Explanatory Modelling of Factors Influencing Loyalty on Smartphone Shopping Application: A Modification of the Shopping Application Adoption Model

Abstract

Smartphone shopping applications has been on the spotlight given the recognition of the users of the benefits it offers. The simple tap and scroll action can now lead to a complete shopping transaction which is significantly easier, convenient, and enjoyable to the users given the supplementary advantage to the current way of living. With that, smartphone shopping apps has been considered as the new driving force of the economy with multiple apps rising every day. Although the recognition is there, paucity in the understanding on how the behavior persist. Currently, the studies only focus on adoption phase with a little shed for continued usage or loyalty. Loyal users are important as market share and defend directly correlates to sales for the shopping applications. With that, this study aims to formulate a research model to identify the factors that are relevant to loyalty formation and how it is mitigated. To solve this, SAAM was augmented to incorporate and loyalty. As analyzed using SEM, the results show with high predicting power that satisfaction is explained via, in order of significance, social influence, hedonic motivation, performance expectancy, perceived trust, time filler, cost-saving orientation, and effort expectancy. Only social facilitation was determined to be insignificant. On the other hand, loyalty is explained, in order of significance again, via hedonic motivation, time filler, social facilitation, perceived trust, and performance expectancy. Effort expectancy, social influence, and cost-saving orientation are yet to be insignificant. Additional to this, it was also identified that satisfaction mediates the loyalty formation.