Joss.Al-Makkipublisher.Com/Index.Php/Js
411
JOSS:
Journal of Social Science
MODERATING EFFECTS OF INTERNET TECHNOLOGY ON HOW
POP-UP ADS AND BRAND IMAGE AFFECT E-COMMERCE
COMPETITIVENESS.
Virgo Simamora
1
, Eka Sulastri Sitanggang
2
Universitas 17 Agustus 1945 Jakarta, Indonesia
1,2
1
, ekasulastrisitanggang[email protected]
2
KEYWORDS
Pop-up
advertisement,
Brand Image,
Competitiveness,
Internet
technology.
ABSTRACT
One important factor that makes a company or business
successful in the market is its ability to create competitiveness
against its competitors using internet technology. This study
aims to explore the moderating role of internet technology on
the influence of pop-up advertisements and brand image on a
company's competitiveness. The primary data collection method
used in this study is a survey, which involves 100 respondents
who have a permanent job, are e-commerce users, and reside in
DKI Jakarta. The collected data was obtained through a
validated and reliable questionnaire. The results of this study
indicate that pop-up ads and brand image have a significant and
positive impact on e-commerce competitiveness. Additionally,
internet technology also has a significant and positive impact on
competitiveness. Furthermore, the moderation effect of internet
technology is positively associated with the influence of pop-up
advertisements on competitiveness and also positively
moderates the impact of brand image on competitiveness.
INTRODUCTION
One important factor that makes a company or business successful in the market is its
ability to create competitiveness against its competitors. Competitiveness is the ability to
produce goods and services that meet international standards, while also maintaining high and
sustainable levels of revenue (Simamora, 2022). Businesses must be able to guarantee that
competitors are tough to imitate their competitiveness to establish a lasting competitive edge
(Porter, 1985). Tokopedia is one of the largest e-commerce in Indonesia Indonesia to compete
with other e-commerce such as Shopee, Jd.Id, Zalora, Lazada, and others. According to
(Databoks, 2022) Tokopedia has 158.3 million visitors, the highest number among other e-
commerce in Indonesia, followed by Shopee with 131.3 million visitors.
Various strategies can be used to increase the competitiveness of e-commerce against its
competitors. One of them is to use pop-up advertising. The research results of Ammarie &
Nurfebiaraning (2019) explain that pop-up advertising on youtube is proven to influence
audience attitudes toward accessing the youtube site. According to research (Chatterjee, 2008)
user attitudes toward pop-up advadvertisingve a positive effect on the effectiveness of pop-up
advertising and shape consumer perceptions when choosing a product or brand Daugherty et
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al., (2015). Brand image is another element that may strengthen a company’s competitiveness,
according to a study by (Rawi et al., 2020; Wijaya & Oktavianti, 2019). In light of its role in
enhancing e-commerce competitiveness, brand image is a company’s most important asset
(Panda et al., 2019; Scorrano et al., 2019). To support e-commerce to operate efficiently,
internet technology and its utilization have become crucial factor. The result of research by
(Rudy et al., 2008) explained that the use of Internet technology has proven to have a significant
effect on increasing e-commerce sales turnover and the number of customers. By using Internet
media, business units can expand their market share which has the potential to increase
company sales (Setiawati, 2017).
The purpose of this study is to examine the effect of pop-up ads and brand image on
Tokopedia's competitiveness. Unlike prior research, this study attempts to clarify the role of
pop-up advertising and brand image on competitiveness, as well as the implications of internet
technology in moderating the influence of pop-up advertising and brand image on Tokopedia's
competitiveness.
The results of this study are important as digital business is growing significantly. The
benefit of this research is helping scholars to understand digital businesses to increase their
competitiveness by using pop-up ads, brand faith, and internet technology to increase
competitiveness in e-commerce
METHOD RESEARCH
This study has an explanatory design and uses a quantitative method to explain the
influence of pop-up advertising and brand image on e-commerce competitiveness as moderated
by internet technology. This study's population consists of all residents of DKI Jakarta,
millennials aged 2338 who have a job and are actively using the internet, the number of whom
is unknown. The sampling method used is purposive sampling, in which specific criteria are
determined to generate a representative sample (Sugiyono, 2018). A questionnaire was issued
to 100 respondents to obtain primary data. The number of samples is determined using the
Lemeshow formula since the entire population is unknown (Sugiyono, 2018). The Likert scale,
which evaluates the subject's response on a five-point scale, is used to examine respondents'
opinions
RESULT AND DISCUSSION
There are 100 millennials aged between 24-38 years who have participated in this study
with the following profiles:
Table 1
Respondents Profile
Variable
Total
Percent(%)
Gender
- Female
56
44
- Male
44
56
Age
- < 21 years
4
4
- 21 26 years
19
19
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413
- 27 32 years
39
39
- > 33 years
38
38
Income (IDR)
- 2.000.000 4.000.00
7
7
- >2.000.000 4.000.000
24
24
- >4.000.000 6.000.000
48
48
- > 6.000.000 4.000.000
21
21
Professions
- Students
78
78
- Government Official
54
54
- Entrepreneurs
30
30
- Private Employee
39
39
- Others
9
9
User Frequency of Tokopedia
- < 1 years
6
6
- 1 2 years
42
42
- > 3 years
52
52
Sources: Processed questionnaire data, 2022
Table 1 explains that the majority of respondents are female (56%) aged 27-32 years
(39%) with an average income of IDR 4,000,000 6,000,000 (48%) They are professionals
who work as government officials (54%) and have > 3 years using Tokopedia.
The Outer Model Assessment
The assessment of the outer model focuses on establishing the degree to which the
indicators may represent the variables. In this study, Pop-up Ads (X1) are assessed by four
indicators, Brand Image (X2) by six indicators, Internet Technology (Z) by seven indicators,
and Competitiveness by three indicators. Because all indicators are reflected, this study uses
Composite Reliability and Cronbach's Alpha to examine the reliability, while Convergent
Validity and Discriminant Validity are employed to test validity.
Validity Test
Loading Factors As shown in Table 2, the PLS model has generated all loading factors
with values greater than 0.70. As each indicator has a loading factor value greater than 0.70,
the convergent validity is considered to be satisfied, indicating that all requirements for the
validity test have been fulfilled (Ghozali, 2021).
Table 2
Outer Loadings
Variable/Indicator
Outer Loadings
Results
1. Pop-ups Ads (X1)
Good source of information
(X1.P1)
Relevance information (X1.P2)
Up to date information(X1.P3
Virtual Ads (X1.P4)
0,.59
0.859
0.806
0.876
Valid
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2. Brand Image (X2)
Consumer perception of product
features (X2.P1)
Consumer perception of the
product
Design (X2.P2)
Consumer perception of
price(X2.P3)
Consumer perception of quality
(X2.P4)
Consumer perception of a
variety of products (X2.P5)
Consumer perception of service
(X2.P6)
0.764
0.826
0.894
0.867
0.843
0.866
Valid
Valid
Valid
Valid
Valid
Valid
3. Internet Technology
Experience using internet
technology (Z1.P1)
Complexity in using internet
technology (Z1.P2)
Willingness to explore the use of
Internet technology (Z1.P3)
Ease of using internet
technology (Z1.P4)
User perception of the benefits
of Internet technology (Z1.P5)
Attitudes in using
internet5technology (Z1.P6)
Dependency on the use of
Internet technology (Z1.P7)
0.793
0.770
0.774
0.767
0.743
0.804
0.814
Valid
Valid
Valid
Valid
Valid
Valid
Valid
4. Competitiveness
Cost (Y1.P1
Quality Y2.P2
Delivery Y3.P2
0.701
0.812
0.881
Valid
Valid
Valid
Source: Processed data (2022)
Furthermore, according to Table 3., all the values of Average Variance Extracted (AVE)
are higher than 0.5 meaning that the requirement for the validity test has been satisfied.
According to (Ghozali, 2021), to full fill the requirement of discriminant validity, the value of
AVE should be higher than 0.5.
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Table 3
EVA
Variable
Average Variance
Extracted
Moderating Effect 1
1.000
Moderating Effect 2
1.000
Pop-up Ads (X1)
0.723
Brand Image (x2)
0.730
Competitiveness Y
0.678
Internet Technology Z
0.604
Source: Processed data (2022)
Reliability Test
The measurement model was evaluated further to assess the instrument's dependability
using Conbrach's alpha and composite reliability. According to (Ghozali, 2021), the minimum
value of Conbrach's Alpha and Composite Reliability to pass the reliability test criteria is 0.70.
Because all of the Cronbach's Alpha and Composite Reliability values are more than 0.70 (see
Table 4), the reliability test has been met.
Table 4
Cronbach’s Alpha and Composite Reliability
Variable/Indicator
Cronbach’s
Alpha
Composi
te
Reliabilit
y
Results
1. Pop-ups Ads (X1)
Good source of information
(X1.P1)
Relevance information (X1.P2)
Up to date information(X1.P3
Virtual Ads (X1.P4)
0.873
0.913
Reliable
2. Brand Image (X2)
Consumer perception of product
features (X2.P1)
Consumer perception of the
product
Design (X2.P2)
Consumer perception of
price(X2.P3)
Consumer perception of quality
(X2.P4)
Consumer perception of a
variety of products (X2.P5)
0.926
0.730
Reliable
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Consumer perception of service
(X2.P6)
3. Internet Technology
Experience using internet
technology (Z1.P1)
Complexity in using internet
technology (Z1.P2)
Willingness to explore the use of
Internet technology (Z1.P3)
Ease of using internet
technology (Z1.P4)
User perception of the benefits
of Internet technology (Z1.P5)
Attitudes in using
internet5technology (Z1.P6)
Dependency on the use of
Internet technology (Z1.P7)
0.891
0.914
Reliable
4. Competitiveness
Cost (Y1.P1
Quality Y2.P2
Delivery Y3.P2
0.838
0.678
Reliable
Source: Processed data (2022)
Inner Model Assessment
The inner model is a structural model that predicts causal links among variables or factors
that cannot be explicitly assessed. The link between latent constructs was investigated using
structural model assessments. Using the Smart PLS 3.0, this research results are presented as
follows :
Table 5
Original Sample (O), T Statistic
Variable
Original
Sample (O)
T Statistic
P-Value
Moderating Effect 1 -> Competitiveness
Y
0.352
3.271
0.001
Moderating Effect 2 -> Competitiveness
Y
0.239
2.627
0.009
Pop-up Ads X1 -> Competitiveness Y
0.243
2.577
0.010
Brand Image X2 -> Competitiveness Y
0.382
3.313
0.001
Internet Technology Z ->
Competitiveness Y
0.266
2.883
0.004
Source: Processed data (2022)
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The inner model is a structural model that predicts causal relationships between variables
or factors that cannot be measured directly. Structural model evaluations were performed to
examine the relationship between latent constructs. The parameters used to evaluate the
structural models are R2 and the path coefficient. Based on the results, the R2 found in this
study are as follows:
Table 6
R- Square
Variable
R- Square
Adjusted R-Square
Competitiveness (Y)
0.688
0.671
Source: Processed data (2022)
R2 represents the coefficient of determination for the endogenous construct. Based on
the strength of the relationship, R2 may vary from 0.67 (very strong) to 0.33 (moderate) to 0.19
(weak), as stated by Chin (2010), According to this research, the R2 value of pop-up ads, the
brand image on competitiveness moderated by internet technology is 0,688 higher than 0,600
suggesting that the proportion of changes in competitiveness caused by pop-up ads, brand
image, and technology internet.
Hypothesis testing
The Effect of Pop-up Ads on Competitiveness
The results of the hypothesis testing of H1 have proven that there is a positive and
significant effect between pop-up advertising and competitiveness with a statistical t value of
2.577 > t-table value of 1.96 and a p-value <0.05 meaning the hypothesis (H1) is accepted.
The results of this study are in line with the results of previous research conducted (Natsir &
Ernawati, 2020) that there is an effect of pop-up ads on competitiveness which is indicated by
increased consumer buying interest. The research results are also in line with the results of
(Anitawati & Apriliano, 2020), which explain that there is an effect of pop-up ads on product
competitiveness. However, the results of this study are not in line with the results of previous
studies conducted by (Edwards et al., 2002; Le et al., 2022) and (Mbugua & Ndavi, 2021).
The Effect of Brand Image on Competitiveness
The results of the hypothesis testing of H2 examined the positive effect of brand image
on competitiveness which is shown by a statistical value of 3.313 > t table value of 1.96 and a
p-value <0.05 means that the hypothesis is accepted. The results of this study support the results
of previous research conducted (Wijaya & Oktavianti, 2019) which explained that there is a
positive and significant influence on the brand image on e-commerce competitiveness. The
results of this study are also in line with the results of research conducted by (Cham et al.,
2020) which showed that there is an effect of brand image on hospital competitiveness. Finally,
the results of this study are also in line with the results of research conducted by (Panda et al.,
2019) which explains that there is an influence of brand image on a university’s
competitiveness.
The Effect of Internet Technology on Competitiveness
The results of hypothesis testing (H3) explain that there is a positive influence of
internet technology on competitiveness with a statistical t value of 2.883 or > t table 1.96 and
a p-value <0.05 meaning the hypothesis is accepted. The results of this study are consistent
with many previous studies such as the research of (Buhalis & Zoge, 2007; Huo et al., 2016;
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Moderating Effects Of Internet Technology On How Pop-Up
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G. Li et al., 2009; Simamora et al., 2020).
Also, the results of this study are in line with the opinions of (Chong & Micco, 2001)
which state that internet technology has an important role in business activities. The results
of this study are also in line with the opinions of (Huo et al., 2016; G. Li et al., 2009) which
state that the use of information technology in business activities can strengthen the company's
competitive strategy and company competitiveness.
The Effect of Pop-up Ads on Competitiveness Moderated by Internet Technology
The results of hypothesis testing (H4) show that there is a positive and significant
influence of internet technology as a moderating variable on the effect of pop-up ads on
competitiveness with a t statistic value of 3.271 > t table 1.96 and p-value <0.05 meaning the
hypothesis is accepted. The results of this study support the statements of (Chong & Micco,
2001; Huo et al., 2016; G. Li et al., 2009) regarding the important role of internet technology
in the digital marketing era. The results of this study are also consistent with the research
(Buhalis & Zoge, 2007) which states that information technology is a source of competitive
advantage. Furthermore, in (Simamora et al., 2020), the use of information technology
provides opportunities for companies to promote products using digital marketing.
The Effect of Brand Image on Competitiveness Moderated by Internet Technology
The results of hypothesis testing prove that there is an influence of internet technology
as a moderating variable on the influence of brand image on competitiveness with a statistical
t value of 2.627 > t table 1.96 and a p-value <0.05 meaning that the hypothesis is accepted. The
results of this study are in line with the results of research (Wijaya & Oktavianti, 2019) which
shows that there is a positive and significant influence of brand image on Tokopedia's
competitiveness. Also, the results of this study are in line with the study conducted by (Cham
et al., 2020). With the support of internet technology, the brand image of e-commerce will get
better and have an impact on increasing the competitiveness of e-commerce.
The results of this study explain that there is an effect of pop-up ads on competitiveness
moderated by internet technology. The results of this study are in line with previous research
conducted by (Natsir & Ernawati, 2020) and (Anitawati & Apriliano, 2020). However, e-
commerce needs to properly design the use of pop-up ads so that pop-up ads don't hurt the
company. In several previous studies, pop-up ads proved not to have a positive effect on
competitiveness (Saraswati, 2014). In the research (Mbugua & Ndavi, 2021), pop-up ads have
been associated with negative perceptions of annoyance, irritation, and intrusiveness, meaning
that there are pop-up ads. In fact, in the research of (Edwards et al., 2002), pop-up ads upset
consumers and caused them to shut down online advertising entirely. This is consistent with
the character of pop-up ads which always appear suddenly on the computer screen when a
website is accessed (Moriarty & Mitchell, 2008) as an advertisement that appears suddenly on
the computer screen when a website is accessed.
Likewise, the results of this study explain that there is an influence of brand image on
competitiveness moderated by internet technology. According to the results of this study, with
the support of internet technology, the brand image of e-commerce will get better and have an
impact on increasing the competitiveness of e-commerce. To improve its brand image,
Tokopedia can take advantage of digital marketing by utilizing various available applications.
CONCLUSION
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From the results of this study, it can be concluded that pop-up advertisements have a positive
influence on competitiveness. The results of this study indicate that brand image has a positive
effect on competitiveness. Furthermore, this study revealed that internet technology has a
positive impact on competitiveness. As a moderator variable, internet technology has been
shown to strengthen the effect of pop-up advertisements on competitiveness as well as the
impact of brand image on competitiveness. According to this research, internet technology has
an important role in increasing competitiveness. Therefore, building internet technology
capabilities is a strategic step to increase competitiveness, particularly as more firms are turning
to digital marketing.
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Copyright holders:
Virgo Simamora, Eka Sulastri Sitanggang (2023)
First publication right:
JoSS - Journal of Social Science
This article is licensed under a Creative Commons Attribution-ShareAlike 4.0
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