The Impact of Perceived Security and Customer Literacy on E-Loyalty with Platform Functionality as Mediating Variable: A Case Study on Shopee Customers

Abstract

As businesses increasingly shift toward digital platforms to engage with customers, understanding the factors influencing e-loyalty becomes crucial. Shopee, one of the biggest cross-border e-commerce in Indonesia, can sustain loyal customers. However, the illegal use of customer data may become the reason for the downfall of loyal customers. To understand how customer loyalty is gained, it is important to consider factors such as customer literacy and perceived security on their platform. Moreover, this study explores the role of platform functionality as a mediator, drawing insights from the Technology Acceptance Model (TAM) theory to establish a conceptual model encompassing ease of use, customization, and access. The author researched using the data collected from 125 Shopee customers in Indonesia. The findings, analyzed through structural equation modeling, indicate that platform functionality is important in customer literacy and perceived security toward customers’ e-loyalty. Theoretical implication suggests customer literacy has a stronger influence than perceived security on e-loyalty through platform functionality. On the practical side, e-commerce platforms such as Shopee should increase activities promoting security concerns and educational resources to enhance customer literacy.