The Influence of Recommendation Algorithms on Consumer Loyalty in Indonesian Marketplace Platforms: The Mediating Role of Trust and Satisfaction
Keywords:
Recommendation Algorithms, Consumer Loyalty, Trust, Customer Satisfaction, Marketplace PlatformsAbstract
This study examines the influence of recommendation algorithms on consumer loyalty within marketplace platforms in Indonesia, with particular attention to the mediating roles of trust and satisfaction. As digital marketplaces increasingly rely on personalized recommendation systems to enhance user experience, understanding their impact on long-term consumer behavior becomes essential. This research adopts a quantitative approach using an explanatory design, with data collected from active marketplace users in Indonesia through a structured questionnaire based on a Likert scale. The sample consists of respondents who have experience interacting with recommendation features on platforms such as Shopee, Tokopedia, and TikTok Shop. Data analysis is conducted using Structural Equation Modeling–Partial Least Squares (SEM-PLS) to examine the relationships among variables. The results indicate that recommendation algorithms have a significant positive effect on both trust and satisfaction. In turn, trust and satisfaction significantly influence consumer loyalty. The direct effect of recommendation algorithms on loyalty is found to be positive but weaker, suggesting that trust and satisfaction act as important mediating variables. These findings imply that the effectiveness of recommendation algorithms in fostering loyalty depends not only on their technical performance but also on how they shape user perceptions and experiences. This study contributes to the literature by integrating technological and behavioral perspectives in explaining consumer loyalty and by providing empirical evidence from the Indonesian marketplace context. Practically, the findings offer insights for platform providers to enhance recommendation system quality, transparency, and user experience in order to strengthen long-term customer relationships.
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