PREDICTING BRAND LOYALTY IN THE CASE OF BUKALAPAK AS AN ONLINE MARKETPLACE

Abstract

This study examined the relationship between network externalities, social norms, self-congruence, characteristics of the brand page, brand trust, brand commitment, brand satisfaction, and brand loyalty. Online questionnaire was distributed to people in JABODETABEK area. Data were collected from 408 users of Bukalapak. Structural equation modeling was used to compile the research, the data were analysed with the software SmartPLS 3, validating the proposed model. The results revealed that in the case of Bukalapak, selfcongruence and characteristics of brand page had significant influence on the development of brand trust, brand commitment, and brand satisfaction, while social norms have significant influence only toward brand commitment. Brand commitment found to be the only mediating variable which has significant influence on brand loyalty. This study presented a case for a specific brand in the e-commerce industry which was Bukalapak. The respondents were concentrated in the JABODETABEK area to generation Y and Z. This study has elements of support for management, Bukalapak should turn attention to the creation of positive activity, online campaign, and authentic value to retain the users and restore positive image. The researcher shifts the focus on brand loyalty because brand loyalty is necessary to be examined since it captures the loyalty behaviour of the customer toward the brand and a prominent requirements for marketplace to keep their traffics.