Factors Affecting Online Purchase Decision, Customer Satisfaction, and Brand Loyalty: An Empirical Study from Indonesia’s Biggest E-Commerce

Nico Hartanto*, La Mani, Mustika Jati, Ruth Josephine, Z. Hidayat

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

Purpose: The development of online shopping trends in Indonesia is increasing, and Tokopedia is becoming one of the most popular e-commerce websites. The purpose of this study is to obtain empirical evidence whether mobile shopping, customer review, perceived credibility, and Korean celebrity endorsement affect online purchase decision, whether online purchase decision affects customer satisfaction, and whether customer satisfaction affects brand loyalty of customers in Tokopedia e-commerce. Research Design, data and methodology: Quantitative survey with data was collected using an online questionnaire with sample characteristics were Tokopedia customers who lived in Jakarta by 385 samples using the purposive sampling method, and data analysis was conducted using the Smartpls application program version 3.0. Results: Mobile shopping, customer review, and perceived credibility had positive effects on online purchase decision at Tokopedia in Jakarta. However, Korean celebrity endorsement did not have a positive effect on online purchase decision at Tokopedia in Jakarta. Furthermore, online purchase decision had a positive effect on customer satisfaction at Tokopedia in Jakarta, and customer satisfaction had a positive effect on brand loyalty at Tokopedia in Jakarta. Conclusions: This study proposes significant implications for maintaining customer relationships to achieve purchasing decision, customer satisfaction, and brand loyalty in the e-commerce industry.

Original languageEnglish
Pages (from-to)33-45
Number of pages13
JournalJournal of Distribution Science
Volume20
Issue number11
DOIs
Publication statusPublished - 2022
Externally publishedYes

Keywords

  • Brand loyalty
  • Customer satisfaction
  • Empirical study
  • Online purchase decision

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