Model Bisnis

MENGKATEGORIKAN INDEKS, REVIEW DAN SIMPULAN DARI
JURNAL INTERNASIONAL BERINDEKS SINTA 3
UTS
Dosen pengampu: Afrila Mulyati Siregar S,AB, M,AB
Disusun oleh
Tunggul Immanuel Pasaribu
(220907108)
CROWNFUNDING AND SATISFACTION
NO Judul jurnal Indeks/ H

Sinta indeks
1 The role of E-Satisfaction On 2 17

Repurchase and E-Wom Intention
On The Customers Of Food
Products By Local Micro And
Small Businesses On The Digital
Platforms
2 The Influence of Customer 2 15
Relationship Management and
Customer Experience on Customer
Satisfaction
3 The Influence of Brand Equity on 3 5
Brand Loyalty of Adidas Shoes
Mediated by Customer Satisfaction
4 The Influence of Brand Trust and 3 17
Satisfaction towards Consumer
Loyalty of a Local Cosmetic
Products Brand X among
Generation Z
5 Millennials’ Intention to Invest 3 24
through Securities Crowdfunding
Platform
REVIEW JURNAL 1
Judul The role of E-Satisfaction On Repurchase and E-Wom Intention On
The Customers Of Food Products By Local Micro And Small
Businesses On The Digital Platforms
Nama jurnal INDONESIAN JOURNAL OF BUSINESS AND
ENTREPRENEURSHIP (IJBE)
Volume& Halaman Volume 9 no 1

Tahun 2023
Penulis Enrico Verrell Santoso & Retno Ardianti
Reviewer Tunggul Immanuel Pasaribu
Tanggal 20 oktober 2023
Tujuan penelitian Tujuan dari penelitian jurnal ini adalah untuk menguji peran food quality
, price fairness dan perceived value e satisfaction dan selanjutnya
terhadap repurchase dan E – WOM intention pada pelanggan usaha
mikro dan kecil lokal di kota pekalongan, Indonesia yang terdapat pada
aplikasi food delivery services
Subjek penelitian Pelanggan usaha mikro dan kecil di kota pekalongan, Indonesia yang
menggunakan layanan pengiriman makanan online melalui aplikasi
seperti Go Food, Grab Food dan Shoppe food
Asesmen data Asesmen data dilakukan dengan metode Partial Least Square (PLS)
sebagai teknik data. Data dikumpulkan melalui koesioner online yang
disebar melalui media sosial dan aplikasi chat seperti Line dan Whatsapp.
Dari total 140 tanggapan yang diterima hanya 100 tanggapan yang
digunakan dalam analisis data karena sesuai dengan criteria yang
ditentukan
Metode penelitian Metode penelitian yang digunakan adalah Partial Least Square (PLS)
sebagai teknik analisis data. Data dikumpulkan melalui koesioner online
yang disebar melalui media sosial dan aplikasi chat seperti Line dan
Whatsapp, sampel penelitian diambil dari pelanggan usaha mikro dan
kecil di kota Pekalongan, Indonesia yang menggunakan layanan
pengiriman makanan online, melalui aplikasi Go food, Grab food dan
Shopee food. Metode pengambilan sampel yang digunakan adalah
convenience sampling. Data yang diperoleh kemudian di analisis
menggunakan perangkat lunak SmartPLS3
Hasil penelitian Hasil penelitian menunjukkan kualitas makanan dan keadilan harga
memiliki pengaruh positif dan signifikan terhadap niat pembelian ulang.
Namun kepuasan elektronik tidak memiliki pengaruh signifikan terhadap
niat untuk merekomendasikan produk kepada orang lain melalui platform
digital . Dengan demikian, hasil penelitian ini menunjukkan bahwa
kepuasaan terhadap kualitas produk dan keadilan harga mungkin tidak
Cukup untuk mempengaruhi keinginan pelanggan untuk
merekomendasikan produk kepada orang lain melalui platform digital
Kekuatan penelitian menggunakan metode analisis data Partial Least square (PLS) yang dapat
mengatasi masalah multikolinearitas dan ukuran sampel yang relatif kecil.
Selain itu, penelitian ini memberikan kontribusi pada literatur dengan
menunjukkan bahwa kepuasaan pelanggan terhadap kualitas produk dan
fairness atas harga produk tidak cukup untuk meningkatkan kesediaan
pelanggan merekomendasikan produk pada pihak lain di platform digital
Kelemahan kelemahan dari penelitian ini yaitu sampel yang digunakan hanya terdiri
penelitian dari 100 pelanggan usaha mikro dan kecil di Kota Pekalongan, Indonesia
yang terdapat pada aplikasi food delivery services, oleh karena itu, Hasil
penelitian ini mungkin tidak dapat digeneralisasikan pada populasi lain.
Tidak hanya itu, penelitian ini hanya mempertimbangkan faktor-faktor
tertentu yang
Kesimpulan Pada penelitian tersebut kesimpulan yang bisa di ambil adalah pada
platform digital, kepuasan konsumen terhadap kualitas produk dan
fairness atas harga yang mencukupi. Meskipun e - Satisfaction
berdampak pembelian kembali, namun e - satisfaction tidak memberikan
pengaruh yang signifikan terhadap kesediaan pelanggan untuk
merekomendasikan kepada orang lain. Oleh karena itu perusahaan yang
bergerak di industri layanan pesan antar makanan online harus
memperhatikan faktor faktor tersebut untuk meningkatkan kepuasaan
pelanggan dan meningkatkan kemungkinan rujukan ke pihak lainnya
REVIEW JURNAL 2
Judul The Influence of Customer Relationship Management and Customer Experience on
Customer Satisfaction
Nama jurnal INTEGRATED JOURNAL OF BUSINESS AND ECONOMICS
Volume& Volume 7 no 1
Halaman
Tahun 2023
Penulis Suharto Suharto & Yuliansyah Yuliansyah
Tujuan penelitian Penelitian ini bertujuan untuk menguji bagaimana manajemen hubungan
pelanggan dan pengalaman pelanggan mempengaruhi kepuasan pelanggan di
kompleks perbelanjaan di provinsi lampung Data dikumpulkan
menggunakan metode pengambilan sampel non-acak dengan teknik
purposive sampling dan digunakan untuk memenuhi jumlah sampel
sebanyak 135 responden.Validitas, reliabilitas, reliabilitas konstruk, dan
ekstraksi varians digunakan untuk menilai kualitas data Sebelum analisis
data, dilakukan pengujian persyaratan normalitas Liliefors, homogenitas,
linearitas, dan signifikansi regresi. Structural Equation Modeling adalah
persamaan struktural yang digunakan untuk menganalisis model. Temuan
penelitian menunjukkan bahwa terdapat pengaruh positif langsung dari
manajemen hubungan pelanggan terhadap pengalaman pelanggan, hubungan
pelanggan memiliki pengaruh positif langsung terhadap kepuasan
pelanggan, dan pengalaman pelanggan memiliki pengaruh positif langsung
terhadap kepuasan pelanggan.
Subjek penelitian Kompleks ritel di provinsi Lampung
Asesmen data Menggunakan Metode Structural Equation Modelling (SEM) untuk
menganalisis model. Validitas, reliabilitas, reliabilitas konstruk, dan
ekstraksi varian digunakan untuk mengevaluasi kualitas data. Selain itu,
dilakukan uji normalitas, uji homogenitas, uji linearitas, dan uji signifikan
regresi untuk memastikan persyaratan model structural terpenuhi. Hasil
analisis data, menunjukkan bahwa model memiliki kecocokan yang baik
berdasarkan uji chi-square, RMSEA, GFI, CFI, NFI, NNFI, IFI, RFI, DAN
ECVI. Selain itu, dilakukan juga uji koefisien jalur untuk menguji pengaruh
langsung antara variable variable yang diteliti
Metode Metode penelitian yang digunakan adalah metode deksriptif dan kuantitatif
penelitian dengan menggunakan metode survey. Penelitian dilakukan pada responden
di sebuah pusat perbelanjaan ddi provinsi lampung dan menggunakan
sampel sebanyak 135 responden. Pengumpulan data dilakukan
menggunakan non random sampling dengan teknik purposive sampling.
Desain penelitian ini menggunakan instrumen tertutup dan tingkat respons
dihitung dan dikirim langsung kepada responden
Hasil penelitian Hasil penelitian dalam jurnal tersebut menunjukkan bahwa terdapat
pengaruh positif langsung dari customer relationship management dan
customer experience, hubungan pelanggan memiliki pengaruh positif,
langsung terhadap kepuasan pelanggan, dan customer experience memiliki
pengaruh positif langsung terhadap kepuasan pelanggan
Kekuatan 1. Penelitian ini menggunakan metode survei, yang memungkinkan peneliti
penelitian untuk mengumpulkan data secara langsung. dapat memberikan gambaran
yang akurat tentang pengaruh customer relationship dan customer
relationship terhadap kepuasan pelanggan
2. Penelitian ini menggunakan Structural Equation Modelling (SEM) untuk

menganalisi model, dengan menggunakan SEM, peneliti dapat menguji
hubungan langsung customer relationship, customer experience dan
customer satisfaction
3. Pada penelitian ini metode pengambilan sampel purposive sampling juga

digunakan yang memungkinkan peneliti untuk memilih sample berdasarkan
fitur fitur tertentu
Kelemahan 1, Penelitian ini hanya berfokus pada provinsi lampung , sehungga hasilnya
penelitian mungkin tidak dapat diterapakan pada industri ritel di lokasi yang lain
2. Penelitian ini hanya menggunakan metode survei untuk mengumpulkan

data, tanpa melibatkan observasi langsung atau wawancara mendalam
3. Penelitian ini tidak menyertakan variabel variabel lain yang dapat

mempengaruhi kepuasaan langganan yang dapat mempengaruhi kepuasaan
pelanggan seperti kualitas produk atau layanan, harga dan faktor lingkungan
Kesimpulan Kesimpulan pada penelitian ini bahwa customer relationship dan customer
experience memiliki pengaruh positif langsung terhadap kepuasan pelanggan
di kompleks ritel di provinsi lampung. Studi ini menemukan bahwa
peningkatan praktik manajemen yang terkait dengan hubungan pelanggan
dan pengalaman konsumen dapat meningkatkan kepuasan pelanggan.
Penelitian ini juga menunjukkan bahwa sikap dan perilaku pelanggan,
seperti ulasan positif, keinginan untuk merekomendasikan produk dan
layanan, dan loyalitas, dipengaruhi oleh manajemen hubungan pelanggan
yang efektif dan pengalaman pelanggan yang positif. Namun, penelitian ini
mengakui keterbatasannya, seperti teknik pengambilan sampel yang
digunakan dan perlunya penelitian lebih lanjut tentang komunikasi internet
dan sikap dan perilaku karyawan. Secara keseluruhan, penelitian ini
menyoroti pentingnya mempertahankan dan meningkatkan hubungan
pelanggan dan memberikan pengalaman pelanggan yang positif untuk
meningkatkan kepuasan pelanggan.
REVIEW JURNAL 3
Judul The Influence of Brand Equity on Brand Loyalty of Adidas Shoes Mediated by
Customer Satisfaction
Nama jurnal JOURNAL OF ENTREPRENEURSHIP & BUSINESS
Volume & Volume 4 no 2
Halaman
Tahun 2023
Penulis Maria Isabel Clarisa, Lena Ellitan, Visi Saujaningati Kristiyanto
Tujuan penelitian Untuk menganalisis pengaruh ekuitas merek terhadap loyalitas merek sepatu
Adidas yang dimediasi oleh kepuasan pelanggan
Subjek penelitian Penelitian dilakukan pada responden yang menggunakan sepatu Adidas
selama 6 – 12 Bulan dan berusia 17 – 50 tahun di indonesia
Asesmen data Dalam jurnal tersebut, penulis menggunakan sumber langsung dari
responden. Data primer ini diperoleh melalui proses penelitian lapangan.
Metode pengambilan sampel yang digunakan adalah purposive sampling dan
teknik non probability sampling. Kriteria sampel yang digunakan adalah
responden yang berdomisili di Indonesia, berusia 17 – 50 tahun, dan
memiliki pengalaman menggunakan Adidas selama minimal 6 bulan sampai
1 tahun. Data yang telah dikumpulkan kemudian di proses menggunakan
Smart PLS 4.0 . Dengan metode structural Equation Model (SEM)
Metode Metode penelitian yang digunakan adalah Purposive sampling dan teknik
penelitian non probability sampling
Hasil penelitian Hasil penelitian dalam jurnal tersebut menunjukkan bahwa kualitas fisik
dan identitas merek tidak memiliki pengaruh signifikan terhadap kepuasan
pelanggan. Kepuasan pelanggan, pada gilirannya, memiliki pengaruh
signifikan terhadap loyalitas. Penelitian ini menekankan pentingnya
kepuasaan pelanggan dalam membangun loyalitas merek untuk sepatu
Adidas
Kekuatan 1. Menggunakan metode jurnal yang jelas: Jurnal ini menggunakan metode
penelitian penelitian yang jelas, yaitu metode kausal. Peneliti menguji hubungan sebab
akibat antara variable yang di teliti, dengan variable independen, mediasi
,dan dependen yang telah ditentukan dengan jelas
2. Penggunaan sumber data Primer: Penelitian ini menggunakan sumber data

primer yang diperoleh langsung dari responden melalui Google Form. Hal
ini memberikan keakuratan dan kebaruan data yang digunakan dalam
penelitian
3. Penggunaan metode analisis yang tepat: Data yang dikumpulkan di

analisis menggunakan metode SEM – PLS (Structural Equation Modelling –
Partial Least Square )
Kelemahan Dalam jurnal tersebut setelah di review saya tidak melihat kelemahan jurnal
penelitian tersebut
Kesimpulan Kesimpulan dari jurnal tersebut adalah bahwa kepuasan pelanggan memiliki
pengaruh signifikan terhadap loyalitas merek sepatu Adidas. Kualitas fisik
dan identifikasi merek tidak memiliki pengaruh signifikan terhadap
kepuasanan pelanggan. Namun, kepercayaan dan lingkungan memiliki
pengaruh signifikan terhadap kepuasan pelanggan. Temuan ini menunjukkan
bahwa kepuasan pelanggan memainkan peran penting dalam membangun
loyalitas merek untuk sepatu Adidas.
REVIEW JURNAL 4
Judul The Influence of Brand Trust and Satisfaction towards Consumer Loyalty of a
Local Cosmetic Products Brand X among Generation Z
Nama jurnal JOURNAL OF CONSUMER SCIENCES
Halaman
Tahun 2023
Penulis Moh. Djemdjem Djamaludin,
Tujuan penelitian Untuk menganalisis pengaruh kepercayaan merek dan kepuasan konsumen
terhadap loyalitas konsumen terhadap merek produk kosmetik lokal X di
kalangan Generasi Z
Subjek penelitian Generasi Z yang tinggal di area jabodetabek, berusia antara 17 hingga 25
tahun, dan telah membeli dan menggunakan produk kosmetik lokal merek
x setidaknya dua kali dalam tiga bulan terakhir
Asesmen data Dalam review penelitian ini dilakukan analisis mengenai pengaruh
kepercayaan merek dan kepuasan konsumen terhadap loyalitas konsumen
merek kosmetik lokal dengan menggunakan metode survei yang
menggunakan kuesioner sebagai alat pengumpulan data. Responden
Generasi Z yang tinggal di wilayah Jabodetabek, berusia 17 hingga 25
tahun, membeli dan menggunakan produk kosmetik merek lokal X
minimal dua kali dalam tiga bulan terakhir. Data yang terkumpul dianalisis
menggunakan statistik deskriptif dan analisis jalur untuk menguji
hubungan antar variabel yang diteliti. Hasil penelitian menunjukkan bahwa
kepercayaan merek berpengaruh positif dan signifikan terhadap kepuasan
konsumen, dan kepuasan konsumen berpengaruh positif dan signifikan
terhadap loyalitas konsumen. Namun kepercayaan merek tidak mempunyai
pengaruh positif dan langsung yang signifikan terhadap loyalitas
konsumen. Penelitian ini menyimpulkan bahwa Merek X harus
meningkatkan kepercayaan dan kepuasan konsumen untuk meningkatkan
loyalitas konsumen.
Metode penelitian Metode penelitian yang digunakan dalam jurnal adalah metode survei
dengan menggunakan kuesioner sebagai alat pengumpulan data. Data
primer dikumpulkan dengan mengisi kuesioner online oleh responden
Generasi Z yang menggunakan merek kosmetik lokal Toko Jabodetabek
dan distributornya. Data yang terkumpul dianalisis menggunakan program
Microsoft Excel 2010, Statistical Package for Social Sciences (SPSS) 25
dan LISREL 8.80. Analisis data meliputi analisis deskriptif, uji korelasi,
dan analisis Structural Equation Modeling (SEM). Sebelum digunakan,
kuesioner diuji terlebih dahulu untuk melihat tingkat validitas dan
reliabilitasnya.
Hasil penelitian Hasil penelitian jurnal tersebut menunjukkan bahwa kepercayaan merek
memiliki pengaruh positif dan signifikan terhadap kepuasan konsumen.
Namun kepercayaan merek tidak memiliki pengaruh langsung yang positif
dan signifikan terhadap loyalitas konsumen. Karena itu sang peneliti
merekomendasikan agar merek x meningkatkan kepercayaan dan kepuasan
konsumen untuk meningkatkan loyalitas konsumen
Kekuatan 1. Sampel yang representatif: Responden penelitian dipilih dari Generasi Z
penelitian yang tinggal di area jabodetabek, berusia antara 17 hingga 25 tahun , dan
telah membeli dan menggunakan produk kosmetik merek x setidaknya dua
kali dalam tiga bulan terakhir
2. Penggunaan analisis statistik yang tepat: Data yang dikumpulkan di

analisis menggunakan metode statistic deskriptif dan analisis jalur (path
analysis) untuk menguji hubungan antara variabel variabel yang di teliti.
Analisis jalur adalah metode yang kuat untuk menguji hubungan sebab
akibat antara variabel variabel yang kompleks
3. Penggunaan referensi yang relevan: Penelitian ini mengacu pada

berbagai jurnal dan sumber yang relevan dalam membangun kerangka
teoritis dan mendukung temuan penelitian
Kelemahan 1. Metode pengumpulan data: Penelitian ini menggunakan kuesioner online
penelitian untuk mengumpulkan data dari responden. Namun penelitian ini tidak
melakukan pertemuan tatap muka dengan responden saat mengisi
kuesioner. Hal ini dapat mempengaruhi validitas dan keakuratan data yang
diperoleh
2. Ketidaklengkapan pengisian kuesioner: Beberapa respondentidak

memahami dengan baik instruksi pengisian kuesioner, sehingga mengisi
kuesioner secara tidak lengkap. Hal ini mengakibatkan data yang tidak
valid harus di eliminasi
3. Keterbatasan generalisasi: Penelitian ini hanya dilakukan di area

jabodetabek dan melibatkan Generasi Z yang telah membeli dan
menggunakan produk kosmetik X. Oleh karena itu, hasil penelitian ini
mungkin tidak dapat di generalisasi ke populasi yang luas
Kesimpulan Kesimpulan dari tinjauan tersebut adalah kepercayaan merek dan
kepuasan konsumen mempunyai pengaruh yang signifikan terhadap
loyalitas konsumen terhadap merek kosmetik. Namun kepercayaan merek
tidak mempunyai pengaruh langsung yang signifikan terhadap loyalitas
konsumen. Oleh karena itu, penting bagi merek kosmetik untuk
membangun kepercayaan konsumen dan meningkatkan kepuasan
konsumen untuk mempertahankannya.
REVIEW JURNAL 5
Judul Millennials’ Intention to Invest through Securities Crowdfunding Platform
Nama jurnal APTISI TRANSACTIONS ON TECHNOPRENEURSHIP
Halaman
Tahun 2023
Penulis Ni Made Nila Febrianti, Gede Sri Darma
Tujuan penelitian Tujuan penelitian jurnal tersebut adalah untuk menggambarkan pengaruh
persepsi kemudahan penggunaan, persepsi kebermanfaatan, persepsi risiko,
pengaruh sosial, kepercayaan, dan niat perilaku penggunaan platform
crowdfunding sekuritas oleh generasi milenial.
Subjek penelitian Subjek penelitian dalam jurnal tersebut adalah generasi milenial di Kota
Denpasar, Bali, Indonesia.
Asesmen data Berdasarkan data evaluasi, penelitian ini menggunakan metode survei
dengan menggunakan Google Form sebagai alat pengumpulan data.
Penelitian ini dilakukan di kota Denpasar, Bali, Indonesia, dengan subjek
penelitian adalah generasi milenial yang tinggal di kota tersebut. Sampel
penelitian berjumlah 132 orang yang dipilih dengan menggunakan metode
purposive sampling. Data yang terkumpul kemudian dianalisis
menggunakan Structural Equation Model (SEM) dengan menggunakan
software AMOS. Penelitian ini menguji pengaruh variabel kognitif seperti
kemudahan penggunaan, persepsi manfaat, persepsi risiko, pengaruh sosial,
kepercayaan, dan niat perilaku terhadap penggunaan platform mobilisasi
modal dari komunitas sekuritas. Hasil penelitian menunjukkan bahwa
persepsi manfaat, pengaruh sosial, dan kepercayaan mempunyai pengaruh
langsung dan signifikan terhadap niat perilaku menggunakan platform.
Pada saat yang sama, persepsi kemudahan penggunaan dan persepsi risiko
tidak memiliki pengaruh langsung terhadap niat berperilaku. Perceived
ease of use mempunyai pengaruh tidak langsung melalui persepsi
kegunaan, dan persepsi risiko mempunyai pengaruh tidak langsung melalui
variabel kepercayaan terhadap niat perilaku menggunakan platform
crowdfunding saham. Kepercayaan ditemukan memiliki pengaruh terbesar
terhadap niat perilaku untuk menggunakan platform.
Metode penelitian Metode penelitian yang digunakan dalam jurnal adalah metode survei
dengan menggunakan Google Form sebagai alat pengumpul data.
Penelitian ini dilakukan di kota Denpasar, Bali, Indonesia, dengan subjek
penelitian adalah generasi Millenial yang tinggal di kota tersebut. Sampel
penelitian berjumlah 132 orang yang dipilih dengan menggunakan metode
purposive sampling. Data yang terkumpul kemudian dianalisis
menggunakan Structural Equation Model (SEM) dengan menggunakan
software AMOS.
Hasil penelitian Hasil penelitian yang dipublikasikan dalam jurnal ini menunjukkan bahwa
terdapat pengaruh signifikan sejumlah variabel terhadap niat perilaku
menggunakan platform crowdfunding saham generasi Milenial. Variabel
yang mempunyai pengaruh langsung dan signifikan terhadap niat
berperilaku adalah persepsi manfaat, pengaruh sosial, dan kepercayaan. Di
sisi lain, variabel kognitif seperti kemudahan penggunaan dan persepsi
risiko tidak memiliki pengaruh langsung terhadap niat berperilaku. Namun
persepsi kemudahan penggunaan mempunyai pengaruh tidak langsung
melalui persepsi kegunaan, dan persepsi risiko mempunyai pengaruh tidak
langsung melalui kepercayaan. Kepercayaan ditemukan memiliki pengaruh
terbesar terhadap niat perilaku untuk menggunakan platform crowdfunding
sekuritas.
Kekuatan Kekuatan penelitian dalam jurnal ini dapat diidentifikasi dalam beberapa
penelitian aspek. Pertama, penelitian ini menggunakan metode survei dengan
menggunakan Google Form sebagai alat pengumpul data, sehingga
memungkinkan pengumpulan data dari responden secara efisien dan
akurat. Selanjutnya penelitian ini menggunakan metode Structural
Equation Model (SEM) dengan menggunakan software AMOS untuk
menganalisis datanya, yang merupakan metode ampuh untuk menguji
hubungan antar variabel yang diteliti.
Kedua, penelitian ini menggunakan sampel yang cukup besar, yaitu 132
responden, sehingga dapat memberikan hasil yang lebih andal dan
representatif. Selain itu, penelitian ini menggunakan purposive sampling
untuk memilih responden generasi muda dan familiar dengan platform
crowdfunding saham, sehingga memastikan sampel yang digunakan sesuai
dengan tujuan penelitian.
Ketiga, penelitian ini menggunakan model kerangka penelitian yang jelas,

menggambarkan hubungan antar variabel yang diteliti. Model ini
mencakup variabel-variabel seperti persepsi kemudahan penggunaan,
persepsi manfaat, persepsi risiko, pengaruh sosial, kepercayaan, dan niat
perilaku untuk menggunakan platform penggalangan dana komunitas
saham. Dengan menggunakan model ini, penelitian dapat menganalisis
pengaruh variabel-variabel tersebut terhadap niat perilaku menggunakan
platform.
Kelemahan Pada jurnal ini ketika saya review saya tidak bisa melihat kelemahan pada
penelitian jurnal tersebut
Kesimpulan Kesimpulan dari tinjauan tersebut adalah terdapat pengaruh signifikan
beberapa variabel terhadap niat perilaku generasi milenial untuk
menggunakan platform crowdfunding saham. Di sisi lain, variabel kognitif
seperti kemudahan penggunaan dan persepsi risiko tidak memiliki
pengaruh langsung terhadap niat berperilaku. Namun persepsi kemudahan
penggunaan mempunyai pengaruh tidak langsung melalui persepsi
kegunaan, dan persepsi risiko mempunyai pengaruh tidak langsung melalui
variabel kepercayaan terhadap niat perilaku menggunakan platform
crownfunding sekuritas. Kepercayaan ditemukan memiliki pengaruh
terbesar terhadap niat perilaku untuk menggunakan platform.
Indonesian Journal of Business and Entrepreneurship, Vol. 9 No. 1, January 2023 Available online at
Permalink/DOI: http://dx.doi.org/10.17358/IJBE.9.1.118 http://journal.ipb.ac.id/index.php/ijbe
THE ROLE OF E-SATISFACTION ON REPURCHASE AND E-WOM INTENTION

ON THE COSTUMERS OF FOOD PRODUCTS BY LOCAL MICRO AND SMALL
BUSINESSES ON THE DIGITAL PLATFORMS
Enrico Verrell Santoso*), Retno Ardianti*)1
School of Business & Management, Petra Christian University

*)
Jl. Siwalankerto 121-131, Surabaya 60236, Indonesia
Abstract: Despite the increasing popularity of online food delivery services, extant studies have
not looked at factors that contribute to customers’ willingness to repurchase and recommend
food products by local micro and small businesses to other app users. Meanwhile, the topic is
essential given that food products from local micro and small businesses face direct competition
with well-known products from large corporations on digital platforms. Therefore, this study
Article history: aims to examine the role of food quality, price fairness and perceived value on e-satisfaction
and the role of e-satisfaction on the repurchase and e-WOM intention of the customers of food
Received products by local micro and small businesses. Using data from 100 customers of local micro
23 September 2022 and small businesses on the popular food delivery applications in Pekalongan, Indonesia and
employing Partial Least Square (PLS) in our data analysis, our results show that food quality
Revised and price fairness have a significant effect on e-satisfaction. In addition, our findings show that
18 October 2022 e-satisfaction has a positive and significant effect on repurchase intention, but it shows a non-
significant positive effect on e-WOM intention. Overall, our findings suggest that on digital
Accepted platforms, gaining customer satisfaction about the product's quality and the price's fairness
11 November 2022 may not be enough, as it does not indicate a significant relationship with the willingness of the
customers to recommend it to other app users.
Available online
31 January 2023 Keywords: food quality, price fairness, perceived value, e-satisfaction, repurchase intention,
e-WOM intention
This is an open access Abstrak: Ditengah meningkatnya popularitas online food delivery services, penelitian selama
article under the CC ini belum menjawab tentang faktor yang berkontribusi pada pembelian kembali dan kesediaan
BY license (https:// konsumen untuk merekomendasikan makanan produk usaha mikro dan kecil lokal pada
creativecommons.org/ pengguna aplikasi lainnya. Oleh karena itu, penelitian ini dilakukan untuk menguji peran food
licenses/by/4.0/) quality, price fairness dan perceived value terhadap e-satisfaction dan selanjutnya terhadap
repurchase dan e-WOM intention. Dengan menggunakan data dari 100 pelanggan usaha mikro
dan kecil di kota Pekalongan, Indonesia yang terdapat pada aplikasi food delivery services, dan
Partial Least Square (PLS) sebagai teknik analisa data, hasil penelitian menunjukkan bahwa
food quality dan price fairness mempengaruhi e-satisfaction secara signifikan. Selanjutnya
hasil analis juga menunjukkan bahwa e-satisfaction berpengaruh secara signifikan pada
repurchase intention, namun tidak signifikan terhadap e-WOM intention. Secara keseluruhan,
hasil penelitian ini menunjukkan bahwa pada platform digital, kepuasan konsumen terhadap
kualitas produk dan fairness atas harga produk adalah tidak mencukupi. Hal ini karena
meskipun e-satisfaction berdampak pada pembelian kembali, namun e-satisfaction tidak
memiliki dampak signifikan terhadap kesediaan pelanggan untuk merekomendasikan pada
pihak lain.
Kata kunci: food quality, price fairness, perceived value, e-satisfaction, repurchase intention,
e-WOM intention
1
Corresponding author:
Email: retnoa@petra.ac.id
118 Copyright © 2023, ISSN: 2407-5434; EISSN: 2407-7321

P-ISSN: 2407-5434 E-ISSN: 2407-7321 Indonesian Journal of Business and Entrepreneurship,
Vol. 9 No. 1, January 2023
Accredited by Ministry of RTHE Number 32a/E/KPT/2017
INTRODUCTION Nonetheless, these prior studies have not explicitly

looked at variables that affect the willingness of small
The popularity of online food delivery services has business customers to repurchase and recommend the
been proliferating in recent years (Shroff et al. 2022). products to others. Therefore, it remains uncertain
This service connects users with restaurants and whether customer satisfaction also plays a vital role
riders who deliver orders using the digital platform in explaining repurchase and e-WOM intention in this
(Seghezzi et al. 2021). In Indonesia, the use of digital unique setting. In order to address this gap as well as
food delivery services experienced an increase of to answer the call to study restaurant operations and
34% during the covid 19 pandemic. With national and their role in online food delivery systems (Seghezzi et
local governments imposing restrictions on people’s al. 2021), we aim to study the users of popular online
mobility for nonessential activities, many local cafes, food services in Indonesia, such as Go Food, Grab
kiosks, and restaurants had to rely on digital platforms food, and Shopee food who purchase food products
to continue serving their customers. from local micro and small businesses in the apps.
More specifically, we aim to examine factors that affect
Despite the chance to continue the business during customers’ satisfaction towards food products offered
the pandemic, moving to the digital platform has by local micro and small businesses on the digital
given additional challenges for local micro and small platform. Moreover, we aim to examine the effect of
businesses. In addition to the lack of digital competencies e-satisfaction on the repurchase and e-WOM intention.
of the entrepreneurs (Orrensalo et al. 2022), local small
businesses have to compete directly with reputable big To achieve this aim, we depart from the theoretical
businesses in the digital platform. On this platform, models by Konuk (2019) and Alalwan et al. (2020).
customers can easily compare products and switch to Konuk (2019) explains the revisit and electronic word-
other merchants who give better offerings or display of-mouth intention of restaurant visitors in the offline
higher ratings from their customers. Thus, this situation setting by looking at the effect of customers’ satisfaction
requires the entrepreneur to improve product quality regarding the quality, the fairness of the price, and the
and promotion strategy, mainly to attract repeat buyers value of the food product. At the same time, Alalwan
and receive positive customer reviews. However, et al. (2020) studied the effect of customer satisfaction
little guidance is available to improve their offerings in the online setting. Based on the insights from the
and survive in the digital platform. To date, extant two studies, we develop a theoretical model and test the
studies have not revealed essential factors that affect model by using survey data gathered from the customer
repurchase and electronic word of mouth (e-WOM) of food products by local micro and small businesses
intention by the customers of online food delivery in Pekalongan, a small city in Indonesia. Apart from
services, particularly the customers of local micro and its geographical location accessible by the authors, just
small businesses on the digital platform. like many other cities in the world, Pekalongan is a city
whose residents are shifting from relying on offline to
Prior studies on online Food Delivery services have online modes for retail stoppings. This setting makes it
revealed several factors that influence consumer relevant for our study, given that many local customers
intentions to use or continue using the apps (e.g. in this city can now easily compare offerings from
Alalwan, 2020; Kumar & Shah, 2021; Ray et al. the local business with those of reputable national or
2019; Troise et al. 2020; Zanetta et al. 2021; Zhao & international restaurant chains on digital platforms.
Bacao, 2020). For example, a study by Han and Hyun
(2017) studied user characteristics of the apps, while Our study focuses on the repurchase and e-WOM
Alalwan (2020) used technology adoption theories as intention, given that we see these two variables as
the lens to explain the intention to use the app. These necessary for the survival of small businesses in the
two prior studies have helped to understand the role online setting. Prior studies have revealed that customer
of user satisfaction on the intention to continue using behavioral intentions such as repurchasing and word of
the app. These studies reveal the effect of online mouth can be predicted by their customers’ satisfaction
reviews, ratings, tracking, performance expectancy, (e.g. Ryu and Han, 2010; Namin, 2017). According to
and other factors contributing to user satisfaction and the expectancy-disconfirmation theory, satisfaction can
continued intention to use the app (e.g. Alalwan, 2020). be interpreted as an evaluation of affective responses
Indonesian Journal of Business and Entrepreneurship, Vol. 3 No. 2, May 2017 119
or experiences after disconfirming consumer cognitive perspective of this theory, food quality attributes such
expectations and perceived performance of a product/ as taste, shape, and appearance of the food can act
service and its attributes (Han and Hyun, 2017). Based as a stimulus that may influence customers’ internal
on this theoretical lens, consumers have expectations evaluations regarding satisfaction or dissatisfaction
of a product or service before making a purchase. If with the product. By consuming the food product,
there is confirmation or customers’ expectations are customers can assess the excellence of the food by
met, then satisfaction will occur (Oliver in Konuk, local micro and small businesses compared to those of
2019). It is because customers often decide to purchase other merchants. Therefore, in this study, we expect to
or repurchase certain products after evaluating find the effect of food quality on e-satisfaction.
whether their experience with a product/service was
satisfactory or unsatisfactory (Han and Hyun, 2017). Another critical factor that affects customers’ satisfac-
When consumers are satisfied, their good intentions tion in the online setting is price fairness. Referring to
for a product/service and their desire to purchase or Campbell (2007), who gained insight from the prin-
repurchase will generally increase (Han & Hyun, ciple of dual entitlement, Konuk (2019) defines price
2017). fairness as a consumer’s subjective sense of a price as
proper or legitimate. It is the exact opposite of the price
From an empirical perspective, prior studies within as wrong, unjust, or illegitimate. Konuk (2019) argues
the context of restaurants demonstrate the positive that the buyer is entitled to a fair price, and the seller
effect of customer satisfaction on customers’ intention is entitled to a fair profit. Accordingly, the unfairness
to buy food products (Han and Hyun, 2017; Konuk, perception may arise when one party’s entitlement is
2019). Konuk’s (2019) study even demonstrates that ignored or when consumers’ reference price is below
satisfaction predicts both revisit and e-WOM intention. the market price. Following this argument, in this pres-
In addition to the two prior studies, a more recent study ent study, we expect to find the effect of price fairness
by Annaraud & Berezina (2020) and Allawan (2020) on e-satisfaction.
found the effect of satisfaction on the users’ intention
to use online food delivery apps. However, the two Lastly, prior studies in both online and offline settings
studies have not looked at customers’ intention to repeat have revealed that customers’ satisfaction can be af-
their purchases or their willingness to recommend fected by their perceived product value. In Konuk‘s
food products that they purchase to other users on study (2019), perceived value is defined as a cogni-
the platform. Therefore, informed by expectancy- tive exchange between the perceived quality and the
disconfirmation theory and insights from prior studies sacrifices customers make to consume the products. It
that were conducted in the offline setting, in the present makes perceived quality and perceived price the two
study, we expect to find the effect of e-satisfaction, crucial determinants of perceived value because cus-
which is defined as the contentment of the customer tomers will compare the utility and price of the product
concerning their prior purchasing experience by using to determine the value. According to Alalwan (2020),
a mobile app on the repurchase and e-WOM intention the users of online food delivery services will be more
(Alalawan, 2020). likely to compare the cost of ordering food via a tra-
ditional channel with that of digital applications. By
While repurchase and e-WOM can be explained using the apps, customers do not need to spend much
by satisfaction, in the offline setting, satisfaction effort, such as physically visiting the restaurants. In
can be predicted by several factors. In a study by addition, exciting promotions such as price discounts,
Konuk (2019), the satisfaction of restaurant visitors redeem points, free delivery costs, and so forth are
can be explained by product quality, fairness of the available on the apps. Accordingly, customers will be
price, and the value of the food product. The study’s more likely to rate their experience using this service
theoretical model is built on Stimulus-Organism- as more valuable than directly visiting the food kiosk,
Response (S-O-R) Theory. S–O-R model emphasizes cafes, or restaurants to get their orders. Therefore, we
that the development of the internal evaluation process expect to find the positive effect of perceived value on
of the organism is triggered by a stimulus, which in e-satisfaction.
turn influences response (Jacoby, 2002). From the
120 Indonesian Journal of Business and Entrepreneurship, Vol. 3 No. 2, May 2017
METHODS In addition to age distribution, we present our

respondents’ purchase frequency in Table 2. Most of
Our sample was drawn from the customers of local our respondents (78%) made purchases between 1–3
micro and small businesses on the popular food times per week and relied only on one service (either
delivery services such as Go Food, Grab Food and Go Food, Grab Food, or Shoppe Food). Interestingly, 5
Shopee Food in Pekalongan, one of the cities in central of our respondents made daily food purchases through
Java, Indonesia. Our respondents were individuals over the apps (purchases more than seven times per week).
18 years old who lived in Pekalongan and had used
online food delivery services in the last three months. Our questionnaire consisted of three main parts. In
It is to ensure that our respondents are familiar with the the first part, we asked about the characteristics of the
current offerings in the platforms. We also restricted respondents, while in the second part, we asked about
our respondents to individuals who had purchased respondents’ behavior in using food delivery services.
food products from local micro and small businesses Lastly, we asked our respondents to indicate their
in the applications, such as Nasi Megono Bu Endang, preferred answers regarding the variables that we used
Martabak Karya Baru, and Max Preek. in this study. We adapted measurements from Konuk’s
(2019) and Alalwan’s (2020) studies to measure food
We used the convenience sampling method and quality, price fairness, perceived value, e-satisfaction,
distributed our online questionnaire using social media repurchase intention, and e-WOM intention. We
and chat applications like Line and WhatsApp. We detailed our measurement in Table 3. All measures
received 140 responses from May 12, 2022, to May 21, were in the Likert scale, using a scale of strongly
2022. From the overall 140 responses, 100 were used agree to strongly disagree on each statement, to help
in the data analysis, given their match with the criteria respondents indicate their most preferred statements.
mentioned earlier. As Table 1 shows, our respondents We tested our theoretical model by using SmartPLS
were dominated by individuals between 21–30 years of 3 software. More specifically, we tested the following
age, with relatively equal responses between male and hypotheses in our analysis:
female respondents. H1: Food quality has a significant effect on
e-satisfaction.
Table 1. Respondent by age and sex H2: Price fairness has a significant effect on
Age Male Female Total e-satisfaction.
18-20 5 4 9 H3: Perceived value has a significant effect on
21-30 28 35 63 e-satisfaction.
31-40 13 10 23 H4: e-satisfaction has a significant effect on
> 40 3 2 5 repurchase intention.
Total 49 51 100 H5: e-satisfaction has a significant effect on e-WOM
intention.
Table 2. Usage Frequency per week

Usage frequency (times per week)
Name of Online food delivery services
1-3 4-6 7-10 > 10 Total
GoFood 29 1 2 32
GrabFood 26 6 32
ShopeeFood 10 4 1 15
GoFood, GrabFood 9 1 10
GoFood, ShopeeFood 2 1 3
GrabFood, ShopeeFood 1 1
GoFood, GrabFood, ShopeeFood 2 5 7
Total 78 17 1 4 100
Table 3. Measures
Food Quality
PFQ1. visually attractiveness of food presentation
PFQ2. The healthiness of the food.
PFQ3. The taste of the food
PFQ4. The freshness of the food.
Price Fairness
PF1. The price is reasonable.
PF2. The price is fair.
PF3. The price is acceptable.
Value
V1. The food is a good value for the price.
V2. The overall value of local food is high.
V3. The local food was worth the money.
E-satisfaction
S1. Pleased with local food products brought from the apps.
S2. Satisfied with local food products brought from the apps.
S3. Happy with local food products brought from the apps.
S4. Satisfied with the way that mobile food order apps have carried out transactions.
S5. Overall satisfaction with the apps.
Repurchase Intentions
RI1. Respondents will keep buying local food.
RI2. Respondents would like to use the apps to buy local food.
RI3. Respondents consider repurchasing local food in the future.
Word-of-Mouth Intentions
WOM1. Respondents will recommend to other people who seek their advice.
WOM2. Respondents will say positive things to their acquaintances about the local food.
WOM3. Respondents will encourage other people to buy local food through the apps.
We used two-way hypothesis testing with a confidence data’s confidence level. Following Hair et al. (2019),
level of 95% to determine the significant effects of the we looked at Cronbach’s alpha and the composite
relationships. We employed the outer model test to reliability. Cronbach’s alpha test is valid if the value is
evaluate the validity and reliability of our variables. more significant than 0.7. The composite reliability test
This evaluation helps to explain the relationship is considered valid if the composite reliability value is
between latent variables and their indicators (Abdillah more significant than 0.7. In order to better understand
& Jogiyanto, 2015). Our validity test was carried out the role of e-satisfaction on the repurchase and e-WOM
to examine the data’s relationship and accuracy (Hair intention. Following Konuk (2019), we examined
et al. 2019). The convergent validity test is carried the indirect effect of e-satisfaction on the repurchase
out to examine the outer loadings of each loading and e-WOM intention as a supplemental analysis.
factor from each latent variable. A discriminant The examination aims to explore further the role of
validity test was conducted to examine the cross- e-satisfaction on the repurchase and e-WOM intention
loadings on each indicator between the existing latent by rerunning the analysis to explore the mediating
variables. Discriminant validity is considered valid effect of e-satisfaction on the relationship between price
if the cross-loading value of a target latent variable fairness and repurchase and e-WOM intention. Lastly,
is greater than the other latent variables or if the we repeated the analysis to explore the mediating effect
Average Variance Extracted (AVE) value is > 0.5. We of e-satisfaction on the relationship between perceived
then use the reliability test to determine our research value and repurchase and e-WOM intention.
RESULTS variable is greater than that of other latent variables.

Table 5 shows that the overall indicators were valid, as
We present the result of the convergent validity test the cross-loading of the indicators from each construct
in Table 4. The value of outer loading on convergent was more significant than the value of other construct
validity is significant if it reaches the 0,5 point, indicators.
whereas the latent variables were considered valid if
their Average Variance Extracted (AVE) value were Further, as Table 6 shows, the composite reliability
more than 0.5 (Abdillah & Hartono, 2015). Our value of all variables was above 0.80, thus indicating
results indicated that only RI3 was considered invalid, good reliability. According to Hair et al. (2019), the
whereas the AVE value for the overall six variables variable is considered reliable if Cronbach’s alpha
was significant. We, therefore, did not include the RI3 (α) value is more significant than 0.70. In addition,
indicator in our primary analysis. We present the results referring to Sekaran and Bougie (2016), reliability
of the discriminant validity test in Table 5 and the below 0.60 is considered weak but acceptable, whereas
reliability test in Table 6. The indicator is considered within the range of 0.70 is acceptable, and above 0.80
valid if the cross-loading value of the target latent is good.
Table 4. Convergent validity test results

Variable and AVE Value Indicator Outer Loadings Description
Food Quality (PFQ) (AVE = 0.641) PFQ1 0.706 Valid
PFQ2 0.720 Valid
PFQ3 0.883 Valid
PFQ4 0.876 Valid
Price Fairness (PF) (AVE = 0.759) PF1 0.874 Valid
PF2 0.860 Valid
PF3 0.881 Valid
Perceived Value (PV) (AVE = 0.704) PV1 0.818 Valid
PV2 0.884 Valid
PV3 0.814 Valid
e-satisfaction (SATIS) (AVE = 0.667) SATIS1 0.818 Valid
SATIS2 0.824 Valid
SATIS3 0.786 Valid
SATIS4 0.776 Valid
SATIS5 0.875 Valid
Repurchase Intention (RI) (AVE = 0.894) RI1 0.939 Valid
RI2 0.906 Valid
RI3 0.607 Invalid
e-WOM Intention (WOM) (AVE = 0.804) WOM1 0.903 Valid
WOM2 0.903 Valid
WOM3 0.884 Valid
Table 5. Discriminant validity test results

Indicator PFQ PF PV SATIS RI WOM Description
FQ1 0.706 0.514 0.547 0.492 0.266 0.345 Valid
FQ2 0.720 0.368 0.455 0.340 0.207 0.347 Valid
FQ3 0.883 0.627 0.606 0.670 0.434 0.430 Valid
FQ4 0.876 0.622 0.587 0.613 0.367 0.496 Valid
PF1 0.549 0.874 0.615 0.628 0.511 0.415 Valid
PF2 0.719 0.860 0.687 0.658 0.505 0.492 Valid
PF3 0.511 0.881 0.656 0.649 0.609 0.282 Valid
V1 0.560 0.601 0.818 0.486 0.483 0.504 Valid
V2 0.653 0.599 0.884 0.670 0.526 0.571 Valid
V3 0.515 0.694 0.814 0.582 0.510 0.478 Valid
S1 0.538 0.634 0.576 0.818 0.407 0.350 Valid
S2 0.647 0.596 0.578 0.824 0.446 0.472 Valid
S3 0.485 0.491 0.486 0.786 0.514 0.388 Valid
S4 0.568 0.675 0.595 0.776 0.482 0.472 Valid
S5 0.547 0.619 0.597 0.875 0.595 0.537 Valid
RI1 0.343 0.529 0.532 0.567 0.939 0.443 Valid
RI2 0.370 0.605 0.574 0.601 0.906 0.492 Valid
RI3 0.344 0.391 0.377 0.253 0.607 0.282 Valid
WOM1 0.422 0.460 0.557 0.529 0.495 0.903 Valid
WOM2 0.453 0.427 0.593 0.520 0.447 0.903 Valid
WOM3 0.505 0.335 0.509 0.424 0.407 0.884 Valid
Table 6. Reliability test results

The results of the R square test showed that the
Variable α CR Description
combined effects of food quality, price fairness, and
PFQ 0.813 0.876 Reliable
perceived value could explain 62.4% of the variance
PF 0.842 0.904 Reliable
of e-satisfaction. In addition, the finding revealed
PV 0.790 0.877 Reliable
that 48.3% of the variance of repurchase intention
SATIS 0.875 0.909 Reliable
could be explained by e-satisfaction. However, more
RI 0.882 0.944 Reliable
considerable factors (51.7%) outside of this study
WOM 0.878 0.925 Reliable contribute to explaining re-purchase and e-WOM
intention.
We present the measurement model in Figure 1 and
the results of hypothesis testing in Table 7. The results Our finding, which indicates the positive and significant
showed that hypotheses 1, 3, 4, and 5 were supported, relationship between food quality and e-satisfaction
while hypotheses 2 and 6 were not. The finding indicates (H1), concurs with previous research by Han and Hyun
that food quality (H1) positively and significantly affects (2017) and Konuk (2019), which show that the quality
e-satisfaction (p= 0.049). Regarding H2, the findings of food affects restaurants’ customer satisfaction. The
indicate that price fairness positively and significantly results imply that the visual presentation of the food and
affects e-satisfaction (p=0.001). Meanwhile, hypothesis customers’ perception of the healthiness of the food,
3 was not supported. The result showed that the effect taste, and freshness contribute to their satisfaction.
of perceived value on e-satisfaction was positive but
not significant (p=0.086). Concerning hypothesis 4, the In addition to food quality, our results reveal
finding indicates that e-satisfaction has a positive and price fairness’s significant and positive effect on
significant effect on repurchase intention (p= 0.018). e-satisfaction (H2). The finding is in line with previous
Lastly, our hypothesis 5 was not supported as the research, which reveals the positive effect of price
finding indicates that e-satisfaction has a positive but fairness in offline and online settings (Konuk, 2019)
insignificant effect on e-WOM intention (p=0.223). and online settings (Alalwan, 2020). In this study, the
results suggest that the prices of traditional food and the availability of offers perceived as more valuable
beverages offered by local micro and small businesses by other merchants, particularly from big restaurant
are reasonable, fair, and acceptable, thus affecting chains, such as price discounts and sales promotion
the satisfaction of customers who purchase the food programs (e.g., buy one get one and coupons).
through popular apps.
Regarding the effect of e-satisfaction on repurchase
Nonetheless, our findings regarding price value (H3) intention (H4), as expected, our results indicate a
are different from prior results by Jalilvand et al. (2017) positive and significant effect of this relationship. The
and Konuk (2019). In these prior studies, the perceived result is in line with the findings from previous studies
value significantly predicted satisfaction, whereas, on the effect of satisfaction and loyalty (Haryandika &
in this present study, the effect of perceived value is Santra, 2021; Hendarto, 2021) and by Konuk (2019),
positive but not significant. The finding implies that the who study restaurant visitors in the offline setting. It
effect of customers’ perception concerning the value of also concurs with Alalwan (2020), who found the
food products is not as strong as the price fairness and effect of e-satisfaction on users’ continuance intention
the quality of the product in affecting their satisfaction. in using food delivery apps. In the present study, our
Moreover, the results also suggest that customers may results imply that customers who are satisfied with
not find that buying traditional food from local micro their app purchases will be more likely to continue
and small businesses is worth the money despite the buying traditional food products from local micro and
price being perceived as meeting their expectations and small businesses in the apps.
the quality is perceived as sound. Thus, it may indicate
Figure 1. Results of structural equation modeling
Table 4. Convergent validity test results

Hypotheses Path Coefficient T-Statistics P-Values Description
H1. PFQ → SATIS 0.262 1.973 0.049 Supported
H2. PF → SATIS 0.399 3.330 0.001 Supported
H3. PV → SATIS 0.216 1.716 0.086 Not Supported
H4 .SATIS → RI 0.407 2.368 0.018 Supported
H5. SATIS → WOM 0.264 1.220 0.223 Not supported
Interestingly, unlike the effect found among restaurant merchant on the apps, customers can easily switch to
visitors in the offline setting (Konuk, 2019), we reputable merchants offering significant discounts or
did not find a significant effect of e-satisfaction on other exciting sales promotion programs. In addition,
e-WOM intention. It implies that customers who are customers may be tempted to locate their search under
satisfied with food products offered by local micro the “near me” category to save delivery fees or choose
and small businesses do not have a solid willingness merchants under “most loved categories” to purchase
to recommend to other app users by giving positive food products perceived as sound. Therefore, despite
reviews or ratings. This result highlights the uniqueness their satisfaction with the food, many factors may affect
of the setting where traditional food produced by local customers’ willingness to recommend the products to
micro and small business have to compete directly other users in this unique setting. Other contributing
with well-known brands from national or international factors to e-WOM may include the quality of
restaurant chains on the apps. The results may suggest interaction between customers and merchants (Bu et al.
that customers may not feel tempted to recommend 2021), the role of the brand (Gómez-Suárez & Veloso,
products that are not reputable. In addition, unlike 2020), and the user interface of the app (Ismagilova et
nonfood products in e-marketplaces which often al. 2020). The results thus suggest that even in line with
reward customers who provide reviews and ratings, the expectancy-disconfirmation theory, which explains
there is no such program in these food delivery apps. that when customers’ expectations are met, satisfaction
Therefore, despite feeling satisfied with the food will occur, and their desire to buy or repurchase will
products, customers may not be motivated to give increase (Han & Hyun, 2017). However, satisfaction
ratings.Moreover, the design of popular food delivery may not be enough to affect other positive consumer
apps seems to encourage customers to give ratings and behaviors in a particular context. Our findings show that
tips for riders but not for merchants. Customers will satisfaction does not significantly affect the willingness
need to go back to the merchants’ space in the apps to recommend to others, although it affects repurchase
to give reviews and ratings. The overall factors may intention.
contribute to the positive but non-significant effect of
e-satisfaction on e-WOM intention. Managerial Implications
In summary, the finding of this study indicates that Based on our empirical findings and data indicating
gaining customer satisfaction with the quality of frequent usage of online food services even by
the product and the fairness of the price may not be customers in a small city, we, therefore, compose several
enough, as it does not indicate a significant relationship recommendations for local micro and small business
with the willingness of the customers to recommend and food delivery services operators. First, local micro
to other users on the digital platform. In addition, by and small businesses need to maintain the quality of
further examining the indirect effects of e-satisfaction their food and fairness of their price to compete with
in our supplemental analysis, our results indicate that other food products from well-known restaurant
e-satisfaction did not mediate the relationship between chains on digital platforms. Second, to improve their
food quality and repurchase intention (p=0.106), nor competitiveness on the platform, local micro and small
food quality with e-WOM intention (p=0.366). It also businesses need to build their brand and reputation
did not mediate the relationship between price fairness to attract more app users to purchase their products.
and repurchase intention (p=0.089), nor food quality Building a reputable brand will help micro and small
with e-WOM intention (p=0.244). Lastly, the finding businesses to get recognition in a platform that relies
showed that e-satisfaction also did not mediate the heavily on search tools and user ratings and reviews.
relationship between perceived value and repurchase Third, the operators of food delivery services need to
intention (p=0.196) and e-WOM intention (p=0.384). continue supporting local micro and small business by
Overall the results suggest that in these unique encouraging their users to provide reviews and ratings.
settings, factors other than satisfaction may play more One of the ways is by designing a friendly user interface
significant roles in explaining repurchase or e-WOM of the app that makes it easier for the customer to rate
intention. With the ease of comparing offers from every the service of the riders and the merchants.
Nonetheless, the findings of the present study are REFERENCES

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customer satisfaction and behavioral intention
Email: ijbe.feubb@gmail.com
Laman: http://ojs.ijbe-research.com/index.php/IJBE/index
THE INFLUENCE OF CUSTOMER RELATIONSHIP

MANAGEMENT AND CUSTOMER EXPERIENCE ON
CUSTOMER SATISFACTION
Suharto Suhartoa* , Yuliansyah Yuliansyahb
a
Universitas Muhammadiyah Metro, Indonesia
b
Universitas Lampung, Indonesia
hartoumm@gmail.com
This research attempts to examine how customer relationship management and

customer experience influence customer satisfaction in Lampung Province retail
complexes. Data was taken using non-random sampling method with purposive
sampling technique and used to meet the number of samples as many as 135
respondents. Validity, reliability, construct reliability, and variance extraction
were used to evaluate the quality of the data. Prior to data analysis, the Liliefors
normal requirements, homogeneity, linearity, and significance of regression were
examined. Structural Equation Modeling is a structural equation used to analyze
the model. The research findings are that there is a direct positive effect of customer
relationship management on customer experience, customer relationships have a
direct positive effect on customer satisfaction, and customer experience has a direct
positive effect on customer satisfaction
Article Info
• Received : 17th January, 2023
• Revised : 26th February, 2023
• Published : 28th February, 2023
• Pages : 403-417
• DOI : 10.33019/ijbe.v7i1.641
• JEL : L84
• Keywords : Customer Relationship Management, Customer Experience,
and Customer Satisfaction
403
This work is licensed under a Creative Commons Attribution 4.0 International License
1. Introduction
Previous researchers have mainly researched consumer satisfaction and use
customer responses and service quality to the output produced by the company (Al-
Azzam, 2015; Faraj Aldaihani, Bin Ali, Hashim, & Basha, 2020; Tohara, Dewi,
Faizah, Nugraha, & Andi, 2020). In contrast to previous studies, this study
examines customer relationship management, which is expected to accommodate
different customer experiences, increasing customer satisfaction. This research is
based on the arguments of (Imbug, Ambad, & Bujang, 2018), which says that the
treatment given to the organization to customers who have different experiences is
a strategy to obtain a positive customer response to the organization.
Positive consumer response is one indicator of customer satisfaction (Ban & Kim,
2019). Customer satisfaction is maintained in a good way, is a success for every
company. Because if the customer is satisfied after consuming the goods or services
provided by the company, it means that the company can meet consumer needs
following expectations. According to (Othman, Harun, Rashid, & Ali, 2019),
customer satisfaction is the key to long-term business success. The company must
offer a product or service based on quality to outperform its competitors to get the
satisfaction of its customers to protect, gain, and maintain market share. Customer
satisfaction is one of the main goals that any company looks for in the long term,
with customers being considered a top priority (Minh & Huu, 2016).
Companies can create customer satisfaction through several factors, such as

maintaining relationships with customers, providing quality services, and according
to customer desires. Maintaining relationships is a priority factor because it is
considered to have a comfortable impact on the minds of customers (Faraj
Aldaihani et al., 2020). Customer relationship management is a strategy where
companies try to maintain relationships with customers.
Customer relationship management is considered a broad-based approach that

builds and expands customer relationships. It is an entrepreneurial strategy that aims
to provide understanding, anticipation, management, and personalization of current
and potential customers (Jermsittiparsert, Sutduean, & Sriyakul, 2018). According
to (Memon, 2018), customer relationship management is a systematic technique
designed to manage customer interactions utilizing various technologies to gather
and coordinate business sales, marketing, customer support, product development,
and performance management information.
Customer experience is a broad concept that includes customers and companies that
provides for customers physical and emotional experiences when interacting with
company products and services. Customer experience is subjective because it
involves customer opinions until the post-consumption stage (Bascur & Rusu,
2020). Customer experience is considered a unique concept superior to services and
products, specifically customer experience, divided into four categories, namely
entertainment, education, quotes, and aesthetics (Lee, Ka-hyun Lee, & Choi, 2018).
404
Based on above explanation, we formulate a research problem as follows: the extent
to which Customer Relationship Management and Customer Experience influence
Customer Satisfaction.
2. Literature Review
Customer satisfaction is an attitude customers show because the company has
succeeded in fulfilling customer wants and needs. Customer satisfaction requires
meeting customer expectations for products and services. When the company's
performance responds to customer desires, consumers will feel satisfaction
(Afthanorhan, Awang, Rashid, Foziah, & Ghazali, 2019; Al-Azzam, 2015). The
concept of consumer satisfaction is described as a personal sensation, joy (or
displeasure), arising from comparing the perceived performance of a firm to
customer expectations (Aymar & Joseph, 2019; Felix, 2017; Tohara et al., 2020).
Customer satisfaction is the customer's feeling towards product performance where
the customer has product expectations and is satisfied if the product performance
matches or even exceeds customer expectations (Pakurár, Haddad, Nagy, Popp, &
Oláh, 2019).
Customer relationship management is considered as one of the strategies to obtain

customer satisfaction because, in this strategy, the company seeks to maintain
relationships with customers. According to (Amuna, Al Shobaki, Naser, & Badwan,
2017; Hendriyani & Auliana, 2018; Suharto, 2016), customer relationship
management is a process and strategy that provides opportunities for companies to
maintain, identify and maintain profitable customers for sustainable relationships.
Customer relationship management is defined as an overall organizational process
of treating different customers in different ways to increase value for customers and
organizations.
Customer experience is the customer's impression of the output and services offered
by the company as a whole. According to (Situmorang, Rini, & Muda, 2017),
customer experience is an event that occurs and binds each individual personally.
An unforgettable experience and always remembered will determine the behavior
of the next customer can form. Companies that are able to give a memorable
experience will form strong relationships with their clients; therefore, these bonds
will cause customers to become fascinated with the items supplied. Customer
experience encompasses both the interaction with the business and the achievement
of value made possible by the firm's product or service offering. Due to the
subjectivity of customer experiences, they serve as the key source of competitive
advantage and distinction (Beyari & Ghouth, 2018; Imbug et al., 2018).
Following is a step-by-step explanation of the hypothesis based on the previous

overview of the literature:
405
Customer Relationship Management and Customer Experience
Customer relationship management includes knowledge about customers to
manage and serve customers better and use an approach based on customer needs
and interests (Yerpude & Singhal, 2018). Suppose the company can manage and
serve customers through a process based on customer needs and interests. In that
case, this will positively impact the customer experience when using the products
and services provided by the company. Customer experience is quality as
excellence and the customer's subjective reaction to a strange and direct experience
full of the company (Nobar & Rostamzadeh, 2018).
H1: There is a positive direct relationship between customer relationship

management and customer experience
Customer Relationship Management and Customer Satisfaction

Customer relationship management is the practice of preserving and creating
lucrative customer connections by giving a high level of customer satisfaction in
order to enhance customer loyalty through three actions, namely obtaining,
maintaining, and developing (Juanamasta et al., 2019). Maintaining relationships
with customers needs to be applied in a company because a harmonious relationship
in the long term will be profitable for the company and achieve customer
satisfaction. Customer satisfaction, according to (Chinomona & Dubihlela, 2014;
Tohara et al., 2020; Uma, 2015), is defined as the result of expectations for
perceived quality, the extent to which the perceived service performance meets
customer expectations or fails to meet previous expectations.
H2: There is a positive direct relationship between customer relationship

management and customer satisfaction
Customer Experience and Customer Satisfaction

Customer experience, according to (Bhattacharya, Srivastava, & Verma, 2019;
Nasermoadeli, Ling, & Maghnati, 2013), stems from a series of relationships
between customers and company services that lead to responses. These highly
personal experiences reveal different amounts of customer involvement (rational,
emotional, sensory, physical, and spiritual). The relationship between customers
and customer service will lead to a positive response to customer satisfaction.
Customer satisfaction may be seen as an encounter based on a particular service
and contributes to customer loyalty, repeat purchases, word of mouth promotion,
and higher profitability (Ban & Kim, 2019).
H3: There is a positive direct relationship between customer experience and

customer satisfaction.
Based on this brief description, the next constellation of research to be carried out
can be described:
406
ξ1
H1 H3
H2
η1 η2
Figure 1: Research Constellation

Description:
ξ1 : Customer Relationship Management
η1 : Customer Experience
η2 : Customer Satisfaction
3. Research Methods
This research follows a descriptive and quantitative flow and uses a survey method.
The study was conducted on respondents in a shopping center in Lampung Province
and used a sample of 135 respondents. Obtaining data using non-random sampling
method, and the technique used is purposive sampling. Using a closed design and
instrument, the response rate is calculated and sent directly to the responder. This
design is intended to boost the response rate. The instrument is evaluated using
validity, reliability, construct reliability, and variance retrieved using Lisrel 8.8 on
a Likert scale ranging from 1 to 5.
The analysis requirements test in the structural model applies homogeneity,

linearity, and normality (Tommasetti, Singer, Troisi, & Maione, 2018). In addition
to preparation, compilation, and finalization, the authors predicted whether
respondents would be interested in participating in the study and would be able to
complete the questionnaires. After conducting the research, of the 200
questionnaires given, the authors obtained a response of 150 (75%) respondents
which then could be processed by 135 respondents (67.5%) of the total respondents.
Data analysis used Structural Equation Modeling (Khunsoonthornkit &
Panjakajornsak, 2018).
4. Results
Testing Requirements Analysis
Normality test.
The normality test of the data comprises the collection of distribution-related data,
regardless of whether the data are normal or not.
Table 1. Normality Test Results

Variable Value α Value Sig. Conclusion
Customer Relationship 0,05 0,571 Fulfil
Management(ξ1)
Customer Experience (η1) 0,05 0,449 Fulfil
Customer Satisfaction(η2) 0,05 0,084 Fulfil
Source: Processed data (2022)
407
Homogeneity Test
The homogeneity test aims to discover whether the variance of a portion of the
tested data is derived from a population with the same variance, or if the variance
is heterogeneous.
Table 2. Homogeneity Test Results

Variable Value α Value Sig. Conclusion
η1over ξ1 0,05 0,813 There are data similarities
η2over ξ1 0,05 0,102 There are data similarities
η2over η1 0,05 0,050 There are data similarities
Linearity and Regression Test

The goal of linearity and regression tests is to establish the relationship between
variables by considering whether or not each variable forms a significant linear and
regression line.
Table 3. Linearity and Regression Test Results

Sig. Lin.
Regression Linearity
Variable Regression Regression
Significance Regression
fvalue ftable tvalue ttable
η1 over ξ1 1,20 2,67 Significant 3,39 1,65 Linear
η2 over ξ1 2,15 2,67 Significant 4,15 1,65 Linear
η2 over η1 1,47 2,67 Significant 3,94 1,65 Linear
Construct Reliability and Variance Extracted Test Customer Relationship

Management (ξ1)
The construct's capacity to assess the exogenous latent variable (ξ 1) was determined
by examining the manifest variable.
Table 4. Calculation of Construct Reliability and Variance Extracted (ξ1)
Std Std
Indicator Error CR VE
Loading Loading²
X1 0,74 0,55 0,46

X2 0,81 0,66 0,25
X3 0,88 0,77 0,22 0,57 0,83
X4 0,49 0,24 0,76
Total 2,92 2,22 1,69
According to the table's calculations, the value of the construct Relationship

Management is 0.57 less than 0.70 (CR 0.70), while the variance of the average
extracted value is 0.83 more than 0.50 (VE > 0.50). This demonstrates that the four
manifest variables consistently assess the variable ξ1 1.
408
Construct Reliability and Variance Extracted Test Customer Experience (η 1)
The capability of the construct to evaluate the endogenous latent variable (η 1) was
determined by examining the manifest variable.
Table 5. Calculation of Construct Reliability and Variance Extracted (η 1)
Std Std
Loading Loading²
Y1 0,69 0,48 0,52

Y2 0,74 0,55 0,46
Y3 0,82 0,67 0,33 0,52 0,81
Y4 0,63 0,40 0,61
Total 2,88 2,09 1,92
According to the test findings shown in the table above, the customer experience
construct value is 0.52 less than 0.70 (CR 0.70), while the average value extracted
variance is 0.81 more than 0.50 (VE > 0.50). This demonstrates the congruence of
the four manifest variables used to evaluate the variable η 1.
Construct Reliability and Variance Extracted Test Customer Satisfaction (η 2)

The ability of the construct to evaluate the endogenous latent variable (η 2) was
assessed by evaluating the manifest variable.
Table 6 Calculation of Construct Reliability and Variance Extracted (η 2)
Std Std
Loading Loading²
Y5 1,03 1,06 0,07

Y6 0,57 0,32 0,67
0,52 0,73
Y7 0,40 0,16 0,71
Total 2,00 1,55 1,45
The calculated value (Customer Satisfaction) is 0.52 less than 0.70 (CR0.70), while
the extracted average value variance is 0.73 more than 0.50 (VE>0.50) based on the
preceding table of test results. This indicates that the three manifest variables
measure the variable η1 consistently.
T-value Coefficient Calculation Results

After evaluating the requirements analysis, the next step is to compute and test each
coefficient route as shown in the table below:
409
Table 7. Path Coefficient Results
Path Coefficient (ξ and η)
No Variable Result Conclusion
SLF* tvalue
1. η1 over ξ1 0,40 3,74 H1accepted Significant
2. η2 over ξ1 0,15 1,96 H2accepted Significant
3. η2 over η1 0,60 6,01 H3accepted Significant
Substructure Path Coefficient 1

η1 = γ11ξ1 + ζ1 is the form of the obtained path coefficient analysis model for
substructure 1. This test will answer the question of whether to test hypothesis 1.
Figure 2. Substructure Path Coefficient 1
Based on the results of testing substructure 1, the path coefficient is obtained

(γη1ξ1), the value is 0.60, tstatistics value = 6.01>t-list (0.05: 135) = 1.65, so Ho is
rejected and the path coefficient γη1ξ1 is significant.
Substructure Path Coefficient 2

η2 = γ21ξ1 + β21η1 + ζ2 is the form of the obtained path coefficient analysis model
for substructure 1. This test will offer an answer to the question of whether to test
hypotheses 2 and 3.
Figure 3. Path Coefficient of Sub Structure 2
410
In the sub-structure test 2 findings, the path coefficient (γη2ξ1) is 0.15 and the value
of tstatistics=1.96>t-list (0.05: 135) = 1.65, hence Ho is rejected and the path
coefficient γη2ξ1 is significant. The path coefficient (βη2η1) is 0.40, and the value
of tstatistics = 3.74>t-list (0.05: 135) = 1.65; hence, Ho is rejected, and the path
coefficient βη2η1 is significant.
Calculated using the path coefficient and t statistics value for testing hypotheses. The
explanation is provided that the standardized loading factor value of all route
coefficients is more than 0.05 and t statistics is greater than 1.65; thus, Ho is rejected
and three lines are statistically significant. The following simultaneously describes
the conventional solution method for each variable based on a linear program's
structural connection.
Figure 4. Standardized Solution Path Diagram

In Figure 3, the link between exogenous variables (ξ) and endogenous variables (η)
is impacted indirectly and globally by the standardized solution trajectory scheme
and the direct influence, respectively. On the basis of the output of the linear
structural connection regarding the standardization of the whole impact. It states
that: (1) the amount of the impact ξ1 to η1 and ξ1 to η2 is equal to the size of the
direct effect of each variable since there are no other mediating factors; and (2) the
indirect effect of ξ1 to η2 through 2 is 0.40 x 0.60 = 0.24, while the overall effect is
0.24 + 0.15 = 0.39.
Figure 5. T-value path diagram

411
Overall Model Fit Test
Following is a list of the goodness-of-fit conclusions based on the structural model
test results.
Table 8. Summary of Model Fit Test Results (Goodness of Fit)

No Index Result Recommended Conclusion
Value
1. OpportunityX2 0,008 <0,05 Approach
2
2. X /df 1,86 <5 Suitable Model
3. “RMSEA” 0,068 <0,08 Suitable Model
4. “AGFI” 0,87 <0,90 Approach
5. “GFI” 0,92 >0,90 Suitable Model
6. “CFI” 0,97 >0,90 Suitable Model

7. “NFI” 0,93 >0,90 Suitable Model
8. “NNFI” 0,95 >0,90 Suitable Model
9. “IFI” 0,97 >0,90 Suitable Model
10. “RFI” 0,90 ≥0,90 Suitable Model
11. “ECVI” 0,88 <5 Suitable Model
Based on Lisrel's output, the overall fitness of the model using 2test (chi-square)
yielded a Weighted Least Squares chi-square value of 70.73 with a p-value of 0.008
<0.05; hence, it was determined that the overall χ2 test results did not match.
Moreover, the value of χ2 divided by the degree of freedom (χ2 / df) is 70.73/38 =
1.86 <0.05. Therefore, It may be extrapolated that the control of the model's
completeness, represented by the number of pressures of freedom, has a decent fit.
RMSEA must be less than 0.08 for the constructed model to be deemed satisfactory.
GFI, CFI, NFI, NNFI, IFI, RFI, and ECVI all exhibit test results with magnitudes
more than 0.90, thus it can be determined that the model has a good fit. In contrast,
AGFI demonstrates test findings that are less than 0.90, so it can be agreed that the
model has a bad fit.
Positive Direct Effect of Variable Customer Relationship Management (ξ 1) on

Variable Customer Experience (η1)
Customer relationship management (ξ1) has a direct beneficial influence on
customer experience (η1). The results of this research indicate a direct positive
influence of variable ξ1 on variable η1 with a value of tstatistics>t-list, which is
3.74>1.65, hence hypothesis 1 is approved. The outcomes of this investigation are
consistent with the conclusions drawn by (Badwan, Al Shobaki, Naser, & Amuna,
2017).
The meaning of this hypothesis test explains that if the indicators of customer
relationship management are improved, including improving the management of
relationships with consumers, improving activities before and after transactions,
improving the analysis of information obtained about customers, and improvements
412
in handling consumer complaints, then the quality of transactions, reviews positive
attitudes about products also services, the desire to recommend products and
services to others, and the intensity of business strategies and social communities
for the better.
Positive Direct Effect of Variable Customer Relationship Management (ξ1) on

Variable Customer Satisfaction (η2)
Customer relationship management (ξ1) has an immediate, positive effect on
customer satisfaction (η2). The results of the research reveal that variable ξ1 has a
direct positive impact on variable η2 with a value of tstatistics>t-list, precisely
1.94>1.65, hence it is reasonable to conclude that hypothesis 2 is correct. This
study's results are consistent with the conclusions reached by (Faraj Aldaihani et
al., 2020).
The findings from this hypothesis test explain that if the approach taken by
management in managing relationships with consumers is improved, activities
when making transactions and activities after making purchases are increased, there
are efforts to improve the management of information about customers, and
improvements are made in handling consumer complaints, Then the emotional
reasoning power of consumers when comparing products received and expected to
be better, better attitudes and emotional reactions to service providers, increased
desire to return to using products, and increased loyalty to the use of company
products or services.
Positive Direct Effect of Variable Customer Experience (η 1) on Variable

Customer Satisfaction (η2)
Customer experience (η1) has a direct beneficial influence on customer satisfaction
(η2). The findings of this research reveal that variable η1 has a direct positive impact
on variable η2 with a value of tstatistics>t-list, which is 6.01>1.65, therefore
supporting hypothesis 3. This study's results are related to the conclusions reached
by (Klaus & Maklan, 2013; Ristawati, Saufi, & Rinuastuti, 2019).
The findings of this study explain that if the customer experience indicators are
improved, namely the quality of interactions with customers, positive reviews about
products or services, an emotional desire to provide product and service
recommendations to others, and an increase in the quality of business strategies,
consumers will feel a sense of conformity. between the product received and what
is expected, so that the desire to provide recommendations to others becomes
stronger.
5. Conclusions and Suggestions

Research indicates that customer relationships have a direct impact on consumer
satisfaction or experience. Customer relationship management significantly
influences customer satisfaction in a direct manner. Customer experience has an
immediate positive impact on customer satisfaction. It can be interpreted that the
company's strategy in maintaining, managing, and maintaining relationships with
customers can have an excellenteffect and even impress to improve the customer
413
experience in using the products and services provided by the company.
Maintenance of relationships with customers carried out by the company with an
approach based on customer needs and interests greatly influences customer
expectations of the company's products and services so that customers can feel
satisfaction. The memorable experience obtained by customers in using a
company's product or service can achieve customer satisfaction. It significantly
affects the company's profitability.
Based on the conclusions we made, the implication is that there must be efforts
made by management to improve the management of relationships and transactions
with consumers, both when consumers make purchases or after making purchases.
Management can manage important information about consumers when purchasing
activities occur, and handle complaints that arise as a result of process weaknesses
when conducting transaction activities.
Improvements in customer relationship management by the company will lead to

an increase in business strategy in the process of interaction between companies
and consumers. Consumer reviews of products and services received will also be
more positive. So that Consumers will endorse the company's goods and services
without hesitation to other people or social communities.
Improvements made by management regarding relationship management and

consumer experience will lead to better customer satisfaction. Consumer attitudes
are related to emotional reactions about the product or service received, and the
urge to reuse the products and services of the company for the better. Although in
the context of this research, other studies are still needed that use variables that have
not been used in this study.
No research is without weaknesses. Of course, this study also has limitations. The
first relates to the sampling technique. As previously mentioned, purposive
sampling is the sampling method used to identify the sample based on particular
features. Of course in this technique, the number of samples selected is not fully
representative of the other samples. Therefore, to generalize this research to
consumers in similar industries or other industries, it must be done carefully.
The second limitation relates to the individuals surveyed, namely the visitors to the
shopping center. Meanwhile, on the other hand, the market's ability to absorb
products or services produced by the company is also determined by the
competence and communication skills of employees or marketers, so research on
attitudes and behavior using employees or marketers also needs to be done.
Currently, the competence of marketers to support marketing performance is

complemented by the ability to use technology in internet communication media.
So that the ability of a product or service on the market is not only supported by the
quality of products and services but is also determined by the ease of access to
information using internet technology when making a purchase transaction. So
414
research on internet communication in supporting the sale of a product or service
still needs to be done.
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Journal of Entrepreneurship & Business, Vol. 04, No. 02 (2023)
Journal of Entrepreneurship & Business
Journal homepage: https://journal.ubaya.ac.id/index.php/jerb
The Influence of Brand Equity on Brand Loyalty

of Adidas Shoes Mediated by Customer Satisfaction
Maria Isabel Clarisa

Management Department, Universitas Katolik Widya Mandala, Surabaya, Indonesia
Lena Ellitan*
Visi Saujaningati Kristiyanto

Article Info Abstract

Pupose: This study aims to analyse the influence of brand equity on
Keyword: brand loyalty of Adidas shoes mediated by customer satisfaction. The
Brand Equity, Brand Loyalty, data used was collected through google form. The researcher collected
Customer Satisfaction, Brand 180 respondents which domiciled in Indonesia, 17 – 50 years old, and
Awareness, Brand Association has the experience of minimum 6 – 12 months using Adidas. The data
will then processed using Smart PLS 3.0 under the method of SEM
JEL ClassificationCode: M2, M31 (Structural Equation Model Method).
Method: The sampling method used is purposive sampling and non-

Corresponding author: probability sampling technique. The purpose of this technique is not to
lena@ukwms.ac.id provide equal opportunities for members of the population to be
selected as samples. Meanwhile, purposive sampling is a sampling
DOI: 10.24123/jeb.v4i2.5483 method through consideration of selecting the most profitable research
subjects to provide the required information. The sample criteria used
by the author in this study are as follows: 1. Domiciled in Indonesia 2.
Minimum age 17 – 50 years old 3. Have the experience of using Adidas
Shoes (minimal 6 months – 1 year). The data that has been collected
will be processed into information using the SEM - PLS (Structural
Equation Modelling - Partial Least Square) method. This method aims
to develop concepts in exploration. This method emphasizes
understanding the variance of a dependent variable when examining
the research model.
Result: Researcher found that physical quality and brand identification

do not have significant influence on customer satisfaction. While trust
and environment have significant influence on customer satisfaction.
Lastly, customer satisfaction has significant influence on brand
loyalty.
INTRODUCTION
The development of the fashion world is a very interesting topic to be discussed. Especially,
about the development of fashion clothing, accessories, shoes, and many others. In this case, people's
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preferences for fashion also differ from one another. In addition, the perspective or views held by the
community also have an influence on the development of trends. These diverse perspectives and
preferences increase the pace of fashion development in a certain period. As a result, fashion can be
categorized as one of the disruptive fields. The term disruptive refers to something that changes rapidly
and massively. Given, most people have been more concerned about their appearance. We can
observe this concretely in Indonesian society. The citizens like to innovate and combine different
fashion styles on various occasions. So, Indonesia can be considered as a location for the development
of fashion industry.
These days, Indonesian people are not only focused on the development of clothing and
accessories. But also focuses or follows the development of shoe trends. This is because shoes are
valued as a support or complement to one's appearance. So, it is important for them to choose and use
the proper yet fashionable footwear. As time goes by, more people are starting to show their fondness
for shoes or sneakers. Not only that, they also began to have a sensitivity to the quality of the products
(shoes) used and build their own standards of satisfaction. Through their sensitivity and standards,
customers will be able to get the right product. In this context, the right product is the one which has
high quality, safe, fashionable, and affordable price. These things should be used as the basis for the
creation and development of products (shoes). Thus, the resulting product is in accordance with the
expectations of customers.
However, the product developer must also consider the dynamics of the ongoing fashion trend
in that period. Not only that, developers also need to identify and understand the potential that exists
in the marketing area. These actions are taken to find the right business strategy and maximize product
output. These products will be able to compete and survive in the market. When it comes to its
potential, Indonesia is the fourth largest producer of footwear in the world. Indonesia is in fourth place
after China, India and Vietnam. Specifically, Indonesia contributes 4.6% of the total shoe production
in the world (Kementrian Perindustrian Republik Indonesia, 2019). Footwear industry also makes a
major contribution to the national income (in the manufacturing sector). Based on published data, in
2017 the contribution made was 2.22% and 9.24% in 2018 (Kementrian Perindustrian Republik
Indonesia, 2019).
Regarding to the trend development, shoe business and industry have positive prospects in the
future. Based on the statement from the CEO of USS Networks, the trend of shoes or sneakers in
Indonesia was initially influenced by the R n B and Hip - Hop music genres (CNN Indonesia, 2018).
As a result, various types of shoes appeared. For example, the Adidas Yeezy shoe which is currently
becoming trending (CNN Indonesia, 2018). The creations, colours, and shapes of sneakers are now
very diverse. Sneakers or shoe models can be classified into New Generation and Timeless Classic.
Timeless classic is a type of sneakers that will not experiencing changes. It is because the form itself is
patented, it is just that a series of manufacturers are rolling out new types with different colours. One
type of new generation shoe is Air Jordan (CNN Indonesia, 2018). Along with the changes that have
occurred, sneaker products that were originally only used for sports have been transformed into
multifunctional shoes. These are the things that make Indonesia’s shoe industry become very
promising. There were 18,687 local business actors in this field, which include 18,091 small-scale
business units, then 441 medium-scale business units, and 155 large-scale business units (Kementrian
Perindustrian Republik Indonesia, 2019). On the other hand, well-known sneakers manufacturer
brands such as Vans, Puma, Adidas, and Nike also enliven the country's industry (Kementrian
Perindustrian Republik Indonesia, 2019).
Based on the description and considerations that have been presented, researcher decided to
choose the Adidas shoe as the object of research. Adidas shoes can be considered an interesting object
of research. This is because the developer has a positive reputation as one of the second largest
sportswear developer brands in the world. Not only that, the quality and good performance of the
product has been proven. Regarding to this statement, Adidas shoes or sneakers have become the "Top
of Mind" of almost all Indonesian people. Another thing that the researcher find interesting is the
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mechanism the company uses to develop and maintain product quality. This has a positive impact on
the brand equity of Adidas and customers loyalty. Not only that, the researcher also interested in the
methods which Adidas uses to build substantial customer engagement and maintain customer loyalty.
Given that Adidas manufacture various model of sneakers.
Another thing that is no less interesting is the unique characteristics of Indonesian market.
Given that developing countries have good business prospects. The market characteristics also include
customers characteristics (price sensitivity and purchasing power) that differ in each market
segmentation. In addition, shoe products are also a favorite of them. In addition, they are also very
sensitive to ongoing fashion developments. As a result, they will tend to collect certain edition shoes.
As a result, they will tend to collect certain edition shoes. In other words, shoes are not only
categorized as secondary needs, but also as tertiary needs. Other supporting evidence is that some
people choose to use various types of shoes to support their activities. The types of shoes in this
context, are running shoes, futsal shoes, basketball shoes, hiking shoes, and walking shoes. In the end,
the Indonesian market can be said to be a prospective business field for Adidas.
This statement can be proven by the Top Brand Index (TBI) of Adidas in 2018. These percentage
are described as follows:
Figure 1. TBI of Favorite Sportswear Developer in 2018
Based on the displayed pie chart, it can be proven that Adidas has successfully became Top
Sportswear developer in 2018 at Indonesia. This means Adidas won the competition against its
competitors. Also, Indonesian customers have such high preference on Adidas’ sport shoes. As result,
they will be thinking several times before switching to other products.
The followings are the comparison of Adidas’s Top Brand Index (TBI) of Adidas in 2019 and
2020. The percentage are described as follows:
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50
40
30
20
10
0
Adidas Nike Ardiles Reebok Diadora
TBI 2019 TBI 2020
Figure 2. Comparison of Favorite Sportswear Developers' TBI in 2019 and 2020
Based on the bar charts which have been displayed above, we know that Adidas has constantly
maintain its position as Top Sportswear developer in Indonesia. In 2019 its TBI is 37%, while in 2020
is 38.6%. The index of 2019 appeared to be smaller than 2020, because of the decrease in sales.
Decreasing sales occurred because of the reduction in customer purchasing power in the era of
pandemic.
Despite of the dynamics of Adidas’ TBI, the brand is still the dominating the market of
Sportswear in Indonesia. This means, Adidas has good brand loyalty. A good brand loyalty shows
that customers have high enthusiasm in purchasing products of Adidas. Actually, the brand offers
varied, safe, and high-quality products. Thus, it can fulfill customers’ needs and also increasing their
satisfaction and trust.
Based on the description that has been given, the author chose the title "The Influence of Brand
Equity on Brand Loyalty of Adidas Shoes Mediated by Customer Satisfaction". This research was
conducted to measure customers loyalty of Adidas shoes in terms of brand equity.
Product quality can be interpreted as the nature, function of the product, and the physical
condition of the product (Ibnu, 2020a). This is based on the level of quality that has been adjusted to
the reliability, durability, and suitability made to ensure customer needs and satisfaction. Quality is
not limited to product output, but includes the quality of processes, people, and the environment. In
addition, this element is a determining factor for business success. In other words, product quality is
a measure of customers interest in the products offered.
In this context, product quality related to durability, reliability, performance, ease of operation,
accuracy, and attributes (Riadi, 2020). Not only that, keep in mind that, every customer has a different
perception of the quality of a product. These perceptions can be classified into Value based approach,
User based approach, Product based approach, Manufacturing based approach, and Transcendental
approach (Ibnu, 2020a).
The physical quality of the product is also an attribute that completes a product. This statement
was made by Armstrong and Kotler (Riadi, 2020). The physical quality of the product can be improved
through the TQM (Total Quality Management) system. This system should be based on decentralised
approach which involves all levels of employees to make continuous improvements through their
enthusiasm (Guru Ekonomi, 2022).
Brand identification or brand identity can be understood as elements that can be seen in a brand
(Junaedi, 2022). These elements in the form of design, colour, and logo that distinguish a brand from
others (Tarver, 2020). In order to highlight its uniqueness, a brand must build an identity properly.
Therefore, a brand is expected to have a cohesive, consistent, and strong identity. Related to this
statement, brand identity is seen as one of the crucial elements.
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The identity attached to a brand reflects the values and personality of the brand. This personality
will later build public opinion. If a brand succeeds in building a good identity, then customers trust
and loyalty to a brand will increase. A strong brand identity provides significant benefits for a product.
The benefits received by the company are the ease of obtaining professional references, increasing
distribution access, also increasing the number of loyal customers (Highlight Media, 2020).
Generally, branding (identity formation process) involves 2 parties. The parties involved are
producers and customers (Darisman, 2020). Manufacturers play a role in creating and shaping brand
identity in the market. Then, performing the preparation of marketing strategies that will facilitate
product identification. Meanwhile, different things are found through the customers' perspective.
Customers' feelings and perceptions determine the popularity of a brand among the public
Customers trust is all customers knowledge related to a number of attributes possessed by a
product and the benefits contained therein (Riadi, 2021). Mowen and Minor put forward customers
trust as the overall knowledge and conclusions of customers about products, attributes, and inherent
use values. The characteristics of customers trust can be divided into Trusting Intention and Trusting
Belief. The statement was made by MCKnight (Riadi, 2021).
Customers trust is one of the determining factors for the success of a business. Where, the trust
given by customers must be interpreted appropriately. Meanwhile, a business needs to build long-
term relationships with relevant stakeholders. With the trust given, the company will be able to build
long-term relationships with customers. In order to build long-term relationships, a company must
pay attention to several things. First, companies must have an open attitude towards customers
(Morrow, 2020). That is, the company is open about detailed product information and the impacts
that may arise.
Business environment is a combination of institutions, individuals, human resources, natural
resources, and various other components (Ibnu, 2020b). More specifically, the elements that make up
this environment are customers, competitors, government, technology, economic conditions, and
market conditions. These components have a significant influence on the running of a business.
Therefore, business people need to have an understanding of the dynamics of the environment. This
is done so that the company is able to take advantage of existing opportunities and respond to
emerging changes.
Through sensitivity to the environment, a business will be able to adapt to changes that occur.
In the sense that the company is able to adapt its operational strategy to its environmental conditions.
In addition, companies will also have the ability to design effective and efficient plans and policies. As
a result, the company is able to run its business sustainably. Since the environment has a big role in
running a business. The intended environmental conditions include the competitive climate in it.
In addition to business competition factors, there are still many other potential external and
internal factors. Factors have to be taken into account in the environment analysis of a business
(LinovHr, 2020). These factors are mainly threats and weaknesses that can harm the company
externally and internally. If not handled immediately, this can hamper the running of a company's
business. The delay in the company's business cycle will automatically reduce product quality
According to Brown, customers satisfaction is defined as a situation where the needs, desires,
and expectations of customers are met for a product (Ratih, 2020). This satisfaction is described in
more detail in “The Expectancy Disconfirmation Model”. This theory involves a comparison between
expectations Customers satisfaction itself is influenced by several factors. These factors include
communication, convenience, customer expectations, perceived quality, perceived product value, and
complaint handling (Patel, 2020). The influence given by each element depends on the characteristics
of the market segment to be served. Given that each market segment has its own peculiarities. As a
result, the approaches taken cannot be equated.
Customer satisfaction is also an important element in business activities. This is a determinant
of the business activity cycle. If customers are not satisfied with the products offered, the company is
obliged to make the necessary adjustments and vice versa. Companies must be able to understand
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customers, be open to customers opinions and suggestions, act proactively, carry out operational
activities honestly, develop products creatively, and improve product quality. Not only that, this can
also be done through customers satisfaction surveys, lost customer analysis, and accommodating
customers complaints. Through these steps, the company is able to know more concrete customer
needs. Customers will be satisfied if they get quality, unique products, following trends, and having
affordable prices.
Brand loyalty is a pattern of customers behaviour that shows their commitment to a product or
brand (Avriana, 2021). The commitment in this context is shown through repeated or continuous
product purchases. This loyalty is motivated by customers confidence in certain brands. High level of
brand loyalty brings significant benefits to a brand. The higher the brand loyalty, customers will
continue to make purchases without being affected by the increase in product prices. This is due to
customers thinking that other brands do not have better quality.
Thus, loyalty to a brand must be increased. Efforts that can be made are to increase brand
engagement, introduce brand values, and maintain brand consistency. Brand engagement can be
increased through intense promotions carried out by brand developers. Brand Loyalty provides several
benefits for the development of the company. For example, attracting new customers, increasing sales,
reducing marketing costs, and as a means of responding to competitor threats (Ibnu, 2021).
According to the problem formulation, research objectives, and theoretical basis which have
already given, we can identify set of variables used in this research. Brand equity can be broken down
into physical quality, brand identification, trust, and environment. These variables can be classified as
independent variable. On the other hand, brand loyalty is the dependent variable. Both independent
and dependent variable are being mediated by customer satisfaction.
Figure 3. Research Framework

Source: Fouzia Ali, Salma Muqadas (2015)
RESEARCH METHODS
The research conducted by the author is causal research. Through this research, the writer
examines the causal relationship between the variables being studied (Mas Akrom, 2020). The relation
meant in this case is the relation (relationship) between the dependent variable, mediating variable,
and independent variable. This reciprocal relationship can be found through the process of observing
the data that has been provided. The independent variables used are physical quality, brand
identification, environment, and trust. Meanwhile, the dependent variable used is brand loyalty. This
independent and dependent variable is mediated by customer satisfaction (intervening variable).
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In this study, the authors used primary data sources. Primary data are obtained directly from
the source. This primary data can be obtained through the process of field research (Prabandari, 2020).
In this context, the role of primary data appears in solving the problem formulation in the research or
research being conducted. In addition, primary data can also be used as a reference for planning and
evaluation sources.
The sampling method used is purposive sampling and non-probability sampling technique. The
sample criteria used by the author in this study are as follows: (a) domiciled in Indonesia, (b) minimum
age 17 – 50 years old, and (c) have the experience of using Adidas Shoes (minimal 6 months – 1 year).
Researcher collected the data needed through Google form. The data will then be processed by
utilising Smart PLS 4.0, under the method of SEM (Structural Equation Model).
RESULTS & DISCUSSION

According to the hypothesis test, physical quality does not give significant influence towards
customer satisfaction. A total of 27.6% customers has neutral perception of Adidas’ competitiveness
in terms of quality. Only 25.4% customers stated that Adidas has high competitiveness in terms of
quality. On the other hand, a total of 34.8% of customers stated that Adidas’ has a very varied design.
Referring to the statements, it can be observed that some customers make purchases because of
satisfaction with products’ variation. Moreover, based on the data gathered, Adidas’ level of
serviceability is relatively low. This level indicates that Adidas’ shoes are quite hard to repair. As a
result, quality does not have significant effect on customer satisfaction.
Table 1.
Hypothesis Testing Result
Path T– Cut P–
Path Result
Coefficient Statistics off Statistics
PQ – CS 0.153 1.878 1.96 0.060 NOT
SIGNIFICANT
BI – CS 0.015 0.409 1.96 0.683 NOT
SIGNIFICANT
T – CS 0.502 5.544 1.96 0.000 SIGNIFICANT
E – CS 0.304 3.180 1.96 0.001 SIGNIFICANT
CS – BL 0.840 32.116 1.96 0.000 SIGNIFICANT
PQ – CS – 0.128 1.910 1.96 0.056 NOT
BL SIGNIFICANT
BI – CS – BL 0.013 0.410 1.96 0.682 NOT
SIGNIFICANT
T – CS – BL 0.422 5.292 1.96 0.000 SIGNIFICANT
E – CS – BL 0.255 3.109 1.96 0.002 SIGNIFICANT
Brand identification does not give significant influence towards customer satisfaction. This
statement is in line the research of Sudjudi Widia Kurnianingsih and Sri Vandayuli Riorini (2021).
Previous research stated that brand identification does not have a positive effect on customers’
satisfaction. Meaning, a strong brand identification will not be the guarantee of high customers’
satisfaction. It can be assumed that Adidas’ branding strategy is not too optimal. As result, the image
and messages which are conveyed have not fully succeed influencing customers’ perception. Thus,
there are still many people who only know the brand, but without having strong positive perception
towards the brand and offered products. This phenomenon allows customers to start making
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consideration of using another brand. Concretely, customers tend to consider using other brands in
the same class.
Trust gives significant influence towards customer satisfaction. The statement is in line with the
one from the research of Fouzia Ali and Salma Muqadas (2015). Previous research stated that trust
has a relationship with customer satisfaction. Through the current research, it is known that there is
high level of customers’ trust. Customers believe that Adidas’ shoes products have undergone
thorough continuous improvement. Basically, continuous improvement seen as essential creative
action in establishing credible product. Whereas, it can support its customers’ daily activities. Product
credibility which becomes the focus is including product safety. Referring to the statement, product
safety is considered as dominant influencing factor of trust. High level of trust will increase customers’
satisfaction.
Customer satisfaction gives significant influence towards brand loyalty. Fouzia Ali and Salma
Muqadas (2015) stated that customer satisfaction has a relationship with brand loyalty. Based on the
collected data, it is known that there is high level of brand loyalty. Adidas’ customers are becoming
loyal because of their satisfaction towards the products. Customers’ expectation is not only about
products’ quality and features attached. It is also about accessibility, responsiveness, and of course
Adidas’ capacity of convincing customers that its offered products are reliable.
Moreover, by actualizing these principles Adidas has already achieve its success of attaining
good customer relationship. It brings some benefits for the brad. Customers are willing to give positive
word of mouth), recommending Adidas’ shoes to their colleagues, and performing repeat purchase.
This certainly will bring out more potential customers and the loyal ones. Meaning, it is not difficult
for Adidas to find loyal customers and this action will certainly lower the possibility of customers
switching to other brands.
In the context of mediating role, customer satisfaction does not mediate the relationship
between physical quality and brand loyalty. This happens because Adidas shoe products have a
relative low level of serviceability. As result, the repairing activity becomes costly. This weakness then
becomes the trigger of decreasing customers’ satisfaction which followed by the decrease of brand
loyalty.
Customer satisfaction does not mediate the relationship between brand identification and brand
loyalty. Based on the data that has been collected, the implementation of Adidas’ branding strategy is
not optimal. Due to the unoptimized strategy, Adidas does not have the capability to attain full
customer (public) engagement. Moreover, ineffective branding strategy resulting in customers’ low
interest of digging deeper about the brand. Prior to it, level of customers’ satisfaction will be low.
Customers will consider to use other brands which are in the same class. This phenomenon is also
caused by customers’ perception on the competitive advantage of numerous brands. As result,
someone will not only use Adidas shoes, but also others simultaneously. Finally, brand loyalty
towards Adidas becomes low.
Customer satisfaction mediates the relationship between trust and brand loyalty. This means
the eighth hypothesis is accepted. This is in line with the previous research of Fouzia Ali and Salma
Muqadas (2015). Previous research stated that trust has an impact on brand loyalty with the mediating
effect of customer satisfaction. Based on the collected data, Adidas has successfully attained high level
of customers’ trust, customers’ satisfaction, and brand loyalty. If customers are satisfied with offered
product, they will automatically put their trust to the brand. It is due to the efforts of continuous
improvement, convincing customers, and establishing good customer relationship. Customers will not
take a lot of consideration in trying other products which are developed by Adidas. They believe that
other products which are developed by Adidas will also become credible. Another proof is they are
still willing to purchase Adidas shoes despite the price increase.
Customer satisfaction mediates the relationship between environment and brand loyalty. This
is in line with the previous research of Fouzia Ali and Salma Muqadas (2015). Previous research stated
that environment has an impact on brand loyalty with the mediating effect of customer satisfaction.
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Adidas capability of choosing such good business environment will allow it to satisfy the customers
and finally making them loyal. Good business environment makes it easier for Adidas to establish the
right shoe product. Furthermore, Adidas’ volume of sales will keep on growing positively. Positive
growth of sales will then influence customers’ purchasing intention and preferences on a brand.
Through the progress, their satisfaction will also be increased. Moreover, Adidas must maintain its
products’ accessibility. In other words, the brand has to make sure that its products can be accessed
easily by customers. Otherwise, they will be switching to other products that considered to be more
economical. Based on the collected data, Adidas has high level of accessibility. Those things allow
Adidas to be successful in transforming the customers becoming the loyal.
CONCLUSION
Physical quality has no significant impact on customer satisfaction. According to the
findings, there are still several customers who are buying Adidas shoes just because of the
variations of design. Thus, they are not considering about the overall product quality. Less
significant influence also caused by the low level of serviceability of Adidas shoes.
Brand identification has no significant impact on customer satisfaction. In addition, Adidas
is still does not have the capability of highlighting its essential value. As result, public feels that
they are not connected with the brand.
Trust has a significant impact on customer satisfaction. In this case, customers are satisfied
because Adidas is very concerned about product safety. Moreover, product safety is a dominant
factor which affect the level of customers’ trust.
Environment has a significant impact on customer satisfaction. A positive business
environment is capable of increasing customer satisfaction. Choosing the right environment make
it easier for Adidas to adjust its marketing mix. Through the proper marketing mix, Adidas will
experience positive growth and followed by good prospects.
Customer satisfaction has a significant impact on brand loyalty. Loyalty will arise if
customers are satisfied with products offered by Adidas. In addition, it is essential for a brand to
meet customers’ expectations. Responsive service and good customer relationship are part of
meeting their expectation. Then, customers will show their loyalty by not turning to other brands.
Customers satisfaction does not mediate the relationship between physical quality and
brand loyalty. This is due to the low level of customer satisfaction toward Adidas’ shoe product.
The resulting shoes have a low level of serviceability. A low level of customer satisfaction is being
followed by low level of brand loyalty.
Customer satisfaction does not mediate the relationship between brand identification and
brand loyalty. Low brand identification will be followed by low customer satisfaction. This is
because of messages and values owned by Adidas are not successfully conveyed. As a result,
Adidas is not succeeded in attaining public engagement. Finally, the level of brand loyalty is
becoming low.
Customer satisfaction mediates the relationship between trust and brand loyalty. If the
customers are satisfied with Adidas’ shoe, then they will put their trust into the developing brand.
They will not be hesitated to try the other products developed by Adidas. It because they believe
that other products of Adidas are also credible. At the end, brand loyalty will be increased.
Customer satisfaction mediates the relationship between environment and brand loyalty.
Choosing the right business environment make it easier for Adidas to obtain loyal customers. This
is because the right environment allows Adidas to establish proper products and business
strategies. So that customers satisfaction will be increased. It is indicated by positive growth of
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sales which affects customers’ brand preference and purchasing intention. High level of customer
satisfaction will increase brand loyalty.
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Djamaludin, & Fahira. Journal of Consumer Sciences (2023), 8(1), 27-44
DOI: https://doi.org/10.29244/jcs.8.1.27-44
CONSUMER BEHAVIOR | RESEARCH ARTICLE

The Influence of Brand Trust and Satisfaction towards
Received: July 15, 2022
Consumer Loyalty of a Local Cosmetic Products Brand X
Accepted: October 28, 2022
among Generation Z
Moh. Djemdjem Djamaludin1*), Annisa Fahira2
*Corresponding author:
Moh. Djemdjem Djamaludin,
Department of Family and
Consumer Science, Faculty of
Human Ecology, IPB University, Abstract: The increasing demand for cosmetic products during the Covid-19
Bogor, Indonesia pandemic has encouraged companies to increase consumer trust and satisfaction so
E-mail: moh.dj@apps.ipb.ac.id that consumers remain loyal to one brand, including a well-known local cosmetic
product brand. This study aims to analyze the influence of brand trust and
satisfaction towards consumer loyalty of a local cosmetic products brand X among
Additional information is available generation Z. This study used a cross-sectional study design. Three hundred and
at the end of the article. eighteen respondents were collected by voluntary sampling. Data were collected
through Google Forms online questionnaire and processed Structural Equation
Modeling. The results showed that gender, age, education, and monthly income
were positively and significantly related to brand trust. Age, monthly income,
frequency of purchasing local cosmetic brand X, types of local cosmetic brand X
products purchased, and duration of use of local cosmetic brand X products have a
positive and significant relationship with consumer loyalty. The results of the SEM
show that brand trust positively and significantly influences consumer satisfaction
and loyalty. In addition, consumer satisfaction positively and significantly influences
consumer loyalty. The lack of consumer confidence in the materials used by brand X
in production indicates that consumer literacy regarding products still needs to
improve.
Keywords: brand trust, consumer loyalty, consumer satisfaction, generation z, local

cosmetic products
JEL Classification: D24, D81, L67
PUBLIC INTEREST STATEMENT

ABOUT THE AUTHORS
One of the company's challenges is maintaining
Moh. Djemdjem Djamaludin is an Assistant consumer loyalty so that consumers remain loyal
Professor of Social Marketing at the Department to brand X local cosmetic products. Our findings
of Family and Consumer Sciences, Faculty of show that brand trust has a significant direct
Human Ecology, IPB University, Indonesia. His effect on consumer satisfaction, and consumer
area of specialization is development satisfaction also directly affects consumer
communication. His courses include social loyalty. Brand trust does not affect consumer
marketing, family resource management, and loyalty directly but indirectly through the
consumer behavior. His latest research is about mediation of consumer satisfaction. Without
the satisfaction levels of IPB undergraduate customer satisfaction, loyalty cannot be achieved
students toward online learning services during only by brand trust. Before reaching the
the Covid-19 pandemic. He can be reached via satisfaction stage, consumers must feel safe and
moh.dj@apps.ipb.ac.id. trusted to encourage consumers to buy products
to consumers and finally decide to be loyal to
Annisa Fahira graduated from the Department of brand X. The level of brand trust, satisfaction,
Moh. Djemdjem Djamaludin Family and Consumer Sciences, Faculty of Human and consumer loyalty is still in the moderate
Ecology, IPB University, Indonesia. Thesis category. Therefore the company still make
research that she has done regarding the improvement of these three important aspects.
influence of brand trust and satisfaction towards
consumer loyalty of a local cosmetic products
brand A in generation Z. She can be reached via
annisa_fahira@apps.ipb.ac.id.
©2023 The Author(s). This open access article is distributed under a Creative Commons Attribution (CC-BY) 4.0 license
27
1. Introduction
The implementation of Large-Scale Social Restrictions (PSBB) has made people

reduce activities outside the home and shop more for life necessities online to
minimize the spread of the Covid-19 virus (Utari, Fitri, Setyanto, & Henny, 2020),
including shopping for cosmetics. Rahma and Idrus (2022) said that people have
more time to take care of themselves at home during the Covid-19 pandemic, so the
demand for cosmetic products is increasing and becoming a trend. This makes the
cosmetic industry use digital media more for product marketing (Dinillah, Gunawan,
& Sinansari, 2021). Generation Z, a generation familiar with the internet, takes
advantage of this situation by buying cosmetic products online. In addition,
generation Z is known to pay more attention to their appearance through routine
skin care (Wardah & Harti, 2021). Therefore, most of their spending is used to shop
for cosmetic products (ZAPClinic.com., 2020).
The development of the globalization era makes the competition for various
cosmetic products very tight (Nyonyie, Kalangi, & Tamengkel, 2019), so companies
must retain consumers as a way to survive (Haryono & Octavia, 2014). Brand X is one
of the well-known local cosmetic product brands. Even though sales of brand X local
cosmetic products are already high in the market, consumers still give low ratings
(reviews) of these products on Shopee e-commerce. Consumers submit product-
related complaints indicating that consumers are disappointed, distrustful,
dissatisfied, and disloyal to local cosmetic product brand X. Generation Z highly
depends on product evaluation in making purchases (ZAPClinic.com., 2020). Such a
low rating is thought to reduce trust and satisfaction, leading to a decrease in the
loyalty of Generation Z to local cosmetic products brand X.
Consumer loyalty is a consumer's commitment to a product that is shown by
repeated buying behavior for the same product. Consumer loyalty can be caused by
brand trust and satisfaction that is already in the minds of consumers (Dewi, 2017).
Brand trust is a feeling of security that consumers have that the brand will meet
their consumption expectations (Delgado-Ballester & Munuera-Aleman, 2001).
According to Rangkuti (2011), consumer satisfaction is the response or reaction of
consumers to the discrepancy between the level of expectations and the actual
performance that is felt after use or usage. Consumers who feel trust and
satisfaction will commit to continue using products or services that have been felt
repeatedly (Aini, 2020). Consumers loyal to a product will maintain the product and
will not easily switch to another product. The formation of brand trust and
consumer satisfaction makes good cooperation or relationships between consumers
and companies.
Research with local cosmetic product brand X as the object has yet to be done
much, especially on local cosmetic product brand X on consumers of generation Z in
Greater Jakarta. Previous research on local cosmetic product brand X used several
different variables from those in this study, including word of mouth, digital
marketing, purchasing decisions, product quality, price, purchasing decisions,
consumer motivation, and consumer buying interest.
Based on the description above, this study aims to (1) identify the characteristics of
the respondents (demographic and socio-economic), the pattern of buying the local
cosmetic brand, brand trust level, satisfaction level, and loyalty level of Generation
Z users of a local cosmetic products brand X; 2) analyze the relationship between
respondent characteristics (demographic and socio-economic) and pattern of buying
a local cosmetic brand with brand trust, consumer satisfaction, and consumer
loyalty of a local cosmetic products brand X among generation Z; and (3) analyze
the influence of brand trust and consumer satisfaction towards consumer loyalty of
a local cosmetic product brand X among generation Z.
The grand theory used in this research is consumer behavior (Sumarwan, 2014)
which explains that attitude is an important factor influencing consumer decisions.
The concept of attitude is closely related to belief and behavior. Attitude describes
consumer confidence based on their knowledge that a product has various attributes
and benefits. In a decision process, consumers will not stop only until the
28
consumption process. Consumers will conduct an evaluation process of the

consumption that has been done, called the post-consumption evaluation process.
The result of the post-consumption evaluation is that consumers are satisfied or
dissatisfied with the consumption of the product or brand that has been done.
Satisfied consumers will repurchase the product. Continuous repurchasing of the
same product or brand shows loyal consumer behavior. The more satisfied
consumers are with the brand, the more loyal they will be to it.
2. Literature Review
2.1 Brand Trust
Brand trust is a feeling of security that consumers have in their interactions with
brands based on the perception that the brand is reliable and responsible for the
interests and welfare of consumers (Upamannyu, Gulati, & Mathur, 2014). Chaudhuri
and Holbrook (2001) mention that brand trust is necessary to build and maintain
long-term relationships between consumers and brands and facilitate consumer
satisfaction with brand commitment. According to Arıcı and Güçer (2018), brand
trust can occur when consumers feel safe about the quality and guarantee of a
product or service and are finally satisfied with the sincerity and honesty that have
been given, thus deciding to continue to be loyal to using the brand. Chaudhuri and
Holbrook (2001) measure brand trust using four dimensions. First, trust is a form of
consumers trusting a product or service through a brand. Second, rely is defined as
the level of consumer confidence in a reliable product or service through the
characteristics of a brand. Third, honest is the level of consumer confidence in the
brand that a product or service is an honest product or service (brand). Finally, safe
is defined as the level of consumer confidence in the brand that a product or service
is a product or service (brand) that is safe to use.
According to Rahmawati, Asep, and Komariah (2019), brand trust has a positive and
partially significant effect on customer satisfaction at a skin care clinic in Sukabumi.
Imania and Widayanto (2018) also mentioned that the brand trust variable positively
and significantly affects customer satisfaction for beauty clinics in Semarang.
Satisfaction is also considered to positively affect customer trust at salon X in
Jakarta, meaning that satisfaction-forming indicators can help build trust (Berlianto,
2018). Brand trust and consumer loyalty are discussed in (Dewi, 2017), with the
result that brand trust significantly affects consumer loyalty to cosmetic products.
Fauziyah and Karneli (2016) stated that overall, consumers consider a brand trust
for cosmetic products good. After testing, it is known that the brand trust variable
positively and significantly affects consumer loyalty to cosmetic products. Other
studies also revealed that brand trust significantly affects consumer loyalty for hand
and body lotion products in the East Jakarta area. The independent variable
determines consumer loyalty to hand and body lotion products (Baisyir, 2021).
2.2 Consumer Satisfaction
According to Sumarwan (2014), consumer satisfaction is a feeling that arises because

of the comparison between consumer expectations before the purchase and what
consumers get from the purchased product. Therefore, satisfaction arises when
consumers' perceptions of a product at least equal or even exceed their
expectations (Muro-Rodríguez, Pérez-Jiménez, Esteban-Dorado, & Martínez-Ruiz,
2021). According to Tjiptono (2011), consumer satisfaction in this study is measured
through the dimension of overall satisfaction. Furthermore, Umar (2003) explains
that overall satisfaction is the consumer's overall assessment of the product or
service used.
Satisfaction is related to security and loyalty because a sense of security and

fulfillment is an important determinant of satisfaction in achieving loyalty (Limbu,
Wolf, & Lunsford, 2011). Darma, Effendi, and Juari's (2018) research results mention
that customer satisfaction variables positively and significantly affect cosmetic
customer loyalty. In line with Dewi, Andri, & Yonaldi (2012), the consumer
29
satisfaction variable significantly influences consumer loyalty for the hand and body
lotion brand. This means that the more satisfied consumers are, the more it will
affect the loyalty of hand and body lotion consumers in Padang. The research results
by Yanto and Trianasari (2018) also show that the consumer satisfaction has a
positive and significant relationship with consumer loyalty to cosmetic products.
Furthermore, Dennisa and Santoso (2016) mention that customer satisfaction

positively and significantly affects customer loyalty at beauty clinics. This effect
indicates that the higher the customer satisfaction with the beauty clinic, the higher
the customer loyalty. On the other hand, the lower the customer satisfaction of the
beauty clinic, the lower the customer loyalty.
2.3 Consumer Loyalty

Loyalty is a consumer's commitment to a product or brand manifested by continuous
repurchase behavior of the same product in the long term (Amanah, 2011).
Consumers show loyalty behavior when they repeatedly buy and use products or
services and often ignore competitors' offers (Tuu et al., 2011). Identifying
consumer loyalty behaviors can help companies achieve a better understanding of
consumer behavior and also enable the formation of better marketing strategies
(Garrido-Morgado, González-Benito, & Martos-Partal, 2016). Satisfied customers are
willing to buy more and are more loyal to the company (Chiu, Wang, Fang, & Huang,
2012).
According to Griffin (2005), consumer loyalty in this study is measured through

several dimensions, such as repeat purchases, immunity to competitors' offers,
purchases between product lines, and referring to others. Repurchase is defined as
consumer action in buying a certain product or service continuously. Immunity to
competitors' offers is defined as the attitude of consumers who are not easily
influenced by offerings of similar products or services from other companies.
Purchases between product lines are defined as consumer actions in buying other
products within the same company. Finally, referring to others is defined as
consumer word-of-mouth communication to others to recommend a product or
service. Wijayani and Prambudi (2020) also said that advocacy (defense) could be
used as a benchmark for consumer loyalty. Loyal consumers will advocate or defend
when someone gives a bad assessment of a product or service.
Consumer loyalty to a product can be caused by brand trust and satisfaction that
already exists in the minds of consumers. The results of this study indicate that the
brand trust variable significantly affects consumer loyalty to Pixy cosmetic products.
This result explains that brand trust that already exists in the minds of consumers
can affect the level of loyalty to a product. For example, Pixy cosmetic consumers
believe in the Pixy powder brand, so they are loyal to using Pixy powder (Dewi,
2017). According to Baisyir (2021), the purpose of business is to create satisfied
consumers because satisfied consumers can create a harmonious relationship
between the company and consumers and provide a good basis for repeat purchases
so that loyalty and word of mouth can be created that are profitable for the
company.
2.4 Local Cosmetic Products

According to the Minister of Health of the Republic of Indonesia Regulation (2010),
cosmetics are materials or preparations that are used on the outside of the human
body or teeth and oral mucosa, especially to clean, perfume, change appearance,
and/or improve body odor or protect or maintain the body in good condition
(Rahayu & Suarna, 2017). Cosmetics are unique products, apart from being able to
fulfill consumers' basic needs for beauty and often being a means for consumers to
clarify their social identity in the eyes of society (Fabricant & Gould, 1993;
Ferrinadewi, 2005). Cosmetics are classified into two types, namely (1) skincare
cosmetics, which are cosmetics to maintain, care for and maintain skin condition;
and (2) make-up cosmetics (decorative or make-up), which are cosmetics to beautify
the face (Tranggono, 2007; Sukristiani, Hayatunnufus, & Yuliana, 2014).
30
According to the Ministry of Industry (2020), an 80 percent increase in online

transactions for cosmetic products was caused by a shift in shopping patterns from
offline to online. Cosmetic products produced in Indonesia are called local products.
The increasing number of local cosmetic products that have sprung up in Indonesia
provides an opportunity for developing local cosmetic brands to gain a globally
competitive market (Riha, Maspiyah, Pritasari, & Dwiyanti, 2021). The cosmetic
industry today targets female and male consumers who are starting to care about
self-care (Prakoso & Negoro, 2017). Therefore, the company began to innovate to
adapt to the conditions in the market along with the increasing public demand for
beauty care (Agrevinna, 2020).
3. Conceptual Framework
Based on the empirical studies reviewed above, it is hypothesized that brand trust
affects consumer satisfaction. Furthermore, it is hypothesized that brand trust and
consumer satisfaction affect consumer loyalty. The conceptual framework is
presented in Figure 1.
H2
Brand Trust
Consumer
H1 Loyalty
Consumer
Satisfaction
H3
Figure 1. Conceptual framework
Based on the figure above, the hypothesis is as follows:

H1: Brand trust has a positive and significant influence on consumer satisfaction
H2: Brand trust has a positive and significant influence on consumer loyalty
H3: Consumer satisfaction has a positive and significant influence on consumer
loyalty
4. Methods
4.1 Participants
This study used a cross-sectional study design with a survey method. The research
locations were in Greater Jakarta, which was selected purposively. Greater
Jakarta is the main area targeted by brand X in selling its products. Therefore, the
researchers want to see how brand X consumers' trust, satisfaction, and loyalty are
in the area which is the main target of brand X. The time of study starts from
January to June 2022. The respondents are 318 people who were obtained using a
voluntary sampling technique where respondents were asked to volunteer to fill
out online questionnaires through Google Forms. When filling out the
questionnaire, 365 people participated. However, after the data cleaning process,
only 318 people filled out the questionnaire with valid answers and were set as
examples in this study. Questionnaire links are distributed to social media such as
Instagram, WhatsApp, Line, and Twitter.
In this study, generation Z is defined as the generation born from 1995 to 2010
(Wijoyo et al., 2020). According to Andriyanty and Wahab (2019), generation Z
tends to be referred to as iGeneration, net generation, or internet generation
because whatever Generation Z does is mostly related to the internet world, which
indirectly affects their personality in consumption and spending. Based on those
explanations, the sample criteria in this study are male or female who lives in the
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Jabodetabek area, aged 17 to 25 years, and have purchased and used local
cosmetic products brand X at least twice and in the last three months at least.
4.2 Measurement
The variables of this study are brand trust, consumer satisfaction, and consumer
loyalty. Brand trust is a feeling of security that consumers have in their
interactions with brands based on the perception that the brand is reliable and
responsible for the interests and well-being of consumers (Upamannyu, Gulati, &
Mathur, 2014). Consumer satisfaction is a feeling that arises because of the
comparison between consumer expectations before the purchase and what is
obtained by consumers from the purchased product (Sumarwan, 2014). Finally,
consumer loyalty is a consumer's commitment to a product or brand manifested by
continuous repurchase behavior of the same product in the long term (Amanah,
2011).
The questionnaire used as a research tool was adapted from various sources,
namely brand trust with nine statements (Chaudhuri & Holbrook, 2001; Ana,
Pratiwi, & Pujianto, 2021), consumer satisfaction with five statements (Delgado-
Ballester & Munuera-Aleman, 2005), and consumer loyalty as many as eleven items
(Ana, Pratiwi, & Pujianto, 2021; Wijayani & Prambudi, 2020). Measurements on
each variable of brand trust, consumer satisfaction, and consumer loyalty used a
Likert scale of 1 to 4 with answer choices strongly disagree, disagree, agree, and
strongly agree with scores of 1, 2, 3, and 4. In addition, each variable is grouped
into three categories, namely low (<60), moderate (60-80), and high (>80).
4.3 Analysis
The data collected in this study are primary data and secondary data. Primary data
was obtained from filling out online questionnaires using a Google Forms link by
generation Z respondents using local cosmetic product brand X. The data obtained
were the characteristics of the respondents (gender, age, last education,
occupation, and monthly income), the pattern of buying a local cosmetic brand
(expenditure to buy local cosmetic product brand X, frequency of purchasing local
cosmetic product brand X, type of local cosmetic product brand X that has been
purchased, and duration of use of local cosmetic product brand X), level of brand
trust, level of satisfaction, and level of loyalty to cosmetic products local brand X.
Respondents must complete the questionnaire so that the incomplete

questionnaire will be canceled or considered invalid. Secondary data in this study
include data on ten best-selling local skincare brands in e-commerce and Shopee
consumer assessment data on brand X local cosmetic products at the Official Store
and Jabodetabek distributors. Data were processed and analyzed using Microsoft
Excel 2010 program, Statistical Package for Social Science (SPSS) 25, and LISREL
8.80. Data analysis included descriptive analysis, correlation test, and Structural
Equation Modeling (SEM) analysis. The questionnaire made in this study before
being used was tested first to see the level of validity and reliability. The results
of the questionnaire test on 30 people showed that all statements on brand trust,
consumer satisfaction, and consumer loyalty had a correlation coefficient of >0.3
and a Cronbach's Alpha value of >0.6, which means the questionnaire is valid and
reliable and can be used as a research measuring tool.
5. Findings
5.1 Respondents Profile
The profile of respondents was based on gender, age, last education, occupation,
and monthly income. The results showed that two-thirds of the respondents in this
study were female (72.3%), while male respondents were only 27.7 percent of the
total. The respondents ranged from 17 to 25 years who belonged to the generation Z
group, with more than half of the respondents in the year age range of 20 to 22
32
years (51.9%). More than two-thirds of respondents are high school graduates
(72.3%). The occupations held by the respondents in this study were quite diverse.
However, more than half of the respondents are students or college students (66%).
This study's highest percentage of respondents have a monthly income range of IDR
1.000.001- IDR 3.000.000 (36.2%).
5.2 Pattern of Buying Local Cosmetic Brands
The pattern of buying the local cosmetic brand in this study is seen based on the
expenditure to buy brand X local cosmetic products, the frequency of purchasing
local cosmetic products brand X, the type of local cosmetic product brand X that has
been purchased, and the duration of use of local cosmetic products brand X. Almost
half of the total respondents in this study (49.4%) spent Rp150.001-300.000 of their
monthly income to buy local cosmetic products brand X. Almost half of the
respondents have bought local cosmetic product brand X twice (40.9%). Based on the
survey results, the most purchased cosmetic brand X by respondents is skincare
(59.4%). Almost half of the respondents in this study (39.9%) had used local cosmetic
products brand X for three months.
5.3 Brand Trust
Brand trust in this study is measured through indicators KM1 to KM9. The average
achievement of the brand trust variable index is in the moderate category (60-80),
with a value of 73.14. These results indicate that brand X still needs to increase
consumer trust (Table 1).
Table 1. Category and descriptive analysis of brand trust

Category Number (n) Percentage (%) Range Average ± Std
Low (<60) 22 6.9
Moderate (60-80) 213 67.0
18.52-100.00 73.14 ± 12.40
High (>80) 83 26.1
Total 318 100
5.4 Consumer Satisfaction
Consumer satisfaction in this study is measured through indicators KP1 to KP5. The
average achievement of the consumer satisfaction variable index is in the moderate
category (60-80), with a value of 71.59. These results indicate that brand X still
needs to increase consumer satisfaction (Table 2).
Table 2. Category and descriptive analysis of consumer satisfaction

Low (<60) 28 8.8
Moderate (60-80) 229 72.0 20.00-
71.59 ± 14.17
High (>80) 61 19.2 100.00
Total 318 100
5.5 Consumer Loyalty
Consumer loyalty in this study is measured through indicators LK1 to LK11. The
average achievement of the consumer loyalty variable index is in the moderate
category (60-80), with a value of 69.58. These results indicate that brand X still
needs to increase consumer loyalty (Table 3).
Table 3. Category and descriptive analysis of consumer loyalty

Low (<60) 52 16.4
Moderate (60-80) 201 63.2 33.33-
69.58 ± 13.53
High (>80) 65 20.4 100.00
Total 318 100
33
5.6 Crosstab
The relationship test was conducted to see the relationship between respondents'
characteristics (gender, age, last education, occupation, and monthly income) and
pattern of buying a local cosmetic brand (expenditure to buy brand X local cosmetic
products, frequency of purchasing local cosmetic products brand X, types of
cosmetic products brand X that has been purchased, and the duration of use of local
cosmetic product brand X) with the brand trust, consumer satisfaction, and
consumer loyalty. Correlation analysis was performed using the crosstabs method
(cross-tabulation) to see the relationship between variables by calculating the
frequency and percentage of two or more variables at once by crossing the variables
that are thought to be related so that their meaning can be easily understood
descriptively. The basis for making decisions on the crosstabs correlation test is seen
through the value of the chi-square test output table.
Based on the results of the chi-square statistical test, it was found that the
indicators of gender, age, last education, and monthly income had a p-value of
<0.05 with brand trust. There is a positive and significant relationship between
gender, age, last education, and monthly income with brand trust. In addition,
indicators of age, monthly income, frequency of purchasing brand X local cosmetic
products, types of local cosmetic brand X products that have been purchased, and
duration of use of local cosmetic products brand X were also found to have a
positive and significant relationship with consumer loyalty (p-value <0.05).
5.7 Hypothesis test

The overall model fit test can be seen through the values of RMSEA (Root Mean
Square Error of Approximation), RMR (Root Mean Square Residual), GFI (Goodness of
Fit Index), AGFI (Adjusted Goodness of Fit Index), IFI (Incremental Fit Index), NFI
(Normed Fit Index), and CFI (Comparative Fit Index). In addition, the value of the
model's overall fit based on the suitability criteria is presented in Table 4.
Table 4. Overall model fit

Goodness of fit Cut-off value Results Description
Root Mean Square Error of
RMSEA ≤ 0.08 0.080 Good fit
Approximation (RMSEA)
Root Mean Square Residual Good fit
RMR ≤ 0.1 0.019
(RMR)
The goodness of Fit Index 0.83 Good fit
0.80 ≤ GFI < 0.90
(GFI)
Adjusted Goodness of Fit Good fit
0 < AGFI < 1 0.79
Index (AGFI)
Incremental Fit Index (IFI) 0 < IFI < 1; IFI ≥ 0.9 0.96 Good fit
Normed Fit Index (NFI) 0 < NFI < 1; 0.94 Good fit
NFI ≥ 0.9
Comparative Fit Index (CFI) 0 < CFI < 1; Good fit
0.96
CFI ≥ 0.9
Table 4 shows that the overall fit test of the model can be accepted with a good fit
description. The RMSEA value obtained is 0.080, which means a good fit for the
model to be accepted. In addition, the RMR value is 0.019; GFI of 0.83; AGFI of 0.79;
IFI of 0.96; NFI of 0.94; and CFI of 0.96 is also included in the good fit criteria.
34
The measurement model fit test was carried out after the entire model was
analyzed for suitability. The criteria for the suitability of the measurement model
are measured based on the validity and reliability of the indicator variable on the
latent variable. An indicator is valid if it has a tolerable standardized loading factor
value of ≥0.5. The measurement model of the fit test can be seen in Figure 2.
Figure 2. Measurement model fit test results
Based on the fit-test results, Figure 2 shows that all variable indicators in each
latent variable have met the requirements, namely having a standardized loading
factor value of ≥0.5, so there is no need to re-estimate or eliminate again and can
carry out the next stage of testing. Figure 2 also shows the contribution of variable
indicators to each latent variable. The indicator that contributes the most to brand
trust is KM2, which is related to the statement that brand X is a cosmetic product
brand that is in line with respondents' expectations. The indicators that contribute
the most to consumer satisfaction are KP3 and KP5, which are related to respondent
satisfaction with the suitability of the quality and price of brand X local cosmetic
products and overall satisfaction. Finally, in the consumer loyalty variable, the
indicator with the largest contribution is LK4 which states that if there is a shortage
of local cosmetic product brand X, consumers will not immediately switch brands.
The smallest indicator contribution to brand trust is KM1 which is related to

consumer confidence that brand X local cosmetic products are produced from the
best ingredients. Likewise, the smallest indicator contributing to consumer
satisfaction is KP1 which states that consumers are satisfied with the price offered
by brand X because it can compete with other brands. Finally, in the consumer
loyalty variable, the indicator with the largest contribution is LK1 which states that
consumers will make brand X local cosmetic products as the main choice of cosmetic
products.
Table 5. Construct reliability (CR) and average variance extract (AVE)

Latent variables Construct reliability Average variance extract
(CR) (AVE)
Brand trust 0.87 0.44
Consumer satisfaction 0.81 0.46
Consumer loyalty 0.89 0.43
35
A reliability test on SEM is also done by looking at the value of construct reliability
(CR) and average variance extract (AVE). The acceptable values are CR of ≥0.7 and
AVE of ≥0.5. Table 5 shows the calculated CR and AVE values for the variables of
brand trust, consumer satisfaction, and consumer loyalty. Both brand trust,
consumer satisfaction, and consumer loyalty have a CR value above 0.7, so they can
be said to be reliable. The three latent variables showed an AVE value below 0.5,
but it is still acceptable because the CR value has met the requirements (≥0.7).
The structural equation fit test is tested by specifying a certain significance level.
The approach used to test the structural model's suitability is to determine that the
t-value of each latent variable must be more than 1.96 so that the hypothesis can be
accepted at a significance level of 0.05 (95% trust level). The result of the structural
model fit test is presented in Figure 3.
Figure 3. Structural model fit test results
The results of the structural model fit test in Figure 3 shows that the brand trust
variable has a positive and significant influence on the consumer satisfaction
variable, as evidenced by the t-value of 9.26 (>1.96). Furthermore, the variable of
consumer satisfaction is also known to have a positive and significant influence on
consumer loyalty. This is evidenced by the t-value of 4.80. However, the brand trust
variable was found not to influence the consumer loyalty variable, which was
indicated by the t-value of -0.57.
Table 6. Decomposition effects for the latent variable of consumer loyalty

Latent variables Direct effect Indirect effect Total effect R2
Consumer satisfaction 0.74
Brand trust 0.86* - 0.86*
Consumer loyalty
Brand trust -0.08 0.71* 0.63* 0.58
Consumer satisfaction 0.83* - 0.83*
SEM analysis of each latent variable's direct, indirect, and total effect was also
carried out, presented in Table 6. The results showed that brand trust has a direct
positive and significant effect on consumer satisfaction (0.86*), with an effect of 74
percent. Brand trust and consumer satisfaction have an effect of 58 percent on
consumer loyalty. Of the two variables that are thought to affect consumer loyalty
directly, only customer satisfaction has a significant effect (0.83*), while brand trust
36
has no significant effect (-0.08). Brand trust does not directly affect consumer
loyalty but indirectly affects consumer loyalty (0.71*). Brand trust has a significant
effect through consumer satisfaction on consumer loyalty, which is also significant
(0.63*). Based on the test results, it is stated that hypothesis one (H1) is accepted.
That is, brand trust positively and significantly influences consumer satisfaction.
Hypothesis two (H2) is accepted, which means that brand trust positively and
significantly influences consumer loyalty. In addition, hypothesis three (H3) is
accepted, which means that consumer satisfaction positively and significantly
influences consumer loyalty.
6. Discussion
This study aims to analyze the influence of brand trust and satisfaction towards
consumer loyalty of a local cosmetic products brand X in generation Z. This research
was conducted because today's society is more specific in paying attention to their
appearance and self-care (Syarifuddin & Nurdin, 2020). This finding is also
evidenced by an increase in cosmetic purchases in e-commerce since the middle of
the pandemic (Dinillah, Gunawan, & Sinansari, 2021). Analysis using SEM shows the
relationship between the variables.
All decisions made by consumers are influenced by many factors, including economic
factors, such as income, prices, savings, loans, and the impact of marketing
instruments, and non-economic factors, such as demographic, social, or
psychological (Biesok & Wyród-Wróbel, 2011; Spiewak, 2003). The research results
showed that the characteristics of the respondents (gender, age, and monthly
income) were positively and significantly related to brand trust. In addition,
respondents' characteristics (age, latest education, and monthly income) and
pattern of buying a local cosmetic brand (frequency of purchasing brand X local
cosmetic products, types of local cosmetic brand X products that have been
purchased, and duration of use of local cosmetic brand X products) were also found
to be positively related with consumer loyalty. Solomon (2007) defines consumer
behavior as consumer decisions influenced by external and internal factors. External
factors include marketing mix stimuli and broader stimuli such as culture, economy,
politics, and technology. Meanwhile, internal factors include consumer
characteristics such as (1) Gender, which affects the purchase of goods or services
consumed by both male and female consumers; (2) Age, increasing age is related to
a person's experience in choosing goods or services; (3) Education, the higher a
person's education, the more likely that person has a high income; (4) Employment,
including the best-documented measure of social class because it describes work-
related status; and (5) Income, the greater person's income, the easier it will be to
decide to buy an item or service.
The biggest factor that forms brand trust in this study is the respondent's feeling of
trust that the cosmetic product brand X is by the respondent's expectations. Brand
trust determines how consumers choose a product brand they want to use (Erdem &
Swait, 2004). The research that has been done shows that brand trust has a positive
and significant influence on consumer satisfaction. The higher the brand trust, the
higher the satisfaction felt by consumers with local cosmetic products brand X.
Several previous studies related to the influence of brand trust towards consumer
satisfaction with cosmetic products also show consistent results. Research by Imania
& Widayanto (2018), Rahmawati, Asep, and Komariah (2019), Mayasari and Diarini
(2017) state that brand trust has a positive and significant influence on consumer
satisfaction. Consumers who respond well to brand trust encourage to feel satisfied
with the overall trust that has been given to a brand so that consumers feel that the
product or service can provide a meaning satisfaction as they expect. Therefore,
trust is very important in attracting first-time buyers or consumers. If trust
influences satisfaction, consumers tend to have confidence in a product first, then
start buying and trying it so that satisfaction results arise. A lack of consumer
literacy and product information can reduce consumer trust and satisfaction.
37
In this research, brand trust does not have a direct positive and significant influence
on consumer loyalty. That is, the higher the brand trust, does not necessarily
increase consumer loyalty. Previous studies on the effect of brand trust on consumer
loyalty to cosmetic products also showed similar results, namely trust has a negative
and insignificant effect on consumer loyalty (Apriliani, Baqiyyatus, Febila, &
Sanjaya, 2020; Erwin & Sitinjak, 2017). However, this study's results differ from
previous studies that state that the brand trust variable has a positive and
significant direct effect on consumer loyalty (Fauziyah & Karneli, 2016; Baisyir,
2021; Dewi, 2017). The analysis also states that brand trust has a positive and
significant indirect effect on consumer loyalty. These results are in line with the
research of Surachmanuddin, Kamase, Nujum, and Baharuddin (2020), Fajarini and
Meria (2020), as well as Aeni and Istikhoroh (2020). That is, satisfaction is a variable
that can fully mediate the influence of brand trust on consumer loyalty to brand X.
Without consumer satisfaction, it cannot explain the relationship between brand
trust and consumer loyalty. Before reaching the satisfaction stage, consumers must
feel safe and trust to encourage consumers to buy products until the result is
satisfactory or dissatisfied, which ultimately makes consumers decide to be loyal or
disloyal. Consumers can obtain this feeling of safe through complete and clear
information listed on the product label.
The satisfaction in this study was mostly formed by respondent satisfaction with the
suitability of product quality and price and overall satisfaction. Satisfaction is an
important thing needed to form the loyalty of a consumer (Dewi, 2017). Satisfaction
can be formed from consumer experience in using a product. Meanwhile, this study's
biggest factor that forms loyalty is the respondents' attitude. If there is a shortage
of local cosmetic product brand X, they will not immediately switch brands. The
analysis results showed that consumer satisfaction has a positive and significant
influence on consumer loyalty. That is, the higher the satisfaction, the higher the
consumer loyalty to local cosmetic products brand X. Several previous studies
related to the influence of consumer satisfaction towards consumer loyalty cosmetic
products also show similar results. The research results of Darma, Effendi, and Juari
(2018), Dewi, Andri, and Yonaldi (2012), as well as Dennisa and Santoso (2016)
mention that the variable of consumer satisfaction has a positive and significant
effect on consumer loyalty. According to Baisyir (2021), loyalty attitudes and
behavior occur because of satisfaction with products that exceed consumer
expectations. The more often consumers are satisfied with local cosmetic products,
brand X, the more consumers tend to become loyal. Satisfaction created from the
experience of using the product will lead to loyalty in consumers to repurchase or
recommend the product to others. Consumers must be wise in choosing a cosmetic
product to buy by choosing products guaranteed to be safe so that later they will
feel satisfied and eventually become loyal (Pramudyo, 2012).
This study had some limitations. First, there are more female respondents (72.25%)
than male respondents, only 27.7 percent. Therefore, this result does not represent
male consumers who use local cosmetic products brand X in the Jabodetabek area.
In addition, the researchers did not meet face-to-face with the respondents when
filling out the questionnaire. Finally, the lack of respondents' understanding made
some filling out the questionnaire incomplete, so invalid data had to be eliminated.
7. Conclusion
Nearly three-quarters of the respondents in this study were female, with the ages
ranging from 20 to 22 years. More than two-thirds of respondents are high school
graduates. More than half of the respondents are students or college students. This
study's highest percentage of respondents have a monthly income range of IDR
1.000.001- IDR. 3.000.000. Almost half of the respondents spent Rp150.001-300.000
of their monthly income to buy local cosmetic products, brand X with buying
frequency is twice, and the most purchased product is skincare. Almost half of the
respondents in this study had used local cosmetic products brand X for three
months.
38
The results show that the level of brand trust, consumer satisfaction, and consumer
loyalty of Generation Z to local cosmetic products brand X was still in the moderate
category. This study also shows a positive and significant relationship between
respondent characteristics (gender, age, education, and monthly income) and brand
trust. In addition, respondents' characteristics (age and monthly income) and
pattern of buying a local cosmetic brand (frequency of purchasing brand X local
cosmetic products, types of local cosmetic brand X products that have been
purchased, and duration of use of local cosmetic products brand X) were also found
to be positively and significantly related with consumer loyalty. The results
conclude that consumer trust positively and significantly influences consumer
satisfaction. Furthermore, brand trust has a positive and significant influence on
consumer loyalty. Lastly, consumer satisfaction has a positive and significant
influence on consumer loyalty.
The lack of consumer trust in the ingredients used by brand X in production

indicates that generation Z consumers to increase literacy regarding product-related
information further. In accordance with the Law of the Republic of Indonesia
number 8 of 1999 concerning consumer protection, consumers should read or follow
information instructions and procedures for the use or utilization of goods and/or
services for security and safety. The company must also clearly state what
ingredients are used in manufacturing its cosmetic products. Consumer satisfaction
with product prices is also still low, and the company. A needs to improve by
adjusting the prices of the products offered to make them more affordable for
consumers and can compete with other cosmetic products. In addition, consumer
loyalty can be increased by paying attention to product quality so that brand X
remains the main preference.
8. Recommendation
For generation Z users of local cosmetic product brand X, it is hoped that they will
find out which local cosmetic product brand X to buy by reading the information
related to the basic ingredients of the product. The results of this study can be
input and consideration for brand X to enrich further the information contained in
the product label. Regarding consumer satisfaction with product prices, brand X can
also provide discounts, shopping vouchers, and giveaways to consumers.
Furthermore, it is expected to maintain and improve product quality so that it
remains the main choice of consumers. For further research, research subjects can
be replaced with other age groups, such as generation X and generation Y, to see if
there are any behavior differences in these generations.
Citation information intervening (Pengguna Shopee

Mahasiswa Universitas PGRI Adi
Cite this article as: Djamaludin, M. Buana Surabaya) [The effect of
D., & Fahira, A. (2023). The influence trust on loyalty with consumer
of brand trust and satisfaction satisfaction as an intervening
towards consumer loyalty of a local variable (User Shopee PGRI Adi
cosmetic products brand x among Buana University Surabaya
generation Z. Journal of Consumer Students]. Journal of
Sustainability Bussiness Research
Science, 8(1), 27-44. doi:
(JSBR), 1(1), 169–173.
https://doi.org/10.29244/jcs.8.1.27- https://doi.org/10.36456/jsbr.v
44 1i1.2981
Agrevinna, M. (2020). Strategi
pengembangan bisnis dalam
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44
Aptisi Transactions on Technopreneurship (ATT) P-ISSN: 2655-8807
Vol. 5 No. 1 March 2023 E-ISSN: 2656-8888
Millennials’ Intention to Invest through Securities

Crowdfunding Platform
Ni Made Nila Febrianti1, Gede Sri Darma2

Master of Management Program1,2
Universitas Pendidikan Nasional1
e-mail: nilafebrianti0902@gmail.com1 , sridarma@undiknas.ac.id2
Nila Febrianti, N. M., & Darma, G. S. . (2023). Millennials’ Intention to Invest through
Securities Crowdfunding Platform. Aptisi Transactions on Technopreneurship (ATT), 5(1),
19–30.
DOI: https://doi.org/10.34306/att.v5i1.280
Abstract
This study aims to describe the effect of perceived ease of use, perceived usefulness,
perceived risk, social influence, trust, and behavioral intention of using the securities
crowdfunding platform. The population of the study is the entire millennial generation who lives
in Denpasar City with a total sample of 132 respondents. The data processing technique used
is Structural Equation Model (SEM) with AMOS software. The results show that perceived
usefulness, social influence, and trust had a direct and significant influence on behavioral
intention to use. While the variables perceived ease of use and perceived risk have no direct
effect on behavioral intention to use. Perceived ease of use variable has an indirect effect
through perceived usefulness and perceived risk has an indirect effect through the trust variable
on behavioral intention to use. Trust has the greatest influence on behavioral intention to use
the securities crowdfunding platform.
Keywords: Crowdfunding, Millenial, Securities.
1. Introduction
Nowadays, all aspects of human life cannot be separated from technological
developments. This is reflected in the results of a survey; conducted by the Association of
Indonesian Internet Service Providers, where the number of internet service users in Indonesia
reached 77.02% or 210.02 million from total Indonesian population 272.68 million in the first
quarter of 2022 [1]. In the sector of financial services institutions, one of the institutions born
from technological developments is financial technology or Fintech. Through the rapid
development of fintech, a new alternative financing has emerged as a solution to MSME capital
problems in Indonesia, namely Securities Crowdfunding.
Securities Crowdfunding is a term for funding MSMEs in the form of money conducted
by certain people with compensation [2]. This conc
ept has just been introduced in Indonesia and has been running since the end of 2018 with the
term equity crowdfunding [3]. In line with the refinement of POJK 37/2018 rules which were
replaced by POJK 57/2020, the term equity crowdfunding was changed to Securities
Crowdfunding (SCF). Where in terms of SCF-based funding, this certainly provides new
opportunities for investors in Indonesia to become one of the potential MSME investors. The
number of investors who are interested in investing through the Securities Crowdfunding
platform in 2021 grew by 319.56% compared to 2020 with total funds that have been channeled
through the Securities Crowdfunding platform in 2021 as much as 413.18 billion rupiah. This
number grew by 116.09% compared to 2020 [4].
Investing through the Securities Crowdfunding platform is certainly not always easy to
adopt by all circles of society. Therefore, to find out individual interest in using new technology,
■ 19
Copyright (c) Ni Made Nila Febrianti1, Gede Sri Darma2
This work is licensed under a Creative Commons Attribution 4.0 (CC BY 4.0)
Technology Acceptance Model is used in this research [5], [6]. The Technology Acceptance
Model (TAM) describes the main determinants of individual decisions in using a technology and
explained the reasons of many information technology systems fail to be implemented due to
less interest of users in using it [7]. Up until now, the most relevant theory for predicting users
desire and readiness to adopt technology is the Technology Acceptance Model, with two main
constructs: Perceived Ease of Use and Perceived Usefulness [8]–[10].
In the previous research conducted by [10], [11], it is stated that the desire to or not to
use technology depends on the level of easiness in learning its usage. It is essential to develop
an information support system that provides data effectively and efficiently [12]. Perceived
usefulness is one of the dominant factors that shape behavioral interest in using technology with
better expectations of using technology systems and will improve the quality of one's
performance [10]. Some previous research that shows the role of perceived ease of use and
perceived usefulness in determining interest in use is by [13]–[17].
Securities crowdfunding is still relatively new because it has only been running for the
last 4 years in Indonesia. This raises investor anxiety about the performance of the securities
crowdfunding platform in Indonesia. The perceived high level of risk involved in crowdfunding
platforms has a negative effect on users' intentions to finance crowdfunding projects on fintech
platforms [18]. Previous research by [3] also stated that there is a risk due to the lack of internet
capacity as an infrastructure that triggers the risk of investing through equity crowdfunding.
Trust has always been the focus of much research on the issue of new technology
adoption and is often used as another important basis for attracting users [6]. In adopting fintech
applications, the role of trust is vital because it involves the use of large and high-dimensional
data involved in a service. Investors will trust to invest through the Crowdfunding Platform if the
platform and the business owner can be trusted, and are willing to depend on determining
investment intentions because they feel the ability, virtue, and honesty of both platform and
business owner [3]. Several previous studies by [3], [6], [19], [20] emphasized the importance
of the role of trust in influencing a person's interest in investing through online services and
platforms.
Intentions to participate in crowdfunding are shaped by the influence of those closest to
them, such as family, friends, and people who have great influence such as influencers [21],
[22]. The influence of social media and word of mouth from initial users increases the use of
new technology services [22]. A new technology service should allocate resources and efforts
towards more active social use to influence and motivate people behavioral intentions to use
their new technology service. People develop trust and invest more if their neighbours, friends,
or relatives have invested in the market [23]. Some previous research by [21], [24], [25] also
showed the role of social influence in determining the amount of interest in investing through
the fintech platform.
This study aims to find out the factors that influence and explain millennial intentions to
invest through the Securities Crowdfunding platform, namely Perceived Ease of Use (PEU),
Perceived Usefulness (PU), Perceived Risk (PR), Trust (T), and Social Influence (SI). Research
on the intention to adopt the securities crowdfunding platform in investing is still very limited,
found in Indonesia, especially in Bali and Denpasar City as the industrial center in Bali.
2. Research Method
This study uses quantitative approach with associative nature in the form of causal
relationship. The data are collected through survey method which made and distributed by
Google Form. This study took place in Denpasar, Bali, Indonesia. The targeted respondents are
local millennial generation that are familiar with Securities Crowdfunding Platform. The
population used is the entire millennial generation who were born in 1980 – 2000 [26]. The
sampling method used is the Purposive Sampling technique with the sample criteria, namely
the millennial generation who have invested or not but familiar about securities crowdfunding
who are domiciled in Denpasar City. The minimum number of samples required is 115
respondents referring to the formula set by Hair et al [27]. From the questionnaires that have
been distributed through Google Form, there are as many as 132 samples which data have
been collected. The validity and reliability test of the instrument are carried out by using IBM
Millennials’ Intention to Invest through Securities Crowdfunding Platform ■ 20

SPSS version 22 software. The data processing technique in this study is analyzed using SEM
(Structural Equation Modeling) - AMOS (Analysis Moment of Structural).
2.1 Hypotheses
Based on the phenomena described in the background and previous study, this study
formulated eight hypotheses as follow.
H1: Perceived ease of use has a positive and significant effect on perceived usefulness.
H2: Perceived ease of use has a positive and significant effect on behavioral intention to
use Securities Crowdfunding Platform.
H3: Perceived usefulness has a positive and significant effect on behavioral intention to use
Securities Crowdfunding Platform.
H4: Perceived risk has a negative and significant effect on behavioral intention to use
H5: Perceived risk has a negative and significant effect on trust.
H6: Social influence has a positive and significant effect on trust.
H7: Social influence has a positive and significant effect on behavioral intention to use
H8: Trust has a positive and significant effect on behavioral intention to use Securities
Crowdfunding Platform
3. Findings
The respondents consisted of 72 men (54.5%) and 60 women (45.5%). 58 respondents
(44%) have invested through a securities crowdfunding platform and 74 respondents (56%)
have never invested through a securities crowdfunding platform but know about securities
crowdfunding. The range of respondents age is dominated by those born in 1996-2000 as many
as 103 respondents (78%). The dominant respondents are domiciled in North Denpasar District;
44 respondents (33.3%), with the most dominant education level at Batchelor degree (S1), 102
respondents (77.2%) and having the most dominant occupation as private employees, 61
respondents (46.2%). Characteristics of respondents in more detail can be seen in table 1 as
follows.
Table 1. Respondents Characteristics
Description Total Percentage (%)
Range of Born Year
1980 – 1985 3 2,3
1986 – 1990 3 2,3
1991 – 1995 23 17,4
1996 – 2000 103 78
Domicile
North Denpasar 44 33,3
East Denpasar 36 27,3
South Denpasar 29 22
West Denpasar 23 17,4
Education
High School 5 3,8
Diploma I/II/III 6 4,5
Batchelor (S1) 102 77,3
Master (S2) 19 14,4
Occupation
Civil Servant 19 14,4
Private employee 61 46,2
Entrepreneur 21 15,9
Student 22 16,7
Other 9 6,8
3.1 Validity and Reliability

Validity test is used to measure whether or not a research indicator is valid [28]. The

question is declared valid, if the corrected item-total correlation coefficient calculated is

greater than the correlation in the table of critical values at the corresponding degrees of
freedom (rcount > rtable = 0.306). Then the Reliability Test carried out to confirm the accuracy
and reliability of the variable, a variable construct will be said to be reliable if it has a
Cronbach’s value > from 0.60. The results of testing the validity and reliability of the SPSS
software version 22 show the correlation coefficient value for each question item on the
questionnaire is > 0.3 with a significance level of < 0.05. This means that all questions on the
questionnaire are valid. Reliability testing is seen from the Cronbach's Alpha value of each
variable, namely perceived ease of use 0.850, perceived risk 0.778, social influence 0.787,
perceived usefulness 0.808, trust 0.842, and behavioral intention to use 0.844. Cronbach's
Alpha coefficient value for each indicator > 0.70, this means that all variables are reliable.
The results of further validity and reliability testing can be seen in table 2 below.
Table 2. Validity dan Reliability Test

Variabel Cronbach’s Description Item R Count Description
Alpha
Perceived Ease 0.850 Reliable X1.1 0.842 Valid
of Use X1.2 0.873 Valid
X1.3 0.866 Valid
Perceived Risk 0.778 Reliable X2.1 0.679 Valid
X2.2 0.629 Valid
X2.3 0.807 Valid
X2.4 0.767 Valid
X2.5 0.724 Valid
X2.6 0.637 Valid
Social Influence 0.787 Reliable X3.1 0.702 Valid
X3.2 0.690 Valid
X3.3 0.718 Valid
X3.4 0.771 Valid
Perceived 0.808 Reliable Y1.1 0.798 Valid
Usefulness Y1.2 0.786 Valid
Y1.3 0.740 Valid
Y1.4 0.782 Valid
Trust 0.842 Reliable Y2.1 0.800 Valid
Y2.2 0.846 Valid
Y2.3 0.882 Valid
Behavioral 0.844 Reliable Z1.1 0.805 Valid
Intention to Use Z1.2 0.891 Valid
Z1.3 0.834 Valid
Source: data processed by SPSS, 2022
3.2 Data Normality Test

The analysis of data normality is carried out to determine whether the data obtained and
collected are normally distributed. To analyze the normality of the data, the skewness and
kurtosis values were used. The results of data normality testing using AMOS version 24
software show that there is no indicator for each variable that has a C.R for skewness
(skewer) and kurtosis (curliness) above ± 3.00. Thus, the spread of data for all indicators is
normal and meets the requirements.
3.3 Confirmatory Factor Analysis

Confirmatory factor analysis is used to test the uni-dimensionality of the dimensions that
describe the latent variables in the model, whether all the indicators used in the research
form the variables of interest in use. Confirmatory factor analysis is also intended to analyze
the level of validity of the data obtained in the study. In order to find out whether the indicator

used has sufficient meaning to be declared significant in explaining the latent variable if the
indicator has a lambda coefficient (λ) 0.5, a critical value (C.R.) 2.00 and a probability value
< 0.05. The results of the confirmatory factor analysis of all indicators in each variable in this
study, state that the standardized estimate regression weight (λ) for all indicators is greater
than 0.50 and C.R. greater than 2.00 and the probability value of all indicators is less than
0.05 (***). So, it can be concluded that from the CFA, all of these indicators are declared valid
as indicators that form the latent variable in each variable.
3.4 Goodness of Fit

Data analysis with SEM consists of several stages to test the proposed model as a
whole, one of them is through goodness of fit analysis. From the results of the goodness of fit
test in the research model presented in table 3 below, it is stated that seven out of the nine
criteria have been met, namely Chi-Square, Relative Chi-Square, RMSEA, GFI, AGFI, TLI, and
CFI. The research model is declared good and can continue to the next stage of analysis with
a minimum of 5 criteria are met [28].
Table 3. Goodness of Fit

Goodness of Fit Cut-off Value Result Description
Chi-Square (X2) Expected low 261.499 Marginal Fit
Relative Chi-Square (X2/df)  2.00 1.194 Good Fit
Probability  0.05 0.026 Not Fit
RMSEA  0.08 0.038 Good Fit
GFI  0.90 0.862 Marginal Fit
AGFI  0.90 0.826 Marginal Fit
TLI  0.95 0.950 Good Fit
CFI  0.95 0.957 Good Fit
NFI  0.90 0.789 Not Fit
Source: data processed by AMOS, 2022

Figure 1. Research Framework

3.5 Hypothesis Testing
Table 4. The Result of Regression Weights

Standardized C.R. P-value Description
Estimate (S.E.)
PU  PEU 0.430 3.810 *** Significant
BIU  PEU 0.114 1.230 0.219 Not Significant
BIU  PU 0.308 3.045 0.002 Significant
BIU  PR -0.136 -1.487 0.137 Not Significant
T  PR 0.354 3.305 0.002 Significant
T  SI 0.231 2.025 0.043 Significant
BIU  SI 0.197 2.065 0.039 Significant
BIU  T 0.681 4.774 *** Significant
Source: data processed by AMOS, 2022
• Direct Effect
The results of the SEM analysis in table 4 state that Perceived Ease of Use has a positive
and significant direct effect on Perceived Usefulness. This means that changes in the level of
perceived ease of use will affect changes in perceived usefulness. The results of this study are
in line with research conducted by [10] on the use of e-business in the BRI information system,
proving that perceived ease of use has a significant effect on perceived usefulness. The results
of this test are in accordance with the Technology Acceptance Model (TAM) theory proposed by
Davis where in the TAM theory it is said that the easier a technology is to use, the more useful
the technology will be [29]. This is understandable because the user experience of a new
Securities Crowdfunding investment platform if it is easy to use and only takes a short time to
learn then this will be an added value in terms of convenience of use and increase the perception
of the benefits that can be provided to investors by the securities crowdfunding platform.
Perceived Ease of Use has positive but does not significantly influence Behavioral
Intention to Use Securities Crowdfunding Platform. The results of this study are supported by the
results of previous research conducted by [17], [30], [31] where in their research stated that
perceived ease of use had no effect on behavioral intention to use. A person's intention to use a
technology is not related to the ease of using the technology. Although investors find it easy to
invest through the securities crowdfunding platform, they will not necessarily invest in the
securities crowdfunding platform. In addition, what the reason on the absence of the effect of
perceived ease of use on behavioral intention to use the securities crowdfunding platform is
because this study uses the millennial generation as respondents. The millennial generation is
known as a generation that is easy to adopt a new technology, so this matter does not become
a problem especially in changing their interest in using a new technology, in this case the
securities crowdfunding platform.
Perceived Usefulness has a positive and significant direct influence on behavioral
intention to use the securities crowdfunding platform. This means that any changes in the level
of perceived usefulness can affect changes in interest in using the securities crowdfunding
platform. The results of this study are consistent with research conducted by [15], [16], [29], [32].
This is because investors believe that the securities crowdfunding platform can provide better
performance and productivity in their services for investing online. Millennials will be very
interested in using or doing new things that provide additional benefits for themselves. Where
they also believe that it will provide good benefits for the development of MSMEs in Indonesia in
the future by providing a forum for investors to invest online [17].
Perceived Risk has negative and does not significantly influence behavioral intention to
use Securities Crowdfunding Platform. The level of perceived risk does not affect interest in using
a new technology. The result of this study is consistent with research conducted by [15], where
the perception of risk is said to have no effect on interest in using e-money technology. Millennials
tend not to pay much attention to the risks involved in investing online. Currently, the millennial
generation is entering a productive age and likes to store their wealth in the form of online
services that are easily accessible. Their convenience in adopting new technology shows that

the millennial generation does not pay much attention to risk because of their greater interest in
more diverse and efficient online investment transactions.
Perceived Risk has a positive and significant direct influence on trust in investing through
the securities crowdfunding platform. This result is very interesting although not in line with the
research by [33] that stated perceived risk has a negative and significant effect on consumer
confidence in e-marketplaces in Manado. Where the perception of high risk from online
transactions causes a decrease in customer confidence in the platform which then reduces their
desire to transact through e-commerce. However, from the results of this study, it was found that
along with the increased perception of risk investors/potential investors towards the securities
crowdfunding platform actually increased their trust in the platform. [34] states that the amount of
perceived risk can be different, depending on certain individuals. Some individuals can feel a
high level of risk, but for others feel a low level of risk. [35] stated that users are often unaware
of the privacy risks and disclose information on online social networks and online platforms. This
is understandable because the securities crowdfunding platform has been legally registered by
the Financial Services Authority since 2018, and every year the number of platforms that have
legal licenses to operate is increasing. The millennial generation has characteristics that like to
take risks in investing and with the government's legal regulations so that they increasingly
believe in investing through the securities crowdfunding platform.
Social Influence has a positive and significant influence on trust, where the greater the
social influence exerted, the higher the individual's trust in the securities crowdfunding platform.
The results of this study are consistent with research by [36]–[39]. The existence of this social
influence or pressure will form a new view and belief of the individual. This is proven in research
by [40] where the use of social networking applications (SNS such as Facebook, YouTube,
Twitter, and company blogs) is suggested to create trust in consumers who were previously
unfamiliar with the products offered. Social influence has a good influence in influencing French
consumer confidence [37]. In fact, individuals accept or refuse to take an action on the basis of
recommendations from people they know well, which helps individuals to build a trust. The
millennial generation who is very active in socializing both online and offline is very easy to
receive new information through social media, especially regarding investment, it will be easier
to build their trust in a platform. The more friends, family, colleagues, and figures who recommend
investing through the securities crowdfunding platform, the more they will trust the platform.
Social Influence has a positive and significant direct influence on behavioral intention to
use the securities crowdfunding platform. The greater the social influence exerted, the interest of
individuals to invest through the securities crowdfunding platform will increase. In research
conducted by [21], [24], [25], [41] stated that social influence is very influential on individual
intentions to use. The closest people are believed to lead to good things so that it is more effective
to invite millennials to invest [25]. Recommendations from close associates as well as the
influence of social media in disseminating information related to attractive new investment
alternatives will increase individual interest in investing through the securities crowdfunding
platform. The millennial generation is often updated with new technological advances and it is
easy for them to adopt technological innovations. Crowdfunding is becoming a technological
innovation-oriented method to raise funds and people can be more influenced by groups who
have an understanding of the innovation [21].
Trust has the most dominant and significantly positive influence on behavioral intention
to use the securities crowdfunding platform. The higher the trust that individuals hold about the
credibility of a new platform, the higher their interest in using it. The intention of individuals to do
transaction on online platforms is influenced by their level of trust [19], [20], [39]. Users will find it
simpler to verify the specifics of these services and assess their validity if there is a high level of
trust in online services [39]. Previous research by [3] stated that trust has the most dominant
influence in explaining investment intention on the Equity Crowdfunding platform. The accuracy
of the information provided by the platform and the platform's ability to fulfil their promises to
investors will foster high interest in investing on the platform. Trust in platforms and business
owners can help investors subjectively get rid of a lot of unwanted behavioral from those they
trust.

• Indirect Effect
Figure 2. Sobel Test of Perceived Ease of Use on Behavioural Intention to Use through
Perceived Usefulness
From the results of sobel test shown in picture 2, it shows that p-value of Sobel test is
0,017 < sig (0,05). Therefore, perceived ease of use fully mediated by perceived usefulness on
behavioral intention to use. These results are consistent with the study by [42]. Muliadi &
Japarianto (2021: 26) stated that if individuals feel the ease of using a technology, it will produce
benefits that are felt by individuals, and when individuals feel the benefits and advantages of
using a technology, it will encourage the emergence of individual interest in using technology
[43]. In this study, the millennial generation is a generation that is very easy to adopt a new
technology so that whether or not it is easy to use an online investment platform does not
necessarily increase their interest in using it in their daily activities to invest. However, if the online
investment platform is easy to use and able to provide benefits to the users, then this will only
increase their interest because there will be benefits, they receive and feel from the ease of use
of the securities crowdfunding platform which is still relatively new in Indonesia.
Figure 3. Sobel Test of Perceived Risk on Behavioural Intention to Use through Trust
0,017 < sig (0,05). Therefore, perceived ease of use fully mediated by perceived usefulness on
behavioral intention to use. These results are consistent with the study by [42]. Muliadi &
Japarianto (2021: 26) stated that if individuals feel the ease of using a technology, it will produce
benefits that are felt by individuals, and when individuals feel the benefits and advantages of
using a technology, it will encourage the emergence of individual interest in using technology
[43]. In this study, the millennial generation is a generation that is very easy to adopt a new
technology so that whether or not it is easy to use an online investment platform does not
necessarily increase their interest in using it in their daily activities to invest. However, if the online
investment platform is easy to use and able to provide benefits to the users, then this will only
increase their interest because there will be benefits, they receive and feel from the ease of use
of the securities crowdfunding platform which is still relatively new in Indonesia.
Figure 4. Sobel Test of Social Influence on Behavioural Intention to Use through Trust
0.062 > sig (0,05). Therefore, social influence is not mediated by trust on behavioral intention to

use. This is not in line with previous research conducted by [44] and [38] where trust mediates
the relationship between social influence and intention to use technology. This is because the
millennial generation tends to act based on testimonials and recommendations from those
closest to them, so there is no need for trust to then move individual intentions to transact and
invest. This is because the closest people are believed to lead to positive things and this will
directly grow their interest in investing [25].
4. Conclusion
Millennials’ interest in investing through Securities Crowdfunding Platform is directly
influenced by perceived usefulness, social influence, dan trust. Otherwise, perceived ease
of use dan perceived risk are not directly influence millennials behavioral intention to use
Securities Crowdfunding Platform. Perceived ease of use has indirect influence through
perceived usefulness and perceived risk has indirect influence through trust on behavioral
intention to use.
Among other variables, trust has the greatest influence on behavioral intention to
use Securities Crowdfunding Platform. Thus, building millennials trust toward the platform
by giving service excellence and guarantee the secrecy of their private information will
increase their interest to invest in Securities Crowdfunding Platform. The more local investor
take part in investing, the more advance Indonesian economic level by supporting MSME
through capital support. Millennials that are in productive time and supported by financial
technology advancement especially online investment, will increase their monetary
inclusion and also become the source of income through various investment. Securities
crowdfunding platform are bridging people with great capital and MSME business owner to
advance Indonesian industry.
The results of this study can be used for future research as references. However,
there are several limitations in this study that hopefully can be developed further in the future
studies. Based on the results, the limitations of this study are the factors affecting the
intention of investing through securities crowdfunding platforms might be different
depending the research time, area, maturity of the market, and population. Therefore, this
study only provides an overview of the relationships among variables when the research is
conducted. This study is limited in Denpasar city and cannot be generalized to other areas
outside Denpasar city. The study also limited to research population and sample which is
only millennials domicile in Denpasar. This research can be a reference for other
researchers to further develop models with different research variables and wider research
locations.
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MENGKATEGORIKAN INDEKS, REVIEW DAN SIMPULAN DARI

JURNAL INTERNASIONAL BERINDEKS SINTA 3

Dosen pengampu: Afrila Mulyati Siregar S,AB, M,AB

Tunggul Immanuel Pasaribu

NO Judul jurnal Indeks/ H

1 The role of E-Satisfaction On 2 17

Volume& Halaman Volume 9 no 1

2. Penelitian ini menggunakan Structural Equation Modelling (SEM) untuk

3. Pada penelitian ini metode pengambilan sampel purposive sampling juga

2. Penelitian ini hanya menggunakan metode survei untuk mengumpulkan

3. Penelitian ini tidak menyertakan variabel variabel lain yang dapat

2. Penggunaan sumber data Primer: Penelitian ini menggunakan sumber data

3. Penggunaan metode analisis yang tepat: Data yang dikumpulkan di

2. Penggunaan analisis statistik yang tepat: Data yang dikumpulkan di

3. Penggunaan referensi yang relevan: Penelitian ini mengacu pada

2. Ketidaklengkapan pengisian kuesioner: Beberapa respondentidak

3. Keterbatasan generalisasi: Penelitian ini hanya dilakukan di area

Ketiga, penelitian ini menggunakan model kerangka penelitian yang jelas,

THE ROLE OF E-SATISFACTION ON REPURCHASE AND E-WOM INTENTION

Enrico Verrell Santoso*), Retno Ardianti*)1

School of Business & Management, Petra Christian University

Jl. Siwalankerto 121-131, Surabaya 60236, Indonesia

118 Copyright © 2023, ISSN: 2407-5434; EISSN: 2407-7321

INTRODUCTION Nonetheless, these prior studies have not explicitly

METHODS In addition to age distribution, we present our

Table 2. Usage Frequency per week

RESULTS variable is greater than that of other latent variables.

Table 4. Convergent validity test results

Table 5. Discriminant validity test results

Table 6. Reliability test results

Figure 1. Results of structural equation modeling

Table 4. Convergent validity test results

Nonetheless, the findings of the present study are REFERENCES

THE INFLUENCE OF CUSTOMER RELATIONSHIP

This research attempts to examine how customer relationship management and

Companies can create customer satisfaction through several factors, such as

Customer relationship management is considered a broad-based approach that

Customer relationship management is considered as one of the strategies to obtain

Following is a step-by-step explanation of the hypothesis based on the previous

H1: There is a positive direct relationship between customer relationship

Customer Relationship Management and Customer Satisfaction

H2: There is a positive direct relationship between customer relationship

Customer Experience and Customer Satisfaction

H3: There is a positive direct relationship between customer experience and

Figure 1: Research Constellation

The analysis requirements test in the structural model applies homogeneity,

Table 1. Normality Test Results

Table 2. Homogeneity Test Results

Linearity and Regression Test

Table 3. Linearity and Regression Test Results

Construct Reliability and Variance Extracted Test Customer Relationship

Table 4. Calculation of Construct Reliability and Variance Extracted (ξ1)

X1 0,74 0,55 0,46

According to the table's calculations, the value of the construct Relationship

Table 5. Calculation of Construct Reliability and Variance Extracted (η 1)

Y1 0,69 0,48 0,52

Construct Reliability and Variance Extracted Test Customer Satisfaction (η 2)

Table 6 Calculation of Construct Reliability and Variance Extracted (η 2)

Y5 1,03 1,06 0,07

T-value Coefficient Calculation Results

Substructure Path Coefficient 1

Figure 2. Substructure Path Coefficient 1

Source: Processed data (2022)

Enrico Verrell Santoso), Retno Ardianti)1