The Effect of E-commerce Quality on Consumers Satisfaction and Loyalty: Case Study of Small and Medium Enterprises

Abstract

SMEs in Indonesia contribute significantly to economic development and local employment. In order to maintain and to enhance this contribution, SMEs must adopt e-commerce and use it to improve their performance. This study aims to investigate the effect of service quality, website quality, and after-sales service on customer satisfaction and loyalty. This study uses a survey method with 237 SME owners as respondents; while path analysis is used in the data processing. This study concludes that service quality, website quality, and after-sales service simultaneously have a positive and significant effect on customer satisfaction by 21.6 percent. While service quality, after-sales service, and consumer satisfaction simultaneously have a positive and significant effect on consumer loyalty by 23.8 percent. Little research has focused on studying the satisfaction and loyalty aspects of Indonesian SME consumers through e-commerce channels. Therefore, this study provides valuable insights for SME owners regarding essential factors that can strengthen consumer satisfaction and loyalty, which in turn will ensure long-term profit.