Improving Satisfaction and Loyalty of Online Shop Customer Based on E-Commerce Innovation and E-Service Quality
The purpose of this study is to develop new knowledge related to innovation in e-commerce, which we call e-commerce innovation, and how its impact on customer satisfaction and loyalty, together with e-service quality, in the context of an online shop in Indonesia. Several measurement items of e-commerce innovation were adopted and modified from the existing literature. To answer how the impact on customer satisfaction and loyalty, then used partial least squares structural equation modeling to analyze data from 400 respondents. Empirical test results found that e-commerce innovation and e-service quality can each increase customer satisfaction and loyalty. It is also known that in the context of online shop customers in Indonesia, its easier to create customer satisfaction than customer loyalty.
Akbar, M.M., and N. Parvez. 2009. Impact of Service Quality, Trust, and Customer Satisfaction on Customers Loyalty. ABAC Journal 29(1): 24-38.
Amara, N., and R. Landry. 2005. Sources of information as determinants of novelty of inno- vation in manufacturing firms: Evidence from the 1999 Statistics Canada innovation survey. Technovation 25(3) : 245-259.
Anderson, J.C. and D.W. Gerbing. 1988. Structural Equation Modeling In Practice: A Review And Recommended Two-Step Approach. Psychological Bulletin 103(3): 411-23.
Anderson, R.E., and S.S. Srinivasan. 2003. E-satisfaction and e-loyalty: A contingency frame- work. Psychology and Marketing 20: 123–138.
Andreassen, T.W., and B. Lindestad. 1998. Customer loyalty and complex services: The impact of corporate image on quality, customer satisfaction and loyalty for customers with vary- ing degrees of service expertise. International Journal of Service Industry Management 9(1): 7-23.
Asnawi, N., B.M. Sukoco., M.A. Fanani. 2020. The role of service quality within Indonesian cus- tomers satisfaction and loyalty and its impact on Islamic banks. Journal of Islamic Marketing 11(1): 192-212.
Asubonteng, P., K.J. McCleary, and J.E. Swan. 1996. SERVQUAL Revisited: A Critical Review of Service Quality. The Journal of Services Marketing 10(6): 62-81.
Bayraktar, E., E. Tatoglu, A. Turkyilmaz, D. Delen, and S. Zaim. 2012. Measuring the efficiency of customer satisfaction and loyalty for mobile phone brands with DEA. Expert Systems with Applications 39: 99–106.
Bei, L.T., and Y.C. Chiao. 2001. An Integrated Model for the Effects of Perceived Product, Perceived Service Quality, and Perceived Price Fairness on Consumer Satisfaction and Loyalty. Journal of Consumer Research 14: 125-140.
Bersali, M.N., and C. Guermat. 2014. Loyalty and Innovation: Evidence From Algerian Mobile Service Providers. International Journal of Technology Management & Sustainable Development 13(1): 73-96.
Bodet, G. 2008. Customer satisfaction and loyalty in service: Two concepts, four constructs, several relationships. Journal of Retailing and Consumer Services 15: 156–162.
Brusch, I., B. Schwarz, and R. Schmitt. 2019. David versus Goliath - service quality factors for niche providers in online retailing. J. Retail. Consum. Serv. 50: 266-276.
Bryman, A., and E. Bell. 2012. Business research methods. Oxford University Press, New York. Carlson, J., and A. O'Cass. 2010. Exploring the relationships between e-service quality, satis- faction, attitudes and behaviours in content-driven e-service web sites. Journal of Services Marketing 24(2): 112-127.
Chang, H.H., Y. H. Wang, and W.Y. Yang. 2009. The impact of eservice quality, customer sat- isfaction and loyalty on e-marketing: Moderating effect of perceived value. Total Quality Management 20(4): 423-443.
Chang, H.H., and H.W. Wang. 2007. The Relationships Among E-Service Quality, Value, Satis- faction and Loyalty in Online Shopping. E-European Advances in Consumer Research Volume 8, eds. Stefania Borghini, Mary Ann McGrath, and Cele Otnes, Duluth, MN : Association for Consumer Research: 10-14.
Chin, W. W. 1998. The partial least squares approach for structural equation modeling. Pp. 295- 336 in Macoulides, G. A. , ed. Modern methods for business research. Mahwah, NJ: Lawrence Erlbaum Associates.
Chinomona, R., G. Masinge, and M. Sandada. 2014. The Influence of E-Service Quality on Cus- tomer Perceived Value, Customer Satisfaction and Loyalty in South Africa. Mediterranean Journal of Social Sciences 5(9): 331-341.
Chiou, J., and L. Pan. 2009. Antecedents of Internet Retailing Loyalty: Differences Between Heavy Versus Light Shoppers. J Bus Psychol 24: 327–339.
Cohen, J. 1988. Statistical power analysis for the behavioral sciences. Mahwah, NJ: Lawrence Erlbaum.
Cowart, K. O., G.L Fox, and A.E. Wilson. 2008. A structural look at consumer innovativeness and self-congruence in new product purchases. Psychology and Marketing 25: 1111–1130.
Cronin, J.J.Jr., M.K. Brady, and T. M. Hult. 2000. Assessing the effects of quality, value, customer satisfaction on consumer behavioral intentions in service environment. Journal of Retailing 76(2): 193–216.
Dachyar, M., and L. Hananto. 2014. Innovation And Quality Service Factors To Customer Loy- alty in Indonesia Telecommunication Company by Using Structural Equation Modeling Method. Proceedings Of The Annual International Conference On Management And Technology In Knowledge, Service, Tourism & Hospitality 2013 (Serve 2013), Jakarta, Indonesia, December 14–15, 2013, pp. 41-44.
Danaher, P.J., I.W. Wilson, and R.A. Davis. 2003. A Comparison of Online and Offline Consum- er Brand Loyalty. Marketing Science 22(4): 461-476.
Day, G. S. 1969. A two-dimensional concept of brand loyalty. Journal of Advertising Research 9: 29–35.
Dean, A. M. 2002. Service quality in call centres: implications for customer loyalty. Managing Service Quality: An International Journal 12(6): 414–423.
Degeratu, A.M., A. Rangaswamy, and J. Wu. 2000. Consumer choice behavior in online and traditional supermarkets: The effects of brand name, price, and other search attributes. Intern. J. of Research in Marketing 17: 55–78.
Deng, Z., Y. Lu, K.K. Wei, and J. Zhang. 2010. Understanding customer satisfaction and loyalty: An empirical study of mobile instant messages in China. International Journal of Information Management 30: 289–300.
Devaraj, S., K.F. Matta, and E. Conlon. 2011. Product and service quality: The antecedents of customer loyalty in the automotive industry. Production and Operations Management 10(4): 424-439.
Diaw, B., and G. Asare. 2018. Effect of innovation on customer satisfaction and customer re- tention in the telecommunication industry in ghana: customers’ perspectives. European Journal of Research and Reflection in Management Sciences 6(4): 15-26.
Dijkstra, T.K., and J. Henseler. 2015. Consistent paritial least squares path modeling. MIS Quar- terly 39(2): 297–316.
Etikan, I., S.A. Musa, and R.S. Alkassim. 2016. Comparison of Convenience Sampling and Pur- posive Sampling. American Journal of Theoretical and Applied Statistics 5(1): 1-4.
Feick, L., and J. Lee. 2001. The impact of switching cost on the customer satisfaction-loyalty link; mobile phone service in France. Journal of Service Marketing 15 (1): 35-48.
Fornell, C., and D. Larcker. 1981. Evaluating structural equation models with unobservable vari- ables and measurement error. J. Mark. Res. 18: 35–90.
Ganiyu, R.A. 2016. Perceived Service Quality and Customer Loyalty: The Mediating Effect of Passenger Satisfaction in the Nigerian Airline Industry. International Journal of Management and Economics 52: 94–117.
Ganiyu, R.A., I.I. Uche, and A.O. Elizabeth. 2012. Is Customer Satisfaction an Indicator of Cus-
tomer Loyalty?. Australian Journal of Business and Management Research 2(7): 14-20.
Garson, G.D. 2016. Partial Least Squares (PLS-SEM): 2016 Edition. Statistical Associates Pub- lishing, Asheboro.
Gefen, D. 2002. Customer Loyalty in E-Commerce. Journal of the Association for Information Systems 3: 27-51.
Gefen, D., E. Karahanna., and D.W. Straub. 2003. Trust and TAM in on line shopping: an inte- grated model. MIS Q. 27: 51–90.
Gocłowska, S., M. Piątkowska, and M. Lenartowicz. 2019. Customer satisfaction and its mea- surement in fitness clubs of Warsaw. Economics and Sociology 12(2): 205-218.
Griffin, J. 2010. Customer Loyalty How To Earn it, How Keep It I. Kentucky: McGraw Hill.
Gummerus, J., V. Liljander, M. Pura, and A.V. Riel. 2004. Customer loyalty to content-based Web sites: the case of an online health-care service. Journal of Services Marketing 18(3): 175-186. Gupta, S., and V. Zeithaml. 2006. Customer Metrics and Their Impact on Financial Performance. Marketing Science 25(6): 718–739.
Ha, Y.W., and M.C. Park. 2013. Antecedents of Customer Satisfaction and Customer Loyalty for Emerging Devices in the Initial Market of Korea: An Equity Framework. Psychology and Marketing 30(8): 676–689.
Hair, J.F., G.T.M. Hult, C.M. Ringle, and M. Sarstedt. 2014. A primer on partial least squares structural equation modeling (PLSSEM). Thousand Oaks, CA: Sage Publications.
Hair, J. F., J.J. Risher, M. Sarstedt, and C.M. Ringle. 2018. When to use and how to report the results of PLS-SEM. European Business Review 31(1): 2-24.
Hallowell, R. 1996. The relationships of customer satisfaction, customer loyalty, and profitabili- ty: an empirical study. International Journal of Service Industry Management 7(4): 27-42.
Hamid, M.R.A., W. Sami, and M.H.M. Sidek. 2017. Discriminant Validity Assessment: Use of Fornell & Larcker criterion versus HTMT Criterion. IOP Conf. Series: Journal of Physics: Conf. Series 890: 012163.
Han, J.H., and H.M. Kim. 2019. The role of information technology use for increasing con- sumer informedness in cross-border electronic commerce: An empirical study. Electronic Commerce Research and Applications 34: 1-16.
Henseler, J., C. M. Ringle, and M. Sarstedt. 2015. A new criterion for assessing discriminant va- lidity in variance-based structural equation modeling. J. of the Acad. Mark. Sci. (2015) 43: 115–135.
Herington, C., and S. Weaven. 2009. E-retailing by banks: e-service quality and its importance to customer satisfaction. European Journal of Marketing 43(9/10): 1220-1231.
Hoare, R.J., and Butcher, K. 2008. Do Chinese cultural values affect customer satisfaction/loyalty? International Journal of Contemporary Hospitality Management 20(2): 156–171.
Höck, M., and C.M.Ringle. 2006. Strategic networks in the software industry: An empirical anal- ysis of the value continuum. IFSAM VIIIth World Congress, Berlin 2006.
Hong, S.C., and Y.J.J. Goo. 2004. A causal model of customer loyalty in professional service firms: an empirical study. International Journal of Management 21(4): 531-540.
Hox, J., and T. Bechger. 1999. An Introduction to Structural Equation Modeling. Family Science Review 11.
Jacoby, J., and D. B. Kyner. 1973. Brand loyalty vs. Repeat purchasing behavior. Journal of Mar- keting Research 10: 1–9.
Jimenez, D.J., and R.S. Valle. 2011. Innovation, organizational learning, and performance. Journal of Business Research 64: 408–417.
Jones, T.O., and W.E. Sasser. 1995. Why satisfied customers defect. Harvard Business Review 73(6): 88-99.
Kajanus, Miika., M. Heinonen., T. Eskelinen, and J. Pellikka. 2011. Challenges in Commercial- isation Processess of Product Innovation among SMEs. Conference: EBRF At: Aalto University, Helsinki.
Kandampully, J., and D. Suhartanto. 2003. The Role of Customer Satisfaction and Image in Gaining Customer Loyalty in the Hotel Industry. Journal of Hospitality & Leisure Marketing 10(1-2): 3-25.
Karabulut, A.T. 2015. Effects of Innovation Types on Performance of Manufacturing Firms in Turkey. Procedia - Social and Behavioral Sciences 195: 1355 – 1364.
Karabulut, A.T. 2015. Effects of Innovation Types on Performance of Manufacturing Firms in Turkey. Procedia - Social and Behavioral Sciences 195: 1355 – 1364.
Kasiri, L.A., K.T.G. Cheng, M. Sambasivan, S.M. Sidin. 2017. Integration of standardization and customization: Impact on service quality, customer satisfaction, and loyalty. Journal of Retailing and Consumer Services 35: 91–97.
Katawetawaraks, C., and C.L. Wang. 2011. Online Shopper Behavior: Influences of Online Shopping Decision. Asian Journal of Business Research 1(2): 66-74.
Kazmacı, S., and A. Ekiyor. 2015. The impact of innovative service attempts on Customer loyal- ty in health and beauty centers. International Journal of Economics, Commerce and Management 3(4): 1-14.
Khatibi, A.A., H. Ismail, and V. Thyagarajan. 2002. What drives customer loyalty: an analysis from the telecommunications industry. Journal of Targeting, Measurement & Analysis for Marketing 11 (1): 34–43.
Kim, M., M. Park, and D. Jeong. 2004. The effects of customer satisfaction and switching barrier on customer loyalty in Korean mobile telecommunication services. Telecommunications Policy 28: 145–159.
Kim, M.K., S.F. Wong, Y. Chang, and J.H. Park. 2016. Determinants of customer loyalty in the Korean smartphone market: Moderating effects of usage characteristics. Telematics and Informatics 33(4): 936–949.
Kiumarsi, S., S.M. Isa, K. Jayaraman, A. Amran, A., and S. Hashemi. 2020. The effect of service innovation on service loyalty in post offices. International Journal of Business Innovation and Research 21(1): 108-127.
Kristensen, K., A. Martensen, and L. Gronholdt. 2000. Customer satisfaction measurement at Post Denmark: Results of application of the European Customer Satisfaction Index Methodology. Total Quality Management 11(7): 1007–1015.
Kurniawan, B., N. Nirwanto, and A. Firdiansjah. 2019. The Effect Of Service Innovation On Customer Satisfaction Indihome Internet Provider In Central Java Through Corporate Reputation As Variable Intervening. International Journal Of Scientific & Technology Research Volume 8(10): 144-151.
Ladhari, R. 2008. Alternative measures of service quality: a review. Managing Service Quality: An International Journal 18(1): 65 – 86.
Lan, P., and H.H Du. 2002. Challenges ahead E-innovation. Technovation 22 (2002): 761–767. Lee, G.G., and H.F. Lin. 2005. Customer perceptions of e-service quality in online shopping. International Journal of Retail & Distribution Management 33(2): 161-176.
Lee, J.W. 2011. Critical Factors Promoting Customer Loyalty To Smartphone And Mobile Com- munications Service Providers. Academy of Marketing Studies Journal 15(Special Issue, 1): 59-69.
Leelakulthanit, O., B. Hongcharu. 2011. Factor That Impact Customer Satisfaction: Evidence From The Thailand Mobile Cellular Network Industry. International Journal of Management and Marketing Research 4(2): 67–77.
Lewis, B. R., and M. Soureli. 2006. The antecedents of consumer loyalty in retail banking. Journal of Consumer Behaviour 5(1): 15–31.
Manu, F.A., and V. Sriram. 1996. Innovation, Marketing Strategy Environment and Performance. Journal of Business Research 35: 79-91.
Nanda, N., S.J. Kuruvilla, and B.V.R. Murty. 2013. Role of Service Innovation in Customer Sat- isfaction and Customer Loyalty: A Study on Organized Retail in India. IJBIT 6(2): 53-63.
Narayandas, N. 1996. The link between customer satisfaction and customer loyalty: an empirical investigation. Working Paper, No. 97-017, Harvard Business School, Boston, MA.
Nemati, A.R., K. Khan, and M. Iftikhar. 2010. Impact of Innovation on Customer Satisfaction and Brand Loyalty, A Study of Mobile Phones users in Pakistan. European Journal of Social Sciences 16(2): 299-306.
O’Neill, M., C. Wright, and F. Fitz. 2001. Quality evaluation in on-line service environments: an application of the importance–performance measurement technique. Managing Service Quality 11 (6): 402–417.
OECD, and Eurostat. 2005. Olso Manual-Third Edition: Guidelines for Collecting and Interpreting Innovation Data. Paris.
Ogba, I., and Z. Tan. 2009. Exploring the impact of brand image on customer loyalty and com- mitment in China. Journal of Technology Management in China 4(2): 132–144.
Osman, Z., and I. Sentosa. 2013. Mediating Effect of Customer Satisfaction on Service Quality and Customer Loyalty Relationship in Malaysian Rural Tourism. International Journal of Economics Business and Management Studies 2(1): 25-37.
Pan, Y., S. Sheng, and F. Xie. 2012. Antecedents of customer loyalty: An empirical synthesis and reexamination. Journal of Retailing and Consumer Services 19: 150–158.
Parasuraman, A., V.A. Zeithaml, and A. Malhotra. 2005. E-S-Qual: A Multiple-Item Scale for Assessing Electronic Service Quality. Journal of Service Research 7(3): 213-233.
Parasuraman, A., V.A. Zeithaml, and L.L. Berry. 1988. SERVQUAL: a multi-item scale for mea- suring consumer perceptions of the service quality. Journal of Retailing 64(1): 12-40.
Peeler, G. H. 1996. Selling in the quality era. Blackwell Business, USA. Peterson, R.A. 1997. Electronic marketing and the consumer. Thousand Oaks: Sage.
Popa, I. L., G. Preda, and M. Boldea. 2010. Theoretical Approach Of The Concept Of Innovation, Description: Managerial Challenges of the Contemporary Society. Faculty of Economics and Busi- ness Administration, Babes-Bolyai University.
Rajapathirana, R.P.J., and Y. Hui. 2018. Relationship between innovation capability, innovation type, and firm performance. Journal of Innovation & Knowledge 3: 44–55.
Ranjbarian, B., S. Fathi, and Z. Rezaei. 2002. Factors Influencing on Customers’ E-Satisfaction: A case Study from Iran. Interdisciplinary Journal of Contemporary Research In Business 3(9): 1496-1511.
Riel, A.V., J. Semeijn, and W. Janssen. 2003. E-service quality expectations: A case study. Total Quality Management & Business Excellence 14(4): 437-450.
Rita, P., T. Oliveira., and A. Farisa. 2019. The impact of e-service quality and customer satisfac- tion on customer behavior in online shopping. Heliyon 5: 1-14.
Rizan, M., I. Febrilia, A. Wibowo, and R.D.R. Pratiwi. 2020. Antecedents of Customer Loyalty: Study from the Indonesia’s Largest E-commerce. The Journal of Asian Finance, Economics and Business 7(10): 283–293.
Roscoe, J. T. 1975. Fundamental research statistics for the behavioural sciences (2nd ed.). New York: Holt Rinehart & Winston.
Rust, R.T., A.J. Zahorik, and T.L. Keiningham. 1995. Return on quality (ROQ): Making service quality financially accountable. Journal of Marketing 59(2) : 58-70.
Santos, J. 2003. E-service quality: a model of virtual service quality dimensions. Managing Service Quality 13(3): 233 – 246.
Santouridis, I., and P. Trivellas. 2009. Investigating the mediation effect of satisfaction on the service quality and customer loyalty link: Empirical evidence from Greek customers of internet shops. Proceedings of the 2009 IEEE International Conference on Industrial Engineering and Engineering Management: 2227- 2231.
Santouridis, I., and P. Trivellas. 2010. Investigating the impact of service quality and customer satisfaction on customer loyalty in mobile telephony in Greece. The TQM Journal 22(3): 330-343.
Saunders, M.N.K., P. Lewis, and A. Thornhill. 2012. Research Methods for Business Students, sixth ed. Pearson Education Limited, Harlow.
Schumpeter, J.A. 1934. The Theory of Economic Development. Harvard University Press, Cambridge. Sheng, T., and C. Liu. 2010. An empirical study on the effect of e-service quality on online customer satisfaction and loyalty. Nankai Business Review International 1(3): 273-283.
Sheth, J.N., and R.S. Sisodia. 1999. Revisiting marketing’s lawlike generalizations. Journal of the Academy of Marketing Science 17(1): 71-87.
Siddiqui, K. 2013. Heuristics for Sample Size Determination in Multivariate Statistical Tech niques. World Applied Sciences Journal 27 (2): 285-287.
Singh, H. 2006. The Importance of Customer Satisfaction in Relation to Customer Loyalty and Retention. UCTI Working Paper, WP-06-06.
Söderlund, M. 2006. Measuring customer loyalty with multi-item scales. International Journal of Service Industry Management 17(1): 76–98.
Srinivasan, S.S., R. Anderson, and K. Ponnavolu. 2002. Customer loyalty in e-commerce: an ex- ploration of its antecedents and consequences. Journal of Retailing 78: 41–50.
Stoel, L., V. Wickliffe, and K.H. Lee. 2004. Attribute beliefs and spending as antecedents to shopping value. Journal of Business Research 57: 1067–1073.
Storbacka, K., T. Strandvik, and C. Grönroos. 1994. Managing Customer Relationships for Prof- it: The Dynamics of Relationship Quality. International Journal of Service Industry Manage- ment: 21- 38.
Than, C. R., and E. Grandon. 2002. An exploration examination of factors affecting online sales. Journal of Computer Information Systems 42(3): 87–93.
Toufaily, E., L. Ricard, and J. Perrien. 2013. Customer loyalty to a commercial website: Descrip- tive meta-analysis of the empirical literature and proposal of an integrative model. Journal of Business Research 66(9): 1436–1447.
Udo, G.J., K.K. Bagchi, and P.J. Kirs. 2010. An assessment of customers’ e-service quality percep- tion, satisfaction and intention. International Journal of Information Management 30: 481–492.
Victorino, L., R. Verma, G. Plaschka, and C. Dev. 2005. Service innovation and customer choices in the hospitality industry. Managing Service Quality: An International Journal 15(6): 555-576.
Vinita, K.C.S., and D.P.S. Sharma. 2015. Service quality, service convenience, price and fairness, customer loyalty, and the mediating role of customer satisfaction. International Journal of Bank Marketing 33(4), 1-27.
Vun, A. C., A. Harun, J. Lily, and C.A. Lasuin. 2013. Service Quality and Customer Loyalty: The Mediating Role of Customer Satisfaction among Professionals. International Journal of On- line Marketing (IJOM) 3(2): 1-19.
Wang, C.Y. 2010. Service Quality, Perceived Value, Corporate Image, and Customer Loyalty in the Context of Varying Levels of Switching Costs. Psychology & Marketing 27(3): 252–262.
Wang, Q., X. Zhao, and C. Voss. 2016.Customer orientation and innovation: A comparative study of manufacturing and service firms. International Journal of Production Economics 171(2): 221-230.
Wolfinbarger, M., and M.G. Gilly. 2003. eTailQ: dimensionalizing, measuring and predicting detail quality. Journal of Retailing 79(3): 183-98.
Yang, Z., S. Cai, Z. Zhou, and N. Zhou. 2005. Development and validation of an instrument to measure user perceived service quality of information presenting Web portals. Information & Management 42(4): 575–589.
Yap, B.W., T. Ramayah, and W.N.W. Shahidan. 2012. Satisfaction and trust on customer loyalty: a PLS approach. Business Strategy Series 13(4): 154-167.
Yeh, Y.P. 2015. Corporate social responsibility and service innovation on customer loyalty: An empirical investigation in wealth management services. International Journal of Bank Mar- keting 33(6): 823-839.
Yieh, K., Y. Chiao, and Y. Chiu. 2007. Understanding the Antecedents to Customer Loyalty by Applying Structural Equation Modeling, Total Quality Management & Business Excellence 18(3): 267-284.
Yüksel, A., and M. Rimmington. 1998. Customer-Satisfaction Measurement. Cornell Hotel and Restaurant Administration Quarterly 39(6): 60–70.
Yun, Z.S., and L.K. Good. 2007. Developing customer loyalty from e-tail store image attributes. Managing Service Quality: An International Journal 17(1): 4 – 22.
Zeithaml, V.A., A. Parasuraman, and A. Malhotra. 2001. A conceptual framework for under- standing e-service quality: Implication for future research and managerial practice. MSI Working Paper Series, No. 00-115.
Zeithaml, V.A., L.L. Berry, and A. Parasuraman. 1996. The behavioral consequences of service quality. Journal of Marketing 60(2): 31-46
- There are currently no refbacks.
Copyright (c) 2022 Gadjah Mada International Journal of Business
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.