Syntax Literate: Jurnal Ilmiah Indonesia p–ISSN: 2541-0849 e-ISSN: 2548-1398

Vol. 9, No. 12, Desember 2024

 

POWERING UP USER LOYALTY: EXPLORING MULTIDIMENSIONAL PLATFORM VALUE AND SERVICE QUALITY IN THE PLN MOBILE ELECTRICITY SERVICE APPLICATION PLATFORM

                                                                                                                    

Fristyan Pradipta1*, Daniel Tumpal H Aruan2

Universitas Indonesia, Indonesia1,2

Email: [email protected]1*

 

Abstract

The objective of this research is to explore how digital interactive platforms can assist companies in cultivating brand loyalty for their platforms. This study employs a quantitative approach, collecting a total of 310 questionnaires from PLN Mobile users, a platform operated by the largest electricity company in Indonesia. Respondents were selected using non-probability random sampling, and Structural Equation Modeling was employed as the analysis tool. The findings reveal that among the three multidimensional platform values (functional, cost, and contextual) only functional platform value lacks significant influence on perceived value. Additionally, within the context of PLN Mobile application users, service quality demonstrates a positive and significant direct influence on perceived value, platform brand image, and platform brand loyalty. Furthermore, perceived value exhibits a significant direct influence on continuance intention and platform brand image, although it does not significantly influence platform brand loyalty directly in this context. This research offers a new theoretical framework and managerial insights for value creation in digital interactive platforms. It contributes to the body of knowledge by demonstrating the relationships between various factors influencing brand loyalty in the context of digital platforms. The implications of the research findings on management and business practices are significant. Companies can utilize the insights provided by this research to enhance their digital platform offerings, improve customer satisfaction, and ultimately foster brand loyalty. Additionally, policymakers can use these findings to shape regulations and policies that promote innovation and competitiveness in the digital platform in service industry.

Keywords: Continuance Intention, Multidimensional Platform Value, Perceived Value, Platform Brand Image, Service Quality, Platform Brand Loyalty

 

Introduction

In 2023, Indonesia reached 78.19 percent internet penetration, encompassing 215,626,156 people out of a total population of 275,773,901 people (APJII, 2023). As digital information and communication technology continues to reshape the economy, many academics and practitioners concur that platform, as a category of digital creative products, play a pivotal role for companies, including traditional ones, in establishing distinct competitive advantages (He & Zhang, 2022).

Platforms are becoming increasingly popular, and businesses of all sizes, ranging from startups to established companies, are seeking to integrate digital platforms into their business models (Kapoor et al., 2021; Pandey & Rupnawar, 2022). With the significant trend of companies digitizing their services through platforms, PT. PLN (Persero) Indonesian state-owned company, and as one of the market share leaders of electricity providers, has undergone a transformation by digitizing its services through an interactive mobile application platform, known as PLN Mobile. Since its launch in 2020, user growth has nearly doubled in just one year, going from 18 million users in 2021 to 35 million users in 2022 (PLN, 2022).

Apart from PLN carrying out transformations in its core services, such as electrical installations, electricity bills, and outage management, PLN Mobile application also functions as a “super-app” that caters to various electricity-related needs. These include services such as ICONET, an internet provider owned by a PLN subsidiary, ListriQU, a home electrical installation service owned by other subsidiaries, and services supporting electric vehicle usage, as well as offerings beyond the electricity domain, such as marketplace services. Through its mobile application, PLN has introduced additional features that extend beyond the scope of their primary business operations. This positions as a super app make PLN Mobile had the potential to became the main engine of the PLN services digitalized transformation as a whole.

From a practical standpoint, this makes it intriguing to conduct a more in-depth study on the impact of platform multi-functionality from its value and services quality on perceived value, brand image, usage intensity, and platform loyalty. Numerous studies have examined the various types of value that digital interactive platforms deliver and their interrelationships. Value generated by a platform often leads to perceived value, which directly influences usage loyalty among customers and the intensity of their platform use (Maroufkhani et al., 2022). Additionally, research has categorized the created value into primary aspects like functional value, cost value, and contextual value. These aspects contribute to expanding a product's market share when offered through a platform, establishing connections through brand engagement and loyalty across the region (He & Zhang, 2022).

Beyond value creation, quality also plays a significant role in shaping customer brand loyalty (Omoregie et al., 2019). A platform's service quality can also exert an influence on brand loyalty through trust (Shankar & Jebarajakirthy, 2019) and brand image (Omoregie et al., 2019). Conversely, the role of perceived quality in relation to brand loyalty within the digital services context holds a significant antecedent influence on a company's offerings (Garcia et al., 2020). Marketing research developed the SERVQUAL service quality construct to measure consumer perceptions of service quality (Parasuraman et al., 1985). However, recently only a small number of studies have included service quality to measure the success of technology implementation (van Dat, 2020).

The value creation dimension sees service quality as an important antecedent that has a direct influence in building brand image, perceived value and also brand loyalty (Chen & Liu, 2017). Perceptions of low quality and/or image generally stem from exposure to negative information (e.g., advertising, third-party evaluation ratings, word-of-mouth communications) and/or personal experiences (Homer, 2008). The importance of quality of a service is an important aspect in value creation where it is expected to be able to increase brand image, intention to use and the ability of a platform to increase the loyalty of its users.

Recently, the perspective of continuance intention, or the intention to use smart technology (such as smart devices and mobile applications), has evolved into the study of consumer behavior, encompassing how consumers behave when utilizing smart devices or mobile applications in their daily lives (Nikhashemi et al., 2021). In the expanding economic wave of the 'new technology lifestyle,' the concept of usage intention pertains to an individual's willingness to assess and embrace the idea that technology usage can be useful, helpful, and can facilitate daily needs (Chou et al., 2020). Several studies indicate that usage intention has an influence on the relationship between reputation and brand image regarding perceived value and the reputation of a platform (Huang, 2022). Furthermore, usage intention also plays a crucial role as a variable mediating perceived value's impact on customer loyalty (Maroufkhani et al., 2022). Therefore, in this study, the role of usage intention appears to be integral in enhancing platform brand loyalty.

This research endeavors to demonstrate that PLN, as one of the largest state-owned companies in Indonesia with a long-established history, is capable of digitally transforming its services through its Super Apps mobile platform. Specifically, this study addresses the following questions: 1. Does the multi-dimensional platform value which is functional, cost and contextual value and service quality of the PLN Mobile positively impact the platform perceived value? 2. Does the perceived value of the PLN Mobile positively impact continuance intention, platform brand image and loyalty? 3. Does the service quality of the PLN Mobile platform positively impact the platform brand image and loyalty? 4. Does PLN Mobile's perceived value positively mediate the influence of service quality on platform brand image and brand loyalty? 5. Does continuance intention positively mediate the influence of perceived value and platform brand image on platform brand loyalty? And 6. Does platform brand image positively mediate the influence of perceived value and service quality on platform brand loyalty?

By investigating these six issues, the study's innovative contributions include the following: Firstly, this study aims to determine the extent of the influence value and quality has on platform brand image and loyalty, as well as the role that each multidimensional function in creating value (functional, cost, and contextual value) plays in this process. Secondly, this study also seeks to substantiate previous theories highlighting the significant role of perceived value as a mediating variable between service quality on platform brand image and loyalty. Third, this study endeavors to establish that platform brand image and continuance intention also actively contribute to the enhancement of platform brand loyalty.

The relevant findings could provide traditional businesses with valuable strategic insights for leveraging digitalized interactive platforms and associated platform products to drive business model transformation. This conceptual section is followed by hypotheses related to multi-dimensional platform value, service quality, platform brand image, continuance intention, and platform brand loyalty. Subsequently, the research presents methodologies and analysis findings, concluding with a discussion of our results, their theoretical and practical implications, the study's limitations, and prospects for future research.

 

Hypotheses Development

Classification of digitalized interactive platform value

The types of value creation in the context of digital interactive platforms are divided into functional, cost, contextual, and overall platform values (He & Zhang, 2022). This overall value will later serve as a benchmark for evaluating the usefulness of a product or service based on the perceived value of the product or service(Ortiz et al., 2016). In the context of its existence, such value creation can be considered a dimension of a platform, and from the perspective of the logic of change, these values are important antecedents to drive platform value creation (i.e., digital interactive platforms can create, maintain, and expand platform value by strengthening these three value dimensions) (He & Zhang, 2022).

The importance of functional value as a predictor of perceived value is defined as the perceived usefulness of product and service attributes, emphasizing its role in shaping customer perceptions (Roig et al., 2006). The interaction between benefits and costs is proven to have a significant influence on the perceived value of digital services, further emphasizing the importance of cost as a predictor of perceived value (Park & Kim, 2013). Additionally, contextual value, which involves the integration of contextual offers such as timeliness and spatial relevance, is an important part of perceived value (Le & Wang, 2021).

In recent years, successful digital interactive platforms have effectively integrated functional, cost, and contextual values, which is a fundamental way for them to create competitive differentiation and gain a competitive advantage (Wade et al., 2016). This study aims to prove the influence of these values in the PLN Mobile application so that the following research hypothesis is obtained:

H1a: Functional value has a positive effect on perceived value.

H1b: Cost value has a positive effect on perceived value.      

H1c: Contextual value has a positive effect on perceived value.

 

Service Quality, Perceived Value and Platform Brand Loyalty

Various studies emphasize the significance of service quality in influencing different dimensions of perceived value for customers (Chen & Liu, 2017; van Dat, 2020). Service quality features, which measure tangibility, empathy, reliability, and responsiveness, are positively correlated with consumer perceived value (Ryu. et al., 2011). Since value is the ratio of quality to price, a positive relationship is expected between quality and the value of a brand's product (Yang & Wang, 2010). This suggests that when customers perceive high service quality, they are inclined to assign greater value to the service they receive, highlighting the importance of service quality in shaping customer perceptions and influencing perceived value (Zeithmal, 2001).

The ultimate objective of the marketing team is to retain existing customers, attract new ones, convert them into loyal and repeat customers, and build and maintain that loyalty (Maroufkhani et al., 2022). With loyalty, changes in pricing dynamics have no impact on consumer behavior (Aaker, 1991). The positive promotion of services is also a key advantage in increasing application usage within the context of brand loyalty platforms. Numerous prior studies establish a direct link between value and loyalty (Maroufkhani et al., 2022), both directly and indirectly (He & Zhang, 2022).

In the digitalized service concept, service quality aspects such as reliability, privacy, and security directly impact brand loyalty (Shankar & Jebarajakirthy, 2019). Other research also underscores satisfaction as a mediating variable, playing a positive role between perceived service quality and brand loyalty (Boubker & Naoui, 2022). This study aims to explore the contextual relationship between perceived value and service quality in the mobile platform realm and its influence on brand loyalty, leading to the formulation of the following hypothesis:     

H2: Service Quality has a positive effect on perceived value.

H3: Perceived value has a positive effect on platform brand loyalty.

H4: Service Quality has a positive effect on platform brand loyalty.

 

Service Quality, Perceived Value and Platform Brand Image

Value creation enhances the company's image (Pitt et al., 2020). Additionally, various studies indicate that the ability to convey perceived value affects brand image. This suggests that the higher the perceived value in society, the stronger the societal brand image (Wijaya et al., 2020). PT. PLN (Persero) stands out as a dominant electricity supply company in this sector, holding over 90% of the national market share as a state-owned entity. Therefore, this study aims to assess the extent to which the perceived value derived from the digitalization of services through PLN Mobile influences the Brand Image Platform.

Furthermore, product quality significantly shapes a company's brand image. Poor product quality can have a detrimental impact on the company's image, but with timely corrections, it can lead to a positive brand image (Widiani et al., 2022). Numerous previous studies affirm that service quality affects brand image (Chen & Liu, 2017; Dam & Dam, 2021; Fajariah et al., 2016; Widiani et al., 2022; Wijaya et al., 2020). In the context of the mobile platform, empirical evidence indicates that online service quality influences brand image (Garcia et al., 2020; Mariano et al., 2022). This study aims to explore the impact of the relevance of value and quality on brand image, resulting in the following hypothesis:

H5: Perceived value has a positive effect on platform brand image.

H6: Service Quality has a positive effect on platform brand image.

 

Perceived Value, Platform Brand Image and Continuance Intention

Perceived value has been demonstrated to exert a significant influence on continuance intention in various research contexts, particularly concerning its use on mobile platforms. For instance, within the realm of mobile shopping applications, it was observed that perceived value strongly and positively affects consumer continuance intention (Dobre et al., 2023). Additionally, in the context of social commerce, perceived value is recognized as crucial for the continuance intention of a service and serves as the primary determinant of purchasing intention (Murillo-Zegarra et al., 2020). The consistent findings from these studies underscore the importance of perceived value as a determinant of continuance intention in the context of diverse digital services.

Furthermore, brand image also exerts a positive influence on continuance intention. Across various service sectors, there exists empirical evidence justifying the significant impact of brand image on repurchase intention (Ayutthaya, 2013; Prabowo et al., 2020; Ratasuk, 2021). Moreover, within various types of digital services, brand image significantly influences purchase intention, demonstrating its impact on consumer decision-making and continuance intention (Jaya & Prianthara, 2020; Tam et al., 2022). Thus, this study formulates the following research hypothesis:

H7: Perceived value has a positive effect on continuance intention.

H8: Platform brand image has a positive effect on continuance intention.

 

Platform Brand Image, Continuance Intention and Platform Brand Loyalty

The substantial influence of continuance intention on brand loyalty has been substantiated in various types of research across diverse service and industrial sectors. In the service sector, spanning from conventional to digital, several studies highlight the crucial role of continuance intention as a variable influencing brand loyalty (Hew et al., 2016; Sadli et al., 2022). Additionally, in the mobile platform sector, several studies related to the impact of continuance intention on brand loyalty also validate a significant correlation between the two (Al Amin et al., 2023).

Furthermore, brand image also exerts a positive influence on brand loyalty, as several studies emphasize its positive impact on customer loyalty, reinforcing the significance of brand image in fostering brand loyalty (Fitriani & Paramita, 2022; Rahmatulloh et al., 2019). Users or consumers tend to favor a strong and impressive brand image, leading to a positive orientation towards customer satisfaction and loyalty, thus strengthening the influence of brand image on brand loyalty (Dam & Dam, 2021). The decision to digitize services through PLN Mobile must be complemented by the value and quality of the resulting platform. Continuance intention and Platform Brand Image are deemed integral components in establishing the Brand Loyalty Platform on PLN Mobile, resulting in the formulation of the following research hypothesis:

H9: Continuance intention has a positive effect on platform brand loyalty.

H10: Platform brand image has a positive effect on platform brand loyalty.

 

The mediating role of Perceived Value

Several studies have established the mediating role that perceived value plays in the relationship between Service Quality and Brand Loyalty. Chen & Liu (2020) elucidated the significant mediating role of perceived value in various variable relationship constructs within the aviation services sector. Additionally, specific research indicates that perceived value acts as a mediator in the relationship between service quality and complete customer loyalty (Hasby et al., 2023). As a result, this study posits the following research hypothesis:

H11: Perceived value mediates the relationship between Service Quality and Platform Brand Loyalty

 

The mediating role of Platform Brand Image

In several research analysis results, we have also identified the role of brand image as a mediating variable in the relationship between Service Quality and Brand Loyalty. Chen & Liu (2020) explained the significant mediating role of brand image in various variable relationship constructs within the aviation service sector. Additionally, there is research stating that brand image plays a significant role in mediating the relationship between service quality and customer loyalty (R. S. Pratiwi et al., 2021).

The impact of perceived value on brand image has been demonstrated in various research analysis results, showing a significant coefficient relationship (Ayutthaya, 2013; Chen & Liu, 2017; Wijaya et al., 2020). On the other hand, the influence of brand image on brand loyalty has also been noted in various research studies (Abdullah, 2015; Dam & Dam, 2021; Hasby et al., 2023). Based on various empirical research findings, this study formulates the following research hypothesis:

H12: Platform brand image mediates the relationship between Service Quality and Platform Brand Loyalty

H13: Platform brand image mediates the relationship between Perceived Value and Platform Brand Loyalty

 

The mediating role of Continuance Intention

Specifically, in his research, Nguyen (2020) asserted that perceived value and social commerce continuity intention are crucial variables with a positive impact on brand loyalty. Additionally, this study proposes the existence of a mediating role for social commerce continuance intention in the relationship between perceived value and brand loyalty. The reference to this study is pertinent because it directly addresses the mediating role of continuance intention between perceived value and brand loyalty.

The impact of brand image on continuity has been highlighted in various empirical study results, revealing a positive and significant effect on the relationship between variable constructs (Prabowo et al., 2020; Ratasuk, 2021; Savitri et al., 2021; Tam et al., 2022). Furthermore, the influence of continuance intention on brand loyalty has also been asserted in various research studies (Chalomba & Duh, 2019; Hew et al., 2016; Maroufkhani et al., 2022). Therefore, based on various empirical research findings, this study formulates the following research hypothesis:

H14: Continuance Intention mediates the relationship between Perceived Value and Platform Brand Loyalty

H15: Continuance Intention mediates the relationship between Platform Brand Image and Platform Brand Loyalty

                                                 

 

Figure 1. The Conceptual Research Model

 

Research Method

This research is aimed to capture the current condition of apps offered by traditional firms, which are used on mobile devices as digitalized interactive platforms. First, the PLN Mobile app was selected as the research object. As the largest electricity company in Indonesia, PLN has a large-scale and diverse consumer group. This study applied a quantitative research method. Quantitative research is a deductive research method that uses measurement and sampling techniques for data collection (Hair et al., 2019).

Because the criteria for selecting respondents were established before the data collecting stage, the samples were selected using a purposive sampling technique (Sekaran & Bougie, 2016). The samples selected in this study were PLN Mobile application users who had used the application for at least the past 6 months and were at least 17 years old. The questionnaire was distributed online using Google Forms as a method of data collection, which was distributed through personal connections, social media and Instagram ads.

In this study, there are eight variables of interest, namely, functional platform value, cost platform value, contextual platform value, perceived value, service quality, platform brand image, continuance intention and platform brand loyalty (Table 1). The measure of functional, cost and contextual platform value was adapted from He & Zhang (2022) and comprises ten items. The measure of perceived value and service quality was modified form Chen & Liu (2017) and comprises eight items. The measure of platform brand image were adapted from Dam & Dam (2021) and Widiani et al., (2022). The measure of continuance intention was modified from a previous study conducted in the PLN Mobile context, comprising three items (Maroufkhani et al., 2022; Nikhashemi et al., 2021). The measure of platform brand loyalty in PLN Mobile from He & Zhang (2022) and Maroufkhani et al., (2022) that consist three items.

To make sure the respondents would fully grasp the questions, the questionnaire was translated into Indonesian. The items used were operationalized using a six-point Likert scale ranging from “highly disagree” to “highly agree”. This study makes use of Smart PLS 3.2.9 software and the partial least squares structural equation modeling (PLS-SEM) methodology. PLS-SEM is preferred because of its reliable outcomes and adaptability to different data assumptions, such as the lack of a normal distribution requirement (Hair et al., 2019). Along with hypothesis testing, the study includes evaluating the measurement model, which shows how measured variables represent constructs, and the structural model, which illustrates the links between constructs (Hair et al., 2019).

 

Table 1. Measurement of items

Construct

Code

Indicator

Functional Platform Value;
(He & Zhang, 2022)

FU1

The PLN Mobile application can effectively meet daily electricity needs.

FU2

The PLN Mobile application helps complete tasks related to electricity needs, electrical support and others, according to the features offered.

FU3

The PLN Mobile application allows me to make better decisions.

Cost Platform Value;
(He & Zhang, 2022)

CO1

The PLN Mobile application helps me to save more costs. (Where I don't need to come to the PLN office to take care of all kinds of electrical needs)

 

CO2

The PLN Mobile application provides cheaper service products. (Such as administration fees for new installations, token purchases, electricity payments, etc.)

Cost Platform Value;
(He & Zhang, 2022)

CO3

The PLN Mobile application provides other economic benefits. (Such as promos, discounts, prize draws etc.)

CO4

All types of service transactions on the PLN Mobile Application provide more effective and efficient services.

Contextual Platform Value;
(He & Zhang, 2022)

CN1

The PLN Mobile application provides important information.

CN2

The PLN Mobile application provides interesting information.

CN3

The PLN Mobile application provides correct information.

Perceived Value;
(Chen & Liu, 2017)

OV1

The PLN Mobile application provides all types of services and products to meet my various possible requests.

OV2

The PLN Mobile application provides real-time information that supports me in making the right decisions.

OV3

The PLN Mobile application has an active communication pattern (such as complaint notifications and regular application tracking notifications).

Service Quality;
(Chen & Liu, 2017)

PQ1

The PLN Mobile application has good service quality.

PQ2

The possibility of the PLN Mobile Application functioning properly is very high

PQ3

The possibility of the PLN Mobile Application being reliable is very high

PQ4

The interface or display for using the PLN Mobile Application is easy to understand and not confusing.

PQ5

Updating the PLN Mobile Application is always appropriate and on target

Platform Brand Image;
(Dam & Dam, 2021)
(Widiani et al., 2022)

BI1

I have a positive opinion of the services provided by PLN Mobile.

BI2

The PLN Mobile application is able to represent the information and services provided by PT PLN (Persero).

BI3

The services provided by the PLN Mobile Application produce satisfactory output

BI4

The PLN Mobile application increases my trust in PT PLN (Persero) services.

Continuance Intention;
(
Nikhasemi et al., 2021)

(Maroufkhani et al., 2022)

UI1

I intend to always use the PLN Mobile Application service on an ongoing basis.

UI2

I would like to get more information about the PLN Mobile application

UI3

I prefer to use the PLN Mobile Application rather than other alternative types of service.

Platform Brand Loyalty;
(He & Zhang, 2022),
(Maroufkhani et al., 2022)

BL1

I would like to recommend the PLN Mobile Application to others.

BL2

I feel the PLN Mobile Application is the best solution to answer the need for the services offered.

BL3

I would like to give the PLN Mobile Application a positive review of the services provided.

 

Result and Discussion

Respondent Profile

 The criteria for respondents in this study were being over 17 years old when filling out the questionnaire and having used the PLN Mobile mobile app within the last 6 months. Of the 310 respondents in the study, 47.42% were men, and 52.58% were women. The majority of respondents were in the age range of 27–31 years (129;41.61%), working as entrepreneur (99;31.94%), with the highest level of education being a Bachelor's Degree (137;44.19%) (Table 2).

 

Table 2. Demographics of respondent

Profile

Category

Frequency

Percentages

Gender

Males

147

47.42%

Females

163

52.58%

Ages

17-21 years old

13

4.19%

22-26 years old

56

18.06%

27-31 years old

129

41.61%

32-36 years old

63

20.32%

36-41 years old

32

10.32%

>42 years old

17

5.48%

Occupations

Student

23

7.42%

Civil Servant or stated owned employee

70

22.58%

Private sector employee

72

23.23%

Entrepreneur

99

31.94%

Housewife

36

11.61%

Professional (Doctor, Accountant etc)

4

1.29%

Others

6

1.94%

Education

High school or below

131

42.26%

Associate’s degree

30

9.68%

Bachelor’s degree

137

44.19%

Master’s degree

11

3.55%

Doctoral degree

1

0.32%

 

Measurement Model Evaluation

The author is expected to interpret the results and then connect them with previous research (accompanied by scientific discussions and arguments that support). The discussion should be able to align with the main purpose of research in the Introduction. Writers may include tables or graphics on the results and discussions.

Through indicator loadings, construct reliability, convergent validity, and discriminant validity, the measurement model clarifies how the measured variables represent a construct (Hair et al., 2019). Although a value of 0.5 is still considered acceptable, ideal acceptable indicator values should have outer loadings above 0.707 (Chin, 1998; Hair et al., 2019) or 0.708 (Hair et al., 2019). According to Hair et al., (2019) and Chin (1998), the average threshold for the Average Variance Extracted (AVE) is 0.5. All indicator variables and latent variables satisfy the requirements for appropriate outer loadings and AVE, as shown in Table 4. Table 4 also suggests that every variable in the model passes the reliability test, obtaining Composite Reliability scores above 0.70 and Cronbach's Alpha above 0.70 (Hair et al., 2019).

The degree to which a construct actually varies from another is then investigated using discriminant validity (Hair et al., 2019). The HTMT test is advised for assessing discriminant validity using PLS-SEM (Hair et al., 2019). The minimum HTMT value is less than 0.9, and ideally less than 0.85. It is possible to conclude that every variable in this study satisfies the HTMT test based on the test results (Hair et al., 2019), which are displayed in Table 5. The Fornell-Larcker test was also performed; it is also shown in Table 5; all variables in this study satisfy the test's acceptance criteria, which state that a latent variable's (diagonal value) square root of AVE must be greater than its correlation with other factors (Chin, 1998; Hair et al., 2019).

 

Table 3. Demographics of respondent

Variable

Indicator

Mean

SD

Loading

AVE

CR

CA

Functional Platform Value

FU1

4.997

1.021

0.868

0.774

0.912

0.855

FU2

5.052

0.939

0.894

FU3

4.784

1.054

0.878

Cost Platform Value

CO1

5.11

1.11

0.800

0.692

0.9

0.851

CO2

4.684

1.225

0.865

CO3

4.661

1.272

0.800

CO4

4.942

1.058

0.860

Contextual Platform Value

CN1

5.029

1.011

0.905

0.779

0.914

0.858

CN2

4.735

1.069

0.880

CN3

5.106

0.925

0.863

Perceived Value

OV1

4.671

1.057

0.828

0.724

0.887

0.808

OV2

4.658

1.074

0.891

OV3

4.826

1.096

0.831

Service Quality

PQ1

4.961

1.006

0.848

0.682

0.915

0.883

PQ2

4.981

0.943

0.829

PQ3

4.919

1.011

0.838

PQ4

4.848

1.074

0.784

PQ5

4.59

1.027

0.829

Platform Brand Image

BI1

4.955

0.897

0.855

0.726

0.914

0.874

BI2

5.006

0.884

0.864

BI3

4.819

0.916

0.829

BI4

5.006

0.964

0.860

Continuance Intention

UI1

5.026

0.993

0.901

0.747

0.899

0.831

UI2

4.997

0.932

0.859

UI3

4.713

1.092

0.831

Platform Brand Loyalty

BL1

5.042

1.063

0.889

0.785

0.916

0.863

BL2

4.923

0.954

0.880

BL3

5.116

0.919

0.889

Note: SD—Standard Deviation; AVE—Average Variance Extracted; CR—Composite Reliability CA— Cronbach's Alpha.

 

Table 4. Measurement Model Evaluation 2: Discriminant Validity

Fornell and Lacker Criterion

Variable

BI

BL

CN

CO

FU

PV

SQ

CI

 

 

 

 

 

 

 

 

 

BI

0.852

BL

0.765

0.886

CN

0.702

0.63

0.883

CO

0.676

0.639

0.723

0.832

FU

0.681

0.631

0.685

0.692

0.88

PV

0.681

0.637

0.743

0.691

0.653

0.851

SQ

0.759

0.734

0.74

0.725

0.717

0.756

0.826

CI

0.731

0.764

0.653

0.657

0.64

0.635

0.707

0.864

HTMT Ratio Approach

Variable

BI

BL

CN

CO

FU

PV

SQ

CI

BI

 

 

 

 

 

 

 

 

BL

0.88

CN

0.811

0.733

CO

0.78

0.744

0.842

FU

0.787

0.735

0.798

0.807

PV

0.811

0.764

0.892

0.831

0.782

SQ

0.863

0.84

0.849

0.831

0.823

0.892

CI

0.851

0.898

0.773

0.778

0.756

0.771

0.821

 

Note: BI = Platform Brand Image; BL = Platform Brand Loyalty; CN = Contextual Platform Value; CO = Cost Platform Value; FU = Functional Platform Value; PV = Perceived Value; SQ = Service Quality; CI = Continuance Intention

 

Structural Model Evaluation

After the measurement model's validity and reliability were proven, the structural model was evaluated (Hair et al., 2019). When collinearity was evaluated by looking at inner VIF values, all of the values were found to be below 3.3, which indicates that common method bias was not present (Kock, 2015). The structural model was then assessed by utilizing coefficients of determination (R²), cross-validated redundancy (Q²), and path coefficients or hypothesis testing to determine the interrelatedness of the constructs.

In the PLS-SEM model R-Square (R²), measures the prediction strength within the sample; a value of 1 denotes a perfect association, and 0 denotes no relationship (Hair et al., 2019). Overall, all the predictor variables tested in the study are in the moderate category above 0.5. Furthermore, acceptable predictive accuracy on endogenous constructs is demonstrated by the cross-validated redundancy method with Q² values above zero (Hair et al., 2019). Blindfolding techniques are used to calculate Q², a measure of the PLS-SEM model's predictive strength, on subset data. The study's model's acceptable predictive accuracy is confirmed by the results, which show that all endogenous variables have Q² values greater than zero (Hair et al., 2019).

The next step is to assess the importance and size of structural path coefficients. Using bootstrapping with 5,000 sub-samples, path coefficients were evaluated for their magnitude and importance in the structural path relationships (Hair et al., 2019). If a P Value in a hypothesis test is less than (<) 0.05, it is accepted. Based on the hypothesis testing results in Table 5, it can be seen that 14 hypotheses were accepted, and 3 hypotheses were rejected.  Regarding the results show that functional platform value had a positive influence toward perceived value but the result of the p values < 0.05. Therefore, hypotheses H1a was not supported this shows that the relationship between functional platform values and the overall platform value is complex and varied. It is highly dependent on the context of the services offered within the entire ecosystem and the service process. This complexity makes the significance of the direct influence on perceived value very small.

On the contrary, regarding the impact of contextual on perceived value (H1b), was significant with p Values < 0.05. The result indicates that digital interactive platforms create cost value for users by providing lower prices or other economic benefits through advantages in scale or efficiency. The 1c hypotheses, which examined the impact of contextual on perceived value, were accepted that the p Values < 0.05. The results show that digital interactive platforms can increase the level of contextualization and personalization through instructions or features that have relevance to each user (He & Zhang, 2022). Therefore, contextual value can serve as a signal of high-quality experiences and positive psychological states.

 

Table 5. Structural Model Evaluation

Hypothesis

Path

 VIF

β

T statistics

P Values

Supported

H1a

FU -> PV

2.478

0.075

1.183

0.118

No

H1b

CO -> PV

2.696

0.148

1.998

0.023

Yes

H1c

CN -> PV

2.769

0.32

5.353

0.000

Yes

H2

SQ -> PV

2.956

0.358

5.501

0.000

Yes

H3

PV -> BL

2.531

0.03

0.557

0.289

No

H4

SQ -> BL

3.349

0.216

3.241

0.001

Yes

H5

PV -> BI

2.331

0.251

4.055

0.000

Yes

H6

SQ -> BI

2.331

0.569

9.315

0.000

Yes

H7

PV -> CI

1.866

0.255

4.109

0.000

Yes

H8

BI -> CI

1.866

0.557

9.316

0.000

Yes

H9

CI -> BL

2.475

0.358

7.316

0.000

Yes

H10

BI -> BL

2.968

0.320

5.915

0.000

Yes

H11

SQ -> PV -> BL

0.011

0.528

0.299

No

H12

SQ -> BI -> BL

0.182

5.034

0.000

Yes

H13

PV -> BI -> BL

0.080

3.351

0.000

Yes

H14

PV -> CI -> BL

0.091

3.654

0.000

Yes

H15

BI -> CI -> BL

 

0.200

5.852

0.000

Yes

Note: BI = Platform Brand Image; BL = Platform Brand Loyalty; CN = Contextual Platform Value; CO = Cost Platform Value; FU = Functional Platform Value; PV = Perceived Value; SQ = Service Quality; CI = Continuance Intention; VIF—variance inflation factor; β—path coefficient.

 

The effect of service quality toward perceived value (H2) was found to have a significant impact with p values <0,05. This shows the customers' subjective assessment of the quality of a brand or product can evaluate the value provided to them. Similar to the impact of service quality on perceived value, the impact of service quality on platform brand loyalty (H4) is also significant with a p value < 0,05. This indicate that the role of quality can be linked directly to loyalty.

In contrast, the impact of perceived value on platform brand loyalty (H3) was positive, but the p-value result was > 0.05. Therefore, hypothesis H3 was not supported, indicating that there are other variables that should be considered when assessing the significance of a platform's value in relation to loyalty. This also affects the role of perceived value as a mediating variable in the relationship between service quality and platform brand loyalty (H11), as the p-value is > 0.05. Consequently, the H11 hypothesis was not supported either. This suggests that the characteristics of perceived value do not play a mediating role between service quality and brand loyalty for PLN Mobile application users. Some studies assert that there is no significant influence between perceived value and loyalty (Pratiwi et al., 2021), and this impact may vary across different service sectors, explaining the absence of a mediating role for this variable in our research.

The hypotheses H5 and hypotheses H6 was supported in both result with a p value < 0.05, showing that both perceived value and service quality had significant impact of platform brand image. The value generated from the mobile platform is proven to be able to generate an overall brand image, same with the quality perception on costumers. The hypotheses H7 and hypotheses H8 was also supported in both result with a p value < 0.05, showing that both perceived value and platform brand image had significant impact on continuance intention. In various service contexts, perceived value can generate the user's intention to continue using the service continuously, the same as the platform brand image of all the services offered on the platform itself.

The next hypotheses H9, which examined the impact of continuance intention on platform brand loyalty, was supported with p value < 0,05. This indicate that PLN Mobile respondents' desire to use the application again in the future has a significant relationship to the loyalty they feel in the brand platform on the application. The last direct hypothesis H10, also had a significant impact on platform brand image on platform brand loyalty with p value < 0,05. This indicated that the characteristics of the Platform Brand Image have a positive and significant effect on the Platform Brand Loyalty of PLN Mobile application users.

Based on the several hypotheses above, the following are the results of the mediation hypothesis that complement the measurement outcomes in the structural model. In hypothesis H12, where platform brand image mediates the influence of service quality on platform brand loyalty, the p-value is <0.05, indicating a significant value, and the hypothesis is accepted. Therefore, in the context of PLN Mobile, brand image can partially mediate the role of service quality on application loyalty due to the significance between service quality and platform brand image in relation to platform brand loyalty.

Furthermore, hypotheses H13 and H14 show a p-value <0.05, proving that platform brand image and continuance intention can significantly mediate the influence of perceived value on platform brand loyalty. These two variables can fully mediate the role of perceived value on platform brand loyalty because the direct influence between perceived value and platform brand loyalty is not significant in this research. In the final hypothesis H15, continuance intention has a significant mediating influence on the relationship between platform brand image and platform brand loyalty, with a p-value <0.05. This shows that continuance intention can partially mediate the role of platform brand image on application loyalty due to the significance between platform brand image and platform brand loyalty.

The summary of hypothesis testing results can be seen in Figure 2.

Figure 2. Structural Model

 

Discussion

This study examines the impact of three multidimensional of platform value creation and service quality on perceived value, platform brand image, continuance intention and platform brand loyalty. The result shows that cost, contextual platform value and service quality have a significant impact on perceived values but not with functional values. Another result shows that perceived value has no direct influence on platform brand loyalty. Therefore, perceived value cannot become the only mediating factor that creating significant impact between service quality on platform brand loyalty.

However, another several factor that had been studied in this study shows that platform brand image and continuance intention had significant influences on loyalty. Therefore, these two variables can become mediating variable in this study that creating significant impact of perceived value on platform brand loyalty. Based on the overall findings of the study above, this study theoretically contributes to the current research about value creations and service quality creating digitized services effectiveness by providing empirical evidence. By considering the perceived value of users, services offered via mobile platforms can become more effective and significantly increase the intension too use and platform brand loyalty. Apart from that, value and quality have also been proven to be able to improve the overall image of the digitization of services offered on the mobile platform so that this can empirically increase the desire and loyalty of mobile platform users.

The analysis and hypothesis testing reveal several key findings. First, among the three multidimensional platform values—functional, cost, and contextual—only functional platform value lacks a significant influence on perceived value. Cost and contextual values, on the other hand, directly impact perceived value. Second, in the context of PLN Mobile application users, there is a positive and significant direct influence between service quality and perceived value, platform brand image, and platform brand loyalty.

Third, although perceived value has a positive and significant direct influence on continuance intention and platform brand image, it does not directly impact platform brand loyalty for users of the PLN Mobile application. Fourth, perceived value partially mediates the influence of service quality on platform brand image but does not mediate the influence of service quality on platform brand loyalty. Fifth, continuance intention partially mediates the influence of platform brand image on platform brand loyalty, and it fully mediates the influence of perceived value on platform brand loyalty. Lastly, platform brand image fully mediates the influence of perceived value on platform brand loyalty and partially mediates the relationship between service quality and brand loyalty on the platform.

The increasing use of the internet and mobile platforms requires companies, particularly in customer service sectors, to enhance user engagement and customer loyalty through the digitalization of services. The rapidly evolving landscape of information technology has disrupted traditional service sectors in various large Indonesian companies. This study identifies practical implications for fostering loyalty in the evolving digital service landscape, emphasizing the need for value and quality that can stimulate increased usage and enhance overall user perception of the application.

Furthermore, among the variables perceived value and platform brand image, which are variables that influence continuance intention, platform brand image is the variable that has the greatest influence value. Where the BI2 indicator is a representation of the Company's overall services that can be provided by the application, therefore it is important for the Company to be able to translate the types of services offered as a whole into digital application channels so that this can increase the intensity of use of the application itself.

On the other hand, the four latent variables that influence platform brand loyalty in this research model show that the continuance intention variable is the variable that has the greatest influence value among the other three. In indicator CI1, namely the user's desire to continue using the application on an ongoing basis, is an important factor so that application users are willing to recommend services and provide positive reviews of the services provided which encourages service satisfaction and loyalty in using the platform.

 

Conclusion

In conclusion, The role of brand image and continuity intention as mediating variables is an important aspect in increasing the significance of the influence of perceived value on platform brand loyalty. This shows that value is not enough to explain how the loyalty construct is formed in the context of mobile platform services. and also the insignificance of the functional platform value variable to perceived value indicates the possibility of differences from the point of view of the digital service context, where in this research the object being studied is the user of the electricity service application, where this is a primary utility need in the modern era.

One limitation of this research is that it only focuses on one type mobile platform of Indonesian stated owned company digital services. Some exploration on the impact of values and quality toward platform brand loyalty in other types of industry or company would be considerably beneficial for the digital services and marketing literature. In addition, the research was conducted in a context where the PLS is the ideal concept of the measurement. Future studies should examine the role of overall platform values in influencing other factors that can enhance the services improvement on digital marketing and services sector.

 

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Fristyan Pradipta, Daniel Tumpal H Aruan (2024)

 

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