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

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Sri Setyo IRIANI, Dian Anita NUSWANTARA, Ajeng Dianing KARTIKA, Purwohandoko PURWOHANDOKO

2021 Journal of Asian Finance, Economics and Business Vol. 8 Issue 4 Article Cited by 26 Quartile

Abstract

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. © The Author(s) This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (https://creativecommons.org/licenses/by-nc/4.0/) which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.

Affiliations

Department of Management, Faculty of Economics, Universitas Negeri Surabaya, Indonesia; Department of Accounting, Faculty of Economics, Universitas Negeri Surabaya, [Postal Address: Kampus Unesa Ketintang, Surabaya, East Java, 60231, Indonesia], Indonesia; Department of Germany Language, Faculty of Arts and Letters, Universitas Negeri Surabaya, Indonesia