ANALYSIS E-S-QUAL FACTORS AND ITS IMPACT ON CUSTOMER SATISFACTION AND CUSTOMER LOYALTY IN SHOPEE

• Main Author: C. D Siagian, Arnetta
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/56899
• Institution: Institut Teknologi Bandung

Changes in technology also bring changes in the business industry. Currently, the process of buying and selling transactions can be done through an online method. This online-based business activity is now producing an innovation in the form of e-commerce. This innovation can be accepted easily and quickly by the public due to the factors of technological change itself, as well as the advantages that buyers get from using e-commerce. Customers can search and compare any product with offers from various stores. This led to the saving of transportation and time costs that were perceived by customers. However, this is also a challenge for e-commerce practitioners because this convenience results in customer high purchasing power. This power is due to the high switching option by customers since they can switch their option regarding e-commerce easily by the access to information. Then this condition resulted in high competition between e-commerce, even resulting in some of ecommerce that have gone out of competition. For that, companies should do something to survive in this highly competitive environment. One thing that can be done is to make customers loyal to the company, because, compared to generating new customers, retaining existing customers costs less. Then, the company should do something to make them loyal, by making them satisfied, because Customer Satisfaction is giving a positive impact to Customer Loyalty. To make customers satisfied, companies can ensure it by providing the right E-Service Quality. E-Service Quality is important because a good customer experience with E-Service Quality has a positive impact on Customer Satisfaction. In addition, most of the mistakes of e-commerce that cause them to fail are failing to meet customer expectations regarding their services, especially E-Service Quality. Therefore, this research aims to analyze the impact of E-Service Quality on Customer Satisfaction and Customer Loyalty. To overcome this problem, this research used quantitative research by spreading the questionnaire which the respondents are those who domiciled in the top 10 cities with the highest online shopping rate in Indonesia from the range 18 - 35 years old that ever used Shopee. To analyze the data, this research used PLS-SEM through SmartPLS. The researcher used the E-S-QUAL framework by Parasuraman which consists of 4 variables: Efficiency, Fulfillment, System Availability, and Privacy. The object of this research is Shopee, since Shopee has succeeded in proving that during intense competition, they still manage to survive and compete, Shopee succeed being the best e-commerce in Indonesia. This research found that 3 out of 4 E-S-QUAL variables, which are Efficiency, Fulfillment and Privacy directly give a positive impact on customer satisfaction significantly, with Efficiency giving the biggest impact. Meanwhile System Availability only giving positive impact and giving the lowest impact out of 4 also did not follow a significant impact. Then, Customer Satisfaction positively significantly giving impact consumer loyalty. The findings from this research are expected to help Shopee to improve the quality of their services. As for other e-commerce practitioners, it becomes a lesson or benchmark to improve the quality of their services, so that they can still compete in high e-commerce competition.