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http://dx.doi.org/10.13106/jafeb.2021.vol8.no4.0939

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

IRIANI, Sri Setyo (Department of Management, Faculty of Economics, Universitas Negeri Surabaya)
NUSWANTARA, Dian Anita (Department of Accounting, Faculty of Economics, Universitas Negeri Surabaya)
KARTIKA, Ajeng Dianing (Department of Germany Language, Faculty of Arts and Letters, Universitas Negeri Surabaya)
PURWOHANDOKO, Purwohandoko (Department of Management, Faculty of Economics, Universitas Negeri Surabaya)
Publication Information
The Journal of Asian Finance, Economics and Business / v.8, no.4, 2021 , pp. 939-948 More about this Journal
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.
Keywords
Pandemic Situation; Viral Marketing; Impulse Buying; Customer's Online Trust; Buying Decision;
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