The Effect of Overpackaging Solutions in E-Commerce Towards Consumer Preference

Abstract

The emergence of e-commerce has transformed business models, consumer purchasing behavior, as well as consumer shopping experience. Despite offering many advantages, the rapid growth of e-commerce also brought challenges to the environment. In comparison to the traditional retail system, the logistic system of e-commerce involves more touch points. Due to this, products purchased from e-commerce require additional packaging material to protect products from harm and damages during the distribution process, which leads to the issue of overpackaging. Additionally, many researchers have suggested overpackaging solutions from the perspective of the government, e-commerce enterprises, and consumers. However, the effectiveness of those solutions are still unidentified. To close the gap that previous studies have not explored, this research is conducted to find recommendations for tackling the issue of overpackaging in e-commerce by examining the factors that influence consumer preferences towards e-commerce overpackaging solutions. In conducting the study, the researcher used a quantitative approach with purposive sampling by conducting an online survey to 400 e- commerce users from the age range of 17-26 years old (generation Z), domiciled in Bandung and Jabodetabek area, and have experienced overpackaging in e-commerce. The researcher uses descriptive, statistical, and PLS-SEM to analyze the survey result. The result indicates that Innovating Green Packaging Materials, The Establishment of a Recycling System, Government Policy, and Increasing Awareness Towards the Preservation of the Environment has a positive influence on Consumer Preference, The Establishment of a Recycling System and Consumer Preference is mediated by Government Policy and Increasing Awareness T owards the Preservation of the Environment, and Innovating Green Packaging Materials and Consumer Preference is mediated by Government Policy. The finding of this research will give insight and recommendations for the government, e-commerce enterprises, and consumers in tackling the issue of overpackaging in e-commerce.