The Impact of Government Regulations on Consumers Behaviour during the COVID-19 Pandemic: A Case Study in Indonesia

• Published in: The Journal of Asian finance, economics, and business Vol. 8; no. 4; pp. 939 - 948
• Main Authors: IRIANI, Sri Setyo, NUSWANTARA, Dian Anita, KARTIKA, Ajeng Dianing, PURWOHANDOKO, Purwohandoko
• Format: Journal Article
• Language: Korean
• Published: 한국유통과학회 30.04.2021; Korea Distribution Science Association
• Subjects: Impulse Buying; Pandemic Situation; Viral Marketing; Buying Decision; Customer’s Online Trust; Customer's Online Trust
• ISSN: 2288-4637; 2288-4645

The purpose of the research is to examine whether government regulation on Covid 19 pandemic has had a significant impact in economic sectors, particularly on consumer behavior. Thus there are three hypotheses, 1) viral marketing has an effect on online trust during the Covid-19 Pandemic Era, 2) viral marketing has an effect on impulse buying during the Covid-19 Pandemic Era, and 3) Viral marketing has an effect on impulse buying in the Covid-19 Pandemic Era through online trust. To test the hypotheses, questionnaires were distributed to 150 respondents, however, only 110 were selected due to incomplete data. There are 3 variables, namely viral marketing, online trust, and impulse buying, where online trust is also a mediating variable. Once the assumption test is completed, the researcher employs path analysis to test the hypotheses. The results are 1) there is an effect of viral marketing on online trust in the Covid-19 Pandemic Era, 2) There is no effect of viral marketing on impulse buying in the Covid-19 Pandemic Era, and 3) Viral marketing has an effect on impulse buying in the Covid-19 Pandemic Era through online trust. This means online trust succeed in mediating viral marketing-impulse buying relationship. The findings emphasized that the credibility of online trust enforce consumers in making buying decisions.