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EFFECT OF PRODUCT, DISTRIBUTION AND SERVICE QUALITY ON CUSTOMER

LOYALTY THROUGH CUSTOMER SATISFACTION AT INDONESIAN

MARKETPLACE

Primadi Andri

, Farida Jasfar

, Robert Kristaung

Faculty of Economics and Business, Trisakti University, Indonesia

1 2 3

Andriprimadi@gmail.com,

[email protected],

[email protected]

KEYWORDS

Product Quality,

Distribution, Service

Quality, Customer Loyalty

and Customer Satisfaction

ARTICLE INFO

Accepted:

February, 3rd 2022

Revised:

February, 12th 2022

Approved:

February, 13th 2022

ABSTRACT

Since in online business must involve a reliable marketing strategy to be able to compete in

cyberspace to satisfie and growing customers’ loyalty when the transaction is done without

meeting face to face with prospective customers or see the product in person. The

objectives of this research are (1) to analyze the relationship of positive product quality,

distribution, service quality, on customer loyalty. And the relationship of positive product

quality, distribution and service quality on customer loyalty through customer satisfaction

simultaneously; (2) to identify the factors that influence customers to choose a marketplace

in Indonesia; (3) to analyze the needs and expectations of early consumers. This research

was conducted using a survey method. Data were collected using a questionnaire tool with

Structural Equation Modeling (SEM) analysis. The sampling technique used the purposive

sampling method by taking 400 respondents from the top five marketplace customers in

Indonesia. The results indicate that the number of visits and online transactions in the top

five marketplaces in Indonesia has changed from previous research data. There is no

significant effect of product quality on customer loyalty. However, after re-testing by

removing outlier data, there is a significant positive effect of product quality on loyal

customers. There is a significant effect of product quality and service quality on customer

satisfaction. There is no significant effect of distribution on customer loyalty and customer

satisfaction. In addition, there is a significant effect of service quality and customer

satisfaction on customer loyalty.

INTRODUCTION

Along with the times and the rapid advancement of information technology, economic growth in a country

will be reflected by the number of retail businesses that are opened, of course Indonesia's economic growth is

also driven by the development of the retail sector. In doing business online and offline both require careful

planning and marketing management, it is an important thing needed in online business. Since it must involve a

reliable marketing strategy to be able to compete in cyberspace to satisfie and growing customers’ loyalty when

the transaction is done without meeting face to face with prospective customers or see the product in person.

Customer satisfaction and loyalty are influenced by many factors, among the important factors are product

quality and service quality and one of the strengths of this online business is a reliable distribution strategy.

Therefore, the novelty of this research is on the distribution discussion. In this digital era, online trading

transactions (e-commerce) in Indonesia has a bright future, the value of transactions continues to increase, based

on the results of a survey from APJII (Association of Indonesian Internet Service Providers) in 2017, that the

number of internet users in Indonesia rose to 73.7% of the population or equivalent 196.7 million users, almost

surpassing 200 million users of the Indonesian population of 266.9 million.

Online trading (e-commerce) in Indonesia, the most widely used social media platform for online trading

in Indonesia is through the available marketplace (intermediary between sellers and buyers in cyberspace or can

be said department store online), marketplace competition is getting tougher, new players and have long been

competing for Indonesian consumers. The top five marketplaces below are all included in the pure

marketplace type because their market reach is more numerous and varied as follows:

Table 1. Marketplace in Indonesia in 2019

No.

Marketplace

Number of visits per month

Tokopedia

137,200,900

Bukalapak

115,256,600

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e-ISSN: 2797-6068 and p-ISSN: 2777-0915

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Shopee

74,995,300

Lazada

52,044,500

Blibli

32,597,200

According to Kolter & Keller (2016), a company must work hard to make new strategic policies in selling

their products and services in relation to facing intense competition with competitors who can provide greater

value to customers. Today's customers perceive that the difference between one product and another is only

slight, so they are less loyal to a brand. They also become more sensitive to price and quality to their search for

the value of an item. Customer satisfaction is the main thing that is maintained in the marketing strategy, in

order to maintain customer trust and retain new and old customers. Therefore, marketers must be smart face

competition, business development and to gain company profits by developing its products, setting prices, stage

promotion and distribute product by effective. Company oriented to provide the highest satisfaction for

consumers, will try to establish strategy marketing which in accordance with needs and desire consumers, in

order to create customer loyalty.

The objectives of this research are (1) to analyze the relationship of positive product quality, distribution,

service quality, on customer loyalty. And the relationship of positive product quality, distribution and service

quality on customer loyalty through customer satisfaction simultaneously; (2) to identify the factors that

influence customers to choose a marketplace in Indonesia; (3) to analyze the needs and expectations of early

consumers

A. Literature Review and Formulation of Hypotheses Product Quality (PQ)

Product quality is a characteristic of a product or service that supports its ability to satisfy customer needs

(Armstrong et al., 2014). That product quality is a direct description of a productsuch as Performance ,

Reliability, ease of use, Aesthetics and so on (Tjiptono, 2019). Product Quality Dimensions has a strong

relevance to the competitive advantage of a company. Product quality which is reflected through product

Performance shows the extent to which the product provides optimal functions for consumers. Meanwhile, the

dimensions of product quality according to David Garvin (in Tjiptono 2019), suggests that product quality has

several dimensions, including:

1. Performance, is the operating characteristics and the core product purchased. For example speed, ease and

convenience in use.

2. Durability, which means Durability shows the age of the product, namely the amount of use of a product

before the product is replaced or damaged. The longer the Durability is of course the more durable, durable

products will be perceived as having higher quality than products that run out quickly or are quickly

replaced, Durability , is related to how long the product can be used continuously. This dimension includes

the technical life and economic life of the product.

3. Conformance to specifications, namely conformity, namely the extent to which the design and operating

characteristics meet predetermined standards. For example, quality control and design, operational

characteristics standard is the conformity of product Performance with stated standards of a product. This is

a kind of “promise” that the product must fulfill. Products that have the quality of these dimensions are in

accordance with the standards,

4. Features are additional characteristics or characteristics that complement the basic benefits of a product.

Features are optional or optional for consumers. Features can improve product quality if competitors do not

have these Features, additional characteristics or Features, are secondary or complementary characteristics.

5. Reliability which is less likely to be damaged or fail to use. For example, quality control and design,

standard operating characteristics conformance to specifications,

6. Aesthetics is the attraction of products to the five senses, for example physical form, artistic models or

designs, colors and so on.

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7. Perceived quality is the consumer's perception of the overall quality or superiority of a product. Usually due

to a lack of knowledge of the buyer about the attributes or characteristics of the product to be purchased, the

buyer perceives the quality from the aspect of price, brand name, advertising, company reputation, and the

country of manufacture. corporate responsibility towards it.

8. Serviceability, namely product quality is determined on the basis of Serviceability, including speed,

competence, convenience, easy repair and satisfactory handling of complaints. Products that can be repaired

are of course higher quality than products that are not or difficult to repair.

Product quality is closely related to customer satisfaction. Products in a broader sense can be in the form of

goods or services. Quality gives a special impetus to both parties to forge a bond mutually beneficial

relationship between customers and providers of products or services in the long term. The better product

quality will further increase satisfaction customer. The product quality perspective is a consumer's perception of

the overall quality or superiority of a product or service with the intention expected or desired by consumers

stated by Tjiptono & Chandra (2011).

Product quality is a hallmark of the company where customers will feel loyal to buy again, when satisfied

when making a purchase or consuming it. When a customer is satisfied with the product he bought, the customer

will loyal and will make repeat purchases. According to Sangadji (2013), there are six indicators that can be

used to measure loyalty, namely: Purchase repeat, Consumption habits brand, Great love for brand, Decree on

brand, The belief that a particular brand is a brand that best, Recommend brands to people other. According to

Bastos & Gallego (2008), it shows that product quality and service quality are important things that can

encourage customer satisfaction and loyalty. And in the research of Lestari & Yulianto (2018), it shows that

the product quality variable has a significant effect on customer satisfaction and customer loyalty.

H1: Significant positive effect of Product Quality on Customer Loyalty.

H2: Significant positive effect of Product Quality on Customer Satisfaction.

B. Distribution (DS)

Distribution is the division or delivery to several people or to several places. Distribution can also be

interpreted as the distribution of goods for daily needs (especially in times of emergency) by the government to

civil servants, residents, and so on. Based on the above reference, distribution can be understood as the process

of distributing goods or services to other parties (Language Development and Fostering Agency, 2016). In

distribution activities, it is necessary to have facilities and objectives so that distribution activities can run and

be carried out properly. Distribution can also be interpreted as a way of determining the methods and paths that

will be used in distributing products to the market or to consumers (Kasmir, 2006). Distribution activities are

one of the most important marketing functions carried out in marketing, namely to develop and expand the flow

of goods or services from producers to consumers' hands in a predetermined amount and time.

According to the journal Situmeang & Yeohan (2020), "The influence of product quality, distribution

channels and customer satisfaction on customer loyalty". In this study concluded that partially and

simultaneously product quality, distribution channels and customer satisfaction have a positive and significant

effect on customer loyalty. According to Iriani & Yulianto (2010), in understanding customer perception, it can

be classified according to the dimensions of the Physical Distribution Service Quality (PDSQ). The dimensions

include: Timeliness, Availability, Condition.

H3 : Significant positive effect Distribution to Customer Satisfaction. H4 : Significant positive effect

Distribution to Customer Loyalty.

C. Service Quality (SQ)

Quality is one of the keys in winning the competition with the market. Meanwhile, service quality is a

measure of the level of service quality that is assumed to be related to price developments (Roederick &

Gregory, 2009) According to Lewis & Booms, as quoted by Tjiptono & Chandra (2011) service quality as a

measure of how good the level of service is provided as well as according to customer expectations. Service

quality can be realized through fulfilling customer needs and desires as well as the accuracy of delivery to

balance customer expectations. There are two main factors that affect service quality according to Parasuraman

quoted by Tjiptono & Chandra (2011), namely the expected service and the perceived service. Based on the

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opinions of the experts above, it can be concluded that service quality is a level of measurement of the expected

superiority of service quality associated with price developments or the level of comparison of consumer service

quality expectations with company Performance perceived by consumers to be the controller of price

developments. Dimensions of Service Quality According to Kolter & Keller (2016), there are five main

indicators of service quality, namely: Tangibility; Appearance of physical facilities, equipment, employees and

communication materials. Reliability; Is the ability to carry out the promised service convincingly and

accurately. Responsiveness; Willingness to help customers and provide services quickly. Assurance; Knowledge

and courtesy of employees and their ability to foster trust and confidence. Empathy; Willingness to give deep

and special attention to each customer.

The statement from Kotler & Keller (2009), also confirms that customers will be very satisfied, if they get

service that exceeds their expectations. If what is obtained exceeds what was previously expected, then the

customer will feel very satisfied, but on the contrary, if what is obtained is less than previous expectations, the

customer will be disappointed as a form of dissatisfaction. According to the journal of Razavi & Safari (2012)

entitled "Relationships among Service Quality, Customer Satisfaction and Customer Perceived Value: Evidence

from Iran's Software Industry", shows that customer satisfaction should be the ultimate goal of all companies.

Given the empirical evidence supporting this view, arguing that customer satisfaction reduces a positive process,

it is added that the relationship between customer satisfaction and service attributes has proven difficult to apply

but it can be emphasized to companies that the benefits of service quality are highly dependent on customer

satisfaction. consumer

H5: Significant positive effect Service Quality towards Customer Satisfaction. H6: Significant positive effect

Service Quality towards Customer Loyalty.

D. Customer Loyalty (CL)

The definition of customer loyalty literally means loyal and Bose and Rao (2011) as quote by Khan (2013)

discovered that in the business world, loyalty is defined as a customer's commitment to conduct business with a

specific organization, which influences recurring purchases of that organization's goods and services. It also

leads to friends and associates endorsing the goods and services. In general, loyalty can be interpreted as a

person's loyalty to a particular product or service. Loyalty is something that arises without coercion but arises

from self-awareness. Loyalty, namely the degree to which a consumer shows repeat purchase behavior from a

service provider, has a positive disposition or tendency towards service providers, and only considers using this

service provider when the need arises to use this service (Gramer & Brown, 2006). From the definition

presented by Gramer and Brown, a loyal customer is not only a buyer who makes repeat purchases, but also

maintains a positive attitude towards service providers. Based on the definition presented by Gramer and Brown,

a loyal customer is not only a buyer who makes repeat purchases, but also maintains a positive attitude towards

service providers. Customer loyalty is a reliable measure to predict sales growth and consistent buying behavior

(Griffin, 2005) .

According to Kolter & Keller (2016), customer loyalty is a Performance that can be offered by one person

to another. This Performance can be an intangible action and does not result in the ownership of any goods and

against anyone. The dimensions are as follows: Repeat Purchase, Become a Loyal Customer to buy back or

more. Satisfied consumers tend to be loyal or loyal to the products they consume and will have a tendency to

repurchase from the same manufacturer. Retention, Giving good comments. Referrals Referring to others is a

factor that encourages positive word of mouth communication. This can be in the form of recommendations to

other potential customers and saying good things about the product and the company that provides the product.

Based on the above definition, it can be concluded that customer loyalty is the loyalty of parties who use

products or services both for their own purposes and as intermediaries for the needs of other parties to continue

to subscribe to a company in the long term, by buying and using service products repeatedly and voluntarily

recommend the company's products and services to colleagues. The indicators are the existence of repeat

purchases, competitor rejection, not being influenced by the attractiveness of other goods and recommending to

others.

E. Customer Satisfaction (CS)

According to (Tjiptono & Chandra, 2011a) The word satisfaction comes from the Latin word " satis "

which means enough or enough and “farece” which means to do or do. Satisfactory products or services are

products or services that can provide something those consumers are looking for to a sufficient level.

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Satisfaction is the result of the consumer's assessment that the product or service has provided a level of

enjoyment where this level of fulfillment can be more or less.

Definition of Satisfaction satisfaction is a person's feeling about pleasure or comparing product results

related to customer expectations (Mardikawati & Farida, 2013). Still in Farida's opinion, the creation of

customer satisfaction can provide several benefits, including the relationship between the company and its

customers to be harmonious, providing a good basis for repeat purchases, creating loyalty, and forming a

recommendation from word of mouth communication that is profitable for the company.

According to Kolter & Keller (2016) Satisfaction is a person's feelings of pleasure or disappointment

resulting from comparing the product 's perceived Performance (Or results) with the expected expectations. If

Performance is far from expectations, then consumers are not satisfied. If Performance matches expectations,

consumers will be satisfied. If Performance exceeds expectations, the customers will be very satisfied or happy.

From this definition, it can be said that satisfaction is a feeling such as a person's pleasure or disappointment

with a product offered with the expected expectations. Dimensions of Customer Satisfaction are things that can

affect customer satisfaction, the size or dimensions of customer satisfaction those are: Product quality, Service

quality, Product price, Product Access, Promotion, advertise or promote products.

F. Relationship between Customer Loyalty and Customer Satisfaction

Cronin and Taylor (in Tjiptono & Chandra, 2011a) one of the possible relationships that are widely agreed

upon is that satisfaction helps consumers in revising their perceptions of service quality. Hoofman and Bateson

(in Tjiptono & Chandra, 2011a) wrote the basic thinking about the relationship between service/product quality

and customer satisfaction, including: If the consumer has no previous experience with a company, his perception

of the service quality of the company will be based on his expectations. Subsequent service encounters with the

company will cause consumers to enter the disconfirmation process and revise their perceptions of service

quality. Each additional interaction with the company will strengthen or otherwise change the customer's

perception of service quality. Perceptions of service quality that have been revised modify consumer buying

interest to changes in the future.

H7: Significant positive effect Customer Satisfaction towards Customer Loyalty.

G. Research Hypothesis

The submission of hypotheses in this study is based on a conceptual framework that has been built

previously. So from Figure 1 above, seven (7) hypotheses will be built. Following are the hypotheses proposed

by this research:

H1: Significant positive effect of Product Quality on Customer Loyalty. H2: Significant positive effect of

Product Quality on Customer Satisfaction. H3 : Significant positive effect Distribution to Customer Satisfaction.

H4 : Significant positive effect Distribution to Customer Loyalty.

H5: Significant positive effect Service Quality towards Customer Satisfaction. H6: Significant positive effect

Service Quality towards Customer Loyalty.

H7: Significant positive effect Customer Satisfaction towards Customer Loyalty.

METHOD RESEARCH

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This study uses an economics approach, especially from management science with a focus on the field of

management, especially those related to product quality, distribution, service quality to customer satisfaction

and customer loyalty. The verification analysis method is used to test the effect of the independent variable on

the dependent variable, namely: the effect of product quality, distribution and service quality on customer

loyalty through customer satisfaction in the Indonesian marketplace.

Research Population

One of the most widely used platforms for online trading in Indonesia is the marketplace (intermediary

between sellers and buyers in cyberspace or can be said to be an online department store). The object of research

is the users of online sales pure, namely through the marketplace in Indonesia. While the time horizon of this

research is cross sectional, namely the research method by studying objects in a certain period of time or not

continuously in the long term according to Malhotra, Nunan, & Birks (2017).

Research Sample

This research will use a questionnaire instrument by means of filling out or distributing it using a google

form. as a data collection tool for this research material. Sampling is the process of selecting a sufficient number

of elements of the population so that research on the sample and understanding of its properties or

characteristics will enable us to generalize these traits or characteristics to population elements. The sample is

part of the population that has certain characteristics or conditions to be studied. The sample size was

determined by taking into account the analytical technique used in hypothesis testing using the Structural

Equation Model (SEM). Sampling in this study using the Slovin formula with a normal approach is 95%

confidence level and 5% error tolerance. By applying a mathematical approach, the Slovin formula can be

described as follows:

Wℎ

𝑒𝑟𝑒

𝑛

&=&

𝑠𝑎𝑚𝑝𝑙𝑒

𝑁

& =&

𝑝𝑜𝑝𝑢𝑙𝑎𝑡

𝑜𝑛

𝑒

& =&

𝑝𝑟𝑒𝑐

𝑠

𝑜𝑛

𝑙𝑒𝑣𝑒𝑙

Operational Definition Variables and Measurement of Variables

This study involved five variables consisting of two dependent variables and three independent variables.

The dependent variables are (1) customer satisfaction and (2) customer loyalty while the independent variables

are: (1) product quality (2) distribution, and (3) service quality.

Table 2. Variables and Indicators

Variables and

Definitions

Dimension

Indicator

Product Quality = X1

Is a condition of an

item based on an

assessment of its

suitability with

predetermined

measuring standards,

the more according to

the standards set, the

more quality the

product will be

judged. (David Garvin

in Tjiptono's book,

2019)

1. Performance

Describe the actual situation. For example:

Convenience, convenience, speed of use.

Likert scale: 1 to

1 = Strongly

Disagree (STS) 2

= Disagree

(TS) 3 =

Neutral (N)

4 = Agree (S)

5 = Strongly

Agree (SS)

2. Durability

Durability that shows the age of the product.

For example: the length of the product before it was damaged.

1. Conformance to specifications

Features

Conformity with specifications with established designs and

standards.

For example: Conformity to the design and standards stated in

the product.

Additional characteristics that complement the basic benefits of a

product.

For example: Additional Features or privileges.

𝑁

𝑛" =

("𝑁."𝑒"2)"+"1"

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5. Reliability

Reliability, which is a small possibility that it will be damaged

or fail to use.

For example: Quality control and standard

operating characteristics

according to specifications.

6. Aesthetics and Perceived quality

Aesthetics or product appeal to the five senses.

For example: Physical form, model or

design and color.

7. Perceived quality

Consumer perceptions of the overall quality or superiority of a

product.

For example: the image and reputation

of the product as well as the company's responsibility for the

product.

8. Serviceability

Product repairability.

For example: The product can be repaired.

Table 3. Variables and Indicators

Variables and Definitions

Dimens

ion

Indicator

ale

Shipping (Distribution) = X1 Is a

process of distributing goods or

services to other parties (Language

Development and Development

Agency, 2016)

Is a marketing activity that seeks to

facilitate and facilitate the delivery

of goods or services from

producers to

customers or users (Fandi Tjiptono,

2008).

1. Timeliness

Related to aspects

Likert Scale: 1

to 5 1 =

Strongly

Disagree

(STS)

2 = Disagree (TS)

3 = Neutral (N) 4 =

Agree (S)

5 = Strongly Agree

(SS)

on time, starting from the procedure

ordering to placing the ordered goods.

2. Availability

Regarding the availability aspects, starting from the

information needed by the customer before using

the service to the

submission of billing documents.

3. Condition

Which relates to aspects of the overall condition of

the goods, including if there are services that follow

it.

Service Quality = X3

Is a customer's commitment to

repurchase or make repeated

purchases of products or services

that are preferred over and over

again or in the future to remain

loyal for a long time

1. Tangibility

Appearance of physical facilities, equipment,

employees and communication materials.

Likert Scale: 1

to 5 1 =

Strongly

Disagree (STS)

2 = Disagree (TS)

3 = Neutral (N) 4 =

Agree (S)

5 = Strongly Agree

(SS)

2. Reliability

The ability to carry out the promised service

convincingly and accurately.

Responsiveness

Willingness to help customers and provide services

quickly.

(Kotler, and Keller, 2016)

4. Assurance

Knowledge and courtesy of employees as well as

their ability to foster trust and

confidence.

5. Empathy

Willingness to give deep and special

attention to each customer.

Customer Loyalty = Y

Is a customer's commitment to

repurchase or make repeated

purchases of products or services

that are preferred over and over

again or in the future and remain

loyal for a long

time ( Kotler and Keller, 2016)

1. Repeat

Purchase

Become a Loyal Customer Buy back or

Likert Scale: 1 to

5 1 = Strongly

Disagree (STS) 2

= Disagree (TS) 3

= Neutral (N)

4 = Agree (S)

5 = Strongly Agree

(SS)

2. Retention

Give good comments.

3. Referrals

Referring to others

Table 4. Variables and Indicators

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Variables and Definitions

Dimension

Indicator

Scale

Customer Satisfaction = Z

Is a person's perception of

pleasure or disappointment

that comes from a

comparison between his

impression of the

Performance or a product

and his expectations ( Kotler

and Keller, 2016).

1. Product Quality

The quality of the product ,

whether

the goods or services produced.

Likert scale: 1 to 5

1 = Strongly Disagree(STS)

2 = Disagree (TS) 3 =

Neutral (N) 4 = Agree (S)

5 = Strongly Agree (SS)

2. Service Quality

Company service to customers.

3. Product Price

The price of the product

ordered,

affordable and appropriate.

4. Product Access

Products can be

purchased and

obtained in an easy way.

5. Promotion

Advertise or promote a product.

RESULT AND DISCUSSION

After the stages of testing this research on the suitability of the model and the normality of the data, the next

step is testing the proposed research hypothesis. The following is the result of the hypothesis using the

Structural Equation Modeling method as follows:

Table 5. Hypothesis Testing Results Output From SEM AMOS

Estimate

Tstat

Prob

Decision



-0.182

0.102

-1,789

0.074

H1 rejected



0.481

0.075

6.448

0.000

H2 accepted



-0.099

0.094

-1.054

0.292

H3 rejected



-0.079

0.104

-0.755

0.450

H4 rejected



0.849

0.121

6,992

0.000

H5 accepted



0.408

0.192

2.127

0.033

H6 accepted



0.776

0.143

5.407

0.000

H7 accepted

Source: Hypothesis Test Results with regression using SEM AMOS Remarks: Significance Level ***1%; **5% and *10%

Data Normality Test and Multivariate Outlier

Outlier problems, the data normality test is carried out to see whether the research model has outliers or

not. Testing the normality and multicollinearity of data is important and is a requirement for managing data

using the maximum likelihood estimation technique. The fulfillment of normality and multicollinearity of the

data can avoid inefficiency of the results. Outliers are observations that appear with extreme values both

univariate and mu z ltivariate. Outliers appear in the range of values that exist, but when combined with other

variables, the combination becomes unusual. Testing the normality of the distribution and detecting the

presence or absence of outliers can be done quickly via AMOS. Detecting outlier data in table numbers that

show how far a data is from a certain center point with the mahalannobis method. The method used to

determine whether the data is normally distributed or not is using the critical ratio test of skewness and

curtosis with the following conditions:

1. If the critical ratio value obtained exceeds the range of -2.58 to +2.58 then the data is not normally

distributed.

2. If the critical ratio value obtained exceeds the range of -2.58 to +2.58 then the data is normally

distributed.

H result test quality data show whole indicator which measure variable in study this valid and reliable, the

following results are obtained

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Results Test Goodness of fit, Graduated on criteria

RMR (0.026), NFI (0.912), TLI (0.927),

CFI (0.936) and RMSEA (0.077)

Results Test Goodness of Fit, pass on criteria RMR (0.015), NFI (0.930), RFI

(0.920), TLI (0.945),CFI (0.952) and

RMSEA (0.079)

esults Test Hypothesis

PQ→CL Negative Significant* (H1 rejected)

PQ→CS Positive Significant*** (H2 received)

DS→CS Negative Not significant (H3 rejected)

DS→CL Negative Not Significant (H4 rejected)

SQ → CS Significantly Positive*** (H5

accepted) SQ → CL Positive Significant** (H6

received) CS → CL Positive Significant*** (H7

accepted)

Results Test Hypothesis

PQ→CL Negative Significant*** (H1 received)

PQ→CS Significantly Positive*** (H2 accepted)

DS→ CS Positive Not Significant (H3 rejected)

DS → CL Positive Not Significant (H4 rejected)

SQ → CS Significantly Positive*** (H5 accepted)

SQ → CL Positive Significant** (H6 received)

CS → CL Positive Significant*** (H7 accepted)

Description: Level Significance ***1%; **5% and *10%

Figure 2. AMOS SEM Processing (After Outlier Data Removal)

Discussion

Product quality has a significant positive effect on customer satisfaction on in the Indonesian

Marketplace the results of the AMOS SEM data processing output. Proven in theory Product quality has a

significant positive influence on customer satisfaction on. Distribution t has no significant effect on customer

satisfaction on and customer loyalty in the Indonesian Marketplace the results of the AMOS SEM data

processing output and does not prove in accordance with the hypothesis proposed in the study of conformity

with the theory behind this research. This shows that although the correlation test has been carried out, there is

a strong relationship between the distribution variables to customer satisfaction on and customer loyalty, but

after the SEM test there is not necessarily a significant effect between these variables.

Service quality has a significant positive effect on customer satisfaction and customer loyalty in the

Indonesian Marketplace the results of the AMOS SEM data processing output and prove in accordance with

the hypothesis proposed in this study. Customer satisfaction there is a significant positive effect on customer

loyalty in the Indonesian Marketplace the results of the AMOS SEM data processing output and prove in

accordance with the hypothesis proposed in this study.

There are facts found in this study, that the number of visits and online transactions in The top five

marketplaces in Indonesia experienced changes in the number of visits and transactions from the data for the

top five marketplaces in Indonesia released by www.niagahoster.co.id in 2019 in the order of Tokopedia,

Bukalapak, Shopee, Lazada and finally Blibli but this study shows the results of the order that turned into the

most visits: Shopee (38.5%), Tokopedia (33.3%), Lazada (13 0.0%), Blibli (7.8%) and Bukalapak (7.4%).

This shows that promotions that are carried out on a large scale continuously will have an effect on increasing

the level of sales.

CONCLUSION

Based on the results of research and research discussions in the previous chapter, it was found that

online transactions are the top five marketplaces in Indonesia after processing the data, the following

conclusions can be drawn Product quality has no significant effect on customer loyalty in the Indonesian

Marketplace as a result of the AMOS SEM data processing output, but after re- testing by removing outlier

data, there is a significant positive effect of product quality on loyal customers.

The results indicate that the number of visits and online transactions in the top five marketplaces in

Indonesia has changed from previous research data. There is no significant effect of product quality on

customer loyalty. However, after re-testing by removing outlier data, there is a significant positive effect of

product quality on loyal customers. There is a significant effect of product quality and service quality on

customer satisfaction. There is no significant effect of distribution on customer loyalty and customer

satisfaction. In addition, there is a significant effect of service quality and customer satisfaction on customer

loyalty.

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