maintain by every e-commerce company in global market that full of competition. Customer satisfaction and ...... Tjiptono, F. 2000. Manajemen Pemasaran Jasa.
The Influence of Information, System Quality, and Service Quality on Customer Satisfaction and Loyalty in Online Shopping (Study on online shopping Customer in Forum Jual Beli/FJB Kaskus.us Malang Region) Wheny Khristianto *1 , Imam Suyadi 2 , Kertahadi 2 Business Adminstration Department, FISIP, Lampung University, Indonesia 2 Business Administration Department, Brawijaya University, Indonesia ----------------------------------------------------------------------------------------------------------ABSTRACT Most business try their best to continually satisfy their customer, because customer satisfaction seems to be an important barometer of customer’s intentions and has been regarded as an important antecedent of loyalty.The exponential increases in online shopping and the rapid growth in the number of retailers selling online cause customer satisfaction and loyalty become main focus, because they are difficult to be predicted. Relationship between buyer and seller only through a website as a media which supp ort online business. In recent electronic commerce research, the measures of information quality, system quality, service quality, customer satisfaction and loyalty are important to know website’s performance. The purpose of this research are to know and to analyze: 1) information quality influence on customer satisfaction in online shopping, 2) system quality influence on customer satisfaction in online shopping, 3) service quality influence on customer satisfaction in online shopping, 4) customer satis faction influence on customer loyalty in online shopping, and 5) service quality influence on customer loyalty in online shopping. A set of empirical data including 82 questionnaires were collected from online shopping customer in Malang who use FJB Kaskus.us as online shopping media and to test estimates in the research model. The finding of this research indicate that information quality, service quality were found influence and significant on customer satisfaction, customer satisfaction and service qual ity were found influence and significant on customer loyalty, but system quality was not significant on customer satisfaction. KEYWORDS: information quality, system quality, service quality, customer satisfaction, customer loyalty, online shopping. 1
INTRODUCTION Customer satisfaction and loyalty are elements that determine the successful of market concept implementation. In bisnis, customer satisfaction is essential. It is a strong media to predict customer retention, customer loyalty and product repurcha se (Smith and Albaum, 2010). A simple logic derived from businessman is when customer feels satisfied; there must be something better come for future business (Irawan, 2003). Customer satisfaction occurs as customer expectation can be met by the service gi ver. According to Anderson and Lehman (1994), high performance service is the one that can satisfy the customer need or may exceed their expectation in short. In other words, this satisfaction occurs when expectation equals to delivery or the fact received by customer. Customer satisfaction is created originally from detail, something routine and is started far before good and service produced. It is appropriate with survey result of Temporal & Trout (TARP) in 2001 that exposure some causes of why company loses its market. Those causes are: customer move to other place or die (4%), customer shift to competitor brand (5%), customer search for more competitive price (9%), poor handling of complain (68%) (Poeradisastra, 2010). Those data indicate that actually customers are not easily persuaded and not too emphasize on the price, they rather need good attention.
Through online business, individual may see favorable good or service product first through website used by the seller as promotion media. These met hods also make the customer smarter since they have more information about the product and more alternative places to buy such product. Customer satisfaction and loyalty is a very expensive thing to maintain by every e-commerce company in global market that full of competition. Customer satisfaction and loyalty concept in online business become a hot issue discussed in electronic bases business. Different from customer satisfaction and loyalty concept of tradisional business that has examined and discussed clearly and broadly, customer satisfaction and loyalty concept within e -commerce is still in early stage of research (Swaid and Wigand, 2007). In Indonesia, e-commerce transaction value is still less than US$ 20 millions in 1996 up to 1999. However in 2009, e-commerce achievement is really uplifting. It is revealed by Sharing Vision Telemathic Research Institution in 2010, that e-commerce transaction value in Indonesia has reached Rp. 35 trillion, or equals to US$ 3.4 billions (http: www.detik.com/, accessed in December 11 th 2010). Based on The Economist report in early 2011, Indonesia is the biggest global network market, with internet business condition undergoes more rapid development compared to 4 year before beca use of mobile internet, laptop, and tablet computer (Kompas, June 17 th 2011). Basically, online customer has high satisfaction, it is proved by research finding released by Direct Newsletter in 2002 that 80% online customer has high satisfaction and aim to repurchase within 2 months, 90% online customer will recommend the cite where they buy product or service to others (Diana, 2009). Other evidence is research finding done by Communication and Information Ministry in 2011 towards 1280 e -commerce companies in various big cities in Indonesia also indicate that 7% respondent feel very satisfied when doing shopping via internet, 44% respondent feel satisfied, 46% respondent feel so so, and only 3% responden state their dissatisfaction (Kompas, June 17 th 2011). However, attracting customer attention in internet and give satisfaction and create loyalty to customer are not easy job. A portal that provide online shopping facility needs creativity, intelligence, a lot of time and energy in order to compete with ten, hundreds even thousands of other virtual shop or online shop in internet (Rizka, 2010). Portal online shopping is not only rely on service quality since the customer also need any matters cause their satisfaction (Kuo, 2005), such as information and syste m quality in online shopping. METHODS This study uses survey method. The research population is online shopping customers in FJB Kaskus within Malang region, which are active and frequently do online shopping in FJB Kaskus. Sample collection technique in this study is systematic random sampling with total of 82 respondents participated in this study. Data collection relied on questionnaire given to respondents. Measuring scale used in questionnaire is semantic differential scale and Partial Least Square (PLS)-based SEM analysis of variance for data analysis. RESULT AND DISCUSSION Evaluation of Construct Measurement Model This measurement model specifies the relationship between latent variable with indicator or manifest variable. PLS employs principle component analysis method in analyzing construct measurement model. This method is one of methods within confirmatory factor analysis (CFA), namely factor analysis technique used to measure factor quantity and loading variable score. Loading factor score is described at Table 1 follow. 1.
Tabel 1. Loading Factor Original Sample (O) X 1.1 X 1.2 X 1.3 X 1.4 X 1.5 X 1.6 X 1.7 X 1.8 X 1.9 X 2.1 X 2.2 X 2.3 X 2.4 X 2.5 X 2.6 X 2.7 X 2.8 X 2.9 X 2.10 X 2.11 X 2.12 X 3.1 X 3.2 X 3.3 X 3.4 X 3.5 X 3.6 X 3.7 X 3.8 X 3.9 Y 1.1 Y 1.2 Y 1.3 Y 2.1 Y 2.2 Y 2.3
0,783 0,759 0,738 0,680 0,751 0,782 0,619 0,687 0,699 0,768 0,670 0,763 0,718 0,777 0,608 0,731 0,689 0,681 0,715 0,623 0,722 0,801 0,830 0,808 0,727 0,761 0,804 0,779 0,632 0,657 0,842 0,892 0,843 0,817 0,855 0,920
Sample Mean (M) 0.775 0.749 0.739 0.685 0.752 0.785 0.614 0.682 0.699 0.759 0.667 0.763 0.709 0.774 0.805 0.726 0.687 0.633 0.705 0.626 0.719 0.792 0.817 0.804 0.724 0.763 0.802 0.766 0.633 0.667 0.847 0.892 0.843 0.818 0.853 0.918
Standard Deviation (STDEV) 0.054 0.049 0.058 0.062 0.049 0.037 0.067 0.076 0.064 0.063 0.078 0.044 0.051 0.039 0.036 0.054 0.055 0.062 0.063 0.062 0.055 0.045 0.042 0.043 0.059 0.055 0.031 0.058 0.069 0.063 0.049 0.030 0.041 0.053 0.028 0.017
Standard Error (STERR) 0.054 0.049 0.056 0.062 0.049 0.037 0.067 0.076 0.064 0.063 0.078 0.044 0.051 0.039 0.036 0.054 0.055 0.062 0.063 0.062 0.055 0.047 0.042 0.043 0.059 0.055 0.031 0.058 0.069 0.063 0.049 0.030 0.041 0.053 0.028 0.017
T Statistics (|O/STERR|) 14.438 15.209 12.819 11.027 15.367 21.045 9.253 9.0814 10.991 12.209 8.571 17.479 14.046 19.436 22.468 13.583 12.542 10.209 11.326 10.011 13.172 17.152 19.731 19.001 12.321 13.895 25.982 13.391 9.159 10.427 17.336 29.496 20.496 15.392 30.237 55.534
Source : Research Data Processed, 2011.
(i) Convergent Validity Convergent validity test in PLS with reflective indicator is assessed based on loading factor (between item score/component score correlation with construct or variable score) that measure the construct or variable. Informati on quality variable (consist of item X1.1, X1.2,…, X1.9), System quality variable (consist of item X2.1, X2.2,…, X2.12), Service quality variable (consist of item X3.1, X3.2,…X3.9), customer satisfaction variable (consist of Y1.1, Y1.2, Y1.3) and customer loyalty variable (consist of item Y2.1, Y2.1, Y2.3) in table 16 indicates that loading facto r score for each item is > 0.6 with t statistic > t table
(1.99). It indicates that all items in information quality used in the research is valid and has fulfilled convergent validity.
(ii) Discriminant validity Discriminant validity from measurement model with reflective indicator is assessed based on cross loading measurement with construct. Cross loading is worth to assess whether construct has sufficient discriminant validity, namely by comparing indicator correlation of a variable with correlation of that indicator with other variable. Information Quality 0.783 0.759 0.738 0.679 0.751 0.782 0.619 0.687 0.699 0.567 0.496 0.594 0.623 0.485 0.611 0.485 0.488 0.405 0.489 0.339 0.414 0.396 0.378 0.358 0.435 0.368 0.585 0.365 0.437 0.617 0.539 0.578 0.475 0.497 0.538 0,545
Tabel 2. Cross Loading Sistem Service Quality Quality 0.529 0.448 0.522 0.414 0.531 0.428 0.446 0.414 0.451 0.275 0.519 0.523 0.454 0.414 0.513 0.431 0.584 0.517 0.768 0.573 0.768 0.573 0.763 0.606 0.718 0.516 0.777 0.658 0.808 0.595 0.731 0.525 0.689 0.510 0.631 0.445 0.715 0.649 0.623 0.603 0.722 0.700 0.637 0.801 0.639 0.830 0.586 0.808 0.596 0.727 0.581 0.761 0.656 0.804 0.561 0.779 0.482 0.632 0.612 0.657 0.641 0.643 0.557 0.611 0.430 0.499 0.547 0.504 0.591 0.542 0,624 0,544
X1.1 X1.2 X1.3 X1.4 X1.5 X1.6 X1.7 X1.8 X1.9 X2.1 X2.2 X2.3 X2.4 X2.5 X2.6 X2.7 X2.8 X2.9 X2.10 X2.11 X2.12 X1.1 X1.2 X1.3 X1.4 X1.5 X1.6 X1.7 X1.8 X1.9 Y1.1 Y1.2 Y1.3 Y2.1 Y2.2 Y2.3 Source : Research Data Processed, 2011.
Customer Satisfaction 0.459 0.524 0.418 0.494 0.393 0.571 0.267 0.366 0.429 0.474 0,474 0.554 0.443 0.512 0.495 0.467 0.334 0.363 0.415 0.464 0.470 0.472 0.461 0.459 0.597 0.568 0.582 0.416 0.525 0.484 0.842 0.892 0.843 0.614 0.605 0,678
Customer Loyalty 0.431 0.557 0.369 0.412 0.509 0.496 0.302 0.373 0.456 0.540 0,540 0.528 0.513 0.553 0.458 0.487 0.494 0.411 0.457 0.497 0.482 0.349 0.346 0.409 0.409 0.514 0.612 0.303 0.457 0.610 0.633 0.660 0.588 0.817 0.854 0,918
From Tabel 2 above, it is suggested that for item X1..X1.9 has higher correlation value compared with correlation value of items at other variables. Correlation value at
X2.1..X2.12 has higher value compared with correlation value of items at other variables. Item X3.1...X3.9 has also gain higher correlation value compared with correlation value of items at other variables, item Y1.1...Y1.3 has higher correlation value compared with correlation value of items at other variables, and Y2.1..Y2.3 has also higher correlation value compared with correlation value of items at other variables. These results indicated that latent variables have predicted indicators at its own block better than indicator to other blocks. Based on this analysis, it could be interpreted that those items has meet discriminant validity and therefore asserted as valid. (iii) Composite Reliability Subsequent testing is reliability testing. Reliability variable measured by using composite reliability, where variable would be said reliable if it have composite reliability > 0,7. Composite reliability value of this study is shown in Table 3 as follows. Tabel 3. Composite Reliability Variable Information Quality Sistem Quality Service Quality Customer Satisfaction Customer Loyalty
Composite Reliability 0,908 0,928 0,924 0.894 0.899
Source: Ouput SmartPLS Output of SmartPLS at Table 3 above has shown that overall variables has composite reliability > 0,7. Based on the data above, it is proved that all variable used in this study is reliable. 2.
Structural Model Evaluation Structural model was tested by looking at the explained variance percentage that is by looking at R-square of latent dependent variable and by using Stone-Geisses Q-square test measures for predictive relevance and goodness of fit (GoF). Result of R-square value could be seen from Table 4 below. Tabel 4. R-Square Variable R-Square Customer Satisfaction 0.540 Customer Loyalty 0,559
Source: Output SmartPLS At Table 4 it is known that R-square at customer satisfaction variable is 0,540. This is showing that information quality, system quality and service quality variables has contributed to customer satisfaction variable accounted for 54% while the remaining 46 % is contribution from other variables not examined in here. R -square value of customer loyalty variable is 0,559. This is showing that customer satisfaction variable has giving contribution toward customer loyalty variable as 55,9% while the remaining 44, 1% is contribution from service quality variable. (i) Q-Square predictive relevance For testing or measuring value toward predictive relevance is using Q square with mathematical equation as follows:
Q 2 =1 - (1-R 1 2 )(1-R 2 2 )… (1-R p 2 ) In this study, R 1 2 value is R-square value from customer satisfaction variable, while R 2 2 is R-square value from customer loyalty variable. Based on the above equation, Q -square value in this study is: Q 2 =1 - (1-0,540289)(1-0,559232) = 0,797 Q-square value obtained is 0,797 and showing that observation value gained by model and its parameter estimation is moderate, since Q -square value is almost 1. This result could also being interpreted that model has been able to explain about customer loyalty phenomenon for 79,7%, while the rest of it (20,1%) is explained by other variable that didn’t compose the examined model. (ii)
GoF Based on the output obtained using SmartPLS, we could get Communality value, R 2 , with each average as shown in Table 5. Variable
Information Quality System Quality Service Quality Customer Satisfaction Customer Loyalty
Tabel 5. Communality and R-Square Communality Average Value Rof Square Communality 0,523 0,519 0,621 0,575 739 0,540 0,750 0,560
Average Value of R-Square
0,55
Source: Output SmartPLS Table 5 above has described communality average value and R 2 average value. Both numbers could be put into equation with result as follows. GoF =
0,621 x 0,55
GoF =
0,342
GoF = 0,584 According to the calculation above, GoF value is 0,584. This means that model in this study is in accord with index value requirement that is 0 < GoF < 1. 3.
Hypothetical Testing Result Hypothetical testing was conducted by using Bootstrapping method developed by Geisser & Stone. Bootstrap is a re-sampling method that gives solution toward study with small sample amount. Statistical testing was done by comparing t -statistic with t-table value of 1,99 (significance at 0,05). Relationship between variable would be significant if t-statistic > t-table value therefore subsequent analysis could be done. This method determination has allowed free distributed data, thus it would not needed normal distribution assumption. Bootstrapping result after the use of SmartPLS software (see appendices) has showed coefficient result of each lane with cross loading value and R-square value for each item. For coefficient value of each lane is presented in Table 6 follow.
Tabel 6. Path Coefficients (Mean, STDEV, T-Values) Original Standard Standard Sample Sample Deviation Error Mean (M) (O) (STDEV) (STERR) Information Quality 0,306 0,315 0,110 0,110 Customer Satisfaction System Quality 0,069 0,096 0,166 0,166 Customer Satisfaction Service Quality 0,447 0,423 0,129 0,129 Customer Satisfaction Customer Satisfaction 0,588 0,577 0,104 0,104 Customer Loyalty Service Quality 0,211 0,220 0,091 0,091 Customer Loyalty Source: output SmartPLS, 2011
T Statistic (|O/STERR|) 2,775 0,416 3,481 5,629 2,309
Based on the Table 6 above, interpretation from hypothetical testing result toward five variables in this study is described as follows: Based on the Table 6 above, interpretation from hypothetical testing result toward five variables in this study is described as follows: a. First hypothesis: information quality has effect toward customer satisfaction. Calculation result has showed that path coefficient value of 0,306 and t-statistic > t-table value (2,775 > 1,99). This showed that information quality has significant effect toward customer satisfaction. Relationship between both variable is uni -directive that means higher information quality would brought higher customer satisfaction in doing online shopping. According to this result, hypothesis that suggests information quality has effect toward customer satisfaction in doing online shopping is therefore accepted. b. Second hypothesis: system quality has effect toward customer satisfaction. Result of calculation has showed that path coefficient value is 0,069 and t-statistic < t-table (0,416 < 1,99). This is showing that system quality has insignificant effect toward customer satisfaction. Relationship between both of this variable is uni -directive that means higher system quality would bring higher customer satisfaction in conducting online shopping. According to this result, thus hypothesis that said system quality has effect toward customer satisfaction in doing online shopping is accepted. c. Third hypothesis: service quality has effect toward customer satisfaction. Calculation result has showed that path coefficient value is 0,447 and t-statistic > ttable (3,481 > 1,99). This is showing that service quality has significant effect toward customer satisfaction. Both variable relationships are uni -directive that means higher service quality would bring higher customer satisfaction in conducting online shopping. Based on this result, this hypothesis that said service quality has effect toward customer satisfaction in doing online shopping is accepted. d. Fourth hypothesis: customer satisfaction has effect to ward customer loyalty. Result of calculation has showed that path coefficient value is 0,588 and t -statistic > t-table (5,629 > 1,99). This is showing that customer satisfaction has significant effect toward customer loyalty. Relationship between both of this variable is uni-directive that means higher customer satisfaction would bring higher customer loyalty in conducting online shopping. Based on this result, hypothesis that said customer satisfaction has effect toward customer loyalty in conducting online shopping is accepted. e. Fifth hypothesis: service quality has effect toward customer loyalty. Calculation has showed that path coefficient value is 0,211 and t-statistic > t-table (2,309 > 1,99). This showed that service quality has significant effect t oward customer
loyalty. Relationship between both variables is uni -directive that means higher service quality would bring higher customer loyalty in conducting online shopping. Based on this result, hypothesis that said service quality has effect toward customer loyalty in conducting online shopping is accepted. Interpretation description of hypothetical test results abov e could be summed up in Table 7 and describe graphically in Figure 2.
Hypothesis 1 2 3 4 5
Tabel 7. Summary of Hypothetical Testing Result Varible Influence Result Ho Information Quality Significant Not accepted Customer Satisfaction System Quality Not Significant Accepted Customer Satisfaction Service Quality Significant Not accepted Customer Satisfaction Customer Satisfaction Significant Not accepted Customer Loyalty Service Quality Significant Not accepted Customer Loyalty
DISCUSSION More detailed discussion from hypothesis obtained in this study might be explained as follows. 1.
Effect of Information Quality toward Customer Satisfaction Result of our study has showed that information quality provided in FJB Kaskus website has direct, positive and significant effect toward customer satisfaction in conducting online shopping. This finding has supported study conduct by Seddon and Kiew (1994), in which information quality as having positive and significant effect toward satisfaction of customer that use interface-based system. This result also gives support to study conduct by Magerhands (2006), where information qu ality is one of the main antecedent that affecting satisfaction while conducting e-Commerce transaction. Customer satisfaction might be felt by customer conducting online shopping since shopping could be done practically everywhere and anytime, and it ha s lower cost in accessing information (Elliot and Fowell, 2000). Shang et al., (2005) argues that online shopping has give extrinsic advantage toward customer by wider product option, competitive price and easy access on information. This would give advant age and satisfaction for customer that wants to buy product in a quick way (impulsive buyers). Result of study conducted by Yang (2007) is also in accord with this study’s results that is information quality would affects online satisfaction of consumers. Moreover, Yang (2007) explained that when customer is interacting using a portal or a website, customer would emphasize his/her attention toward information quality exist within the portal or website. This is the reason why information quality has major e ffect toward customer satisfaction. For customer or buyers that purchase using online system, information is needed to found out the existence of a product, how much does it cost in the market. More than that, customer could compare product’s price, qualit y and brand from several different places. Result obtained from this study has strengthened assertion by Turban and Gehrke (2000) that for online-base business, information quality within the website could function as customer appeals. This study also strengthened Janda, et al. (2000) and Szymanski and Hise (2000) that said information quality is one of the main factors that affecting customer
satisfaction in shopping using internet -based media. Result of this study has conflicting result with Radityo and Zulaikha (2007) study that concludes information quality has no effect toward user satisfaction. Lohse and Spiller (1999) has contends that there is difference in features delivery of retail shop that has physical nature with online shop. This could cause difference in customer satisfaction. Though online shop has giving information about physical product sold but due to technical limitation such as picture quality, it could not give the same satisfaction with one that obtained if customers seeing the pr oduct in retail shop. However, this study has give evidence that information presentation speed of new products, easiness in accessing information for sold products, accurate price information for sold products, variety of products displayed, description clarity of products offered, regularity of description writing format of displayed products at the website, matching color composition displayed on the website, and appropriate product picture with product description is several things that could create cus tomer satisfaction in conducting online shopping at FJB Kaskus. Based on result in this study, information quality provided at FJB Kaskus website has direct, positive and significant effect, thus, higher information quality at FJB Kaskus website would cause higher customer satisfaction to conduct online shopping in that website. Since its significant effect, information quality variable is one important variable that need to consider by online shopping customer in order to meet his/her satisfaction in conducting online shopping. 2.
Effect of System Quality toward Customer Satisfaction If we were discussing about system quality for electronic based business regarding customer satisfaction, an important aspect in it is customer relation with system that supporting online shopping. Jarvenpaa and Todd (1997) argue that system quality is generally discussing about what felt by consumers while conducting online shopping. Result of this study has showed that system quality positive but insignificant effect tow ard online shopping customer of FJB Kaskus. This finding is not similar with finding from study of Seddon and Kiew (1994), where system quality has positive and significant effect toward satisfaction of interface-based system users. But this finding is quite similar with result of Schaupp et al. (2009) where system quality showed insignificant effect toward satisfaction of e-commerce website users. Other than that, result of this study is quite similar with study conducted by Yang (2007) and Radityo and Zul aikha (2007). Regarded system quality variable that has insignificant effect toward customer satisfaction, Yang (2007) has argued that when customer conduct online shopping transaction, the main concern goes to information quality and service quality gain by customer compared with system quality. This proved that customer is less care about system quality. Reality that technology advance applied to e -commerce portal or websites could reduce hardware and software system cost also increase system quality so that it could be better accessed and making the particular portal or website become faster in delivering response during interaction with customer. However, it, according to Yang (2007), has been perceived differently by online shopping customers, since th ere is tendency of customer to not complicating system quality issue while they were doing online shopping. Reason described by Yang (2007) above is matched with the reality felt by some customer of online shopping at FJB Kaskus as our respondent. Their perception about system quality existed in FJB Kaskus is highly different. When responden have fast internet connection, responden would tend to say that processing online shopping access at FJB Kaskus such as in loading process, data search speed and mov ing process from one page to another page at FJB Kaskus can be categorized as fast or very fast. However, for customers
that have slow internet connection, they would give different answers. Other than that, some respondent feel that they cannot give accur ate assessment toward system quality, since respondent has no standard in determining system quality. Schaupp et al. (2009) also explained why system quality has insignificant effect toward customer satisfaction. This is because, for customer, the import ant things for them are to be able to do transaction and transaction they conduct is succeeded. They do not care about system quality, like easy access in using the system while conducting online shopping through e-commerce. Customer position as user could be the reason why they didn’t care, because basically customer didn’t understand detailed system quality, like type of server used, database capacity available so that there can’t be overload, and others. These kind of things is only known by company, web master or web developer that responsible toward website system performance of online shopping provider. Reason being describe by Schaupp et al. (2009) is in agreement with the existing reality for online shopping respondent at FJB Kaskus. Most of the ti me Kaskus party conduct maintenance toward database system therefore thread or comments that sent by customers regarding bought products were missing. When database overload is occurring at Kaskus, it might lead to missing thread from seller and thus it wo uld need longer time to recovery database and while they were at it, customer cannot found the products or doing transaction. However, those events didn’t make customer stop their preference in conducting online transaction at FJB Kaskus, since for custome rs the most important thing is that they would be able to do online shopping eventually. Other reality felt by online shopping customer at FJB Kaskus, that FJB Kaskus side is not yet fully identified trusted and untrusted seller. Other that still occurri ng at FJB Kaskus is fraud modus. However, with system quality condition and existing events that occurs at FJB Kaskus has insignificant effect for customer to keep doing online shopping at FJB Kaskus. Based on this finding it means that for respondent of online shopping customer at FJB Kaskus, system quality variable owned by FJB Kaskus is not an important variable for creating customer satisfaction. Different result with prior study was possible by the existence of different view toward system quality. A t developed countries with higher competition of online shopping facility offered by various vendor or portals, it have made customer become more sensitive toward system quality given by particular e -commerce company. However, for customers in developing c ountries and underdeveloped countries, issue of system quality is not yet a sensitive issue. Other than that, it is highly possible for online shopping customer at FJB Kaskus to not paying attention toward system quality since there are other thing that functions as appeals for Kaskus.us website generally, that is as the biggest online community media in Indonesia that offers several sub forums other FJB and various features within it. 3.
Effects of Service Quality toward Customer Satisfaction Result of this study showed that service quality offers at FJB Kaskus website has positive and significant effects toward customer satisfaction in doing online shopping. This finding is supporting study conduct by Yang (2007), where service quality has positive and significant effect toward online shopping customer satisfaction. In fact, service quality has become one aspects that being centre of attention while doing online shopping. Other study supporting this finding is one that conducts by de Oliveira (2007). Aberg and Shahmehri (2000) have argued that sustainable improvement regarding offered service by e-commerce web would bring high effect at customer satisfaction level. Result gained in this study has also strengthen facts that said by Mappatompo (2005) that service quality has close relationship with customer satisfaction, since service quality gives encouragement for customer to get a real and strong relationship with the
company in order to understanding customer’s expectation. This is in accord with theor y said by Wyckok in Lovelock (1988) in Tjiptono (2000) that service quality is superiority degree expected and control toward that superiority in meeting customer’s demand. This result also gives support toward theory said by Zeithaml et al. (1990), that c ustomer satisfaction is customer perception from service experience given. Based on this finding and the above explanation, it brought the means that higher quality of service at FJB Kaskus website would create higher customer satisfaction to do online shopping at the website. Since its significant effect, therefore service quality variable has become an important variable to consider by online shopping customer to meet his/her need in doing online shopping. 4.
Effects of Customer Satisfaction toward Customer Loyalty Result of this study has showed finding that customer satisfaction has direct and significant effect toward customer loyalty in doing online shopping at FJB Kaskus. This finding is supporting Magerhands’s study (2006), where there is relati onship between service qualities with customer loyalty in online shopping. Other study that gives support toward this result is study conducted by Yang (2007). Result of this study also gives support to Siat opinion (1997) in Harun that said loyal customer is satisfied customer. Finding in this study also strengthened Selnes ’s argument (1993) that customer loyalty is a function of customer satisfaction, where satisfied customer would come and tell others about the service he/she received. Satisfaction felt by customer could create customer loyalty. This support Jonas and Sasser (1995) that customer loyalty is an endogen variable caused by satisfaction. Similarity of result with prior study conducted by Magerhands (2006) and Yang (2007) means that customer satisfaction variable is highly considered variable for online shopping customer at FJB Kaskus in creating loyal attitude for online shopping activities within the website. Higher satisfaction own by FJB Kaskus online shopping customer means greater customer loyalty in doing online shopping at FJB Kaskus. 5.
Effects of Service Quality toward Customer Loyalty In this study we found that service quality has positive and significant effect toward customer loyalty in doing online shopping. This result is in a ccord with prior study conducted by Gefen (2000) that is for online -based environment, though there is no direct human service provider, service quality has considerable effect in creating customer loyalty. Prior results from empirical study by de Oliviera (2007) are also in accord with result of this study. De Oliviera (2007) found a strong relationship between service qualities with customer loyalty in electronic -based service. Based on the above results, it is could be said that higher service quality in FJB Kaskus would bring higher customer loyalty in doing online shopping at FJB Kaskus. Since its significant effect, therefore service quality variable has become an important variable to consider by respondent in improving loyalty of online shopping at FJB Kaskus. Generally, service quality would create customer loyalty (Gefen, 2000). But according to de Oliviera (2007), specific for electronic-based services, it would need harder efforts to create customer loyalty compared with traditional service qual ity. CONCLUSION Based on hypothetical testing, analysis result and result discussion, conclusion of this study might be summed as follows: 1. There is direct and significant effect between information quality toward customer satisfaction in doing online shopping at FJB Kaskus. This has proved that online shopping customer at FJB Kaskus with different education background, with age
2.
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4.
5.
ranging from 20-30 year would bring focus or his/her attention toward information quality exist in FJB Kaskus website. This is sh own with positive answers of respondent. Online shopping customer condition that already accustomed in using internet with many purposes could make them understand which information is effective, interesting, accurate and which is not within context of hum an computer interface, particularly when doing online shopping. There is indirect and insignificant effect between system quality with customer satisfaction in doing online shopping at FJB Kaskus. This is an interesting matter to review, since though respondent has already accustomed in doing interaction with computer, doing online shopping has not making system quality become a variable that need to consider. Although in reality most respondent would give positive answers, but when they were doing online shopping there is tendency not to care about system quality of FJB Kaskus. Another thing that might be the cause of system quality ignorance is respondent position as user, as online shopping customer, and not as one that understand about system such as w eb developer and web programmer. Other than that, responden characteristic that bear different background is saying that it is possible if there is only a few of them that do pay attention and understand about system quality when they do online shopping. There is direct and significant effect between service quality with customer satisfaction in doing online shopping at FJB Kaskus. Service quality existence in online shopping context has become something that should be considered by customer. This is reflected from respondent customer that tends to give positive assessment. Though service existence at FJB Kaskus is mostly intangible, its existence has direct effect toward customer satisfaction while doing online shopping. There is direct and significant effect of customer satisfaction variable toward customer loyalty in doing online shopping at FJB Kaskus. This showed that online shopping customer satisfaction at FJB Kaskus has impact toward hope fulfillment, needs fulfillment and belief that doing online shopping at FJB Kaskus is the right option to do. The next stage, the impact would make customer have interest in recommend FJB Kaskus to other people, has interest in re -buying and loyal to do online shopping at FJB Kaskus. This is proved by positive ten dency of respondent’s answers. There is direct and significant effect between service quality with customer loyalty in doing online shopping at FJB Kaskus. The existence of intangible human service provider was replaced by electronic based service which i s not face-to-face in nature, but through website media, does not make service quality not needed. Based on positive tendency of respondent’s answers, it could be seen that qualified service is highly needed because when customer is doing online shopping, they would be at blind condition in not knowing with who they were doing transaction with, didn’t know about threat regarding confidentiality and actual transaction that was conducted also minimum direct attention. When customer was doing online shopping and found a qualified service, this would bring impact toward creation of customer loyalty in doing online shopping through the related website or portal.
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Appendix
X 1.
X 1.
X 2. 1 X 2. 2
11,7 40 11,1 49 10,284
12,2 61
X 2. 3 X 2. 4 X 2. 5 X 2. 6 X 2. 7 X 2. 8 X 2. 9 X 2. 1 0
X 1.
X 1.
X 1.
14,24 3 11,88 0 10,10 8 10,10 8 8,08 7 10,82 9
X 1.
10,0 9,92 18,9 13,0 97 9,34 21 6 09 1
Information Quality
17,53 4 10,547
X 1.
System Quality
2,77 5
0,416
3,48 1
X 1.
X 1.
7,63 9
10,3 25
Y 1.
Y 1.
18,596 16,46 5 32,24 0
Customer Satisfaction
2,30 9
Service Quality
9,49 X 2. 1 1 0 10,830 X 2. 1 2 15,08 6 X 3.
19,045 X 3.
Y 1.
11,74 19,48110,94 0 24,033 13,77 8,33 10,26 5 5 7 7 X 3. X 3. X 3. X 3. X 3. X 3. X 3.
5,629
Customer Loyalty
17,45 9 Y 2.
29,902 51,18 8 Y 2. Y 2.
