Abstract
This study examines the role of electronic satisfaction mediation on the effect of electronic service quality dimensions on electronic customer loyalty. Bukalapak.com was ranked ninth of the most popular sites accessed from Indonesia. Bukalapak.com is aggressively promoting and improving the quality of its services. However,the dimensions of electronic services quality that affect the behavior of its customers are still unclear. Research focusing on the effects of the dimensions of electronic service quality mediated by electronic satisfaction is still scarce. Therefore, we offer new insights on how the latest types of interactions must be maintained. We applied Structural Equation Modelling for hypothesis testing. This study found evidence that three dimensions of electronic service quality (privacy, web design, and compensation) have been shown to influence electronic loyalty which is mediated by electronic satisfaction. This influence is positive and pure mediation. The theoretical implication of this research is the need to prioritize a human aspect to an e-marketplace context. Even though these implications need to be tested in a broader context of population, the practical implications of this research are important incentives for e-marketplace sites such as bukalapak.com, tokopedia.com, lazada.com, etc., to pay attention to human aspects of their services to gain customer satisfaction and loyalty.
Keywords: E-service quality, E-satisfaction, E-customer loyalty, Mediation, Human-computer interaction.
Received: 8 August 2019 / Revised: 13 September 2019 / Accepted: 15 October 2019/ Published: 26 November 2019
Contribution/ Originality
The main contribution of this paper is finding that the human aspects of users were the most important part of e-service quality to gain customer satisfaction and loyalty in the e-marketplace industry.
1. INTRODUCTION
1.1. Indonesia E-Commerce and Bukalapak.com
The Indonesian Internet Network Providers Association (APJII) released the results of the 2017 survey which revealed the fact that more than 143.26 million Indonesians were connected to the internet. Fifty-five percent of Indonesia's 262 million population have become netizens (APJII, 2017). The increasing number of internet users makes Indonesia ranked fifth in the world and based on World Bank data, Indonesia individual internet users constituted 40% of its population in 2018 (World Bank, 2019). For a visual reference, APJII publishes its annual report related to the number of internet users in Indonesia which is included in the table below. Bukalapak.com is one of the popular e-marketplace sites and is the only one owned by Indonesians. In 2015, Bukalapak.com was ranked first by the leading assessment site, www.alexa.com, as the most popular e-commerce site in Indonesia (Ningrum, 2015). In 2016, according to the Hachiko survey in the e-commerce category, Bukalapak.com was reportedly scored as the highest Net Promoter Score (from now on referred to as NPS). NPS is an international measurement method that describes the level of customer satisfaction and loyalty of a site. It seems that the strategy adopted by Bukalapak.com in 2015 which focused on improving the quality of human resources and marketing aggressiveness (Iskana, 2015) has paid off. The 2015 strategy and NPS score results in 2016 used the concept of Customer Relationship Management resulting in electronic satisfaction and loyalty, which was achieved by strengthening human resources and aggressive marketing. Based on our observation and interview in 2019, Bukalapak.com aggressively provided a lot of compensation for intense activity both on the site and on apps.
We estimated that the electronic services quality (from now on called eSQ) of Bukalapak.com is their main tool for achieving customer satisfaction (from now on referred to as eSat) which in turn will encourage service users to increase electronic loyalty (from now on eLoy). As stated by Bukalapak.com CEO Achmad Zaky, "Bukalapak is very grateful because it is believed to be the first choice for people when shopping online. I think with so many innovations and breakthroughs, Bukalapak can provide the best service in the midst of shifting and changing markets to the digital world." The claim that Bukalapak.com is able to provide the best service still needs to be verified from the consumer's point of view. Several studies in the context of offline business confirmed the pattern of mediating relationships between service quality, satisfaction, and loyalty. For example: in the case of KFC, satisfaction was proven to mediate the effect of service quality on loyalty (Aryani and Rosinta, 2010); in the Pizza Hut case, the effect of two dimensions of physical service quality and reliability on customer loyalty was mediated by customer satisfaction (Tjiptaningsih and Aryani, 2014); and in the case of PT. KAI, service quality influences on customer loyalty was also mediated by satisfaction (Wendha et al., 2013). However, satisfaction mediation does not occur when the perceived high switching cost are included in the model (Wibowo, 2016; Wibowo and Widikusyanto, 2017). Logically, we adopted the sequence of variations that occur in the attributes described by the customer satisfaction mediation test model to apply them to the online context.
Unfortunately, the abundance of empirical research in the context of offline business, especially in mediation tests, has not been directly proportional to research in the context of online business. We tried to solve this problem with the Bukalapak.com case and then tested the mediating effect in the dimensions to provide a more plausible explanation
2. LITERATURE REVIEWS
2.1. E-Service Quality and it’s Dimensions
While the quality of service in conventional business focuses on the human aspect, the quality of service in e-commerce (eSQ) is more focused on the website as a front-line employee of the company that directly interact to its customers. This fact evoked the topic of eSQ measurement that became a topic in the 2000's. Many scales have been developed by researchers to measure eSQ and are given different names such as ES-QUAL and E-RecS-Qual (Parasuraman et al., 2005) WebQual ™ (Loiacono et al., 2002) SITEQUAL (Yoo and Donthu, 2001) eTailQ (Wolfinbarger and Gilly, 2003). These scales developed through the researcher's point of view based on respondent responses, differ in context and emphasis. The five scales are multidimensional and are summarized as follows:
Table-1. E-Service quality scales.
| No. | Sitequal | Webqual | Etailq | E-S-Qual | E-Recs-Qual |
| (2001) | (2002) | (2003) | (2005) | (2005) | |
| 1 | Ease of use | Useful | Fulfillment/Reliability | Efficiency | Responsiveness |
| 2 | Aesthetic design | Ease of use | Website design | System availability | Compensation |
| 3 | Processing speed | Entertainment | Privacy/ Security | Fulfillment | Contact |
| 4 | Security | Complimentary relationship | Customer service | Privacy |
Table 1 shows there were five eSQ scales developed. E-S-QUAL is the most widely used for measuring the quality of the Business to Consumer site because of the E-S-QUAL steps throughout the full customer shopping experience in the online purchasing process, taking into account the pre- and post-site stages of the process. The use of E-S-QUAL instruments in measuring the quality of the Business to Consumer site (from now on B2C) indicates that the instrument is reliable in predicting how online buyers evaluate the quality of online retailers' services. Accordingly, other eSQ dimensions should be considered because, in the process of e-shoping, online shoppers want innovative and visually appealing websites, as well as well-organized user interfaces. Thus, the quality of website design is important, and it is a strong predictor of customer ratings, satisfaction, and loyalty in B2C e-commerce (Wolfinbarger and Gilly, 2003).
There are two opinions regarding trust variables. Some researchers treat trust as a different variable from eSQ. However, according to Bukhari et al. (2013) although privacy and trust may not always have the same definition, in many cases it shows similar ideas in different fields or contexts. Therefore, trust should be incorporated into the eSQ instrument to determine the quality of a website. Considering the characteristics of Bukalapak.com engaging in online retailing and looking at the advantages and disadvantages of each scale in general, the efficiency, responsiveness, compensation and ES-QUAL contacts, fulfillment, privacy and web design of e-TailQ and trust, (Bukhari et al., 2012) it is proposed to specify eSQ for online retailers such as Bukalapak.com.
2.2. E-Satisfaction Effects on E-Loyalty
In the B2C electronics market, the importance of maintaining eLoy with online buyers has been emphasized by most previous researchers to ensure profitable customer relationships. In marketing, eLoy plays a vital role because the cost of acquiring new customers is noticeably higher than the cost of maintaining existing ones (Reichheld and Schefter, 2000). Measuring online buyers’ eLoy in B2C e-commerce should include 'the first choice in using the website, positive comments, encouraging someone to browse the website, liking to use the website, recommendations to others, buying intentions, caring about the best websites and retail sites (Yanmie and Ching, 2012).
In retail B2C online, eSat is considered as customer satisfaction derived from previous real buying experience in e-commerce companies (Anderson and Srinivasan, 2003). It is a critical component in determining the success of online shopping, especially in the B2C market. In the online purchasing setting, customer satisfaction is influenced by the quality of the user interface of online seller's website, as it provides physical evidence of the capabilities of online service providers and facilitates the use of online services (Alam and Yasin, 2010). Measuring online customer satisfaction in the B2C market includes: “shopping experience (Guo et al., 2017), Yao and Liao (2011), wise decision, overall satisfaction, enjoyment (Guo et al., 2017) and the way online transaction is carried out, online retailer services, correct decision, and online retailer performance (Yao and Liao, 2011).
The relationship between eSat and eLoy is applied in offline and online stores (Zhang and Prybutok, 2005). Many studies showed that eSat customers are a direct eLoy consumer antecedent in B2C e-commerce. Numerous studies have revealed that there is evidence in the context of B2C e-commerce regarding the positive impact of eSat on eLoy (Lin and Sun, 2009). The relationship between customer satisfaction and eLoy has been shown to be significant in many studies and resulting in a positive predisposition of long-term loyalty (Gee et al., 2008). Our research addresses this topic as the main proposed hypothesis. Based on the context and empirical evidence, we suggested a hypothesis to be examined as follows:
H8: The e-satisfaction of a Bukalapak.com user influences their e-loyalty on Bukalapak.com.
2.3. Mediation of e-Satisfaction
In Indonesia, a test of the mediation pattern of eSat on eSQ effect to eLoy is still lacking. But overseas research with this relationship model has been widely practiced, both with pure mediation (Yang and Tsai, 2007), Ting et al. (2016) and with the addition of other variables (Al-dweeri et al., 2017), (Zhang and Prybutok, 2005), (Lin and Sun, 2009; Eid, 2011) and additionally, the addition of the direct influence of eSQ to eLoy Quan (2010) and the use of Expectancy Disconfirmation Theory theory on eSat variables (Chiou et al., 2009). There are even researchers who have examined the effect of eSQ on eLoy on eSat (Zavareh et al., 2012).
The existence of trends in studies at the dimensional level, in turn will lead to guidance that will be useful suggestions for improvement in determining the strengths and weaknesses of the website (Parasuraman et al., 2005). The problem of dimensionality was also proven by Yang and Tsai (2007) by applying dimensional regression tests of all their eSQ factors in eSat mediation pattern. Efficiency, system availability, fulfillment, privacy, responsiveness, compensation, and contact became the independent variables for eSat in the research of Yang and Tsai (2007). Ting et al. (2016) also tested the effect of eSQ dimensions of Efficiency, Fulfilment, Privacy & Trust, Responsiveness, Contact, Website Design to eSat in mediation test. Website user interface design is strongly related to customer satisfaction (Alam and Yasin, 2010). Al-dweeri et al. (2017) only tested the effect of efficiency, privacy, and customer service, i.e. eSQ dimensions on eLoy, with eSat and Eloy as mediator.
Regarding the context of this research and with previous empirical studies, researcher have classified the eSQ dimensions as well as assessing them as independent variables that influence satisfaction. With a number of mergers explained in the method section, we determine the dimensions of eSQ that affect eSat, and propose the following hypotheses:
H1: The efficiency dimension influencesBukalapak.com’s customer e-satisfaction.
H2: The reliability dimension influences Bukalapak.com’s customer e-satisfaction.
H3: The privacy dimension influences Bukalapak.com’s customer e-satisfaction.
H4: The responsiveness dimension influences Bukalapak.com’s customer e-satisfaction.
H5: The contact dimension influences Bukalapak.com’s customer e-satisfaction.
H6: The websiter design dimension influences Bukalapak.com’s customer e-satisfaction.
H7: The compensation dimension influences Bukalapak.com’s customer e-satisfaction.
Figure-1. Conceptual model.
Source: Adopted from Parasuraman et al. (2005) and Wolfinbarger and Gilly (2003).
3. RESEARCH METHODS
This survey used ex-post facto data retrieval. Data were collected twice, with the first initial data collection through a literature review of journal articles, APJII website articles and their latest publication, and some news portal sites. We collected data through observation of online buying behavior and also private interviews on Bukalapak.com.
The second data collection was conducted through an offline physical questionnaire as well as an online questionnaire. The population was Bukalapak.com users who had made online purchase transactions through Bukalapak.com website or its mobile application. The selected sampling technique was a purposive sampling technique to ensure that the research respondent was the person who had the information required for this research.
The criterion for choosing respondents of the study was those who made buying transactions at Bukalapak.com at least three times over the previous three months. A total of 1301 responses were collected and analyzed with only 1105, after removing responses based on outliers and incomplete filling.
We measured the variables by combining the scale of eSQ and adapting them to the conditions in the context of this study. We considered the dimensions of reliability and fulfillment (Parasuraman et al., 2005) to be equal and chose reliability to represent both. Treating trust and privacy similarly, we chose privacy to represent both. We also added web design (Wolfinbarger and Gilly, 2003) for specific naming reasons related to aspects of online services, as well as aspects of human-computer interaction. The dimension of information quality (Yang, 2007) was included in the website design so we did not apply it as a separate dimension.
Structural Equation Modelling (from now on called SEM) was selected for data analysis. Each dimension was treated as single construct in addition to the multidimensional eSQ. The construct validity is determined through the Confirmatory Factor Analysis test (from now called CFA) with valid indicator criteria if the value of standardized loading factor (from now on called SLF) ≥ 0.5 and is significant. The Construct Reliability values were expected to be ≥ 0.7 and AVE ≥0.5 (Hair et al., 2014). The results of the Goodness of Fit (GoF) test of the structural model using RMSEA value criteria were below 0.08 with AGFI, GFI, RFI, IFI, CFI, NFI, and NNFI each being the same or above 0.9. The absence of agreement on the absolute GoF criteria of SEM (Wijanto, 2008) underpinned the selection of eight GoF criteria in this study. The hypothesis test was done by looking at the significance of the regression weights coefficient from the Maximum Likelihood estimation technique on the path between variables. If the value of it was greater than 1.96 at α = 5%, then the research hypothesis would be accepted. The dimensions of electronic service quality that have the greatest influence were determined based on the standard regression value on the path.
4. RESULTS AND DISCUSSION
4.1. Descriptive Statistics
From Table 2 we know that the majority of the research respondents were women even though the proportion between the two genders was not too dissimilar at 8.6%. Sixty-sixt percent of respondents have a bachelor’s degree, followed by those with high school qualifications at31.5%. This makes sense considering that respondents with bachelor degrees and those who are high school graduates are mostly generation Y and a small portion of generation Z (Francis and Hoefel, 2018) who are very familiar with the internet both with PCs and smartphones. The affordability of this generation in the selection of respondents was very high because the instruments were distributed online. Financially, 67.7% of respondents earned less than 1.5 million rupiah, 20% more than three million rupiah and this income claim was in accordance with the respondents’ age and education characteristics.
Table-2. Descriptive (Frequency).
| No. | Sex categories | Frequency |
Percent |
Cumulative |
| 1 | Male | 505 |
45,7 |
45,7 |
| 2 | Female | 600 |
54,3 |
100,0 |
| Total | 1105 |
100,0 |
||
| Education categories | ||||
| 1 | Elementary | 3 |
0,3% |
0,3% |
| 2 | Junior H.S | 10 |
0,9% |
1,2% |
| 3 | High school | 348 |
31,5% |
32,7% |
| 4 | Bachelor | 729 |
66,0% |
98,6% |
| 5 | Master | 11 |
1,0% |
99,6% |
| 6 | Doctor | 4 |
0,4% |
100,0% |
| Total | 1105 |
100,0% |
||
| Income categories (in IDR) | ||||
| 1 | less than 1,000,000 | 497 |
45,0% |
44,98% |
| 2 | 1,010,000 to 1,500,000 | 140 |
12,7% |
57,65% |
| 3 | 1,510,000 to 2,000,000 | 94 |
8,5% |
66,15% |
| 4 | 2,010,000 to 2,500,000 | 62 |
5,6% |
71,76% |
| 5 | 2,510,000 to 3,000,000 | 91 |
8,2% |
80,00% |
| 6 | more than 3,000,000 | 221 |
20,0% |
100,00% |
| Total | 1105 |
100% |
Source: Data analyzed.
Table-3. Validity and reliability.
| No. | Variables | Item |
SLF |
Errors |
CR |
AVE |
| 1 | Efficiency | ef1 |
0.85 |
0.28 |
0.88 |
0.70 |
ef3 |
0.82 |
0.33 |
||||
ef5 |
0.85 |
0.28 |
||||
| 2 | Reliability | rel1 |
0.86 |
0.25 |
0.90 |
0.69 |
rel2 |
0.81 |
0.34 |
||||
rel3 |
0.83 |
0.3 |
||||
rel4 |
0.82 |
0.33 |
||||
| 3 | Privacy | pri1 |
0.88 |
0.23 |
0.92 |
0.75 |
pri3 |
0.88 |
0.12 |
||||
pri4 |
0.92 |
0.27 |
||||
pri5 |
0.93 |
0.44 |
||||
| 4 | Responsiveness | res2 |
0.89 |
0.21 |
0.93 |
0.81 |
res3 |
0.92 |
0.16 |
||||
res4 |
0.9 |
0.2 |
||||
| 5 | Contact | con1 |
0.86 |
0.26 |
0.92 |
0.79 |
con2 |
0.9 |
0.19 |
||||
con3 |
0.9 |
0.19 |
||||
| 6 | WebDesig | des1 |
0.88 |
0.23 |
0.93 |
0.77 |
des2 |
0.87 |
0.23 |
||||
des3 |
0.88 |
0.23 |
||||
des4 |
0.87 |
0.24 |
||||
| 7 | Compensation | com1 |
0.8 |
0.36 |
0.89 |
0.73 |
com3 |
0.89 |
0.2 |
||||
com4 |
0.86 |
0.26 |
||||
| 8 | E-Satisfaction | eS1 |
0.91 |
0.17 |
0.97 |
0.87 |
eS2 |
0.94 |
0.13 |
||||
eS3 |
0.95 |
0.1 |
||||
eS4 |
0.94 |
0.12 |
||||
eS5 |
0.93 |
0.14 |
||||
| 9 | E-Loyalty | eL2 |
0.91 |
0.18 |
0.95 |
0.84 |
eL3 |
0.93 |
0.14 |
||||
eL5 |
0.92 |
0.15 |
||||
eL6 |
0.9 |
0.18 |
Source: Data analyzed.
4.2. Goodness of Fit, Validity and Reliability
The first CFA test showed that all indicators were valid to manifest the existence of each construct. RMSEA was worth 0.07 and all Standardized Loading Factors were worth more than 0.8 in addition to ef2 that was 0.78. However, in order to obtain a GoF that met our selection criteria, we decided to eliminate items that contributed to decreasing the number of Chi-Square and to obtain the value of ≥ .90 on all the GoF index criteria we chose.
From this practice, the sequentially eliminated items were res1, des5, des6, com2, pri2, eS6, eL1, ef4, ef2 and eL4. The GoF were AGFI at 0.90, GFI at 0.92, RFI at 0.99, IFI at 1, CFI at 1, NFI at 0.99, NNFI at 1, and RMSEA at 0.049. These satisfactory results continued to SLF scores by the lowest score which was 0.80. Satisfactory results were also obtained from the reliability construct test of all constructs, i.e. the dimensions of eSQ, eSat and eLoy had good reliability. The complete results of the validity and reliability test can be seen in Table 3
4.3. Hypothesis Test
The full model estimation results showed empirical evidence that not all eSQ dimensions affected eLOY through eSAT. The following Table 4 explains this further.
Table-4. Hypothesis test result.
| No. | Hypothesis | Estimates |
Std. estimates |
t-values |
Decisions |
| 1 | Efficiency ---> E-Satisfaction | 0.91 |
0.26 |
1.03 |
Rejected |
| 2 | Reliability ---> E-Satisfaction | -0.12 |
-0.03 |
-0.14 |
Rejected |
| 3 | Privacy ---> E-Satisfaction | 0.37 |
0.1 |
2.32 |
Accepted |
| 4 | Responsiveness ---> E-Satisfaction | -0.24 |
-0.07 |
-1 |
Rejected |
| 5 | Contact ---> E-Satisfaction | -0.27 |
-0.08 |
-1.57 |
Rejected |
| 6 | Webdesign ---> E-Satisfaction | 1.32 |
0.37 |
3 |
Accepted |
| 7 | Compensation ---> E-Satisfaction | 1.58 |
0.44 |
3.25 |
Accepted |
| 8 | E-Satisfaction ---> E-Loyalty | 0.97 |
0.96 |
16.65 |
Accepted |
Source:Data analyzed.
From the Table 3 we obtained the results of four accepted hypotheses: H3, H6, H7, and H8. In the case of Bukalapak.com, it proved H8 and that the eSAT influence on eLOY was the key factor for the presence or absence of the role of eSat mediation on the influence of the eSQ dimensions of privacy, web design and compensation on eLOY for Bukalapak.com. It means that only three dimensions of the eSQ for Bukalapak.com affected the eLOY of its customers.
If we compared the value of standardized estimates, the three dimensions sequentially from the greatest influence to the smallest, were namely: compensation, web design, and privacy. Empirically, our findings provided sufficient evidence that the perceptions of compensation provided by Bukalapak.com regarding any problems that occur, the positive perceptions of web site design, and the perceptions of how privacy is maintained were antecedents to customer satisfaction before all three affected Bukalapak .com’s customer loyalty.
The proven hypotheses of H3, H6, H7 and H8 were the amplifiers of the theory of mediation relationship by eSat on the effect of e-service quality on customer e-loyalty. These results are similar to the two other studies in the e-commerce sector by Yang and Tsai (2007), Ting et al. (2016). The results of this study are similar to those of Al-dweeri et al. (2017), Zhang and Prybutok (2005), Lin and Sun (2009), Eid (2011), Quan (2010), Yang (2007).
With the proven influence of three dimensions of eSQ, namely compensation, privacy, and website design, all of which are human-centered eSQ dimensions, we believe that somehow changes occur in the way consumers and producers interact. In this case of using a website/app, human natural factors should remain a concern of business people and the market itself. Market memories of how Bukalapak.com resolves problems by providing compensation; about how sentences are structured to encourage favorable perceptions about the fate of their privacy; as well as how the website / application which is a front-line employees of the company is designed and how it interacts with consumers, will overshadow market behavior in the future. In our study, the influence of these three dimensions on electronic consumer loyalty was mediated by eSat.
This year, 2019, Bukalapak.com has made many innovative changes in its electronic services by taking a human-centered approach such as giving compensation in the form of prizes for participating in games, offering sweepstakes, and giving away free vouchers, etc. In addition, the website design is also more aesthetic and dynamic. It seems that our research in 2018 is in line with Bukalapak.com's policy in 2019.
5. CONCLUSION AND IMPLICATIONS
The conclusion of this study is that the conventional theory of mediation of the relationship of service quality, satisfaction and loyalty can also be applied and succeeded in explaining phenomena in the world of e-commerce. In the case of Bukalapak.com, the dimensions of electronic service quality that affect electronic loyalty by mediating electronic satisfaction were compensation, web site design, and privacy. These three dimensions are the human aspects of website design. Practically, Bukalapak.com must pay attention to increase the loyalty of their customers by increasing the feeling of being valued by getting compensation, the ease of finding sites / applications with web designs / applications and feeling safe to transact.
The implication for further research is the need to study a larger population with wider coverage so that the results can be generalized broadly and are more useful. Future studies also need to look at the appropriateness of measuring electronic service quality with the research context, where we combine several scales and find interesting empirical facts.
| Funding: The authors would like to thank the Republic of Indonesia’s Ministry of Research, Technology and Higher Education for the PKPT 2019 grant we received. This article is one of the outputs of the funded research. |
| Competing Interests: The authors declare that they have no competing interests. |
| Acknowledgement: The authors thank anonymous reviewers for their suggestions and corrections to his work. |
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