THE EFFECT OF PRODUCT QUALITY ON CUSTOMER SATISFACTION AND CUSTOMER LOYALTY ON THE SHOPEE MARKETPLACE

Abstract

The development of e-commerce in Indonesia has increased significantly alongside the growth of internet usage and changes in consumer shopping behavior. This study aims to analyze the effect of product quality on customer satisfaction and its impact on customer loyalty on Shopee. This research employs a causal associative design. The population consists of Shopee users, and samples were selected using a purposive sampling technique, resulting in 120 respondents. Data were analyzed using SmartPLS to evaluate measurement instruments and examine the structural relationships among variables. The results indicate that product quality has a positive and significant effect on customer satisfaction. Customer satisfaction also has a positive and significant effect on customer loyalty. Furthermore, product quality directly has a positive and significant effect on customer loyalty. These findings suggest that product quality plays an important role in enhancing customer satisfaction and loyalty, while customer satisfaction further strengthens loyalty among Shopee users.