Gadjah Mada International Journal of Business Vol. 21, No. 2 (May-August 2019): 187-222
The Effect of Website Design Quality and Service Quality on Repurchase Intention in the E-commerce Industry: A Cross-Continental Analysis Nicholas Wilson,
a*
Keni Keni,
b
and Pauline Henriette Pattyranie Tan
c
a
Bunda Mulia University, Jakarta, Indonesia bTarumanagara University, Jakarta, Indonesia cPelita Harapan University, Jakarta, Indonesia
Abstract: The purpose of this study is to examine the effect of website design quality and service quality
on
consumers’ repurchase intention in the Asian, European,
North
and
South American, and
Australian e-commerce industry. This research implemented
a
survey method, in which
a total of
1,000
questionnaires were
distributed
electronically to the respondents across
five
continents,
of
which a total of 869 were deemed usable. Out of 869 questionnaires, a total of 200
were
collected from respondents living in
Asia,
189 from respondents living in
North and South America, 243
from respondents living in
Europe,
and 237 from respondents living in
Australia.
This research implemented
the
PLS-SEM method to analyze and generate findings from the data. Based on the results,
it could be concluded that in
Asia, Australia,
and
Europe,
service quality played a more significant role in affecting repurchase intention,
while
website design quality played a more
im- portant
role in affecting repurchase intention in the
North and South
American e-commerce
in- dustry.
Furthermore, satisfaction
positively
mediated the
relationships
between website design quality, service quality
and
repurchase intention in
all five continents. Key words: cross-continental study; customer satisfaction; repurchase intention; ser- vice quality; website design quality; worldwide e-commerce industry JEL classification: M160; M300; M310 * Corresponding author’s e-mail: wp8989@yahoo.com ISSN: 1141-1128 http://journal.ugm.ac.id/gamaijb Introduction The development of the internet in recent years has changed the way people are doing business because they are start- ing to do it digitally as compared conduct- ing business in a traditional way. Known as e-commerce, the rising trend of this new way of doing business has swept all around the globe for around a decade, and there has been a steady increase in the number of sales generated by this industry. The ris- ing popularity of e-commerce might be explained by underlining the advantage that e-commerce has as compared to traditional commerce.
In traditional commerce, sellers and buyers need to meet each other at the same place,
conduct a negotiation, and make a transaction on the spot when both parties have agreed about the price. Mean- while, such a practice won’t happen
with e-commerce as buyers and sellers don’t need to meet each other. Instead, they meet through a website which acts as an
inter- mediary
which connects both parties and bridges the transaction.
Therefore,
the
buy- ers can buy a product/services from their homes, and the sellers can conduct their business even though they do not have a place/store. With regard to this, it could be stated that, while traditional commerce requires the seller to have a physical store and also requires the buyer to come to the store, e-commerce eliminates these require- ments. Thus, the rising popularity of e- commerce might be attributed to these ad- vantages, which include it’s simplicity, time- liness, efficiency, and how it can reduce the costs incurred for both the seller and buyer (Wilson and Christella 2019). In terms of e-commerce, as with other industries, the importance for business of repurchase intention has been underlined by several researchers or authors (Wilson et al. 2018; Wilson and Keni 2018; Wilson 2018; Wilson and Christella 2019; Bernarto et al. 2019). Also known as the factor which could assess customer’s loyalty, establish- ing repurchase intention in consumers’ minds is an important task which each com- pany has to do in order to be successful. When a customer has an intention to make purchases again, whether it is the same product/service or a different one from the same company, it is an advantage for the company, as there’s a low chance that the customer will purchase the product/service from another company in the same indus- try. Moreover, several researchers have underlined the connection between cus- tomer loyalty and a company’s success because a company having as many loyal customers as possible can become a key step in achieving success in the industry as the company can indirectly retain the cus- tomers (Lee et al. 2009). Although there are many factors which may
affect consumer’s repurchase intention, website design quality and
ser- vice
quality are
seen as
important
ones
which can contribute to the formation of repurchase intention in
consumers’ mind in the field of e-commerce or internet mar- keting. In terms of website design quality, Zhou et al. (2009) state that, for a website to be classified as having a great design, it shouldn’t only be visually attractive to us- ers, but should also have a great naviga- tional function in order to enable poten- tial customers to explore the website more thoroughly and to prevent them encoun- tering any difficulties doing so. Great visual aspects (great color combination, great lay- out, appealing font size) act as factors which will attract the general public to come and visit the website. After they come and visit the website, the technical aspects of the website (great layout, products which are presented attractively, great navi- gational function) will determine whether potential customers will leave or continue exploring the website. When people decide to continue exploring the website, not only does it mean that the overall design of the website is great, but it also increases the chance of customers making purchases using the website. Therefore, website de- sign quality plays a major role in both at- tracting and encouraging customers to pur- chase a product/service through the site. Just as important as website design qual- ity, service quality also plays an important role in determining consumers’ repurchase intention. Defined as customers’ assess- ment of services provided by a company, and whether or not the quality of the ser- vices they receive exceeds their expecta- tions,
service quality has been
heralded as
one of the most important
factors in deter- mining the survivability of a company in the industry (Parasuraman et al. 1985; Chowdary and Prakash 2007). Furthermore,
service quality is
also
understood to be an important factor in determining the success or failure of a
com- pany
conducting business
in
the
e-com- merce industry (Santos 2003). With e-com- merce, sellers and buyers don’t meet up with each other in a market, so transactions are conducted virtually over a network. Therefore, the buyers can’t touch, smell, or try the product until it arrives at their address and they just hope that the prod- uct that they ordered matches with the de- scription and the picture posted on the e- commerce website. In terms of this, when the product fails to live up to expectations (its characteristics don’t match the descrip- tion provided on the website),
buyers will be disappointed with the company’s
ser- vice
because it will have failed to fulfill the
“promise”
to send the product with the description provided on the website.
The
other
aspects
of service quality, such as
the
speed of delivery, timeliness, and customer service efforts to help
resolve customers’
problems, can also play a
great
role in
de- termining
whether
the
companies value
theirs
customers
or not (Budiyanti and Patiro 2018; Wilson and Christella 2019). Bad or negative service quality can be per- ceived as a sign that the company doesn’t value or it “neglects” its customers, and vice versa. Previous research by Zhou et al. (2009) in the Chinese e-commerce indus- try finds that service quality plays a greater role in affecting consumers’ repurchase in- tention compared to website design qual- ity where these relationships were mediated by customer satisfaction and customer sat- isfaction. Moreover, previous research con- ducted by Wilson and Keni (2018) in the Indonesian e-commerce industry provides similar results that show both website de- sign
quality and service quality have a
posi- tive and
significant effect on
consumers’
repurchase intention,
both directly and in- directly through trust. Furthermore, this research also concludes that service qual- ity plays a greater role in affecting consum- ers’
repurchase intention as compared to website design quality.
Another piece of research by
Bernarto et al. (2019),
also
in the
Indonesian
e-commerce industry,
has also generated the same results in which service quality has a more significant effect on consumers’ repurchase intention as compared to it counterparts, which is website design quality. With regard to all of these research,
Zhou et al. (2009),
Wil- son
and Keni (2018),
and
Bernarto et al. (2019)
state that one
of the
limitations which exist in all of this research is the fact that the results of those aforementioned studies might not be generalizable since all were conducted by using only Chinese and Indonesian respondents as the samples for the studies. Bearing in mind the limitations presented by
Zhou et al. (2009), Wilson and Keni (2018),
and
Bernarto et al. (2019),
this research has been conducted in order to fill these gaps and it intends to increase the generalizability of both models by ana- lyzing
the effect of website design quality and service quality on
consumers’ repur- chase
intention in the e-commerce
indus- try across five continents, which are Asia, Australia, North and South America, and Europe. Moreover, this research was also con- ducted in order to know the effect of website design quality and service quality on consumers’ repurchase intention in the worldwide e-commerce industry in a simul- taneous manner, in order to provide both theoretical and practical insights to acade- micians, business managers, and companies which involve or run their business in the e-commerce industry all around the world. Therefore, the authors believe that the re- sults of this research could help e-commerce companies all around the world to craft, implement or execute the best strategy in- tended to better serve the customers, which could be beneficial for the companies’ lon- gevity and their strategic position in the market, compared to their competitors. Furthermore, with regard to the original- ity of this research, to the author’s knowl- edge, this is the first research ever which attempted to uncover
the effect of website design quality and service quality on
con- sumers’
repurchase intention
across all four (4) continents simultaneously. Literature Review and Hypotheses Website Design Quality
A website’s design quality can be
de- fined
as its quality assessed in terms of the navigational system and the appearance of the website (McKnight et al. 2002; Cyr et al. 2008; Zhou et al. 2009; Wilson and Keni 2018; Bernarto et al. 2019). In the context of the e-commerce industry, website design quality plays a very important role in
de- termining
a company’s success. This is not solely because the website can play
impor- tant
roles in establishing and implying
sat- isfaction
on the part of customers (Corbitt et al. 2003), but also because a website acts as a communication tool which acts as a
“bridge”
between the seller and the buyer.
Unlike with traditional commerce, where a company or seller can directly meet and communicate with a potential buyer through direct or face-to-face interaction, companies which are conducting their busi- ness in the digital environment don’t have a direct interaction with customers or buy- ers. Instead, the interaction between both parties will be fully mediated by the exist- ence of a website. Through the website, a seller can com- municate with a buyer in a indirect man- ner whereby the seller can post informa- tion about the products or services that they want to sell, while at the same time, the buyer will open the website and browse and look at the product/service posted by the seller, and determine whether or not to buy it. In this case, if the buyer feels
that the description or the specifications of the product had been described unclearly,
and they would like to ask the seller about it, they can ask the seller through the web chat service that is usually provided by the website. Therefore, based on the explana- tion above, it can be stated that the design quality of a website can play an important role in establishing the relationship be- tween the buyer and the seller, since buyer won’t experience any difficulties in contact- ing the seller or company if they feel un- sure about the product or service sold on the website. Service Quality Service quality can be defined as a comparison between customers’ expecta- tion of the service that they will get from a company and the actual service or perfor- mance that the company provides them with (Yousapronpaiboon 2014). More- over, Samoszuk (2011) also defines service quality as a measurement of the service given by a company in terms of whether the actual quality of the service provided or presented by a company is less than, matches, or exceeds a customer’s actual expectations regarding that service. On the other hand, service quality could also be defined as a comparison between cus- tomer’s perceptions about the service that a company will provide and their own ex- pectation regarding the actual service that they get (Oliver 1997). In terms of service quality, if a customer’s experience of the service provided by the company is better than the expectation that he or she had, it can be said that the service quality of that company is considered to be excellent. On the other hand, if the perception that cus- tomers have of the actual service quality is equal to the expectation that they had pre- viously, the service quality of the company can be considered to be good, and if the actual perception that a customer has re- garding the company’s service quality is actually less than or lower than the expec- tation that he or she has regarding the ser- vice, the service quality of a company can be considered to be bad. In the past decade, the importance of the concept of service quality in the field of marketing around the world has in- creased and many marketers and compa- nies are trying hard to be able to provide excellent service quality to all of their cus- tomers at all times (Oliver 1993). However, in the current era, a company’s highest pri- ority is to fully understand the impact that service quality has on its profits and other financial outcomes which it can benefit from (Greising 1994; Rust et al. 1995; Wil- son 2018; Wilson and Keni 2018). This is the reason of why, nowadays, many com- panies are trying hard to serve and provide their customers with the best service qual- ity that they can give. Moreover, compa- nies that can provide and deliver a service that is perceived as “High Quality” are normally those which have a greater mar- ket share, higher return on investment, and higher asset turnover compared to other companies whose services are perceived as a “Low Quality” by people and customers (Kim et al. 2004). This is why, many com- panies are constantly attempting to im- prove the quality of service they provide to their customers (Ueltschy et al. 2007). Parasuraman et al. (1991) further state that, in order to enhance or improve its service quality more efficiently and accu- rately, a company can use technologies which improve its service and, in the long run, such improvement can also increase the market demand for the company’s ser- vice. Moreover, in terms of conducting business in the current era, in which tech- nology is rapidly evolving and has changed the way people are conducting business, service quality has become an even more critical factor for a company in retaining and attracting its customers and prevent- ing them from shifting to their competitors (Jiang and Rosenbloom 2005). Customer Satisfaction Hansemark and Albinsson (2004) de- fine customer satisfaction as an overall at- titude that customers have towards a prod- uct/service provider whereby they can show their emotional reaction when they face a situation in which there’s a difference between what they expect to receive and what they actually receive, with regard to the fulfillment of consumer’s needs or de- sire. In terms of building customer satisfac- tion, Mohsan et al. (2011), state that there are several factors which can affect cus- tomer satisfaction, some of which are:
friendliness, courtesy, helpfulness, and knowledgeability on the
part
of
employ- ees;
billing accuracy, clarity and timeliness; competitive pricing; service quality; good value; and the speed of the service being provided to the consumers.
Bearing in mind the factors stated above, it is important for a company to be able to maximize its po- tential by improving its business based on the factors above which, in the long run, if all of them are developed well, should lead to a company or organization being able to fully satisfy customers’ needs and wants (Mohsan et al. 2011). On the other hand, Singh (2006) added that satisfied custom- ers are really important to an organization, since such customers will become the main factor which can make a business success- ful. Moreover, satisfaction on the part of customers will lead them to repeat their purchase and will also encourage them to spread positive messages about a company by word of mouth. Moreover, being able to fully satisfy customers’ needs and wants at any time is an important thing a company or organi- zation should remember (Wilson 2018). This is mainly because customer satisfac- tion has a positive impact on a company’s profitability and if there are more custom- ers who feel satisfied with the performance of the product or service, there’s a strong possibility that those customers will engage in another purchasing activity with the company, thus positively affecting the company’s profitability, either in the short- to-medium term, or in the long term (Wil- son and Keni 2018; Wilson and Makmud 2018). On the other hand, if customers are less satisfied with the performance of a product or services provided by a company or an organization, the company’s profit- ability is likely to decline. Therefore, it is really important for a company to be able to fully satisfy its customers, since such an ability is vital for that company to be able to have competitive advantages and strive to be the best in a highly competitive in- dustry (Ganiyu et al. 2012; Japutra et al. 2015; Wilson and Keni 2018). Repurchase Intention Repurchase intention is often per- ceived as one of the factors which can mea- sure a customer’s loyalty toward a com- pany. Therefore, it is important for a com- pany to formulate and implement several strategies in order to ensure that its custom- ers engage in repurchase behavior (Chinomona and Dubihlela 2014;
Wilson and Keni 2018;
Wilson 2018;
Bernarto et al. 2019).
Moreover, Cronin et al. (2000) further refer to consumers’ repurchase in- tention as an important aspect which gen- erally determines the success of a company or organization in a business. Furthermore, as time has gone by, the market has be- come filled with more and more companies which has intensified the competition be- tween them. Thus, many companies are trying hard to preserve their customers by persuading them to engage in repurchase activity rather than attracting new custom- ers, which could cost a company a lot of money (Fornell 1992; Kitchakhorn 2013). This statement is supported by Rosenberg and Czepiel (1984), who find that a company’s effort to acquire a new cus- tomer can cost the company approximately “six times” more than the cost the company will bear by keeping a current or existing customer. Schiffman and Kanuk (2007) and Wilson (2018) stated that although there have been some studies in the area of cus- tomers’ repurchase behavior and intention, all of these have actually reached the same conclusion that customers’ repurchase in- tention can generate some economical ad- vantages for a company (Chinomona and Dubihlela 2014). Hypotheses Formulation The Effect of Website Design Quality toward Customer Satisfaction Website design quality plays an im- portant role in the formation of the image of an online store conducting e-commerce and, if the image can create a “good” first impression in customers’ minds, it can lead to customer satisfaction (Oh et al. 2008). Moreover, another study conducted by Eroglu et al. 2003) also explains the influ- ence that website design effectiveness has on consumer responses, judgement, and various other consumers’ behavioral inten- tions. These findings are supported by an- other study by (Ha and Im 2012), which revealed that both customers’ response and cognitive judgment are really important and act as a requirement for a company to cre- ate customer satisfaction. Additionally, it is also determined that the design elements of a website, such as color and music, have significantly affect a customer’s levels of pleasure, satisfaction, and arousal (Wu et al. 2008; Ha and Im 2012). Further studies by Zviran et al. (2005), Van Riel et al. (2004), Zeithaml et al. (2002), Chang and Chen (2008), and Wilson and Keni (2018) also reveal that website design quality has different and subjective factors which can affect overall customer satisfac- tion with the website. Furthermore, Jeong et al. (2003) and Wilson and Keni (2018) also state that satisfaction turns out to have important consequences which can be af- fected by the information provided on a website. Based on the literature and the re- sults of the previous research, the author posits the first hypothesis (H1) and the sec- ond hypothesis (H2) as follows: H1 : Website design quality has a positive ef- fect on customer satisfaction H2 : Website design quality has a positive ef- fect on repurchase intention through cus- tomer satisfaction The Effect of Service Quality toward Customer Satisfaction Magi and Julander (1996), and Bernarto et al. (2019) state that customer satisfaction and service quality are two in- credibly important variables for a company since both have been proven to help im- prove the overall performance of an orga- nization. Additionally, service quality ac- tually acts as a determinant of customer satisfaction because it is based on custom- ers’ experience of certain services that they receive from the provider and the outcome of the services provided by the provider is actually the quality of the service of the organization (Cronin and Taylor 1992; Agbor 2011). Moreover, customers expect to derive a maximum level of satisfaction from the products or services that they purchase from a company which serves them (Agbor 2011). Furthermore, building a strong and permanent customer relation- ship is an important thing a company needs to do in order to become successful in the market (Agbor 2011; Bernarto et al. 2019). Furthermore, Kotler et al. (2002), Wilson (2018) and Wilson and Keni (2018) also state that, to be able to deliver value to customers that is superior that of competi- tors, a company should build a long-last- ing relationship with its customers. More- over, Kotler and Keller (2009) further ar- gue that the feedback that customers give about the products or services that they buy and use, and the level of satisfaction that they derive from purchasing and us- ing the products, can be used as a tools to assess whether the service quality of an organization is perceived by customers as good or not. Sureshchandar et al. (2003) further found out that there’s a strong re- lationships between company’s service quality and customer satisfaction. More- over, a study conducted by Spreng and Mackoy (1996) also shows that a company’s service quality will lead to cus- tomer satisfaction. Furthermore, findings by Ribbink et al. (2004) and Bernarto et al. (2019) also show that service quality posi- tively affects customer satisfaction in the e-commerce business. Moreover, another study in the field of retailing also finds that customer satis- faction and attitude with department stores is influenced by the service quality of the stores. (Sivadas and Baker-Prewitt 2000). On the other hand, another piece of re- search by Negi (2009) also finds that tan- gibles, empathy and assurance, which to- gether are known as a part of SERVQUAL, which is widely used to measure service quality, are relevant factors which deter- mine customer satisfaction. Another study by Gera (2011) also finds that customer satisfaction is significantly affected by the quality of a service offered or given by a company or organization. Furthermore, Agbor (2011) and Bernarto et al. (2019) state that the service quality dimension positively affect customer satisfaction only if customers feel that they are satisfied, and the reason for their satisfaction is the ser- vice quality of a company. Based on the literature and the results of previous re- search, the author posits the third (H3) and the fourth hypothesis (H4) as follows: H3 : Service quality has a positive effect on customer satisfaction. H4 : Service quality has a positive effect on repurchase intention through customer satisfaction. The Effect of Customer shows that customer satisfaction with re- Satisfaction on Repurchase gard to the services positively affects repur- Intention chase intention. Further research by Amini and Akbari (2014) on the relationship be- A previous study by Chinomona and tween customer satisfaction and online re- Sandada (2013) finds that customer satis- purchase intention also finds that customer faction has a positive effect on customer satisfaction positively affects customer re- loyalty and it also positively affects cus- purchase intention on websites. Addition- tomer repurchase intention in the South ally, another piece of research by Lee et al. African retailing industry. Their results are (2009) shows that, through two moderat- supported by another piece of research ing variables, which are computer self-effi- conducted by Jia et al. (2014) in the elec- cacy and computer anxiety, customer sat- tronic commerce industry which shows isfaction significantly affects repurchase that there is a positive relationship between intention. Another study conducted by Lin satisfaction and repurchase intention. An- and Lekhawipat (2014) further reveals that other similar study done by Aksoy et al. customers with high levels of satisfaction (2011) on the U.S. stock market perfor- are more likely to engage in repurchase mance shows that customer satisfaction activity with a company rather than cus- positively affects repurchase intention and tomers with lower levels of satisfaction this relationship can lead to the improve- with a company. Other findings by ment of the stock market performance in Sunyasanoa et al. (2013) show that con- the U.S. Further research regarding the re- sumer satisfaction has a positive and signifi- lationship between customer satisfaction cant relationship on consumer repurchase and repurchase intention of soft drink con- intention in Thailand. However, previous sumers in Pakistan also shows that cus- tomer satisfaction has a positive effect on research by Bernarto et al. (2019) has gen- customer repurchase intention (Hussain erated contradictory results with customer and Rizwan. 2014). satisfaction not having a positive impact on consumers’ repurchase intention in the Furthermore, another study by He Indonesian e-commerce market. and Song (2008) on the tourism industry Figure 1. Research Model
Website Design Quality ? ? Service Quality Customer Satisfaction ? Repurchase Intention
Another piece of research done by Zboja and Voorhees (2006), about the ef- fect of customer satisfaction on repurchase intention in the retailing industry, shows that there is indeed a direct and positive relationship between customer satisfaction and repurchase intention, while Upamannyu et al. (2015) also state that an increase in satisfaction will increase con- sumers’ repurchase intention with regard to the company. Based on this literature and the results of previous research, the author posits the fifth hypothesis (H5) as shown in Figure 1. H5: Customer satisfaction has a positive ef- fect on repurchase intention. Methods This research utilizes the survey method therefore questionnaires have been used as the instruments to collect all of the data needed. There are two parts to the questionnaire: the
first part contains the questions regarding the demographics of the respondents; the second part
contains a total
of
34
items which represent all
4 vari- ables
analyzed in this research.
Out of
the
34 items, 4 items represent variables related to website design quality, 20 items repre- sent variables related to service quality, 5 items represent variables related to cus- tomer satisfaction, and 5 items represent variables related to repurchase intention. Variables related to service quality have been measured using SERVQUAL dimen- sions (reliability, responsiveness, assurance, tangibles, and empathy), where, out of 20 items which represent variables related to service quality, each dimension is repre- sented by four items. All items used to measure service quality have been adapted from Gefen (2002). Meanwhile, all Items of website design quality have been adapted from Zhou et al. (2009), while all items rep- resenting customer satisfaction have been adapted from Zhou et al. (2009) and Fang et al. (2014). Items representing consumer’s repurchase intention have been adapted from Zhou et al. (2009). All items have been modified in order to ensure that all items conform to the topic of this research. Fur- thermore, regarding the scale of measure- ment of this research, a 5-Point Likert Scale was used whereby
each respondent
is
asked to give their
response
regarding each
state- ment
presented on the second part of this questionnaire,
and this consists
of
a “1” reflecting their strong disagreement with the statement, a “2” reflecting their disagree- ment with the statement, a “3” reflecting
that they neither agree nor disagree
with
the statement,
a “4” reflecting their agree- ment with the statement, and a “5” reflect- ing their strong agreement with the state- ment. Before the main research was con- ducted, a pretest was conducted in order to ensure the clarity of the statements ap- pearing on the questionnaire. Malhotra (2007) states
that a questionnaire should be pretested adequately before it
can
be used
of
the actual survey.
Moreover, the pretest study was
conducted in order to ensure that all of the
items on the questionnaire truly represent and measure each variable. A to- tal of 120 respondents originating from the five continents (Asia, Australia, North and South American, and Europe), and
who were drawn from the same population and
shared
the same characteristics as the
re- spondents,
participated in the pretest.
Questionnaires were electronically distrib- uted to the pretest participants and all were returned, thus ensuring the 100 percent response rate. Participants were also asked to add some notes on the questionnaires if there were some difficulties they encoun- tered when they read and filled them out.
After all of the data were collected, validity and reliability
tests
were conducted
first
in order to ensure that all of the data are valid and reliable, and the questionnaire could be used in the
actual
research. After
con- ducting
both tests, it was
deemed
that all items
were valid and reliable, thus ensur- ing that none needed to be omitted. More- over, several modifications were made to the wording of the questionnaire based on the participants’ input. After these modifi- cations, it was concluded that the question- naire
could be used
in
the actual
research.
A total of
1,000
respondents
partici- pated in this research and 250 question- naires were distributed electronically to those living on each continent (with 250 being sent to North and South America which has been treated as one region). Re- garding the criteria of the respondents par- ticipating in this research, all the selected respondents had engaged in purchasing ac- tivity through e-commerce websites in their respective regions during the last six months. Furthermore, the sampling method used in this research was purpo- sive
sampling in order to ensure the
objec- tivity
of the research
because
all
respon- dents who
participated in this research
had to
fulfill the criteria set beforehand
and
they
had to
have
engaged in
purchasing activity on
any
e-commerce
website
in the
coun- tries where they lived in the six months before the questionnaire was filled out. Regarding the decision to generate samples from five continents —namely the Asian, Australian, European, and the North and South American continents— the author contends that the invention, development, and growth of the e-com- merce industry has taken the world by storm and so there are a lot of e-commerce companies that have been established in many countries which are located within the boundaries of those continents. On the other hand, a lot of large e-commerce com- panies have established branches in various countries and markets across the globe, further suggesting and indicating that the industry has been growing and developing into one of the fastest and most-promising ones of the 21st century. Therefore, the author has developed a very strong inter- est in uncovering the effect of website de- sign quality and service quality on consum- ers’ repurchase intention, not only on one continent, but on the other continents as well. Therefore, one of the author’s main objectives in executing this study is to dis- cover the effect of the variables studied in this research on a worldwide basis. So, the author has decided to select and involve respondents are living on those continents, since the e-commerce industry has been seen as being one of the most developed and fastest-growing industries in the afore- mentioned five continents. After distributing 1,000 question- naires, 869 were filled out and returned thus generating an overall response rate of 86.9 percent. From the Asian continent, a total of 200 out of 250 questionnaires were filled out and returned, a response rate of 80 per- cent. A total of 237 out of 250 question- naires distributed in Australia were filled and returned, a response rate of 94.8 per- cent. A total 189 out of 250 questionnaires (75.6%) distributed in North and South America were filled and returned. Lastly, A total 243 out of 250 questionnaires (97.2%) distributed in Europe were filled out and returned. After collecting and con- ducting a pilot analysis on the data, a total of 869 responses were confirmed to be us- able and ready to be analyzed. The data from each continent have been analyzed separately, thus generating a total of four sets of analysis in this research (North and South America were analyzed together). In order to analyze the data and generate the findings of this research, the approach used and implemented was partial least squares- structural equation modeling (PLS-SEM) . Data Analyses and Hypotheses Testing All data collected from the question- naires have been processed using the Par- tial
Least Squares-Structural Equation
Mod- eling
(PLS-SEM) method by using SmartPLS 3.2.7 software. In this research, data which
are
collected from
each conti- nent
will be analyzed
separately from each other, meaning that a total of four results (one for each continent with North and South America treated as one continent) will be generated by this research. Asian Continent Out of the 250 questionnaires distrib- uted to the respondents living on the Asian continent, a total of 200 were filled out and returned, thus generating a response rate of 80 percent. After further analysis, it is concluded that all questionnaires were us- able, thus enabling the data to be
processed in this research.
In terms of
the profile of the respondents,
200 respondents
of
those participating in this research originat from eight countries located on the Asian conti- nent, namely China, Indonesia, Malaysia, Singapore, Iran, South Korea, Japan, and Hong Kong. In terms of the respondents’ gender, a total of 127 (63.5%) were male, while the remaining 73 (36.5%) were fe- male. Furthermore, a total of 189 respon- dents engaged in purchasing activities be- tween eight and fourteen times through an e-commerce website during the last six months, while a total of 11 respondents engaged in purchasing activities more than 15 times through an e-commerce website during the last six months. Before formulating the hypotheses in this research,
several assessments
need
to be
conducted
beforehand to ensure that the model is valid and reliable. Those were
an
assessment
of
the service quality
dimen- sions,
outer model assessment, and the
in- ner
model assessment. First of all, an
assess- ment of
the service quality dimensions
and
outer model analysis
need to be
conducted in order to determine
whether all dimen- sions measuring
service quality (reliability, responsiveness, assurance,
tangibles,
and empathy)
can
really measure variable
ser- vice
quality. In order to conduct
these as- sessments,
several criteria need to be
ful- filled
in order to determine that all
dimen- sions can
explain service quality
variables, and to determine that all dimensions and variables have fulfilled all of validity and reliability criteria set in this research. Those criteria are as follows: the
factor loadings value of each
item
should exceeded 0.50 (Barclay
and
Thompson 1995; Chin 1998;
Wilson, 2018);
the AVE of each
dimension
should exceeded 0.50 as suggested by Hair
et al.
(2011)
and Wilson (2018);
the
com- posite
reliability of each
dimension
should exceed the cut-off value of 0.70 as suggested by Henseler
et al.
(2009) and Ebert (2010); the value of
square root of
AVE of each latent construct should be higher than the construct’s highest squared correlation with any other latent construct
(discrimi- nant validity analysis/fornell-larcker crite- rion) as suggested by Hair et al. (2011); and the
t-value of each dimensions should
ex- ceed
the cut-off value of 1.96 in order to confirm that each dimension
can
represent and explain variable service quality
well.
Based on the results of the
data analy- sis presented on Tables 1,2,3, and 4, it can be concluded that all dimensions, indicators and variables have fulfilled all of the crite- ria set out in this study. Therefore, the in- ner model analysis can be conducted in order to determine the relationships be- tween variables studied in this research. After completing both the analysis of the service quality dimensions and the
outer model analysis, the inner model analysis
is
conducted on the data and the model in order to determine the relationship
be- tween
variables. Furthermore, mediating analysis
is
also conducted in this research in order to determine whether variable
cus- tomer
satisfaction
does not
mediate,
par- tially mediates,
or fully
mediates
the
rela- tionship
between website design quality and repurchase intention, and between service quality and repurchase intention.
More- over,
data generated from the inner model analysis will be used as a benchmark
to determine
whether the hypotheses posited in this research
are
supported or rejected.
Based on the results generated
during
the
PLS-SEM
analysis, it
can be concluded
that
both website design quality (t-value= 3.418) and service quality (t-value= 5.598) have a positive effect on repurchase inten- tion, while customer satisfaction partially mediates the effect of website design qual- ity (t-value= 3.581) and service quality (t- value= 6.174) on repurchase intention. Furthermore, the
results of the r-
squared
value generated
by
this analysis,
show
that variable customer
satisfaction and repur- chase intention have a r-squared value of 0.556 and 0.697 respectively. Based on these results, it can be concluded that variable customer satisfaction is explained by the variables of website design quality and ser- vice quality by 55.6 percent, while
variable repurchase intention is explained by the variables
discussed in this research by 69.7 percent. Furthermore, path coefficient analy- sis has been
conducted not only in order to know the relationship between
vari- ables,
but also to know whether the
hy- potheses
proposed in this research were supported or rejected. The results
gener- ated by
the path coefficient analysis
show
that the t-value of all hypotheses
exceed
the cut-off
t
-value of 1.96.
Therefore,
based on these results, it
can also
be
well
-concluded that
on
the
Asian continent,
all hypotheses in this research
are
supported.
After con- ducting
the
analysis on
the data
gathered from the respondents living on the Asian continent, the author has then proceeded with the analysis of the data gathered from the respondents living on the Australian continent. Table 1. Service Quality Dimensions and the
Outer Model Analysis
(Asian Continent)
Dimensions Items Factor AVE Composite Reliability
Loadings
Reliability
Responsiveness Assurance Tangible Empathy Website Design Quality Customer Satisfaction Repurchase Intention REL1 REL2 REL3 REL4 RES1 RES2 RES3 RES4 ASS1 ASS2 ASS3 ASS4 TAN1 TAN2 TAN3 TAN4 EMP1 EMP2 EMP3 EMP4 WEB1 WEB2 WEB3 WEB4 SAT1 SAT2 SAT3 SAT4 SAT5 REP1 REP2 REP3 REP4 REP5 0.780 0.679 0.820 0.778 0.756 0.808 0.593 0.726 0.718 0.892 0.866 0.813 0.760 0.749 0.607 0.829 0.887 0.688 0.720 0.751 0.808 0.817 0.826 0.803 0.890 0.771 0.823 0.748 0.870 0.692 0.766 0.812 0.709 0.849 0.569 0.577 0.625 0.538 0.602 0.631 0.547 0.522 0.757 0.771 0.843 0.746 0.780 0.862 0.817 0.772
Table 2. T-Value of Each Dimensions
(Asian Continent)
Relationship T-Value Sig.Value Conclusion Reliability? Service Quality
Responsiveness? Service Quality Assurance? Service Quality Tangible? Service Quality Empathy? Service Quality 3.576 0.000 Significant 5.061 0.000 Significant 6.980 0.000 Significant 2.598 0.001 Significant 3.017 0.000 Significant Table 3. Discriminant Validity Analysis (Asian Continent) WEB
ASS REL RES TAN EMP
SAT REP WEB
0.
817
ASS 0.
715
0.
798
REL 0.
408
0.
536
0.
903
RES 0.
457
0.
509
0.
371
0.
765
TAN 0.
639
0.
690
0.
546
0.
734
0.
781
EMP 0.
576
0.
412
0.
427
0.
615
0.
593
0.774
SAT
0.
642
0.
688
0.
594
0.
490
0.
406
0.
618 REP 0.713 0.630 0.723 0.697 0.512 0.583 0.809 0.668 0.861 Table 4. R-squared (Asian Continent) Variables R-squared Value Customer Satisfaction 0.556 Repurchase Intention 0.697 Table 5.
Path Coefficient Analysis
(Asian Continent)
Relationships T-Value Sig.Value Conclusions
Website Design
Quality ? Customer
Satisfaction 3.045
0.
001
Signficant
Service Quality ?
Customer
Satisfaction
4.
715
0.000 Signficant
Customer Satisfaction ? Repurchase Intention 4.298 0.000 Signficant Website Design Quality ? Repurchase Intention 3.418 0.001 Signficant Service Quality ? Repurchase Intention 5.598 0.000 Signficant Table 6. Mediation Analysis (Asian Continent) Relationships T-Value Sig.Value Conclusions Website Design ? Repurchase Intention Website Design Quality ? Customer Satisfaction ?Repurchase Intention Service Quality ? Repurchase Intention Service Quality ? Customer Satisfaction ? Repurchase Intention 3.418 0.001 3.581 0.001 5.598 0.000 6.174 0.000 Partial Mediation Partial Mediation Australian Continent Out of the 250 questionnaires distrib- uted to the respondents living on the Aus- tralian continent, a total of 237 were filled out and returned, thus generating a re- sponse rate of 94.8 percent. After further analysis, it is concluded that all question- naires were usable, thus enabling the data to be
processed in this research.
In terms of
the profile of the respondents,
a total
of
237 of those participating in this research originate from six cities located on the Aus- tralian continent, namely Adelaide, Sydney, Gold Coast, Melbourne, Perth, and Brisbane. In terms of respondents’ gender, a total of 185 respondents (78.05%) were male, while the 52 remaining respondents (21.95%) were female. Furthermore, a to- tal of 23 respondents had engaged in pur- chasing activities between one and seven times through an e-commerce website dur- ing the last six months, a total of 199 re- spondents engaged in purchasing activities eight to fourteen times through an e-com- merce website during the last six months, while a total of 15 respondents engaged in purchasing activities more than 15 times through an e-commerce website during the last six months. Similar to what has been explained in the previous section of this paper where the authors conducted an analysis regard- ing the data collected from respondents liv- ing or originating from the Asian continent, in this section, before analyzing the rela- tionships between variables (inner model analysis), the analysis of service quality di- mensions and the outer model analysis need to be conducted in
order to
ensure
the validity and
the
reliability of the
dimen- sions, variables,
and the
model. As for the criteria required to be fulfilled by each di- mension, indicator, and variable in order for the model to establish the validity and reliability of the model, several criteria that are required to be assessed are actually the same criteria that have been used to mea- sure the service quality dimension and the outer model measurement of the data gath- ered from Asia in the previous section. Table 7. Service Quality Dimensions and Outer Model Analysis (Australian Conti- nent)
Dimensions Items Factor Loadings AVE Composite Reliability
Reliability Responsiveness
REL1 REL2 REL3
REL4 RES1 RES2 RES3 RES4 0.651 0.809 0.845 0.792 0.772 0.901 0.897 0.750 0.530 0.649 0.786 0.852 Table 7. Continued Dimensions Items Factor Loadings AVE Composite Reliability Assurance Tangible Empathy Website Design Quality Customer Satisfaction Repurchase Intention ASS1 ASS2 ASS3 ASS4 TAN1 TAN2 TAN3 TAN4 EMP1 EMP2 EMP3 EMP4 WEB1 WEB2 WEB3 WEB4 SAT1 SAT2 SAT3 SAT4 SAT5 REP1 REP2 REP3 REP4 REP5 0.573 0.748 0.888 0.806 0.832 0.756 0.894 0.642 0.790 0.816 0.702 0.857 0.761 0.752 0.818 0.689 0.774 0.723 0.761 0.707 0.844 0.893 0.713 0.864 0.790 0.758 0.547 0.552 0.528 0.601 0.526 0.549 0.798 0.801 0.803 0.749 0.731 0.815 Table 8.
T-Value of Each Dimensions
(Australian Continent)
Relationship T-Value Sig.Value Conclusion Reliability? Service Quality
Responsiveness? Service Quality Assurance? Service Quality Tangible? Service Quality Empathy? Service Quality 4.127 0.000 3.498 0.000 3.909 0.000 4.124 0.000 3.596 0.000 Significant Significant Significant Significant Significant Table 9. Discriminant Validity Analysis (Australian Continent) WEB
ASS REL RES TAN EMP
SAT REP WEB
0.
934
ASS 0.
546
0.
838
REL 0.
714
0.
478
0.
817
RES 0.
586
0.
598
0.
776
0.
854
TAN 0.
748
0.
634
0.
493
0.
467
0.
812
EMP 0.
406
0.
714
0.
724
0.
539
0.
680
0.
769 SAT
0.
649
0.
728
0.
470
0.
719
0.
540
0.
696
0.
736 REP 0.650 0.483 0.555 0.608 0.632 0.542 0.671 0.893
Based on the results of the data
analy- sis
presented
on Tables 8,9,10, and 11, it can be concluded that all dimensions, indi- cators and variables have fulfilled all of the criteria set out in this study. Therefore, the inner model analysis can be conducted af- terwards in order to determine the relation- ships between variables studied in this re- search.
After completing the outer model analysis, the inner model analysis
is con- ducted
on the data and the model in order to determine the relationship between
vari- ables.
Furthermore, mediating analysis
is
also conducted in this research in order to determine whether variable customer
sat- isfaction does not mediate, partially medi- ates,
or fully
mediates
the relationship
be- tween
website design quality and
repur- chase
intention, and between service
qual- ity
and repurchase intention. Moreover, data generated from the inner model
analy- sis
will be used as a benchmark
to deter- mine
whether the hypotheses posited in this research
are
supported or rejected.
Based on the results generated
during
the
PLS-SEM
analysis, it
can be concluded
that
both website design quality (t-value= 2.498) and service quality (t-value= 4.873) have a positive effect on repurchase inten- tion, while customer satisfaction partially mediates the effect of website design qual- ity (t-value= 3.376) and service quality (t- value= 4.619) on repurchase intention. Moreover, the
results of the r-
squared
value generated in this analysis
show
that
vari- able
customer
satisfaction and repurchase intention have a r-squared value of 0.521 Table 10. R-squared (Australian Conti- nent) Variables R-squared Value Customer Satisfaction Repurchase Intention 0.521 0.739 and 0.739 respectively.
Based on these
re- sults,
it
can
be concluded that variable
cus- tomer
satisfaction is explained by
variable
website design quality and service quality
by 52.1 percent, while
variable repurchase intention is explained by the variables
dis- cussed in this research by 73.9 percent. Furthermore, path coefficient analy- sis is
conducted not only in order to know the relationship between variables, but also to know whether the hypotheses proposed in this research
are
supported or rejected. The results generated in the path coefficient analysis
show
that the t-value of all
hypoth- eses exceed
the cut-off
t
-value of 1.96.
Therefore,
based on these results, it
can
be concluded that
for
the
Australian continent, all hypotheses in this research are sup- ported. After conducting the analysis on the data gathered from the respondents liv- ing on the Australian continent, the author then proceeded with the analysis of the data gathered from the respondents living on the European continent. Table 11.
Path Coefficient Analysis
(Australian Continent)
Relationships T-Value Sig.Value Conclusions
Website Design
Quality ? Customer
Satisfaction 2.685
0.
001
Signficant
Service Quality ?
Customer
Satisfaction 3.712 0.000 Signficant Customer Satisfaction ? Repurchase Intention 3.491 0.000 Signficant Website Design Quality ? Repurchase Intention 2.498 0.003 Signficant Service Quality ? Repurchase Intention 4.873 0.000 Signficant Table 12. Mediation Analysis (Australian Continent) Relationships T-Value Sig.Value Conclusions Website Design Quality ? Repurchase Intention Website Design Quality ? Customer Satisfaction ?Repurchase Intention Service Quality ? Repurchase Intention Service Quality ? Customer Satisfaction ? Repurchase Intention 2.498 0.003 3.376 0.000 4.873 0.000 4.619 0.000 Partial Mediation Partial Mediation European Continent Out of the 250 questionnaires distrib- uted to the respondents living on the Aus- tralian continent, a total of 243 were filled out and returned, thus generating a re- sponse rate of 97.2 percent. After further analysis, it is concluded that all question- naires are usable, thus enabling the data to be
processed in this research.
In terms of
the profile of the respondents,
a total
of
243 of those participating in this research originate from nine countries located on the European continent, namely Denmark, Italy, France, England (UK), Scotland (UK), Netherlands, Germany, Spain, and Sweden. In terms of respondents’ gender, a total of 133 respondents (54.73%) were male, while the 110 remaining respondents (45.27%) were female. Furthermore, a to- tal of 6 respondents engaged in purchasing activities one to seven times through an e- commerce website during the last six months, a total of 149 respondents engaged in purchasing activities eight to fourteen times through an e-commerce website dur- ing the last six months, while a total of 88 respondents engaged in purchasing activi- ties more than 15 times through an e-com- merce website during the last six months. As for the criteria required to be ful- filled by each dimension, indicator, and variable in
order to
establish
the validity and reliability of the model,
several criteria which are required to be assessed are actu- ally the same criteria that have been used to measure the service quality dimension and the outer model measurement of the data gathered from the Australian continent in the previous section.
Based on the
re- sults
of the data analysis presented
on Tables 15,16,17, and 18, it can be concluded that all dimensions, indicators, and variables have fulfilled all of the outer model criteria set out in this study. Therefore, inner model analysis can be conducted in order to determine the relationships between variables included in this research. Table 13. Service Quality Dimensions and
Outer Model Analysis
(European Continent)
Dimensions Items Factor Loadings AVE Composite Reliability Reliability
Responsiveness Assurance Tangible Empathy Website Design Quality Customer Satisfaction Repurchase Intention REL1 REL2 REL3 REL4 RES1 RES2 RES3 RES4 ASS1 ASS2 ASS3 ASS4 TAN1 TAN2 TAN3 TAN4 EMP1 EMP2 EMP3 EMP4 WEB1 WEB2 WEB3 WEB4 SAT1 SAT2 SAT3 SAT4 SAT5 REP1 REP2 REP3 REP4 REP5 0.541 0.898 0.753 0.705 0.743 0.845 0.823 0.810 0.693 0.658 0.835 0.769 0.803 0.714 0.855 0.832 0.858 0.890 0.821 0.836 0.867 0.720 0.835 0.754 0.658 0.833 0.890 0.846 0.858 0.769 0.755 0.792 0.804 0.710 0.512 0.597 0.526 0.602 0.653 0.546 0.581 0.555 0.741 0.819 0.759 0.833 0.867 0.782 0.843 0.799 Table 14.
T-Value of Each Dimensions
(European Continent)
Relationship T-Value Sig.Value Conclusion Reliability? Service Quality 2.
623
0.
009
Responsiveness? Service Quality 3.
002
0.
002
Assurance? Service Quality 2.
409
0.
011
Tangible? Service Quality
3.507
0.000 Empathy? Service Quality
5.034
0.000 Significant
Significant Significant Significant Significant Table 15. Discriminant Validity Analysis (European Continent) WEB
ASS REL RES TAN EMP
SAT REP WEB
0.
871
ASS 0.
729
0.
855
REL 0.
547
0.
646
0.
780
RES 0.
603
0.
630
0.
627
0.
823
TAN 0.
599
0.
743
0.
555
0.
793
0.
856
EMP 0.
703
0.
701
0.
736
0.
388
0.
647
0.
749 SAT
0.
680
0.
438
0.
590
0.
495
0.
403
0.
641
0.
873 REP 0.543 0.565 0.707 0.421 0.712 0.586 0.693 0.805
After completing the outer model analysis, the inner model analysis
is con- ducted
on the data and the model in order to determine the relationship between
vari- ables.
Furthermore, mediating analysis
is
also conducted in this research in order to determine whether variable customer
sat- isfaction does not mediate, partially medi- ates,
or fully
mediates
the relationship
be- tween
website design quality and
repur- chase
intention, and between service
qual- ity
and repurchase intention. Moreover, data generated from the inner model
analy- sis
will be used as a benchmark
to deter- mine
whether the hypotheses posited in this research
are
supported or rejected.
Based on the results generated
during
the
PLS-SEM
analysis, it
can be concluded
that
both website design quality (t-value = 2.714) and service quality (t-value = 3.190) have a positive effect on repurchase inten- tion, while customer satisfaction partially mediates the effect of website design qual- ity (t-value = 3.053) and service quality (t- value = 3.566) on repurchase intention. Meanwhile, the
results of the r-
squared
value generated in this analysis,
show
that customer
satisfaction and repurchase inten- tion have a r-squared value of 0.475 and 0.718 respectively.
Based on these results, it
can
be concluded that customer
satisfac- tion is
explained by
website design quality
and service quality by
47.5 percent,
while
repurchase intention is explained by the variables
discussed in this research by 71.8 percent. Furthermore, path coefficient analy- sis is
conducted not only in order to know the relationship between variables, but also to know whether the hypotheses proposed in this research
are
supported or rejected.
Table 16. R-squared (European Conti- nent) Variables R-squared Value Customer Satisfaction Repurchase Intention 0.475 0.718
Furthermore, path coefficient analysis
is
conducted not only in order to know the relationship between variables, but also to know whether the hypotheses proposed in this research
are
supported or rejected. The results generated
by
the path
coeffi- cient
analysis
show
that the t-value of all hypotheses
exceeds
the cut-off
t
-value of 1.96.
Therefore, it can be concluded that for the European continent,
all hypotheses in this research
are
supported.
After con- ducting
the
analysis on
the data
gathered from the respondents living on the Euro- pean continent, the author then proceeded with the analysis of the data gathered from the respondents living on the North and South American continents. Table 17.
Path Coefficient Analysis
(European Continent)
Relationships T-Value Sig.Value Conclusions
Website Design Quality
? Customer Satisfaction
Service Quality
? Customer
Satisfaction
Customer Satisfaction ?
Repurchase Intention Website Design Quality
? Repurchase Intention
Service Quality
? Repurchase Intention 2.438 0.007 Signficant 3.067 0.000 Signficant 2.690 0.003 Signficant 2.714 0.002 Signficant 3.190 0.000 Signficant Table 18. Mediation Analysis (European Continent) Relationships T-Value Sig.Value Conclusions Website Design Quality ? Repurchase Intention Website Design Quality ? Customer Satisfaction ?Repurchase Intention Service Quality ? Repurchase Intention Service Quality ? Customer Satisfaction ? Repurchase Intention 3.190 0.000 3.053 0.000 3.190 0.000 3.566 0.000 Partial Mediation Partial Mediation North and South American Continents From
a total of
250
questionnaires distributed to the respondents
living
in
North and South American continents, a total of 189 were filled and returned, thus generating a response rate of 75.6 percent. After further analysis was conducted, it has been concluded that all questionnaires were usable, thus enabling the data to be pro- cessed in this research. In terms of the pro- file of the respondents, a total of 189 par- ticipating in this research originate from four countries located in North and South America, namely United States of America (U.S.), Argentina, Brazil, and Colombia. In terms of respondents’ gender, a total of 127 (67.19%) were male, while the remaining 62 respondents (32.81%) were female. Fur- thermore, a total of 14 respondents had engaged in purchasing activities between one to seven times through an e-commerce website during the last six months, a total of 95 respondents had engaged in purchas- ing activities eight to fourteen times through an e-commerce website during the last six months, while a total of 80 respondents had engaged in purchasing activities more than 15 times through an e-commerce website during the last six months. As for the criteria required to be ful- filled by each dimension, indicator, and variable in
order to
establish
the validity and reliability of the model,
several criteria which need to be assessed are actually the same criteria that have been used to mea- sure the service quality dimension and the outer model measurement of the data gath- ered from Europe in the previous section.
Based on the results of the data analysis presented
on Tables 22,23,24, and 25, it can be concluded that all dimensions, indica- tors, and variables have fulfilled all of the outer model criteria set out in this study. Therefore, inner model analysis can be conducted afterwards in order to determine the relationships between variables in- cluded in this research. Table 19.
Outer Model Analysis
(American Continent)
Dimensions Items Factor Loadings AVE Composite Reliability Reliability
Responsiveness Assurance Tangible Empathy Website Design Quality Customer Satisfaction Repurchase Intention REL1 REL2 REL3 REL4 RES1 RES2 RES3 RES4 ASS1 ASS2 ASS3 ASS4 TAN1 TAN2 TAN3 TAN4 EMP1 EMP2 EMP3 EMP4 WEB1 WEB2 WEB3 WEB4 SAT1 SAT2 SAT3 SAT4 SAT5 REP1 REP2 REP3 REP4 REP5 0.765 0.799 0.732 0.802 0.816 0.739 0.800 0.843 0.782 0.602 0.809 0.711 0.898 0.834 0.790 0.596 0.614 0.776 0.895 0.826 0.596 0.886 0.830 0.869 0.707 0.814 0.756 0.887 0.821 0.798 0.691 0.682 0.843 0.829 0.548 0.571 0.530 0.564 0.587 0.563 0.605 0.531 0.776 0.806 0.741 0.785 0.773 0.759 0.823 0.767 Table 20.
T-Value of Each Dimensions
(American Continent)
Relationship T-Value Sig.Value Conclusion Reliability? Service Quality
Responsiveness? Service Quality Assurance? Service Quality Tangible? Service Quality Empathy? Service Quality 2.546 0.002 2.907 0.000 2.634 0.001 3.003 0.000 2.749 0.001 Significant Significant Significant Significant Significant Table 21. Discriminant Validity Analysis (American Continent) WEB
ASS REL RES TAN EMP
SAT REP WEB
0.
847
ASS 0.
645
0.
746
REL 0.
693
0.
712
0.
792
RES 0.
444
0.
694
0.
387
0.
809
TAN 0.
625
0.
506
0.
640
0.
712
0.
892
EMP 0.
813
0.
601
0.
546
0.
576
0.
544
0.
888 SAT
0.
528
0.
297
0.
667
0.
734
0.
721
0.
708
0.
835 REP 0.606 0.467 0.710 0.406 0.627 0.352 0.697 0.778
After completing the outer model analysis, the inner model analysis
is con- ducted
on the data and the model in order to determine the relationship between
vari- ables.
Furthermore, mediating analysis
is
also conducted in this research in order to determine whether variable customer
sat- isfaction doesn
’t mediate, partially
medi- ates,
or fully
mediates
the relationship
be- tween
website design quality and
repur- chase
intention, and between service
qual- ity
and repurchase intention. Moreover, data generated from the inner model
analy- sis
will be used as a benchmark
to deter- mine
whether the hypotheses posited in this research
are
supported or rejected.
Based on the results generated
during
the
PLS-SEM
analysis, it
can be concluded
that
both website design quality (t-value = 4.327) and service quality (t-value = 2.482) have a positive effect on repurchase inten- tion, while customer satisfaction partially mediates the effect of website design qual- ity (t-value = 3.936) and service quality (t- value = 2.997) on repurchase intention. Furthermore, the
results of the r-
squared
value generated
by
this analysis
show
that variable customer
satisfaction and repur- chase intention have a r-squared value of 0.648 and 0.823 respectively.
Based on these results, it
can
be concluded that customer
Table 22. R-squared (American Conti- nent) Variables R-squared Value Customer Satisfaction Repurchase Intention 0.648 0.823
satisfaction is explained by website design quality and service quality
by 64.8 percent, while
repurchase intention is explained by variables
discussed in this research by 82.3 percent.
Furthermore, path coefficient
analy- sis
was conducted not only in order to know the relationship between variables, but also to know whether the hypotheses proposed in this research
is
supported or rejected. Based on the results generated
by
the path coefficient analysis, it
is
revealed that
all hypotheses
have
exceeded the cut- off
t
-value of 1.96.
Therefore,
based on these results, it
can
be concluded that
in North
and
South American continents, all hypotheses in this research are supported. Table 23.
Path Coefficient Analysis
(American Continent)
Relationships T-Value Sig.Value Conclusions
Website Design
Quality ? Customer
Satisfaction 3.470
0.000 Signficant
Service Quality ?
Customer
Satisfaction 2.318
0.
008
Signficant
Customer Satisfaction ? Repurchase Intention 3.140 0.001 Signficant Website Design Quality ? Repurchase Intention 4.327 0.000 Signficant Service Quality ? Repurchase Intention 2.482 0.006 Signficant Table 24. Mediation Analysis (American Continent) Relationships T-Value Sig.Value Conclusions Website Design Quality ? Repurchase Intention Website Design Quality ? Customer Satisfaction ?Repurchase Intention Service Quality ? Repurchase Intention Service Quality ? Customer Satisfaction ? Repurchase Intention 4.327 0.000 3.936 0.000 2.482 0.006 2.997 0.002 Partial Mediation Partial Mediation Discussion The results of the data analysis show that all hypotheses proposed in this re- search are supported, regardless of where it was conducted. According to the data gathered from respondents living in Asia, Australia, Europe, and North and South America, all hypotheses are supported meaning that website design quality and service quality have a positive effect on re- purchase intention, website design quality and service quality have a positive effect on repurchase intention through customer satisfaction, and customer satisfaction has a positive effect on repurchase intention. Based on these results, it can be concluded that regardless of which continent the study is conducted on,
website design quality and service quality
play an
important
role
in determining
consumers’
repurchase
inten- tion. The results indicate that, regardless of the continent, both website design quality and service quality play an important, ma- jor, and non-exchangeable role in develop- ing or inducing loyalty or repurchase in- tention in the consumers’ minds. As buy- ers and sellers don’t interact directly in the e-commerce industry, websites developed by the e-commerce companies around the world serve as an important intermediary which functions as a “bridge” to connect the buyer and the seller, which ultimately allows both parties to interact with each another. Therefore, disruption, error, or any other problems which occur on the website might disrupt or damage any com- munications that have been established by the buyer, seller, and the e-commerce com- pany itself. This is because through the internet, both buyer and seller are able to interact and conduct e-commerce, either regarding the problems with the prospec- tive seller/buyer that they encounter, or the difficulties that they face regarding the layout, system, or the navigational function on the website. Therefore, it is fully un- derstandable that the results generated by this research find that website design qual- ity has both
a positive and significant
ef- fect
on consumers’ repurchase intention, which
can be explained by the fact that it plays an important role in mediating or bridging the relationships between both the current and prospective buyers and sellers with the e-commerce companies. However, a difference does exist in terms of the importance of website design quality and service quality in affecting re- purchase intention when the results from each continent were compared to each other. In Asia, Australia, and Europe, ser- vice quality plays a more important role in determining consumers’ repurchase inten- tion. This is indicated by the higher t-value that service quality has in terms of repur- chase intention (compared to the t-value that website design quality has in terms of repurchase intention. This result is in line with the previous results of studies con- ducted by both
Zhou et al. (2009), Wilson and Keni (2018)
and
Bernarto et al. (2019),
which also find that
service quality
plays
a more important role in affecting
custom- ers’
repurchase intention.
On
the
other hand, in North and South America,
website design quality
plays
a more important role in
determining
consumers’ repurchase in-
tention compared to service quality. This was indicated by the higher t-value that website design quality has in terms of re- purchase intention, compared to the t-value that service quality has in terms of repur- chase intention. This result is in line with the previous results of studies conducted by Wilson and Keni (2018) which also find that website design quality plays an impor- tant
role in affecting
customers’
repurchase intention. In the e-commerce industry,
as there is no direct or face-to-face interaction be- tween the seller and the buyer,
a website acts as a
“bridge”
which facilitates the
com- munication
between the seller and the buyer.
Therefore, the design quality of a website can be an important factor which determines whether or not the buyer (or potential buyer) will engage in a purchas- ing activity from the company. When cus- tomers encounter various
difficulties while surfing the website, there is
a high
chance that they will stop surfing, close the page, and start surfing a website developed by another e-commerce
company.
On
the other hand,
when customers don’t
encoun- ter
any difficulties while
they are
surfing
on a company’s
website, there is
a high
chance that they will
continue
surfing
deeper into
the
website,
and
might even buy
a
product or service from that company. Furthermore, a website which has good design quality can satisfy customers, as they feel that the interactions and communica- tions that they have on the website are “flawless” and “effortless”, thus increasing the chance that the customers will re-visit the website, or even buy a product or ser- vice from the website again. Similarly, service quality also plays an important role in determining both cus- tomers’ satisfaction and repurchase inten- tion. When customers feel that the quality of the service provided by the company is great (and exceeds their expectations), cus- tomers will be satisfied, thus increasing the chance that they will engage in more pur- chasing activities in the future. However, when the quality of the service provided by the company is deemed to have been bad, it will disappoint and dissatisfy cus- tomers, thus increasing the chance that customers will not buy
a product or
ser- vice
from the company
again,
and will
therefore
buy
it
from
another company. Therefore, it can be stated that both website design quality and service quality play an important role in affecting custom- ers’ satisfaction, which will ultimately af- fect consumers’ repurchase intention with regard to the company. Conclusions and Suggestions Conclusions
Based on the results described and explained in the previous section, it
namely Asian Australia, Europe, North and South America,
website design quality and service quality
play an
important
role
in
determin- ing consumers’
repurchase intention,
either directly or indirectly through customer sat- isfaction. Furthermore, in the Asian, Aus- tralian, and European e-commerce indus- tries,
service quality
plays
a more
impor- tant
role in determining or affecting
con- sumers’ repurchase intention, while
website design quality
plays
a more
impor- tant
role in
determining or
affecting
con- sumers’
repurchase intention in the
North and South
American e-commerce
indus- tries. Managerial
Implications Based on the conclusions drawn in this research,
managers or owners of
e-com- merce
companies conducting business in
Asia, Australia, Europe, and North and South America should understand the im- portance of both website design quality and service quality in bringing success to their companies. This is not only because they can affect people’s level of satisfaction with a company, but also because both variables can affect consumers’ repurchase intention in the future.
E-commerce companies with the ability to
develop websites with
great quality,
along with the company’s ability to offer customers a service which can be
deemed far better than the competitors and
able to
serve customers well,
have a higher chance of attracting, persuading, and
moti- vating
customers to buy a product or
ser- vice
from the company compared to those which don’t have
such
abilities.
Therefore, the companies need to improve the qual- ity of the website that they have developed, and also
need to improve the quality of the service that they offer to customers in
or- der
to prevent them from
buying products/ services from another company, which could be hazardous or disastrous for the company. Furthermore, this research has gener- ated the results which underline that in Asia, Australia, and Europe, service qual- ity plays a more important in determining consumers’ repurchase intention. There- fore,
managers or owners of companies conducting
a
business in the
field
of
e-com- merce on those continents are
required to
pay
more attention and
make more
effort to improve the quality of the service that
their companies
offer to customers in
or- der
to please
them
and
increase the
chance of
them
buying products or services from the same company
again. However, the design quality of the website also needs to be taken care of, since the website is the place where the seller and buyer meet for the first time, and the place where the buyer will judge whether or not to buy the prod- uct or services from the e-commerce com- pany. In
contrast, the results generated in this research
underline
that
in North and South America,
website design quality
plays
a more important role in
determin- ing
consumers’ repurchase intention
com- pared to service quality. Therefore, man- agers
or owners of companies conducting business in the
field
of
e-commerce on the American continents need to understand that the quality of the website developed by the company can prove essential in de- termining customers’ satisfaction and re- purchase intention. Therefore, managers or owners need to keep improving the tech- nological and visual aspects of their websites, so customers can enjoy visiting and exploring the website, and to ensure that customers won’t encounter any error or problem while visiting the website. How- ever, the quality of the service offered by the company also needs attention since it can also determine consumers’ repurchase intention with regard to the company in the future References Limitations This research has several limitations. First of all, this research analyzes the effect of website design quality and service qual- ity on repurchase intention, either directly or through customer satisfaction. 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