Volume 8, Issue 3, March – 2023 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165

Analysis for Customer Loyalty and Customer

Satisfaction Lazada Company as Intervening
during the Covid-19 Pandemic
Satria Ramadhan Syahbirin1, Sonny Indrajaya2
Master of Management, Economic and Business Faculty
Mercubuana University,
Indonesia

Abstract:- This study explains the influence of Lazada's I. INTRODUCTION

customer loyalty and satisfaction during a pandemic.
This research was conducted virtually from February Today's technology makes it easier for various
2021 to June 2022 with 80 respondents using a purposive activities to feel lighter and faster. One of them is in
sampling technique. This research used four variables of transacting using an online shop to meet needs. Utilization
brand image, customer experience, customer satisfaction and use of internet technology is expected to provide great
and customer loyalty. The data in this study were benefits to the competitive business world. Companies that
obtained from primary sources using a questionnaire are able to compete in this competition are companies that
distributed online via the Google form and measured are able to implement technology and information into their
with a Likert scale. Testing the research hypothesis was companies. One type of technology implementation in terms
carried out using the Partial Least Square (PLS) based of increasing business competition and selling products is to
Structural Equation Model (SEM) approach. The results use electronic commerce (e-commerce) to market various
of this study, namely the results of hypothesis testing kinds of products or services, both in physical and digital
using smartLPS 4.0 in this study indicate that consumer forms. The basic idea and benefits of e-commerce in
customer experience and customer satisfaction in using increasing attractiveness to customers and increasing
Lazada products have a positive and significant company competitiveness. In 2019 the Covid-19 pandemic
influence on customer loyalty. But the brand image occurred and e-commerce became very popular for the
shows that there is a positive influence but not community.
significant. This proves that the customer experience in
this study when using Lazada products has a significant Based on the increase or decrease between e-
role in their satisfaction in using Lazada. Customer commerce companies in Indonesia that compete from year
satisfaction can either improve or increase customer to year, there are 10 rankings sorted by the highest number
loyalty, so companies need to maintain a good experience of visitors. in 2017 Lazada is E-Commerce with the largest
for customers and this factor becomes one of the factors revenue, but until 2021, Lazada is always in 4th position,
that strengthen customer loyalty to these products. and always below Tokopedia, Bukalapak, and Shopee. With
Theoretical implications of this research are the these results it is suspected that there is an influence
implications of this research, namely that it is expected between customer experience and brand image on customer
to be able to carry out both studies, namely qualitative loyalty at PT Lazada Indonesia. Based on the number of
and quantitative to provide more in-depth research Lazada user transactions from 2019 to 2021, it shows that
results and more effective suggestions, using variables there has been a significant decrease from 2019 to 2021 in
that are not used in the pre-survey table and further the number of Lazada application users. The problem in this
research can be carried out on e- other commerce or in study is that Lazada has experienced a decrease in ranking
other business sectors, because with different objects it is under other e-commerce which has resulted in a reduced
possible to produce different conclusions. The practical number of visitors on the Lazada website. The same thing
implication of this research is that Lazada companies also happened with the increasing number of e-commerce
still have to pay attention to changing times and have to users in Indonesia, regarding the increase in the number of
maintain the existence of customers. current e-commerce users, not making Lazada the main e-
commerce destination for customers. Customers still have
Keywords:- Loyalty, customer satisfaction, brand image, other options to do online shopping and are also suspected
Lazada, Covid-19 Pandemic. of reducing the level of loyalty from Lazada customers.
Based on the above, the purpose of this research is to
analyze customer loyalty and customer satisfaction of
Lazada companies during the Covid-19 pandemic.

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Volume 8, Issue 3, March – 2023 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
II. HYPOTHESIS AND METHODS customer satisfaction has a direct and significant effect on
customer loyalty.
A. The influence of customer experience on customer
satisfaction  H3: There is a significant effect of customer satisfaction
Hendra (2016) says that customer experience has a on customer loyalty.
significant positive influence on customer satisfaction. Dewi
and Hasibuan. (2016) have results where partially and III. METHOD
simultaneously customer experience (Sense, Feel, Think,
Act and Relate) has an effect on customer satisfaction. The research method used is quantitative research
using a structured questionnaire. This research is a
H1: There is a significant influence of customer experience hypothesis testing (Hypotheses Testing) and seen from the
on customer satisfaction time period it is a cross sectional study or one shoot data
collection, namely collecting information from one type of
B. Effect of brand image on customer satisfaction sample which is carried out only once in one period. The
Setyowati (2017) states that, there is a significant research sampling technique used a purposive sampling
positive effect of brand image on customer satisfaction so technique with the number of samples in this study being 80
that it can be said that a strong or attached brand image can (16 indicators x 5). This research uses four variables of
increase customer satisfaction. Santoso (2016) also stated brand image, customer experience, customer satisfaction
that brand image has a positive effect on customer and customer loyalty. The data in this study were obtained
satisfaction. The nature of the positive influence is from primary sources using a questionnaire distributed
significant. online via the Google form and measured with a Likert
scale. Testing the research hypothesis was carried out using
 H2: There is a significant positive influence of brand the Partial Least Square (PLS) based Structural Equation
image on customer satisfaction Model (SEM) approach.
C. The Effect of Customer Satisfaction on Customer Loyalty IV. DISCUSSION
Orel & Kara (2018) state that, there is an influence from
SCS services or online shopping that has a positive and Primary data in this study resulted from collecting data
significant effect on loyalty through the customer directly from respondents through questionnaires distributed
satisfaction channel. Sembiring (2014) also states that online (google form) as many as 80 respondents.

A. Characteristics of Respondents Based on Gender (Gender)

Gender Number of Respondents Percentage

Women 38 48%
Male 42 52%
Total 80 100%
Table 1: Characteristics of Respondents by Gender

Source: processing data (2022)

Based on Table 1. shows that the characteristics of the respondents obtained based on gender, namely as many as 52.00%
(52 respondents) were male, then 48.00% (48 respondents)

B. Characteristics of Respondents by Age

Age Number of Respondents Percentage

≤ 25 years 18 23.00%
26 - 30 years 38 48.00%
31 ≥ years 24 29.00%
Total 80 100%
Table 2: Characteristics of Respondents by Age

Source: processing data (2022)

Based on Table 2 shows that 23% (18 respondents) were aged ≤ 25 years, 48% (38 respondents) were aged 26 to 30 years,
and 29% (24 respondents) were aged ≥ 31 years.

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ISSN No:-2456-2165
C. Description of Customer Experience Variables (X1)

Indicator Distribution of Answers

Total Mean Median Min Max Std. Deviation
Code STS TS N S SS
PP1 0 2 4 49 25 80 4,270 4 2 5 0,633
PP2 0 4 5 46 25 80 4,220 4 2 5 0,718
PP3 0 3 7 47 23 80 4,200 4 2 5 0,696
PP4 0 5 4 46 25 80 4,210 4 2 5 0,742
PP5 0 4 2 49 25 80 4,250 4 2 5 0,687
Total 0 18 22 237 123 400 4,230 20 10 25 3,478
Table 3: Analysis of Respondents' Answers to Customer Experience (X1)

Source: processing data (2022)

 Information : the PP3 indicator which states that "using Lazada products
 PP1 = Using Lazada products based on the five senses is based on customer needs" which has an average of 4,200.
(such as: seeing or hearing Lazada products first This can be indicated that Lazada Products are not sufficient
 PP2 = Using Lazada products according to the in terms of product completeness for what customers need.
customer's mood While the highest indicator is found in the PP1 indicator
 PP3 = Using Lazada products based on customer needs which states that "Using Lazada products is based on the
 PP4 = Using Lazada products based on customer five senses. (like: seeing or hearing Lazada products first).”
experience. which has an average number of 4,270. It declares that
 PP5 = Using Lazada products based on suitability Lazada customers use Lazada products when customers
know information in advance, such as online or Lazada
Based on Table 3 it shows that the lowest indicator is promotional advertisements.

D. Description of Brand Image Variable (X2)

Indicator Distribution of answer

Total Mean Median Min Max Std. Deviation
Code STS TS N S SS
CM1 1 1 2 49 27 80 4.30 4 1 5 0,6590
CM2 0 3 3 45 29 80 4.30 4 2 5 0,6741
CM3 0 9 5 44 22 80 4.090 4 2 5 0,8539
Total 1 13 10 138 78 240 4,230 12 5 15 2,1871
Table 4: Analysis of Respondents' Answers to Brand Image (X2)

Source: processing data (2022)

 Information: indicator is found in the CM1 indicator which states that

 CM1 = Lazada products have a good reputation "Lazada products have a good reputation." which has an
 CM2 = Lazada products have benefits for customers average number of 4,300. This declares that Lazada
 CM3 = Lazada products have unique characteristics customers use Lazada products because they know they
have a good 'name' among their surroundings and highest
Based on Table 4 it shows that in variable X2, the indicator is the CM2 indicator which states that "Lazada
lowest indicator is the CM3 indicator which states that products have benefits for me" which has an average of
"products in Lazada have characteristics" which has an 4,300. It declares that lazada products used by customers
average number of 4,090. This can be indicated that Lazada have good effectiveness and efficiency values for customers
products do not have special characteristics that distinguish in every activity.
them from other e-commerce products. While the highest

E. Variable Description of Customer Satisfaction (Z)

Distribution of Answer
Indicator Code Total Mean Median Min Max Std. Deviation
STS TS N S SS
KP1 0 9 5 44 22 80 4,090 4 2 5 0,854
KP2 0 5 8 43 24 80 4,160 4 2 5 0,775
KP3 0 1 2 50 27 80 4,330 4 2 5 0,570
KP4 0 1 2 51 26 80 4,320 4 2 5 0,566
Total 0 16 17 188 99 360 4,225 16 8 20 2,765
Table 5: Analysis of Respondents' Answers to Customer Satisfaction (Z)

Source: Processed data (2022)

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ISSN No:-2456-2165
 Information: indicator is found in the KP1 indicator which states that
 KP1 = Customer Buying back Lazada products "customers repurchase Lazada products" which has an
 KP2 = Customers say good things about Lazada to average of 4,090. This can be indicated that Lazada's
others products are less attractive so that customers have less desire
 KP3 = Customers pay little attention to other brand to buy back products on Lazada. Meanwhile, the highest
advertisements indicator is found in the KP3 indicator which states that
 KP4 = Buying other products through Lazada "customers do not pay attention to other brands." which has
an average number of 4,330. This indicates that Lazada
Based on Table 5 on the Z variable, the lowest customers prioritize Lazada in their online shopping routine.

F. Variable Description of Customer Loyalty (Y)

Indicator code Distribution of Answer

Total Mean Median Min Max Std.Deviation
STS TS N S SS
LP1 0 4 5 46 25 80 4,220 4 2 5 0,719
LP2 0 3 7 47 23 80 4,200 4 2 5 0,696
LP3 0 0 3 43 34 80 4,410 4 3 5 0,552
LP4 1 1 2 49 27 80 4,300 4 1 5 0,659
Total 1 8 17 185 109 360 4,283 16 8 20 2,626
Table 6: Analysis of Respondents' Answers to Customer Loyalty (Y)

Source: Processed data (2022)

 Information: recommend products to others" which has an average of

 LP1 = Customer makes repeat purchases 4410. This indicates that Lazada customers always buy
 LP2 = Customer purchases between Lazada product Lazada products and recommend them to others.
lines
 LP3 = The customer recommends the product to others G. Results of Partial Least Square Analysis
The data processing technique in this study uses the
 LP4 = Customers are not affected by products from
SEM method based on Partial Least Square (PLS) where the
other brands
data processing uses the SmartPLS 4.0 program.
Based on Table 6 on all Y variables, the lowest
H. Measurement Model Test Results (Outer Model)
indicator is in the LP2 indicator which states that
The outer model consists of 3 (three) stages,
"Customers buy between Lazada product lines" which has
namelyConvergent Validity by using the correlation
an average of 4,200. This can be indicated that Lazada
between indicator scores and construct scores, Discriminant
customers lack the desire to buy other Lazada products, and
Validity by comparing values in the cross loading table, and
only buy certain products that are always purchased when
Composite Reliability values (Simamora, 2017).
shopping online at Lazada. Whereas the highest indicator is
found in the LP3 indicator which states that "Customers

I. Convergent Validity

Variable Indicator Outer Loading Specification Information

KP2 0.721 >0.7 Valid
Customer Satisfaction (Z) KP3 0.922 >0.7 Valid
KP4 0.880 >0.7 Valid
LP1 0.745 >0.7 Valid
Customer Loyalty (Y) LP2 0.724 >0.7 Valid
LP3 0.766 >0.7 Valid
LP4 0.794 >0.7 Valid
Customer Experience (X1) PP1 0.814 >0.7 Valid
PP2 0.797 >0.7 Valid
PP3 0.765 >0.7 Valid
Customer Experience (X1) PP4 0.747 >0.7 Valid
PP5 0.851 >0.7 Valid
CM1 0.869 >0.7 Valid
Brand Image (X2) CM2 0.822 >0.7 Valid
Table 7: Modified Convergent Validity Test Results

Source: Processing data (2022)

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ISSN No:-2456-2165

Fig. 1. Results of the PLS Algorithm (Modification)

Source: SmartPLS 4 processing results (2022)

The results of the modified Convergent Validity test in Table 7 and Figure 1 show that all indicators meet Convergent
Validity because they have a Loading Factor value above 0.7.

J. Discriminant Validity

Customer Customer Customer

Variable Brand image
satisfaction loyalty Experience
Brand image 0.848
Customer satisfaction 0.723 0.939
Customer loyalty 0.845 0.772 0.895
Customer Experience 0.611 0.813 0.603 0.820
Table 8: Discriminant Validity Test Results (Fornell-Lacker Criterion)

Source: Processing data (2022)

Based on Table 8 it shows that Fornell Larcker that each variable has a larger number when compared to other variables so
that the variables used are valid

K. Heterotrait Montriat Ratio Of Correlations (HTMT)

Brand image Customer Customer Customer

satisfaction loyalty Experience
Brand image
Customer satisfaction 0.873
Customer loyalty 0.676 0.801
Customer Experience 0.773 0.637 0.558
Table 9: Test Results for Heterotrait-Monotriate Ratio Of Correlations(HTMT)

Source: Processing datawith SmartPLS,2022

Based on Table 9, it shows that the Heterotrait-Monotriat Ratio Of Correlations (HTMT) test shows that all HTMT values
can be stated that all constructs have discriminant validity based on HTMT calculations.

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ISSN No:-2456-2165
L. Variance Inflating Factor (VIF)

VIF
X1_1 2.057
X1_2 3.667
X1_3 1.692
X1_4 1.786
X1_5 4.228
X2_1 1.229
X2_2 1.228
Z2 1.422
Z3 2.913
Z4 2.420
Y1 1.418
Y2 1.300
Y3 1.664
Y4 1.748
Table 10: Variance Inflation Factor (VIF) Test Results

Source: Processing datawith SmartPLS,2022

Based on the results from Table 4.10 regarding the results of the Variance Inflation Factor (VIF) test, it shows that all VIF
values < 10, it can be stated that all constructs are valid without multicollinearity.

M. Structural Model Test Results (Inner Model)

 Collinearity statistical test

Brand image Customer satisfaction Customer loyalty Customer Experience

Brand image 1.771
Customer satisfaction 1.000
Customer loyalty
Customer Experience 1.771
Tabe 11: HasilPengujianVarianceInflationFactor(VIF)

Source: Processing datawith SmartPLS

Table 11 shows that the overall variance inflation factor (VIF) value for each indicator is <10.00, so it can be said that the
data does not have collinearity problems.

 Discriminant Validity Test

Customer satisfaction Customer loyalty Customer Experience Brand Image

Indicator
(Z) (Y) (X1) (X2)
KP2 0.747 0.606 0.664 0.406
KP3 0.922 0.742 0.717 0.623
KP4 0.880 0.724 0.765 0.728
Z1 0.638 0.792 0.747 0.451
Z2 0.746 0.841 0.765 0.416
Z3 0.662 0.766 0.518 0.644
Z4 0.638 0.794 0.552 0.669
PP1 0.737 0.737 0.814 0.591
PP2 0.638 0.638 0.797 0.451
PP3 0.746 0.746 0.779 0.416
PP4 0.562 0.562 0.797 0.670
PP5 0.681 0.681 0.851 0.524
CM1 0.603 0.638 0.552 0.869
CM2 0.721 0.555 0.567 0.822
Table 12: Discriminant Validity Test Results (Cross Loadings)

Source: Processing data (2022)

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The results of Cross Loading in the Discriminant that all indicators meet discriminant validity, because they
Validity analysis can be seen in table 12. It is known that already have the highest cross-loading value in the intended
each cross loading indicator for each variable is greater than construct compared to the cross-loading value in other
the cross loading indicators of other variables. This shows constructs (green column).

Specification AVE
Customer satisfaction (Z) >0.5 0.715
Customer loyalty(Y) >0.5 0.574
Customer Experience 1(X ) >0.5 0.633
Brand Image (X2) >0.5 0.715
Table 13: AVE (Average Variance Extracted) test results

Source: Processing data (2022)

From Table 13 above it can be seen that the customer the brand image variable has an AVE value (0.715). Thus it
satisfaction variable has an AVE value (0.715), the customer can be stated that each variable in this study has a good
loyalty variable has an AVE value (0.574), then the AVE value.
customer experience variable has an AVE value (0.633), and

 Composite Realibility

Cronbach’s Composite
Variable Information
Alpha Reliability
Customer satisfaction (Z) 0.821 0.883 Reliable
Customer loyalty (Y) 0.753 0.751 Reliable
Customer Experience(X1) 0.855 0.859 Reliable
Brand Image (X2) 0.846 0.883 Reliable
Table 14: Results of Testing the Validity and Reliability of the Construct

Source: Processing data (2022)

Based on the results of table 14 which explains the above the minimum value of ≥ 0.7. So that from the data
Composite Reliability test based on Composite Reliability that has been owned it can show that each variable in this
and Cronbachs Alpha shows that each variable has a lift study is reliable and can be tested for further research.

N. Structural Model Test Results (Inner Model)

 Coefficient of Determination R-Square (R2)

Variable R-Square
Customer satisfaction (Z) 0.765
Customer loyalty (Y) 0.795
Table 15: R-Square Test Results

Source: Processing data (2022)

The Structural Model indicates that the model on the the same company while 23.5% can be influenced by other
purchase intention variable can be said to be strong because variables not examined. . Then attitude produces an R-
it has a value above 0.67. Customer satisfaction produces an square value of 0.795 or 79.5% meaning that Customer
R-square value of 0.765 or 76.5%, meaning that customer Loyalty can be explained by Repetition, Referral Refers
satisfaction can be explained by creating word of mouth, Other and Retention while 20.5% can be influenced by other
focusing on one brand and making purchasing decisions at variables not examined.

 Coefficient of Determination f-Square (f2)

Variable f-square Information

Brand Image>Customer satisfaction 0.256 Medium
Customer satisfaction >Customer Loyalty 0.892 Strong
Customer Experience >Customer satisfaction 0.685 Strong
Table 16: f-Square Test Results

Source: Processing data (2022)

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The results of the F-Square test show that the relationship. This is shown from the f-square value of 0.256
relationship between Brand Image and Customer while other relationships have a strong value because they
Satisfaction has a relatively medium or moderate have values above 0.35.

 Predictive Relevance Value Test (Q-Square)

Variable SSO SSE Q2 (=1-SSE/SSO)

Customer Loyalty 1.280.000 558.842 0.563
Customer satisfaction 600.000 372.680 0.379
Table 17: Construct Cross-Validation Redundancy Test Results

Source: Processing data (2022)

Based on table 17, the results of the construct cross- Customer Satisfaction variable. The calculation results show
validation redundancy test show that the results of predictive a predictive value of relevance > 0, so the model can be said
relevance calculations show a Q2 value = 0.563 in the to be feasible and has a relevant predictive value.
Customer Loyalty variable and a Q2 value = 0.379 in the

 Hypothesis Testing Results

Original Standard T- P
No Hypothesis Information Result
Sample Deviation Statistics Values
Customer Experience - Significant
H1 Customer satisfaction 0.685 0.148 4.620 0.000 Positive Accepted

Brand Image- Positive

H2 Not
Customer satisfaction 0.256 0.169 1.517 0.129 Accepted
Significant
Customer satisfaction - Significant
H3
Customer Loyalty 0.892 0.025 35.686 0.000 Positive Accepted
Table 18: Hypothesis Testing Results

Source: Processing data (2022)

O. Analysis of the variable customer experience on based on experience to the effects of perceived selection,
customer satisfaction (H1) selective distortion, and selective retention. The results of
Based on Table 18, it shows that customers get a good the research conducted do not support the results of research
experience when purchasing products at Lazada even during conducted by (Setyowati, 2017), (Dennisa, et al 2016),
the Covid-19 pandemic so as to create customer satisfaction (Sianipar, 2019), (Kurnia, 2018), and (Kurniawati, et al
for the company. Technological developments are felt by the 2014) where Citra The brand does not have a significant
community, one of which is to provide convenience in effect on customer satisfaction as shown by the results of the
shopping for anything with the technology they have. When T-statistic value of 1.517, the value of the Original Sample
someone gets an experience in shopping, it will give a good is 0.256, the P Values are 0.129. Standard Deviation 0.169.
or bad response that can be felt by customers when using The T-statistic value is greater than the T-table value of
and feeling the product or service. The better the experience 1.96, the Original Sample value shows a positive value and
that is obtained by the customer, it can also increase the P Values show less than 0.05 meaning that the better the
customer satisfaction with the company. This is in line with brand image that the company has, it cannot provide
Febriana (2014) saying that customer experience has a customer satisfaction. Therefore, it was concluded that this
significant influence on consumer satisfaction and research occurred of course because it was influenced by the
experience. conditions faced by Lazada e-commerce during the Covid-
19 pandemic, which made it difficult for Lazada to increase
P. Variable Analysis Effect of brand image on customer customer satisfaction through brand image, because of
satisfaction (H2) course we should understand that all other e-commerce also
Based on Table 18 shows, the second hypothesis (H2) participate in improving the same thing.
which states that Brand Image has a positive but not
significant effect on Customer Satisfaction, is rejected. That
is, the brand image variable is not able to have a large
influence on Customer Satisfaction. That with a brand image
owned by a company, it is not a benchmark for customers to
get satisfaction with the desired service and product. In
other words, customer beliefs can vary from true attributes

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Q. Variable Analysis of Customer Satisfaction on Customer The practical implication of this research is that
Loyalty (H3) Lazada companies still have to pay attention to changing
Based on Table 18 shows that the third hypothesis (H3) times, or what can be said to be "trending" so that they are
which states that Customer Satisfaction has a positive effect not left behind in information to carry out promotions that
on Customer Loyalty, is accepted. This research shows that can attract customers. Lazada must maintain the existence of
the Customer Satisfaction variable is able to have a positive its customers, so that Lazada customers can effectively
and significant influence on this research, which is one of recommend Lazada products to others, and companies need
the main elements in influencing Lazada Customer Loyalty to maximize the quality of the products available so that
during the Covid-19 pandemic. The results of the research they can be selected properly in order to improve the quality
conducted support the results of research conducted by of the products available on the Lazada store.
(Viktor, 2015), (Dennisa et al 2016), (Aryani et al, 2015),
and (Normasari et al 2013) where customer satisfaction has ACKNOWLEDGMENT
a positive and significant effect on customer loyalty. A high
level of customer satisfaction can certainly build and First of all, I would like to thank profusely to those
increase customer loyalty in Lazada e-commerce. When involved in the Faculty of Economics and Business,
customer loyalty increases, of course the good impact will University of Marcubuana for the great contribution they
be felt by Lazada e-commerce, as well as other benefits have made to the creation of this Journal. I hope that the
customers will tell people around them and so on. This is a ideas contained in this journal can be additional theoretical
free promotional tool for the company and makes it more and practical knowledge for many parties.
confident because it gets a positive response from REFERENCES
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