The Coefficient of Determination r2

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H. The Coefficient of Determination r2

According to Ghozali 2006:202 cited in Akbar 2014 the coefficient of determination � 2 essentially measure how far the ability of models to explain variation in the dependent variable. The value of determination coefficient is between zero and one. The small means that the ability of independent variables in explaining variations in the dependent variable is very limited. Basic weaknesses use the coefficient of determination is based on the number of independent variables entered into the model. Each additional one independent variable, then R 2 would increase, no matter whether these variables affect the dependent variable is not. Therefore, in this research used is the R square that have been adapted or adjusted R 2 as adjusted for the variables used in this research. Adjusted R 2 value can rise or fail if an independent variable added into the model.

I. Research Variable Operation

Variable in this research consist of: 1. Independent variable According to Cooper 2007:155, independent variable is the variable manipulated by the researcher, thereby causing an effect or change on the dependent variable. In this research as independent variables are service quality X 1 and promotion X 2 . 2. Dependent variable According to cooper 2007: 156, dependent variable is the variable 46 measured predicted, or otherwise monitored by researcher, expected to be affected by manipulation of independent variable. In this Research as the dependent variable is customer s’ satisfaction Y. Table 3.2 Operational Variable Variable Indicator Scale Service Quality Zeithaml, Parasuraman and Malhotra, 2000, 2002 Efficiency 1. Easy to find thing 2. Easy to get anywhere 3. Well organized information 4. Simple to use Likert Fulfillment 5. Delivers most relevant result 6. Quick search 7. Truthful about the services 8. Makes accurate promise Likert Reliability 9. Security policy is accessible 10. Privacy policy is accessible 11. Website contains company details 12. Website always maintain brand images Likert Privacy 13. Protects the web-job behavior 14. Keep personal information 15. Protects information about credit card 16. Product quality Likert Responsiveness 17. Easy to contact the e-retailer 18. E-retailer is interested in feedback 19. E-retailer quickly replies to Likert 47 requests Promotion Communication Mix Sullivan Adcock in Japarianto and Djati uploaded in 2015 Sales promotion 1. Clear information about sales promotion discount, bonus, etc 2. The attractiveness of sales promotion Likert Advertising 3. The attractiveness of board and signs used by a shop 4. Appropriately distributing attractive brochures Likert Consumer Satisfaction Lin Sun, 2009 Consumer E- Satisfaction 1. Shopping website’s related business process 2. Content and layout of the shopping website 3. The shopping website’s service level Likert Source: Research by Cronin and Taylor, 1992 48

CHAPTER IV ANALYSIS

A. General Overview Research Object

Lazada Indonesia, Online Mall Adding Fashion Lazada is part of the e-commerce network which centered in Dubai, UAE which is also still part from Rocket Internet which is from Germany. Lazada used the blue nuance and orange that similar nuance that used by daring site Amazon. Lazada focus to sell electronic consumer product and household staffs. Numbers of famous brand already registered in Lazada Indonesia, one of the benefits that Lazada offers is the free delivery around Jakarta, works with Go-Jek. It is because Rocket Internet Indonesia CEO also the founder of Go-Jek. Lazada is an online retailer in Indonesia that gives its consumer, chance to buy any products that related to electronics, decorations, household up to beauty and healthy products. The ordered products will be delivered to consumer in a really fast way and newest and best of product quality. The payment also could be done by cash if doesnt have credit card, but consumer will be charged Rp 10.000 which will be paid to the delivery agent who delivered the ordered product.