The Need of Physical Improvement of Online Marketing: The Case of Agribusiness e-Commerce in Indonesia

Abstract

By the development of agribusiness e-commerce, the physical contact between seller and buyer is decreasing or even disappearing. The question in this context is whether the tangibility dimension is still needed or – at least -- what are the attributes of tangibility dimension are required in e-commerce of agribusiness. Thus, this research aims to explore the required attributes, the attributes need to remediate, and the attributes which have been completely performed for the tangibility aspect in agribusiness ecommerce. Based on literature review and in-depth interview, this research finds six attributes of tangibility aspect required in agribusiness e-commerce. By the survey to the 100 customers of online marketing in Indonesia – which sample size is determined by Lemeshow formula and taken by accidental sampling – and data analysis adopts the Importance Performance Analysis, this research proves product freshness needs to remediate; while the packaging facilities and product hygiene are the achievement of company services needs to maintain as a good work. The extension education is valuable to maintain the performed attributes and to remediate unperformed tangibility attribute in e-commerce services.