The Effect of E-Service Quality in Taking Container Units on

Customer Loyalty Moderated by Customer Satisfaction of Container

Modification CV. Kay Alor Sejahtera North Jakarta

Koerniawan Hidajat

and Sheila Ananda

Business Administration, Faculty of Economics, Business and Social Sciences, Universitas 17 Agustus 1945 Jakarta,

Indonesia

Keywords: E-Service Quality, Customer Loyalty, Customer Satisfaction.

Abstract: The level of economic development in Indonesia and international economic trade routes affect the demand

for containers in the port of 11 billion TEU, according to UNCTAD data on Container Port Through part

Indonesia in 2021. The provision of containers in Indonesia is not only from the logistics trade of goods

movement, but also from developing demand for practical provision of commercial offices, mobile offices,

mobile counters, mobile shops, villas, residential houses, and supermarkets. CV. Kay Alor Sejahtera container

rental business, buying and selling containers for commercial electronic-based customer service. The research

objective is to determine and explain the effect of e-service quality on obtaining container units by customers

and the ability of strong or weak customer satisfaction to moderate the effect of e-service quality on customer

loyalty. The research method is quantitative explanatory research. Data collection is via a questionnaire with

a Likert scale. SmartPLS (Partial Least Squares) data analysis. If customers are served their orders quickly

through electronic/Internet means, such as WhatsApp, they will be more likely to order container rentals and

services for commercial use again. The results showed that e-service quality has a positive effect on customer

loyalty. Customer satisfaction also has a positive effect on customer loyalty, especially if complaints are

resolved quickly, making customers more loyal. Customer satisfaction has the ability to weaken the e-service

quality of taking container units. Slightly satisfied customers are served by using digital/internet services,

website applications, or WhatsApp.

1 INTRODUCTION

Indonesia has its own advantages compared to other

countries, one of which is located on the international

trade route which becomes a crossroads of trade

traffic because our country is flanked by two

continents and two oceans. Economic growth in

Indonesia is also able to influence the demand for

containers at the Port of Indonesia. Container as a

form of business is not only related to logistics in the

packaging of shipping goods between islands,

between regions, and between countries, but also a

business in terms of renting containers of various

sizes. It is interesting to know that the reality of the

container business is developing into one of the

commercial support businesses through traded

container units such as mobile offices, mobile stores,

residential houses, and even supermarkets (Gunawan

& Sianto, 2006).

One of the challenges in business is maintaining

loyal customers. Customer loyalty is the willingness

of customers to use the services of a company

repeatedly and recommend the company's services to

others (Saputra, 2017). Customer experience in

buying a product will influence other customers.in

buying a product, so the company must be able to

create products that suit the needs and tastes of

customers.

Customer loyalty and satisfaction play an

important role in a company, retaining them means

improving financial performance and maintaining

company survival. The benefit of customer loyalty is

the reduced influence of attacks from competitors

from similar companies, not only competition in

terms of products but also competition in terms of

perception (Zai et al., 2022). In addition, loyal

customers can encourage the development of the

company by providing ideas or suggestions to the

company to improve the quality of its products.

Hidajat, K. and Ananda, S.

The Effect of E-Service Quality in Taking Container Units on Customer Loyalty Moderated by Customer Satisfaction of Container Modiﬁcation CV. Kay Alor Sejahtera North Jakarta.

DOI: 10.5220/0012579400003821

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 4th International Seminar and Call for Paper (ISCP UTA ’45 JAKARTA 2023), pages 269-275

ISBN: 978-989-758-691-0; ISSN: 2828-853X

269

CV. Kay Alor Sejahtera has an internet-based

electronic service or website by going to a special

address https://kaycontainer.com/ is a Uniform

Resources Locator (URL) with a special paid domain

(.com). Usually this service is used by Kay Alor

Sejahtera to connect between the company and

customers for ordering container modifications,

including picking up container units at the depot and

operating container units through admin customer

service email, open chat (WhatsApp), Facebook,

Twitter, Instagram, and phone number.

2 LITERATURE REVIEW

2.1 E-Service Quality

E-Service Quality is a service provided on the intenet

network as an extension of a site's ability to facilitate

shopping, purchasing, and distribution activities

effectively and efficiently. E-Service Quality or also

known as e-servqual is part of service quality. E-

service quality is an activity carried out by a person

or group of people based on material factors through

certain systems, procedures, and methods in order to

fulfil customer activities and needs (Magdalena &

Jaolis, 2018).

Service is the most important thing in an

organisation. Every staff member responsible for

serving customers must be able and courageous to

utilise their competence to serve and satisfy the needs

of the customers themselves. Every customer will

definitely have a desire, coupled with a different

attitude. The fundamental principles in serving

customers are creating a positive first impression,

friendliness and politeness, demonstrating a good

attitude, integrity, and serving with heart (Suparman

et al., 2016).

Electronic service quality has four dimensions,

namely reliability, web design, security and customer

service. In addition, Wolfinbarger and Gilly (2003) in

Andrias and Himawani (2019) defined indicators to

measure the quality of electronic services, namely:

i. Reliability, namely: the company's ability

to provide adequate and satisfactory

service.

ii. Website design: all elements of the

consumer experience offered on a

company's website, including navigation,

information retrieval, request processing,

etc. requests, and appropriate

personalization.

iii. Security, namely payment security and

consumer information privacy

iv. Customer service, services used to solve

problems responsiveness and the

company's willingness to help customer

problems (Normanita et al., 2021: 441).

2.2 Container Unit Pickup

Retrieval for containers can be interpreted as

unloading and loading containers. The definition of

"unloading" is the process of lowering the container

unit from the ship, while "loading" is the process of

raising the container unit into the ship (Gunawan &

Sianto, 2006:79).

Tanaya (2007) conducted a previous study on the

"loading and unloading" process, which looked at

three factors that were considered influential: ratio,

weight, and time. It was found that ratio and weight

had the greatest influence, while the start time of the

process did not have a significant influence because

in Surabaya Container Terminal there is only one

type of gank and one type of transport equipment,

this study did not look at the factors of ganks and

transport equipment (Gunawan & Sianto, 2006: 80).

The collection of this container unit can be

carried out not only from the dock to the ship, but

also from the container depot (container storage),

which is usually done by companies specifically

engaged in container rental. The container can be

divided into several volumes (quantities).

1. 20 Feet (6.10 meters x 8 feet wide or

2.44 meters x 8 feet 6 inches or 2.59 meters)

2. 40 Feet (12 x 19 meters x 8 feet wide or

2.44 meters x 8.6 feet or 2.59 meters high)

The container volume as described above,

specifically for the 20 feet modification can be

divided into two: 10 feet (3 meters x 8 feet wide or

2.44 meters x 8 feet 6 inches high or 2.59 meters).

Modified containers are typically utilized in the

commercial sector (shops, cafes, product franchises

such as teapots, burgers, cakes, etc.). The office

sector also employs modified containers, such as

constructing offices for toll road project activities,

shipbuilding projects, mining projects, etc. The

housing sector also utilizes modified containers,

usually 20ft to 40ft in size/volume.

Modified containers can be ordered at prices

generally range from Rp. 50 million to Rp. 100

million. Modified containers use container base

material from depot volumes of 20 feet to 40 feet

with a purchase price of around Rp. 17 million

(empty 20 feet containers) and for empty 40 feet

containers around Rp. 25 million. The buying and

selling price of empty and modified container units

depends on the rise and fall of the USD for the

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purchase of container units, entrepreneurs can

modify containers directly from overseas buyers

such as Singapore, Denmark, Hong Kong.

2.3 Customer Loyalty

Customer loyalty is someone who has become

accustomed to buying the products offered and

interacting frequently (making purchases) over a

period of time, while remaining loyal to all company

offerings. Loyalty shows conditions from a certain

duration of time to time and requires that the purchase

action occurs no less than twice (Rifa'i, 2019: 51).

Managing customer loyalty starts with

understanding how and why loyalty is created, which

begins with the buying cycle. The buying cycle

moves through product awareness, initial purchase,

post-purchase evaluation, and repurchase decision.

Paying attention to customer needs is an important

step in encouraging customers who make repeat

purchases to form deeper loyalty. Indicators of

customer loyalty, as stated by Griffin (2019), include:

A. Repeat Purchases. Repeat purchases can be the

result of market dominance by a company that

manages to make its product the only

alternative available.

B. Giving Referrals to Others. Loyal customers

are very potential to spread or become word of

mouth advertisers for the company.

C. Rejection of Competitor Products Customers

who are loyal to a particular product or

company tend to be attached to the brand or

company and will return to buy the same

product again at that company even though

there are many other alternatives available

(Ramanta et al., 2021: 1020).

2.4 Customer Satisfaction

Customer satisfaction is an individual's feeling of

pleasure or disappointment resulting from comparing

the perceived product or service (or outcome) with the

anticipated one (Sumartini and Tias, 2019: 112). As

per Lesmana and Ratnasari (2019), customer

satisfaction is about the expectations they have and

the actual performance they receive. If expectations

are high, but the performance is poor, customers are

unlikely to achieve satisfaction and instead may feel

let down. Conversely, if performance exceeds

expectations, satisfaction will increase. According to

Fadhli et al. (2021), customer satisfaction has many

benefits for the company by achieving a high level of

customer satisfaction. These include increasing

customer loyalty, preventing customer turnover,

reducing customer sensitivity to price, lowering

marketing failure costs, reducing operating costs

caused by an increase in the number of customers,

boosting advertising effectiveness, and improving the

business's reputation. According to Saputra &

Sudarsa (2019), indicators of customer satisfaction

include:

a. Re-Purchase. Buying back, where the customer

will return to the company to find goods or

services.

b. Creating Word of Mouth. In this case,

customers will say good things about the

company to others.

c. Creates a brand image. Customers will pay less

attention to brands and advertisements of

competitors' products.

d. Make a purchase decision for the same

company. Buying other products from similar

companies.

3 METHODS

3.1 Type of Research, Time and

Location

In this study, the type of explanatory research,

Sugiyono (2017) reveals that it is a research method

that is used to analyse the results of the research. It is

intended to explain the position of the variables

studied and the influence between one variable and

another (Ananda, 2020: 149). The research was

conducted for 3 months, the research location was at

CV. Kay Alor Sejahtera.

3.2 Operational Variables and Concept

Model

This research uses the basic theory of:

1) Wolfinbarger and Gilli (2003) on E-Service

Quality; 2) Griffin (2019) about Building Customer

Loyalty. 3) According to Saputra & Sudarsa (2019)

about Customer Satisfaction.

Operational Variables based on the basic theory

above Table 1.

The Effect of E-Service Quality in Taking Container Units on Customer Loyalty Moderated by Customer Satisfaction of Container

Modiﬁcation CV. Kay Alor Sejahtera North Jakarta

271

Table 1: Operational Variables.

Variables

Indicator

1) E-Service Quality

(X)

1. Reliability

2. Website Design

3. Security

4. Customer Service

2) Customer

Loyalty (Y)

1. Repeat Purchases

2. Provide

Referrals to

Others

3. Rejection of

Competitor

Products

3) Customer

Satisfaction

(Z)

1. Re-Purchase

2. Creating Word

of Mouth

3. Creating a

Brand Image

4. Creating a Purchase

Decision

In the Same

Company.

Source: Processed by Researchers, 2023.

Table 1 Operational Variables with research

hypotheses:

3.2.1 H1 = E-Service Quality has the ability to

influence Container modification customer

loyalty.

3.2.2 H2 = Customer satisfaction affects

Container modification customer loyalty

3.2.3 H3 = customer satisfaction has the ability to

moderate the effect of E-Service Quality on

container modification customer loyalty.

The hypothesis above explains the concept model of

the research variables as in Figure 1 below.

Figure 1: Research Variable Concept Model.

Source: Processed by Researchers, 2023.

3.3 Data Collection Methods

Data collection techniques were carried out within a

period of 3 months in this study using two ways,

namely:

a. Questionnaire method, which is a data

collection method carried out by giving a set of

questionnaires in the form of written statements

to the respondents who are answered by the

respondents.

b. Google Form is distributed via WhatsApp on

CV customers. Kay Alor Sejahtera.

3.4 Population and Sampling

The population used in this study is limited to

customers of CV Kay Alor Sejahtera North Jakarta,

on the grounds that in order to achieve universal

homogeneity and generalization of meaning or

perception on the ability to influence E-Service

quality in taking container units CV Kay Alor

Sejahtera North. Researchers use availability

sampling, namely available sampling, researchers

utilise available subjects (Alwi, 2012), from a list of

59 available customers who have made transactions

with CV Kay Alor Sejahtera North Jakarta at least

once in 2023.

3.5 Data Processing

Variance-based Structural Equation Modelling

(SEM) or Partial Least Square (PLS) method

involves several research variables with parameter

estimation methods. Bootstrap. PLS is an analytical

method that can be applied to all data scales, does not

require many assumptions and the sample size does

not have to be large (Jonathan & Anondho, 2018).

PLS aims to obtain variable values for prediction

purposes (Hoyyi & Santoso, 2017).

3.6 Validity Test

This outer model test uses the help of the PLS

Algorithm procedure. The analysis stage on the outer

model is measured using validity and reliability

testing. Based on the Rule of Thumb Convergent

Validity Test, Outer Loading > 0.7. Chin (1995) in

Hasanah's (2021) research (Ananda, 2020).

3.7 Reliability Test

Using the Partial Least Square (PLS) method, two

methods are utilized, namely Cronbach's alpha with a

minimum value of 0.7 and an ideal value of 0.8 / 0.9,

Customer

Satisfaction

E Service

Qualit

y (X)

Customer

Loyalty

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as well as composite reliability. Discriminant validity

can be deemed achieved if the AVE value surpasses

0.5 (Djojohadikusumo, 2017).

3.8 Inner Model

Testing the structural model of the inner model test

can be seen from the R-squared value in the equation

between latent variables. 2The R- squared value

explains how much the exogenous (independent /

free) variables in the model are capable of explaining

the dependent endogenous variables/bonded). R2 has

rules for model criteria very strong ≥ 0.70, strong 0.46

to 0.70, moderate 0.26 to 0.45, weak ≤ 0.25 (Ananda,

2020).

3.9 Hypothesis Test

PLS hypothesis testing relates to a non- parametric

bootstrap procedure to test the significance of the

coefficients (Hoyyi & Santoso, 2017). The test is

carried out with a t-test and if a p-value of 0.05 (5%

alpha) is obtained, it is concluded to be significant and

vice versa.

4 RESULTS AND DISCUSSION

4.1 Respondent Characteristics

Research respondents based on gender can be seen as

Table 2 below.

Table 2: Respondents by Gender.

Gender

Total

Percentage

Number of

Respondents

Male

64,4

Female

35,6

Source: Google Form processed by researchers, 2023.

4.2 Respondents Based on Education

The characteristics of respondents based on education

can be seen from Table 3 below.

Table 3: Respondents Based on Education.

Education

Total percentage

Number of

Respondents

High School

16,9

Bachelor

74,6

8,5

Source: Google Form processed by researchers, 2023.

4.3 Respondents by Order

Characteristics of Respondents based on customer

orders at CV. Kay Alor Sejahtera can be found as

Table 4 below.

Table 4: Characteristics of respondents based on order.

Order

Total

Percentage

Number of

Companies

1 Time

More than 2

times

Never

Source: Google Form processed by researchers, 2023.

4.4 Respondents Based on Position

The characteristics of respondents based on customer

positions at CV Kay Alor Sejahtera can be found in

Table 5 below.

Table 5: Characteristics of respondents based on position.

Position

Total

Percentage

Owner/Vice President

3,4

Manager/Leader/Director

16,9

Operational

10,16

Marketing

18,6

Staff/Employees

18,6

Administration

15,25

Tech. Operator/Production/

Engineering

8,47

Coordinator/Headline

5,08

Miscellaneous

3,38

Source: Google Form processed by researchers, 2023.

4.5 Research Results

Figure 2: Path Coefficient - Convergent Validity.

Source: SmartPLS 3.3.3.

The Effect of E-Service Quality in Taking Container Units on Customer Loyalty Moderated by Customer Satisfaction of Container

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273

The results of research tests with PLS (Partial Least

Square) show the results of validity, reliability (Outer

Model) and research hypothesis test results (Inner

Model). Validity and reliability in the form of outer

loading test results, Cronbach alpha, composite

reliability, discriminant validity, and average

variance extracted (AVE). The research hypothesis

test uses the T-Statistic Test and R. Square.

4.6 Outer Loading Test

The results of this study can be concluded that Outer

loading E Service Quality, Customer Loyalty,

Customer Satisfaction> 0.7 according to Chin (1995)

nothing is eliminated, according to the rule of thumb.

4.7 Validity and Reliability Test

Results

Table 6: Construct Validity and Reliability.

rho_A

AVE

ESQ

0,962

0,972

0,897

0,927

0,953

0,872

0,912

0,914

0,938

0,792

1.000

Source: SmartPLS 3.3.3.

The results of the validity and reliability tests in Table

6 above, composite reliability shows> 0.7, then

Cronbach's alpha value is achieved, and AVE value>

0.5.

4.8 Discriminant Validity Test Results

Table 7: Discriminant Validity Test.

ESQ

0,897

0,947

0,915

0,890

0,934

Source: SmartPLS 3.3.3.

Discriminant Validity shows > 0.7, the conclusion is

that E-Service Quality (ESQ), Customer Satisfaction

(CS), Customer Loyalty (CL) show good validity, the

correlation value between variables with other

variables.

4.9 R-Square Test Results

The results of the R-Square test for the Customer

Loyalty variable show that it has the ability to

influence 0.868 / 86.6% while the remaining 13.4%

through other variables is not included in this study.

The results of this R Square are very strong criteria.

4.10 Hypothesis Test Results

H1 = E-Service Quality has the ability to influence

Container modification customer loyalty.

E-Service Quality T Statistic 2.839> 1.96 T Table, P

Value 0.005 <0.05 significance level 0.05 / 5%.

These results indicate that (X) E-Service Quality has

a positive effect on Customer Loyalty (Y). The

results of this Hypothesis Test are in accordance with

research from Normanita, Koerniawan Hidajat,

Yogantari M.V. (2021) that E-Service Quality has the

ability to indirectly influence Customer Loyalty

(Hidajat & Yogantari, 2021).

H2 = Customer satisfaction affects Container

modification customer loyalty

T Statistic 3.851> 1.96 T table, P Value 0.000 <0.05

significance value of 5%.

The results of this hypothesis are in accordance

with research from Normanita, Koerniawan Hidajat,

Yogantari M.V. (2021) showing customer

satisfaction is able to influence consumer loyalty

(Hidajat & Yogantari, 2021). H3 = customer

satisfaction has the ability to moderate the effect of E-

Service Quality on container modification customer

loyalty.

T Statistics 0.393 < 1.96, P Value 0.695 > 0.05

significance value of 5%. This hypothesis shows that

customer satisfaction has a weak ability to directly

moderate the effect of E-Service Quality on customer

loyalty. This is due to, amongst other things, slow

response to customer complaints, detailed neatness of

workmanship that is not in accordance with the

customer, and technical constraints on land delivery

of containers by lorry. This hypothesis is similar to

research from Normanita, Koerniawan Hidajat,

Yogantari M.V. (2021), that loyalty does not have the

ability to indirectly mediate E-Service Quality on

customer satisfaction (Hidajat & Yogantari, 2021).

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5 CONCLUSIONS AND

SUGGESTIONS

Respondents from this study were 59 respondents

who met the criteria of having placed an order at CV.

Kay Alor Sejahtera. The conclusions of this study are

based on the results of hypothesis testing conducted

using SmartPLS, allowing for the drawing of

conclusions. As follows:

1. E-Service Quality has a positive effect on

customer loyalty, if customers are served

orders quickly based on electronics / internet

such as whatshapp, customers will try to re-

order back container rental and container

services for commercial purposes.

2. Customer satisfaction has a positive effect on

customer loyalty if served quickly for

complaints, the more loyal.

3. Customer satisfaction has a weak ability to

directly moderate the effect of e-service quality

on the retrieval of container units. Customers

are slightly satisfied with using digital

services/internet website application on

WhatsApp for customer loyalty. This is caused

by, among others, slow response to customer

complaints, lack of attention to neatness in

workmanship according to customer

preferences, and technical constraints on land

delivery of containers by trucks.

Suggestions from researchers that can be

considered for further research, namely: The number

of respondents obtained must be above that in this

study. The more the number of respondents obtained,

the better the research results will be obtained, the

results of this research can be used as a material

consideration for both business entities and the people

of Indonesia, Further research is expected to be able

to get more previous research journals for research

variables.

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