The impact of brand trust on brand loyalty mediated by customer satisfaction: Case of Tokobagus.com (now OLX.co.id)

Abstract

Visiting stores as the conventional way of shopping has been modernized into an online shopping trend. In fact, the emergence of numerous e-commerce sites leads to an interesting and needs-to-be-anticipated competition. Tokobagus.com (now OLX.co.id), a leading online shopping website in Indonesia with the highest visitors traffic, needs to sustain its position by implementing a good strategy and employing necessary factors in its business, i.e.brand trust, customer satisfaction and brand loyalty. These are required to boost profits and sustain the business within the tight competition. This study is conducted as a causal-associative research by using a quantitative approach. One hundred respondents are surveyed through online questionnaires with a convenience sampling. Their responses are analyzed by using descriptive and path analyses. The results show that the brand trust of Tokobagus.com is high, meaning that consumers are satisfied with the business. In parallel, the brand loyalty is high. In fact, brand trust directly affects customer satisfaction, while customer satisfaction directly affects brand loyalty. In addition, brand trust directly affects brand loyalty and, indirectly, brand trust affects brand loyalty with customer satisfaction as a mediating factor.