American Journal of Economic and

Management Business

e-ISSN: 2835-5199

Vol. 2 No. 2 February 2023

LOYALTY OF E-COMMERCE USERS IN INDONESIA DURING

THE COVID 19 PANDEMIC

Roky Apriansyah, Hermanto, Fitria Ningsih, Abdul Hairudin, Said Afriaris

Sekolah Tinggi Ilmu Ekonomi Indragiri Rengat, Indonesia

Email: [email protected], [email protected],

[email protected], [email protected],

[email protected]

Abstract

The rapid development of technology has penetrated into the business world, the

implementation of this technology allows one or more people to transact electronically.

This electronic commerce also creates business competition so that business actors

continue to strive for various things so that consumers are loyal to the e-commerce they

use. This study aims to determine the effect of e-satisfaction and e-service quality on e-

loyalty of e-commerce users in Indonesia. This study used quantitative research

methods, while data collection techniques were carried out using literature studies and

questionnaires which were analyzed using the help of the SEM-PLS program. The

results of the study show that E-Satisfaction and E-Service Quality, affect E-Loyalty.

Keywords: E-Satisfaction, E-Service Quality, E-Loyalty, E-Commerce.

This article is licensed under a Creative Commons Attribution-ShareAlike 4.0

International

INTRODUCTION

The pandemic caused a sharp slowdown in economic activity for which the

economy was largely unprepared. However, one impact in the overall reduction in

activity, which has significance both during the pandemic and for the subsequent

recovery, is the uptake in e-commerce resulting from the need for many activities to

move online. Companies engaged in e-commerce in Indonesia recorded an increase in

sales volume during this pandemic. This is because people avoid shopping offline and

there is a physical distancing policy as an effort to prevent the spread of the corona

virus. During this pandemic, e-commerce sales increased by 26% with the addition of

51% new customers. In line with this, digital payments have also increased. More than

70% of Kredivo's transactions come from e-commerce (mediaindonesia.com,

September 2020). In addition, economic activity in e-commerce has increased by

40.6%. Based on the Big Data report compiled by the Central Statistics Agency (BPS),

online sales have also increased dramatically during this pandemic (m.liputan6.com,

July 2020).

The growth of e-commerce users in Indonesia has been quite large in recent years

and is expected to continue to increase in the next few years, by 2020 e-commerce users

Roky Apriansyah, Hermanto, Fitria Ningsih, Abdul Hairudin, Said Afriaris

in Indonesia will reach 180 million users. And the highest e-commerce revenue in

Indonesia is fashion. With the increase in e-commerce users in Indonesia, this proves

the increasing interest in buying consumers to shop on e-commerce.

According to (Cyr et al., 2008) electronic loyalty is a consumer desire to revisit a

website and think about buying from that website in the future. For (Oliver, 1999),

service loyalty can be divided into 4 formats namely; cognitive loyalty, affective

loyalty, conative loyalty, and action loyalty. Cognitive loyalty is loyalty that comes

from trust in the brand which is the initial level of loyalty. At the cognitive fidelity

level, the brand data obtained by consumers conveys that they are more popular than

existing substitutes. Cognitive fidelity focuses on the perceived capabilities of the

product (Oliver, 1999). The second level of loyalty is affective loyalty, where loyalty is

an accumulation of happiness for using a particular brand. Affective loyalty aims at

liking the brand (Oliver, 1999). Conative loyalty is loyalty that exists because it is

influenced by clichés in a positive way towards purchasing a brand.

In conventional retail, increased satisfaction measures the results of people's

feelings towards the store's characteristics, and its image is the result of customer

evaluations and approaches (Rangkuti, 2013). Therefore, satisfaction with a website is

successful if its attributes exceed the level of satisfaction; Customer satisfaction is

obtained when the data system matches the data presented (Teerling & Huizingh, 2004).

Satisfaction influences the customer's desire to repurchase (Harris & Goode,

2004). For (E. W. Anderson & Sullivan, 1993), the intention to repurchase has an

important role in influencing the level of satisfaction (Canming & Jianjun, 2011).

E-Service Quality is basically the development of service quality that was

previously informed from conventional methods to services by electronic means using

tools such as the internet. Likewise (Santos, 2003) defines E-Service Quality as: Overall

customer evaluations and judgments of excellence e-service delivery in the virtual

marketplace. On the other hand, (Chase & Apte, 2007) stated that e-service quality is:

Services provided on the Internet network as an expansion of the expertise of a web to

facilitate shopping, purchasing and distribution activities in an efficient and efficient

manner. It can be said that e-service quality is the total assessment and evaluation of the

advantages of electronic service delivery in virtual markets.

The development of e-commerce has brought many changes to business activities

which were initially only based in the real world, then developed into virtual worlds.

The increasing number of businesses on the internet will of course result in increasingly

fierce online business competition, this requires online stores to pay attention to the

factors that can continue to make online stores survive, grow and develop. In this case,

many consumers still have questions about the security system, control over personal

information, product quality, payment methods, the site's ability to manage online

buying and selling and product prices. If the questions asked by consumers can be

answered by online traders, then consumer satisfaction will be achieved. There are

several e-commerce sites in Indonesia such as Tokopedia, Shoppee, Bukalapak, Lazada,

Blibli, JD ID, Bhinneka and several others. Tokopedia is the e-commerce with the

largest number of visitors, followed by shopee and Bukalapak (Jayani, 2019).

As time goes by, business competition in the e-commerce world is getting

tougher, so it is very important for e-commerce to pay more attention to its marketplace

to be even better at retaining its customers. To maintain or increase the number of

customers in a business, namely the company must be able and strive to present

customer loyalty, with a sense of loyalty a consumer will not be easily attracted to

American Journal of Economic and Management Business

Vol. 2 No. 2 February 2023

competitors (Sofiani & Sagir, 2022). Therefore, researchers are interested in conducting

research with the title "Effect of E-Satisfaction, and E-Service Quality on E-Loyalty of

E-Commerce Users in Indonesia".

RESEARCH METHODS

This research uses quantitative research methods. This type of quantitative

research is very suitable to be applied when this research aims to determine cause and

effect or relationships. What is meant here is the Influence of E-Satisfaction, and E-

Service Quality on E-Loyalty of E-Commerce Users in Indonesia.

The population in this study are all online shopping application users whose

number is infinite because they always experience additions every day. the minimum

number of samples in this study was 100 people, while in this study the researchers

obtained as many as 200 respondents. Sampling was carried out using cluster random

sampling and simple random sampling techniques. Cluster random sampling is to

determine the sample if the object to be studied is very large. The simple random

sampling is a technique of taking samples from the population randomly without regard

to the existing strata in the population. So that all members of the population have the

opportunity to be selected as samples in the study.

The primary data in this study were collected directly through questionnaires from

respondents who were e-commerce users in Indonesia. Secondary data collected in this

study includes observations, documentation, literature reviews, and other supporting

documents related to the development of e-commerce in Indonesia. Secondary data

collection in the form of various documents is carried out by examining and reviewing

various notes, reports and other documents from various sources or institutions that are

related to the problem under study, including Katadata reports, databooks and Insight

Center katadata.

RESULT AND DISCUSSION

Results

1. Reliability Test

Measuring reliability can be done using 3 (three) ways, namely:

a. Composite Reliability, if the composite reliability value between the constructs

and the indicators gives good results, which is above 0.70. where according to

Chin by (Ghozali, 2011) the results of a loading factor of 0.70 and above are

good.

b. Average Variance Extracted (AVE) value, if the AVE value is > 0.5 then the

indicators used in research are reliable, and can be used for research.

c. Cronbach alpha value, if the Cronbach alpha value is > 0.70 then the construct can

be said to have good reliability.

The results of composite reliability between constructs and their indicators can

be seen in the following table:

Table 1. Reliability Test Results

E-SAT

E-SQ

E-LOY

Composite reliab

0.896

0.849

0.885

Cronbach’s alpha

0.845

0.762

0.837

Avg. Var. Ectrac

0.684

0.586

0.606

Data Source: Output of data processing with WarpPLS, 2022

Roky Apriansyah, Hermanto, Fitria Ningsih, Abdul Hairudin, Said Afriaris

Table 1. shows the results of the reliability test for each construct can be said to

be good. This is evidenced by the AVE value of each construct, which can be used in

the analysis process to show whether there is a relationship in each construct,

because the results obtained have a value of > 0.70, from the results above all

variables have a composite reliability value of > 0. 7 means that it has a good

reliability value and can be used for further research processes. Reliability indicates

that the indicators used in real research are in accordance with the real conditions of

the research object.

2. Hypothesis testing

This section presents the results of testing the research hypothesis that was

proposed in the previous chapter. To determine whether a hypothesis is accepted or

not is by comparing the p-value with a significance level of 0.05. The decision that

there is influence is that if the p-value is <0.05, then it is said that there is a

significant influence of the (independent) predictor variable on the (bound) criterion

variable.

3. Direct Influence Analysis

The results of testing the direct effect of each research variable can be

presented as follows:

Table 2. Path Coefficients and P-Value

hypothesis

Path

Coefficient

P-Values

E-Satisfaction -> E-Loyalty

0.151

0.001

E-Service quality -> E-Loyalty

0.282

0.001

Source: processed WarpPLS data

The results of the data processing above can be seen in testing each of the

hypotheses that have been proposed, namely:

a. Hypothesis Testing 1:

H1: There is an influence between E-Satisfaction on E-Loyalty of E-Commerce

Users in Indonesia

In testing hypothesis 1, the path coefficient of 0.15 is obtained on the path

diagram and the path coefficient value in real count is 0.151 with a significant

level of p-value <0.001. The results of these calculations explain that E-

Satisfaction has a significant effect on E-Loyalty. The results of this study

indicate that E-Satisfaction has a direct and significant effect on E-Loyalty. Thus

the third hypothesis can be accepted.

b. Hypothesis Testing 2:

H2: There is an influence between E-Service Quality on E-Loyalty of E-

Commerce Users in Indonesia

In testing hypothesis 2, the path coefficient of 0.28 is obtained on the path

diagram and the path coefficient value in real count is 0.282 with a significant

level of p-value <0.001. The results of these calculations explain that E-Service

Quality has a significant effect on E- Loyalty. The results of this study indicate

that E-Service Quality has a direct and significant effect on E-Loyalty. Thus the

second hypothesis can be accepted.

Discussion

American Journal of Economic and Management Business

Vol. 2 No. 2 February 2023

1. The Influence of E-Satisfaction on E-Loyalty of E-Commerce Users in Indonesia

The results of this study indicate that E-Satisfaction has a direct and significant

effect on E-Loyalty. Thus the first hypothesis can be accepted. These results are in

line with Saiful and Sutopo's research (2017) which states that e-satisfaction has a

positive and significant effect on customer loyalty, and is reinforced by (R. E.

Anderson & Srinivasan, 2003) who state that there is a positive relationship between

e- satisfaction and e-loyalty. This means that if e-satisfaction increases, e-loyalty will

also increase, but if e-satisfaction decreases, e-loyalty will decrease.

The results of this study indicate that the higher the e-satisfaction felt by users

in using e-commerce, the higher the user's e-loyalty to continue using e-commerce in

shopping online. The e-satisfaction indicator that plays the most role is convenience,

which is indicated by the consumer's feelings of satisfaction with the ease of finding

what e-commerce needs. The average consumer finds shopping online very

convenient because consumers do not need to leave their homes or travel to find and

acquire goods online. From this, consumers will give rise to good preferences for

websites or applications.

2. The Influence of E-Service Quality on E-Loyalty of E-Commerce Users in Indonesia

The results of this study indicate that E-Service Quality has a direct and

significant effect on E-Loyalty. Thus the fifth hypothesis can be accepted. E-service

quality has been found to influence trust and to explain the emotional loyalty of

website visitors (Lynch et al., 2001). Furthermore, Fahrika et al revealed that e-

service quality which leads to customer satisfaction will affect the growth of

customer loyalty and is supported by the findings of Megasari (2019) e-service

quality has a positive and significant effect on e-loyalty. These results are consistent

with research previously conducted by (Pudjarti et al., 2019) that service quality that

causes customer satisfaction is a company's success in increasing customer loyalty

when using company products or services. This hypothesis is also supported by

previous research by (Tobagus, 2018) that e-service quality has a positive and

significant effect on e-loyalty.

CONCLUSION

Based on the research results, it can be concluded that there is an influence

between E-Satisfaction on E-Loyalty of E-Commerce Users in Indonesia and there is

also an influence between E-Service Quality on E-Loyalty of E-Commerce Users in

Indonesia. The higher the E-Satisfaction and E-Service Quality felt by users in using E-

Commerce, the higher the E-Loyalty of users to continue using E-Commerce in

shopping online. Thus, e-Satisfaction and E-Service Quality affect E-Loyalty.

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Roky Apriansyah, Hermanto, Fitria Ningsih, Abdul Hairudin, Said Afriaris (2023)

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