The Impact of Price Transparency, Safe Transactions, and Delivery Performance on E-commerce Performance in Indonesian Online Supermarkets
Authors: Rachbini Widarto 
Published: October 2023

Purpose: This empirical study examines the impact of key factors on E-commerce Performance and Digital Customer Retention in the online supermarket industry in Indonesia. The research utilizes a quantitative approach with structural equation modeling (SEM) and gathers data through a cross-sectional survey conducted among online supermarket customers. The survey instrument includes questions related to price transparency, online shopping interface, safe transaction, delivery performance (independent variables), and E-commerce Performance and Digital Customer Retention (dependent variables).

Design/Method/Approach: The analysis, based on data from 228 respondents, reveals that Delivery Performance and E-commerce Performance play critical roles in determining overall E-commerce Performance. Additionally, Price Transparency emerges as a crucial factor significantly influencing Digital Customer Retention. However, Online Shopping Interface and Safe Transaction demonstrate limited impact on both E-commerce Performance and Digital Customer Retention.

Findings: The study shows a positive link between E-commerce Performance and Digital Customer Retention, identifying gaps in understanding factors like website design, pricing, and product quality. To improve retention, businesses should enhance online presence, prioritize customer experience, and focus on Delivery Performance, E-commerce Performance, and Price Transparency. Safe Transaction and Online Shopping Interface have a smaller impact. Mediation tests reveal these factors indirectly affect retention through E-commerce Performance. Price Transparency lacks a significant indirect effect. Future research could explore more factors, contexts, and methodologies.

Theoretical Implications: Theoretical implications of the study contribute to the understanding of the essential factors that influence E-commerce Performance and Digital Customer Retention within the context of online supermarkets in Indonesia. The findings emphasize the significance of delivery reliability, price transparency, and overall E-commerce Performance in driving customer satisfaction and retention.

Practical Implications: Practically, the research offers valuable insights for businesses operating in the online supermarket industry in Indonesia. To retain digital customers and enhance overall business success, companies should prioritize optimizing their delivery processes, enhancing price transparency, and improving E-commerce Performance.

Though not directly applicable in this study, the research findings have potential social implications for policymakers and regulators in the e-commerce sector. Implementing policies that promote reliable delivery, transparent pricing, and a conducive online shopping environment could positively impact the online supermarket industry and the broader e-commerce landscape.

Originality/Value: The research contributes to existing literature by focusing on the online supermarket industry in Indonesia and exploring the specific impact of key factors on E-commerce Performance and Digital Customer Retention. These findings offer valuable insights to researchers and industry practitioners interested in understanding e-commerce success factors.

Research Limitations/Future Research: The study's limitations include its concentration on online supermarkets in Indonesia, potentially limiting generalizability. Future research could broaden the scope to include other online retailers and countries. Additionally, exploring other potential influential factors and utilizing diverse research methods could provide a more comprehensive understanding of e-commerce success. In conclusion, this study provides valuable insights into the factors influencing E-commerce Performance and Digital Customer Retention in the online supermarket industry in Indonesia. The findings underscore the importance of delivery reliability, price transparency, and overall E-commerce Performance in enhancing customer satisfaction and retention. The research has practical implications for businesses and potential social implications for policymakers, making valuable contributions to the existing literature in the field of e-commerce.

Paper Type: Empirical

JEL Classification: M31, L81