Building Loyalty in Indonesia 's E-Commerce Giants: The interplay of Service, Trust, and Satisfaction
##plugins.themes.bootstrap3.article.sidebar##
##plugins.themes.bootstrap3.article.main##
Abstract
With the tight lockdown regulations and restrictions, the online shopping trend has resurfaced and made its way to the top due to the COVID-19 pandemic, which led to an increase in online shopping users for about 51% in less than a year. While it offers a multitude of advantages, including convenience, vast selection, and competitive pricing, the inherent lack in physical product interaction can lead to negative experiences if expectations are not met. This study aims to investigate the path towards customer loyalty that includes service quality, trust, and customer satisfaction within Indonesia’s e-commerce giants. Tokopedia and Shopee were chosen as the primary focus of this study due to their market dominance that would capture the substantial portion of Indonesia’s e-commerce industry and draw more generalizable conclusions. Additionally, this study also incorporates the five dimensions of SERVQUAL theory, namely reliability, responsiveness, assurance, empathy, and tangibility, which was less investigated in previous research, especially in Indonesia. An online survey method was employed and distributed through social media platforms to collect the data, and a quantitative analysis was then performed using the data collected from 213 valid respondents who are Indonesian citizens, currently residing in Indonesia, and have recent online shopping experiences through both Tokopedia and Shopee. The empirical results offer valuable insights into customer loyalty within the Indonesian e-commerce context. This study reveals that service quality significantly affects trust, both service quality and trust significantly affect customer satisfaction, and satisfaction was also found to significantly affect customer loyalty. The research emphasizes the paramount importance of prioritizing service excellence across all customer touchpoints, which translates into actions such as developing and implementing standardized service protocols, investing in employee training programs that equip staff with exceptional service delivery skills, and actively soliciting customer feedback to identify areas. By understanding the interplay between service quality, trust, satisfaction, and ultimately, customer loyalty, e-commerce businesses in Indonesia can develop effective strategies to not only attract new customers but also cultivate a loyal and dedicated following.
##plugins.themes.bootstrap3.article.details##
Adwan, A. S. A., Kokash, H., Adwan, A. A., Alhorani, A., & Yaseen, H. (2020). Building customer loyalty in online shopping: The role of online trust, online satisfaction and electronic word of mouth. International Journal of Electronic Marketing and Retailing, 11(3), 278. https://doi.org/10.1504/IJEMR.2020.108132
Alessa, A. A., Alotaibe, T. M., Elmoiz, Z., & Ahmad, H. E. (2021). Impact of COVID-19 on Entrepreneurship and Consumer Behaviour: A Case Study in Saudi Arabia. The Journal of Asian Finance, Economics and Business, 8(5), 201–210. https://doi.org/10.13106/JAFEB.2021.VOL8.NO5.0201
Blut, M. (2016). E-Service Quality: Development of a Hierarchical Model. Journal of Retailing, 92(4), 500–517. https://doi.org/10.1016/j.jretai.2016.09.002
Cameran, M., Moizer, P., & Pettinicchio, A. (2010). Customer satisfaction, corporate image, and service quality in professional services. The Service Industries Journal, 30(3), 421–435. https://doi.org/10.1080/02642060802236111
Chandra, L. R., Ferdyansyah, F., Denisha, M., Bachtiar, W. P., & Tunjungsari, H. K. (2022). Analysis of Increasing Online Business in Indonesia during the COVID-19 Pandemic: 3rd Tarumanagara International Conference on the Applications of Social Sciences and Humanities (TICASH 2021), Jakarta, Indonesia. https://doi.org/10.2991/assehr.k.220404.317
Corbitt, B. J., Thanasankit, T., & Yi, H. (2003). Trust and e-commerce: A study of consumer perceptions. Electronic Commerce Research and Applications, 2(3), 203–215. https://doi.org/10.1016/S1567-4223(03)00024-3
Daroch, B., Nagrath, G., & Gupta, A. (2021). A study on factors limiting online shopping behaviour of consumers. Rajagiri Management Journal, 15(1), 39–52. https://doi.org/10.1108/RAMJ-07-2020-0038
Firmansyah, N., & Ali, H. (2019). Consumer Trust Model: The Impact of Satisfaction and E-Service Quality toward Repurchase Intention in E-Commerce.
Hermansyah, Y. (2024). Marketing Communication Strategy in the Retail Sector: Examining Repurchase Intention. Emerging Science Journal, 8(1), 110–124. https://doi.org/10.28991/ESJ-2024-08-01-08
Juwaini, A., Chidir, G., Novitasari, D., Iskandar, J., Hutagalung, D., Pramono, T., Maulana, A., Safitri, K., Fahlevi, M., Sulistyo, A. B., & Purwanto, A. (2022). The role of customer e-trust, customer e-service quality and customer e-satisfaction on customer e-loyalty. International Journal of Data and Network Science, 6(2), 477–486. https://doi.org/10.5267/j.ijdns.2021.12.006
Kurniadi, H., & Ali Saeed Rana, J. (2023). The power of trust: How does consumer trust impact satisfaction and loyalty in Indonesian digital business? Innovative Marketing, 19(2), 236–249. https://doi.org/10.21511/im.19(2).2023.19
Lempisik A.K.A Marx, M. J., & Faris Niasin, M. A. (2023). Diffusion of Innovation of E-Commerce among Service Sector SMEs in Malaysia During and Post-Pandemic Covid-19: A qualitative approach. Environment-Behaviour Proceedings Journal, 8(SI15), 31–36. https://doi.org/10.21834/e-bpj.v8iSI15.5073
Mishra, P., Pandey, C., Singh, U., Gupta, A., Sahu, C., & Keshri, A. (2019). Descriptive statistics and normality tests for statistical data. Annals of Cardiac Anaesthesia, 22(1), 67. https://doi.org/10.4103/aca.ACA_157_18
Nguyen, L., Nguyen, T. H., & Tan, T. K. P. (2021). An Empirical Study of Customers’ Satisfaction and Repurchase Intention on Online Shopping in Vietnam. The Journal of Asian Finance, Economics and Business, 8(1), 971–983. https://doi.org/10.13106/JAFEB.2021.VOL8.NO1.971
Pasaribu, F., Sari, W. P., Bulan, T. R. N., & Astuty, W. (2022). The effect of e-commerce service quality on customer satisfaction, trust and loyalty. International Journal of Data and Network Science, 6(4), 1077–1084. https://doi.org/10.5267/j.ijdns.2022.8.001
P.J., S., Singh, K., Kokkranikal, J., Bharadwaj, R., Rai, S., & Antony, J. (2023). Service Quality and Customer Satisfaction in Hospitality, Leisure, Sport and Tourism: An Assessment of Research in Web of Science. Journal of Quality Assurance in Hospitality & Tourism, 24(1), 24–50. https://doi.org/10.1080/1528008X.2021.2012735
Rita, P., Oliveira, T., & Farisa, A. (2019). The impact of e-service quality and customer satisfaction on customer behavior in online shopping. Heliyon, 5(10), e02690. https://doi.org/10.1016/j.heliyon.2019.e02690
Sharma, A., & Bahl, D. S. (2018). Influence of Service Quality of E-Commerce Websites on Customers’ Trust, Commitment and Loyalty: A Case of Indian Customers. 08(09).
Sürücü, L., & Maslakçi, A. (2020). Validity And Reliability In Quantitative Research. Business & Management Studies: An International Journal, 8(3), 2694–2726. https://doi.org/10.15295/bmij.v8i3.1540
Susiang, M. I. N., Suryaningrum, D. A., Masliardi, A., & Abdillah, F. (2023). Enhancing Customer Experience through Effective Marketing Strategies: The Context of Online Shopping. SEIKO : Journal of Management & Business, 6(2).
Wattoo, M. U., & Iqbal, S. M. J. (2022). Unhiding Nexus Between Service Quality, Customer Satisfaction, Complaints, and Loyalty in Online Shopping Environment in Pakistan. SAGE Open, 12(2), 215824402210979. https://doi.org/10.1177/21582440221097920
Widayat, & Irfani, A. D. (2020). The Impact of Bad Experience, Disappointment, and Shopping Intensity on Digital Shoppers’ Anxiety. Proceedings of the 5th ASEAN Conference on Psychology, Counselling, and Humanities (ACPCH 2019). Proceedings of the 5th ASEAN Conference on Psychology, Counselling, and Humanities (ACPCH 2019), Penang, Malaysia. https://doi.org/10.2991/assehr.k.200120.041
Yuriah, S., Ananti, Y., & Nurjayanti, D. (2024). Dynamics of the experience of sexual violence and its impact on girls in Ogan Komering Ulu Regency. International Journal of Health Sciences, 8(S1), 579–592. https://doi.org/10.53730/ijhs.v8nS1.14860
Yuriah, S., Juniarti, S., & Sepriani, P. (2023). Midwifery care for Mrs “Y” at BPM Soraya Palembang. International Journal of Health Sciences, 7(S1), 2966–2984. https://doi.org/10.53730/ijhs.v7nS1.14631
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.