The Effect of Visual Attractiveness and E- Experience on the E-Loyalty (A Study of Online Fashion Industry at Jakarta)
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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 FASHION 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 sales 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 347 JOURNAL OF CRITICAL REVIEWS 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 marketing 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 level 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 design 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, typography, music, and animation (8)(9). In this study, the variable of visual attractiveness includes dimensions of product visualization and visual merchandising 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 348 JOURNAL OF CRITICAL REVIEWS 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