THE EFFECT OF PERCEIVED BENEFITS ON CUSTOMER SATISFACTION AND CUSTOMER RETENTION ON INDONESIAN E-COMMERCE SITES
DOI:
https://doi.org/10.7903/ijecs.1908Keywords:
Perceived benefit, customer satisfaction, customer retention, e-commerce, IndonesiaAbstract
Perceived benefits (utilitarian value, hedonic value, and social value) affect individuals in making decisions and behaving in online purchases through e-commerce. The purpose of this paper is to examine the effect of perceived benefits on customer satisfaction and customer retention on Indonesian e-commerce sites. Previous studies have explored the role of utilitarian, hedonic, and social values on consumer satisfaction. However, there is a lack of research on the effect of social value on customer retention. The current study attempts to fill this research gap. Data were collected using questionnaires on 270 Indonesian e-commerce customers in Indonesia, which were then analyzed using SPSS Statistic 17.0 and WarpPLS 6.0. The results showed that utilitarian value, hedonic value significantly, and positively influenced customer satisfaction on e-commerce purchases. Besides, social value and customer satisfaction significantly and positively affect customer retention. However, the utilitarian value not significant effect on customer retention. Social value not significant effect on customer satisfaction. The implication of this research is to guide e-commerce vendors in noticing the elements associated with perceived benefits to create customer satisfaction and customer retention on e-commerce products and services in the long term.
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