Articles
DOI DOI: 10.62441/actainnovations.v63i.1282

HOW TO INCREASE CUSTOMER LOYALTY BY BUILDING TRUST IN E-COMMERCE CUSTOMERS IN INDONESIA?

Stephen Gregorius Kurnia 1, MTS Arief2, Asnan Furinto 1, Viany Utami Tjhin 1
  1. 1 Bina Nusantara University, Indonesia.
  2. 2 Bina Nusantara University, Indonesia.

Abstract

The rapid growth of e-commerce has increased the importance of understanding how customer satisfaction and trust contribute to customer loyalty in digital environments. This study examines the mechanisms underlying customer loyalty in Indonesian e-commerce by integrating functional and relational perspectives and investigating the moderating role of generational cohort. The research model incorporates Perceived Application Quality (PAQ), Service Experience (SE), Customer Trust (CT), E-commerce Customer Satisfaction (CS), and Customer Loyalty (CL), with cohort representing Generations X, Y, and Z as a moderator of selected relationships. A quantitative cross-sectional survey was conducted among 401 Indonesian e-commerce users with prior online transaction experience, and the data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that Perceived Application Quality has a positive and significant effect on Customer Satisfaction (β = .575, p < .001), while Service Experience positively influences Customer Trust (β = .565, p < .001). Customer Trust significantly affects both Customer Satisfaction (β = .307, p < .001) and Customer Loyalty (β = .315, p < .001), whereas Customer Satisfaction has a significant positive effect on Customer Loyalty (β = .500, p < .001). Cohort does not significantly moderate the relationship between Perceived Application Quality and Customer Satisfaction (β = −.045, p = .227), but significantly moderates the relationship between Service Experience and Customer Trust (β = .097, p = .015), although the effect size is small. These findings demonstrate two complementary mechanisms for developing e-commerce customer loyalty: a functional-satisfaction pathway and a relational-trust pathway. The study further indicates that generational differences are context-specific rather than universally influential, being more relevant to relational trust formation than to functional application evaluation. The findings suggest that e-commerce firms should maintain consistent functional application quality across customers while adapting relational and trust-building service strategies to relevant customer characteristics.

How to Cite

Kurnia , S. G., Arief, M., Furinto , A., & Tjhin , V. U. (2026). HOW TO INCREASE CUSTOMER LOYALTY BY BUILDING TRUST IN E-COMMERCE CUSTOMERS IN INDONESIA?. ACTA INNOVATIONS, 63, 1057–1064. https://doi.org/10.62441/actainnovations.v63i.1282
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