Vol. 6, Issue 2020, 2020
January 10, 2020
Anshika Sharma, Aarti Garg
Knowledge Transfer: An Empirical Study on Factors Yielding the Effectiveness of the Academia–Industry Interface (With Special Reference to Moradabad City).
January 10, 2020
Maria J Sousa, Carla Ferreira, Dulce Vaz
Innovation Public Policy: The Case of Portugal. A great review article describing the Innovation Public Policy in the Case of Portugal.
January 30, 2020 Ibrahim A Onour Herd
Behavior and Volatility Persistence in Bombay (Mumbai) Stock Exchange. A good original study analyzing the Herd Behavior and Volatility Persistence in Bombay (Mumbai) Stock Exchange.
February 13, 2020
I Wayan Santika, Komang AS Pramudana, Ni LPS Astitiani
The Role of E-Satisfaction in Mediating the Effect of E-Service Quality and E-WOM on E- loyalty on Online Marketplace Customers in Denpasar, Bali, Indonesia.
February 13, 2020
Ashima Agarwal, Sanjeev Bansal, Lakhwinder K Dhillon
Analysis of Selectivity and Timing Skills of Fund Managers. An original study analyzing the Selectivity and Timing Skills of Fund Managers.
February 14, 2020
Stephen Nyaga, Susan Okeri
Does Social Franchising Private Health Facilities Shift Consumers Budget Line? An
Econometric Analysis of the Average Treatment Effect within Private Health Facilities in
Embu County, Kenya.
Editorial Board
EDITORS
Daryl D. Green, Assistant Professor of Business, Dickinson Chair of Business, Oklahoma Baptist University, Shawnee, OK, USA. Jeffrey E. Jarrett, Professor, College of Business Administration, University of Rhode Island, Kingston, RI, USA. Sandra R. Trejos, Professor of Economics, College of Business Administration, Clarion University of Pennsylvania, Clarion, PA, USA.
ASSOCIATE EDITOR Badar A. Iqbal, Professor Emeritus, External Relations Çhair of Economics, Frederic Bastiat Institute for African Economic Research, Accra, Ghana.
EDITOR - SPECIAL ISSUES Badar A. Iqbal, Professor Emeritus, External Relations Çhair of Economics, Frederic Bastiat Institute for African Economic Research, Accra, Ghana.
INTERNATIONAL EDITORIAL BOARD Alex Meisami, Associate Professor of Finance, Judd Leighton School of Business and Economics, Indiana University South Bend, South Bend, IN, USA. Amir Kia, Professor of Economics, The Wallace R. Woodbury Professorship in Economics, Finance & Economics Department, Utah Valley University, Orem, UT, USA. David McMillan, Professor, Accounting and Finance Division, Stirling Management School,
University of Stirling, Stirling, UK.
Elizabeth A. Risik, Assistant Professor, George Herbert Walker School of Business and Technology, Webster University, St. Louis, Missouri, USA. Hrabrin Bachev, Professor, Institute of Agricultural Economics, Sofia, Bulgaria. Kamel Mellahi, Professor of Strategic Management, Warwick Business School, University of Warwick, Coventry, UK. Raushan Gross, Assistant Professor of Business Administration, Division of Business Management and Leadership, Pfeiffer University, Charlotte, NC, USA. Reena Agrawal, Assistant Professor of Accounting, Finance and Entrepreneurship, Chairperson - Centre for Entrepreneurship
Development, Jaipuria Institute of Management, Lucknow, Uttar Pradesh, India. Samar Rahi, Assistant Professor, Faculty of Commerce, Hailey College of Banking & Finance, University of the Punjab, Lahore, Pakistan. Thomas O'Connor, Lecturer, Department of Economics, Finance and Accounting, National University of Ireland (Maynooth University), Maynooth, Ireland.
Wan-Chun Liu, Associate Professor, Department of International Trade, Takming University of Science and Technology, Taipei, Taiwan. Xuan V. Tran, Associate Professor of Hospitality Program, College of Business, University of West Florida, Pensacola, Florida, USA. Yi Yang, Associate Professor, Department of Management, Manning School of Business, University of Massachusetts Lowell, Lowell, MA, USA.
Acknowledgment of Reviewers for 2019 Afsin Sahin, Gazi University, Ankara, Turkey. Alain Ndedi, Charisma University, Grace Bay, Turks and Caicos Islands. Aleksahina V. Grigorievna, University of Technology, Korolev, Moscow, Russia. Alex Meisami, Indiana University South Bend, South Bend, IN, USA. Ali Y.M. Zain, University Utara Malaysia, Changlun, Kedah, Malaysia. Anil Dongre, KBC North Maharashtra University, Jalgaon, MH, India. Aregbeshola R.
Adewale, University of South Africa, Pretoria, South Africa. Arthur Jue, International
Technological University, San Jose, CA, USA. Arti Yadav, Indian Council of Social Science
Research, New Delhi, India. Asis K. Banerjee, University of Calcutta, Kolkata, WB, India.
Bhaso Ndzendze, University of Johannesburg, Johannesburg, South Africa. Daryl D. Green, Oklahoma Baptist University, Shawnee, OK, USA. David Monyae, University of Johannesburg, Johannesburg, South Africa. Evgeny F. Avdokushin, Moscow State Pedagogical University, Moscow, Russia. Fernando R.F. Almeida, Fluminense Federal University, Niterói, Rio de Janeiro, Brazil. George Taylor, University of Phoenix, Phoenix, AZ, USA. Glaudionor G.
Barbosa, Federal University of Pernambuco UFPE, Recife, PE, Brazil. Guifen Pei, Institute of Japanese Studies, Hebei University, Baoding, Hebei, China. Ibrahim A. Onour, University of Khartoum, Khartoum, Sudan. Imad Moosa, RMIT University, Melbourne, Australia. Jon S.T.
Quah, Retd. Prof., National University of Singapore, Singapore. Joseph Heinzman, South University, Tampa, FL, USA. Juilung Chen, National Chin-Yi University of Technology,
Taichung City, Taiwan. Júlio G.S. Neto, Federal University of Alagoas, Maceió, Alagoas, Brazil.
Kathia Ibacache, University of Colorado at Boulder, Boulder, CO, USA. Lee Seong Wei, Universiti Malaysia Kelantan, Jeli, Kelantan, Malaysia. Luciana A. Bastos, UNESPAR, Paranavaí, PR, Brazil. Luiz Souza, Federal University of Maranhão, Sao Luis, Brazil. Manjula Jain, IFTM University, Moradabad, UP, India. Maria Alejandra Madi, Institute of Economics, UNICAMP, Campinas, SP, Brazil. Maria Casanova, California State University Fullerton, Fullerton, CA, USA. Maria de F. Previdelli, Federal University of Maranhão, Sao Luis, Brazil.
Marvin G. Lovett, University of Texas Rio Grande Valley, Edinburg, TX, USA. Mohd. N.
Rahman, Aligarh Muslim University, Aligarh, India. M. Subin Sunder Raj, National Law School of India University, Bangalore, KA, India. Munim Barai, Ritsumeikan Asia Pacific University, Beppu, Ōita, Japan. Nalin Bharti, Indian Institute of Technology, Patna, India. Nattaka
Singhavilai, National Science & Technology Development Agency, Patumthani, Thailand.
Neetika Batra, School of Inspired Leadership, Gurgaon, Haryana, India. Nonkululeko T.
Mazubane, Durban University of Technology, Durban, South Africa. Norhaziah Nawai, Universiti Sains Islam Malaysia, Nilai, Negeri Sembilan, Malaysia. Olga Gorbunova, National Research University Higher School of Economics, Moscow, Russia. Patrick Grüning, Bank of Lithuania and Vilnius University, Vilnius, Lithuania. R.P. Tulsian, Shaheed Bhagat Singh
College, University of Delhi, New Delhi, India. Rabi Kar, University of Delhi, New Delhi, India.
Rahul Choudhury, Institute of South Asian Studies, National University of Singapore, Singapore.
Samar Rahi, University of the Punjab, Lahore, Pakistan. Sanjeev Bansal, Amity Business School, NOIDA, UP, India. Sudhir Rana, Fortune Institute of International Business, New Delhi, India.
Syed Ahmed, Cameron University, Lawton, OK, USA. T. Raghavendra Rao, NALSAR
University of Law, Hyderabad, Telangana, India. Tajul A. Masron, Universiti Sains Malaysia,
George Town, Malaysia. Thobeka Ncanywa, University of Limpopo, Mankweng, Limpopo,
South Africa. Thomas O'Connor, National University of Ireland (Maynooth University),
Maynooth, Ireland. Yashwant K. Gupta, Himachal Pradesh University, Shimla, India.
The Role of E- Satisfaction in Mediating the Effect of E-Service Quality and
E- WOM on E- loyalty on Online
Marketplace Customers in Denpasar, Bali, Indonesia
HATASO
E-ISSN: 2469-4339
Management and Economics Research Journal, Vol. 6, Iss./Yr. 2020, Pgs. 7
Original Research Article
Santika et al.
Management and Economics Research Journal 1
Vol. 6, Iss./Yr. 2020, Pgs. 7 https://doi.org/10.18639/MERJ.2020.961742
The Role of E-Satisfaction in Mediating the Effect of E-Service Quality and E-WOM on E-loyalty on Online Marketplace
Customers in Denpasar, Bali, Indonesia
I Wayan Santika1*, Komang AS Pramudana1, Ni LPS Astitiani2
1Management Department, Faculty of Economics and Business, Udayana University, Bali, Indonesia.
2Digital Business Department, Bali International University, Bali, Indonesia.
*Correspondence: iwsantika@gmail.com
Received: Dec 06, 2019; Accepted: Jan 05, 2020
Copyright: Santika et al. This is an open-access article published under the terms of Creative Commons Attribution License (CC BY). This permits anyone to copy, distribute, transmit, and adapt the work provided the original work and source is appropriately cited.
Citation: Santika IW, Pramudana KAS, Astitiani NLPS. 2020. The role of e-satisfaction in mediating the effect of e-service quality and e-WOM on e-loyalty on online marketplace customers in Denpasar, Bali, Indonesia. Management and Economics Research Journal, Vol. 6, Article ID 961742, 7 pages. https://doi.org/10.18639/MERJ.2020.961742
Abstract
This research is motivated by the convenience for consumers to move from an online site to another online site when shopping online. This makes consumers vulnerable to switching to other online shopping sites. This study aims to determine the role of e-satisfaction in mediating the effect of e-service quality and e-wom on e-loyalty in online marketplace customers in the city of Denpasar. The sampling method in this study is nonprobability sampling with a purposive sampling technique. Data were collected from 120 respondents who met the criteria of having made an online shopping transaction at least three times on an online marketplace site and is domiciled in Den- pasar City. The analytical method used is path analysis estimated using statistical software. The results showed that e-service quality had a positive and significant effect on e-satisfaction; e-wom has a positive and significant effect on e-satisfaction; e-service quality has a positive and significant effect on e-loyalty; e-wom has a positive and signifi- cant effect on e-loyalty; e-satisfaction has a positive and significant effect on e-loyalty; e-satisfaction is significantly able to mediate the effect of e-service quality on e-loyalty; and e-satisfaction is significantly able to mediate the effect of e-wom on e-loyalty. The contribution that can be given by the author is to enrich and complete the study of online marketing especially in developing countries and especially Bali; increasing online sales is important to be studied more.
Keywords: E-service quality; E-wom; E-satisfaction; E-loyalty.
1. INTRODUCTION
The development of increasingly sophisticated internet technology has benefited many parties, including business people in Indonesia. Online business is growing rapidly in Indonesia, which is marked by the increasing number of businesses that use the internet as a marketing medium, such as to promote, interact, and connect with customers. Through the internet, companies can present product information, prices, per- sonality purchases, orders, payment systems, and delivery of goods to customers.
The development of business lines is indicated by an increase in the number of online stores and the number of consumers who shop online in Indonesia. This development is due to the program sup- porting online shopping applications that provide proper convenience (ease of use) and efficacy (usabil- ity) for users to create online stores and sell them online. Another advantage of online shopping is the flexibility of space and time so that consumers can shop anytime and anywhere. Online trading via the internet is known as e-commerce. E-commerce is the activity of conducting online business transactions
2 Original Research Article
E-ISSN: 2469-4339 merj.scholasticahq.com
via the internet and devices that are integrated with the internet (Laudon and Traver, 2012). E-commerce is the result of developments in society as an effort to meet human needs in more effective and efficient ways. E-commerce that is growing rapidly as a medium of buying and selling is the online market. The online market is an online market consisting of online stores for selling and conducting transactions online.
The development of the online market has caused online shops to compete for the market. Repeat purchases at online shopping is an important problem caused by the convenience of consumers to switch from online stores to more online stores and make it easier for consumers to compare purchases of the same product at different online stores (Lu et al., 2013). In other words, online consumers can freely choose an online site and make a purchase without having to be attached to the online site. The result is that low consumer loyalty is often found in online shopping, which makes it difficult for online companies to realize long-term and sustainable profits (Yen, 2010).
Changing consumers from one product to another shows low consumer loyalty to the product, wherein the online context, loyalty is called e-loyalty. E-loyalty on online purchases is the attitude of consumers who are aware of always using certain online services and recommend them to other potential users to partici- pate in using this online service (Hur et al., 2011). The higher the level of e-loyalty, the higher the awareness of consumers to continue to use and recommend this online service.
Several studies have shown that e-loyalty is influenced by consumer ratings of the quality of electronic services, as in the study of Chen et al. (2013). In online shopping, consumers cannot conduct an assessment of the physical elements of the company caused by the absence of direct interaction (face to face) between consumers and companies so that consumers can only assess the quality of services provided by online companies, called the quality of electronic services. The quality of electronic services shows how electronic commerce sites serve and facilitate online shopping, ordering, and shipping of products or services effect- ively and efficiently (Zeithaml et al., 2000).
One research paper shows that the quality of electronic services has a positive and significant influ- ence on online customer loyalty. Other results are that the quality of electronic services has a positive and significant effect on customer satisfaction, and the quality of electronic services also has a significant effect on customer loyalty through customer satisfaction. Although the research of Abdullah et al. (2015) states that the electronic service quality hypothesis has a positive and significant effect on customer loyalty not accepted (rejected), the quality of electronic services is not a predictor of customer loyalty in online banking business application users. Chen et al. (2013) confirm that e-service quality has a positive and significant effect on the perception of customer satisfaction and customer loyalty for businesses to business e-com- merce users. According to Li et al (2009), the dimension of e-service quality is seen from two perspectives, namely the company perspective and the customer perspective. When viewed from a company perspective, the dimensions of e-service quality that must be considered are ease of use (ease for customers to use a website), website design (website must be well designed and visually appealing), reliability (consistency of performance and web reliability), system availability (correct technical functions of the website), privacy (security and protection of customer information), responsiveness (effective problem handling and returns via the internet), and empathy (individual care and attention given to customers via electronic channels).
Meanwhile, if viewed from the customer’s perspective, the dimensions of e-service quality that must be con- sidered are experience (the impression of the company through previous customers) and trust (customer trust by providing fast and information-rich services).
Research Ario and Djatmiko (2016) shows that increasing e-service quality will increase customer sat- isfaction and increase e-loyalty. Customer satisfaction is a measure between customer expectations and company products or services as long as customers use the company’s products or services (Yong et al. in Andreas 2012). Research by Ristina and Rusfian (2013) shows that e-service quality has a positive and sig- nificant effect on customer satisfaction, but e-service quality does not directly influence repurchase. In con- trast, another research paper shows that e-service quality has a positive and significant effect on customer satisfaction and e-service quality directly affects e-loyalty.
Based on the background of the problem and the results of previous studies, a study was conducted to analyze the effect of e-service quality and e-wom on e-loyalty with e-satisfaction as a mediating variable on online marketplace customers in Denpasar City.
Management and Economics Research Journal 3
Vol. 6, Iss./Yr. 2020, Pgs. 7 https://doi.org/10.18639/MERJ.2020.961742 2. CONCEPTUAL FRAMEWORK AND HYPOTHESIS
This study analyzes the effect of e-service quality and e-wom on e-loyalty with e-satisfaction as a mediating variable. Figure 1 shows the conceptual framework of the study that explains the relationship of each vari- able in this study.
Figure 1. Research Conceptual Framework.
E-Service Quality
E-Satisfaction E-loyalty
E-Wom
Some literature shows that e-service quality has a positive and significant effect on e-satisfaction and e-loyalty. Likewise, the results of the study of Chen et al. (2013) show that e-service quality has a positive and significant effect on customer satisfaction and e-loyalty for e-commerce users. The research of Ario and Djatmiko (2016) shows that increasing e-service quality will increase customer satisfaction and increase e-loyalty. Although the research of Abdullah et al. (2015) states that the e-service quality hypothesis has a positive and significant effect on e-loyalty not accepted (rejected), the e-service quality is not a predictor of e-loyalty in online banking business application users. Similarly, the research by Ristina and Rusfian (2013) shows that e-service quality has a positive and significant effect on customer satisfaction, but e-service quality does not directly influence repurchases on online shopping. The results of a research paper again reinforces that e-service quality has a positive and significant effect on customer loyalty (e-loyalty) for Go- Jek customers. Other results are that e-service quality has a positive and significant effect on customer satisfaction, and e-service quality has a significant effect on e-loyalty through customer satisfaction.
Based on previous empirical studies, the following hypothesis can be arranged: H1: e-service quality has a positive and significant effect on e-satisfaction. H2: e-wom has a positive and significant effect on e-satisfaction. H3: e-service quality has a positive and significant effect on e-loyalty. H4: e-wom has a posi- tive and significant effect on e-loyalty. H5: e-satisfaction has a positive and significant effect on e-loyalty.
H6: e-satisfaction significantly mediates the effect of e-service quality on e-loyalty. H7: e-satisfaction signifi- cantly mediates the effect of e-wom on e-loyalty.
3. METHOD(S)
This study uses a quantitative approach to the type of associative research. Associative research is able to explain the relationship between one variable with another variable. The indicators forming the variables refer to several sources that have been modified to suit the subject of this study. This research was conducted to explain the effect of e-service quality and e-wom on e-loyalty through e-satisfaction. This research was conducted on online marketplace customers in Denpasar City by collecting data through questionnaires.
The study population was all online marketplace customers in the city of Denpasar. The sample size plays an important role in estimating and interpreting results. This study uses 23 indicators so that a sample size of 115-230 respondents was obtained by using estimates based on the number of parameters. The num- ber of samples used in this study was 120 respondents.
4 Original Research Article
E-ISSN: 2469-4339 merj.scholasticahq.com
The sampling technique used in this study is nonprobability sampling, which is a sampling technique that does not provide equal opportunities or opportunities for each element or member of the population to be selected as a sample (Sugiyono, 2014). The sampling technique used is using purposive sampling and incidental sampling techniques. Purposive sampling is a sampling technique with certain considerations in which the researcher must really know and assume that the respondent chosen can provide information in accordance with the problem under study. Incidental sampling is a sampling technique based on coinci- dence, that is, anyone who meets coincidentally with a researcher will be sampled, if it is considered that the person is suitable as a data source. The criteria for purposive sampling in this study were respondents who were online marketplace customers who had shopped online at least three times, had a minimum of high school education or equivalent, and were domiciled in Denpasar.
The data analysis technique used is path analysis or called a path analysis. Path analysis is an extension of regression analysis linear multiple useful to assess causal relationships between variables (Preacher and Hayes, 2004). Path analysis techniques will be used in testing the amount of contribution expressed by the path coefficient in each path diagram of the causal relationship or cause and effect cre- ated by the free variable to the dependent variable. While testing the mediation hypothesis is done by a procedure developed by Sobel (Suyana, 2016). This Sobel test is done by testing the strength of the indirect effect of the independent variable (X) on the dependent variable (Y) through mediating/interven- ing variables (M).
4. RESULTS AND DISCUSSION
Respondent characteristics in this study were seen from gender, age, education, online marketplace sites used, and tools used to access online marketplace sites. As shown in Table 1, the largest percentage of respondents were women (62%), aged between 26 and 35 years (44%), and undergraduate education (57%).
The most widely used online marketplace site is Tokopedia (53%), while the tools used to access online mar- ketplace sites are dominated by smartphones (91%).
In this research, the analysis technique used is the path analysis technique. Path analysis is used to determine the pattern of relationships between three or more research variables. The results of the path analysis for regression equation 1 and regression equation 2 are presented in Table 2.
From the results of data processing presented in Table 2, the following hypotheses can be discussed:
(i) Hypothesis 1 testing obtained the significance level of two-sided test t for the e-service quality variable of 0.00 smaller than 0.05 with a positive regression coefficient of 0.582. This shows that H1 is accepted, which means that e-service quality has a positive and significant effect on e-satisfaction. This means that the more the quality of online services increases, the more the satisfaction of online marketplace customers in the city of Denpasar. (ii) Hypothesis 2 testing obtained the significance level of t two-tailed test for the e-wom variable of 0.00 smaller than 0.05 with a positive regression coefficient of 0.298. This shows that H1 is accepted, which means that e-wom has a positive and significant effect on e-satisfaction. This means that the increasing online word-of-mouth efforts will also increase the satisfaction of online marketplace custom- ers in the city of Denpasar. (iii) Hypothesis 3 testing obtained the significance level of t two-tailed test for the e-service quality variable of 0.00 smaller than 0.05 with a positive regression coefficient of 0.298. This shows that H1 is accepted, which means that e-service quality has a positive and significant effect on e-loyalty. This means that the more the quality of online services increases, the loyalty of online marketplace customers in Denpasar City increases. (iv) Hypothesis 4 testing obtained the significance level of t two-tailed test for the e-wom variable of 0.00 smaller than 0.05 with a positive regression coefficient of 0.170. This shows that H1 is accepted, which means that e-wom has a positive and significant effect on e-loyalty. This means that increas- ing word-of-mouth efforts online will increase customer loyalty in the online marketplace in the city of Den- pasar. (v) Hypothesis 5 testing obtained the significance level of t two-tailed test for an e-satisfaction variable of 0.00 smaller than 0.05 with a positive regression coefficient of 0.684. This shows that H1 is accepted, which means that e-satisfaction has a positive and significant effect on e-loyalty. This means that increas- ing customer satisfaction increases customer loyalty in the online marketplace in Denpasar. (vi) Hypothesis 6 testing uses the Sobel test by calculating the value of Z count as follows: =
+ ab
2 2 2 2
Z b sa a sb 5 7.138. Because
Management and Economics Research Journal 5
Vol. 6, Iss./Yr. 2020, Pgs. 7 https://doi.org/10.18639/MERJ.2020.961742 Table 1. Characteristics of Respondents.
No. Characteristics Information (%)
1 Age of respondent
17-25 years old 26-35 years old 36-45 years old 46-55 years old 56 years and over
18 44 34 3 1
2 Gender
Men Woman
38 62
3 Education
SMA/SMK Bachelor
Others
39 57 4 4 Largest online marketplace used
Tokopedia Bukalapak Lazada Blibli.com
OLX Others
53 30 14 1 1 1 5 Tool for accessing online
marketplace sites Smartphone
The laptop Tablet
PC
91 6 2 1 Source: Data processed, 2019.
Table 2. Range of Coefficients of Regression Equation 1 and Regression Equation 2.
Model
Unstandardized Coefficients
Standardized Coefficients
T Sig.
B Std. Error Beta
1 (Constant) E-service quality (X1)
E-wom (X2)
Dependent variable: e-satisfaction (M)
20.445 0.726 0.359
0.353 0.094 0.091
0.582 0.298
21.259 7.710 3.956
0.211 0.000 0.000
2 (Constant) E-service quality (X1)
E-wom (X2) E-satisfaction (M) Dependent variable: e-loyalty (Y)
20.230 0.278 0.159 0.614
0.122 0.033 0.031 0.033
0.298 0.170 0.684
21.886 8.354 5.065 18.879
0.063 0.000 0.000 0.000
6 Original Research Article
E-ISSN: 2469-4339 merj.scholasticahq.com
the Z count of 7.138 is greater than 1.96, H1 is accepted, which means e-satisfaction is a variable that mediates the effect of e-service quality on e-loyalty. These results indicate that it is important to pay attention to customer satisfaction to create customer loyalty through quality online services to online marketplace customers in Denpasar. (vii) Hypothesis 7 testing uses the Sobel test by calculating the value of Z count as follows: =
+ = 2.174
2 2 2 2
Z ab
b sa a sb . Because the Z count of 2.174 is greater than 1.96, H1 is accepted, which means e-satisfaction is a variable that mediates the effect of e-wom on e-loyalty. These results indicate that it is important to pay attention to customer satisfaction to create customer loyalty with online word-of-mouth efforts on online marketplace customers in Denpasar City.
5. CONCLUSIONS
The conclusion of this study is based on the results of data analysis, and the discussion that has been car- ried out can be stated as follows: (i) E-service quality has a positive and significant effect on e-satisfaction, thus the more the quality of online services increases, the more online customer satisfaction increases. (ii) E-wom has a positive and significant effect on e-satisfaction, so the more word-of-mouth online increases, the more online consumer satisfaction increases. (iii) E-service quality has a positive and significant effect on e-loyalty, so the more the quality of online services increases the more online consumer loyalty increases.
(iv) E-wom has a positive and significant effect on e-loyalty, so the more word-of-mouth online increases, the more online consumer loyalty increases. (v) E-satisfaction has a positive and significant effect on e-loyalty, so the more increased online consumer satisfaction, the higher the online consumer loyalty.
(vi) E-satisfaction significantly mediates the effect of e-service quality on e-loyalty. This shows the impor- tance of the role of customer satisfaction on service quality will have an impact on the loyalty of online marketplace customers in the city of Denpasar. (vii) Finally, this study concludes that E-satisfaction signifi- cantly mediates the effect of e-wom on e-loyalty. These results indicate that the important role of customer satisfaction in word of mouth will affect the loyalty of online marketplace customers in the city of Denpasar.
Acknowledgment
No financial or material support.
Author Contributions
All authors contributed equally to this study.
Conflict of Interest None.
References
Abdullah SO, Chowdhury IA, Omar AR, Osman LH (2015). Key drivers of customer loyalty in online banking. Annals of Management Science 4 (1): 89-110.
Andreas J (2012). The effect of brand credibility on word of mouth through customer satisfaction & customer loyalty.
Journal of Widya Mandala Catholic University in Surabaya 11 (4): 1-8.
Ario AA, Djatmiko T (2016). Effect of E-service Quality on E-customer Satisfaction and E-customer Loyalty on Lazada.
co.id. Telecommunications and Informatics Business Management Study Program, Faculty of Economics and Busi- ness, Telkom University: Bandung, West Java, Indonesia.
Chen JV, Chen Y, Capistrano EPS (2013). Process quality and collaboration quality on B2B e-commerce. Industrial Man- agement & Data Systems 113 (6): 908-926.
Hur Y, Ko Yong Jae, Valacich J (2011). A structural model of the relationships between sport website quality, e-satisfaction, and e-loyalty. Journal of Sport Management 25: 458-473.
Laudon KC, Traver CG (2012). E-Commerce, Business Technology Society. Addison Wesley: Boston, MA.
Management and Economics Research Journal 7
Vol. 6, Iss./Yr. 2020, Pgs. 7 https://doi.org/10.18639/MERJ.2020.961742 Li H, Liu Y, Suomi R (2009). Measurement of e-service quality: an empirical study on online travel services. 17th Euro- pean Conference on Information System Journal. https://pdfs.semanticscholar.org/1a33/23a0867a65fa5ff23c380be8 2f9eb087dff3.pdf [20th January 2020].
Lu LC, Chang HH, Yu ST (2013). Online shoppers ‘perceptions of e-retailers’ ethics, cultural orientation, and loyalty: an exploratory study in Taiwan. Internet Research 23 (1): 47-68.
Preacher KJ, Hayes AF (2004). SPSS and SAS procedures for estimating indirect effects in simple mediation models.
Behavior Research Methods, Instruments & Computer 36 (4): 717-731.
Ristina DA, Rusfian E (2013). The effect of e-service quality on repurchase intention through customer satisfaction. http://
lib.ui.ac.id/naskahringkas/2015-09/S-Ristina%20Dian%20Astuti. Accessed 21 January 2017 at 23.44 Wita.
Sugiyono (2014). Understanding Business Research (Quantitative, Qualitative and R&D Approaches). Alfabeta: Bandung.
Suyana U (2016). Textbook, Quantitative Analysis Application. Main Literature: Denpasar.
Yen YS (2010). Can perceived risks affect the relationship of switching costs and customer loyalty in e-commerce? Inter- net Research 20 (2): 210-224.
Zeithaml VA (2000). Service quality, profitability, and the economic worth of customers: what we know and what we need to learn. Journal of the Academy of Marketing Science 18 (6): 67-85.
