JOURNAL OF CRITICAL REVIEWS

ISSN- 2394-5125 VOL 7, ISSUE 16, 2020

THE EFFECT OF VISUAL ATTRACTIVENESS AND E- EXPERIENCE ON THE E-LOYALTY (A STUDY OF ONLINE INDUSTRY AT JAKARTA)

Erlina Dwi Ratnasari1, Mts Arief 2, Diena Dwidienawati3

1Management Department, Binus Business School, Bina Nusantara University, Jakarta, Indonesia, 2DRM, Binus Business School, Bina Nusantara University, Jakarta, Indonesia, 3Management Department, Binus Business School, Jakarta, Bina Nusantara University, [email protected],[email protected], Indonesia,[email protected]

Received: 17 March 2020 Revised and Accepted: 19 June 2020

ABSTRACT: This aim of this study was to understand the influence of visual attractiveness and E-experience to e-loyalty in shopping for fashion products online. This is a verification study and Structural Equation Modeling (SEM) was used in determining the causality of visual attractiveness, e-experience, and e-loyalty. The unit of analysis is online fashion shopping customers. A cross sectional observations were conducted Observations are conducted. The population of this study is all internet users in Indonesia who have already done shopping online for a fashion product. The minimum sample size of conducting a Structural Equation Model (SEM) method was used in this study, with a total of 200 respondents. To get a sample of this population, questionnaires were distributed to customers who were shopping for fashion in several shopping centers in big cities. The results show that visual attractiveness has a greater influence than E-experience in creating e-loyalty in shopping for fashion products online. The results have managerial contribution to online fashion companies that to increase e-loyalty in shopping for fashion products that need to be pursued by increasing visual attractiveness which is supported by the improvement in providing satisfying e-experience for customers. KEYWORDS: Visual Attractiveness, E-Experience, E-Loyalty.

I. INTRODUCTION E-commerce contribution to total trading is only 12% in 2018. However, the growth rate in past few years has been at a fast rate. In the online Fashion segment, e-commerce has accounted to 27%. In the fashion industry the percentage of consumer who purchased online has grown 58% (1) Online shopping customers are expected to not only have bought intentions (by looking at fashion websites or fashion marketplaces) but also to have shopping loyalties so that this relatively growing online channel can become one of the means and solutions to increase the growth of the fashion industry. The potential for online shopping is expected to improve the performance of the Indonesian fashion industry. With the importance of the existence of the Indonesian fashion industry in the employment and development of local industries, surely the decline in the performance in recent years should be used as an alarm. The potential of online shopping should be exploited by the local fashion industry so as not to be undermined by competition that arises from imported products. Online transactions are an application of information technology advancements whose use is very intense lately. At the beginning of its emergence, people were not so sure about doing online transactions because in online transactions, a person fully relied on trust in the information conveyed by the owner on the website and the visitors could not see clearly about the products offered (2). In improving the performance of the business of online fashion industry, e-loyalty is particularly important. E- loyalty is defined as individuals’ preference attitude towards an electronic business which would result in repeated buying behavior (3). Based on a preliminary survey found that online shopping e-loyalty products still need to be improved. The performance of the fashion industry in online shopping has not shown significant results due to the lack of high customer retention. This is thought to be related to visual attractiveness. The number of websites provides many choices for fashion consumers. (4) stated that the role of a website becomes a shopping channel that determines decision support for potential buyers when shopping online so that the role of visual attractiveness in

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ISSN- 2394-5125 VOL 7, ISSUE 15, 2020 online fashion trading websites and information about fashion is very important (4). With a display that supports the desires or needs of customers, will help customers make a decision to shop. Therefore, we need visual attractiveness that is able to attract consumers to shop on a fashion product website. Fashion customers are strongly influenced by product appearance, but customers have experienced boredom in seeing visual displays, many channels, the latest technologies, and intense competition in the fashion trade (5) . Attractive visual attractiveness can encourage people to browse the products on the website and can encourage people to make a purchase. That results in an online shopping experience for consumers. The online shopping experience and traditional shopping experience are different because, in an online shopping experience, customers need a device to shop through the website. By shopping online through a website, customers would change their traditional shopping behaviour. Furthermore, shopping convenience considered to be a crucial factors that support online shopping users (6). However, based on observations obtained the phenomenon of problems related to online shopping experiences (e-experience) such as: Some sales sites have a quality system that isn't easy to understand because it's a complicated system. Buyers still have doubts that the system or website selling the fashion product is reliable. In terms of the quality of the information provided, there are some sites with incomplete information and are not easy to understand. In terms of service quality, the reliability of some fashion product seller websites is still lacking, and even has a slow response in answering questions or buyer orders, causing an unsatisfactory experience for the buyer. Based on the gaps explained, this study aims to to understand the influence of visual attractiveness and re- experience to e-loyalty in shopping for fashion online. II. LITERATURE REVIEW Visual Attractiveness Perceived visual attractiveness is a construct developed by Van der Heijden (2003). Perceived visual attractiveness is concerned with how the visual side of a website can be aesthetically pleasing to consumers. (7), develops perceived attractiveness by using the framework of TAM (8). According to Van der Heijden (2003), visual attractiveness is the degree to which consumers believe that a website is aesthetically pleasing visually. The attractiveness of a website relates to the visual elements of the website, especially on the colors used and layout of the website (Van der Heijden, 2003). According to Garrett (2011), the visual of a website is defined as the balance, emotional, aesthetic appeal of the website, and the expression can be in term of through color, shape, , music, and animation (8)(9). In this study, the variable of visual attractiveness includes dimensions of product and visual that refer to Kumar (2014), with the following indicators:

1. Product visualization. This dimension is measured by the indicators that are product photos only, product photos that are exhibited by sculpture, and product photos exhibited by the model.

2. Visual merchandising. This dimension is measured by the indicators that are the overall website display. III. E-Experience The convenience of buying products anywhere and anytime is one of the rational of online shopping activity. Moreover, shopping convenience is considered as one of crucial factors that would support online shopping users (6). Website design can also have a negative effect on consumers' buying when they finding complex and confusing websites in their use (10). Meanwhile, (11) stated that a good information system covers system quality, information quality, and service quality (11). In this study, the re-experience variable is measured by a dimension that refers to the opinion of (12) which consists of the following indicators:

1. System quality. This dimension is measured by indicators that are easy to understand, reliable, response time, and easy to use.

2. Information quality. This dimension is measured by indicators, namely completeness, easy to understand, related to the information sought, maintaining personal confidentiality.

3. Quality of service. This dimension is measured by indicators that are reliable service, paying attention to customers, and fast response from customer service. IV. E-Loyalty Since the use of internet has been increasing, particularly in online business transaction, researches on e-loyalty has been conducted by many researcher for nearly a decade (13). Moreover, evidences carried out from Heil

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ISSN- 2394-5125 VOL 7, ISSUE 15, 2020

(2016) also supports that customers’ loyalty has a stronger effect in online environment rather than the offline world (14,15). E-loyalty is a “… favorable attitude toward an electronic business resulting in repeat buying behavior.” (3). Heil (2016) states that E-loyalty refers to as the combination of customers’ behavioral loyalty intentions and their positive attitude towards the online shop. Additionally, Asgari et al. (2014) claim that e-loyal customers do not necessarily look for products with the lowest prices, but rather they look for prices which is worth. Moreover, E-loyalty towards particular online shops would also influence customers to come to the store and thus providing potentially rich resources of benefits (16). Based on the concept, the e-loyalty variable in this study is measured through the dimensions which consist of additional selling, cross-selling, and retention. Hypothesis Development Ponirin et al. (2010) examined the antecedent of e-loyalty which consists of e-service quality, e-perceived , e-security, e-satisfaction e-trust, and e-commitment. Furthermore, services, security, privacy, accountability as well as the website’s design have been found to have a significant positive impact towards individuals’ e-loyalty (17). In addition, Tsai (2017) also found that e-loyalty is directly affected by the usefulness of the information provided, navigational effectiveness, aesthetic appeal, entertainment, social presence, and self-concept congruity found on the functional, emotional, and symbolic dimensions of the website’s design quality. Based on the following literature reviews, the following hypothesis was formulated: H: visual attractiveness and re-experience affect e-loyalty V. METHODOLOGY This research is a verification study to see the causality of visual attractiveness, e-experience, and e-loyalty, by using the Structural Equation Modeling (SEM). The unit of analysis is online fashion shopping customers. The observations were conducted in a certain time range in 2017 so that this study is cross-sectional or one shoot. In this study, data was collected directly from online fashion shopping customers, so the data collected was primary data. Respondents are obtained by visiting directly in person or asking customers to fill out online. The intended customers were customers who live in Jakarta. The population of this study was consumers of fashion products in Indonesia who have already shopped online . Indonesia has reached a total population of up to 265.4 million people, with the internet users reaching 132.7 million in 2018 (19). The population of this study is all internet users in Indonesia who have already done fashion retail shopping online. The minimum sample size of 200 respondents was used in this study, which is also the minimum requirement of conducting the Structural Equation Model (SEM) method. To get a sample of this population, questionnaires were distributed to customers who were shopping for fashion in several shopping centers in Jakarta. This was done so that the specific target of the survey was the fashion spenders who were then selected again to have made online purchases. VI. RESULT AND DISCUSSION Full model testing Goodness of Fit: The goodness of fit is assessing the overall index value which provides assessment whether the model that has been designed can be said to be appropriate between the theoretical-based research model and empirical-based data (20). As structural Equation Model (SEM) may not be one of the best statistical tests to explain the predictive power of a model, several index criteria would be needed in order to assess the suitability of the model. Furthermore, the Goodness of fit of the model would also assess whether the resulting model matchs to the actual conditions. The hypothesis is: Ho: Goodness of fit model Ha: The model is not the goodness of fit This section will discuss the results of hypothesis testing using the Structural Equation Modeling (SEM). Before the discussion is carried out, the hypothesis will be analyzed for the results of the suitability of the model test.

Table 1. Goodness of Fit No. Goodness of fit Value Adjusted Goodness of Conclusion fit 1 Chi Square 154.84 P -value>0.05 Close Fit

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ISSN- 2394-5125 VOL 7, ISSUE 15, 2020

No. Goodness of fit Value Adjusted Goodness of Conclusion fit Normed Chi Square (x2/df) P -value = 0.053 2 Goodness of Fit Index (GFI) 0.87 >0.8 Close fit 3 Adjusted Goodness of Fit Index (AGFI) 0.83 AGFI> 0.8 Close fit RMSEA≤ 0.08 (good Root Mean Square Error of Approximation fit) 4 0.042 Close fit (RMSEA) RMSEA< 0.05 (close- fit) Source: Primary data processed, 2019 Chi-Square Value of this study uses the value of Satorra-Bentler (Satorra-Benteler Scaled). As shown in the data above the Chi-Square value with Degrees of Freedom 128 is 154.84 with a p-value of Chi-Square <0.05 (), then according to the Chi-Square index, the suitability of this research model is good (Hair et al., 2010 ). The RMSEA value of this research model is 0.042, which shows that the overall fit of the model is quite good. RMSEA value is said to be good if it is smaller than 0.08. Moreover, the Goodness of Fit Indices (GFI) and the Adjusted Goodness of Fit Index (AGFI)> 0.80. The Root Mean Square Error of Approximation (RMSEA) and the RMR indicate a value of less than 0.05. Thus, the results suggest that the research model is in accordance with empirical conditions. Based on the results of SEM (Structure Equation Model) calculations, the complete results are as follows. Based on the structural model framework in this study are: 1 = 0.381 + 0.302 +1 (1) 1 = e-loyalty 1 = Visual Attractiveness 2 = E-Experience i= Residual The following are a complete path diagram model of the research model and the t-value of the research results.

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Fig.1. Result of Structural and Measurement Model

Through the results presented in the resolved figure, it can be seen that all the measurement models are valid in measuring the dimensions and variables with a t value of> t table (= 1.96). Hypothesis Testing Table 2 showed the result of hypothesis testing. Table 2. Partial Hypothesis Testing Structural Model  SE() T value R2 Visual Attractiveness -> e-loyalty 0.38 0.14 2.67* 0.18 E-Experience -> e-loyalty 0.30 0.12 2.56* 0.12 *significant at =0.05 Based on table 2, this suggests that the effect of Visual Attractiveness and E-Experience on e-loyalty is significant with t value > t table (1.96). Visual Attractiveness has a greater effect (18%). Based on the hypothesis testing, it resulted in a finding model as figured out as follows.

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PV 0.76 Visual Attractiveness 18% (1) 1.00 0.70 EL1 VM

1.00

E-Loy 1.00 EL2 (η1)

1.00 KS EL3

0.69 E-Experience KI 0.77 (2) 12% 0.87

KL

Fig 2. Finding Model The research finding model shows that visual attractiveness has a greater influence than re-experience in creating e-loyalty. In the visual attractiveness variable, the dimension of visual merchandising has a greater influence than product visualization. While in the E-experience variable, the service quality, system quality and information quality were found to be the dimensions which have the highest influence. Based on the results of these tests, the increase in e-loyalty in online shopping for fashion products is mainly shaped by visual attractiveness, which is related to visual merchandising and product visualization. Visual merchandising shows the overall appearance of the website that can attract web visitors. While product visualization is related to attractiveness in terms of product photos, product photos that are exhibited by sculpture, and product photos exhibited by the model. The attractiveness of these aspects contributes more to creating e-loyalty compared to e-experience. The aspect of e-experience that is proven to have the highest effect is service quality. It relates to the extent to which customers felt for reliable service, attention, and fast response from customer service. The next aspect is the quality of information, which illustrates the extent to which information is complete, whether the information is easy to understand, related to the information sought, and the extent to which the website maintains the customer's personal confidentiality. While the quality of the system shows whether the system perceived by customers is easy to understand, reliable, responds with a fast time and is easy to use. VII. CONCLUSION AND RECOMMENDATION

The results of this study showed that visual attractiveness has a greater influence than re-experience in creating e-loyalty in shopping for fashion products online. In the visual attractiveness variable, the dimension of visual merchandising has a greater influence than product visualization. While in the re-experience variable, the dimension which gives the highest influence are service quality, information quality, and system quality. The results of this study have implications for the online fashion industries management, in which that an increase in e-loyalty in shopping for fashion products needs to be pursued by increasing visual attractiveness which is supported by an improvement in providing satisfying e-experience for customers. The development of visual attractiveness is prioritized on visual merchandising and product visualization. While the development of re-experience needs to be emphasized to improve service quality, information quality, and system quality to be more satisfying to customers. VIII. REFERENCES

[1] Orendorff A. The State of the Ecommerce Fashion Industry: Statistics, Trends & Strategy. Shopify. 2019. p. 1–33. [2] Buttner OB, Goritz AS. Perceived trustworthiness of online shops. J Consum Behav. 2008;50(October):35–50. [3] Anderson RE, Srinivasan SS. E-Satisfaction and E-Loyalty: A Contingency Framework. Psychol Mark. 2003;20(2):123–38. [4] McCormick H, Livett C. Journal of Fashion Marketing and Management : An International Article information : J Fash Mark Manag An Int J. 2012;16(1):21–41.

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