CUSTOMER LOYALTY OF MOBILE COMMERCE (M-COMMERCE) USERS APPLICATION IN THE MILLENNIAL GENERATION

• Main Author: Hardyanti, Afina
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/63611
• Institution: Institut Teknologi Bandung

Mobile commerce or m-commerce is an extension to e-commerce where trade in products and services is carried out using mobile devices. The results of a study by CupoNation show that Indonesians prefer to shop online via mobile devices compared to desktops. The results of a study from Kredivo and Katadata Insight Center (KIC) related to the behavior of Indonesian e-commerce consumers. Millennials are one of the highest contributors to e-commerce transactions. Millennials are less loyal customers than other generations. Understanding the millennial character can be used to understand the current product trends they like so that they can formulate the right marketing strategy to target the millennial segment. In this competitive market, the ability to build customer loyalty is seen as a key factor in winning market share. This study aims to develop a model that can explain the customer loyalty of m-commerce application users in the millennial generation. The proposed model uses two main components of TAM (Technology Acceptance Model), namely perceived usefulness and perceived ease of use and the addition of several constructs to represent individual characteristics, such as personal innovation, compatibility, and subjective norms as well as the addition of constructs related to the design of the m-commerce application interface, namely design aesthetic and the perceived enjoyment that represents the hedonic component to determine the difference in the effect of perceived benefits and perceived enjoyment on millennial generation customer loyalty for m-commerce applications. Respondents in this study are millennials who were born in 1981-1996. The data used in the study were collected through questionnaires distributed online. Three hundred and eighteen users data of m-commerce application services were processed using the PLS-SEM method. The results showed that compatibility, personal innovation and subjective norms proved to have an influence on perceived enjoyment. Design aesthetics have an influence on perceived usefulness, ease of use, and perceived enjoyment for m-commerce applications in the millennial generation. Personal innovation has not been shown to have an effect on perceived usefulness. Perceived usefulness, perceived ease of use and perceived enjoyment influence millennial customer loyalty with perceived enjoyment as the strongest predictor.