Customer Satisfaction and Customer Retention on Indonesian E-Commerce Sites: Role of Utilitarian Value and Hedonic Value

This research aimed to explore the role of utilitarian and hedonic values for both customer satisfaction and customer retention in the Indonesian e-commerce sites. Data collection was done by an online survey through questionnaires for 270 e-commerce customers in Indonesia. The results showed that the utilitarian value and the hedonic value positively affected customer satisfaction. Furthermore, the utilitarian value did not affect customer retention, yet the hedonic value was the one that affected customer retention. Lastly, customer satisfaction showed a positive effect on customer retention. The practical implementation of these results showed that to satisfy the customer and to keep the customer for long-term use of the product, as the e-commerce vendor, it was important to pay attention to the utilitarian value and hedonic value as the key factor determining the direct customer satisfaction of the e-commerce consumer in Indonesia.