Professional Documents
Culture Documents
By :
C1K013036
A. Background
need divide into 3 intensity of needs, namely needs of primary, secondary, and
tertiary. Thus, the development of times and high mobility make human needs
became opportunity for develope business in fulfilled the customer needs in quick
way.
society, and cause changes in the way people to communicate, seek information,
and transactions. Which previously, still use the traditional way that is offline to a
The Internet becomes one of the most important elements in the changing
culture from offline to online. Years, companies have tried to survive the fierce
changes. So now, not only the media information and social media that
transitioned into online, and how we transact is selling and buying goods turned
into online. Therefore, many companies old or new, that appeared to use the
startup dates back to the 1990's where it occured bubble dotcom. Which is, the
number of western company that changed its company with internet base. Since
The emergence of startup in Indonesia is still very new, some predictions from
kind of bubble, because everyone makes silly valuations without any sign of profit
in the near future (Ken Dean Lawadinata, Techinasia.com, 15 October 2016). The
called the Creative Economy Agency (Bekraf). The other support done by
the 1000 National Digital. Whereas Rudiantara stated that is startup movement
with the aim that Indonesia can be the world's biggest digital power, not just in
This support is in line with Indonesia's achievement with GDP in 2015 has
reached about $ 861,934 billion and Indonesia also become one of the most
populous nation, and nation with the largest economy in ASEAN (Oxford
Business Group, The Report Indonesia 2017). It means, that can be great
opportunity for startup to enter the market competition with consumtive society
and many potential customer. Looking at internet and mobile usage, in 2016,
Indonesia's internet users have reached around 132.7 million or 51.8% increase
from 2014, which 53.6% are between 25 to 44 years old, 28% are 45 years old
and older, and 18.4% are between 10 to 24 years old. The internet usage by
mobile device is 47.6% mobile and 1.7% desktop with time spent per day is 68
minutes using web browser on smartphone, and 52 minutes using web browser on
bigger than the original $ 88 billion estimated for all six SEA markets combined.
Indonesia. Also show that a large market creates a fierce competition for startup
as having the highest start-up in Southeast Asia, which is about 2,000 startups
the company from competitors, with the goals company can create customer
customer has been satisfied with the website offers, and customer revisit is
fulfillment of the consumer needs and expectations on the website and at the end
customer will come again to the web sites (Kabadayi and Gupta, 2011; Rababah et
al., 2011). According to Park and Kim (2003) that in the online revisit a website
(Kabadayi and Gupta, 2005; Park and Kim, 2003). Therefore, to improve the
quality of the website, the company should be able to see customer behavior and
match it with the content on the website, because consumers revisit behavior
implies that the web sites content was strong enough to make the consumers
return (Kabadayi and Gupta, 2011). Furthermore, there are some literature show
that how satisfaction mediates the web site characteristics and revisit intention
2000). And the empirically showed that there exists a direct and positive effect
between attitude towards web usage, usage intention and actual usage (Davis et
web site (Szymanski and Hise, 2000). Web site satisfaction is fundamental to
profitability of online operations (Chiou and Shen, 2006). Since the web site is the
primary medium available to persuade online customers during this initial visit,
web site satisfaction is crucial for a successful transaction (Ranaweera et. al.,
website service quality, and element from the website that can make customer
characteristic.
Layout design is one element that can affect website interactive because
layout design is the arrangement of product information content and the images on
the websites (Wu et al., 2013). Another literature said the online shopping
atmosphere and layout design formed by both the content and structure of the
purchases (Chen et al., 2012; Eroglu et al., 2001; Liu et al., 2008; Karimov et al.,
2011; Koo and Ju, 2009; Mummalaneni, 2005; Yen and Lu, 2008). Based on
the virtual retail environment, which consists of three factors: virtual layout and
design, virtual atmospherics, and virtual theatrics. Thats the some of literature
that includes layout design and atmosphere attribute to be a represent their website
value to attract customer. According to Carroll (2012) stated that the retailing
atmosphere is one of the key success factors with regard to online stores.
and the resulting revisit intention. Based on (Kabadayi and Gupta, 2011) take
from Chen and Wells (1999) have identified information content and organization
study from (Ellsworth and Ellsworth, 1997) cite that offering valuable information
on the web site, changing some of the content frequently so that something is
mean that the website characteristic as content from the website that can be
assesment tools for the customer to make consideration about the website quality.
success or failure in e-commerce are not just web presence and low price, but also
the process of delivery and the quality of the website. Szymanski and Hise (2000)
Thus, on-line sellers must understand how the specific characteristics of their
online presence may potentially, or actually, affect customers trust (Kolsaker and
Payne, 2002). Based on all the variables that can affect the online business or
startup company, we can see that in the customer acquisition in startup company
was founded by William Tanuwijaya and his friend Leontinus Alpha Edison, with
the vision is Tokopedia, shapping better Indonesia through the internet. Tokopedia
successful.
Capital. Softbank is the investor behind the success of Alibaba, while Sequoia
Capital is the investor behind the success of Apple, Google, Instagram, WhatsApp
score, where SR Score is a number between 0 and 100,000. SR score reflects the
importance of a startup on the internet and its social influence. It has been
calculate based on SR Web and SR Social with factors for assesments on SR web,
for example the number and quality of web pages that link to a startup web page.
The higher the quality of the incoming links, the higher the SR Web, the
distribution of internal links, the number and quality of the external links, the on-
page SEO factors, the estimated audience factor, And for SR social such as
facebook engagement, and twitter engagement (startuprangking.com, 2017).
the most popular e-commerce brand. Therefore, for all these achievements make
2017). In view Tokopedia website we can see changes that occur from when it
Kabadayi and Gupta, (2011). Where, in their study investigated three types of
a study conducted by Wu et al, (2013). Whereas, they use deign and atmosphere
layout into two factors that will influence purchase intention. This paper uses
variables that will influence customer satisfaction and customer revisit intention.
The reason why it combines the two variables is because they represent two sides
Gupta, 2011), and from the appearance is the layout design (Wu et al. 2013), and
it will represent the two aspects of the website visually and its usage, which is
influence customer satisfaction and customer revisit intention. The variables was
startup in indonesia still new and this variables will be consideration for several
website on e-commerce company represent their customer service that will affect
customer satisfaction. Kabadayi and Gupta, (2011) that contributes to this trend
web sites. It is evident that if companies that use web sites want to keep their
consumers coming back, they need to understand the factors that affect their
intention to revisit. In that research only use CD-selling website to be their object
study. And in previous research by (Wu et. al., 2013) found that attention to the
visual design of their websites with regard to online store layout (e.g. large
happy and warm) to attract potential customers. Base on the previous research,
this paper focused on how they evaluate various web site characteristics and
C. Scope of Research
Variables in this study are limited Tokopedia.com website with two variables,
one variable each from (Wu et al., 2013) variable (e.g layout design) and from
D. Research Objective
1. General
2. Specific
various parties:
1. Theoritical Benefit
marketing.
2. Practical Benefit
A. Literature Review
1. Layout Design
Previous study in services sector, Booms and Bitner (1981) developed the
seller and customer takes place, emphasizing the impact of the physical
behaviour. In the online world that can represent physical environment is store
layout. Whereas, store layout, or in other words, the stores internal space
defined layout design is the arrangement of product information content and the
(2009) virtual store layout as a hyperlink structure and search engine mechanism,
which affect user navigations in the virtual store. It means, web store layout has a
use the internet as their primary shopping medium (Lohse and Spiller, 1998;
Burke, 2002; Siomkos and Vrechopoulos, 2002; Lohse and Spiller, 1999).
In their study (Wu et al., 2013) use term of atmospherics is used to describe a
stores space and design, while it is now also used in e-commerce environments to
describe the layout and design of the internet store site (Abbott et al., 2000). Web
site revisiting, browsing, etc.) (Dailey, 2004, p. 796). Study by Milliman and
Fugate (1993), defined web atmospheric could view as any web interface
means, layout design is the part of web atmospheric and the online shopping
atmosphere and layout design formed by both the content and structure of the
purchases (Chen et al., 2012; Eroglu et al., 2001; Liu et al., 2008; Karimov et al.,
2011; Koo and Ju, 2009; Mummalaneni, 2005; Yen and Lu, 2008). Therefore, the
functional aspects of the online store (e.g. security, reliability, and effectiveness)
but rather heavily relies on the fact that e-tailing effectiveness depends to a great
O-R) framework from the Mehrabian and Russell (1974) that involves store
layout design and atmosphere (e.g. Graphics, context, and layout) as the stimuli,
which may inuence the consumer emotional arousal and attitude as the
organism and purchase intention to become their response toward the sample
scheme for website design: visual design, such as layout and colour that gives
the website; and social cue design, which is embedded in the web interface and
freeform, and racetrack) were transform into virtual layouts for computer-
mediated interfaces over the web (Vrechopolous et al. 2004), whereas perceived
usefulness (PU) and perceived ease of use (PEOU) be their influence factors. Grid
layout is a rectangular arrangement of displays and long aisles that generally run
and styles of display, and the racetrack store layout leads the customer along
specic paths to visit (Ghosh, 1994; Mason, Mayer, & Ezell, 1991; Levy & Weitz,
2001; Lewison, 1994). The paper replicates as well as extends the work of
Vrechopoulos et al. (2004). The result from this study showed that, there are
signicantly affect the attitude towards the store regardless of the type of layout
The result study by (Wu et al., 2013) indicated that the inuences of layout
design and atmosphere on the consumers emotional arousal and attitude toward
the website are signicant and the results of this research demonstrate the effects
These results imply that a good layout design and pleasing atmosphere will lead to
higher level of emotional arousal and consumer attitude. Based on three major
types of store layout (Vrechopoulos et al., 2004) result showed implies the
freeform layout, which was perceive as the most useful layout for conducting
planned purchases, the freeform version was also perceived as the most
entertaining layout, and the grid layout is the most effective means of navigating a
virtual retail store, in line with Human Computer Interaction (HCI) research
ndings (Lohse and Spiller, 1998; Nielsen, 1999). These researched showed that
virtual retail store, but not work in the same way. Thus, the more satisfied
consumers are with the overall site experience, the more inclined they will be to
revisit the web site (Flores, 2004; Hong and Kim, 2004).
indicators :
b. Ease of use, the degree to which a person believes that using a particular
enjoyable.
According to the previous study, the researcher used this indicator that would
depict the layout design :
a. Organized layout, Arrangement between image and text into structured or
coherent layout.
seen from the result that the indicatoras from (Wu et al., 2013) gives a significant
influence on attitude toward the web site. It means, this indicator can express
website satisfaction.
2. Website Characteristic
Each website has its own characteristics that distinguish one website from
another. The literature has examined several different web site characteristics that
influence positive outcomes at a web site (Kabadayi and Gupta, 2011). For
example, Szymanski and Hise (2000) indicated that convenience, site design,
consumer assessments of web site satisfaction. Chen and Wells (1999) have
Based on these and other related studies, it means that the website characteristic is
a content from the website that can be assesment tools for the customer to make
Based on study conduct by (Kabadayi and Gupta, 2011), their focus on three
products and services offered at a web site, convenience refers to the extent to
which a consumer feels that the web site is simple, easy to navigate, intuitive and
consumers. In these study (Kabadayi and Gupta, 2011) has suggested that the web
revisit intention) depends on distinct consumer motives (e.g. goal directed and
experiential) , which is goal directed (focused on the end goal such as a relatively
experience and less concerned with such a goal as immediate purchase) (Hoffman
and Novak, 1996; Schlosser, 2003). Based on study conducted by (Yun and Good,
2007) there are used three types of store image attributes (i.e. merchandise
relationship with the e-tailer (Yun and Good, 2007). Both of study showed that
there are antecedent factors that can influence web satisfaction and revisit
intention.
The result study by (Kabadayi and Gupta, 2011) reveal that meditational
through web site satisfaction, for experiential consumers, content and convenience
does have such an effect. Based on (Yun and Good, 2007) result is significant
effect of store image on patronage intention was consistent with earlier studies on
store loyalty (e.g. Koo, 2005). Significant relationships were found between e-
store image and e-store attributes, suggesting many opportunities for retailers to
improve the internet shopping experience for consumers and to give a personality
to an e-store. To that end, Rababah et al. (2011) claim that the main determinants
of success or failure in e-commerce are not just web presence and low price, but
also the process of delivery and the quality of the web site, if these factors are
good, customers are willing to pay more for the product or service. Both
consumers, because such consumers usually spend more, buy more frequently,
have more motivation to search for information, are more resistant to competitors
promotions, and are more likely to spread positive word of mouth (Dick and Basu,
motive, which is content and convenience does have such an effect on revisit
Content
Convenience
characteristic is:
b. Convenience/time saving
c. Search/navigation
d. Design
According to the previous study, the researcher used those indicators that
intention on the website, and choose Privacy and security indicator by (Yun and
Good, 2007), because of some literature stated that the indicator able to be
3. Customer Satisfaction
encounter is often the major driver of customer satisfaction (Bitner et al., 1990).
That is, the way in which the service is delivered (i.e. the process or relational
component) plays a major role in driving satisfaction (Bansal et al. 2004). In the
likely driven by Web site characteristics (e.g. easy to use) and service features
(e.g. shipping and handling, customer service). Philip Kotler (2011) defined
satisfaction is the products perceived performance relative to a buyers
of the consumers needs and expectations at the web site. Oliver (1999) defined
experience. According to (Muylle et al. 2004) web site user satisfaction may be
decision making process. Thus, the more satisfied consumers are with the overall
site experience, the more inclined they will be to revisit the web site (Flores,
site is influenced by the consumers attitude toward using the technology involved
an overall positive attitude toward that web site (Szymanski and Hise, 2000).
TAM also has been employed to understand web site revisiting behavior and the
results suggest a positive relationship between attitude toward the web site and
Based on the TAM studies, take from (Kabadayi and Gupta, 2011) posit that
satisfaction with a web site mediates the relationship between the three significant
web site characteristics, content, convenience and customization (Chen and Wells,
1999; Cheung and Lee, 2005; Ghose and Dou, 1998; Shankar et al., 2000) and
intention to revisit. Based on (Kabadayi and Gupta, 2011) take from Davis (1989)
suggested that web site content, ease of use and the ability to easily navigate a
web site are the drivers of web site satisfaction. Study conducted by Tontini et al.
(2015) reveal that The dimensions fault recovery and accessibility/speed are
the two with the highest impact on overall satisfaction. The findings that tangible
restitution for a service failure by online retailer, with positive interactions with
Study by (Szymanski and Hise, 2000) our objective is to provide the initial
that convenience, product information, site design, and financial security have a
not to buy online. According to Bai et al. (2008), the quality of the website is a
online products. Rababah et al. (2011) state that a website must try to fulfill the
satisfaction is:
According to the previous study, the researcher used this attributes that would
This indicators more tendency to (Kabadayi and Gupta, 2011) study, because
in their result web site satisfaction to be mediate variable between web site
4. Customer Revisit
Since most of the online businesses often take more than a visit to make a sale
site loyalty in the long run (Muller et al., 2008). Loyal customers visit their
favorite web sites twice as often as non-loyal customers, and loyal customers
state that a website must try to fulfill the needs of customers to ensure return visits
and win their loyalty. It means, revisit intentions is the part of customer loyalty,
which it is antecedent factor of customer loyalty, and we must ensure that what is
expectation, then will make the customer back again on the website. According to
previous study by (Flores, 2004) stated first-time visitors need high-value content
experience and trigger a revisit. Based on study by (Kabadayi and Gupta, 2011)
that consumers revisit behavior implies that the web sites content was strong
enough to make the consumers return. Then, based on previous literature that the
again to the website, because of the customers has been satisfied or there are
2000), Petricks research (2004) showed that the more behaviorally loyal visitors
are, the more likely they are to revisit. Based on study by (Oppermann, 2000)
whereas the study talk about tourist loyalty, defined The degree of tourists
(2003) note that in the online environment intention to revisit a web site is
and revisit intention, but there are some similarities in the dimensions of website
characteristics although different terms. Previous study by (Suh et al., 2016) for
SQ) and satisfaction on behavioural intention to revisit sports websites. Suh et al.
(2016) using five service quality factors of sports websites (e.g. usability, privacy,
hyperlinks and a site map (Parasuraman et al, 2002, 2005), privacy refers to the
degree to which the customer believes that a website is a safe place, free from
risks and is not sharing personal information (Parasuraman et al, 2005; Zeithaml
et al, 2002), Reliability is defined as how accurately and correctly the website
fulfils the needs of the customer (Li et al, 2002), and Appearance involves
websites graphical elements and style, including animation, layout, colour, video
(2002, p.11) defined e-SQ as the extent to which a website facilitates efficient
and effective shopping, purchasing and delivery. E-SQ which is the quality that
revisits (Zeithaml et al, 2000, 2002). The result of these study showed that the
indicates a direct link between e-SQ and revisitation. These findings are consistent
with previous studies (e.g. Bai et al, 2008; Tsuji et al, 2007), which found that
there exists an indirect effect between perceived service quality and behavioural
3. I have an intention to come back to this web site in the near future.
According to (Shu et al. 2016) study, the measurement of revisit intetnion is:
According to the previous study, the researcher used these attributes that
4. I plan to increase the frequency with which i buy from this website.
With indicators by (Kabadayi and Gupta, 2011) this study want to know
1. Hypothesis
design and atmosphere on the consumers emotional arousal and attitude toward
the website are significant, and these results imply that a good layout design and
pleasing atmosphere will lead to higher level of emotional arousal and consumer
attitude. Whereas, study by Farley and Stasson (2003) define attitude as a multi-
user satisfaction as the attitude toward the web site by a hands-on user of the
organizations web site. Melone (1990) suggests that user satisfaction is embodied
in user attitudes. For instance, in the definition of Doll and Torkzadeh (1988)
who define end user computing satisfaction as the affective attitude towards a
claimed that web interface design plays an important role in affecting customers
attitude toward the website. According to result by (Emmanouela et al. 2011) the
effect of the perceived ease of use of the layout on consumers attitude is
online store by its environmental elements, such as special layout design and
Eroglu et al., 2001; Fink et al., 2008). Based on study by Vrechopoulos et al.
(2004) the results show that layout significantly affects online consumer buying
behavior. Some literature is taken from Vrechopoulos et al. (2004) does not use
satisfaction as the response of layout design. For instance, Grewal and Baker
(1994) note that store layout affects consumers price acceptability, which is
through the Internet, Lohse and Spiller (1998) state that online store layouts have
a critical influence on traffic and sales. From the previous study above, raised the
hypothesis:
According to (Kabadayi and Gupta, 2011) unveils how web site satisfaction
that mediates the website characteristics. Szymanski and Hise (2000) indicated
navigate a web site are the drivers of web site satisfaction. Muylle et al. (2004)
found that information content, its presentation and organization of a web site
have been found as key predictors of its users satisfaction. According to Yeung
and Law (2003), the quality of information plays a vital role in the success of a
hotel web site. From the previous research above, here raise the hypothesis:
the web site. According to (Kabadayi and Gupta, 2011) satisfaction played a
characteristics and their intention to revisit web sites. According to the extant
consumers attitude toward using the technology involved in the site (Koufaris,
an overall positive attitude toward that web site. Thus, the more satisfied
consumers are with the overall site experience, the more inclined they will be to
revisit the web site (Flores, 2004; Hong and Kim, 2004). From the previous
Little empirical theory that states the effect of the design layout on the revisit
intentions. Study conduct by Wu et al. (2013), take from (Dailey, 2004, p. 796)
site revisiting, browsing, etc.). Take from Hong et al. (2004) claimed that web
the website, stating that a website design that is more conducive to users tasks
will generate more positive attitude among users and increase their willingness to
revisit a web site is influenced by the consumers attitude toward using the
technology involved in the site (Koufaris, 2002), TAM also has been employed to
understand web site revisiting behavior and the results suggest a positive
relationship between attitude toward the web site and revisiting intention
Siekpe, 2009).
According to study by Verchopoulos et al. (2004) take from Merrilees and
Miller (2001) report that store layout design is one of the more important
determinants of store loyalty. Based on Park and Kim (2003) note that in the
component of loyalty to that site. From the previous research above, here raise the
hypothesis:
Study by Suh et al. (2016), The current study focused on examining the
convenience, and customize). Take from Cronin et al. (2000) examined service
The results of their study show that both service quality and satisfaction directly
intention (e.g. revisitation). According to Hong et al. (2004) in their study state
that a website design that is more conducive to users tasks will generate more
positive attitude among users and increase their willingness to revisit the website.
Based on (Kabadayi and Gupta, 2011) research also suggests that while all three
characteristics used in this study can be influential in increasing revisit intention.
2. Research Model
Layout Design
X1
H1 H4
X
Customer Customer
satisfaction revisit
H3
Y1 Y2
H2
H5
Web
Characteristic
X2
A. Research Methods
1. Research Type
Type of research was causal research survey method. Means of collecting the
data and investigate the causal relationships and hypothesis testing to give an
The population was all of the visitors and consumer of Tokopedia.com. The
1.96 2
= 0.5 0.5 ( )
0.1
= 96.04 96
Description:
a = Significance rates
e = Tolerance
Based on the result of calculation, the minimal sample size using interval
estimate is 96 respondents. Hair et.al., (1998) suggest that the Structural Equation
Model (SEM) analysis, the minimum sample size is 100 until 200 sample, and
then use a comparison with five observations for each of the estimated
minimum sample should be taken is 105 sample (21 x 5). To qualify the minimum
sample size by using SEM analysis technique, and to anticipate a return rate of
feasible questionnaire (author used return rate 80%) so the sample size used in
Sample method used in this study was convenience sampling to choose the sample
6. Data Sources
a. Primary data
b. Secondary data
Secondary data in this research is data that is written and sourced from the
a. Questionnare
Data obtained by library research, books, papers and journals, and articles
Likert scale is used to measure the variable examined in this study. This
scale used to measure the response or opinion from someone about the social
standards for determining the length of the interval in a nutshell gauge, so that
quantitative data. With this measurement scale, the value of the variable is
127).
1 2 3 4 5 6 7
This study used Structural Equation Model for the data analysis technique.
Perhaps there is also a variable that has double role as independent variable in
process.
Theoretical model has been developed to depict the path diagram for being
estimated.
constructions.
variable that measures construct and defined the set of invalid construct a
or variables.
matrix.
of freedom.
data.
good fit.
g) g) CFI (Comparative Fit Index), the range of values
level of fit.
RMSEA 0.08
GFI 0.09
AGFI 0.09
CMIN/DF 2.00
TLI 0.95
CFI 0.95
with formula:
( . )2
=
( . )2 + .
Note:
. 2
=
. 2 +.
Note:
Std.Loading)2.
Interpret and modification the model that does not meet the
(Indriantoro, 1999).
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