The Effect of Trust and Satisfaction on Customer Loyalty in Online Shop: Case of C2C E-Commerce in Indonesia

Abstract

The purpose of this study is to identify user interface quality, information quality, perceived security, perceived privacy, and online customer review as a factor affecting customer trust and customer satisfaction in online business, especially in C2C e-commerce platform in Indonesia. This study also analyzes the effect of customer trust and customer satisfaction as key factors influencing customer loyalty. A quantitative approach has been employed. The data collection using online questionnaire in 206 respondents and measurement using Likert scale. For the purpose of data analysis, Partial Square Structural Equation Modeling (PLS-SEM) has been adopted. This study found that user interface quality and information quality have positive effect on customer trust and customer satisfaction. This study also found that customer satisfaction influencing customer loyalty significantly in Shopee. This study suggests that Shopee as an e-commerce in Indonesia must focus on their customer trust and customer satisfaction strategies by increasing the quality of user interface quality and information quality to maintain the loyalty of their customers. Keywords: Shopee, E-Commerce, Customer Loyalty, Online Customer Review.