Improving the Satisfaction and Loyalty of Online Shopping Customers Based on E-Commerce Innovation and E-Service Quality

Abstract

The purpose of this study is to develop new knowledge related to innovations in e-commerce, which we call e-commerce innovation, and how this affects customers’ satisfaction and loyalty, along with the e-service quality, in the context of an online shop in Indonesia. Several measurement items of e-commerce innovation were adopted and modified from the existing lit-erature. To answer how this affected the customers’ satisfaction and loyalty, partial least squares structural equation modeling was used to analyze the data from 400 respondents. Empirical test results found that e-commerce innovation and e-service quality can increase customers’ satisfaction and loyalty, respectively. It is also known that in the context of online shopping customers in Indonesia, it is easier to generate customers’ satisfaction than customers’ loyalty. This study contributes to the novelty related to e-commerce innovation, which focuses on innovation of the application or website, not of the company as a whole.