Underlying Factors Influencing Consumers’ Trust and Loyalty in E-commerce

2019 ◽  
Vol 8 (2) ◽  
pp. 186-204
Author(s):  
Wajeeha Aslam ◽  
Annas Hussain ◽  
Kashif Farhat ◽  
Imtiaz Arif
Keyword(s):  
Factor Analysis ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Information Quality ◽  
Equation Modeling ◽  
Security Risk ◽  
Interface Quality ◽  
Perceived Security ◽  
Business To Consumer ◽  
Customer Trust

Customer loyalty and trust are the key factors for long-term profitability and growth for organizations. Regardless of the rapid growth and popularity of the e-commerce, still companies face difficulties in gaining customer loyalty and trust ( Eid, 2011 ). Therefore, the aim of this study is to underlie the factors that gauge e-customer’s trust and e-customer loyalty in Business-to-Consumer (B2C) domain. The data were drawn via 5-point Likert scale adapted questionnaire from 328 respondents who had an experience of e-commerce, who were of working class, and were residing in major urban cities of Pakistan, that is, Karachi, Lahore, and Islamabad. Exploratory factor analysis, confirmatory factor analysis and structural equation modeling (SEM) were applied to test the hypotheses. The findings suggested that website user interface quality, information quality, awareness of e-commerce, and perceived privacy are significant predictors of e-customer trust (ECT) and in turn e-loyalty, whereas perceived security risk was found to have insignificant impact on ECT. This article contributes to enhance the determinants that have an influence in gaining customer trust and loyalty and provides interesting perspective of Pakistani consumers. The findings of the study are beneficial for the e-commerce industry in enhancing ECT and e-loyalty and help them in promoting their business online.

scholarly journals Determinan Kepuasan, Kepercayaan dan Loyalitas Pelanggan UKM Sasirangan Melalui Media Sosial Instagram (Studi Pada Pelanggan yang merupakan Followers/Pengikut Kasasiur_Banjar )

2021 ◽  
Vol 5 (1) ◽  
pp. 14-30
Author(s):  
Rizki Adhani ◽  
RR Yulianti Prihatiningrum
Keyword(s):  
User Interface ◽  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Information Quality ◽  
Equation Modeling ◽  
Significant Positive Effect ◽  
Interface Quality ◽  
Customer Trust ◽  
Positive Effect

This study aims to analyze the influence of User Interface Quality (X1), Information Quality (X2), Privacy Perception (X3) and Price (X4) on Satisfaction (Y1), analyze the influence of User Interface Quality (X1), Information Quality (X2), Privacy Perception (X3) and Satisfaction (Y1) on Trust (Y2) and analyze the influence of Satisfaction (Y1) and Trust (Y2) on Customer Loyalty (Y3).This research is a quantitative study using a survey approach. This research method uses a questionnaire with 150 respondents who are Instagram followers with kasasiur_banjar accounts. In this study using the Non Probability Sampling technique by purposive sampling. Measurement of variables using a Likert scale technique with a scale of weights from 1 to 5. To determine the effect of the studied variables Structural Equation Modeling (SEM) analysis tools are used.The results of the study concluded that User Interface quality has a significant positive effect on customer satisfaction. User Interface quality has a significant positive effect on customer trust. Information quality has a significant positive effect on customer satisfaction. The quality of information t has a significant positive effect on customer trust. Privacy perception has a significant positive effect on customer satisfaction. Privacy perception has a significant positive effect on customer trust. Price has a significant positive effect on customer satisfaction. Customer satisfaction has a significant positive effect on trust. Customer satisfaction has a significant positive effect on customer loyalty. Customer trust has a significant positive effect on customer loyalty. 

scholarly journals PENGARUH FAKTOR-FAKTOR ANTESEDEN E-CUSTOMER SATISFACTION, E-CUSTOMER TRUST DAN COMPULSIVE BUYING PADA PEMBENTUKKAN E-CUSTOMER LOYALTY

2017 ◽  
Vol 19 (1) ◽  
pp. 1
Author(s):  
Petra Surya Mega Wijaya ◽  
Ety Istriani
Keyword(s):  
User Interface ◽  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Information Quality ◽  
Compulsive Buying ◽  
Equation Modeling ◽  
Quality Information ◽  
Interface Quality ◽  
Perceived Security ◽  
Customer Trust

Temuan dari penelitian diharapkan dapat memberikan masukan yang berharga pada pengembangan teori belanja online dan bagi perusahaan yang akan melakukan penjualan secara online. Penelitian ini mencoba untuk menggabungkan penelitian yang dilakukan oleh Wang dan Yang (2008), Eid (2011) dan Campbell (2013). Adapun variabel penelitian yang akan digunakan adalah e-customer loyalty, e- customer satisfaction, e-customer trust, compulsive buying, user interface quality, information quality, perceived security, perceived privacy, dan competent behavior. Rumusan masalah penelitian adalah (1) apakah e-customer loyalty dipengaruhi oleh e- customer satisfaction, e-customer trust, dan compulsive buying, dan (2) apakah e- customer satisfaction dan e-customer trust dipengaruhi user interface quality, information quality, perceived security, perceived privacy, dan competent behavior. Sebanyak 200 kuesioner dibagikan secara purposive kepada masyarakat Yogyakarta yang berusia 15 tahun hingga 30 tahun dan pernah melakukan transaksi online sedikitnya satu kali dalam 6 bulan terakhir. Response rate penelitian ini adalah 100% karena penarikan kuesioner dilakukan saat itu juga sesaat setelah pengisian selesai. Pengujian hipotesis menggunakan alat analisis Structural Equation Modeling (SEM). Hasil penelitian menyatakan bahwa semua hipotesis yang diajukan dapat didukung, sehingga dapat disimpulkan bahwa (1) e-customer loyalty dipengaruhi oleh e-customer satisfaction, e-customer trust, dan compulsive buying, dan (2) e-customer satisfaction dan e-customer trust dipengaruhi oleh user interface quality, information quality, perceived security, perceived privacy, dan competent behavior.This study tries to combine research conducted by Wang and Yang (2008), Eid (2011) and Campbell (2013). Formulation of research problems are: (1) whether the e-customer loyalty is influenced by the e-customer satisfaction, customere-trust, and compulsive buying, and (2) whether the e-customer satisfaction and customer trusteinfluenced user interface quality, information quality, perceived security, perceived privacy, and competent behavior. A total of 200 questionnaires were distributed to the people of Yogyakarta purposive lyaged 15 years to 30 year sand never done an online transaction at least oncein thelast 6 months. Hypothesis testing using analytical tools. Structural Equation Modeling (SEM). The study states that all proposed hypothesis can be supported, so itcanbe concluded that (1) e-customer loyalty is influenced by the e- customer satisfaction, customere-trust, and compulsive buying, and (2) the e-customer satisfaction ande-customer trustis influencedbythe user interfacequality, information quality, perceived security, perceived privacy, andcompetentbehavior.

scholarly journals Influence of Trust on Customer Engagement: Empirical Evidence From the Insurance Industry in Ghana

SAGE Open ◽  
2020 ◽  
Vol 10 (1) ◽  
pp. 215824401989910 ◽  
Author(s):  
James Agyei ◽  
Shaorong Sun ◽  
Eugene Abrokwah ◽  
Emmanuel Kofi Penney ◽  
Richmond Ofori-Boafo
Keyword(s):  
Customer Loyalty ◽  
Life Insurance ◽  
Service Provider ◽  
Structural Equation ◽  
Insurance Industry ◽  
Customer Engagement ◽  
Equation Modeling ◽  
Mediating Role ◽  
Customer Trust

This study examined the influence of trust dimensions on customer engagement, and the resultant impact of customer engagement on customer loyalty in the context of life insurance. Furthermore, it investigated the mediating role of customer engagement in the relationships between trust dimensions and customer loyalty. A total of 452 valid responses from life insurance customers in Ghana were examined using structural equation modeling (SEM). The results revealed that trust in service provider, trust in the regulator, economy-based trust, and information-based trust significantly influence customer engagement, with trust in service provider and trust in the regulator driving a higher level of customer engagement. The results also uncovered that customer engagement significantly enriches customer loyalty and mediated the relationships between the trust dimensions and customer loyalty. The findings highlight the importance of building convincing customer trust to advance customer engagement and customer loyalty.

Building trust by signaling trustworthiness in service retail

2014 ◽  
Vol 28 (5) ◽  
pp. 361-373 ◽  
Author(s):  
Husni Kharouf ◽  
Donald J. Lund ◽  
Harjit Sekhon
Keyword(s):  
Customer Loyalty ◽  
Structural Equation ◽  
Positive Impact ◽  
Past Research ◽  
Customer Relationships ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
Survey Responses ◽  
Customer Trust

Purpose – The purpose of this paper is to investigate the role of retailer trustworthiness in driving customer trust and the subsequent impact on loyalty. The authors position trustworthiness as a mediator in the link between retail strategies and the development of trust. They model customer loyalty to the service retailer as a function of the trust created through trustworthy perceptions. Design/methodology/approach – The authors validate their model using 420 survey responses from customers in a service retail setting. Nine research hypotheses were tested using structural equation modeling. Alternate models are estimated, and the results provide support for the theory-based trustworthiness mediation model. Findings – Trustworthy behaviors first build trustworthiness, which then translates into customer trust and ultimately has a positive impact on both behavioral and attitudinal loyalty. Research limitations/implications – The research highlights the importance for retailers to signal their trustworthiness to build customer trust and loyalty. Researchers should measure trustworthiness perceptions when examining customer relationships and managers should plan strategically to develop both trust and trustworthiness with their customers. Originality/value – This study is one of the first to investigate the mediating effect of trustworthiness on customer loyalty in service settings. While past research has investigated dimensions of trustworthy behaviors, none has included a measure of trustworthiness perceptions and consumer trust in the same theoretical model. The results of the research provide important insights for both researchers and managers.

scholarly journals Anteseden Dan Konsekuensi Dari Switching Cost Pada Industri Perbankan

2019 ◽  
Vol 14 (01) ◽  
pp. 41-53
Author(s):  
Antonius Adi
Keyword(s):  
Structural Equation Modeling ◽  
Service Quality ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Switching Cost ◽  
Equation Modeling ◽  
Company Reputation ◽  
Trust Company ◽  
Customer Trust

Abstrak: Tujuan dari penelitian ini adalah untuk menganalisis pengaruh overallservice qualityterhadap customer loyalty melalui mediasi company reputation, customer trust, dan switching costpada Industri Perbankan di Indonesia. Penelitian ini dilakukan melalui survei terhadap pelangganIndustri Perbankan dengan total 230 sampel di Jakarta. Data primer dikumpulkan dengan metodepurposive sampling. Analisis data dilakukan melalui Structural Equation Modeling untuk mengujihipotesis, dengan menggunakan software AMOS 22.0. Temuan dalam penelitian ini adalahcustomer loyalty dipengaruhi oleh switching cost, customer trust, company reputation dan overallservice quality. Switching cost paling kuat dipengaruhi oleh customer trust. Temuan lain adalahbahwa customer loyalty paling kuat dipengaruhi oleh overall service quality. Studi ini memberikankontribusi teoritis dalam bentuk model alternatif customer loyalty dalam industri perbankan danmemberikan implikasi manajerial bagi manajemen bank.

scholarly journals Pengaruh Perceived Quality Terhadap Customer Loyalty dengan Perceived Risk dan Customer Trust Sebagai Variabel Mediasi pada PT. XYZ

2020 ◽  
Vol 4 (3) ◽  
pp. 29
Author(s):  
Edrick Heriyanto ◽  
Eko Harry Susanto
Keyword(s):  
Structural Equation Modeling ◽  
Customer Loyalty ◽  
Indirect Effect ◽  
Perceived Risk ◽  
Structural Equation ◽  
Sampling Method ◽  
Perceived Quality ◽  
Equation Modeling ◽  
Independent Variable ◽  
Customer Trust

The purpose of this study is to examine the influence of perceived quality toward customer loyalty which is mediated by perceived risk and customer trust for PT. XYZ that engaged in chemistry. There are four variables perceived quality as the independent variable, customer loyalty as the dependent variable, and perceived risk and customer trust as mediating variable. The sample was determined by purposive sampling method, the questionnaire was well-collected and was used in data processing using the Structural Equation Modeling (SEM) method with Smart PLS 3.0 program. This analysis was conducted on 115 respondents as customer of PT. XYZ. Based on the result of the study, it was found that perceived quality, perceived risk, and customer trust have influence towards customer loyalty, perceived quality have influence towards perceived risk and customer trust, perceived quality had an indirect effect on customer loyalty via perceived risk and customer trust.

scholarly journals PENGARUH KUALITAS PELAYANAN DAN KEPUASAN NASABAH TERHADAP KEPERCAYAAN NASABAH DAN LOYALITAS NASABAH PENABUNG AKTIF PT BANK BUKOPIN CABANG BANJARMASIN

2021 ◽  
Vol 10 (2) ◽  
pp. 1
Author(s):  
Akhmad Darma Putera ◽  
Juhriyansyah Dalle ◽  
Muhammad Riduansyah Syafari
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Target Population ◽  
Mediation Effect ◽  
Equation Modeling ◽  
Quality Service ◽  
Direct Effects ◽  
Research Findings ◽  
Customer Trust

The aim of this research is to analysis the effects of quality services and customer satisfaction on customer loyalty with mediating customer trust of the activesavers. This research is an explanatory-causality which tests and analysis 5 direct effects and 2 mediation effect. Target population of this research is the activesavers/customer PT Bank Bukopin Banjarmasin Branch. The quantitative data is processed using Structural Equation Modeling (SEM), aided by SmartPLS Software.The research findings demonstrate that (1) service quality have positive signifikan effect on customer trust (H1) and on customer loyalty (H2); (2) customer satisfaction positif insignificance effect on customer trust, but positive significance effect on customer loyalty; (3) customer trust have positive significance effect on customer loyalty (H5); (4) customer trust have positive significance partially-mediation the effect of quality service on customer loyalty (H6); and (5) customer trust no mediation the effect of customer satisfaction on customer loyalty. The power relevant predictive this loyalty model at minimum moderate/medium.Keywords: Quality Service, Customer Satisfaction, Customer Trust, and Customer Loyalty.

Corporate social responsibility toward stakeholders and customer loyalty: investigating the roles of trust and customer identification with the company

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Niki Glaveli
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Social Exchange ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Equation Modeling ◽  
Content Type ◽  
Corporate Social ◽  
Customer Trust ◽  
The Impact

Purpose This study aims to uncover the underlying multiple intervening mechanisms between corporate social responsibility (CSR) and customer loyalty. Social identity and social exchange theories offer the ground for prediction that the primary outcomes of CSR initiatives are customer–company (C–C) identification and customer trust, which in turn affect customer loyalty. Also, the differential effect of CSR behaviors toward specific stakeholder groups on customer attitudes and behaviors are examined. Design/methodology/approach Data were collected from 333 customers of telecommunication companies in Greece. Structural equation modeling was used to test the postulated relationships. Findings The findings demonstrate that both C–C identification and customer trust intervene in the relationship between customer perceptions of CSR and customer loyalty; however, the identification mechanism is stronger than the trust mechanism in building customer loyalty while C–C identification seems to drive customer trust. Moreover, out of the three CSR components (customers, employees, and society/environment) that were considered as relevant to customers and were investigated, customer-centric activities were found to be the stronger predictor of both C–C identification and customer trust. Also, CSR toward society/environment was found to positively influence C–C identification. Practical implications The findings of this research can assist practitioners in effectively conceptualizing CSR image from a customers’ point of view and designing their company’s CSR and communication strategies to boost positive customer responses and strong long-term relationships. Originality/value The current study provides further insights into the complex relationship between CSR and customer responses and the impact that different CSR activities may have on customers.

The Influence of Assortment Satisfaction on Customer Loyalty

2017 ◽  
Vol 7 (4) ◽  
pp. 39-51
Author(s):  
Pranay Verma ◽  
Anil Kumar Sharma
Keyword(s):  
Factor Analysis ◽  
Structural Equation Modeling ◽  
Customer Loyalty ◽  
Perceived Risk ◽  
Structural Equation ◽  
Equation Modeling ◽  
Intrinsic Cues ◽  
Price Comparison ◽  
Established Relationship ◽  
The Impact

This study investigates how assortment satisfaction is predicted for purchase of online footwear and its consequences. This research is interplay of product display, customer loyalty, perceived risk and price comparison to ascertain their relationships. It examines the association between intrinsic cues and assortment satisfaction. This article also probes the well-established relationship between satisfaction and loyalty by way of assortment satisfaction and customer loyalty. The impact of product display, customer loyalty and price comparison on assortment satisfaction has been empirically verified by exploratory factor analysis and tested by structural equation modeling. The findings prove that price comparison is the most important factor influencing assortment satisfaction. Assortment satisfaction leads to customer loyalty. The authors develop a model that jointly optimizes assortment satisfaction for product display and price comparison and builds customer loyalty.

scholarly journals Antecedents of Customer Loyalty in Banking Sector: A Mediational Study

2018 ◽  
Vol 43 (2) ◽  
pp. 92-105 ◽  
Author(s):  
Suhail A. Bhat ◽  
Mushtaq A. Darzi ◽  
Shakir H. Parrey
Keyword(s):  
Factor Analysis ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Banking Sector ◽  
Retail Banking ◽  
Future Research ◽  
Service Firms ◽  
Executive Summary ◽  
Customer Trust

Executive Summary The competition among the organizations is increasing continuously and there has been a rapid shift in the business process deliverance. Financial service firms are striving to improve their business processes by liaising with customers to survive and compete successfully. The literature has obstinately emphasized on the utmost importance of trust and loyalty to survive in the financial sector. This study aims to explore the role of customer knowledge management (CKM) and satisfaction as antecedents of customer trust in the retail banking sector. The causal relationships existing between CKM, satisfaction, trust, and loyalty are explored. The mediating role of customer trust in the knowledge–loyalty and satisfaction–loyalty relationships is also explored. The data has been collected randomly from 412 customers of a private bank through survey by questionnaire. The research instrument has been developed and purified through factor analysis (confirmatory factor analysis). Structural equation modelling (SEM) has been employed to examine the causal relationship and fitness of the proposed model. The findings of the study reveal that CKM and satisfaction positively impact customer trust, and customer trust has a significant impact on loyalty. Besides, trust partially mediates the effect of knowledge and satisfaction on loyalty. The findings of the study are valuable to managers and strategists in understanding customer need in order to formulate the relevant customer loyalty programmes. However, the study focused on retail banking sector and uses data from a single bank only. Future research may evaluate the generalizability of findings across other banks as well as other nationalities. The main contribution of this study is to the loyalty literature by empirically validating the identified antecedents and demonstrating their role in managing loyalty. Furthermore, the study provides some valuable insights into the relational exchanges between variables wherein some inferences are derived from results regarding trust and loyalty.

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