MARKETING OF VEGETABLES THROUGH E-COMMERCE IN BALI PROVINCE

BPS National Socioeconomic Survey of Province Bali in 2016 to 2017 years, explains the order of foodstuffs (staple foods) with the highest level of consumption after grains are vegetables. Marketing vegetable in the Province Bali were still conventional, compared to some regions in Java which was increasingly aggressively marketing agricultural products with e-commerce. The purpose of this study is to examine the profile of e-commerce users. This research was explained characteristics, marketing management activities on the e-commerce platform, easy of used, e-commerce adoption and business success. This research was conducted on the e-commerce platforms Facebook, Instagram, Tokopedia, and Shopee. The research sample of 30 vegetable traders using e-commerce, analyzed using qualitative descriptive methods and Partial Least Squares (PLS). The results showed that most traders had a relatively young age with a degree of undergraduate education. E-commerce can increase merchant income by applying management principles to the marketing process, payment, delivery, promotion, price, marketing targets and product standardization. The results of the study can provide recommendations to the younger generation that e-commerce of agricultural products in business is


INTRODUCTION
The National Socio-Economic Survey of Statistics Indonesia of Bali Province from 2016 to 2017 showed that the order of the foodstuff groups (staple food) with the highest consumption level after grains was vegetables. Muna, et al. (2020) stated that the high and increasing demand for vegetables in Indonesia encourages farmers to produce vegetable crops of optimal quality and quantity. Bali Province, which is frequently considered a tourist destination, can establish vegetable selling businesses to meet tourism needs. This is because, in a study conducted by Bagus and Surya (2007), it is stated that every one percent increase in tourist spending will be followed by an increase in the demand for output from the vegetable sub-sector by 2.05%, indicating that this sector supports the tourism sector in Bali. By maintaining conventional marketing only, greengrocers will find it difficult to develop, as shown in a study conducted by Tuhumury (2014) regarding vegetable hawkers in Rumah Tiga Village, the income earned by the greengrocers was IDR 1,298,693 per month and IDR 311,097.5 per month in Poka Village. By using the traditional system, these greengrocers sacrifice more physical and time in selling their vegetables. Looking at the future value at the time of this year, the low value has not been able to meet the needs of the family and develop a bigger business.
In the marketing process, the markets encountered are varied (heterogeneous). Even though they differ, it can be seen that there are similarities in personal and environmental characteristics in particular segments or parts of the market (Gitosudarmo, 2008). Therefore, what greengrocers need to carry out is to find the right target in a short time. (Trisna et al.) 57 Table 1

No
Types of E-commerce Information 1.
Facebook On this platform, greengrocers usually display product images with a brief description accompanied by telephone and Whatsapp contacts that can be contacted. There is also a product description along with the price and quality of the product.

Instagram
Most of the vegetable marketing on this platform provides the name of the business, the original image of the product with a brief description, the location of the business, the telephone contact, and the type of product being sold. On this platform, buyers see one by one the profiles and types of products sold in one business profile without any other business recommendations.

3.
Tokopedia This platform displays product images with a brief description, including the price, weight, condition, insurance, and minimum order. This platform provides chat services with greengrocers and it requires a brand image.

4.
Shopee This platform displays 2 to 3 images per product, with product specifications ranging from price, postal fee, variation options, shelf life, and store or greengrocer location. On this platform, buyers can chat with greengrocers. There is also a system that displays recommendations on this platform for similar products from different greengrocers. It requires a brand image. Source: Secondary Data, 2019 This is similar to that in marketing non-food products such as selling ready-to-wear clothes using e-commerce or online system, in which it obtains higher income than sales without using e-commerce.
Online marketing is a marketing communication activity using the internet media. Online marketing is not limited by time compared to offline businesses because it can sell for 24 hours. Based on Table 1, all platforms display product images with descriptions to convince potential buyers. Social media-type e-commerce platforms such as Facebook and Instagram will not display product recommendations from other sellers. However, in e-commerce platforms like Tokopedia and Shopee, there will be recommendations for similar products from other outlets. E-commerce is currently not only using online websites but also spreading through online social media or social networks which are usually used for friendship and information exchange. Several social media that are quite popular today in Indonesia include Facebook, Twitter (Saflianda, et al., 2017) Furthermore, based on data from Statista Digital Market Outlook (2019), the ecommerce category with very high growth was the food category, which was more than 30%. This food category is certainly a subsystem of agribusiness, where ecommerce in agribusiness products is now increasingly developing from the development efforts by government, individual, and non-governmental (Kemp & Moey, 2019).
Most of the greengrocers using ecommerce in the Bali market the vegetable groups of Solanaceae, Cruciferae, and Leguminosae. The marketing that is carried out is by displaying images to unique designs on the e-commerce account used. The four ecommerce platforms used by greengrocers in Bali Province are Instagram, Facebook, Tokopedia, and Shopee. Thus, in product orders, the average distribution technique used by greengrocers is direct delivery by the greengrocer to the buyer's location, using the Cash on Delivery (COD) system. According to Alhabsyi et al. (2014), COD is a payment method where the buyer agrees with the seller to pay when the goods purchased have arrived at the delivery address.
Based on data from (Kemp & Moey, 2019) Statista Digital Market Outlook (2019) the e-commerce category with very high growth was the food category, which was more than 30%. The high growth of ecommerce users in the food category can become an opportunity in cultivating agricultural products, especially vegetables in Bali Province. Till now, research on greengrocer profiles mainly discussed the characteristics and income of conventional greengrocers. This study examined more deeply the greengrocer profile in terms of marketing management activities on the ecommerce platforms, benefits, ease of use, ecommerce adoption, and the success of the greengrocers' business. This study is expected to motivate the growth of e-commerce users in the food category in Bali Province. This study aimed to 1) examine the profile of greengrocers who use e-commerce in vegetable marketing, 2) to examine marketing management activities on the e-commerce platform for selling vegetables, and 3) to analyze the factors affecting the success of the greengrocers' business using e-commerce in Bali Province.

RESEARCH METHODS
This study was conducted in Bali Province. The respondents in this study were 30 greengrocers who used e-commerce on four e-commerce platforms, including Facebook, Instagram, Tokopedia, and Shopee. The four platforms were deliberately chosen (purposive sampling) because, in their specialty, they are a type of e-commerce website with the type of online marketplace and social media online shop where there are greengrocers from Bali Province. The number of greengrocers using e-commerce in Bali Province was unknown. In determining the sample of this study, it was based on the analysis technique used. The analysis technique used was Variance Based SEM or better known as Partial Least Squares (PLS) where PLS uses the bootstrapping method or random multiplication. Research that has a small sample can still use PLS. The primary data were obtained directly from greengrocers, which were related to indicators explaining characteristics, income levels, marketing management, and business success. The secondary data were obtained from the results of previous studies related to this study including studies on the profile of vegetable hawkers, analysis of e-commerce users, books of marketing management, e-commerce, and e-marketing. The data collection techniques used observation and interview techniques by directly observing e-commerce users who were guided by a list of questions or closed questionnaires. In detail, the data analysis method used for each objective is described as follows: 1. Analysis of the first objective (reviewing the profile of greengrocers who use ecommerce) In the analysis of the first objective, it was analyzed descriptively qualitatively using simple tabulations. The analysis of the profile of e-commerce user sellers on vegetable marketing in Bali Province referred to: (1) age, (2) gender, (3) capital, (4) trading experience, (5) main occupation, (6) latest education (7) form of business, (8) age of business, (9) types of vegetables being sold. 2. Analysis of the second objective (examining marketing management activities on e-commerce platforms on vegetable marketing) In the second objective analysis, it was analyzed descriptively qualitatively. Marketing management activity studies were reviewed in terms of the product acquisition, ordering system, payment, delivery, promotion, pricing, marketing targets, risks and constraints of online marketing, product standardization, and packaging methods. This study explained a description of the marketing system and an overview of the company that was designed in each of the e-commerce platforms used. 3. Analysis of the third objective (factors affecting the success of the greengrocer's business) a. Measurement Model or Outer Model Convergent validity of the measurement model with the indicator reflective model was assessed based on the correlation between the item score/component score with the construct score calculated by PLS. The reflective measure was considered high if it correlated more than 0.70 with the construct to be measured. For research in the early stages of developing a measurement scale, the loading value of 0.5 to 0.60 is considered sufficient (Ghozali, 2014). The discriminant validity of the measurement model with reflective indicators was assessed based on the cross-loading measurement with the construct. If the construct correlation with the item of measure is higher than the measure of the other constructs, it will show that the latent construct predicts the size of the block better than the other block sizes. Another method for assessing discriminant validity is comparing the value of the square root of Average Variance Extracted (AVE) for each construct with the correlation between the other constructs in the model. If the AVE square root value of each construct is higher than the correlation value between constructs and other constructs in the model, it is considered to have good discriminant validity. b. Structural Model or Inner Model The inner model (inner relation, structural model, and substantive theory) describes the relationship between latent variables based on the substantive theory. The structural model was evaluated using the R-square for the dependent construct, the Stone-Geisser Q-square test for predictive relevance, and the t-test and the significance of the structural path indicator coefficients. In assessing the model with PLS, it starts by looking at the R-square for each dependent latent variable. The interpretation is the same as the interpretation in regression. Changes in the R-square value can be used to assess the effect of certain independent latent variables on the dependent latent variable whether it has a substantive effect or not (Ghozali, 2014).
The SEM-PLS diagram (Figure 1) explains that the dependent variable (Business Success) was affected by several independent variables: Benefits, Ease of Use, and Ecommerce Adoption.  : Able to increase business income

Profiles of E-commerce User Sellers on Vegetable Marketing
Based on age group, it is clearly shown that the dominant age groups of greengrocers using e-commerce in Bali Province were from 30 years to 35 years. This proves that information and communication technology has been dominated by young people. The results of this study are in line with a study by Setyawan, et al. (2017) towards ready-to-wear clothe sellers who use e-commerce where the age of the sellers ranged from 20-39 years. According to Dewi and Sudarma (2020), young farmers also tend to be more active in developing their businesses. They are more persistent and more receptive to new innovations than the old age group of farmers.
The initial capital of greengrocers in selling vegetables of 30% was in the range of fewer than 10 million rupiahs. Besides, greengrocers with a capital of more than 100 million were those who own land assets, in other words, they sell as well as farm. The high business capital of greengrocers was due to a large amount of business capital using hydroponic technology. Acquisition of capital was from privately owned funds, loans, and investments between business partners. In line with a study by Indriasti (2013), because a hydroponic business requires high investment costs, hydroponic business needs to pay attention to the types of vegetables produced, including vegetables that have a high selling value or vegetables that are classified as exclusive.
The majority of greengrocers who use e-commerce had less than five years of experience with a percentage of 46.7%. In accordance with a study by Arisena and Darmawan (2020), there are still many new greengrocers who see opportunities to start a business in selling vegetables. This study showed that in the era of technological advancement, there is no limitation of experience that limits an individual's desire to start a business. Many sellers start selling because of circumstances without having experience. Most sellers think that everything can be learned and can be facilitated with the help of technology. According to Ries (2011), a start-up is a newly established business and is still at the stage of development and research to look for market potential and all are classified in the field of technology and information business. Many start-up businesses have sprung up in Indonesia, including Bukalapak, Gojek, and Tokopedia. Further, the results of the study by Arisena & Darmawan (2020) stated that most of the sellers had trading experience under 12 months. This phenomenon illustrates that there are still many new greengrocers who see an opportunity to start a business in selling vegetables.
A percentage of 50.0% or 15 out of 30 respondents made selling their main job. This is because the income earned by sellers was deemed sufficient and they wanted to focus on taking care of a job that they were interested in, which was selling vegetables or vegetable agribusiness. The most recent education level taken by the greengrocers using e-commerce was up to college. This shows that the higher the level of education, the higher the quality of work that can be carried out. The results of this study showed that not all tertiary education graduates wish to become job seekers but they are now capable of becoming job creators. According to Todaro & Smith (2013), education is a fundamental development goal in which education plays a key role in shaping a country's ability to absorb modern technology and to develop a capacity to create sustainable growth and development. Sahanaya, et al. (2020) also argued that education allows a person to gain experience, knowledge, both automatically and practically regarding the individual's object of attitudes.
The form of the company used by the majority of greengrocers was in the form of individual companies (PO) by 80.0% or 24 of 30 respondents. This phenomenon proves that e-commerce is not only used by large companies such as Limited Liability Companies (PT) or Limited Partnership (CV) but can be used by small individually owned companies. E-commerce management is quite easy and does not require a lot of people or money to operate. Individual companies were chosen because the business was started on a small scale so that it is still in the form of PO, but some greengrocers are currently in the stage of making a business license to become a PT or CV.
The types of vegetables sold by greengrocers are quite diverse. Some said that the number of types of vegetables will continue to grow. A percentage of 20% of the 30 greengrocers sold more than 100 vegetable items, including organic vegetables, vegetables, spice vegetables, edible flowers, and mushrooms. The types of vegetables that are definitely sold by greengrocers are lettuce and chili because of market demand that is more used for food ingredients in households and in the hospitality industry. Diverse market demand shows the importance of diversifying agricultural products. A study by Mu'min, et al. (2014) stated that there was a high enough and significant correlation between agricultural diversification and farmers' income in Belawang Village, Barito Kuala Regency. This was confirmed by the results of the study by Suryati, et al. (2020) with research on the theme of e-commerce purchasing decisions.  The results showed that there was an effect of product variations on consumer decisions to buy products in e-commerce. This means that producers must think about making various product variations to increase consumer decisions to buy products by ecommerce.

Marketing Management Activities on Ecommerce Platforms
The results showed that the type of ecommerce platform most used by greengrocers using e-commerce in Bali Province was Instagram. In line with a study by Suryati, et al. (2020) which analyzed products in the agricultural sector, it is stated that the e-commerce platform to buy processed aloe vera products were dominant on Instagram. This is because the social media that is most often used in Indonesia is Instagram.
Based on the results of the study, 60% of the 30 greengrocers obtained their products from their own cultivation, either with soil media or with a hydroponic system. Besides, 26.7% of the 30 greengrocers obtained their products from partner farmers from Denpasar City, Tabanan Regency, Buleleng Regency, Karangasem Regency, Badung Regency, and Bangli Regency.
The method of ordering by consumers to greengrocers using the Facebook and Instagram platforms was Whatsapp. The advantage of using WhatsApp for the greengrocers was that consumers and greengrocers can communicate more privately and in detail. On the Tokopedia and Shopee platforms, orders can be made directly on the platform. Both of these platforms have become a complete unified system for a single platform. Starting from the module for receiving orders, non-cash payments, product catalog information, interactive questions and answers, linking to other applications, and recording complaints. Based on the explanation by the greengrocers, it can be seen that the greengrocers preferred systems that have a complete module (one door) such as Shopee but with promotions that are easily seen as a daily activity that is always updated, such as in social media ecommerce, which is Instagram.
The payment system carried out by consumers on the Instagram and Facebook platforms is more dominant using transfers via accounts or by payment applications. Transactions in B to B (Business to business) payment terms are for a month, which is paid in cash and transfers depending on the agreement between the greengrocer and the consumer. Then greengrocers who use the ecommerce platform of Tokopedia and Shopee make payments according to the flow provided on the platform. There are transfer payments with various types of non-cash payment methods, and Cash on Delivery (COD) payment methods. Mulyasari, et.al (2014) stated that the most widely used ecommerce payment system in Indonesia is non-cash payment, which is by online credit card with a percentage of 76.4% on the lazada.co.id, tokopedia.co.id, and bhinneka.com platforms.
The delivery system used private transportation. The greengrocers had various numbers of cars or motorbikes as transportation for delivering goods in large quantities or following minimum orders. If consumers buy goods in large quantities or above the minimum order, the consumers are not charged with shipping costs because it includes the total expenditure. If the number of consumer orders is below the minimum order limit, the shipping method offered by the greengrocer was to use an agent such as a motorbike taxi and the delivery fee was charged to the customer. Vegetables ordered by consumers from outside Bali were sent in express packages according to the agreement between the greengrocers and buyers by sea. In addition, there are third parties for the delivery of vegetables outside Bali Island, such as to Papua, where the third party will take care of the delivery and the greengrocers do not have further responsibility when the goods are received by the third party.
The increasing number of online businesses has a positive impact on the shipping service business, in which business in the shipping service sector is growing from year to year. In line with the increasing internet penetration in Indonesia, the market share for shipping services/delivery agents will also increase. Anandhita (2013) revealed that the use of e-commerce has a higher social and environmental impact than paying for ecommerce itself, because now e-commerce, organic farming, and bio intense are working toward sustainability.
The use of promotional strategies through social media increased marketing performance. Based on the response of greengrocers about the number of sales, it becomes an indicator with a strong value for the success variable of e-commerce users of greengrocers. This shows that most of the greengrocers perceived an increase in the number of sales (selling volume) of vegetables to consumers. This is because, with social media sharing, the message conveyed will spread widely in a very short time, which indirectly affects consumers' minds to see the product being delivered or sold (Prihadi and Susilawati, 2018).
Promotions carried out by greengrocers on the Facebook and Instagram platforms are posting (displaying) photos and videos on business account pages. The next step is that greengrocers will carry out paid advertisements so that their product photos or videos can be seen by other users of the Facebook and Instagram platforms, even though they do not search the greengrocers' business. The promotion of greengrocers on the Shopee and Tokopedia platforms is to make discount packages for particular periods and particular products, so that the customers can see an offer of free shipping in the product design. For example, one of the greengrocers displayed a vegetable package for IDR 50,000 which contained 5 kinds of vegetables and spices so that consumers who buy would get a cheaper price of around 10% and free shipping.
Greengrocers set a standard for the products they sold to consumers. The product standardization that is being owned by some greengrocers is the standard of hydroponic, organic, and non-organic vegetables with their respective criteria. Some of the organic vegetables that are sold are certified organic to further strengthen consumer confidence. This is carried out to avoid consumer dissatisfaction with the products being marketed. Supervision is carried out by greengrocers as vegetable producers to ensure the cultivation process runs well, so that the products produced by partner farmers are guaranteed quality for potential buyers. Meanwhile, greengrocers who collect vegetables at the wholesale vegetable market have a product standard which is carried out by direct sorting of products to assess the quality of size, shape, appearance, and taste.
Greengrocers who paid attention to the quality of vegetables before they reach consumers made the right decision. When the vegetables are received by greengrocers, they did not directly hand over the vegetables to consumers, but they were sorted again by shape, size, taste, color, and cleanliness. This is because the quality of vegetable products is very much considered by consumers. It is evident from a study by Wiyastuti (2018) which showed that organic vegetable purchasing decisions are significantly influenced by product quality and price. Therefore, it is important to maintain product quality and organic certification for greengrocers selling organic vegetables so that consumers will not doubt it. Further results of a study by Sakoikoi & Priyanto (2019) with the title "Determinants of Online Vegetable Shopping Consumer Satisfaction" obtained the results that the quality of vegetables plays an important role in consumer satisfaction because the quality of vegetables increases sales of vegetable products offered by online merchants.

Factors Affecting the Greengrocers' Business Using E-Commerce
The results of data processing with the help of Smart-PLS (Partial Least Square) software can be seen in Figure 2.
The model in Figure 2 shows that Ma and KP were independent variables that affected AE which was an intervening variable (mediator variable) where Ma and KP predicted AE and predicted KU as the dependent variables, so that part of the variation in AE could be explained by Ma and KP and variation in KU could be explained by AE. Therefore, it can be considered that Ma and KP affected KU through AE. The higher the Ma and KP values, the higher the AE value, then the higher the KU value, and vice versa (Widhiarso, 2010). In line with a study by Wuisan (2017) on batik sellers, it is stated that the benefits and ease of use had a significant and positive effect on the adoption of e-commerce. Then, the adoption of ecommerce has a significant and positive effect on business success. Moreover, a study by Purwandari (2016) showed that perceived benefits had a positive effect on the intention to use the internet to make online purchases. Meanwhile, perceived convenience had a potential effect on the benefits and intentions of online purchases. Besides, according to a study by Saputra, et al. (2018), e-commerce made a positive effect on business success, indicated by the higher the e-commerce, the higher the business success in the Cigondewah Textile Area, Bandung City.

CONCLUSIONS
It is obtained that greengrocers who use e-commerce in Bali Province were from young people who mastered digital information and communication technology, ranging in age from 30 to 35 years. This age comparison showed that the existence of modern technology in agriculture had also been able to be applied by young people and dominated rather than using conventional methods which were previously dominated by those aged 40 years and over. The online system on vegetable marketing saw opportunities for internet access, making it easier for the marketing process. The chances of getting potential buyers were more than opening a physical store because the marketing area was not limited. The variable affecting the success of the greengrocers' business was that which had a t-statistic value higher than the value (t-table significance of 5% = 1.96). The variables that had a significant effect were e-commerce adoption of 19.818. Besides, the ease of use of ecommerce adoption value was 2,917, and the benefits of e-commerce adoption value was 2,028 which had a positive and significant effect.
The results of sales using e-commerce were much higher when compared to the results of sales without using e-commerce. The researcher suggested that vegetable entrepreneurs who do not yet know the benefits of using e-commerce as a selling medium can switch to using e-commerce. Outreach and practices regarding the use of ecommerce to greengrocers in Bali Province need to be further intensified, not only in urban areas but also in remote villages. This will greatly help the community's economy to become better, especially for the community in rural areas who are still difficult to market agricultural products. Further, it is better if training is provided to business players regarding the development of e-commerce towards an increasingly sophisticated system so that trade agriculture in Bali Province can run well.