MULTI-BRAND LOYALTY IN THE MIDST OF E-WALLET USAGE POPULARITY AMONG MILENNIALS

• Main Author: Adiani, Widyoretno
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/62296
• Institution: Institut Teknologi Bandung

People's high interest in e-wallets has resulted in the emergence of new e-wallet companies, tightening competition between e-wallet providers. As a result, it is no surprise if a "promotion war" in the form of a direct discount, cashback, or customer loyalty point becomes one of the common strategies that become the attractiveness of this service. However, although attractive, due to there is no strong bond between the brand and the customer, price promotion-based competition is vulnerable to customer switching behavior. Furthermore, there are several boundaries to establish loyalty in the context of an e-wallet. Besides the "promotion war" strategy, most e-wallet users are Millennials, who are known for their low loyalty, which also contributes to the e-wallet loyalty issue. Field evidence even shows that there is a tendency for e-wallet users to use more than one service, making the probability of forming a single loyalty in an e-wallet is quite difficult, whereas forming multi-brand loyalty is becoming more prevalent. With the rise in popularity of e-wallets, the issue of multi-brand loyalty has emerged as a critical topic that has to be explored further. However, the prior and recent studies related to an e-wallet have not yet explored multi-brand loyalty. On the other side, the discussion of multi-brand loyalty has not been done in e-wallet and only discussed in certain sectors such as FMCG, Tourism, or Mobile phone service. Prior studies on Multi-Brand Loyalty do bring new insight into this issue; nevertheless, the findings of previous studies also underline that each Multi-Brand Loyalty research finding will be different, depending on the sector discussed. Based on this research gap and the emerging issue that happens nowadays, this research wants to reveal whether Millennials e-wallet users have multi-brand loyalty toward e-wallet services they use and the most influential factor that encourage multi-brand usage. By adapting the S-O-R theory, this research considers several external factors that will become the user stimuli, namely Financial Benefit, Social Pressure, Brand Advocacy from Other Users, and Network Externalities, which will influence user attitude and commitment. In the end, the research model wants to examine final user behavior in multi-brand loyalty. This research obtained the data through a survey involving 467 respondents then analyzed the data using PLS-SEM. After the data obtained was processed, it was found that all of the stimuli have a positive relationship with the user attitude and commitment. In detail, social pressure has a positive relationship with affective commitment, financial benefit, and network externalities have a positive relationship with calculative commitment, whereas brand advocacy from other users has a positive relationship both with user calculative and affective commitment. However, in the user behavior response in the form of multi-brand loyal, this research reveals how calculative commitment becomes the only one users' internal state with a positive relationship. In contrast, the affective commitment and user attitude did not have a positive relationship with multi-brand loyalty. This research contributes theoretically and practically through the research process and findings. Theoretically, by enhancing the understanding of multi-brand loyalty, Millennial's behavior, especially in e-wallet. Whereas for managerial contribution, this research help e-wallet service firms make sustainable business plans to win or survive the fierce e-wallet services competition by understanding multi-brand market behavior in this sector industry