5. In this study,
all indicators already have an outer loading value> 0.7 in Table 1 for Gen Millennials
and Table 2 for Gen Z. Furthermore, the reliability test is based on the CR> 0.7 and CA
> 0.7 values (Sarstedt et al., 2021). In this study, composite reliability and Cronbach's
alpha are above 0.7. Therefore, these variables are considered reliable.
Table 1
Measurement model result in Gen Millenials
Construct / Items Factor
Loadings
Cronbach’s
Alpha (ɑ)
Composite
Reliability
(CR)
Average
Variance
Extracted
(AVE)
Perceived Usefulness
Online grocery
shopping would be
helpful in my life
0,736
0,726 0,847 0,650
Online grocery
shopping would
improve my life
0,772
Online grocery
shopping would
increase my
productivity
0,901
Perceived Ease of Use
Online grocery
Shopping makes it easy
to get what I want to
purchase
0,823
0,688 0,826 0,613
Online grocery
Shopping would be
flexible shop
0,719
Felicia Vionita, Roger Alexsander Siburian
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4868
Online grocery
shopping would be
clear and
understandable
0,802
Perceived enjoyment
Online grocery
shopping would be
enjoyable
0,864
0,812 0,888 0,726
Online grocery
Shopping would be
interesting to me
0,837
Online grocery
Shopping would
enhance my excitement
0,857
Online grocery Shopping intentions
I intend to continue to
shop online in the
future
0,879
0,785 0,875 0,700
I intend to purchase
from online sellers in
the future
0,768
I intend to continue
online grocery
shopping next few
years
0,859
Table 2
Measurement model result in Gen Z
Construct / Items Factor
Loadings
Cronbach’s
Alpha (ɑ)
Composite
Reliability
(CR)
Average
Variance
Extracted
(AVE)
Perceived Usefulness
Online grocery shopping
would be helpful in my life 0,741
0,726 0,845 0,646
Online grocery shopping
would improve my life 0,837
Online grocery shopping
would increase my
productivity
0,830
Perceived Ease of Use
Online grocery Shopping
makes it easy to get what I
want to purchase
0,786
0,723 0,842 0,640
Online grocery Shopping
would be flexible shop 0,813
Online Grocery Shopping Intentions: A Comparative Study between Gen Millenials and
Gen Z in Indonesia
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4869
Online grocery shopping
would be clear and
understandable
0,801
Perceived Enjoyment
Online grocery shopping
would be enjoyable 0,836
0,821 0,893 0,736
Online grocery Shopping
would be interesting to me 0,871
Online grocery Shopping
would enhance my
excitement
0,866
Online grocery Shopping intentions
I intend to continue to
shop online in the future 0,883
0,844 0,905 0,762
I intend to purchase from
online sellers in the future 0,859
I intend to continue online
grocery shopping next few
years
0,875
Figure 1
Measurement Model Gen Millenials
Felicia Vionita, Roger Alexsander Siburian
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4870
Figure 2
Measurement Model Gen Z
Structural Model Analysis
After justifying the reliability and validity through the measurement model, the
goodness of fit indices of the theoretical framework is assessed using the structural
mode. The Coefficient of Determination (R-square) value in the Gen Millennial is 0,7.
While in Gen Z 0,3. This means that the variable relationship to the Gen Millennial is
moderate because it is above 0,5, while the variable relationship to Gen Z is weak
because it is only above 0,25. The cross-validated redundancy (Q^2) value for
Millennials' online grocery shopping intention variable is 218,126 and for Gen Z is
182,839. Because the value is greater than 0, it can be concluded that the model
prediction is relevant to the dependent construct. This implies that the model can predict
without using a sample. The result of the NFI value in Gen Millennials is 0,706 and the
NFI in Gen Z is 0,680. Because all NFI values are <0,9, it means that the model is fit for
testing (Hair, 2018). Based on the SRMR value, Gen Millennial is 0,093 and Gen Z is
0,089. Because the SRMR value is <0,1. Thus, it can be concluded that this research is
included in the fit category (Hair, 2018).
Hypothesis Testing
Based on the T-test, the following are the results of hypothesis testing:
Table 5
Hypothesis Testing Gen Millenials
Table 6
Hypothesis Testing Gen ZT statistics
(|O/STDEV|) P values Path
Coefficient Result
H1b : Perceived Usefullness -> Online Grocery Shoping Intention 3,701 0,000 0,396 Supported
H2b : Perceived Ease of Use -> Online Grocery Shoping Intention 0,549 0,583 0,055 Not Supported
H3b : Perceived Enjoyment -> Online Grocery Shoping Intention 2,455 0,014 0,282 SupportedT statistics
(|O/STDEV|) P values Path
Coefficient Result
H1a : Perceived Usefullness -> Online Grocery Shoping Intention 2,039 0,042 0,228 Supported
H2a : Perceived Ease of Use -> Online Grocery Shoping Intention 2,086 0,000 0,251 Supported
H3a : Perceived Enjoyment -> Online Grocery Shoping Intention 4,923 0,037 0,447 Supported
Online Grocery Shopping Intentions: A Comparative Study between Gen Millenials and
Gen Z in Indonesia
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4871
Figure 5
Hypothesis Testing Gen Millenials
Figure 6
Felicia Vionita, Roger Alexsander Siburian
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4872
Hypothesis Testing Gen Z
H1a, H2a, and H3a are supported. Perceived usefulness, perceived ease of use,
and perceived enjoyment have T statistics values greater than 1.66 and p-values smaller
than 0.05. Indicates a significant influence on online grocery shopping intentions in Gen
Millennials. H1b, H3b supported. Perceived usefulness and perceived enjoyment have T
statistics values greater than 1.66 and p-values smaller than 0.05. Indicating a
significant influence on online grocery shopping intentions in Gen Z. While H2b is not
supported means that perceived ease of use does not have a significant effect on online
grocery shopping intentions in Gen Z.
Based on the path coefficient value in Gen Millennials, the perceived enjoyment
variable has the highest value compared to other variables, meaning that perceived
enjoyment has a strong and positive influence on online grocery shopping intentions.
This is based on the (Cohen, 1998) that a path coefficient value >0.35 means a strong
influence. In Gen Z, the highest path coefficient value is on the perceived usefulness
variable. This means that perceived usefulness has a strong and positive influence on
online grocery shopping intentions in Gen Z.
Gen Millennials and Gen Z are generations that are familiar with the use of
technology in everyday life. However, there are still differences in the timing of
technology adoption. Gen Z is a native of the digital generation, while Gen Millennials
are still in the transitional period between digital and conventional. Gen Z grew up with
more advanced technology and easier access to information than Gen Millennials. They
are also better able to cope with technological issues and adapt to digital devices faster
than Millennials because they tend to have access to multiple sources of information. As
such, Gen Z tends to be more accustomed to seeking answers or solutions
independently.
Perceived enjoyment is a factor that influences Gen Millennials and Gen Z in
online grocery shopping intentions, in line with research conducted by Tujom (2021).
Indicating that online shopping activities must be fun and interesting for them because
they are used to activities on social media. So online grocery platforms need to create
interesting and fun activities that create excitement when shopping for groceries online.
Such as complementing it with games, sales discounts, and gift coupons for online
transactions.
In addition, online grocery shopping can make their lives easier and increase their
productivity in their busy schedules due to their productive age. Therefore, the first two
factors, perceived enjoyment, and perceived usefulness, are the main factors in online
grocery shopping intentions.
This study also shows that perceived ease of use significantly affects online
grocery shopping intention in Gen Millennials, but it has no significant effect on Gen Z.
This indicates that Gen Z, which is a generation born in the digital era, does not think
that the ease of use of technology does not affect their intention to use it because they
are familiar with technology and can find solutions independently, while Gen
Millennials still think that ease of use still plays an important role.
Online Grocery Shopping Intentions: A Comparative Study between Gen Millenials and
Gen Z in Indonesia
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4873
Conclusion
This study has several limitations, leaving several potential areas for future
research. First, this research was conducted over a limited period, while future research
could be conducted over a longer period. Second, this study only focuses on the Gen
Millenials and Gen Z, so these findings cannot be generalized to all customers. Third,
this study only uses perceived usefulness, perceived ease of use, and perceived
enjoyment as predictive variables, while future research can explain the effects of
customer satisfaction, trust, and security as predictors of online grocery shopping in
Indonesia.
Felicia Vionita, Roger Alexsander Siburian
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4874
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