Customer Loyalty in Digital Wallet Industry: the Role of Satisfaction, Effort Expectancy, Performance Expectancy, and Habit
- DOI
- 10.2991/aebmr.k.211119.033How to use a DOI?
- Keywords
- digital wallet; loyalty; satisfaction; performance expectancy; effort expectancy; habit
- Abstract
Due to the high market competition, customer loyalty becomes one of the biggest challenges in the digital wallet industry today. Therefore, it’s important for business players to understand consumer behavior in using digital wallet, not only limited to the adoption or acceptance phase, but also the post-adoption phase including customer loyalty. The purpose of this research is to explore the roles of satisfaction, performance expectancy, effort expectancy, facilitating conditions, habit, and switching barriers in influencing customer loyalty. The research model was tested using 158 valid responses from an online survey conducted in Indonesia. This research is a collective research design (descriptive research). The research model has been estimated using Partial Least Squares Structural Equation Modeling (PLS-SEM) method. The results indicate that habit and satisfaction have a significant positive effect on customer loyalty. Besides that, satisfaction is proved as mediator with full mediation effect for performance expectancy and effort expectancy on indirect relations to customer loyalty. In this study, the facilitating conditions and switching barriers have no direct significant impact on customer loyalty. For researchers, this study complements previous research and deepens the theory of consumer behavior, specifically regarding customer loyalty in using digital wallet as mobile payment. For practitioners, the findings of this study can provide meaningful insights about customer loyalty or continuance usage behavior toward digital wallet or other financial technology to help develop effective business strategies.
Research purpose:
The purpose of this research is to explore the roles of satisfaction, performance expectancy, effort expectancy, facilitating conditions, habit, and switching barriers in influencing customer loyalty.
Research motivation:
Due to the high market competition, customer loyalty becomes one of the biggest challenges in the digital wallet industry today. Therefore, it’s important for business player to understand consumer behavior in using digital wallet, not only limited to the adoption or acceptance phase, but also the post-adoption phase including customer loyalty.
Research design, approach and method:
The research model was tested using 158 valid responses from an online survey conducted in Indonesia. This research is a collective research design (descriptive research). The research model has been estimated using Partial Least Squares Structural Equation Modeling (PLS-SEM) method.
Main findings:
The research model has been estimated using Partial Least Squares Structural Equation Modeling (PLS-SEM) method. The results indicate that habit and satisfaction have a significant positive effect on customer loyalty. Besides that, satisfaction is proved as mediator with full mediation effect for performance expectancy and effort expectancy on indirect relations to customer loyalty. In this study, the facilitating conditions and switching barriers have no direct significant impact on customer loyalty.
Practical/managerial implications:
For researchers, this study complements previous research and deepens the theory of consumer behavior, specifically regarding customer loyalty in using digital wallet as mobile payment. For practitioners, the findings of this study can provide meaningful insights about customer loyalty or continuance usage behavior toward digital wallet or other financial technology to help develop effective business strategies.
- Copyright
- © 2021 The Authors. Published by Atlantis Press International B.V.
- Open Access
- This is an open access article under the CC BY-NC license.
Cite this article
TY - CONF AU - S.Kom. Chyntia Sheila Elok AU - M.M. Aprihatiningrum Hidayati PY - 2021 DA - 2021/12/07 TI - Customer Loyalty in Digital Wallet Industry: the Role of Satisfaction, Effort Expectancy, Performance Expectancy, and Habit BT - Proceedings of the International Conference on Emerging Challenges: Business Transformation and Circular Economy (ICECH 2021) PB - Atlantis Press SP - 340 EP - 352 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.211119.033 DO - 10.2991/aebmr.k.211119.033 ID - ChyntiaSheilaElok2021 ER -