RESEARCH MODEL OF THE DRIVERS AND CONSEQUENCES OF CUSTOMER EXPERIENCE IN E-COMMERCE: THE IMPORTANCE OF INTENSIFYING THE DEGREE OF CO-CREATION

Abstract

E-commerce expansion has been triggered by the rapid development of information as well as the immense government support for IT-related service infrastructure. E-commerce transactions in Indonesia for 2018 is estimated to reach USD 130 million or IDR 1.7 trillion. Such amount enables local businessmen to become e-commerce players in Indonesia, which is currently the largest e-commerce market in Southeast Asia and is the third largest in Asia after China and India. However, such significant market opportunities are utilized suboptimally by entrepreneurs because of a problem regarding customer behavior. That phenomenon and research gap is addressed in this study. This research proposes a comprehensive conceptual model based on driver factors (customer readiness, level of technologization, and level of connectivity) that constitute the key to success in generating a co-creation experience  whose intensity can be increased (degree of co-creation), which plays a role in facilitating the creation of experience for consumers. Therefore, satisfaction with co-creation experience can be created, thereby providing potential effect for consumer behaviors (satisfaction and repurchase intention). The conceptual model in this work was developed according to an empirical study and can be used to conduct research in the development of the e-commerce industry. Empirically, the objective for proposing this model can trigger the research development on co-creation experience, which indicates a new paradigm in the marketing field. Practically, the results of this study can provide insights to e-commerce entrepreneurs for discovering the position of indicators that become the strengths and weaknesses in developing e-commerce businesses.