FACTORS AFFECTING ONLINE PURCHASING OF LOCAL FOOD

The purpose of this research are to analyze which factors can influence Indonesia‘s consumer intention to buy local food by online and whether the intention can affect to purchasing decision or not. This research used Partial Least Square (PLS) as data analysis with significance level 5%. There are several requirements to fulfil the criteria of data anlaysis, they are convergent validity, discriminant validity, and composite reliability. The result is all of three requirement is achieved. Bootstrapping analysis was used to examine the significance and verify the hypotheses. There were five independent variables and two dependent variables. The independent variables were perceived usefulness, perceived ease of use, perceived trust, perceived risk, and perceived price. The dependent variables were intention to buy and purchasing decision. There are two variables which are significance towards intention to buy, they are perceived risk and perceived price. Perceived risk is significance and consistent with the theory which has negative effect towards intention to buy, while perceived price is significance and has positive effect towards intention to buy. Perceived usefulness, perceived ease of use, and perceived trust are not significant toward intention to buy. Variables intention to buy is intervention variable which affect significantly towards purchasing decision. R-square score for intention to buy is 30.5% while r-square score for purchasing decision is 25.9%.

The weakness of agricultural food and beverages can decrease the consumer's intention to buy the product by online because they consider the product has a high risk.This is evidenced through data from Riset MarkPlus, 2013 (cited in Sudjono, 2015) where the agricultural products do not include in one of -Top ten as the most purchased by online‖.The research by Canavan and Henchion (2007) explained the reason why consumers not interest to purchase an online food is because the characteristic of product and constraints during delivery, and lack of direct interaction with seller to ensure the quality of product.Zhou (2017) made a statement that food sell by online should have a unique feature which make different to other food sold in store, so that the consumers will be interested to purchase.A local food has special features and popular in some region (Ivanova, 2014).The features could be different among products.There is product which has a special characteristic of its raw material.There is also product which has a unique shape to make a difference from others.There are currently so many food producers who brand their product as local food to attract the attention of consumers.A local food does not have a clear definition, so the producers can introduce the product as local food as long as the food has a special features (Ivanova, 2014;Tomescu, 2015).Nowadays, the competition between the local food producers is so intense because of its attraction to make consumers purchase their products.

Perceived Usefulness
Perceived usefulness describe the value and efficacy of new technology for consumers (Lim, Osman, Salahuddin, Romle, and Abdullah, 2012).Al-maghrabi, Dennis, and Halliday (2011) said that if the value of products from new technology could be achieved, it will lead someone to have positive behaviour.Internet is a new technology in food purchasing, it means that the theory could be applied.

H1. Perceived usefulness has a positive effect towards intention to buy
Perceived Ease of Use Someone who had experience toward technology system need less effort to operate, this is the indicator of perceived ease of use (Yeo, Goh, and Rezaei, 2016).Chiu et al. (2014) said that the easier to use internet will affect consumers to make purchasing.
H2. Perceived ease of use has a positive effect towards intention to buy Perceived Trust Uzun and Poturak (2014) said that trust related with security or guarantee.
A detail information about product will be one of the factors who can increase consumers' trust and feel safe to make This is due to consumer can not see the physical state of the product directly, they should give a personal contact as delivery procedures, and there is no interaction with seller so it can decrease their trust to buy (Javadi, 2012;Uzun dan Poturak, 2014).
The more risk faced by consumers, the less possibility to make purchasing, vice-versa (Javadi et al, 2012).
The company can lowered perceived risk by giving a guarantee such as return warranty or ensure the confidentiality of the consumer's personal data (Liu, Brock, Shi, Chu, and Tseng, 2013).It can affect consumers' decision to buy their product.Not many online stores do this strategy because they do not know the importance of warranty for consumers.

Perceived Price
Price is one of important factor for consumer to make purchasing decision.
Pricing by the company should be tailored to the financial capabilites of consumers.This research use three indicators related to perceived price to measures its influence towards buying intention of online local food, they are affordable price, competitive price, and price according to quality.
Consumers tend to consider product's price because they can compare competitior price and choose a cheaper ones by internet easily (Oktaviyanti, 2015).Price strategy which can do by company is show the detail price such as product price, shipping cost, price changes, and taxes.This is due to consumers do not like about price uncertainty (Kaur and Quareshi, 2015).

Intention to Buy
Intention to buy is possibility of consumer will make purchasing in the future.
Consumer does not make a decision to buy,

Model Conseptualization
The path diagram was evaluated by looking the value of loading factor its manifest variables with criteria score was >0.5.The manifest which had loading factor scores <0.5 should be eliminated from path diagram.The path diagram could be seen in Figure 1.Parameter Estimation Ghozali and Latan (2012) explained that the purpose of outer loading significance was for evaluate path coefficient of latent variables from its indicators.The criteria for manifest variable to be called significantly correlate towards their latent variable was measured with t-statistic in outer table should be more than 1.960 (level of significance 5%).

Outer Evaluation
Three things that would be evaluated were convergent validity, discriminant validity, and compos ite reliabilit y.

Assesment criteria of convergent validity
was that AVE score should be >0.5 and the validity was proved.Discriminant validity would be approved if the AVE root value of each construct was more than correlation score between construct.The value of composite reliability would be approved if its score was >0.7.

Inner Evaluation
The evaluation used was the value of R-square for endogenous variable with resampling procedures, which the analysis used was bootstrapping to get stability

Hypothesis Testing
Significance of hypothesis testing did by compare t-statistic with its t-value.The standard of t-value used for the research was 1.960, which its value was in the level of significance 5% (Ghozali and Latan, 2012).The highest score of manifest variable above is X2.4a (0.822) which is the easiness to search information.This is due to the information is very needed when consumer want to buy a product.

Path Diagram Construction
Consumers will search many information before make a decision.Consumer make use of internet because it provide many information from various brand that has different taste, size, packaging, and price.PT = 0 .7 3 5 X 3 .1 a + 0 .7 9 2 X 3 .2 a + 0 .7 9 8 X 3 .2 b + 0 .7 6 8 X 3 .Expired date is a manifest variable of X4.3b (0.884).Food product has a higher risk than other product because food affect to body directly.The company who sell online food rarely publish the expired date in their product, while consumer can not ensure directly whether the expired date is still long or not.PP = 0 .8 5 2 X 5 . 1 a + 0 .8 1 5 X 5 . 1 b + 0.887X5.3a+e Manifest variable X5.3a is price according to quality which has the highest score (0.887).The cheap price can attract consumer, but the quality still considered.
Especially for food product, consumer will doubt the receipt and making process if the food's price is cheap.Currently, there are so many food producer sell local food in online media so it is not difficult for consumer to find quality product with lower price.Parameter Estimation Ghozali and Latan (2012)  Source: Primary Data The table above show that all of AVE score > 0.5, so the convergent validity meets the criteria.The evaluation for discriminant validity evaluated from the comparison between root AVE with its score of Table 3 and Table 4. Table 3 and Table 4 show the correlation between manifest variable is fewer than root AVE, so the model meets the criteria for discriminant validity.Convergent validity and discriminant validity are used to know whether the questionnaire can measure the variables appropriately or not.Analysis The analysis of construct reliability in PLS was evaluated from composite reliability score.Ghozali and Latan (2012) explained the criteria to evaluate construct reliability should be more than 0.7.All score on the table above is >0.7, so it can be said the model is reliable.
After analyzing the validity and reliability, model was evaluated for its R-square.This evaluation describe the relation between dependent and independent variables.The evaluation of structural model in PLS was evaluated from R-square (Ghozali and Latan, 2012).Table 6 show there are two R-square belong to purchase decision and intention to buy.The score of R-square for purchase decision is 0.259.It means that purchase decision variable can be explained by intention to buy for 25.9%, while the other factor may be explained outside model for 74.1%.The score of R-square for intention to buy is 0.302.It means that purchase decision variable can be explained by perceived usefulness, perceived ease of use, perceived trust, perceived risk, and perceived price for 30.2%, while the other factor may be explained outside model for 69.8%.

Hypothesis Testing
Hypothesis analysis in this research use bootstrapping analysis.
The latent variables which have score lower than 1.960 means it does not significant.Ease of Use Towards Intention to Buy (H2) The results of hypothesis testing showed that t-statistic for perceived ease of use does not significant because of the score is 0.833<1.960.The research did by Juniwati (2014) had the same result.
The result may different depends on the kind of products.Renny, Guritno, and Siringoringo (2013) said that ease of use can affect online ticket purchasing.People who don't have time to buy ticket will feel easiness towards online ticketing.It can be explained that perceived ease of use is uncertain whether it can motivate someone to have an intention to buy or not.
The function of easiness from internet was only did to search information and compare the quality among food local before make purchasing, but it is uncertain if that person will buy by online or in store.

3) Hypothesis for Effect of Perceived
Trust Towards Intention to Buy (H3) The variable of perceived trust does not significant towards intention to buy.The result of analysis show that perceived price has significant effect towards intention to buy.Yeo, Goh, and Rezaei (2016) also did a research to see the effect to perceived price towards intention to buy in online media.The result was the convenience to search information about product make consumer easily find the price product information before make purchasing.Consumers tend to buy th product which has a lower price with better quality (Ollila, 2011;cited in Yeo, Goh, and Rezaei, 2016).Kaur and Quareshi (2015) said that lower price, better quality, and free shipping cost are the factors which affect consumer intention to buy.
Kata kunci : keputusan pembelian, niat beli, Partial Least Square, pembelian online INTRODUCTION Internet is one of the invention of technology that is currently widely used by the world community.There are various types of businesses use the internet to support their activity such as textiles, ticketing and lodging, processed products such as food and cosmetics, and many more.E-commerce help consumers to buy goods or services easily, while for company, it can reduce operational and marketing costs.The data from Badan Pusat Statistik (BPS) after processed by Pusat Data dan Infor masi Statistik (Pusdatin) related contribution for Gross Domestic Product (GDP) of agricultural processing industry in 2010 until 2014 show that the food and beverages industry have the most percentage of other industries.
The high level of public consumption and the development of internet technology in Indonesia is a good opportunity for local food industry entrepreneurs to develop markets in online media.The character of Indonesian consumers who tend to avoid the risk become the obstacle for local food producers to sell it by online, not forget to mention that agricultural products have a weakness, it can explain the reason why food products do not include in top ten of the most food product purchased by online in Indonesia.There are factors who affect the consumers' intention and decision to buy local food by online other than perceived risk.They are perceived usefulness, perceived ease of use, perceived trust, perceived risk, and perceived price.These factors have indicators that can explain their effect on purchasing intention and decision.This research is important to do to help local food producers to understand factors which affect consumers' intention and decision purchasing by online, so the producers can make a better selling strategy to attract more consumers.
transaction.The convenience to access the website, the accuracy of information, contact company, and provide many information from other resources are an important factors to affect consumers' decision to buy online product.The company should analyze the things what makes consumers worry and decrease their trust to buy the products.H3.Perceived trust has a positive effect towards intention to buy Perceived Risk Consumer tend to evaluate product which sell by online has a high risk.
but sometimes they have an intention to make transaction.The indicators which can be used to analyze how much possibility of consumer make a purchasing are explorative interest, transactional interest, referential interest, and preferential interest (Ferdinand, 2002 cited in Palwa, 2014).H6.Intention to buy has a positive effect toward purchasing decision METHODS Primary and secondary data were collected to support this research.Primary data was obtained by sharing the google link to social media and chatting aplication.Secondary data was got from books, journals and internet.The method of analysis used was SEM-PLS with SmartPLS version 2. The total number of samples research were 159.The sampling technique used was non-probabilty sampling with purposive sampling method.The study population used was individuals who access google form, while research samples were individuals who bought a local food at least one times.

IB
the highest score.Consumer who has intention to buy try to influence family or friends so they also have interest to purchase by telling them a positive words about product.Someone who tell a positive words show that he or she has an intention to buy.PD = 0 .6 2 7 Y 2 . 1 a + 0 .7 6 2 Y 2 .3 a +0.748Y2.4a+0.734Y2.5a+e Manifest variables Y2.4a is purchase consideration which has the highest score.The manifest variables of purchase consideration explain that consumers do not much consideration to buy local food by online.Someone who does not make a much consideration to buy tend to purchase the product.It is due to the consumer already convinced of his choice.
score 8.915>1.960.The result explain that someone who has intention to buy has bigger possibility to buy online local food.The company should analyze what factors are the most important to attract consumers intention to buy that will leading to their purchasing due to the uncertainty of online transaction.CONCLUSION AND SUGGESTION The variables which significantly affect intention to buy online local food are perceived risk and perceived price.The perceived risk of Indonesian consumers are still high.The company who sell local food by online should ensure the security for their consumers.Perceived price is also considered by consumers to make purchasing.The competition between online local food producers make consumers easily find the price information.The consumers usually will choose a cheaper price with better quality.Intention to buy has a big influence towards purchasing decision.It means that someone who has intention to buy local food product by online will considering to purchase the product.The company should analyze which factors can be affect consumers intention to buy and will lead their behaviour to purchase the product.It will help company to make a good strategy for their selling.This analysis can be done by giving a questionnaire to potential consumers.

Table 1 .
Outer Loading Test Result

Table 2 .
Corre lati on Between Late nt

Outer Model Evaluation Convergent Validity and Discriminant ValidityTable 3 .
Value of AVE and Root AVE

Table 6 .
Score of R-square