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Does COVID-19 Affect Online Experience Towards Repurchase Intention? An Empirical Study in Indonesia

  • SUDARYANTO, Sudaryanto (Management Department, Faculty of Economics and Business, University of Jember) ;
  • SUBAGIO, Ari (Faculty of Economics and Business, University of Jember) ;
  • MELIANA, Meliana (Faculty of Economics and Business, University of Jember)
  • Received : 2021.03.05
  • Accepted : 2021.05.15
  • Published : 2021.06.30
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Abstract

Compared to shopping in the pre-pandemic times, online shoppers have boosted their online buying behaviors since the COVID-19 pandemic began. The study examines the role of the online shopping experience as a moderator impacting the influence of service quality and satisfaction on repurchase intention in East Java, Indonesia, in the pandemic COVID-19 era. The method of this study is explanatory research with an online survey. The primary data collected from 229 samples in East Java, Indonesia, did shopping using Shopee Platform during the last six months of the study. Responses were enumerated and analyzed using descriptive statistical analysis, followed by Moderated Regression Analysis (MRA). The descriptive statistics show that, as in East Java, online shoppers are dominated by women below 30 years old. MRA result explains the e-service quality affected repurchase intention, and satisfaction also affected repurchase intention before being moderated by the online shopping experience in East Java, Indonesia, in the pandemic COVID-19 era. While service quality and satisfaction were affected by the moderator, the moderator did not significantly affect repurchase intention in the pandemic COVID-19 era. Further research must pay attention to similar research in a post-pandemic era.

Keywords

1. Introduction

The COVID-19 pandemic, also known as the coronavirus pandemic, is an ongoing global pandemic of coronavirus disease 2019 caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The virus was first identified in December 2019 in Wuhan, China. The World Health Organization declared a Public Health Emergency of International Concern regarding COVID-19 on 30 January 2020 and later declared a pandemic on 11 March 2020 (Health Ministry, 2020). The emergence and rapid spread of coronavirus disease 2019, caused by severe acute respiratory syndrome coronavirus-2, a potentially fatal disease, is swiftly leading to public health crises worldwide. Even though there are other fatal diseases such as Ebola, H1N1, and H5N1, COVID-19 was declared a pandemic by the World Health Organization. There are too many aspects that affect this pandemic, one of them as an online business.

The COVID-19 outbreak started to hit the Indonesian nation since the stipulation of COVID-19 becomes a disaster nationally on March 15, 2020. The COVID-19 outbreak that has not subsided has had an impact on consumer behavior in Indonesia. The prolonged pandemic situation has made people increasingly pessimistic and unsure when the pandemic will end. Even so, people feel less worried about the current conditions of the pandemic. However, at the same time, they seem unsure of the possibility of being safe from contracting the virus (Populix, 2020). There is a limited space for people to move because of the government’s social distancing policy which significantly impacts consumers. As a result of this policy, many consumers shop online to fulfill their daily needs (Won & Kim, 2020; Tran, 2020). Online shopping has become a new lifestyle in Indonesian society. Online shopping technology has helped consumers to be able to fulfill their needs without violating social restriction policies. Online shopping activities have increased sharply due to the limited space for people to move during the COVID-19 pandemic. The e-commerce online shopping platform is considered a bridge for the community to fulfill their needs without leaving the house. The proliferation of e-commerce platforms in Indonesia supports this trend. Each platform presents a variety of attractive services and features to increase sales on the site or application.

Online-based economic growth also impacts changing consumer behavior, lifestyles, and consumer activities that want to be practical and fast. Consumers prioritize time efficiency and save costs by utilizing the Internet, especially in shopping. Consumers do not need to come to the store and trade directly with the seller. Online shopping consumers only need to choose through the application or website and pay by transferring money to the seller. Competition in the online business world is not only through applications, websites but also through the marketplace. The marketplace is an application or website that connects a seller or buyer (Rizan et al., 2020). Shopee is one of the newly established marketplaces in 2015 and can develop quickly and become the most popular e-commerce.

One of the favorite categories on Shopee’s online shopping site is the beauty category. Shopee Indonesia has stated that each month the average user transacts in the ‘beauty’ category of Rp 230, 000 – Rp 370, 000. Shopee Birthday Sale December 12, 2017 (12.12) shows relatively high numbers (Tashandra, 2018). The trend of purchasing beauty products in Shopee mostly are women aged 19–24 years (Tashandra, 2018). Most women in this age range prefer to shop for cosmetics at Shopee because discount prices are lower than in offline stores. Every month Shopee gives discounts for all types of products, especially cosmetic products that available at Shopee are the same that are sold in offline stores. More than 500 brands join as an official shop or ShopeeMall, one of Shopee’s new platforms (Tempo.co, 2017). This situation triggers consumers’ interest in shopping at Shopee, and the possibility of the intention to buy again cosmetic products at Shopee is quite large.

Repurchase intention is the individual’s judgment about repurchasing a specified service from the same business, taking into account the current situation and possible conditions. Repurchase intention is the process of an individual purchasing goods or services from the same firm, and the reason for repurchase is primarily based on past purchase experiences. (Cho, 2015). Consumers who are unsatisfied with the quality of products can reduce or inhibit repurchase intention. If consumers feel happy, then it is likely that consumers will have repurchase intention and will also recommend the product to others, which will impact the profits of online stores in Shopee.

One of the strategies undertaken by Shopee is to create repurchase intention by providing good quality services and following consumer expectations. Service quality compares customer expectations and desires with customer perceptions of the performance of the service it receives, such as the accuracy and manner of delivery (Parasuraman et al., 2005). In an online or e-commerce context such as Shopee, service quality is an effective way to obtain and maintain a competitive advantage (Zeithaml et al., 2002). E-Service quality (e-servqual) is the extent to which a Website facilitates efficient and effective shopping, purchasing, and delivery of products and services (Chang & Chen, 2008). If consumers feel the service quality level is good, it can result in consumers repurchase intention and create a shopping experience for the store. Examples of forms of services provided by Shopee in terms of privacy can be that Shopee can protect consumer personal information.

Repurchase intentions occur if consumers feel a sense of satisfaction in shopping, be it satisfaction in services, products, and others. Consumer satisfaction is essential in the online world because it maintains consumers and develops the online shop (Pappas, 2014). Consumers who shop at Shopee can feel satisfied when the products align with consumers’ expectations and are supported by a good shopping experience. Consumer experience is vital to improving business performance. The seller must understand and ensure the optimal customer experience to increase customer satisfaction. Pappas (2014) and Wu (2007), found that consumer satisfaction affected the intention to repurchase.

Another factor influencing repurchase intention besides e-servqual and shopping satisfaction in online and offline stores is experience. If the experience of buying online gives satisfactory results, then consumers will continue to shop online (Shim et al., 2001). Consumer experience in shopping online is called online shopping experience, a form of consumer experience when obtaining comfort and convenience in conducting transactions online Pentina et al. (2011). The experience of buying online has a significantly positive impact on repurchase intentions (Ling et al., 2010). Khalifa and Liu (2007) investigated the moderate effect of online shopping experiences on buyback intention.

This study examines the impact of e-servqual and satisfaction on repurchase intention with the online shopping experience variable being the moderator.

2. Literature Review

2.1. E-Service Quality

Zeithaml et al. (2018) define e-service quality as to how far a website may efficiently and effectively facilitate purchasing, shopping, and delivery processes. Zeithaml et al. (2002) developed a study of e-servqual, which is a development of the theory of service quality initiated by Parasuraman et al. (1988, 1991).

According to Parasuraman et al. (2005), there are 5 dimensions of e-servqual as follows:

a. Efficiency is a convenience to access a site. Consumers can evaluate an application’s service quality that refers to the ease of accessing, using the application, searching for information, and checking out quickly. It can also see how efficient the application is in completing its work.

b. Fulfillment is a site’s ability to fulfill promises regarding product inventory or orders. According to Wolfinbarger and Gilly (2003), fulfillment is an essential factor of satisfaction, loyalty, and intention to repurchase.

c. System availability is the accuracy of the technical function of a site. Software used to support online purchasing activities usually experiences problems and impacts online purchases.

d. Privacy is the security contained on the website and protects consumer information.

e. Contact is meeting consumers’ needs so they can communicate directly with employees of the customer service department online or by telephone.

2.2. Satisfaction

For every company, customer satisfaction becomes essential if consumers are satisfied with the company. This satisfaction encourages the possibility to make repeat purchases. Satisfaction is a feeling of consumers when making a purchase and compares what they receive with expectations (Schiffman & Wisenblit, 2019). Kotler and Keller (2016) defined satisfaction as a ‘person’s feeling of pleasure or disappointment, which resulted from comparing a product’s perceived performance or outcome against his/her expectations. According to Kotler and Keller (2016), three factors can create satisfaction: quality, service, and value.

According to Hsu et al. (2009), there are several indicators to measure satisfaction, including:

a. Suitability of services provided; consumers feel satisfied after shopping activities such as services provided according to expectations.

b. A shopping decision is a situation when consumers decide to shop.

c. Pleasant experience; a situation where consumers feel a pleasant experience after shopping.

d. Satisfaction with the product where consumers feel the products offered meet according to needs.

2.3. Repurchase Intention

Repurchase intention is the process of an individual purchasing goods or services from the same firm, and the reason for repurchase is primarily based on past purchase experiences. Repurchase intention refers to the subjective probability that a customer will continue to purchase from the same online provider (Cho, 2015). Repurchase intention is essential for companies, including online stores, to increase profits and achieve company success. Consumers who are satisfied with the performance of online shopping has a positive influence on their repurchase intention. Customer satisfaction has an important effect to increase the repurchase purchase intention (Chiu et al., 2009).

Repurchase intentions have several indicators (Zhou et al., 2009) including:

a. The desire to buy back products; consumers want to repurchase cosmetic products from the Shopee application.

b. Use the product again in the future; consumers revisit the Shopee application to check for cosmetic products that are being sold (only to see, there are no transactions).

c. Recommend the product to others; consumers recommend others to shop for cosmetic products at Shopee.

2.4. Online Shopping Experience

Online shopping is a form of electronic commerce that allows consumers to directly buy goods or services from a seller over the Internet using a web browser or a mobile app. Online stores usually enable shoppers to use “search” features to find specific models, brands, or items (Schiffman and Wisenblit, 2019). A shopping experience starts when a customer enters a store or an e-commerce website and stops when this same customer leaves with its purchases. According to (Pentina et al. 2011). An online shopping experience is a form of experience where a person gets comfort and convenience in conducting transactions online.

According to Ling et al. (2010), there are several indicators for an online shopping experience, including:

a. Already have online shopping experience; consumers who have experienced online purchases at Shopee.

b. Having a sense of competence in shopping online; the sense of competence refers to consumers who often (intensely) do online shopping activities through the Shopee application.

c. Having a sense of comfort in using online shopping sites; consumers’ comfort in shopping online at Shopee is that the menu is easy to understand.

Convenience when doing online shopping; the convenience offered by Shopee to consumers such as consumers can make transactions anywhere and save costs to come directly to the store.

2.5. Hypotheses

Authors in previous studies had mentioned that there is an indication of an interdependent relationship between e-servqual (X1) and satisfaction (X2), with repurchase intention (Y). In this study, the researcher employs online shopping experience (M) as moderating variables.

Zeithaml et al. (2002), Parasuraman et al. (2005), Chang and Chen (2009), and Pappas (2014) underlined that e-service quality has an impact on online shopping. E-service quality influences repurchase intention (Lestari & Ellyawati, 2019). The following research hypotheses of the influence of e-servqual towards repurchase intention before and after moderated by online shopping:

H1a: E-servqual has a significant impact on repurchase intention.

H1b: E-servqual has a significant impact on repurchase intention after moderation.

Authors in consumer behaviors have also identified that satisfaction impacts repurchase intention (Mittal & Kamakura, 2001). Therefore, the proposed hypotheses after moderation as follows:

H2a: Satisfaction has a significant impact on repurchase intention.

H2b: Satisfaction has a significant impact on repurchase intention after moderation.

According to Pentina et al. (2011), Ling et al. (2010), Kwek et al. (2013), Izogo and Jayawardhena (2018), Misra et al. (2017), Momtaz and Karim (2011), Parasuraman et al. (2005), Vinish et al. (2020), and Wu (2007), the online shopping experience impact repurchase intention. Therefore, the researcher proposes the following hypotheses:

H3: Online shopping experience moderated e-servqual on impacting repurchase intention.

H4: Online shopping experience moderated satisfaction on impacting repurchase intention.

Referring to the explanation above, the hypotheses testing proposed to this study is presented in the following Figure 1.

Figure 1: Conceptual Frameworks

3. Research Methodology

3.1. Respondents

The researcher uses a purposive sampling technique to produce 229 respondents from East Java’s Shopee customers. The criterion in this study was that respondents had made at least 2 cosmetic purchases and respondents were at least 18 years old. The data collection technique was using an online questionnaire, such as Google form.

3.2. Measurements

The questionnaire of this study passed the validity and reliability test (see Table 1 and Appendix). In measuring the responses, the researcher uses semantic differential from 1 (negative) to 10 (positive) (Osgood, 2009). Appendix shows that the correlation between each indicator variable E-Service Quality (X1), Satisfaction (X2), Online Shopping Experience (Z), and Repurchase Intention (Y) shows significant results with r count value > r table and produces a significance of less than 0.05. The conclusion is that all E-Service Quality (X1), Satisfaction (X2), Online Shopping Experience (Z), and Repurchase Intention (Y) variable question items are valid. This research’s reliability was conducted by looking at the Cronbach’s Alpha coefficient (Hair et al., 2007). All instruments were reliable with Cronbach Alpha > 0.6 as presented in Appendix.

Table 1: Variables and Indicators

As part of the multivariate data analysis requirements, responses were tested for their normality using the Skewness and Kurtosis test. A degree of confidence of α = 5% can be normally distributed if the value of Z Skewness and the value of Z Kurtosis are between critical values, namely between 1.96. The variables e-service quality (X1), satisfaction (X2), online shopping experience (Z), and repurchase intention (Y) were included in the data that was normally distributed because they have a Skewness and Kurtosis value between ± 1.96. Thus, the data in this study was normally distributed.

The Moderated Regression Analysis (MRA) was employed to develop the mathematical equations before and after moderation. Liana (2009) and Hair et al. (2014) mentioned that MRA is a tool to detect relationships between proposed variables, namely e-servqual and satisfaction towards repurchase intention as predicted variables with the online shopping experience, the moderator. The moderator’s role will be represented by the value of R2 and adjusted R2, whether increasing or decreasing the value (Hair et al., 2014; Liana, 2009). When the values are increasing, it implies that the moderator plays a significant role in mathematical modeling. On the other hand, when the value decreases, it implies that there is no crucial role for the moderator. Instead of mathematical modeling, MRA has also been used to test the hypotheses of this study.

4. Results

4.1. Demographic Characteristics of Respondents

Before the researcher investigates MRA, the first stage describes the demographic characteristics of respondents by uni-variate statistical data analysis such as a percentage. Table 2 shows the descriptive statistics of respondents:

Table 2: Respondents’ Demographic Characteristics

Table 2 shows that the number of male respondents is 25 or 10.92% compared to 204 or 89.08% of females. From the data, the conclusion is that there are more female respondents than men as it is well known that most cosmetic product users are female consumers.

The age that is appropriate for a child to start wearing make-up is 18 years. At that age, children are considered mature enough and free to manage their own lives. Because respondents aged 17–27 years pay more attention to their appearance, they like to change cosmetics until they find a suitable product and search for cosmetic products on the Shopee application that suit their wants or needs rather than buy at an offline store. Meanwhile, respondents aged 27–37 years, 37–47 years, and >47 years have found suitable cosmetics for themselves, so they rarely look for new cosmetic products through the Shopee application.

The results show that as many as 176 respondents or 76.85% are students. The rest are working as government officials (4.37%), private employees (10.04%), entrepreneurs (6.99%), and others as much as 1.75%. The reason is that the majority of students are more concerned about their appearance and are more updated with technological developments, so they take advantage of it by shopping online or through the Shopee application.

The majority of respondents have an income or monthly allowance of less than IDR 500.000. The data shows that as many as 165 respondents or 72.05%. 13.10% has a monthly income of IDR 1, 000, 000 – IDR 2, 000, 000. About 11.35% have an income of IDR 3, 000, 000 – IDR 5, 000, 000, and the rest 3.50% have an income of more than IDR 5, 000, 000. Because cosmetics sold through the Shopee application are relatively affordable, hence, consumers who have an income/ monthly allowance of less than 500.000 have frequently bought Shopee products.

4.2. MRA Analysis

This study uses MRA with Linear multiple regression to determine how much impact the independent variables e-servqual and satisfaction have on the dependent variable repurchase intention. MRA also is used to examine the moderating variable’s role in strengthening the influence of e-servqual and satisfaction on repurchase intentions. The result is presented in Table 3 (before moderated) and Table 4 (after moderated).

Table 3: Analysis of Multiple Linear Regression (Equation 1 before Moderation)

Note: The dependent Variabel: Rep Int; *** = Significant at α = 0.001; ** = Significant at α = 0.005. Source: Primary data.

Table 4: MRA Analysis (Equation 2 after Moderation)

Note: The dependent Variabel = Rep Int; *** = Significant at α = 0.001; **= Significant at α = 0.005. Source: Primary data

Table 3 provides explanation to obtain mathematical equation 1 as follows:

Repurchase intention=1.254+ 0.015e-servqual+ 0.739satisfaction+ e       (1)

Table 3 explains that based upon the multiple regression results before moderation, H1a is supported at p-value = 0.025 < 0.05 (α). This means that e-servqual has a positive effect on repurchase intention. This means that the greater the e-servqual, the stronger the repurchase intention with a 95% confidence level (5% error).

Based on Table 4 can be obtained an equation II as follows:

Repurchase intention=2.863-0.069e-servqual+0.010e-servqual moderated by online shopping experience-0.003satisfaction moderated by online shopping experience+e       (2)

Table 4 explains that after employing the online shopping experience variable as a moderator, the MRA indicates that H1b was not supported with p-value = 0.677 > 0.05 (α), which means significant. The online shopping experience does not moderate e-servqual influence on repurchase intention with a 95% confidence level (5% error). However, online shopping experience as moderator tends to support H2b with p-value = 0.041< 0.05 (α). So, satisfaction significantly affects repurchase intention after moderation with a 95% confidence level (error of 5%).

Table 4 has also explained the significant role of the online shopping experience as a moderator impacting the influence of service quality on repurchase intention. The Adjusted R2 increases from 0.633 before moderating (Table 3) to 0.690. However, the findings support H3 with p-value = 0.041 < 0.05 (α). In contrast, online shopping experience as a moderator impacting the influence of satisfaction on repurchase intention is not supported because H4 with p-value = 0.677 > 0.05 (α).

4.3. The Classical Assumption

4.3.1. Model Normality Test

Model normality test was conducted to examine if the regression model has residuals normally distributed (Hair et al., 2014). In this study, the model’s normality test uses the Kolmogorov-Smirnov test with a significance of 0.05 or 5%. Based on Table 4, it is known that the significant value is greater than 0.05. The residual value in equation 1 (multiple linear regression) shows a significance level of 0.499, while the residual value in equation 2 (MRA) indicates a significance level of 0.926.

4.3.2. Heteroscedasticity Test

To test whether the regression model occurs in variance inequality from residuals of observation to another observation, the researcher uses statistics of heteroscedasticity. If the variance is constant from observational observations, then there is homoscedasticity, and if the variance is different, then heteroscedasticity is present (Frost, 2019). The significance value is more than 0.05, which means that the variance of the residual data is constant, so the conclusion is that there is no heteroscedasticity in the regression equation and MRA.

5. Discussion

5.1. Effect of E-Service Quality on Repurchase Intention Before and After Moderation

The results showed that e-service quality significantly impacted the repurchase intention of cosmetic products in Shopee. This is indicated by the coefficient of β = 0.105, the p-value of 0.025 < 0.05 (α), hence H0 was not accepted. In contrast,

H1a: E-servqual has a significant impact on repurchase intention supported.

This means that E-Service Quality affects the Repurchase Intention in an online shopping mall in East Java during the pandemic COVID-19 era. The beta coefficient is positive, which means the better e-service quality will increase the repurchase intention. These findings support Chang and Chen (2009), Lestari and Ellyawati (2019), and Parasuraman et al. (2005).

Further, MRA after moderation results show that e-servqual has the coefficient of β = –0.084, a p-value of 0.340 > 0.05 (α), which means that after moderation, e-servqual would not impact the Repurchase Intention in an online shopping mall in East Java, Indonesia during COVID-19 era. This research supports research conducted by Ali et al. (2020) and Chang and Chen (2009) who stated that e-service quality does not significantly affect repurchase intention. Therefore, H0 was accepted, and

H1b: E-servqual has a significant impact on repurchase intention after moderation was not supported.

5.2. Effect of Satisfaction on Repurchase Intention Before and After Moderation

MRA before moderation shows that satisfaction significantly impacts the repurchase intention with a coefficient of β = 739, a p-value of 0.000 < 0.05 (α). Hence, H0 was not accepted and H2a was supported: satisfaction has a significant on repurchase intention in online shopping malls in East Java, Indonesia during the COVID-19 era. The coefficient shown is positive, which means that the better satisfaction, the repurchase intention will increase.

After moderation, satisfaction indicates the coefficient of β = 0.683, p-value = 0.000 < 0.05 (α), therefore, H0 was not accepted and H2b was supported: satisfaction has an impact significantly on repurchase intention after moderation. This means that during pandemic COVID-19, the influence of satisfaction on repurchase intention was strengthened by the online shopping experience. This finding supports previous studies which showed that consumer satisfaction impacts repurchase intentions (Pappas, 2014; Wu, 2007).

5.3. Role of Online Shopping Experience as a Moderator

MRA results show the strength of predictors - e-servqual and satisfaction on influencing the repurchase intention - reflected by the value of R2 = 0.637 with adjusted R2 = 0.633. Both R2 and adjusted R2 increases after moderation and the values are R2 = 0.695 while Adjusted R2 = 0.690. This means that the MRA model succeeded when there is an increase in the coefficient of determination (Liana, 2009). When online shopping experience moderates e-servqual, it has β = 0.411, p-value = 0.041 < 0.05 (α), which means there is no significant impact on the repurchase intention. A positive value means that the online shopping experience as a moderating variable has a positive and significant effect in moderating e-service quality influence on repurchase intention. This research is supported by the findings of Kim et al. (2012). Kwek et al. (2013) mentioned that the online buying experience positively influences repurchase interests.

The result concludes that the online shopping experience as a moderating variable strengthens and significantly affects e-service quality influence on repurchase intention. Therefore,

H3: Online shopping experience moderated e-servqual influence on repurchase intention in this study was supported.

In the specific role of online shopping experience being the moderator for satisfaction, the MRA results showed that after the moderation of online shopping experience on repurchase intention interaction, β = 0.093; p-value = 0.677 > 0.05 (α).

H4: Online shopping experience moderated satisfaction influence on repurchase intention in this study was not supported.

It means that in the pandemic COVID-19 era, the online shopping experience will not take into account satisfaction when doing repurchase.

A positive value means that the online shopping experience as a moderating variable has a positive impact. However, it does not significantly affect the satisfaction influence on repurchase intention in the COVID-19 era in East Java Indonesia. This study supports the findings of Khalifa and Liu (2007) who stated that online shopping experience strengthens satisfaction influence on repurchase intentions. Zaid and Patwayati (2021) also found that customer experience positively and significantly affects customer satisfaction in major e-marketplace in Indonesia. Wu (2007) identified that customer satisfaction had positively affected repurchase intentions with online shopping experiences.

6. Conclusion

Based on data analysis and hypotheses testing of the impact of e-service quality, satisfaction, repurchase intention, and online shopping experience on Shopee, it can then be concluded that COVID-19 has impacted the consumer behavior in East Java Province, Indonesia, particularly the behavior of repurchase intention. When the researcher was employing the online shopping experience as a moderator, it worked but not well. As a moderating variable, the online shopping experience has a critical contribution and significantly affects the e-service quality influence on repurchase intention. Online shopping experience as a moderating variable has an essential role in strengthening consumer behavior but does not significantly affect satisfaction influence on repurchase intention.

Strategic implication towards the digital platform companies is that they need to improve the system, especially in searching for a product during the COVID-19. The customer wants an indicator that shopping in the online market is safe enough, affordable, and satisfying. In terms of repurchase intention, the company must pay attention to improving its application by informing that the products being sold are affordable using their online shopping application. Further research must pay attention to similar research in a post-pandemic era.

*Acknowledgments:

I would like to thank the Research Grant provided by the Research Centre, University of Jember, The Ministry of Education and Culture of The Republic of Indonesia, 2021.

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