CONSUMER EMPOWERMENT
INDEX OF ELECTRONIC PRODUCT BUYING
Megawati Simanjuntak
Faculty of Human Ecology
Bogor Agricultural University (IPB), Indonesia
E-mail: mega_juntak@apps.ipb.ac.id
Shafira Anissa Putri
Faculty of Human Ecology
Bogor Agricultural University (IPB), Indonesia
E-mail: shafiraanissa7@gmail.com
Submission: 03/04/2018
Revision: 11/04/2018
Accept: 25/04/2018
ABSTRACT
The purpose of this research was to analyze the influence of
demographic, social and economic characteristics towards the consumer
empowerment of electronic products. The research used cross-sectional study
with an online survey of 100 respondents. Data were analyzed using descriptive
and inferential analysis. Descriptive analysis used to identify the
demographic, social and economic characteristics of the sample and the consumer
empowerment index. The inferential analysis used in this study include
chi-square test and logistic regression. The level of consumer empowerment in
electronic products only 41.78 that belongs to a capable category. The largest
index was found in goods selection dimension (88.33) and the lowest (6.4) on
behavior complaint dimension. The result of this study showed that female,
early-aged adult (18-40 year), higher education, employed, income between Rp2
000 000-Rp3 000 000 per capita per month, origin from the urban area, and
family size ≤ 4 were the most empowered consumers. Only two of six variables significantly affect
consumer empowerment, namely age and education. Age has a negative and
significant effect on consumer empowerment, while education has a positive and
significant effect on consumer empowerment of electronic products. Based
on the results of the research, it is necessary to raise awareness of consumers
to be able to choose the brand of local products. Also, consumers need to use
their rights as consumers to be able to file complaints if they experience
disappointment or loss when buying electronic products.
Keywords:
Consumer Empowerment, Electronic
Products, Socio-Demographic Characteristics
1. INTRODUCTION
According to the Central
Board of Statistics in 2014, the number of households reached 64,771.60. Also,
human needs as a consumer, especially households cannot be separated from the
various needs of life. The increasing of socio-economic life of the community
makes tertiary needs are essential (ZULKARNAEN, 2008).
Next, consumers are
currently in an increasingly complex market with more information as well as an
increasingly diverse selection of goods and services (SIMANJUNTAK, 2014).
According to the research of Nurhayati and Elisabeth (2011), there were 30
cases of consumer losses in trade and 31 cases of losses in property and
services trade, where most cases were property business (36%), vehicle sales
(20%), food (16%), and household appliances (8%).
The low awareness of
consumers about their rights triggers the lack of ability of consumers to
protect themselves from fraudulent business actors (ISHAK; ZABIL, 2012).
According to a survey conducted by the National Consumer Protection Agency,
consumers in Indonesia prefer to remain silent if they get products or services
that do not meet their expectations.
The survey results in
Indonesia showed that the average of Consumer Empowerment Index (CEI) in
twenty-two provinces was still low, i.e., 31.05 with an average in urban
(33.46) higher than rural (28.15) areas (SIMANJUNTAK; YULIATI, 2016).
According to Simanjuntak (2014), consumers are
empowered to make optimal decisions, understand their preferences, know their
rights, recognize when their rights are violated and lodge complaints and
redress. According to survey results, consumers tended not to know the laws and
consumer protection agencies and do not file complaints when they feel
aggrieved (SIMANJUNTAK; YULIATI, 2016).
Some ways to lure consumers
include by way of sale, sweepstakes, gift giving or get attention to the
product or business (ZULKARNAEN, 2008). Cases in electronic commodities are in
8th ranked with 4.56 percent by the year of 2015 (INDONESIA CONSUMER
PROTECTION FOUNDATION, 2016).
Consumer awareness of
complaints, the level of information and consumer education, and consumer
assertiveness in using electronic devices was still not good. This is because
consumers feel that complaints cannot solve the problem, complaints are not a
habit and complaints make someone uncomfortable (APRILLIANTY; WARDANA, 2014).
According to Ngai et al.
(2007), demographic factors play a significant role in the behavior of consumer
complaints. Demographic is the science of the human population regarding size,
density, location, age, gender, race, livelihood, and other statistics (KOTLER;
ARMSTRONG, 2001).
Based on the above problems,
it is necessary to empower consumers for instance by establishing consumers who
can submit their complaints when harmed and can assert their rights (NARDO et
al., 2011). Meanwhile, research on consumer empowerment was still limited.
Investigations on consumer empowerment conducted by Mubarokah (2015) that
focused on the empowerment of consumers in general products and
Simanjuntak (2014) focused on consumer
empowerment on packaged foods.
This research will
investigate consumer empowerment on electronics product. This study aimed to
identify the profiles of consumer empowerment on electronics product and
analyze the influence of demographic, social and economic characteristics on
consumer empowerment on electronics product.
2. LITERATURE REVIEW AND FRAMEWORK
2.1.
Consumer
empowerment concept
Consumers can be empowered through various sources, either through
government regulation or consumer education (HUNTER; GARNEFELD, 2008).
According to Shibly (2009), empowerment is the process of giving individuals
more control by placing boundaries around areas of behavior that are
potentially acceptable and allowing individuals to make various choices.
The Commision Staff Working Paper of Brussels (2011) stated that
consumer empowerment is a function of knowledge, skill, and firmness of the
consumer, and the protection, rules, and institutions designed to support when
the consumer plays a role. Consumers are empowered, among others, knowing their
obligations as consumers, knowing and affirming their rights, being able to
identify the best price and quality, understand their preferences and available
choices, recognize when their rights are violated or recognize the unfair
practices of business actors (SIMANJUNTAK, 2014).
Nardo et al. (2011) identify an important element in defining
empowerment, i.e., consumers should be aware of their decisions when making a
purchase, consumers should be able to obtain information about their rights,
and consumers should have access to advocacy and settlement mechanisms.
According to Shibly (2009), four factors shape the process of consumer
empowerment such as adjustment and personalization, flexible pricing, pre and
post-purchase service, trust and regulation, as well as communication and
information flow.
Consumer empowerment is one of the efforts undertaken to provide
guidance on buying behavior of goods and services to be effective (SHIBLY,
2009). Decision making focuses on five stages, including problem recognition,
choice search, alternative evaluation, purchasing and result of satisfaction or
dissatisfaction toward purchased product/service (PRASAD; JHA, 2014).
According to Article 1 Sub-Article 2 of Regulation of the Minister
of Trade of the Republic of Indonesia No. 19 / M-DAG / PER / 5/2009 concerning
Registration of Manual and After-Sales Guarantee Manuals and Warranty Cards in
Indonesian language for Telematics and Electronics Products states that
"consumer electronics products used in domestic life."
The electronic device is one of the most tertiary needs of human
beings. In addition to the warranty card, there are other things that need to
be paid attention to the consumer, it is the fulfillment of standards that can
also benefit consumers in terms of quality, competitive goods prices and the
safety of the usage of goods that already meet the Indonesian National Standard
(SNI) or international standards set by related regulators regulated in
Government Regulation No. 102 of 2000 on National Standardization.
Indonesian National Standard aims to facilitate trade transactions
and protect the interests of consumers and enhance the competitiveness of
Indonesian products in global markets, as the worldwide market emphasizes the
importance of applying product quality standards (NATIONAL STANDARDIZATION
BOARD, 2009).
2.2.
Relationship
of demographic characteristics and consumer empowerment
Demographic characteristics are closely related to consumer
complaints behavior (YOGA; WARMIKA, 2013). Gender affects the behavior of
consumer complaints (HEUNG; LAM, 2003). Age has been shown to have a
significant relationship with consumer complaints behavior.
Research by Ngai et al. (2007) showed a significant correlation
between age and consumer complaints behavior. Simanjuntak research (2014)
showed a significant difference in the basic skills of consumers in choosing a
lower price between different respondents of urban and rural areas. One
indicator of cultural factors is the tradition of consuming the public
influence on consumer purchasing decisions (GIANTARA; SANTOSO, 2014). Based on
the analysis of previous researchers, hypotheses are followed:
H1a: Gender has a significant effect on consumer
empowerment
H1b: Age has a significant effect on consumer
empowerment
H1c: Location has a significant effect on consumer
empowerment
2.3.
Relationship
of social characteristics and consumer empowerment
The level of education related to the behavior of consumer
complaints. Education level affected significantly on the empowerment (RAHMAN;
NAOROZE, 2007). Based on the research of Yulianti and Anzola (2009), the level
of consumer education complaints was in the middle to the upper level.
Employment status affected significantly on consumer empowerment
(GHOLIPOUR et al., 2010). According to Nardo et al. (2011), inactive consumers
were less empowered than those who employed. The status of employment differs
markedly between the two employment status groups on consumer empowerment in
the consumer skill dimension (SIMANJUNTAK, 2014).
The level of education and employment status determined the level
of empowerment (GHOLIPOUR et al., 2010). Based on the previous research,
hypotheses are :
H2a: Education has a significant effect on
consumer empowerment
H2b: Employment status has a significant effect on
consumer empowerment
2.4.
Relationship
of economic characteristics and consumer empowerment
The economic factor plays an essential role in increasing
empowerment (THAPA; GURUNG, 2010). Consumer empowerment was affected by income
(SIMANJUNTAK, 2014). Simanjuntak study (2014) found that the higher consumer
income in the urban area would increase the consumer empowerment index.
Based on the research of Yulianti and Anzola (2009), there was a
significant relationship between income and consumer complaints behavior as one
of the dimensions of consumer empowerment. The income also related to consumer
purchasing power. Consumers who spend a more expensive cost tend to make an
in-depth observation of the product to be purchased. Based on the analysis of
previous research, here are the hypotheses:
H3: Income has a significant effect on consumer
empowerment
2.5.
Research
framework
Based on the empirical research, a conceptual framework suggested
that characteristics of demographic, social and economic effect on consumer
empowerment in Figure 1.
Figure 1: Research framework
3. RESEARCH METHODOLOGY
Respondents in this study were family
members of either women or men aged 18-60 years with a history of purchasing
electronic products at least three times in the last five years. A total of 165
consumers responded through online survey within two weeks. After screening the
questionnaires, 65 incomplete and repeat inquiries. As a result, a total of 100
usable responses had collected that under the required criteria and data
completeness.
The sampling technique used convenience
sampling. The online survey has several advantages such as ease of data
collection, input, and handling of data automatically, increased response
rates, low cost, and take a short time (SINCERO, 2012). Nardo et al. (2011)
also used online survey method in their consumer empowerment research.
The questionnaires were distributed
online to some areas in Indonesia, including Bogor, Bandung, Palembang,
Jakarta, Pekanbaru, and Padang. Researcher spread links containing questionnaires
to the public through groups in social media applications (Line, Whatsapp,
Instagram, Facebook, Twitter, and Path).
Data collected through the online
questionnaire include demographic characteristics (gender, age, and location),
social characteristics (level of education and employment status), as well as
the economic characteristic (income). Consumer empowerment was measured using
instruments adapted from Simanjuntak (2014). The Consumer Empowerment Index
(CEI) consists of three buying stages, namely pre-purchase, at purchase, and
post-purchase.
The instrument
of consumer empowerment (Cronbach alpha 0.879) adopted from Simanjuntak
(2014). The tool then modified according to the focus of electronic products. After
instrument testing, the reliability of consumer empowerment instrument yielded 0.877. It means that the tool
used in previous research and this research were good and can be
trusted as data gathering tool (Table 1).
Table 1:
Reliability and validity of research instrument
|
Dimensions of consumer empowerment |
Number of questions |
Cronbach alpha |
Validity |
|
Information Seeking |
6 |
0.855 |
0.684**-0.800** |
|
Knowledge of consumer
protection law and organizations |
5 |
0.660 |
0.414**-0.765** |
|
Selection of goods |
8 |
0.190 |
0.554**-0.833** |
|
Purchase Behavior |
6 |
0.051 |
0.339**-0.685** |
|
Preferences of local
products |
12 |
0.362 |
0.412**-0.651** |
|
Tendency to talk |
11 |
0.809 |
0.766**-0.881** |
|
Complaint behavior |
12 |
0.945 |
0.460**-0.673** |
Scoring is given according to the scale used in each of the variables
studied. Consumer empowerment used various scale such as correct (score one)
and not correct (score zero); know (score one) and do not know (score zero);
yes (score one) and no (score zero), as well as local products (score one) and non-local products (score zero).
The three-point Likert scale was used to measure the questions that
describe the intensity or frequency of the assessment namely never (score one),
sometimes (score two), often (score three) and always (score four). Next, after
scoring process for each item, sum up for each dimension was performed, so that
composite score was produced. After that, a transformation of a composite score
for each dimension performed to generate an index by using below formula :
Actual score – Minimum score
Index =
x 100
Maximum score – Minimum score
Note :
Index: scale
between 0 to 100
Actual
score: score gain by respondent
Minimum
score: the lowest score that
supposes to be gained by respondent
Maximum score:
the highest score that supposes to be gained by respondent
The above process produce the index for
each dimension. To obtain the index of consumer empowerment, each index of
dimension was weighted. Some
considerations were taken in weighting each dimension of consumer empowerment.
Knowledge was judged to be lower in weight than skill and behavior. Next,
complaint behavior was judged to be the highest due to complain effort was the
highest consumer protection that can be done by consumers.
The weighting comprises of 20 percent
for information seeking, 10 percent for knowledge of consumer protection law
and organizations, 5 percent for preferences of local products, 15 percent for purchasing behavior, 5 percent for the tendency to talk
and 40 percent for complaining behavior. After obtaining the index of consumer
empowerment, the researcher categorized the index into five groups, namely:
conscious (CEI score 0.0-20.0), understanding (CEI score 20.1-40.0), capable
(CEI score 40.1-60.0), critical (CEI score 60.1-80.0) and empowered (CEI score
80.1-100.0). Next, this study performed logistic regression to analyze the influence of characteristics of
demographic, social and economic toward consumer empowerment index.
4. RESULTS AND DISCUSSION
The results showed that most of the respondents (89%) were in the
early adult category (18-40 years) with the average age of the respondents as a
whole was 26.9 years (Table 2). The highest percentage of female sex was female
(68%) than male (32%). More than half of respondents (69%) had 4-6 family
members. Six out of ten respondents (61%) were from urban areas. Based on the
results of research, the majority (44%) of respondents come from the Javanese.
Based on the data obtained, the largest percentage of highest education (58%)
is 12 years.
The average length of education of respondents is 13.7 years (high
school graduation). Based on the results of the study, more than half of
respondents in this study were not employed (59%). The results showed that the
average income of the respondent family was Rp2 672 000 per capita per month
with the largest percentage being in the range of more than Rp3 000 000 (32%).
Thus, it can be said that the respondents in this study have a high level of
income.
Table
2: Profile of respondents
|
Characteristics
of Respondents |
Percentage (%) |
Mean±SD |
Min-Max |
|
Gender |
|
|
|
|
Male |
32.0 |
0.68±0.46 |
|
|
Female |
68.0 |
|
|
|
Age Category (year) |
|
|
|
|
Early Adult (18-40) |
89.0 |
26.99±10.38 |
18-60 |
|
Mature Adults (41-60) |
11.0 |
|
|
|
Geographical location |
|
|
|
|
Rural |
39.0 |
|
|
|
Urban |
61.0 |
|
|
|
Level of education |
|
|
|
|
Senior High School |
58.0 |
13.73±2.13 |
12-18 |
|
Diploma / Academy |
9.0 |
|
|
|
Bachelor |
26.0 |
|
|
|
Master |
7.0 |
|
|
|
Employment status |
|
|
|
|
Student |
59.0 |
|
|
|
Business |
6.0 |
|
|
|
Private employees |
17.0 |
|
|
|
State Employee |
16.0 |
|
|
|
Professional Workers |
2.0 |
|
|
|
Income/Pocket Money (Rp/month) |
|
|
|
|
<1 000 000 |
14.0 |
2 762 000
± 21142.6 |
200 000 –
9 000 000 |
|
1 00 000 – 1 999 999 |
31.0 |
|
|
|
2 000 000 – 3 000 000 |
23.0 |
|
|
|
> 3 000 000 |
32.0 |
|
|
4.2.
Consumer
Empowerment Index (CEI)
Figure 2 display the average index of consumer empowerment and its dimensions. The index
for each dimension provided by transforming the composite score into an index
(scale from 0 to 100) as explained in the method. The
results of the research in Figure 2 shows that the Consumer Empowerment Index
(CEI) on electronic products is 41.8 out of 100.
The dimension of complaint behavior is the dimension with the
lowest average index compared with other dimensions. This is caused by 96.0
percents of respondents included in the category of very less in complaints.
The dimension of goods selection is the dimension with the highest average
index (88.33). This is because consumers of electronic products can already
choose good electronic products by the needs and attributes of electronic
products.
Figure 2: Average of
consumer empowerment index and its dimensions
Consumer empowerment
is a multifaceted concept that includes skills, competencies, and rights, as
well as the ability of consumers to collect and use information and market
capabilities to provide legal and practical protection (NARDO et al., 2011).
Consumer empowerment is one of the efforts to inform about the buying behavior
of goods and services to consumers (SHIBLY, 2009).
The index of consumer
empowerment in electronic products was 41.78 and belong to a capable category.
Compared with the results of the study Nardo et al. (2011) which states that
consumer empowerment in 29 countries in Europe achieved to 51.31, the findings
are still low. The results of this study are higher than Simanjuntak and
Yuliati (2014) with a difference of 3.15 points.
According to Nardo
et al. (2011), essential elements of empowerment that consumers should be aware
of their decision when buying should be able to obtain information about their
rights and should have advocacy and compensation access. Based on these
results, the average respondent is only in a category capable and considered
less empower. These findings are because the percentage of respondents' complaints
behavior is very high in the category of less (93%) to make the index of
consumer empowerment to be low.
More than half respondents have reached the capable category (58.0%). That
is, the majority of respondents can use the rights and obligations of consumers
but has not played an active role in fighting for consumer rights. Only two
percent of respondents have reached the critical category (Figure 3).
Figure 3 : Category of electronic consumer empowerment index
There
are four factors that shape the process of consumer empowerment such as
adjustment and personalization, flexible pricing and service pre and
post-purchase, trust and information flow communications (SHIBLY, 2009).
Consumer electronics empowerment categories that have reached the category
capable of showing that consumers have been able to make adjustments and
personalization at the time of purchasing electronic products.
The flow
of communication and information also forms a process of consumer empowerment.
Based on the results of research, the dimension of complaint behavior (6.4) has
the lowest index; it shows that the consumer communication flow related to
electronic products has not been intensive so that the consumer empowerment
process has not been maximized. However, in the information seeking dimension
(82.22) has the highest index, it indicates that consumer electronic products
are good in finding information related to electronic products.
This
research does not further discuss the reason why respondents did not complain.
But due to Zulkarnaen (2008), the Indonesian people are more trying to get
goods that are useful for life and activities cheaply without considering how
the quality of electronic goods and how it will be done after the sale of
electronic goods.
4.3.
Correlation
between Consumer Empowerment Index (CEI) Category and demographic, social and
economic characteristics
Based on the correlation test between Consumer Empowerment Index (CEI) category and
demographic, social and economic characteristics, chi-square analysis shows that overall variables did
not correlate significantly (p>0.1) with the category of consumer
empowerment index (Table 3). Only education correlates significantly (p<0.1)
with Consumer Empowerment Index (CEI) category, it means that the level of
education somehow will contribute to the CEI index. Even though the direction
of the contribution could not identify based on the p-value.
Table 3 : Chi-square analysis of respondents characteristics and
consumer empowerment index category
|
Chi-Square (p
value) |
||
|
Sex (0=male;1=female) |
0.598 |
|
|
Age (0=≤ 25 years; 1= > 25 years) |
0.747 |
|
|
Geografical location (0=rural; 1 urban) |
0.557 |
|
|
Education (0=Moderate education; 1=higher education) |
0.085 |
|
|
Employment (0=not employed; 1=employed) |
0.130 |
|
|
Income (0=<2 million rupiah; 1= ≥2 million rupiah) |
0.496 |
4.4.
Regression
result
The logistic regression analysis performed due to non-fulfillment
of normal data distribution requirement for multiple regression analysis. As an
independent variable, consumer empowerment transformed into binary namely
capable and above (dummy 1) for index > 40 and unable for index ≤ 40 (dummy
0). Simultaneously, six variables significantly affect consumer empowerment
with the nagelkerke R2 value of 14.3 percent. That is, for 14.3
percent consumer empowerment is influenced by the variables in the study, while
85.7 percent influenced by other variables that were not examined (Table 4).
Tabel
4: Logistic regression result
|
Independent variables |
B |
Wald |
Sig. |
Exp(B) |
Result |
|
Sex (0=male;1=female) |
-0.318 |
0.489 |
0.484 |
0.728 |
Not
support H1a |
|
Age (0=≤ 25 years; 1= > 25 years) |
-1.520 |
4.188 |
.041** |
0.219 |
Support
H1b |
|
Geografical location (0=rural; 1 urban) |
0.327 |
0.505 |
0.477 |
1.386 |
Not
support H1c |
|
Education (0=Moderate education; 1=higher education) |
1.046 |
2.796 |
0.094* |
2.847 |
Support
H2a |
|
Employment (0=not employed; 1=employed) |
1.143 |
2.299 |
0.129 |
3.136 |
Not
support H2b |
|
Income (0=<2 million rupiah; 1= ≥2 million rupiah) |
-0.339 |
0.275 |
0.600 |
0.713 |
Not
support H3 |
|
Constant |
-0.130 |
0.024 |
0.878 |
0.878 |
|
Ket :
Consumer empowerment (0=below capable; 1=capable and above); *significant at
p<0.1; ** significant at p<0.05; Nagelkerke R2=14.3
4.5.
Hypothesis
testing
4.5.1.
Relationship of demographic characteristics and
consumer empowerment
The result shows that the
hypothesis is not supported overall on the influence of demographic
characteristics on consumer empowerment. The gender has no significant effect
on consumer empowerment. The results do not support hypothesis 1a and are
inconsistent with other studies suggesting that sex has a significant effect on
empowerment (KOBERG et al., 1999).
According to Handoyo and
Setiawan (2015), gender affects the empowerment of consumers; women tend to
complain than men. Meanwhile, the age of has a negative and significant effect
on consumer empowerment. Means that the younger respondents would have the
higher consumer empowerment index.
The result supports
hypothesis 1b and in line with Simanjuntak and Yuliati (2017) which found that
age affects consumer empowerment. Sofyan (2017) also explained that age had a
significant effect on consumer empowerment. According to Handoyo and Setiawan
(2015), age influenced consumer complaining behavior, which belongs to one
dimension of consumer empowerment.
Other explanation that
shows the older age of respondents will lead to the decreasing of consumer
empowerment index is due to the older tend to more difficult to access
information and more accept the dissatisfaction by not complaining. Conversely,
the younger consumers tend to be enjoy to seek information and more responsive
to dissatisfaction by filing complaints toward the actors. This makes the
younger respondents will be more empowered.
Geographical location has no significant effect on consumer empowerment.
The results do not support hypothesis 1c and are not in line with
Chandrasekar's (2012) study that geographical location affected empowerment.
Ekanem et al. (2006) explained that geographical location is important in the
search for information about the product, in this case, is part of consumer
empowerment.
4.5.2.
Relationship of social characteristics and consumer
empowerment
The result shows that the hypothesis is not supported all on the
influence of social characteristics on consumer empowerment, but only supports
the level of education (H2a). The result shows that the level of education has
a significant effect on consumer empowerment.
This is in line with the research of Rahman and Naoroze (2007) which
stated that the level of education affected empowerment. Other research of
Sofyan (2017) also stated that highly educated respondents are more empowered
than secondary education level.
According to Simanjuntak (2014), high formal education could improve
consumer empowerment. This is because high education has the opportunity to
provide better skills and a more critical understanding so that it can be more
productive and empowered (RAQUIB et al., 2010). Respondents who succeed in
education to a higher level will be more open to their thoughts and insights on
consumer issues (SIMANJUNTAK, 2014).
Highly educated respondents will be easier to access information and be
aware of their rights and responsibilities as consumers that make them more
empowered than less educated consumers.
Based on the results of research, the employment status does not affect
the consumer empowerment. This finding does not support hypothesis 2b and is
inconsistent with Gholipour et al. (2010) which stated that employment status
affected consumer empowerment. Nardo et al. (2011) also reported that
unemployed consumers were less empowered than those who employed.
4.5.3.
Relationship of economic characteristic and consumer
empowerment
The result shows that the hypothesis is not supported by the economic
characteristics of income. Income does not affect consumer empowerment; this
does not support hypothesis 3 and not in line with other research, Simanjuntak
(2014) stating that consumer income would increase consumer empowerment. The
amount of income will be related to consumer purchasing power.
Consumers who will spend a more expensive cost tend to make in-depth
observations of the product to be purchased (SIMANJUNTAK 2014). Based on the
research of Yuliati and Anzola (2009), there was a significant relationship
between income and consumer complaining behavior. Sofyan (2017) revealed that
the higher consumer income would increase the consumer empowerment index. Also,
Thapa and Gurung (2010) also explained that the economic factor is a factor
that plays an essential role in improving empowerment.
5. CONCLUSIONS AND SUGGESTIONS
The respondents in this
study were dominated by the early adult (18-40 years old), living in urban
areas, high school of education, and the average income of Rp 2 672 000 per
capita per month. The average of consumer empowerment index on electronic
products is 41.78 with the highest index was goods selection dimension (index
88.33), and the lowest was complaint behavior dimension (index 6.4).
Only two of six variables
significantly affect consumer empowerment, namely age and education. Age has a
negative and significant effect on consumer empowerment, while education has a
positive and significant effect on consumer empowerment. The younger and the
higher education of respondents will contribute to the higher the consumer
empowerment index.
6. IMPLICATION AND RESEARCH LIMITATION
This study provides scientific contributions in the field
of family science and consumer social characteristics, demography, economics
and consumer empowerment, especially on online purchases. For the government, especially
for Consumer Dispute Settlement Agency, Directorate of Standardization and
Consumer Protection, Ministry of Trade of the Republic of Indonesia and
Consumer Protection Agency can become an input in formulating policies and
programs about consumer empowerment.
Based on the result of research, consumer empowerment on
the electronic product is still low especially on the complaints behavior and
local brand preference. So that, the effort is needed to increase consumer
awareness to be able to choose a brand of domestic product, and consumers need
to use their right as a consumer to be able to complain when faced
disappointment or loss when purchasing electronic products.
As consumers must be aware of protecting themselves
independently to be able to avoid the unfair practices of the producers. To
establish a smart and consumer empowerment has required the socialization of
rights and responsibilities of consumers through education directly or
indirectly through the internet or social media as a source of information
accessible to consumers, so it will build consumers who dare to use their
rights as consumers and complain when harmed.
The limitation of this study is the result could not be
generalized at the population level due to nonprobability sampling conducted in
this study. Methods of data collection used online-based survey that allows
respondents to find the correct answer first. The absence of in-depth
interviews with consumers makes the researcher unable to identify the reason
why respondents do not complain about electronic products. Therefore, this
study cannot describe the wider diversity of factors that affect consumer
empowerment.
REFERENCES
APRILLIYANTI, A. A. S. M. E.;
WARDANA, M. (2014) Relationship of demographic characteristics with complaint
behavior. Journal of Udayana University Management, v. 3, n. 8, p.
2378-2391.
CHANDRASEKHAR, B. (2012) Consumer Buying Behaviour and Brand Loyalty in
Rural Markets: FMCG. IOSR Journal of
Business and Management, v. 3, n. 2, p.50-67.
COMMISION OF THE EUROPEAN COMMUNITIES. (2007)
EU consumer policy strategy 2007-2013:
Empowering Consumers, Enhancing Their Welfare, Effectively Protecting Them,
Brussels. [internet] [downloaded 15 November 2016]. Available at: http:
//ec.europa.eu/consumers/overview/cons_policy/doc/EN_99.pdf.
DOMESTIC TRADE POLICY CENTER. (2013) Analysis of SNI Development in the Framework
of Supervision of Goods Supply [intenet]. [downloaded February 10, 2017].
Available at: www.kemendag.go.id/.../laporan-akhir-analisis-1425035988.pdf.
EKANEM, E.; MAFUYAI, M.; TEGEGNE, F.; MUHAMMAD, S.; SINGH, S. (2006)
Consumer trust in extension as a source of biotech food information. Research in Brief, v. 44, n. 1.
GHOLIPOUR, A.; RAHIMIAN, A.; MIRZAMANI, A.; ZEHTABI, M. (2010) Impact
Model of Women’s Empowerment. International
Business Research, v. 3, n. 1, p. 57-65.
GIANTARA, M. S.; SANTOSO, J. (2014) Influence of culture, sub culture, social class, and perception of
quality to behavior of decision of purchasing traditional cake by the student
in Surabaya [thesis]. Surabaya (ID): Universitas Kristen Petra Surabaya.
HANDOYO, R.; SETIAWAN, P. (2015) The influence of demographic characteristics and dissatisfaction on the
behavior of consumers complaining on service workshop Yamaha motorcycle
Diponegoro Denpasar Bali. Journal of Udayana University Management, v.
4, n. 10, p. 3317-3345.
HEUNG, V. C. S.; LAM, T. (2003) Customer complaint behavior towards
hotel restaurant service. International
Journal of Contemporary Hospitality Management, v. 15, n. 5, p. 283-289.
HUNTER, G. L.; GARNEFELD, I. (2008) When does
consumer empowerment lead to satisfied customers ?: Some mediating and
Moderating Effects of the Empowerment-Satisfaction Link. Journal of Research for Consumers, v. 15, n.
1, p. 1-4.
INDONESIA CONSUMER PROTECTION FOUNDATION. (2016) Consumer complaints 2015. [internet]. [downloaded on February 20,
2017]. Available at: http://ylki.or.id/2016/01/bedah-pengaduan-konsumen-2015/.
ISHAK, S.; ZABIL, N. F. (2012) Impact of
consumer awareness and knowledge to effective consumer behavior. Journal of Asian Social Science,
v. 8, n. 13, p. 263-296.
KOBERG, C. S.; BOSS, R. W.; SENJEM, J. C.;
GOODMAN, E. A. (1999) Antecedents and outcomes of empowerment. Group
Organ Manage, v. 24,
n. 1, p. 71–92.
KOTLER, P.;
ARMSTRONG. (2001) Marketing Principles. PT. Gelora Aksara
Pratama. Volume 1. Eighth edition
MINISTRY OF TRADE OF RI. (2013) Supervision Stage VI: Ministry
of Trade Finds 100 Products Violated [Internet] [Downloaded on 3 February
2017]. Available at: http://ditjenpktn.kemendag.go.id/en/news/2013/06/05/pengawasan-tahap-vikemendag-found-100-product-langgar-ketentuan.
MUBAROKAH, U. (2015). The influence
of access to education and lifestyle on consumer empowerment in urban and rural
areas Bogor. [thesis]. Bogor (ID): Bogor Agricultural University.
NARDO, M.; LOI M.; ROSATI, R.; MANCA, A. (2011). The Consumer Empowerment Index: A measure of the skills, awareness, and
engagement of European consumers. EUR 24791 EN-2011. [downloaded November
15, 2016]. Available at http://ec.europa.eu/consumers/consumer_empowerment/docs/
JRC_report_consumer_empowerment_en.pdf.
NATIONAL STANDARDIZATION BOARD. (2009) SNI
of Household and Stereo Safety Appliances Part 2 - 7: Special Requirements
for Washing Machine (ID) Jakarta.
NGAI, E. W. T.; HEUNG, V. C. S.; WONG, Y.H .; CHAN, K. Y. (2007) Consumer
complaint behavior of Asians and non-Asians about hotel services. European Journal of Marketing, v. 41,
n. 11/12, p. 1375-1391.
NURHAYATI, I.; ELISABETH, Y. M. (2011) Consumer protection through formal
and informal social control. Journal of
Economics and Business, v. 10, n. 1, p. 71-76.
Regulation of the Minister of Trade No. 19 / M-DAG / PER / 5/2009 Regarding
Registration of Manual And Warranty Card / After-Sale Warranty In Bahasa
Indonesia For Telematics And Electronics Products.
PRASAD, R. K.; JHA, M. K. (2014) Consumer buying decisions models: a
descriptive study. International journal
of innovation and applied studies, v. 6, n. 3, p. 335-351.
RAHMAN, M. H.; NAOROZE, K. (2007) Women empowerment through participation
in an aquaculture: experience of a large-scale technology demonstration project
in Bangladesh. Journal of Social Science,
v. 3, n. 4, p. 164-171.
RAQUIB, M. A.; ANANTHARAMAN, R. N.; EZE, U. C.; MURAD, M. W. (2010)
Empowerment practices and performance in Malaysia - an empirical study. International Journal of Business and
Management, v. 5, n. 1, p. 123-149.
SHIBLY, H. A. (2009) A characteristic of consumer empowerment drawn from
three views of power. ABAC journal,
v. 29, n. 3, p. 65-74.
SIMANJUNTAK, M. (2014) Level of
empowerment and consumer empowerment strategy [dissertation]. Bogor (ID):
Bogor Agricultural University.
SIMANJUNTAK, M.; YULIATI, L. N. (2016) Mapping
of Indonesia Consumer Empowerment Index 2016. [Research Report]. Bogor (ID):
Bogor Agricultural University.
SIMANJUNTAK, M.; YULIATI, L. N. (2017) Consumer
Empowerment Survey in 4 Big Cities of Indonesia. [Research Report]. Bogor
(ID): Bogor Agricultural University.
SINCERO, S. M. (2012) Advantages and
disadvantages of the online survey. [internet] [downloaded on July 31,
2017]. Available at: https://explorable.com/online-surveys. Law of
the Republic of Indonesia Number 8 the Year 1999 on Consumer Protection.
SOFYAN, A. J. (2017) The influence
of socio-demographic characteristics, lifestyle and risk perceptions on
consumer empowerment in the field of health insurance. [Thesis]. Bogor
(ID): Bogor Agricultural University
THAPA, A. K.; GURUNG, L. (2010) Empowerment appraisal of rural women in
Marathwada Region of Maharashtra State. Indian
Res J. Ext. Edu., v. 10, n. 1, p. 33-36.
THE COMMISION STAFF WORKING PAPER OF BRUSSELS (2011)
YOGA, I. M. S.; WARMIKA, G. K. (2013) Relationship of Demographic
Characteristics to Consumer Complaints Behavior. Journal of Faculty of Economics Udayana University, v. 2, n. 1, p.
1106:1124.
YULIANTI, L. N.; ANZOLA, Y. (2009) Level of Consumer Satisfaction Against
Company Response Post complaint action Through Print Media. Journal of Family and Consumer Science,
v. 2, n. 2, p. 186-192.
ZULKARNAEN. (2008) Legal protection
of consumer electronic goods [thesis]. Semarang (ID): University of
Diponegoro.