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TABLE OF CONTENTS
PANEL OF EXAMINERS APPROVAL SHEET ............................................................... i
SKRIPSI ADVISOR RECOMMENDATION LETTER ................................................... ii
DECLARATION OF ORIGINALITY ............................................................................. iii
ABSTRACT ....................................................................................................................... iv
ACKNOWLEDGEMENT .................................................................................................. v
TABLE OF CONTENTS .................................................................................................. vii
LIST OF APPENDICES ..................................................................................................... x
LIST OF TABLES ............................................................................................................. xi
LIST OF FIGURES .......................................................................................................... xii
CHAPTER I INTRODUCTION ...................................................................................... 1
1.1. Background ......................................................................................................... 1
1.2. Problem Identification......................................................................................... 5
1.3. Research Questions ............................................................................................. 7
1.4. Research Objectives ............................................................................................ 8
1.5. Significance of Study .......................................................................................... 8
1.6. Limitations .......................................................................................................... 8
1.7. Thesis Organization ............................................................................................ 9
CHAPTER II LITERATURE STUDY ............................................................................ 10
2.1. Review of the Literature ................................................................................... 10
2.1.1. Trust .......................................................................................................... 10
2.1.2. Company Reputation................................................................................. 10
2.1.3. Website Quality......................................................................................... 11
2.1.4. Online Buying Behavior ........................................................................... 12
2.2. Research Gap .................................................................................................... 14
2.3. Previous Research ............................................................................................. 14
CHAPTER III METHODOLOGY.................................................................................... 16
3.1. Research Design ................................................................................................ 16
3.2. Theoretical Framework ..................................................................................... 16
3.3. Hypothesis......................................................................................................... 17
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3.4. Operational Definitions ..................................................................................... 18
3.5. Research Instrument .......................................................................................... 19
3.5.1. Validity test ............................................................................................... 20
3.5.2. Reliability Test .......................................................................................... 21
3.6. Sampling Design ............................................................................................... 21
3.7. Descriptive Analysis ......................................................................................... 22
3.7.1. Mean ......................................................................................................... 22
3.7.2. Standard Deviation .................................................................................... 23
3.8. Classis Assumption Test ................................................................................... 23
3.8.1. Normality Test .......................................................................................... 23
3.8.2. Heteroscedasticity Test ............................................................................. 23
3.8.3. Multicollinearity Test ................................................................................ 23
3.9. Multiple Regression .......................................................................................... 24
3.10. Testing Hypothesis ............................................................................................ 24
3.10.1. T-Test ........................................................................................................ 24
3.10.2. F-Test ........................................................................................................ 25
3.10.3. Coefficient of Correlation (R) and Coefficient of Determination (R2) .... 25
CHAPTER IV DATA ANALYSIS ................................................................................... 26
4.1. Respondent’s Profile ......................................................................................... 26
4.2. Pre Test ............................................................................................................. 32
4.2.1. Validity Test .............................................................................................. 33
4.2.2. Reliability Test .......................................................................................... 34
4.3. Descriptive Analysis ......................................................................................... 35
4.4. Classical Assumption Testing ........................................................................... 35
4.4.1. Normality Test .......................................................................................... 35
4.4.2. Heteroscedacity Test ................................................................................. 37
4.4.3. Multicollinearity Test ................................................................................ 38
4.5. Multiple Regression Model Result ................................................................... 38
4.6. Testing Hypothesis ............................................................................................ 39
4.6.1. T-Test ........................................................................................................ 39
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4.6.2. F-Test ........................................................................................................ 41
4.6.3. Coefficient of Correlation (R) and Coefficient of Determination (R2) .... 41
4.7. Interpretation of Results .................................................................................... 42
4.7.1. The Influence of Trust towards Customer Satisfaction ............................. 42
4.7.2. The Influence of Company Reputation towards Customer Satisfaction ... 42
4.7.3. The Influence of Website quality towards Customer Satisfaction ............ 42
4.7.4. The Influence of Trust, Company Reputation and Website Quality towards Customer Satisfaction ............................................................................................... 43
CHAPTER V CONCLUSIONS AND RECOMMENDATIONS ................................... 44
5.1. Conclusion ........................................................................................................ 44
5.2. Recommendation .............................................................................................. 45
5.2.1. E-Commerce Company ............................................................................. 45
5.2.2. Future Research......................................................................................... 45
REFERENCES ................................................................................................................. 46
Appendices ........................................................................................................................ 51
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LIST OF APPENDICES
Appendix 1: Complaints towards Tokopedia ........................................................ 51
Appendix 2: Online Questionnaire........................................................................ 53
Appendix 3: Data from Questionnaire .................................................................. 64
Appendix 4: SPPS Calculation and Results .......................................................... 69
Appendix 5: Most Popular and Visited E-Commerce........................................... 72
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LIST OF TABLES
Table 1.1 The Retail E-Commere Market in ASEAN ........................................................ 2
Table 2.1 Previous Researches.......................................................................................... 14
Table 3.1 Operational Definitions ..................................................................................... 18
Table 3.2 Relative Grading system ................................................................................... 19
Table 4.1 Most Popular and visited E-Commerce Website .............................................. 32
Table 4.2 Validity Test ..................................................................................................... 33
Table 4.3 Cronbach’s Alpha Internal Consistency ........................................................... 34
Table 4.4 Reliability Test .................................................................................................. 34
Table 4.5 Descriptive Analysis ......................................................................................... 35
Table 4.6 Result of Multicollinearity Test ........................................................................ 38
Table 4.7 Multiple Regression Model Result ................................................................... 38
Table 4.8 T-Test ................................................................................................................ 40
Table 4.9 ANOVA F-Test ................................................................................................. 41
Table 4.10 Coefficient of Correlation (R) and Coefficient of Determination (R2) .......... 41
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LIST OF FIGURES
Figure 1.1 Digital buyer penetration in Indonesia from 2016 to 2022 ................................ 3
Figure 1.2 Retail e-commerce sales in Indonesia from 2016 to 2022 ................................. 4
Figure 1.3 Internet users in Indonesia Statistics.................................................................. 4
Figure 1.4 Number of digital buyers in Indonesia from 2016 to 2022................................ 5
Figure 3.1 Research Framework ....................................................................................... 17
Figure 4.1 Respondent Profiles- Gender ........................................................................... 26
Figure 4.2 Respondent Profiles- Age ................................................................................ 27
Figure 4.3 Respondent Profiles- Educational Level ......................................................... 28
Figure 4.4 Respondent Profiles- Occupation .................................................................... 29
Figure 4.5 Respondent Profiles- Monthly Expenses ......................................................... 30
Figure 4.6 Respondent Profiles- E Commerce Visit Frequency ....................................... 31
Figure 4.7 P-Plot Diagram ................................................................................................ 36
Figure 4.8 Histogram of Regression Standardized Residual ............................................ 36
Figure 4.9 Result of Heteroscedacity Test ........................................................................ 37
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CHAPTER I INTRODUCTION
1.1. Background
Technology has been rapidly growing and become essential in our everyday life. As reported by Internet World Stats' statistics (2017), approximately 50 percent of the entire universe are already connected to the Internet and have accessed the Internet. It shows how strongly it has impact our life nowadays and somehow become significant in our everyday life. Along with the advancement of the technology, the internet has become an important tools for communication and businesses. With the existence of internet, only with a simple clicks and less effort, people are able to communicate with friends and families from countries miles away. Everything can now be done virtually and or digitally, including the way people do business by performing trade over the internet. The internet has also significantly changed the process of conversations and interaction as well as consumer transactions worldwide. The internet is now turns out to be the world’s largest marketplace and reform the old way of doing businesses (Vegiayan, Ming, & Harun, 2013).
Online shopping is in the third place of the highest usability of the internet while the first and second place is web surfing and email surfing (Yörük et al. 2011). Shopping can now be done easily and become more enjoyable. Nowadays, more customers are buying products and even services from an e-commerce website rather than shopping directly at the store which make e commerce market emerging and becoming a hot topic these days. The Electronic commerce or e-Commerce is acknowledged as a business transformation from the actual market to digital market. Furthermore, the political and physical boundaries have also been eliminated by the e-commerce system by providing each person an equivalent penetration in the market where everyone are able to advertise their products in the internet. Meaning that the existence of a website purposing is to sell a product is also known as a virtual store (Zaine, 2015). Online shopping is growing
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significantly for a variety of reason. It is being said that people these days need everything to be done quickly and easy. Therefore, online shopping meets the criteria by offering people a shopping experience that can take place anywhere and can be access anytime. People don’t need to worry running out of time for shopping because doing it online will eliminate the struggle in comparing the price. The online shop surely offer a lot of convenience and provide wide range of products ready to be purchased anywhere and anytime.
In ASEAN, the e-commerce has also shown a major growth over the recent years. Since 2015, the number of internet users in the six largest economies in ASEAN has risen from 244 million to 283 million and this growth is projected to continue at an annual rate of 17.7% until 2020.
Table 1.1: The Retail E-Commere Market in ASEAN
Source: Singapore Minister for Trade, 2016
From the data above regarding the e-commerce market in ASEAN from 2015 shows that Indonesian e-commerce industry is still behind other countries but the potential for E-commerce growth is greatest in Indonesia. It is undeniable given the big number of population in this country. This prediction is consistent with a forecast data by Statista shown in table 1.1.
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Figure 1.1: Digital buyer penetration in Indonesia from 2016 to 2022
Source: Statista, 2017
A survey held by Asosiasi Penyelenggara Jaringan Internet Indonesia (APJII) in 2016 also revealed that more than a half of Indonesian citizens which around 132.7 million people have connected to the internet. With such a great number of population and internet users, Indonesia’s becoming a great target market for e-commerce industry. From figure 1.1 it stated by 2022, the percentage of the digital buyer penetration in Indonesia is projected to increase to 15.7 percent. On the other hand, according to an economic census conducted in 2016 by Badan Pusat Statistik (BPS), it is reported that Indonesia’s e-commerce industry has growth 17% or approximately 26.2 businesses from year 2006 until 2016 (Deny, 2016).
Furthermore, according to a global research by Bloomberg, by 2020, more than half of Indonesian citizens will get involve in e-commerce activities. It can be shown in the figure 1.2 where the retail e-commerce sales in Indonesia from 2016 is keep increasing and by 2022, e-commerce sales are determined to exceed 14.4 billion U.S. dollars in revenues, up from 5.78 billion U.S. dollars in 2016. Even in recent years, a lot of big company and retail have switch their business to become digital. Therefore in recent years the e-commerce business in Indonesia will become stronger, supposed by the statement of the chairman of Indonesian E-Commerce Association (idEA), Aulia E. Marinto.
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Figure 1.2: Retail e-commerce sales in Indonesia from 2016 to 2022
Source: Statista, 2017
E-commerce influences almost all scopes in a country and especially in developing countries like Indonesia, it gives positive impacts by boost the economic growth (Sin & Purnamasari, 2011). In Indonesia, the majority of the internet users in Indonesia come from Java Island with the percentage of 65% according to a survey conducted by APJII (Asosiasi Penyelenggara Jaringan Internet Indonesia) in 2016 as shown in figure 1.3. Therefore, the e-commerce should be strived by the importance to create consumer’s satisfaction since consumers are widely recognized as the main participant to improve companies’ performance.
Figure 1.3: Internet users in Indonesia Statistics
Source: Kompas, 2016
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1.2. Problem Identification
The growing of e-commerce businesses in Indonesia has create a tight competition in the industry. A forecast by Statista (2017) in figure 1.4 the number of digital buyers in Indonesia from 2016 to 2022 will keep increasing. It is expected by 2022, 43.9 million people in Indonesia are predicted to purchase goods and services online, increasing from 24.9 million in 2016. However, all of the e-commerce website provide almost similar offer and quality. That’s why to be able to survive in the industry, the company need to really understand the customers to be able stand out among competitors.
Figure 1.4: Number of digital buyers in Indonesia from 2016 to 2022
Source: Statista, 2017
In Indonesia, the rate of the bank account ownership is very low which make the payment method become a problem in the e-commerce industry (Noor, 2015). People who don’t own any account tend to choose not to shop online. Suppposed by statement of the CEO and co-founder of Bukalapak, Achmad Zaky the ownership rate of bank account in Indonesia is only around 60 million people out of 250 million citizens in this country. This problem will obviously reduce the potential buyer if the company doesn’t make innovation in the website quality.
In fact, from the survey conducted by Kaspersky Lab in Twenty six countries, Indonesia is one of a country with the biggest number of online fraud victim. 26% of the consumers have experienced being cheat during their online shopping
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(Iskandar, 2017). Furthermore, according to a survey by Jarvis (2014), most of Indonesians are still hesitate to purchase from e-commerce website not because of the security but instead because of the credibility or the reputation of the merchant that is doubtful.
Online shopping is already known to be quite risky and uncertain because of the business transaction that being done digitally and or virtually. One of the outcome is the concern for the financial security which raise a negative impact towards online shopping intention (Javadi, 2012). Considering that throughout the online shopping process the customer are not interacting directly, then it is crucial for the e-commerce company to provide the customer with a good customer service digitally.
For example is JD.ID, one of the new comers in Indonesia e-commerce industry. JD.ID has only start to operate in Indonesia on October 2015. Therefore, they need to put more efforts to be able to compete against the others big e-commerce in Indonesia to build their brand awareness and company recognition. These days they are manage to spread their business to be recognized. However the complaint from customers are still inevitable as shown in table below.
Table 1.2: The Customer’s Complaint Data at JD.ID
(17th July – 17th October 2017)
The customer’s reasons
Qty
Percentage
CUSTOMER IN DAMAGE
4
0,26%
DAMAGE BY LOGISTIC
73
4,71%
FAKE AND SECOND PRODUCT
3
0,19%
MISING PART
13
0,84%
OUT OF WARRANTY
1
0,06%
PERSONAL PREFERENCES
345
22,27%
PRODUCT QUALITY
965
62,30%
TECHNICAL SUPPORT
1
0,06%
WRONG GOODS
144
9,30%
Grand Total
1549
100,00%
Source: Internal Data from JD.ID, 2017
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Complaints are also unavoidable for Tokopedia which is a bigger and more popular e-commerce in Indonesia. As reported on Media Konsumen website (2017) by Lucya danawijaya, she is disappointed with the customer services of Tokopedia. She explained that she was experiencing an error checkout when she is about to purchase a product from the website because of the unstable internet signal. She is disappointed because the error checkout is still billed to her and when she asked for help to the customer service, the feedback is unsatisfying without a clear answers and solutions. She also pointed out that the people answering her is consisted of different people whom have different explanations. Another complaints toward Tokopedia are also existed mentioning their system that is error when the customer is about to verified the payment, the inexistences of the call center and others cases regarding the bad system and services as shown on appendix 1.
Therefore, it is crucial for the businesses to make sure that the customers are getting a pleasant shopping experiences that satisfy their expectations in purchasing the products. Most of the e-commerce success depend on how much attention they give in a lot of different aspect. To build this kind of business, the capability to form a competent web sites is substantial to survive in the industry (Vegiayan, Ming, & Harun, 2013). Hence, the e-commerce website need to be able to identify what factors actually drive the customer to purchase online and satisfy it in this competitive business environment.
1.3. Research Questions
This research is ought to answer the questions below:
1. Is there any significant influence of trust towards customer’s satisfaction for online buying in Jabodetabek area?
2. Is there any significant influence of the website quality towards customer’s satisfaction for online buying in Jabodetabek area?
3. Is there any significant influence of the company reputation towards customer’s satisfaction for online buying in Jabodetabek area?
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4. Is there any simultaneous significant influence of trust, the website quality and the company reputation towards customer’s satisfaction for online buying in Jabodetabek area?
1.4. Research Objectives
1. To identify any significant influence of trust towards customer’s satisfaction for online buying in Jabodetabek area
2. To identify any significant influence of the website quality towards customer’s satisfaction for online buying in Jabodetabek area
3. To identify any significant influence of the company reputation towards customer’s satisfaction for online buying in Jabodetabek area
4. To identify any simultaneous significant influence of trust, website quality and company reputation towards customer’s satisfaction for online buying in Jabodetabek area
1.5. Significance of Study
The objective of this research is to present knowledge regarding the e-commerce industry in Jabodetabek area. More specifically, this research will investigate and analyze the factors that contribute to customer online purchasing behavior in Jabodetabek area. This study is also expected to useful for the e-commerce Company to understand the customers better and therefore able to acquire more customers by fulfilling the customer desires. Finally this research will contribute as references and provide information for future researches who want to study a related topic regarding online purchasing behavior.
1.6. Limitations
The respondents for this study is limited only for people who currently domiciled in Jabodetabek area and has experienced shopping online in e-commerce website before because these people are the one who can give feedback regarding their online purchasing experience. This research is only included three independent variables which become the factors that influence the online purchasing behavior which are trust, the website quality and the company reputation. The primary data acquired in this study are collected through online questionnaire. This study choose
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Jabodetabek as the location of the study because the area has the most internet users in Indonesia as shown in figure 1.3.
1.7. Thesis Organization
The thesis consist of five chapter which are introduction, literature study, methodology, data analysis and conclusion. The first chapter gives the outline of the whole study by providing the background of this research and problem identification along with the research objectives. This chapter also provides the limitations of this study. The second chapter review the literature for each variables used and research gap. The third chapter illustrates the research design, hypothesis, operational definitions, research design and sampling plan. The fourth chapter reveals the results of the research and discuss the findings. Finally, the last chapter which is the fifth chapter gives the conclusions and recommendations of the research findings based on the analysis and discussion of results.
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CHAPTER II LITERATURE STUDY
2.1. Review of the Literature
2.1.1. Trust
Trust is a person’s expectation towards others behavior when it is feasible to get hurt by others selfish behavior (Zaine, 2015). While according to Jameel and Ali (2016), trust defines as the compliance of the customer to trust the competence of the brand to execute its use as promises. They also emphasis that trust is relevant in uncertainty. Trust are able to decrease the ambiguity in an environment where the customers experienced vulnerability because they aware of the brand integrity. In business, trust is defined as dimension of a business relationship that specify the customers’ state of confidence towards the promises that being display by the company (Mohd Sam & Tahir, 2009). Trust is significantly influence the development of the customer relations and commitment to purchase frequently. In most cases, trust is built with several successful purchase, then the customer will feel secure and confident that the company is able to meet their needs and wants.
The Relationship between Trust and the online buying behavior
Online trust is the essential element in order to build the relationship with customers. According to Ha et al (2010) the result of the customers’ trust is the customers’ satisfaction towards the company. Hence, trust plays a significant role in online shopping because it helps consumers to avoid the vendor’s possible negative behaviors in order to gain advantages for themselves. This will then increases consumers’ intention to buy online. While the absence of trust will decreases the opportunity of the customers to engage in online shopping because they are hesitating to get involve with company that they can’t be assured at. Trust is also an important factor which affect the customer’s behavior before and after the purchase of products (Gul, 2014).
2.1.2. Company Reputation
Reputation is the assessment where everyone frequently held as a name or a way which a particular person or thing is known for (Gul, 2014). A company may have
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a vary reputation such as price, product quality and innovativeness or they can have only one global reputation. This reputation will affect the company ability to involve in activities with the society since the reputation will also affect the customers respect towards the company. A good reputation company will also profitably characterize their positioning in the market. Customers’ perceptions towards the company can occur directly through exposure to its products and services. According to Kandampully and Hu (2007), the company image consist of two fundamental aspects which are tangible and emotional characteristics. The tangible characteristic can be measured and asses more efficiently. While the emotional characteristics such as feelings, attitudes and beliefs are emerge from the combined interactions between customers and the company. Therefore, there are several factors regarding the company reputation such as the company’s brand, customer relationship management, trust, credibility, commitment and loyalty. Those factors mentioned are all hold an important aspects towards the appearance and the continuance of the company’s image and or reputation (Issa, 2011).
The Relationship between Company Reputation and the online buying behavior
A company with a good reputation is a long-term investments by the company to build and maintain relationship with the customers in the future. (Zaine, 2015). Consumers will obviously prefer companies with positive reputation since they are recognized for its integrity. The images of the companies may also occur through comments from friends, family members, and colleagues which shows that customers view the firm’s reputation from other people’s experience with the company that will eventually affect the consumer’s choice. Furthermore, reputation is significantly influences the attitudes, decisions and behaviors of the customers (Pool, Pool, & Taghipourian, 2016). It is because a good reputation will reflects the superior quality and reliability of the company.
2.1.3. Website Quality
A website quality can be specify by several aspects such as ease of use, usefulness, easy to navigate and readable (Hassan and Abdullah, 2010). Content on the website like text, pictures, graphics, layout, sound, motion are critical to generate a good
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website. Therefore, a good website must has a high-quality content which regularly renew, has minimum error, easy to use and suitable with the user’s needs. A quality of the information quality on the website is also influences user perception of the website experience and service delivery. In a research by Hausman and Siekpe (2009) regarding website design mentioned that bringing a better media with more authentic ambiance has more positive impact towards the user’s engagement.
The Relationship between Website Quality and the online buying behavior
A website design plays a significant part in pleasing the customers since it develops relationship ahead with the customers before they buy the products. Customers put the weight on the information obtained from the website before buying the product since the products are not presence. Therefore, the competence to develop an effective marketing web sites is a necessary requirement to survive in the industry. Considering that online shopping does not provide a direct interactions with the customers so that they cannot touch or feel the products directly. Therefore the customers’ judgment are only based on the information that present by the website. It is very crucial for the website to be able to provide accessibility and personalization approach. Web site appearance, easy access and access time to information are also important to affect the customer’s behavior. In online shopping, the customers are not simply wanting to buy the products but they want to experiences the online services where they can access 24hours. Therefore, a good quality website will likely result in profitability, return service patronage and positive word of mouth.
2.1.4. Online Buying Behavior
As stated byt Gozukara et al. (2014), the first dimension of the behavior is the consumer’s attitude towards a utilitarian motivation (convenience, variety seeking, and the quality of merchandise, cost benefit, and time effectiveness). While hedonic motivation (happiness, fantasy, escapism, awakening, sensuality & enjoyment) comes as the second dimension. As for the third dimension is perceived ease of use, and usefulness (Baber et al. 2014). The others important aspect is perceived risk which also affecting the costumer’s behavior towards online shopping. Consumer
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Buying Behavior also revolve around the process when individuals evaluate, select, secure, use, and eliminate the products for the sake of satisfying their demands. This process allow the consumers to make the decision based on their own believes and perceived values. Online Shopping behavior also interpreted as someone impression and appraisal for products or services regarding their online shopping experiences where the outcome can either be positive or negative (Thananuraksakul, 2007). Furthermore, An alternative way to approach the relationship between the shopping experience or customer satisfaction and purchasing behaviour is to assume that differences in the shopping experience alter the preference structure of the consumer and make purchases in the Web shop that provides the better shopping experience more appealing (KOIVUMÄK, 2010). According to a study conducted by Meilian and Yuefeng (2008), consumer satisfaction is positively related to attitude to shopping online and intention.
2.1.4.1. Customer Satisfaction
The customer satisfaction is very crucial in doing businesses because satisfaction can lead to repurchase and customer loyalty in the future. Satisfaction is also key determinant in customer’s decision to continue or discontinue their association with the product or service (Tandon, kiran, & Sah, 2017). Furthermore, customer satisfaction can be uses as a powerful weapon to survive and protect the company from the fierce competition (Abd-El-Salam, Shawky, & El-Nahas, 2013). According to Ha et al. (2010) customer satisfaction will eventually lead to positive attitude. Satisfaction can also be an interpretation of someone’s awareness of the enjoyment or discouragement of the products which they receive compare to their prediction (Kundu & Datta, 2015). Customer satisfaction can be illustrate as both the outcome and the process. As an outcome, satisfaction become the finish result of the customers’ buying experiences. While as a process, satisfaction indicate the impression, assessment and psychological processes that support the satisfaction. Someone’s satisfaction can be confirmed when the product and/or service performs as intended and vice versa. This pattern also familiar as the confirmation or disconfirmation which result as an emotional reaction called satisfaction or dissatisfaction (Slatten, 2008).
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2.2. Research Gap
Based on several researches that have been conducted, there are several factors that can influence the customer’s online buying behavior. In a research to examine the factors that may affect consumers’ intentions to repurchase products and services online by Nor Elya Binti Mohd Zaine (2015) in Malaysia, it is stated that perceived value, firm’s reputation, trust and reliability of the customer towards online businesses are the influences of the customer intention to repurchase online. Another research entitled “Online Shopping Behavior” mentioned website design, trust and security, product performance risk are the crucial external online factors for the online shopping in Sweden (Shahzad, 2015) . This research will fill in the the gap from those researcher mentioned by focusing on the variables which are trust, company reputation and website quality towards online buying behavior in Indonesia.
The e-commerce world is changing every day, new technology that are developing may provide better services and innovate the industry. Hence, the factors influencing consumers buying decision making process may change as well. This study will disclose the similarities and differences of the previous research mentioned towards the research conducted now by the researcher.
2.3. Previous Research
Table 2.1: Previous Researches No Author (Year) Title Result
1
Nor Elya Binti Mohd Zaine (2015)
To Study The Relationship between perceived value, firm’s reputation, trust and reliability towards online repurchase intentions
Perceived value, firm’s reputation, trust and reliability of the customer towards online businesses are the influences of the customer intention to repurchase online
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2
Hashim Shahzad (2015)
Online Shopping Behavior
Website design, trust and security have a crucial impacts towards consumers’ online shopping behaviour
3
Amir Khazaei Pool, Morteza Khazaei Pool, Mohammad Javad Taghipourian
(2016)
Customer satisfaction through corporate reputation: The mediating role of perceived value
Corporate reputation has a positive effect on customer satisfaction and perceived value
4
Chu Phuong Anh
(2015)
Factors Influence Customer Satisfaction in Mobile Commerce – A research on Vietnamese mobile users
Good quality of service can make a positive impact on customers’ satisfaction
5
Roshana Gul
(2014)
The Relationship between Reputation, Customer Satisfaction, Trust, and Loyalty
There is positive and significant relationship among reputation, customer satisfaction, trust and customer loyalty
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CHAPTER III METHODOLOGY
3.1. Research Design
Research design is a scheme that explain the technique, mechanism and action of how the research is organized so that the answers for the research questions will meet the research objectives and able to give a significant information (Malhotra, 2010). There are two main approaches on conducting a research. There are qualitative research and a quantitative research or it can also conducted by using both in mixed method. For this research, the researcher chooses to apply the quantitative approach.
According to Bush & Ortinau (2006), the research problem using quantitative approach is more definitive and precise which will generate a higher correctness in gaining the data needed. Quantitative research uses numbers to test the hypothesis and came up with conclusion by using the measured amount resulted by a statistical test (Kowalczyk, 2015). One common character of this quantitative approach is that the interpretations are obtained from a sample out of the entire population being studied. Which mean out of the entire population competent to be included in this research, only some of them can actually be counted. This research consist of both primary and secondary data. The secondary data is acquired from structured questionnaires which generally use in this approach in order to collect the respondents’ feedback towards the questions established by the researcher.
In this study, the researcher apply Multiple Regression Analysis which is an expansion of a simple linear regression. It is utilized to foresee the value of a variable based on the value of two or more other variables. The variable to be analyzed is called the dependent variable, while the variables that are used to analyze the dependent variable is called the independent variables (Statistics, 2013).
3.2. Theoretical Framework
To analyze the online buying behavior in Indonesia, the variables used in this studies are:
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Source: Adapted from previous research, Shahzad (2015) and Nor Elya Binti Mohd Zaine (2015)
3.3. Hypothesis
Ho1: There is no significant influences of trust towards Customer satisfaction for online buying in Indonesia
Ha1: There is significant influences of trust towards Customer satisfaction for online buying in Indonesia
Ho2: There is no significant influences of company reputation towards Customer satisfaction for online buying in Indonesia
Ha2: There is significant influences of company reputation towards Customer satisfaction for online buying in Indonesia
Ho3: There is no significant influences of website quality towards Customer satisfaction for online buying in Indonesia
Ha3: There is significant influences of website quality towards Customer satisfaction for online buying in Indonesia
Ho4: There is no simultaneous significant influences of trust, company reputation and website quality towards Customer satisfaction for online buying in Indonesia
Ha4: There is simultaneous significant influences of trust, company reputation and website quality towards Customer satisfaction for online buying in Indonesia
H4
Simultaneously
H2
H1
Trust
Website Quality
Company Reputation
Customer Satisfaction
X1
X2
X3
Y
H3
Figure 3.1: Research Framework
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3.4. Operational Definitions
Table 3.1: Operational Definitions
No
Variable
Definition
Indicator
Scale 1 Trust A person’s expectation of the other’s cooperative behavior in situations where it is possible to suffer some damage if the other behaves selfishly (Zaine, 2015) ● Integrity of the promise offered by the seller or company ● Several successful transactions ● Feeling save ● Perceived security control ● Perceived competence Likert
2
Company Reputation
Estimation of the consistency over time of an attribute of an entity (Jameel & Ali, 2016)
● Price ● Product quality ● Customer relationship management ● Credibility
● Company’s brand
Likert 3 Website Quality Providing richer media with more real environment has more positive influence with user’s involvement (Hausman & Siekpe, 2009) ● Ease of use ● Easy to navigate ● Readable ● Updated Content ● Colour and font used Likert
4
Customer Satisfaction
A person's feeling of the pleasure or disappointment arising from comparing products’ perceived performance in relation to expectation (Kundu & Datta, 2015)
● Meet the expectation ● Excellence service quality ● Repurchase ● Customer Loyalty ● Positive Attitude ● Customer's decision
Likert
Source: Constructed by Researcher Based on Literature Review
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3.5. Research Instrument
The primary data is acquired by the researcher from the respondent through questionnaire. While the secondary data is obtained from previous researches, articles, books, reports and related website.
The researcher spread the questionnaire via online through Google docs. The questionnaires are merely spread online via social media such as LINE and Whatsapp. In order to get the primary data, the researcher divided the questionnaires to three parts. The first part is the filtered questions to make sure that the limitation of this research is fulfill in order to avoid any bias respond from the respondent. The second part consist of several questions asking about the respondents’ profile. While the third part consist of statements regarding to the four variables used in this research which are trust, company reputation and website quality and customer satisfaction. The questionnaire in this study used 5 point Likert Scale (1=Strongly Disagree, 2=Disagree, 3=Neutral, 4=agree, 5=Strongly Agree) to calculate the degree of agreement from the respondent so it can be analyzed more accurately and efficiently as shown in table 3.2 below. The Likert scale is commonly used for questionnaires in quantitative research. According to Shahzad (2015), the Likert scale has advantages such as the respondents feel more comfortable completing also the simplicity and ease of use.
Table 3.2: Relative Grading system
Source: Kothari, C. R. (2006)
This quantitative research will measure the data using descriptive statistics. The raw data will be transform into numerical data. To prove the reliability of results, the exactness of the raw data has been processed by computer program Statistical Package for Social Sciences (SPSS). This software has been generally used for statistical analysis (Yoldas, 2011). The data are then given in form of tables,
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diagrams and pie charts. Therefore, the data in this research is analyzed by two tools which are Microsoft excel 2013 and SPSS V20. The Microsoft Excel is used to sum up the raw data that is obtained from the company. While the SPSS is utilized to process the data acquired from the questionnaire’s responses so that it will facilitate the researcher to analyze the data.
3.5.1. Validity test
Validity test is a measurement to indicate variables that will be investigated by the researcher (Cooper & Schindler, 2013). The result of validity is obtained from SPSS where the researcher uses Bivariate Correlation tool to determine the validity of each questions in the questionnaire. This correlation is using Pearson’s Correlation Coefficient. The result of each correlation will be compared to the r table, measured by the degree of freedom. If the R-computed Value is greater than R-table Value, it means that the statement is valid and vice versa. In this research, a questions is classified to be valid if its’ person correlation value is bigger than the R-table of 0.361.
Pearson Product-Moment Coefficient of Correlation Formula
Source: (Statistical Computation Lab, 2003)
Where:
r = Correlation between overall question instruments
n = The number of paired observation
Ʃ𝑥 = The X variable summed
Ʃ𝑦 = The Y variable summed
Ʃ𝑥2 = The X variable squared and the squares summed
(ƩX)2 = The X variable summed and the sum squared
Ʃ𝑦2 = The summed of squared variable Y
(ƩY)2 = The Y variable summed and the sum squared
ƩXY = The sum of the product of X and Y
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3.5.2. Reliability Test
Reliability is consistency in measurement, a sign of the constancy and consistency that evaluate the measure (Sekaran & Bougie, 2010). Reliability test will identify thow reliable the questionnaire is. The measurement that is used in this research is Cronbach Alpha which is the reliability coefficient that shows how well the things in a set have positive connection to each other. The value of Cronbach’s Alpha should be greater than or equal to 0.7 to indicate an acceptable internal consistency (Andale, 2014).
Reliability test formula
Source: (Malhotra, 2010)
Where:
α = Instrument reliability coefficient
R = Mean correlation coefficient between variables
N = Number of questions
3.6. Sampling Design
A procedure used in a particular research to determine its sampling method is known as the sample design (Kent, 2007). The Population of this study is people who currently domiciled in Jabodetabek area and has experienced shopping online through e-commerce website. Therefore, the population for this study is unknown. There are two kinds of sampling as stated by Saunders et al (2009) which are probability sampling and non-probability sampling. For this study the researcher decide to apply the method of Purposive sampling from non-probability sampling. A filtered question is put in the questionnaire to make sure that respondents are currently domiciled in Jabodetabek area and has experienced purchasing from e-commerce website in order to get a valid answer.
In determining sample size, the researcher will apply one of sampling method which is 5 times the amount of questions (Tabachnick & Fidell, 2007). From the Sekaran formula mentioned, it is then resulted that the minimum total of respondent is 130 since there are 26 questions asked in the questionnaires being spread. Hence, the
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link of the questionnaire have been spread online since 13 November until 6 December 2017. The questionnaire is distributed to 235 respondents and 25 stop filling the questionnaire because of the filtered questions. The researcher then successfully obtained 209 respondents including the first 30 respondents which already go through the pre-test and proved to be reliable and valid. Therefore the researcher proceed with the reliable and valid 209 respondents to conduct the real test.
3.7. Descriptive Analysis
The descriptive analysis aims to define and are used to design the framework of an individual’s characteristic, conditions, or situation from data collection. It includes the quantitative data collection such as demographic information, figures, tables, and also qualitative information (Sekaran & Bougie, 2010).
3.7.1. Mean
The mean is the average value of multiple pieces of data and determined by dividing the amount of data with a number of data. Arithmetic mean that contribute to the
final mean equally, some data focus on providing more “weight” than others (Andale, 2014).
Mean Formula
Source: (Andale, 2014)
Where:
𝑥̅ = Mean
Ʃ = Sum
𝑤 = Weights
𝑥 = Value
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3.7.2. Standard Deviation
Standard deviation is the size of statistical distribution that is prevalent. In short, it measures how the data values are spread. It could also be defined as the average distance of deviations of data points and measured from the average value of data.
Standard Deviation Formula
Source: (Andale, 2012)
Where:
s = Sample standard deviation
𝑛 = Number of scores in a sample
𝑥 = Value of a sample
𝑥̅ = Mean of the sample
3.8. Classis Assumption Test
3.8.1. Normality Test
Normality test aims to test whether the residual variable has a normal distribution in regression analysis or not, if this assumption is violated then statistical test are considered as invalid with small sample size (Ghozali, 2011). The normality test is conducted with P-P plots and histogram chart to test the regression model residuals.
3.8.2. Heteroscedasticity Test
Heteroscedasticity test objective is to test whether in the regression model occurs dissimilarity from one observation to others. If the residual value has the same variance then it is called homoscedasticity, and if it’s different then it is called heteroscedasticity (Ghozali, 2011). The regression model is considered to be good when there is no heteroscedasticity occur.
3.8.3. Multicollinearity Test
Multicollinearity test objective is to test the correlation existence among independent variable in the regression model. There is supposed to have no correlation existence among independent variable in the regression model (Ghozali,
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2011). Multicollinearity exists when VIF (Variance Inflation Factor) value is greater than 10 and tolerance value is lesser than 0.1. When a VIF > 10 then there is an existence of multicollinearity which considered unsatisfactory, representing that independent variable should be eliminated for analysis. When a VIF < 10 and when tolerance value is bigger than 0.1 considered there is no existence of multicollinearity problem.
3.9. Multiple Regression
In this study, regression analysis is a model that applied to identify the dependency of the dependent variable and two or more independent variable (Ghozali, 2011). Multiple regression objective is to study the relationship between some independent variables and a dependent variable, this model’s equation is:
Multiple Regression Formula
Where:
Y = Willingness to Pay More (Dependent Variable)
α = Constanta
β1 - β 3 = Regression Coefficient
X1 = Brand Saliency (Independent Variable)
X2 = Brand Reputation (Independent Variable)
X3 = Service Excellence (Independent Variable)
ε = Random Error
3.10. Testing Hypothesis
3.10.1. T-Test
In this study, the t-test is used to identify the influence each one of the independent variable towards the dependent variable. The researcher will use α = 0.05 level of confidence. If the Sig. value < 0.05, reject Ho and accept Ha, if Sig. value > 0.05, accept Ho and reject Ha. The formula of a t-test:
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Where:
t = The significance of individual regression coefficients
j = 1,2,3, ... n
bj = Estimated coefficient of the independent variable
βj = Actual coefficient of independent variable
Sbj = Standard error of the regression coefficient
3.10.2. F-Test
In this study, f-test is used to identify whether all independent variables (X1, X2, and X3) has a significant influence towards dependent variable (Y) or not. The researcher will use α = 0.05 level of confidence. The result of calculated F-test will be compared to the value of F table with 0.05 level of confidence. If F-test < 0.05 then reject Ho, if F-test > 0.05 then accept Ho.
3.10.3. Coefficient of Correlation (R) and Coefficient of Determination (R2)
The coefficient of determination measure how well the capability of independent variables in explaining the dependent variable. The range value of coefficient of determination is 0 < R2 < 1. If the value of adjusted R2 is closer to 0 then independent variables have the lesser capability in explaining the dependent variable, while if the value of adjusted R2 is closer to 1 then independent variables have greater capability in explaining the dependent variable.
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CHAPTER IV DATA ANALYSIS
4.1. Respondent’s Profile
A. Gender
Figure 4.1: Respondent Profiles- Gender
Source: Researcher Primary Data
Figure 4.1 presents the percentage of the respondent’s gender for this research. There are 209 respondents in total that will be analyzed further in this survey. The 209 respondents are consist of 66% female (138 respondents) and 34% male (71 respondents). Therefore, the majority of the respondents are female.
66%
34%Gender
Female (Perempuan)
Male (Laki-laki)
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B. Age
Figure 4.2: Respondent Profiles- Age
Source: Researcher Primary Data
Figure 4.2 presents the percentage of the respondent’s age for this research. From the data above, it is clearly shown that most of the respondents were ages between 15-25 years old with 69% (143 respondents). It is also mean that more than half of the respondents are teenagers and young adults. While the rest of the respondents were 17% ages more than 45 years old (35 respondents), 12% were 26-35 years old (26 respondents) and 2% were 36-45 years old (5 respondents).
69%
12%
2%
17%Age
15-25
26-35
36-45
> 45
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C. Educational Level
Figure 4.3: Respondent Profiles- Educational Level
Source: Researcher Primary Data
Figure 4.3 presents the percentage of the respondent’s educational level for this research. Most of the respondents are coming from a bachelor degree background with 49% (102 respondents). The rest of the respondents were 38% had a high school degree (80 respondents), 10% had associate degree (20 respondents) and only a few which is 3% had a master’s degree (6 respondents).
38%
10%
49%
3%Educational level
High School degree (SMA/SMK)
Associate degree (Diploma)
Bachelor’s degree (S1)
Master’s degree (S2)
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D. Occupation
Figure 4.4: Respondent Profiles- Occupation
Source: Researcher Primary Data
Figure 4.4 presents the percentage of the respondent’s occupation for this research. The majority of the respondents were students with 54% (113 respondents). The rest of the respondents are 29% were an employee (63 respondents), 8% were an entrepreneur (16 respondents) and the others 8% were a housewife (16 respondents).
54%
30%
8%
8%Occupation
Student (Pelajar, Mahasiswa/wi)
Employee (Pegawai)
Entrepreneur (Wiraswasta)
Housewife (Ibu Rumah Tangga)
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E. Monthly Expenses
Figure 4.5: Respondent Profiles- Monthly Expenses
Source: Researcher Primary Data
Figure 4.5 presents the percentage of the respondent’s monthly expenses for this research. Most of the respondents is coming more from people whose expenses in a month is less than 2 Million Rupiah and around 2-5 Million Rupiah with only a slight differences in percentage. The percentage is 38% (79 respondents) for people who spend less than 2 Million Rupiah in a month and 37% (77 respondents) for people who spend 2-5 Million Rupiah in a month. While the others 14% (30 respondents) spend around 5-8 Million Rupiah in a month and 11% (23 respondents) claimed to expend more than 8 Million Rupiah in a month.
38%
37%
14%
11%Monthly Expenses
< 2 million IDR
2-5 million IDR
5-8 million IDR
>8 million IDR
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F. E-commerce visit frequency (in a month)
Figure 4.6: Respondent Profiles- E Commerce Visit Frequency
Source: Researcher Primary Data
Figure 4.6 presents the percentage of the respondent’s E Commerce Visit Frequency in a month for this research. From data above is shown that most of the respondents visit the e-commerce website for more than 6 times in a month. The percentage for the majority is 41% (85 respondents). While the others 34% (72 respondents) visit the e-commerce website 1 to 3 times in a month, 13% (27 respondents) visit the e-commerce website 4 to 6 times in a month, 12% (25 respondents) visit the e-commerce only once in a month.
12%
34%
13%
41%E-commerce Visit Frequency
1 time
1-3 times
4-6 times
More than 6 times
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G. Most Popular and Visited E-commerce website
Table 4.1: Most Popular and visited E-Commerce Website
Name of website
Number of people mentioned the website
Tokopedia
61
Lazada
54
Shopee
51
Zalora
41
Blibli
25
JD.ID
14
Bukalapak
11
Traveloka
6
Berrybenka
5
Others
< 5
Source: Researcher Primary Data
Table 4.1 shows the most popular and visited e-commerce website answered by the 209 respondents. In this question, the researcher asked the respondents to mention 3 e-commerce website that they know or often visit. Therefore, the questions are vary. The table 4.1 is the list of the website that is mentioned by the respondents and already sorted from the most mentioned. However, there are 4 other website that is mentioned but is not valid because it is not an e-commerce website. From the data we can conclude that the 3 most popular and visited website are Tokopedia, Lazada and Shopee.
4.2. Pre Test
The Researcher conducted pre-test to check the validity and reliability of the questions from the questionnaires. Pre-test can help the researcher to determine whether the questions is understandable or not to the respondents and also to minimize the chance of misunderstandings.
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4.2.1. Validity Test
This test was done by using SPPSS V 20.0 to confirm the validity of the questions from questionnaire. The researcher conducted the test with the data from 30 respondents. The validity of variables come from comparing the pearson correlation with the r table. The Question is proved to be valid if the r is bigger than r table which is 0.361. The results are summarized as present below:
Table 4.2: Validity Test
Source: Primary data, Processed with SPSS v.20
The entire items are valid with r always higher than r table. Therefore, the questionnaire is concluded to be valid.
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4.2.2. Reliability Test
This test was conducted by using SPPSS V 20.0 to confirm the reliability of the questions from questionnaire. Reliability meaning the possibility of obtaining the same results if the measurement reevaluated under the availability of similar circumstances, and by using the same tool of measurement (Mahmud I. Nour[a], almahirah[a], & Sultan "Mohammed Said, 2014). The rule that is generally apply to describe the internal consistency using Cronbach’s Alpha is shown in table 4.3.
Table 4.3: Cronbach’s Alpha Internal Consistency
Source: Andale (2014)
The result of the test is present below:
Table 4.4: Reliability Test
Source: Primary data, Processed with SPSS v.20
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4.3. Descriptive Analysis
Table 4.5: Descriptive Analysis
Source: Primary data, Processed with SPSS v.20
Table 4.5 above presents the respondents’ responses for each independents variables and dependent variable as well. The highest mean which is the most dominant variable is the company reputation with mean 4.19 meaning that most of the answers of the respondents were between agree and strongly agree. While the lowest mean which is the least dominant variable is the customer satisfaction with mean 3.81 meaning that most of the answers of the respondents were between neutral and agree.
4.4. Classical Assumption Testing
4.4.1. Normality Test
The normality test will determine how the data is actually distributed. This test aims to determine whether the data distribution is normal or not by using the P-P Plot (graphic).
According to figure 4.7, the plots are following the diagonal line. The plot or the dots are scatter evenly on the line and the dots are also spreading approximately surrounding the diagonal direction of the line which indicates that the distribution is normal. Therefore, the figure above represents Normal P-P Plot of Regression Standardized Residual.
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Figure 4.7: P-Plot Diagram
Source: Primary data, Processed with SPSS v.20
Figure 4.8: Histogram of Regression Standardized Residual
Source: Primary data, Processed with SPSS v.20
According to figure 4.8, a bell shaped was formed by the curve in the center, either skewed to the left or the rights. This indicates that the data have a variation of value
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that is normally distributed. Therefore, the data can be used to approximate various discrete probability distributions and eligible to conduct a research.
4.4.2. Heteroscedacity Test
Heteroscedacity indicates that variable is not the same variance for all observations. If the variance from the residuals of the observations to other observations remain the same it is called heteroscedacity. Therefore, in a good regression model should not occur heteroscedacity.
Figure 4.9: Result of Heteroscedacity Test
Source: Primary data, Processed with SPSS v.20
According to figure 4.9, it is shown that the dots are randomly spread either at the top or the bottom number 0 far from axis Y. Hence, it can be concluded that there is no heteroscedacity in this regression model. It means that the independent variables in this research are qualified to measure its influence towards the online buying behavior.
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4.4.3. Multicollinearity Test
Table 4.6: Result of Multicollinearity Test
Source: Primary data, Processed with SPSS v.20
According to the table 4.6, all of the independent variable used in this research are free from multicollinearity because the value of VIF for every variable are less than 10 and the tolerance of each variable is bigger than 0.1 as required in this research.
4.5. Multiple Regression Model Result
Multiple Regression is used to identify the significant influence of the independent variable towards the dependent variable
Table 4.7: Multiple Regression Model Result
Source: Primary data, Processed with SPSS v.20
Based on Table 4.7, the multiple regression analysis will be interpreted in the standardized form of the equation as follow:
Y= -0.777+0.632X1+0.368X2+0.332X3
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Where:
Y= Customer satisfaction
X1= Trust
X2= Company Reputation
X3= Website Quality
From the equation above, the researcher may conclude as follow:
1. The regression coefficient of Trust is .000, which is less than α (0.05). Therefore, it means that every 1% increased of Trust will able to increase the customer satisfaction for online buying by 63.3%
2. The regression coefficient of Company Reputation is .000, which is less than α (0.05). Therefore, it means that every 1% increased of Company Reputation will able to increase the customer satisfaction for online buying by 36.8%
3. The regression coefficient of Website Quality is .000, which is less than α (0.05). Therefore, it means that every 1% increased of Website Quality will able to increase the customer satisfaction for online buying by 33.2%
Based on the conclusion above, all of the 3 independent variables (trust, company reputation and website quality) are significantly influence the customer satisfaction for online buying. While, the most influential independent variable towards the dependent variable is trust with a percentage of 63.3%.
4.6. Testing Hypothesis
4.6.1. T-Test
T-Test is conducted by researcher to measure the influence of independent variable toward dependent variable individually (partially). The researcher use SPSS Software to process the data, therefore the T-Test is based on the significant (sig) value of each one of the independent variables.
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Table 4.8: T-Test
Source: Primary data, Processed with SPSS v.20
From the table 4.8 above, it can be seen the significance of each independent variables toward dependent variable with level significance 0f 0.05.
a. Analysis of Trust (X1) towards Customer Satisfaction (Y)
The result of SPSS calculation shows tcount of trust is 5.91. It means that the tcount is bigger than the ttable where the ttable is 1.6607. Furthermore, the the tsignificance is 0.00 and it is lower than the level significance of 0.05. Hence, partially trust has influence towards customer satisfaction, meaning that the researcher rejects Ho1 and accept Ha1.
b. Analysis of Company Reputation (X2) towards Customer Satisfaction (Y)
The result of SPSS calculation shows tcount of company reputation is 4.094. It means that the tcount is bigger than the ttable where the ttable is 1.6607. Furthermore, the the tsignificance is 0.00 and it is lower than the level significance of 0.05. Hence, partially company reputation has influence towards customer satisfaction, meaning that the researcher rejects Ho2 and accept Ha2.
c. Analysis of Website Quality (X3) towards Customer Satisfaction (Y)
The result of SPSS calculation shows t of trust is 3.72. It means that the tcount is bigger than the ttable where the ttable is 1.6607. Furthermore, the the tsignificance is 0.00 and it is lower than the level significance of 0.05. Hence, partially website quality has influence towards customer satisfaction, meaning that the researcher rejects Ho3 and accept Ha3.
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4.6.2. F-Test
The F-Test is used by the researcher to determine whether all independent variables have collective influence on dependent variables or not.
Table 4.9: ANOVA F-Test
Source: Primary data, Processed with SPSS v.20
From the simultaneously testing, researcher got Fcount with value 84.136 whereas Ftable with significant value of 0.05 is 2.69. It means that the Fcount is bigger than the Ftable with probability is 0.00 which is also less than the significant value of 0.05. Hence, the researcher may rejected the Ho4 and accept the Ha4 meaning that all independent variables which consist of trust (X1), company reputation (X2) and website quality (X3) simultaneously has significant influence towards customer satisfaction for online buying behavior in Jabodetabek area.
4.6.3. Coefficient of Correlation (R) and Coefficient of Determination (R2)
Table 4.10: Coefficient of Correlation (R) and Coefficient of Determination (R2)
Source: Primary data, Processed with SPSS v.20
The R square is also called as coefficient determination. The value of the R Square is 0.55 which is higher than the significant value of 0.05 meaning that the correlation between the dependent variable and the dependent variables is strong. While the adjusted R square is 0.545; it means that 54.5% of changes in the
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dependent variables (customer satisfaction) are influenced by independent variables (trust, company reputation and website quality) in this research. Whereas the other 45.5% are influenced by other factors outside the independent variables in this research.
4.7. Interpretation of Results
4.7.1. The Influence of Trust towards Customer Satisfaction
Based on table 4.8, the Probability value of X1 (trust) is 0.00 which is lower the significant value of 0.05 which means that trust has a significant influence towards customers satisfaction of online buying behavior in Jabodetabek area. This result is consistent with a study conducted by Zaine (2015) that stated trust does influence the intention to repurchase online. And according to the research done by Gul (2014) to studied the Relationship between Reputation, Customer Satisfaction, Trust, and Loyalty also resulted that trust has a 64% influence towards customer satisfaction.
4.7.2. The Influence of Company Reputation towards Customer Satisfaction
Based on table 4.8, the Probability value of X2 (company reputation) is 0.00 which is lower the significant value of 0.05 which means that company reputation has a significant influence towards customers satisfaction of online buying behavior in Jabodetabek area. This result explain why Tokopedia is on the top list of the most popular and visited e-commerce website as shown in table 4.1 since according to report from Appnie, Tokopedia app is used most often than the other competitors such as Lazada, Bukalapak, Blibli, Elevenia and Mataharimall.com (Tempo, 2016). This results is consistent with a study conducted by Pool, Pool and Taghipourian (2016) that generated result of corporate reputation does have positive impact on customer satisfaction. Because of the importance of the company reputation then it is become important for the company to maintain their reputation by being consistent with the firm’s products or service quality.
4.7.3. The Influence of Website quality towards Customer Satisfaction
Based on table 4.8, the Probability value of X3 (website quality) is 0.00 which is lower the significant value of 0.05 which means that company reputation has a
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significant influence towards customers satisfaction of online buying behavior in Jabodetabek area. This result is consistent with a research conducted by Shahzad (2015) that claimed a visually appealing website has significant influence towards consumers’ online shopping behavior. He also stated that website design is the most influential factor which influences consumers’ online shopping behavior.
4.7.4. The Influence of Trust, Company Reputation and Website Quality towards Customer Satisfaction
Based on table 4.9, the Probability value is 0.00 which is lower the significant value of 0.05 which means that all three independent variables of trust, company reputation and website quality simultaneously has significant influence towards customer satisfaction for online buying behavior in Jabodetabek area. This result is in line with a statement that customer satisfaction is generated from a good quality of a service which achieved when a service provider satisfies or exceeds their consumers expected service (ANH, 2015). A good quality of service is obviously involve the website quality that is provided by the company. Furthermore, a service quality also led to the company reputation and trust from the customers eventually.
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CHAPTER V CONCLUSIONS AND RECOMMENDATIONS
5.1. Conclusion
The aims of this study is to find any significant influence of trust, company reputation and website quality towards customer’s satisfaction for online buying in Jabodetabek Area partially and simultaneously. For that, the researcher has conducted a statistical testing such as classical data assumptions and multiple linear regression. The tool used in this research is questionnaire that has been spread to 209 respondents to acquire the primary data. As shown from the classical data assumptions, the data gathered from the questionnaire is normally distributed, proved no multicollinearity, and no heteroscedasity. All of the data then already been processed through multiple regression. Hence, according to the result on chapter IV, the researcher conclusion would be drawn as follow:
1. Trust does have significant influence towards customer satisfaction for online buying in Jabodetabek Area. It is because trust is claimed to be one of the significant factors that influence the customer behavior. Trust is making the customer reassured to do the transaction.
2. Company Reputation does have significant influence towards customer satisfaction for online buying in Jabodetabek Area. It is because a good reputation will reflects the superior quality and reliability of the company.
3. Website Quality does have significant influence towards customer satisfaction for online buying in Jabodetabek Area. It is considering that online shopping does not provide a direct interactions with the. Therefore the customers’ judgment are only based on the information that present by the website.
4. There is simultaneous significant influence of trust, website quality and company reputation towards customer’s satisfaction for online buying in Jabodetabek Area. The test resulted that 54.5% of changes in the customer satisfaction for online buying in Jabodetabek area are influenced by trust, company reputation and website quality as mentioned in this research.
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5.2. Recommendation
5.2.1. E-Commerce Company
According to the result of this research, all three of the variables which are trust, website quality and company reputation all have a significant influence towards customer satisfaction for online buying in Jabodetabek Area. Therefore, all e-commerce company in Indonesia should maintain their services to maintain the customer trust. The company should also continue to improve their image so that the company reputation will be able to enhance their customer satisfaction. Furthermore, the website quality should also keep up with the current technology so that it will provide the easiest and fastest access for the customer to buy from the website.
5.2.2. Future Research
The others researcher should do research that include different variables from this study such as customer buying intention, customer repurchase intention, security, privacy, demography, and etc. If the others study still want to do research regarding factors affecting customer satisfaction then the others researcher should choose other variables beside trust, website quality and company reputation which are not available in this research. The other researcher may also choose different focus regarding the online buying behavior since in this study the researcher are only focus on the customer satisfaction. It is also better to wider the population and the respondents to get a more accurate result in order to determine the factors affecting the customer satisfaction for online buying in Jabodetabek Area.
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REFERENCES
Book
Cooper, D., & Schindler, P. (2013). Business Research Methods: 12th Edition. McGraw-Hill Higher Education.

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