Determinants of Customer Loyalty: Empirical Study from Online Food Delivery Services

Abstract

The rapid growth of information technology and communication today has disrupted various sectors, including the food sector. Consumers’ behavior in ordering food has shifted from offline to online with the presence of a number of food delivery service applications. This situation encourages the growth of online applications that provide food delivery services, so intense competition is unavoidable. The research aimed to investigate the role of e-service quality and sales promotion in influencing customer e-trust and e-satisfaction and its implications for customer loyalty. The research used a quantitative approach with the survey method. The population was online food delivery service application users who lived in the Jakarta area, with a sample of 250 respondents. The data were collected through a questionnaire designed with a 5-point Likert scale and analyzed using SEM-PLS. Research findings show that customer e-service quality and sales promotion significantly influence customers’ e-trust and e-satisfaction. Other findings show that customers’ e-trust and e-satisfaction significantly affect customer loyalty. The results also indicate that customers’ e-trust and e-satisfaction significantly mediate the effect of e-service quality and sales promotion on customer loyalty. In the era of the digital economy, good service and effective promotion still have an important role in increasing trust and satisfaction and a positive impact on increasing consumer loyalty ultimately.