Journal Screenshot

International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

The Effect of Trust and Satisfaction on Customer Loyalty in Online Shop: Case of C2C E-Commerce in Indonesia

Emi Rahayu, Fakhri Fauzan, Hendrianto Wijaya, Willy Gunadi

http://dx.doi.org/10.6007/IJARBSS/v10-i8/7619

Open access

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.

Anderson, R. E., & Srinivasan, S. S. (2003). E?satisfaction and e?loyalty: A contingency framework. Psychology & marketing, 20(2), 123-138.
Ba, S., & Pavlou, P. A. (2002). Evidence of the effect of trust building technology in electronic markets: Price premiums and buyer behavior. MIS quarterly, 243-268.
Barnes, S., & Vidgen, R. (2000). WebQual: an exploration of website quality. ECIS 2000 proceedings, 74.
Bojang, I. (2017). Determinants oOf Trust in B2c E-Commerce and their Relationship with Consumer Online Trust: A Case of Ekaterinburg, Russian Federation. The Journal of Internet Banking and Commerce, 1-59.
Bove, L. L., & Johnson, L. W. (2006). Customer loyalty to one service worker: should it be discouraged?. International Journal of Research in Marketing, 23(1), 79-91.
Castañeda, J. A., & Montoro, F. J. (2007). The effect of Internet general privacy concern on customer behavior. Electronic Commerce Research, 7(2), 117-141.
Chao, P. (2008). Exploring the nature of the relationships between service quality and customer loyalty: an attribute-level analysis. The service industries journal, 28(1), 95-116.
Chatterje, P. (2001). Online Reviews: Do Consumers Use Them? Advance In Consumer Research, 129-133.
Chaudhuri, A., & Holbrook, M. B. (2001). The chain of effects from brand trust and brand affect to brand performance: the role of brand loyalty. Journal of marketing, 65(2), 81-93.
Coulter, K. S., & Coulter, R. A. (2002). Determinants of trust in a service provider: the moderating role of length of relationship. Journal of services marketing.
Dick, A. S., & Basu, K. (1994). Customer loyalty: toward an integrated conceptual framework. Journal of the academy of marketing science, 22(2), 99-113.
Eid, M. I. (2011). Determinants of e-commerce customer satisfaction, trust, and loyalty in Saudi Arabia. Journal of electronic commerce research, 12(1), 78.
Ellinger, A. E., Daugherty, P. J., & Plair, Q. J. (1999). Customer satisfaction and loyalty in supply chain: the role of communication. Transportation Research Part E: Logistics and Transportation Review, 35(2), 121-134.
Fisher, A. (2001). Winning the battle for customers. Journal of Financial Services Marketing, 6(1), 77-83.
Flanagin, A. J., & Metzger, M. J. (2000). Perceptions of Internet information credibility. Journalism & Mass Communication Quarterly, 77(3), 515-540.
Flint, D. J., Blocker, C. P., & Boutin, J. P. J. (2011). Customer value anticipation, customer satisfaction and loyalty: An empirical examination. Industrial marketing management, 40(2), 219-230.
Floh, A., & Treiblmaier, H. (2006). What keeps the e-banking customer loyal? A multigroup analysis of the moderating role of consumer characteristics on e-loyalty in the financial service industry. A Multigroup Analysis of the Moderating Role of Consumer Characteristics on E-Loyalty in the Financial Service Industry.(March 26, 2006).
Forman, C., Ghose, A., & Wiesenfeld, B. (2008). Examining the relationship between reviews and sales: The role of reviewer identity disclosure in electronic markets. Information systems research, 19(3), 291-313.
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of marketing research, 18(1), 39-50.
Ganesan, S. (1994). Determinants of long-term orientation in buyer-seller relationships. Journal of marketing, 58(2), 1-19.
Gretzel, U., Fesenmair, D., Lee, Y., & Tussyaidiah, I. (2011). Narrating Travel Experience: The Role of Newe Media in R. Sharpley & P. Stone (Eds). Tourist Experience: Contemporary Perspectives, 171-182.
Gummerus, J., Liljander, V., Pura, M., & Van Riel, A. (2004). Customer loyalty to content?based Web sites: the case of an online health?care service. Journal of services Marketing.
Gupta, P., & Harris, J. (2010). How e-WOM recommendations influence product consideration and quality of choice: A motivation to process information perspective. Journal of Business Research, 63(9-10), 1041-1049.
Hair, J., Anderson, R., Tatham, R., & Black, W. (1998). Multivariative Data Analysis With Readings. New York: Macmillan.
Hardy, M. (2018). Why Online Reviews Are Important for Your Business. Retrieved from https://www.businessknowhow.com/internet/reviews.htm
Hutinski, R. M. (2012). The Role of Percieved Privacy and Percieved Security in Online Market. 2012 Proceedings of the 35th International Convention MIPRO.
Iprice. (2018). Peta E-Commerce Indonesia. Retrieved from https://iprice.co.id/insights/mapofecommerce/
Jarvenpaa, S. L., Tractinsky, N., & Vitale, M. (2000). Consumer trust in an Internet store. Information technology and management, 1(1-2), 45-71.
Kim, M., & Lennon, S. (2008). The effects of visual and verbal information on attitudes and purchase intentions in internet shopping. Psychology & Marketing, 25(2), 146-178.
Kolsaker, A., & Payne, C. (2002). Engendering trust in e?commerce: a study of gender?based concerns. Marketing intelligence & planning.
Kominfo. (2018). Jumlah Pengguna Internet 2017 Meningkat, Kominfo Terus Lakukan Percepatan Pembangunan Broadband. Retrieved from
https://kominfo.go.id/index.php/content/detail/12640/siaran-pers-no-53hmkominfo022018-tentang-jumlah-pengguna-internet-2017-meningkat-kominfo-terus-lakukan-percepatan-pembangunan-broadband/0/siaran_pers
Kotler, P. (2010). Marketing Management. Prentice Hall, Inc . New York.
Koufaris, M., & Hampton-Sosa, W. (2004). The development of initial trust in an online company by new customers. Information & management, 41(3), 377-397.
Lee, J., & Shin, H. (2011). The Long Tail or The Short Tail: The Category-Specific Impact of e-WOM on Sales Distribution. Decision Support System, 466-479.
McKnight, D., Choudhury, V., & Kacmar, C. (2002). Developing and Validating Trust Measures for E-Commerce: An Integrative Typology. Information System Research, 334-359.
Mithas, S., Ramasubbu, N., Krishnan, M., & Fornell, C. (2006). Designing Web Sites for Customer Loyalty Across Business Domain: A Multilevel Analysis. Journal of Management Information System, 97-127.
MittaL, B., & Sheth, J. (2004). Customer’s Behaviour. A managerial perspective. 2nd ed. Thomson South-Western Ohio.
Mittal, V., & Kamakurav, W. (2001). Satisfaction, Repurchase Intent, and Repurchase Behavior: Investigating The Moderating Effect of Customer Characteristics. Jouornal of Marketing Research, 131-142.
Moses, S. B. (2003). Trust Managment in the Public Key Infrastructure. Retrieved from www.entrust.com/resources/download.cfm/21126/trustmodels.pdf?inline=false
Oliver, R. (1999). Whence Customer Loyalty. Journal Of Marketing, 33-44.
Park, C., & Kim, Y. (2003). Identifying Key Fators Affecting Consumer Purchase Behavior in An Online Shopping Context. International Journal of Retail & Distribution Management, 16-29.
Pavlou, P., & Fygenson, M. (2006). Understanding and Predicting Electronic Commerce Adoption: An Extension of the Theory of Planned Behavior. MIS Quarterly, 115-143.
Reicheld, F., & Sasser, W. (1990). Zero Defection: Quality Comes to Services. Harvard Business Review, 105-111.
Roy, M., Dewit, O., & Aubert, B. (2001). The Impact of Interface Usability on Trust in Web Retailers. Internet Research: Electronic Networking Application and Policy, 388-398.
Sadeh, S., Sadeh, E., Mousavi, L., & Asgari, F. (2011). The Effect of Website Quality Dimension on Customer Satisfaction in E-Retailing System. Middle-East Journal of Scientific Research, 366-369.
Seiders, K., Voss, G. D. G., & Godfrey, A. (2005). Do Satisfied Customers Buy More? Examining Moderating Influences in A Retailing Context. Journal of Marketing, 25-43.
Shoemaker, S., & Lewis, R. (1999). Customer Loyallty: The Future of Hospitality Marketing. Hospitality Management, 345-370.
Todd, B. W. (2005). A Theoretical Integration of User Satisfaction and Technology Acceptance. Information System Research, 85-102.
Vijayalakshmi, R., & Thyagrajan, V. (2016). Customer Loyalty Towards Online Retail Stores. International Journal of Advanced Scientific Research & Development, 9-15.
Yoo, K., & Gretzel, U. (2008). What Motivates Consumers To Write Online Travel Reviews? Information Technology & Tourism, 283-295.
Zaltman, G., & Moorman, C. (1988). The Importance of Personal Trust in The Use of Research. Journal of Advertising Research, 16-24.
Zhang, J. Q., Dixit, A., & Friedmann, R. (2010). Customer loyalty and lifetime value: an empirical investigation of consumer packaged goods. Journal of marketing theory and practice, 18(2), 127-140.
Zins, A. (2001). Realtives Atittudes and Commitment in Customer Loyalty Models - Some Experience in The Commercial Airline Industry. International Journal of Service Industry Management, 269-294

In-Text Citation: (Rahayu, Fauzan, Wijaya, & Gunadi, 2020)
To Cite this Article: Rahayu, E., Fauzan, F., Wijaya, H., & Gunadi, W. (2020). The Effect of Trust and Satisfaction on Customer Loyalty in Online Shop: Case of C2C E-Commerce in Indonesia. International Journal of Academic Research in Business and Socail Sciences. 10(8), 699-709.