ABSTRACT

The rapid growth of internet users has facilitated the growth of e-commerce business in Indonesia. This study aims to analyze the effect of electronic service quality and perceived justice of electronic service recovery on the satisfaction and loyalty of online shoppers. Survey questionnaire was conducted on 338 online shoppers in Padang, Indonesia. Research instrument of this study was adapted from previous studies. Research data were analyzed through structural equation modelling with the help of Smart PLS 3.0 software. The results of this study show that electronic service quality has positive significant effect on satisfaction and loyalty. In addition, perceived justice of electronic service recovery also has positive significant influence on satisfaction and loyalty. Furthermore, it is found that satisfaction has positive significant effect on loyalty.