The Internet Journal Language, Culture and Society

URL: http://aaref.com.au/en/publications/journal/
ISSN 1327-774X

Identifying Changing in Indonesian Values and its Impact to Indonesian

Consumer Behavior
Sabrina O. Sihombing
Universitas Pelita Harapan

Abstract
In the past Indonesian people were taught in school or by their families several traditional values such
as harmoni (harmony), toleransi (tolerance), keagamaan (religiosity), and gotong-royong (mutual as-
sistance). However, these values have changed mainly because of globalization. This article ad-
dresses the value changes in Indonesian people. More than 2,000 open-ended questionnaires were
distributed to respondents in four big cities in Indonesia: Jakarta, Bandung, Semarang, and Surabaya.
A total of 1209 usable questionnaires were used to identify Indonesian values today. The result shows
that gotong royong (mutual assistance), demokrasi (democracy), agama (religion), harmoni (harmo-
ny), ramah-tamah (hospitality), fanatisme keagamaan (religious fanaticism), and individualisme (indi-
vidualism) are todays Indonesian values. Changing values is considered as one main factor of
changing consumer behavior.
Keywords: Indonesian values, changing values, consumer behavior

Introduction
Little research has been conducted to understand Indonesian values. Values that have been taught in
schools or in family are Indonesian holds harmoni (harmony), toleransi (tolerance), keagamaan (relig-
iosity), and gotong-royong (mutual assistance) as Indonesian values. However, many things are
changing as a result of globalization and technology. In the specific, societys values change continu-
ously (Arnett, 2002; Blackwell et al., 2007). Change in values will affect people behavior. Therefore,
this research aims to understand the current values of Indonesian people at this time.

Literature Review
Values and consumer behavior
There are a number of definitions of values. Despite the fact that value is one important construct in
social science research, there is no consensus in the literature about the definition of value (Lomba-
ert, 2003; Firth, 1953). Furthermore, Lombaert (2003) examined 4000 articles on values, about 170
definitions of word value emerged. He pointed out that value is a vague term which refers to a funda-
mental aspiration of the human person for living a society. Another researcher, Zetterberg (1998) also
pointed out that the term "value" has many meanings. For example, the term value in market research
can be associated with value for money" and "consumer values".
The word value is also often easy to say but hard to explain (Firth, 1953). The word value is also often
connoted as something good, valuable, dignified, and positive connotation. Instead, what is the
opposite is called as non value or disvalue. Some people called negative values for all negative
values, and the word values refer to positive things (Bertens, 2007).
The concept of value is one important variable to human life because values influence all aspects of
human life (Rokeach, 1973 cited by Wang et al., 1994). Values provide guidelines to live in a society
(Schwartz, 1999) and values provide answer to basic and universal questions such as what do I do?
(Zhou et al., 2011). Hofstede (1994) pointed out that values are among the first children learned.
Since the age of 10, most children have their basic value systems. Values are acquired through the
family, neighborhood, experience, and lifestyle (Karahanna et al., 2005). Furthermore, different cul-
tures will provide different values. For instance, Western values are characterized by separateness.

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In other words, western people are relatively independent and individualistic. On the other hand, non-
western values are more interdependent and collective (Evans et al., 2009).
Grunert and Scherhorn (1990, cited by Wang et al., 1994) identified five features of personal values.
Values were described as 1) concepts or beliefs, 2) about desirable behaviors and/or end states 3)
that go beyond specific situations, 4) guide the selection or evaluation of events and behaviors, and 5)
are ordered by a certain hierarchical importance.
Changing values and empirical evidence of changing values
Globalization is one of the main factors that contribute to value changes (Cozma, 2011). There are
several studies that provide the value changes around the world. For example, Indonesian people
were known as a tolerant society with the main foundation of Bhineka Tunggal Ika (unity in diversity).
However, Indonesian people now becoming aggressive and anarchistic toward differences. Moreover,
group or individual interests are more important than common interest (Rahayu, 2012; www.uii.ac.id,
2012; Calam & Sobirin, 2008). Another example, Bibby (1995, cited by McGregor, 2000) stated that
three quarters of Canadians feel that social values in Canada are changing for the worse. Further-
more, he determined that Canadians values, in descending order: honesty, reliability, kindness,
friendliness, a concern for others (compassion), politeness (civility), forgiveness and generosity. The
weight placed on most of these values has remained constant from 1985 except for honesty, reliabil-
ity, politeness (civility) and forgiveness which declined in value in 1995. Canadians are now character-
ized by an increasing emphasis on the individual and the idea that truth is relative.
Another example is a study in Britain. According to Watts (2008), there are four social evils facing
Britain: 1) a decline in community, 2) the increasing of individualism, 3) consumerism and greed, and
4) a decline of value. A decline of values in Britain refer to that there is no longer a set of shared val-
ues to guide behavior such as tolerance, compassion, and respect shown to others. Instead, Watts
stated that individualism is increasing. In other words, people tend to see themselves as individuals
and not as part of wider society, leading to selfishness and insularity. Other examples show that Chi-
nese and Japanese values have become more individualistic and materialistic society (Xiao, 2005;
Stevenson & Zusho, 2002, cited by Arnett, 2002; Faure, 2012). Furthermore, individualism in
developing countries is rising (Zhang & Shavitt, cited by Hawkins & Mothersbaugh, 2010). Several
other researchers also pointed out that globalization contribute to the changing of main traditional val-
ues such as work, family, and religion (Swadzba, 2011).

Justification to the research

Values and its importance to consumer behavior
The importance role of values in all aspects of human life has motivated numerous of empirical inves-
tigations of personal values in the disciplines of psychology (e.g. Killian et al., 2012; Tam & Lee,
2010), sociology (e.g. Rose, 1956; Santee & Jackson, 1977), anthropology (e.g. DAndrade, 2008;
Nag et al., 1978), and consumer behavior (e.g. Mueller & Sirieix, 2011; Valette-Florence et al., 2001;
Vinson et al., 1977). Values lead to behavior (e.g. Soares et al., 2007; Karahanna et al., 2005; Claw-
son & Vinson, 1978). Values represent the belief that one is living up to the cultural standards
(Greenberg et al., 1992 cited by Zhou et al., 2011). Therefore, understanding and monitoring social
values can help to understand people behavior (Soares et al., 2007). In the specific, it can be used to
predict consumer behavior in the marketplace (Hawkins & Mothersbaugh, 2010).
Understanding Indonesian current values
Values are the most defining elements of culture (Lamb et al., 2009; Luna & Gupta, 2001). Values
have changed in many places in the world the last several decades as the result of globalization
(Hawkins & Mothersbaugh, 2010; Blackwell et al., 2007). There are samples of Indonesian values has
been changed. As stated by Schiffman et al. (2010) that popular songs are indicators of values
changes. For instance, the openness of having song lyrics about affair can be viewed as an indication
of a decline in values. The song with the title of Sephia from the band called Sheila on 7 is the first
band whose song which demonstrated the openness in having affair in Indonesia. Other songs with
the same themes then followed. Indonesian people then are seemingly tolerating the phenomena of
having an affair. Another example of decrease in value is pregnancy outside marriage is not a taboo
in Indonesia nowadays (Suwarno, 2012; Saraswati, 2011, Senior, 2009). Again, one of the popular
lyric song in Indonesia states sudah 3 bulan, ku hamil duluan, gara-gara aku pacaran gelap-gelapan
(I have my three months pregnancy outside marriage, because Im dating in dark). Western values

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are blamed as blamed for increasing premarital pregnancies. Furthermore, the erosion of traditional
social norms and institutions is blamed as consequences of by global forces (Arnett, 2002). There-
fore, understanding the changing Indonesian values and their consumer behavior has potential impact
to marketing programs.

Method
Data collection
This research develops a multiple-item scale for assessing Indonesian values. The first step in the
scale development process is to generate scale items. Items were generated from a combined deduc-
tive and inductive approach. The deductive approach emphasizes theoretical definitions of the con-
cept (that is Indonesian values). On the other hand, the inductive approach starts from empirical reali-
ty. In this research, an exploratory research was conducted in which respondents were asked to de-
scribe Indonesian values in an open-ended format. In 2011, 2100 questionnaires were distributed to
respondents in Jakarta, Bandung, Semarang, and Surabaya. All respondents were chosen on the
basis of two main criteria: (1) that respondents live in one of four research areas (Jakarta, Bandung,
Semarang, or Surabaya), and (2) that respondents should work in the area that they live. A total of
1455 usable open-ended questionnaires were used to identify Indonesian values.
The second step was in-depth interviews with experts. Five experts were chosen based on their ex-
pertise in culture subjects. The results of those interviews were an understanding of values and Indo-
nesian values. In that interview, experts were also asked whether frequently mentioned values are
parts of Indonesian values. Multi-item scales then were developed based on frequently mentioned
values. The content validity of the items was assessed by two judges. Those judges were asked
whether those items represent frequently mentioned value statements. All items then were retained
and minor revisions were made for clarity improvement.
Survey method was used in this study for data collection. In November 2011 throughout January 2012
the survey was distributed to respondents in Jakarta, Bandung, Semarang, and Surabaya. Two thou-
sands questionnaires were distributed to those four cities. Again, all respondents were chosen based
on two main criteria: (1) that respondents live in one of four research areas (Jakarta, Bandung, Sema-
rang, or Surabaya), and (2) that respondents should work in the area that they live. Of 2000 question-
naires, 1209 questionnaires can be used for further analysis, which constitutes a 60 per cent usable
response rate.
Data analysis and scale reduction
The data were subjected to scale-reduction analyses consistent with procedures for developing
scales (e.g., Verbeke, 2007; Parasuraman et al., 2005: Adcock & Collier, 2001; Churchill, 1979). Reli-
ability analysis was first conducted. Examination of coefficient alpha and item-to-total correlation was
conducted to delete items whose elimination improved reliability coefficient alpha.
The next step was exploratory factor analysis (EFA). Factor analysis is used as a data reduction
technique (Hair, Black, Babin, Anderson, & Tatham, 2006). In the specific, EFA was applied to deter-
mine the number of underlying dimensions from a data (Hair et al., 2006). According to Hair et al.
(2006), all items revealed by the analysis were proceeding through confirmatory factor analysis (CFA)
as a confirmatory perspective.

Findings
The data were subjected to various scale-reductions. Reliability analysis was first conducted by
grouping the items according to the a priori dimensions from which they were derived. The next step
was assessing corrected item-to-total correlation. Items below 0.3 were then deleted to improve coef-
ficient alpha. The result shows that the coefficient alpha values range from 0.646 to 0.943. Those val-
ues are exceeding the sufficient value of 0.6 for early stage research (Nunnally, 1978).
Reliability is a necessary contributor to validity but is not a sufficient condition for validity (Cooper &
Schindler, 2011, p. 283). Thus, the next step is the assessment of validity by conducting exploratory
factor analysis (EFA) and confirmatory factor analysis (CFA). Table 1 shows the personal value items
that load on each of the factors and their respective factor loading. The factor analysis generated
seven factors that explained a total variance of 64.9%. Furthermore, the overall Kaiser-Meyer-Olkin
(KMO) measure of sample adequacy had highly acceptable value of 0.923 with a Bartlett Test of
Sphericity Value of 22584.253 with a p-value of 0.000.

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After the exploratory factor analysis, all items revealed by the analysis were proceeding through con-
firmatory factor analysis (CFA). Table 1 also presents CFA results for all items. The loadings generat-
ed are all significant (p = .000).
Table 1: CFA and EFA loadings
Personal values CFA Loadings EFA Loadings
Load- C.R. Factor1 Factor 2 Factor3 Factor 4 Factor 5 Factor 6 Factor 7
ings Individ- Harmo- Religion Religios- Hospital- Democ- Mutual
ualism ny ity ity racy Assis-
Fanati- tance
cism
Multual Assistance ( = 0.646)
The importance of cooperation 0.649 0.765
The importance thing in a com- 0.718 19.880 0.701
munity is mutual assistance
Religion ( = 0.831)
Religion is a guidance of people 0.735 0.783
behavior
Every person has to have a 0.756 25.859 0.697
religion
Religion is my faith that God is 0.712 23.035 0.718
exist
Religion is a foundation of peo- 0.773 33.372 0.763
ple behavior
Democracy ( = 0.695)
Democracy help Indonesia be- 0.642 0.793
come a better nation
Every citizen has their own right 0.715 21.588 0.717
to choose their lives
Election is a form of democracy 0.703 21.925 0.689
in Indonesia
Hospitality ( = 0.773)
I greet people first 0.770 0.764
I am easy to get close to others 0.808 36.249 0.803
I usually start conversations with 0.780 31.493 0.808
others
Harmony ( = 0.901)
Living in a harmony 0.781 0.679
Harmony prevent dispute 0.863 43.012 0.771
Everyone should maintain har- 0.858 41.940 0.811
mony
Harmony prevent seperation 0.922 39.179 0.773
Mutual assistance is a founda- 0.783 36.599 0.700
tion in a social life
The importance of cooperation 0.890 40.945 0.729
in a community
Everyone should help each oth- 0.840 38.906 0.710
er a community program
Help each other is a human 0.789 39.079 0.703
social characteristic
Religious Fanaticism ( =
0.797)
I defend my own religion 0.843 0.843
I fight for my religion 0.837 33.633 0.835
I maintain my belief in anyway 0.582 24.905 0.731
Individualism ( = 0.943)
I create orderliness in my own 0.730 0.680
way
Regulations can be made in 0.897 50.638 0.803
accordance with my needs
I try to reach my own purposes, 0.855 42.658 0.770
although contrary to the regu-
lations
Government laws is not an ab- 0.794 40.641 0.715
solute things to be implement-
ed
Other people need is not some- 0.882 39.913 0.814
thing that matters to me
I put my interests above the 0.920 41.666 0.827
interest of others
My opinion are always right 0.900 41.766 0.830
I need to get attention than oth- 0.900 42.395 0.829
ers
Everyone should follow my opin- 0.891 41.218 0.838

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ions
Individuals rights are more val- 0.811 37.399 0.764
uable than peoples right
Myself is more important than 0.906 40.681 0.814
others
Everyones needs can not be 0.794 32.880 0.722
generalized

Goodness-of-fit statistics
2
X = 2243.287
df = 539
GFI = 0.837
RMSEA = 0.051

Variance explained % of total 23.888 18.833 6.095 5.298 4.404 3.446 2.900
Cummulative % 23.888 42.721 48.816 54.114 58.518 61.964 64.864

Source: analysis of field data (2012)

Discussion
The aim of this research is to reveal Indonesian values today. This research shows that Indonesian
people still hold some values such as mutual assistance, religiosity, hospitality, and harmony.
However, this research also reveals new values that Indonesian people hold today. Those values are
democracy, religious fanaticism, and individualism.
Since the Soehartos resignation in May 1998, Indonesia could be considered as the third most popu-
lous democracy in the world (Buehler, 2009). His resignation triggered Indonesias transition to de-
mocracy. Democracy is then became a new common word that often spoken by Indonesian people.
Indonesian people becoming more open to reveal their thoughts and choices in many things. Free-
dom is then becoming a representation of democracy. Indonesian people express their freedom in
many ways. For examples, they have freedom of speech to criticize government policy. On the other
hand, demonstration is becoming common phenomena in Indonesia. Media and press in Indonesia
also have more freedom and no more fear that they will be shut down when they express their opinion
differently with the government.
Freedom is one of the main representations of democracy (Feinstein, 1995). In the specific, consumer
behavior in the situation of freedom is often related to the euphoria that many choices are available
and the increasing of purchasing power (Tabernaus, 2012). People believe that democracy influence
the better economy prospect, that is, lower inflation, lower political instability, and higher economic
freedom (Doucouliagos & Ulubasoglu, 2012).
Being religious is known as one of the main value of Indonesian people. However, religious fanaticism
is now becoming expressed openly by some Indonesian people. A research conducted by Lembaga
Kajian Islam dan Perdamaian (LaKIB, Institute for Islamic Studies and Peace) in October 2010
January 2011 in Jakarta showed that 49.9% students from 59 private schools and 41 public schools
agreed violence actions to resolve religious problems. Moreover, the research also revealed that
some respondents agreed of suicide bombing for religious problems (Pratiwi, 2012).
Religious fanaticism is becoming openly expressed in Indonesia also can be shown from another
example. There were two schools in Karanganyar Central Java that refused to honor Indonesian flag
and sang the national anthem of Indonesia because it is believed contrary to the religion (Pratiwi,
2012).
Fanaticism is related to human psychological type (Engineer, 1997). It can be defined as over-
enthusiasm and zealousness (Engineer, 1997, p.701). Fanaticism also means as extraordinary
devotion to an object (Chung, Beverland, Farrelly, & Quester, 2008). The object may refers to a
brand, product, person, or other consumption activities (Thorne & Bruner, 2006 cited by Chung et al.,
2008). Therefore, fanaticism influences consumer behavior. Consumer with fanaticism toward one
thing is characterized by high levels of loyalty and devotion. Moreover, they have a strong belief,
feeling, and dedication toward that object (Chung, et al., 2008).
This research revealed that individualism is now as one value that Indonesian people hold today. This
is not surprising as individualism in developing countries in on the rise (Zhang & Shavitt, cited by
Hawkins & Mothersbaugh, 2010). Not only that, individualism is known as a global trend in the world
(International Markets Bureau, 2010). In relating with consumer behavior, a brand conscious decision-
making style and hedonism are characteristic individualistic cultures (Leng & Botelho, 2010). Con-

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sumers in individualist society tend not to follow social norms, but they make their purchase decisions
by themselves (Roth, 1995). Furthermore, consumers with individualistic values tended to be more
innovative in buying. In other words, they have more intention to buy new items or new products
(Roth, 1995).

Conclusions
This study revealed some new values held by Indonesian society today. These new values are:
mutual assistance, religiosity, democracy, hospitality, harmony, religious fanaticism, and
individualism. Since past time, mutual assistance, religiosity, harmony, and hospitality are known as
Indonesian values. However, globalization gives both positive and negative influences on society val-
ues around the world including Indonesia which can have many impacts. Specifically, globalization
has spread dominant western culture all over the world, that is, individualism. Individualism then has
become the value for many nations in the world, including Indonesia. Our empirical study may con-
tribute to understanding the connection between national culture and decision-making styles, and may
inspire further studies to explore this relationship.

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Acknowledgement
This research is funded by Hibah Bersaing research grant (2011) and LPPM University of Pelita
Harapan (2011).

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