Abstract

The purpose of this study is to identify user interface quality, information quality, perceived security, perceived privacy, and online customer review as a factor affecting customer trust and customer satisfaction in online business, especially in C2C e-commerce platform in Indonesia. This study also analyzes the effect of customer trust and customer satisfaction as key factors influencing customer loyalty. A quantitative approach has been employed. The data collection using online questionnaire in 206 respondents and measurement using Likert scale. For the purpose of data analysis, Partial Square Structural Equation Modeling (PLS-SEM) has been adopted. This study found that user interface quality and information quality have positive effect on customer trust and customer satisfaction. This study also found that customer satisfaction influencing customer loyalty significantly in Shopee. This study suggests that Shopee as an e-commerce in Indonesia must focus on their customer trust and customer satisfaction strategies by increasing the quality of user interface quality and information quality to maintain the loyalty of their customers.

Highlights

  • Customer loyalty is a major goal in the marketing strategy of a business and provides favorable results (Kotler, 2010). (MittaL & Sheth, 2004) stated that customer loyalty as a consumer commitment to a brand, store or supplier based on positive traits and is reflected in consistent repeat purchases

  • In summary, this research confirmed that user interface quality and information quality were important factor on both customer trust and customer satisfaction for e-commerce Shopee

  • While, perceived security only supported on customer trust and not supported on customer satisfaction

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Summary

Introduction

Customer loyalty is a major goal in the marketing strategy of a business and provides favorable results (Kotler, 2010). (MittaL & Sheth, 2004) stated that customer loyalty as a consumer commitment to a brand, store or supplier based on positive traits and is reflected in consistent repeat purchases. (MittaL & Sheth, 2004) stated that customer loyalty as a consumer commitment to a brand, store or supplier based on positive traits and is reflected in consistent repeat purchases. Loyal customers are more likely to discuss past service experiences positively than nonloyal customers, creating a potential for word-of-mouth advertising at no extra cost to the service provider (Shoemaker & Lewis, 1999). From a seller’s perspective, customer loyalty has been recognized as a key path to profitability. Customer loyalty can increase the company profits because loyal customers will be willing to spend higher costs for the products offered by a brand, store or supplier and be more tolerant if they get some problems from products or services they have purchased. In e-commerce industry, the difficulty of attracting customers through internet media and making them can’t turn to other e-commerce makes customer loyalty becomes very valuable (Zhang, Dixit & Friedmann, 2010)

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