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THESIS

THE INFLUENCE OF LAYOUT DESIGN AND WEBSITE


CHARACTERISTIC ON CONSUMER SATISFACTION AND
CUSTOMER REVISIT

(Study of Tokopedia Consumers)

By :

YOGA DWI NUGRAHA

C1K013036

MINISTRY OF RESEARCH, TECHNOLOGY AND HIGHER EDUCATION


UNIVERSITAS JENDRAL SOEDIRMAN FACULTY OF ECONOMICS AND
BUSINESS PURWOKERTO 2017
CHAPTER I
INTRODUCTION

A. Background

Need is everything that people have to fulfill. According to the definition,

need divide into 3 intensity of needs, namely needs of primary, secondary, and

tertiary. Thus, the development of times and high mobility make human needs

become more varied and demanded quickly in fulfillment. Therefore, these

became opportunity for develope business in fulfilled the customer needs in quick

way.

Technological developments are increasingly advanced, especially in the field

of information and telecommunications led to changes in lifestyle that occurs in

society, and cause changes in the way people to communicate, seek information,

and transactions. Which previously, still use the traditional way that is offline to a

more modern way that is online.

The Internet becomes one of the most important elements in the changing

culture from offline to online. Years, companies have tried to survive the fierce

market competition of the many competitors emerging as result of these cultural

changes. So now, not only the media information and social media that

transitioned into online, and how we transact is selling and buying goods turned

into online. Therefore, many companies old or new, that appeared to use the

internet as their competitive advantage in survive from market competition, by

making online or establish startup.


Startup is a new company that is less than five years old and based online

using advances in technology information (plimbi.com, 5 August 2015). The term

startup dates back to the 1990's where it occured bubble dotcom. Which is, the

number of western company that changed its company with internet base. Since

then, significantly many emerging technology and telecommunications companies

that use the internet as their basic there.

The emergence of startup in Indonesia is still very new, some predictions from

senior in technology and economy, that the current IT business in Indonesia is in a

kind of bubble, because everyone makes silly valuations without any sign of profit

in the near future (Ken Dean Lawadinata, Techinasia.com, 15 October 2016). The

otherwise, the Indonesia government supports the emergence of startups in

Indonesia, by established of new institutions, which have equality with ministries

called the Creative Economy Agency (Bekraf). The other support done by

Ministry of Communications and Informatics together with KIBAR was launched

the 1000 National Digital. Whereas Rudiantara stated that is startup movement

with the aim that Indonesia can be the world's biggest digital power, not just in

South East Asia (www.kominfo.go.id, 19 June 2016).

This support is in line with Indonesia's achievement with GDP in 2015 has

reached about $ 861,934 billion and Indonesia also become one of the most

populous nation, and nation with the largest economy in ASEAN (Oxford

Business Group, The Report Indonesia 2017). It means, that can be great

opportunity for startup to enter the market competition with consumtive society

and many potential customer. Looking at internet and mobile usage, in 2016,
Indonesia's internet users have reached around 132.7 million or 51.8% increase

from 2014, which 53.6% are between 25 to 44 years old, 28% are 45 years old

and older, and 18.4% are between 10 to 24 years old. The internet usage by

mobile device is 47.6% mobile and 1.7% desktop with time spent per day is 68

minutes using web browser on smartphone, and 52 minutes using web browser on

computer (Karimuddin Amir, 2017). According to data from eCommerceIQ at 16

november 2016, Indonesia's re-adjusted e-commerce projected to $ 157 billion,

bigger than the original $ 88 billion estimated for all six SEA markets combined.

Table 1. E-Commerce Estimation for 2025


Source : eCommerceIQ
The data above illustrates the estimation of market and startup facilities in

Indonesia. Also show that a large market creates a fierce competition for startup

companies in customer aquisition. Based on CHGR research institute uploaded by

Beritasatu.com stated that the number of startups in Indonesia is projected to grow

up to 6.5 fold to around 13,000 by 2020. Meanwhile, in 2016, Indonesia is listed

as having the highest start-up in Southeast Asia, which is about 2,000 startups

(beritasatu.com, 7 October 2016). Therefore, website development should be


done by startup company in order to attract customers and as a differentiation of

the company from competitors, with the goals company can create customer

satisfaction and revisit intention from their platform.

A revisit intention is one indicator of customer satisfaction, thus the

customer has been satisfied with the website offers, and customer revisit is

fulfillment of the consumer needs and expectations on the website and at the end

customer will come again to the web sites (Kabadayi and Gupta, 2011; Rababah et

al., 2011). According to Park and Kim (2003) that in the online revisit a website

considered as a major component of loyalty to that site, While it needs to be

accompanied by other factors like visit duration or positive word of mouth, it is

undeniable that revisit intention is a major determinant of building online loyalty

(Kabadayi and Gupta, 2005; Park and Kim, 2003). Therefore, to improve the

quality of the website, the company should be able to see customer behavior and

match it with the content on the website, because consumers revisit behavior

implies that the web sites content was strong enough to make the consumers

return (Kabadayi and Gupta, 2011). Furthermore, there are some literature show

that how satisfaction mediates the web site characteristics and revisit intention

relationship (Kabadayi and Gupta, 2011).

Many studies adopted the TAM approach to examine the attitude-intention

relationship in an online environment (Koufaris, 2002; Venkatesh and Davis,

2000). And the empirically showed that there exists a direct and positive effect

between attitude towards web usage, usage intention and actual usage (Davis et

al., 1989). Therefore, website satisfaction refers to fulfillment of the consumers


needs and expectations at the web site (Kabadayi and Gupta, 2011). An overall

satisfactory perception usually results in an overall positive attitude toward that

web site (Szymanski and Hise, 2000). Web site satisfaction is fundamental to

establish long-term relationships with customers and to ensure long-term

profitability of online operations (Chiou and Shen, 2006). Since the web site is the

primary medium available to persuade online customers during this initial visit,

web site satisfaction is crucial for a successful transaction (Ranaweera et. al.,

2008). Thereby, Companies have to maintain customer website satisfaction with

website service quality, and element from the website that can make customer

satisfaction and initial customer revisits is layout design and website

characteristic.

Layout design is one element that can affect website interactive because

layout design is the arrangement of product information content and the images on

the websites (Wu et al., 2013). Another literature said the online shopping

atmosphere and layout design formed by both the content and structure of the

information provided by websites affect the willingness of consumers to make

purchases (Chen et al., 2012; Eroglu et al., 2001; Liu et al., 2008; Karimov et al.,

2011; Koo and Ju, 2009; Mummalaneni, 2005; Yen and Lu, 2008). Based on

Lewisons (1994) framework, Vrechopoulos et al.s (2004) adapted the

conventional retail environment components to the corresponding determinants of

the virtual retail environment, which consists of three factors: virtual layout and

design, virtual atmospherics, and virtual theatrics. Thats the some of literature

that includes layout design and atmosphere attribute to be a represent their website
value to attract customer. According to Carroll (2012) stated that the retailing

atmosphere is one of the key success factors with regard to online stores.

Website characteristic in study conducted by (Kabadayi and Gupta, 2011),

their focus on three most commonly used website characteristics, content,

convenience and customization, as the three determinants of website satisfaction

and the resulting revisit intention. Based on (Kabadayi and Gupta, 2011) take

from Chen and Wells (1999) have identified information content and organization

as elements contributing to consumers positive assessments of web sites. Another

study from (Ellsworth and Ellsworth, 1997) cite that offering valuable information

on the web site, changing some of the content frequently so that something is

always new or offering personalized services is an indicators of loyalty and that

can be encourage revisit intention. Based on previous explanation that clearly

there was no explaining the definition of characteristic website. Therefore, it is

mean that the website characteristic as content from the website that can be

assesment tools for the customer to make consideration about the website quality.

It is supported by Rababah et al. (2011) claim that the main determinants of

success or failure in e-commerce are not just web presence and low price, but also

the process of delivery and the quality of the website. Szymanski and Hise (2000)

stated that convenience, site design, product offerings/information and financial

security are dominant factors in consumer assessments of web site satisfaction.

Thus, on-line sellers must understand how the specific characteristics of their

online presence may potentially, or actually, affect customers trust (Kolsaker and

Payne, 2002). Based on all the variables that can affect the online business or
startup company, we can see that in the customer acquisition in startup company

must be careful in looking for differentiation such as designing on their platform.

Tokopedia.com is one of startup company from Indonesia which entered

in competition Indonesia startup companies. Tokopedia.com or PT.Tokopedia

established in 6 February, launched in public at 17 August 2009, Tokopedia.com

was founded by William Tanuwijaya and his friend Leontinus Alpha Edison, with

the vision is Tokopedia, shapping better Indonesia through the internet. Tokopedia

business model is marketplace, PT.Tokopedia believe that the success of a

marketplace can only be accomplished by helping other to become more

successful.

Tokopedia.com is the first internet company in Southeast Asia that

succeeded to close US $ 100 million in funding from Softbank and Sequoia

Capital. Softbank is the investor behind the success of Alibaba, while Sequoia

Capital is the investor behind the success of Apple, Google, Instagram, WhatsApp

(tokopedia.com, 2017). Tokopedia.com ranked 28th in the world and ranking 1 in

Indonesia according to startuprangking.com (2017), with the number 89,297 SR

score, where SR Score is a number between 0 and 100,000. SR score reflects the

importance of a startup on the internet and its social influence. It has been

calculate based on SR Web and SR Social with factors for assesments on SR web,

for example the number and quality of web pages that link to a startup web page.

The higher the quality of the incoming links, the higher the SR Web, the

distribution of internal links, the number and quality of the external links, the on-

page SEO factors, the estimated audience factor, And for SR social such as
facebook engagement, and twitter engagement (startuprangking.com, 2017).

According to Google Indonesia in quaters 3 2016, Tokopedia.com ranks second as

the most popular e-commerce brand. Therefore, for all these achievements make

Tokopedia.com the one of the market leader in Indonesia (startuprangking.com,

2017). In view Tokopedia website we can see changes that occur from when it

was first launched until now.

This research will be done based on previous research conducted by

Kabadayi and Gupta, (2011). Where, in their study investigated three types of

website characteristics, namely content, convenience, and customization to

determine website satisfaction and customer revisit intention. Continued, based on

a study conducted by Wu et al, (2013). Whereas, they use deign and atmosphere

layout into two factors that will influence purchase intention. This paper uses

website characteristics, coupled with layout design to be combined into two

variables that will influence customer satisfaction and customer revisit intention.

The reason why it combines the two variables is because they represent two sides

of a website, the functional side is the website characteristics (Kabadayi and

Gupta, 2011), and from the appearance is the layout design (Wu et al. 2013), and

it will represent the two aspects of the website visually and its usage, which is

influence customer satisfaction and customer revisit intention. The variables was

chosen because it sees the defeat of e-bay in china by alibaba because of

differentiation in website design and characteristic. Then, the emergence of

startup in indonesia still new and this variables will be consideration for several

company to make good website quality.


Starting from the problems above, the authors will analyzed the influence of

layout design and website characteristic on customer satisfaction and customer

revisit intention (study on consumers of tokopedia.com).

B. The Formulation of Research Problem

Website development becomes very curcial for e-commerce, because the

website on e-commerce company represent their customer service that will affect

customer satisfaction. Kabadayi and Gupta, (2011) that contributes to this trend

by offering a model to explain what encourages consumers intention to revisit

web sites. It is evident that if companies that use web sites want to keep their

consumers coming back, they need to understand the factors that affect their

intention to revisit. In that research only use CD-selling website to be their object

study. And in previous research by (Wu et. al., 2013) found that attention to the

visual design of their websites with regard to online store layout (e.g. large

product selections and well-organized content displays) and atmosphere (e.g.

happy and warm) to attract potential customers. Base on the previous research,

this paper focused on how they evaluate various web site characteristics and

layout design (as a combine variable) to influence satisfaction and revisit

intention. Based on limitation from previous research, this paper choose

marketplace e-commerce (e. g. Tokopedia.com) to be a research object. From the

phenomena above here raise the research questions:

1. Does layout design have influence on customer satisfaction ?

2. Does website characteristic have influence on customer satisfaction ?


3. Does layout design have influence on customer revisit?

4. Does website characteristic have influence on customer revisit?

5. Does customer satisfaction have influaece on customer revisit ?

C. Scope of Research

Variables in this study are limited Tokopedia.com website with two variables,

one variable each from (Wu et al., 2013) variable (e.g layout design) and from

(Kabadayi and Gupta., 2011) variable (e.g website characteristic), website

satisfaction as a mediating variable to response customer revisit intention.

D. Research Objective

1. General

To analyze the influence of the layout design and website

characteristic to customer satisfaction toward customer revisit.

2. Specific

a. Analyzing the influence of layout design on customer satisfaction.

b. Analyzing the influence web characteristic on customer satisfaction.

c. Analyzing influence of layout design on customer revisit.

d. Analyzing influence of website characteristics on customer revisit.

e. Analyzing influence of website satisfaction on customer revisit.


3. Research Benefit

Based on the problem statement above, this research will contribute to

various parties:

1. Theoritical Benefit

To prove the underlying theories related to the strategic marketing

with layout design and website characteristic. The result is expect to be a

reference material for research in the future, on the subject of company

marketing.

2. Practical Benefit

To provide information to Tokopedia.com related with the

improvement of the website to enhanced customer satisfaction and

customer revisit intention


CHAPTER II

LITERATURE REVIEW AND THE FORMULATION OF RESEARCH


MODELS

A. Literature Review

1. Layout Design

Previous study in services sector, Booms and Bitner (1981) developed the

concept of servicescape as the environment in which the interaction between the

seller and customer takes place, emphasizing the impact of the physical

environment (e.g. layout), in which a service process takes place, on consumer

behaviour. In the online world that can represent physical environment is store

layout. Whereas, store layout, or in other words, the stores internal space

management is one of the most important factors of retail store atmosphere

(Turley and Milliman, 2000). Based on previous study by Wu et al. (2013)

defined layout design is the arrangement of product information content and the

images on the websites. Subsequently, based on Vrechopoulos and Atherinos

(2009) virtual store layout as a hyperlink structure and search engine mechanism,

which affect user navigations in the virtual store. It means, web store layout has a

critical inuence on consumer behaviour and determines shoppers willingness to

use the internet as their primary shopping medium (Lohse and Spiller, 1998;

Burke, 2002; Siomkos and Vrechopoulos, 2002; Lohse and Spiller, 1999).

In their study (Wu et al., 2013) use term of atmospherics is used to describe a

stores space and design, while it is now also used in e-commerce environments to

describe the layout and design of the internet store site (Abbott et al., 2000). Web

atmospherics define is the conscious designing of web environments to create


positive effects in users in order to increase favourable consumer responses (e.g.

site revisiting, browsing, etc.) (Dailey, 2004, p. 796). Study by Milliman and

Fugate (1993), defined web atmospheric could view as any web interface

components within an individuals perceptual eld that stimulates ones senses. It

means, layout design is the part of web atmospheric and the online shopping

atmosphere and layout design formed by both the content and structure of the

information provided by websites affect the willingness of consumers to make

purchases (Chen et al., 2012; Eroglu et al., 2001; Liu et al., 2008; Karimov et al.,

2011; Koo and Ju, 2009; Mummalaneni, 2005; Yen and Lu, 2008). Therefore, the

company concern is not limited to convincing consumers about the separate

functional aspects of the online store (e.g. security, reliability, and effectiveness)

but rather heavily relies on the fact that e-tailing effectiveness depends to a great

extent on interface design (Burke, 2002; Davis et al., 2008).

Wu et al. (2013) adopted the concept of the stimulus-organism-response (S-

O-R) framework from the Mehrabian and Russell (1974) that involves store

layout design and atmosphere (e.g. Graphics, context, and layout) as the stimuli,

which may inuence the consumer emotional arousal and attitude as the

organism and purchase intention to become their response toward the sample

site. In other research, Karimov et al. (2011) developed a general classication

scheme for website design: visual design, such as layout and colour that gives

customers their rst impressions; content design, such as information provided on

the website; and social cue design, which is embedded in the web interface and

allows people to communicate using different media. Vrechopoulos and Atherinos


(2009), used the three most common conventional retailing layout types (i. e. grid,

freeform, and racetrack) were transform into virtual layouts for computer-

mediated interfaces over the web (Vrechopolous et al. 2004), whereas perceived

usefulness (PU) and perceived ease of use (PEOU) be their influence factors. Grid

layout is a rectangular arrangement of displays and long aisles that generally run

parallel to one another, the freeform layout is a free-owing and asymmetric

arrangement of displays and aisles, employing a variety of different sizes, shapes,

and styles of display, and the racetrack store layout leads the customer along

specic paths to visit (Ghosh, 1994; Mason, Mayer, & Ezell, 1991; Levy & Weitz,

2001; Lewison, 1994). The paper replicates as well as extends the work of

Vrechopoulos et al. (2004). The result from this study showed that, there are

signicantly affect the attitude towards the store regardless of the type of layout

the store employs.

The result study by (Wu et al., 2013) indicated that the inuences of layout

design and atmosphere on the consumers emotional arousal and attitude toward

the website are signicant and the results of this research demonstrate the effects

of online store environments on shopper emotions and purchase behaviours are.

These results imply that a good layout design and pleasing atmosphere will lead to

higher level of emotional arousal and consumer attitude. Based on three major

types of store layout (Vrechopoulos et al., 2004) result showed implies the

freeform layout, which was perceive as the most useful layout for conducting

planned purchases, the freeform version was also perceived as the most

entertaining layout, and the grid layout is the most effective means of navigating a
virtual retail store, in line with Human Computer Interaction (HCI) research

ndings (Lohse and Spiller, 1998; Nielsen, 1999). These researched showed that

conventional retailing theory has have impact to the customer satisfaction in

virtual retail store, but not work in the same way. Thus, the more satisfied

consumers are with the overall site experience, the more inclined they will be to

revisit the web site (Flores, 2004; Hong and Kim, 2004).

According Wu et al. (2013) expressed layout design in e-commerce use these

indicators :

a. Organized layout or Unorganized layout

b. Good display or Bad display

c. Large selection or Limited selection

d. Helpful signage or Unhelpful signage

Vrechopoulos et al. (2004) used these attributes to investigate whether and

how each layout affects online consumer behavior:

a. Perceived usefulness, as the degree to which an individual believes that

using the site will contribute to reaching a particular objective.

b. Ease of use, the degree to which a person believes that using a particular

system would be free of effort.

c. Entertainment, Store layout design is intended to make shopping

enjoyable.

d. Time, the amount of time that customers spend shopping.

According to the previous study, the researcher used this indicator that would
depict the layout design :
a. Organized layout, Arrangement between image and text into structured or

coherent layout.

b. Display, make a prominent exhibition of (something) in a place where it

can be easily seen.

c. Selection, In the arrangement, the website provides limited or large

selection (e.g product, facility, etc).

d. Entertainment, Store layout design is intended to make shopping enjoyable

and fun to browse.

In this study is more inclined to (Wu et al., 2013) indicators, because it is

seen from the result that the indicatoras from (Wu et al., 2013) gives a significant

influence on attitude toward the web site. It means, this indicator can express

website satisfaction.

2. Website Characteristic

Each website has its own characteristics that distinguish one website from

another. The literature has examined several different web site characteristics that

influence positive outcomes at a web site (Kabadayi and Gupta, 2011). For

example, Szymanski and Hise (2000) indicated that convenience, site design,

product offerings/information and financial security are dominant factors in

consumer assessments of web site satisfaction. Chen and Wells (1999) have

identified information content and organization as elements contributing to

consumers positive assessments of web sites. (Ellsworth and Ellsworth, 1997)


cite that offering valuable information on the web site, changing some of the

content frequently so that something is always new or offering personalized

services is an indicators of loyalty and that can be encourage revisit intention.

Based on these and other related studies, it means that the website characteristic is

a content from the website that can be assesment tools for the customer to make

consideration about the website quality.

Based on study conduct by (Kabadayi and Gupta, 2011), their focus on three

most commonly used website characteristics, content, convenience and

customization. Whereas, content reflects the depth of and information on the

products and services offered at a web site, convenience refers to the extent to

which a consumer feels that the web site is simple, easy to navigate, intuitive and

user friendly (Srinivasan et al., 2002), and Customization is an ability of a web

site to tailor products, services and the transactional environment to individual

consumers. In these study (Kabadayi and Gupta, 2011) has suggested that the web

site characteristics as determinats of web satisfaction and loyalty relationship (i.e

revisit intention) depends on distinct consumer motives (e.g. goal directed and

experiential) , which is goal directed (focused on the end goal such as a relatively

immediate purchase) and browsing, which is experiential (focused on the

experience and less concerned with such a goal as immediate purchase) (Hoffman

and Novak, 1996; Schlosser, 2003). Based on study conducted by (Yun and Good,

2007) there are used three types of store image attributes (i.e. merchandise

attributes, service attributes, and store shopping atmosphere attributes) are

consistently used by customers to evaluate the overall retail shopping quality.


They using post-purchase evaluation factors to mediating relationship for

evaluation consumers will decide to continue or discontinue maintaining the

relationship with the e-tailer (Yun and Good, 2007). Both of study showed that

there are antecedent factors that can influence web satisfaction and revisit

intention.

The result study by (Kabadayi and Gupta, 2011) reveal that meditational

relationship is dependent on consumer motives at a web site. Specifically, while

for goal-directed consumers, content and customization affect revisit invention

through web site satisfaction, for experiential consumers, content and convenience

does have such an effect. Based on (Yun and Good, 2007) result is significant

effect of store image on patronage intention was consistent with earlier studies on

store loyalty (e.g. Koo, 2005). Significant relationships were found between e-

store image and e-store attributes, suggesting many opportunities for retailers to

improve the internet shopping experience for consumers and to give a personality

to an e-store. To that end, Rababah et al. (2011) claim that the main determinants

of success or failure in e-commerce are not just web presence and low price, but

also the process of delivery and the quality of the web site, if these factors are

good, customers are willing to pay more for the product or service. Both

academics and practitioners recognize the importance of satisfaction and loyal

consumers, because such consumers usually spend more, buy more frequently,

have more motivation to search for information, are more resistant to competitors

promotions, and are more likely to spread positive word of mouth (Dick and Basu,

1994; Rust et al., 1995).


Based on (Kabadayi and Gupta, 2011), the result of experiential consumers

motive, which is content and convenience does have such an effect on revisit

invention through web site satisfaction, this study measurement of website

characteristic (i.e content and convenience) is using these indicators:

Content

a. Quality information, the ability of the web site to offer superior

information on the products and services offered at a web site.

b. Updated information, information about the products and services

offered at a web site frequently updated.

c. Accurate information, accuracy information about the products and

services offered at a web site.

d. Web site is not good or good enough for my needs

Convenience

a. Navigation through this web site is very intuitive

b. This web site is a very user-friendly site

c. This web site is very convenient to navigate

d. It takes a long time to navigate this web site

According to (Yun and Good, 2007) study, the measurement of website

characteristic is:

a. Privacy and security

b. Convenience/time saving

c. Search/navigation

d. Design
According to the previous study, the researcher used those indicators that

would depict the website characteristic:

a. Update information,information about the products and services offered

at a web site frequently updated.

b. Accuracy information, accuracy information about the products and

services offered at a web site.

c. Search and navigation, how easily the system is to be used.

d. Privacy and security, the protection of personal information.

In this variable more inclined indicators of (Kabadayi and Gupta, 2011), as

their indicators have a significant influence on website satisfaction and revisit

intention on the website, and choose Privacy and security indicator by (Yun and

Good, 2007), because of some literature stated that the indicator able to be

determinants of customer satisfaction (Schaupp and Belanger, 2005).

3. Customer Satisfaction

In the offline context, the provider-customer interaction during the service

encounter is often the major driver of customer satisfaction (Bitner et al., 1990).

That is, the way in which the service is delivered (i.e. the process or relational

component) plays a major role in driving satisfaction (Bansal et al. 2004). In the

online context, the service encounter is a non-personal interaction (Szymanski and

Hise, 2000). Customer satisfaction in this context, called by e-satisfaction, is

likely driven by Web site characteristics (e.g. easy to use) and service features

(e.g. shipping and handling, customer service). Philip Kotler (2011) defined
satisfaction is the products perceived performance relative to a buyers

expectations. If the products performance falls short of expectations, the

customer is dissatisfied. If performance matches expectations, the customer is

satisfied. If performance exceeds expectations, the customer is highly satisfied or

delighted. Another literature explain about website satisfaction. For example,

according to (Kabadayi and Gupta, 2011) Website satisfaction refers to fulfillment

of the consumers needs and expectations at the web site. Oliver (1999) defined

web site satisfaction as the perception of pleasurable fulfillment of a web site

experience. According to (Muylle et al. 2004) web site user satisfaction may be

considered a measure of the utility of an organizations web site in the end-users

decision making process. Thus, the more satisfied consumers are with the overall

site experience, the more inclined they will be to revisit the web site (Flores,

2004; Hong and Kim, 2004).

Based on the extant literature on TAM, consumers intention to revisit a web

site is influenced by the consumers attitude toward using the technology involved

in the site (Koufaris, 2002). An overall satisfactory perception usually results in

an overall positive attitude toward that web site (Szymanski and Hise, 2000).

TAM also has been employed to understand web site revisiting behavior and the

results suggest a positive relationship between attitude toward the web site and

revisiting intention (Casteneda et al., 2009; Sanchez-Franco and Roldan, 2004;

Hausman and Siekpe, 2009).

Based on the TAM studies, take from (Kabadayi and Gupta, 2011) posit that

satisfaction with a web site mediates the relationship between the three significant
web site characteristics, content, convenience and customization (Chen and Wells,

1999; Cheung and Lee, 2005; Ghose and Dou, 1998; Shankar et al., 2000) and

intention to revisit. Based on (Kabadayi and Gupta, 2011) take from Davis (1989)

suggested that web site content, ease of use and the ability to easily navigate a

web site are the drivers of web site satisfaction. Study conducted by Tontini et al.

(2015) reveal that The dimensions fault recovery and accessibility/speed are

the two with the highest impact on overall satisfaction. The findings that tangible

restitution for a service failure by online retailer, with positive interactions with

consumers through apologies or expressions of genuine concern regarding the

problem (interactional justice) have a significant positive influence on customer

satisfaction (Tontini et al. 2015).

Study by (Szymanski and Hise, 2000) our objective is to provide the initial

evidence for the determinants of e-satisfaction. We examine and document the

role of online convenience, merchandising, site design, and transaction security in

consumer e-satisfaction assessments. The result of these study is we document

that convenience, product information, site design, and financial security have a

statistically significant influence on e-satisfaction levels. The emphasis on

security issues is motivated primarily by the descriptive data documenting that

financial security is of foremost concern to consumers when deciding whether or

not to buy online. According to Bai et al. (2008), the quality of the website is a

critical aspect in establishing customer access and encourages the consumption of

online products. Rababah et al. (2011) state that a website must try to fulfill the

needs of customers to ensure return visits and win their loyalty.


According to the previous study (Kabadayi and Gupta, 2011), the

measurement of website satisfaction used these attributes :

1. Overall I feel satisfied with this web site

2. Overall, I feel pleased about my visit at this web site

3. Considering my overall experience, I am satisfied with this web site

According to (Tontini et al., 2015) study, the measurement of website

satisfaction is:

1. I am satisfied with the shopping site that I evaluated.

2. I think the site that I evaluated has good quality.

3. My overall satisfaction with the surveyed attributes is good.

According to the previous study, the researcher used this attributes that would

depict the customer satisfaction :

1. Overall I feel satisfied with this web site.

2. Overall, I feel pleased about my visit at this web site.

3. I think the site that I evaluated has good quality.

4. My overall satisfaction with the surveyed attributes is good.

This indicators more tendency to (Kabadayi and Gupta, 2011) study, because

in their result web site satisfaction to be mediate variable between web site

characteristic and revisit intention.

4. Customer Revisit

Since most of the online businesses often take more than a visit to make a sale

or conversion and it is relatively difficult to convert visitors on their first visit, it


has become critical for web sites to have their visitors come back and thus build

site loyalty in the long run (Muller et al., 2008). Loyal customers visit their

favorite web sites twice as often as non-loyal customers, and loyal customers

spend more money (Dialscore.com, 2000). According to Rababah et al. (2011)

state that a website must try to fulfill the needs of customers to ensure return visits

and win their loyalty. It means, revisit intentions is the part of customer loyalty,

which it is antecedent factor of customer loyalty, and we must ensure that what is

offered (i.e website quality) to customers must be able to exceed customer

expectation, then will make the customer back again on the website. According to

previous study by (Flores, 2004) stated first-time visitors need high-value content

to become repeat visitors, it must be delivered within a user-friendly environment

(easy to use and navigate, good download speed) to optimize consumer

experience and trigger a revisit. Based on study by (Kabadayi and Gupta, 2011)

that consumers revisit behavior implies that the web sites content was strong

enough to make the consumers return. Then, based on previous literature that the

revisit intention referred on willingness or awareness of customers for come back

again to the website, because of the customers has been satisfied or there are

attachment between customers with the website.

Revisits intention can be a consequence of routine behavior (Oppermann,

2000), Petricks research (2004) showed that the more behaviorally loyal visitors

are, the more likely they are to revisit. Based on study by (Oppermann, 2000)

whereas the study talk about tourist loyalty, defined The degree of tourists

loyalty to a destination is reflected in their intentions to revisit the destination and


in their willingness to recommend it. In online context, in line with Park and Kim

(2003) note that in the online environment intention to revisit a web site is

considered as a major component of loyalty to that site. However, there is a lack

of explanation in the study regarding relationship between website characteristic

and revisit intention, but there are some similarities in the dimensions of website

characteristics although different terms. Previous study by (Suh et al., 2016) for

investigating the impact of team identification, electronic Service Quality (e-

SQ) and satisfaction on behavioural intention to revisit sports websites. Suh et al.

(2016) using five service quality factors of sports websites (e.g. usability, privacy,

reliability, information, appearance). Which usability refers to the user

friendliness of the website in terms of website navigation, well organised

hyperlinks and a site map (Parasuraman et al, 2002, 2005), privacy refers to the

degree to which the customer believes that a website is a safe place, free from

risks and is not sharing personal information (Parasuraman et al, 2005; Zeithaml

et al, 2002), Reliability is defined as how accurately and correctly the website

service can be performed (Parasuraman et al, 1988), Information refers to the

assessment of whether the material and knowledge provided on a website actually

fulfils the needs of the customer (Li et al, 2002), and Appearance involves

websites graphical elements and style, including animation, layout, colour, video

and other multimedia effects (Zeithaml et al, 2002). According to Zeithaml et al

(2002, p.11) defined e-SQ as the extent to which a website facilitates efficient

and effective shopping, purchasing and delivery. E-SQ which is the quality that

consumers have in terms of their interactions and experiences with a particular


website. Service quality component that includes aspects of both pre-interaction

and post-interaction service affiliated with consumer fulfilment, repurchases and

revisits (Zeithaml et al, 2000, 2002). The result of these study showed that the

hypothesis 4 assumed that e-SQ is positively related to revisitation, which

indicates a direct link between e-SQ and revisitation. These findings are consistent

with previous studies (e.g. Bai et al, 2008; Tsuji et al, 2007), which found that

there exists an indirect effect between perceived service quality and behavioural

intention and, therefore, satisfaction is considered as a mediating factor between

perceived service quality and behavioural intention (e.g revisitation).

According to the previous study (Kabadayi and Gupta, 2011), the

measurement of revisit intetnion is :

1. I am willing to revisit this web site in the near future

2. I am willing to return to this web site in the near future

3. I have an intention to come back to this web site in the near future.

According to (Shu et al. 2016) study, the measurement of revisit intetnion is:

1. The probability that I will visit this website again.

2. The likelihood that I would recommend this websites service to a friend.

3. I had to do it over again, I would visit this website again

According to the previous study, the researcher used these attributes that

would depict revisit intetnion :

1. I am willing to revisit to this web site in the near future.

2. The likelihood that I would recommend this websites service to a friend.


3. I rather prefer to buy from this site than from others.

4. I plan to increase the frequency with which i buy from this website.

With indicators by (Kabadayi and Gupta, 2011) this study want to know

customer feeling on the web site and fulfilling customer expect.

B. The Formulation of Research Model

1. Hypothesis

A. The influence of layout design to customer satisfaction

Based on findings by Wu et al. (2013) indicate that the influences of layout

design and atmosphere on the consumers emotional arousal and attitude toward

the website are significant, and these results imply that a good layout design and

pleasing atmosphere will lead to higher level of emotional arousal and consumer

attitude. Whereas, study by Farley and Stasson (2003) define attitude as a multi-

component construct comprised of affective responses, cognitive responses, and

behavioural intentions. Based on study by Muylle et al. (2004) defined website

user satisfaction as the attitude toward the web site by a hands-on user of the

organizations web site. Melone (1990) suggests that user satisfaction is embodied

in user attitudes. For instance, in the definition of Doll and Torkzadeh (1988)

who define end user computing satisfaction as the affective attitude towards a

specific computer application by someone who interacts with the application

directly. Therefore, associated with study conducted by Hong et al. (2004)

claimed that web interface design plays an important role in affecting customers

attitude toward the website. According to result by (Emmanouela et al. 2011) the
effect of the perceived ease of use of the layout on consumers attitude is

signicant. Study result showed that the encouraging consumers to evaluate an

online store by its environmental elements, such as special layout design and

atmosphere, is extremely important for online retailers (Vrechopoulos et al., 2004;

Eroglu et al., 2001; Fink et al., 2008). Based on study by Vrechopoulos et al.

(2004) the results show that layout significantly affects online consumer buying

behavior. Some literature is taken from Vrechopoulos et al. (2004) does not use

satisfaction as the response of layout design. For instance, Grewal and Baker

(1994) note that store layout affects consumers price acceptability, which is

positively related to purchase intentions, Burke (2002) shows that the

characteristics of a virtual layout determine buyers willingness to purchase

through the Internet, Lohse and Spiller (1998) state that online store layouts have

a critical influence on traffic and sales. From the previous study above, raised the

hypothesis:

H1 : Layout design has a influence to customer satisfaction

B. The influence of website characteristic to customer satisfaction

According to (Kabadayi and Gupta, 2011) unveils how web site satisfaction

mediates the relationship between three managerially relevant web site

characteristics (e.g content, conveniece, customized). The result of (Kabadayi and

Gupta, 2011) study is we highlight the role of satisfaction as a significant factor

that mediates the website characteristics. Szymanski and Hise (2000) indicated

that convenience, site design, product offerings/information and financial security

are dominant factors in consumer assessments of web site satisfaction. Davis


(1989) suggested that web site content, ease of use and the ability to easily

navigate a web site are the drivers of web site satisfaction. Muylle et al. (2004)

found that information content, its presentation and organization of a web site

have been found as key predictors of its users satisfaction. According to Yeung

and Law (2003), the quality of information plays a vital role in the success of a

hotel web site. From the previous research above, here raise the hypothesis:

H2 : Website characteristic has a influence to customer satisfaction

C. The influence of customer satisfaction to customer revisit

Philip Kotler (2000) defined satisfaction is a persons feeling of pleasure or

disappointment resulting from comparing a products perceived performance in

relation to customer expectation, according to (Kabadayi and Gupta, 2011) Web

site satisfaction refers to fulfillment of the consumers needs and expectations at

the web site. According to (Kabadayi and Gupta, 2011) satisfaction played a

significant antecedent variable between consumers evaluations of web site

characteristics and their intention to revisit web sites. According to the extant

literature on TAM, consumers intention to revisit a web site is influenced by the

consumers attitude toward using the technology involved in the site (Koufaris,

2002). Study by Supphellen and Nysveen (2001) demonstrated empirically that

attitude toward a site is a significant determinant of site revisit. According to

(Szymanski and Hise, 2000), An overall satisfactory perception usually results in

an overall positive attitude toward that web site. Thus, the more satisfied

consumers are with the overall site experience, the more inclined they will be to
revisit the web site (Flores, 2004; Hong and Kim, 2004). From the previous

research above, here raise the hypothesis:

H3 : customer satisfaction has a influence to customer revisit

D. The influence of layout design to customer revisit

Little empirical theory that states the effect of the design layout on the revisit

intentions. Study conduct by Wu et al. (2013), take from (Dailey, 2004, p. 796)

Web atmospherics is the conscious designing of web environments to create

positive effects in users in order to increase favourable consumer responses (e.g.

site revisiting, browsing, etc.). Take from Hong et al. (2004) claimed that web

interface design plays an important role in affecting customers attitude toward

the website, stating that a website design that is more conducive to users tasks

will generate more positive attitude among users and increase their willingness to

revisit the website.

Based on Farley and Stasson (2003) define attitude as a multi-component

construct comprised of affective responses, cognitive responses, and behavioural

intentions. According to the extant literature on TAM, consumers intention to

revisit a web site is influenced by the consumers attitude toward using the

technology involved in the site (Koufaris, 2002), TAM also has been employed to

understand web site revisiting behavior and the results suggest a positive

relationship between attitude toward the web site and revisiting intention

(Casteneda et al., 2009; Sanchez-Franco and Roldan, 2004; Hausman and

Siekpe, 2009).
According to study by Verchopoulos et al. (2004) take from Merrilees and

Miller (2001) report that store layout design is one of the more important

determinants of store loyalty. Based on Park and Kim (2003) note that in the

online environment intention to revisit a website is considered as a major

component of loyalty to that site. From the previous research above, here raise the

hypothesis:

H4 : layout design has a influence to customer revisit

E. The influence of website characteristic to customer revisit

Study by Suh et al. (2016), The current study focused on examining the

relationships between team identification, e-SQ, satisfaction and behavioural

intention (e.g. revisitation), the dimensions of e-SQ (e.g. usability, privacy,

reliability, information, appearance) that can represent dimensions of website

charateristic from study by Kabadayi and Gupta (2011) (e.g. content,

convenience, and customize). Take from Cronin et al. (2000) examined service

quality to determine whether or not it is directly related to behavioural intention.

The results of their study show that both service quality and satisfaction directly

lead to consumer behavioural intention (e.g. revisitation). Similar results were

discovered by Wakefield and Blodgett (1999), who conducted a study using a

conceptual model of the relationship between service quality and behavioural

intention (e.g. revisitation). According to Hong et al. (2004) in their study state

that a website design that is more conducive to users tasks will generate more

positive attitude among users and increase their willingness to revisit the website.

Based on (Kabadayi and Gupta, 2011) research also suggests that while all three
characteristics used in this study can be influential in increasing revisit intention.

From the previous research above, here raise the hypothesis:

H5 : website charateristic has a influence to customer revisit

2. Research Model

Based on the review of literature, research and the development previous

hypothesis, then it can be figured the research model in Figure 1:

Layout Design

X1

H1 H4
X

Customer Customer
satisfaction revisit
H3
Y1 Y2

H2
H5
Web
Characteristic

X2

Figure 1. Research Framework


CHAPTER III

RESEARCH METHOD AND DATA ANALYSIS TECHNIQUE

A. Research Methods

1. Research Type

Type of research was causal research survey method. Means of collecting the

data and investigate the causal relationships and hypothesis testing to give an

overview of the research object.

2. Location Of The Study

Research location held in the Purwokerto city.

3. The Execution Time of the study

This research will conduct during August September 2017.

4. The Object of Study

Research object are consumers of Tokopedia.com, layout design, website

characteristic, customer satisfaction, and revisit intention.

5. Population and Sample

The population was all of the visitors and consumer of Tokopedia.com. The

amount of population of this research cannot be known exactly. To estimate

the number of Tokopedia.com visitor is using interval estimation method with

the formula bellow (Suliyanto 2000):


2
2
= . . ( )

1.96 2
= 0.5 0.5 ( )
0.1

= 96.04 96

Description:

n = The minimum number of sample size

p = Percentage of questionnaires answered correctly

q = The percentage of questionnaires answered incorrectly

Z = The value of the nominal distribution

a = Significance rates

e = Tolerance

Based on the result of calculation, the minimal sample size using interval

estimate is 96 respondents. Hair et.al., (1998) suggest that the Structural Equation

Model (SEM) analysis, the minimum sample size is 100 until 200 sample, and

then use a comparison with five observations for each of the estimated

parameters. Number of indicator within study is 21 parameters, so the taken

minimum sample should be taken is 105 sample (21 x 5). To qualify the minimum

sample size by using SEM analysis technique, and to anticipate a return rate of
feasible questionnaire (author used return rate 80%) so the sample size used in

this study is 121 respondents.

Sampling method in this research conducted using non probability sampling.

Sample method used in this study was convenience sampling to choose the sample

among the population.

6. Data Sources
a. Primary data

Data are obtained directly from respondents who are visitors in

Tokopedia.com 2017 through questionnaire answer and observation on

consumers or respondents about the layout design, website characteristic,

customer satisfaction, and revisit intention.

b. Secondary data

Secondary data in this research is data that is written and sourced from the

reference, scientific articles, scientific journals, and other sources such as

data obtained via the Internet related to this research.

7. Data Collection Techniaue

a. Questionnare

Data obtained by onsite distributing to a number of questionnaires to

respondents about the attributes of layout design, website characteristic,

customer satisfaction, and revisit intention, in website of Tokopedia.com.


b. Literature study

Data obtained by library research, books, papers and journals, and articles

from internet that related with layout design, website characteristic,

customer satisfaction, and revisit intention.

8. The Conceptual and Operational Definition of Variables

Table 1. Conceptual and Operational Definition

No Variable Conceptual Definition Operational Indicator


Definition
1 Layout design layout design is the Arrangement of
arrangement of product a. Organized
product information informarion layout
content and the content and the b. Display
images on the images on c. Selection (Wu
websites (Wu et al. tokopedia.com et al., 2013)
2013) website d. Entertainment
(Vrechopoulos et
al., 2004)
2 Website characteristic Based on study by Content from
Chen and Well, tokopedia.com a. Update
(1999) identified website that information
information content can be b. Accuracy
and organization as assesment tools information
elements contributing for the c. Search and
to consumers customer to navigation
positive assessments make (Kabadayi and
of web sites. It means, consideration Gupta, 2011)
the website about the d. Privacy and
characteristic is a website security (Yun
and Good, 2007)
content from the quality.
website that can be
assesment tools for
the customer to make
consideration about
the website quality.
3 Customer satisfaction Website satisfaction The fulfillment a. Overall I feel
refers to fulfillment of of customer satisfied with
the consumers needs needs during this web site
and expectations at accessing b. Overall, I feel
the web site Tokopedia.com pleased about
(Kabadayi and Gupta, my visit at this
2011). web site.
(Kabadayi and
Gupta, 2011)
c. I think the site
that I evaluated
has good
quality.
d. I shall
continue buying
from this web
site. (Tontini et
al., 2015)
4 Revisit intention According to Rababah what is offered a. I am willing
et al. (2011) state that (i.e website to return to this
a website must try to quality) to web site in the
fulfill the needs of customers must near future
customers to ensure be able to (Kabadayi and
return visits and win exceed Gupta, 2011)
their loyalty, and customer b. The
loyal customers visit expectation, likelihood that I
their favorite web then will make would
sites twice as often as the customer recommend this
non-loyal customers, back again to websites
and loyal customers the website. service to a
spend more money friend is. (Shu et
(Dialscore.com, al., 2016)
2000). It means, the c. I rather prefer
revisit intention to buy from this
referred on site than from
willingness or others.
awareness of d. I plan to
customers for come increase the
back again to the frequency with
website, because of which i buy
the customers has from this
been satisfied or there website.
are attachment (Malhotra
between customers and Birks, 2007)
with the website.
9. Research Instrument Used

Likert scale is used to measure the variable examined in this study. This

scale used to measure the response or opinion from someone about the social

object (Suliyanto, 2000). The scale of measurement is used as reference

standards for determining the length of the interval in a nutshell gauge, so that

the measuring instrument when used in measurement ware produce

quantitative data. With this measurement scale, the value of the variable is

measured by specific instruments can be expressed in the form of numbers, so

it would be more accurate, efficient and communicative (Sugiyono, 2001:

127).

Table. Likert Scale

Strongly Disagree Somewhat Neutral Middle Agree Strongly

disagree disagree agree agree

1 2 3 4 5 6 7

Each statement is given a numerical score, there are:

a. Answer strongly disagree scored 1

b. Answer disagree scored 2

c. Answer somewhat disagree scored 3

d. Answer neutral scored 4

e. Answer middle agree scored 5

f. Answer agree scored 6


g. Answer strongly agree scored 7

B. Data Analysis Technique

This study used Structural Equation Model for the data analysis technique.

It is statistical technique that allow to testing a series of relative complex

connections simultaneously. A complex relationship can be built between one

or several dependent variables with one or more independent variables.

Perhaps there is also a variable that has double role as independent variable in

a connection, but being dependent variable on another connection given the

existence of tiered causality connection. Each of the dependent variable and

independent variable can be shaped to factor or construct built from some

variable indicators. Similarly among the variables that can be a form of a

single variable that is directly observed or directly measured in research

process.

To test models and hypothesis by SEM (Structural Equation Model), there

are seven steps by Ferdinand (2005) in Suliyanto (2011):

a. Model development based on theory

Scientific exploration through literature review in order to obtain

theoretical justification on the model developed.

b. Path diagram development

Theoretical model has been developed to depict the path diagram for being

estimated.

c. Path diagram conversion into an equation.


Convert the model that stated in path diagram into equation. The converted

path diagram consists of:

1. Equation structural, formulated to known the causal relations among

constructions.

2. Specification of equation model measurement, determined which

variable that measures construct and defined the set of invalid construct a

matrix by showing the hypothesis correlation between invalid constructs

or variables.

3. Selection the matrix input and estimation model.

4. Matrix of the input data used was matrix variants/covariant or correlation

matrix.

5. Sample size, according to Hair et al. (1996), in Suliyanto (2011) the

appropriate sample size is between 100200 samples.

6. Used model estimation that provided by AMOS program by techniques

Maximum Likehood Estimation Method, Generalized Least Square

Estimations Method, Unweighted Least Square Estimation (ULS), Scale

Free Least Square Estimation (SLS), and Asymptotically Distribution

Free Estimation (SLS).

d. Assessing the problem identification.

Problem identification is principally a problem of ignorance of the model

which was developed to produce a unique estimation.

e. Evaluation criteria Goodness-of-fit


The suitability of the model is evaluated through an examination of the

criteria of goodness-of-fit with three kinds evaluation:

1. Assumption evaluation of SEM:

a) Normality, using the critical values of criteria 2.58 on the

level of significance of 0.01. When the Z-value is greater

than the critical value so it can be suspected that data

distribution is not normal.

b) Outliers, the observation for the data that have unique

characteristics that looks different from the other

observations, either for a single variable or combinations of

variables. Using the critical value criteria 3 and data stated

as outliers if Z-score value >3 or <-3.

c) Multicollienearity and Singularity which need to be

observed is the determinant of the matrix covariant sample.

Determinants are small or close to zero indicates relevant or

singularity so the data is good.

2. Suitability test and Statistic test

Some indices of conformity and cut-off value used to test whether

a model is accepted or rejected as follows:

a) X2 Chi-square statistic, the smaller value of X2 the better

model and accepted based on probability of the cut-off

value of p> 0,05 or p>0,01.


b) RMSEA (The Root Mean Square Error of Approximation)

is an index that used to compensation chi-square in the big

sample. RMSEA values that are smaller or equal to 0.08

thats means the model is acceptable based on the degree

of freedom.

c) GFI (Goodness of fit index) is a non-statistical measure

which has a range of values between 0 up to 1. High value

indicates a better fit.

d) AGFI (Adjusted Goodness of fit Index) is a criteria that

take into account a weighted proportion of the variance in a

sample matrix covariant. The recommended level is when

has greater or equal value to 0.90.

e) CFI/DF (The Minimum Sample Discrepancy Function

Devided with degree of Freedom), the Chi-square statistic

X2 divided by its degree of freedom so it is called as X2

relatives. The value of X2 is relatively less than 2.0 or 3.0

that indicates acceptable fit between the model and the

data.

f) TLI (Tucker Lewis Index) an incremental index that

compares a model was tested against a baseline model,

where the recommended value as a reference to receive the

model is 0.95 and the value that close to 1 indicates a

good fit.
g) g) CFI (Comparative Fit Index), the range of values

between 0-1 where getting closer to 1 indicates the highest

level of fit.

The table Goodness of Fit index presented bellows:

Table 2. Goodness of Fit Index and cut of Value

Goodness of Fits Index Cut of Value

X2 Chi Sequare Small expected

Significance Probability 0.05

RMSEA 0.08

GFI 0.09

AGFI 0.09

CMIN/DF 2.00

TLI 0.95

CFI 0.95

3. Reliability test and Variance Extract

a) Reliability test is where the value of accepted reliability is

0.70. In SEM method, the reliability test could measure

with formula:

( . )2
=
( . )2 + .

Note:

Standard Loading obtained from Standardized Loading for

each indicator that resulted from computer calculates


.j is the error measurement from each indicator.

b) Variance Extract, the value that accepted for this is 0.50.

The formula that used is:

. 2
=
. 2 +.

Note:

Standard Loading obtained from Standardized Loading for

each indicator that resulted from computer calculates

.j is the error measurement from each indicator (1-

Std.Loading)2.

c) Interpretation and Model Modification

Interpret and modification the model that does not meet the

criteria of testing above. Then, the model is estimated,

residual should be null and distribution of residual

frequency should be symmetric covariant (Tabachnick and

Fidell, 1997 in Ferdinand, 2005). Modification that can be

tested towards model can be performed with residual of

standard test generated by model. One of instruments to

measure accuracy from the model that has been determined

is through modification index calculated by program for

each relationship among variables is not estimated. With

2.58 Cut-off value can be used to assess a significant


residual generated by the model. The residual value is

greater or equal to 2.58 to interpretation as statistically

significant at level 5 percent.

d) Criteria the testing of hypothesis

Hypothesis null (H0) is showed that there is no format

changing or characteristics difference of subject, object or

events that are observed in status quo. Meanwhile

alternative hypothesis (Ha) is a hypothesis formulation of

format changing or characteristics difference of subject,

object, or events that are observed in status quo

(Indriantoro, 1999).

Based on the explanation above, H0 and Ha are formulated:

Hypothesis accepted if C.R (Critical Ratio) t table.

Hypothesis rejected if C.R (Critical Ratio) > t table.


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