Cashless Tapping Behavior: Customer Decision-Making Process of Chip-Based Electronic Money in Indonesia

Ervan Togatorop (), Dwiki Satrio Hutomo and Noveri Maulana
Additional contact information
Ervan Togatorop: PPM School of Management, Master in Management
Dwiki Satrio Hutomo: PPM School of Management, Master in Management
Noveri Maulana: Sekolah Tinggi Manajemen PPM, Department of Management Science

A chapter in Proceedings of the 11th International Conference on Emerging Challenges: Smart Business and Digital Economy 2023 (ICECH 2023), 2023, pp 513-528 from Springer

Abstract: Abstract Electronic payments offer secure and convenient fund access, reducing cash and check reliance for merchants and attracting wider customer bases. Non-cash transactions surge, outpacing cash. An electronic money chip securely stores values on a chip or server. This research examines factors driving electronic money development in Indonesia, focusing on chip-based systems. Using the Customer Decision Making Process, consumer behavior in selecting and using electronic money is analyzed. This study deeply explores consumer decision-making behavior in chip-based electronic money usage in Indonesia. Electronic payments replace cash and checks for merchants, drawing more customers. Non-cash transactions grow, propelled by the electronic money chip securely storing values on chips or servers. The core aim is to understand factors driving electronic money growth in Indonesia, with a chip-based focus. The Customer Decision Making Process framework uncovers consumer behavior in electronic money selection and use, aligned with individual needs. Through problem recognition, information search, alternative evaluation, purchase decision, and post-purchase behavior, this research unveils motivations shaping the digital financial landscape. Research purpose: The primary aim of this study is to probe into the consumer decision-making process prevalent in the usage of chip-based electronic money in Indonesia. By comprehending the factors driving consumer choices, their attitudes towards this payment mode, and the holistic decision-making trajectory, this research seeks to illuminate the complex web that guides consumer behavior in this context. Research motivation: The impetus behind this research springs from the burgeoning growth of chip-based electronic money adoption in Indonesia. As this mode of payment gains increasing prominence, a comprehensive understanding of how consumers traverse their decision-making journey holds immense significance for businesses and policymakers alike. By delving into the factors influencing consumer choices and perceptions, this study endeavors to offer insights that can refine electronic money services, shape marketing strategies, and contribute to a deeper comprehension of consumer conduct within the realm of contemporary digital transactions. Research design, approach, and method: Employing a quantitative approach, this study utilizes primary data garnered through questionnaires distributed among chip-based electronic money users. The sampling methodology involves a non-probability technique, specifically purposive sampling, chosen to ensure a deliberate and representative selection of participants. As the research proceeds, the intricate interplay of factors that shape consumer decisions, attitudes, and behaviors in the realm of chip-based electronic money will be unveiled. Crosstabulation, Chi-Square analysis, and Descriptive statistic are presented to answer the research questions. Main findings: Through an extensive exploration of the consumer decision-making process surrounding chip-based electronic money utilization, several key findings have emerged, shedding light on the multifaceted factors influencing user choices and behaviors within the realm of digital financial transactions. Firstly, there is a shared awareness among users across all electronic money chip-based types about the crucial role electronic money chips play in modern transactions, highlighting a paradigm shift towards the recognition of their significance. Secondly, diverse information-seeking behaviors prevail, with users engaging with online platforms and recommendations, underscoring the importance of tailored information dissemination. Moreover, users exhibit a discerning approach during alternative evaluation, considering factors like usability, pricing, and institutional trust, reflecting a nuanced decision-making process. Purchase decisions are notably driven by specific product attributes, such as NFC top-up convenience, aesthetics, accessibility, and affordability. Importantly, post-purchase behavior reveals a continuous cycle of evaluation as users scrutinize electronic money chip based' utility, promotions, discounts, and admin fees. Collectively, these findings provide insights crucial for businesses and policymakers, informing strategies that align with evolving user expectations and contributing to the evolution of electronic money adoption in Indonesia's digital financial landscape. Practical/managerial implications: The research offers actionable insights for businesses, financial institutions, and policymakers in the field of electronic money adoption. Tailored marketing strategies, innovative product attributes, and trust-building measures can enhance adoption. Sustained engagement strategies and collaborations with digital platforms are essential for post-purchase engagement. Policymakers can use the insights to formulate regulations for secure electronic money environments. Embracing continuous innovation ensures relevance. Integrating these implications can lead to increased adoption, enriched experiences, and a robust electronic money ecosystem in Indonesia.

Keywords: Consumer Behavior; e-money; cashless; e-payment; tapmoney (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-348-1_39

Ordering information: This item can be ordered from
http://www.springer.com/9789464633481

DOI: 10.2991/978-94-6463-348-1_39

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().