Reputation Communication of Online Companies

Nowdays, technology & information development has opened trading through the internet. Digital trading better known as e-commerce is growing rapidly with support of digital communication facilities. Bukalapak.com is the research object because Bukalapak.com is one of the famous online selling sites in Indonesia which experiences a decline in performance since it started on 2010 from its several digital indicators. One important aspect for online company is digital service. How does the digital service quality/e-ServQual affect the company's reputation? The purpose of this study is to analyze the e-ServQual influence on consumer trust, analyze the influence of consumer trust on corporate reputation, and analyze the effect of e-ServQual on companies mediated by consumer trust in Bukalapak.com users. The population of this study is 111 members of the community of Bukalapak Jakarta. Data are collected through surveys and questionnaire distribution and data analysis used is path analysis. The results of the study shows that e-ServQual has unsignificant negative on corporate reputation (direct effect), while e-ServQual has a significant positive effect on consumer trust – and consumer trust has a positive effect on corporate reputation, and e-ServQual has significant positive effect on corporate reputation mediated by consumer trust (indirect effect).


Introduction
The recent competition among online shopping sites in Indonesia is tremendously tight. As number of internet users in Indonesia has been increasing, each management of online shopping sites tries to display superior features optimally. In this matter, each does promotion on all fronts. Based on the start-up analysis uploaded by Alexa.com on October 17, 2013 it reveals that there are some differences in the appearance of two leading online start-up in Indonesia, i.e. Bukalapak.com and Tokopedia.com. We can see in the comparison analysis chart between two online start-up ventures, i.e. Bukalapak.com and Tokopedia.com. From the above data, it shows that Bukalapak.com is more leading than Tokopedia.com in the search engine optimation. It is also seen in the above indicator, from the number of search visits it shows that the portion of traffic presentation from search engines to Bukalapak.com site is bigger almost double than Tokopedia.com site for the portion of traffic percentage of search engines. The Search Visit on Tokopedia.com site amounts to 9.2%, and it is lower than Bukalapak.com site totaling 17.2%. (startupbusiness, 2014, February 13).
The description on tight competition between the two online start-ups is also recorded in the statistic data of alexa.com on the following website www.lembing.com. The tight competition is seen among others in the number of facebook likes, page views, and website value. Facebook likes, page vies and website value of Bukalapak.com amounts to 935,442.00, 1,842,107.00, and 5,849,610.00 consecutively. Like in the previous data, it is shown that bukalapak.com is more leading than tokopedia.com.
However, the ranking of Bukalapak.com was observe drop in 2016. It is shown in the data on alexa.com website as in the following figure. In the above statistic chart uploaded by alexa.com, it shows the ranking of Bukalapak.com website drops. Specifically on alexa traffic ranks, Bukalapak.com is at 386th rank in the world and 11th rank in Indonesia in December 2016. Moreover, the graph showed a sharp decline in July 2016 from the previous months (alexa, n.d.). As the main competitor of Bukalapak.com, however, the statistic data in 2016 showed that Tokoperdia.com increased its ranking in 2016. The graph showed it in the period of January -October 2016. Tokopedia.com occupied the 306th ranking in the world and 7th in Indonesia. This position shows that Tokopedia.com is more leading than Bukalapak.com in the end of 2016 (alexa, n.d.).
Other data also shows similar trend. www.statshow.com indicates that the performance of Bukalapak.com undergoes the degradation. The data showed that Bukalapak.com had decreased for several aspects in 2016 if compared to Tokopedia.com. In the Figure 5, Bukalapak gets the website worth of US$9,720,939.15, the yearly page views of 1,117,349,315, and the yearly ads revenue of US$3,240,313,05 (statshow, n.d.) From the data in Figure 6, it shows that Tokopedia.com gets total number of the websites worth of US$14,951,951.25, the yearly pageviews of 1,718,614,545, and the yearly ads revenue of US$4,983,983. The comparison of performance between the two online marketplace websites can also be found on the www.topbrand-award.com website. The website shows the online marketplace performance of Tokopedia and Bukalapak in 2016 (statshow, n.d.). Based on the data in Figure 7, it shows that in the period of two (2) years (2014)(2015)(2016) there are some performance changes in both websites. The last figure explains that in the 2016 top brands survey, Tokopedia led whether it was viewed from the category of online shopping of electronic goods or online sale purchase website. Tokopedia got 11.4% and grabbed the TOP title while Bukalapak only got 6.8% for the online shopping of electronic goods and online sale purchase website. Moreover, Tokopedia also got 12.1% and grabbed the TOP predicate while Bukalapak only reached 11.8% (topbrandaward, 2016). Therefore, the overview of performance change is an indication on the change in perception of the reputation of both marketplace websites. In this matter, the declining performance of bukalapak.com website is selected as the research object in this study, and it can be elaborated further on the underlying factors.
Studies have shown that consumers' purchasing decision bases on service quality that a company provides. However, as quoted from Lee & Lin (2005), study on how service quality in the new digital context just occurred in 2002 and it was conducted by Devaraj et al; moreover, Liu & Arnett (2000) followed it with the study on the service quality on website and Kuo (2003) did the study on digital service quality on virtual community. Therefore, it means that the current digital service quality has become factual reality and particularly important part of marketing practice.
Therefore, service quality also affects the online shopping consumers. It is shown in the study conducted by Al Nasser et al (2015). They states that consumer confidence of online service quality is 'the most suitable environment' for consumers to build positive attitude toward online shopping activities. People have expectation and perception about service quality as shown in the following statement: The better a service the company can offer, the better the public perception has to the company. "Service quality has been defined as: 'meeting or exceeding customer expectations'" (Davies et al., 2003).
An online service quality that the company provides for consumers is Customer Support services established to respond to consumer complaints when they do online transactions. The tasks of the Customer Support services include responses from the company to consumer complaints and inquiries via e-mail, social media, and contact center. Moreover, Bukalapak.com also provides the 100% online security guarantee in transactions for customers who pay in the online shopping activities. The guarantee is the service of Bukalapak.com to meet consumer needs in their safe online transactions. In online trade activities, the services the companies provide are through online media or indirect services known as e-ServQual.
In e-commerce, consumers' trust is the key for online transaction. It happens when transaction does not occurs face to face and indirectly but virtually. Through the information obtained and expectation met, it will grow consumer confidence to the online shopping website. Physical service quality can be seen directly when consumers come to the physical store, such as sofa where they sit; comfortable air conditioning, clean toilet, extensive parking lot and the hospitality of officers from security to customer services. This factors arises, trusts. It is considered that the company will truly be able to serve customers well, and finally they have perception on a bona fide and reliable corporate reputation of the company.
Reputation is an important factor of a company. It is considered as the main factor to keep the company alive and consumers loyal. "Reputation defines as the overall estimation in which a company is held by its constituent". (Fombrun, 1996: 37). Perception arises in consumers' mind and experience, and it will also influence corporate reputation. From consumers' good and impressive experience, it will arise credibility to a company's brand. "A reputation embodies the history of other peoples, experiences with that service provider. Good reputations increase credibility making us more confident that we will really get what we're promised " (Fombrun, 1996: 3).
We can say that service quality can directly affect corporate reputation or indirectly consumer confidence. Direct influence can occur because through the digital services, the company can provide information as clearly as possible and can directly meet consumers' need about its services and products. When the services can exceed consumer expectations, it gives direct impact to the corporate reputation positively. "A corporate reputation is the composite or overall assesment by groups or individuals of an organization that goes beyond assesment of particular features or qualities." Shenkar & Yuchtman-Yaar (in Burke, Martin & Cooper, 2011). In other words, corporate reputation comes from assessment, and in fact it exceeds the expectations towards a feature or service performance conducted by groups and individuals.
Reputation is very wortful because corporate reputation can inform what products to be purchased, and which companies provide good services (Fombrun, 1996: 5). Corporate reputation is also very important from customers' viewpoint and it gives idea of product or service quality that the companies have made, as quoted from Brown & Dacin in Subhan (2006).
Based on the description of the aforementioned problem statement, the problem formulation made in this research is as follows: Does the digital service directly affect corporate reputation or influence through consumer trust?

Theoretical Framework 1. Digital Service Quality/e-ServQual
The quality of a service also has important role for customers when they buy products online. The researchers used e-ServQual as a tool of measurement for online service quality (electronic). Zeithaml, et al. (2002) identifies seven dimensions (efficiency, reliability, fulfillment, privacy, responsiveness, compensation, and contact). It establishes the scale of "core online service" and "recovery online service". The main four dimensions (efficiency, reliability, fulfillment and privacy) is the core e-ServQual scale used to measure the customers' perception towards service quality that online retailers deliver. Other three dimensions (responsiveness, compensation and contact) or known as the recovery e-ServQual scale. In brief, the seven dimensions of e-ServQual consists of: (1) Efficiency. It is the customers' capability to get access to websites looking for products they want and information related to the products and leave the websites effortles; (2) Reliability. It relates to the technical functionality of the related websites particularly the extent to which such websites are available and these function properly; (3) Fulfillment. It includes service promise accuracy, the availability of product stocks and the product delivery appropriate to the promised time; (4) Privacy. It guarantees that the customers' online shopping behavior data will not be given to other parties whoever they are and their credit card information is under the company's security guarantee; (5) Responsiveness. It talks about online retailers' ability to give accurate information to customers when problems occurs, select mechanism to handle the product return and provide online guaranteel; (6) Compensation. It covers refunds, shipping costs and product handling costs; (7) Contacts reflect customers' demand to talk with customer service staff online or by telephone (rather than communicating with answer machine).
The research used four main dimensions of e-ServQual (efficiency, reliability, fulfillment, privacy) which includes the core e-ServQual scale. The four main dimensions of the digital service are taken from Zeithaml (in Tjiptono & Chandra, 2016) and used to measure customers' perception towards service quality that the online marketplace bukalapak.com provides. Moreover, the researchers used the e-ServQual dimension from Lee, Jang, & Cho (2013) consisting of Web design and Personalization.

Customers' Trust
According to Mayer, Davis, & Schoorman (1995) quoted from Kramer (2006); and Kim & Tadisina (2003), it states that there are 3 (three) factors that can establish individuals' trust towards one thing and it will be used as the dimension in the research, i.e.: (a) Ability: It includes skills, competencies, and characteristics in some areas or sectors. The ability in this matter provides, give and secure the services. It can be also intended that customers can get security guarantee and satisfaction when they do any transaction. Mayer et al. (in Kramer, 2006); (b) Benevolence: it is ability that individuals possess from within themselves to have good attitude to others. It is perception of positive orientation from customers to retailers. In some similar researches, it states that benevolence is the basis of trust. According to Castelfranchi & Falcone (in Bachmann & Zheer, 2006), benevolence is perception of trust as a belief system of retailers to buyers; (c) Integrity: The relations are how retailers have certain behavior when they carry out their business activities. It intends whether the buyers understand what the retailers say it clearly right or not, trusted or not. (Robbins, 2008). It states that the integrity starts from honesty and truth. In the dimension, other people consider whether someone can be honest or not.

Corporate Reputation
According to Burke, Martin, & Cooper (2011) "Corporate Reputations is one of the most valuable intangible assets, and it is extremely hard to imitate by competitors". It is stated that corporate reputation is very worthful assets where other individuals or competitors are difficult to imitate. Because reputation is the evaluation results that a company have carried out or done by its own self. Burke also states that corporate company is all attributes of a company as a reflection of public opinion whether the company is substantially 'good' or 'bad'.

Basis of Reputation
There are some factors that become basis of reputation that a company has and becomes dimension in this research (Nova, 2011;Chun, 2005;Lohmaan, 2016;Slee, 2011), namely: Communication. Robert D. Ross explains that communication is an important activities for a company in building its reputation and positive image in front of public. It can be stated that the role that Public Relations Departments has in internal and external communication as main function in the establishment of a reputation.
Professional Attitudes. Professionalism is way of working that has strong domination of attitude and behavior. It is not only a kind of ability and skill that individuals have but also values or norms that become benchmark whether individuals can work well or not.
Public Trust. Reputation can be built by growing trust and public satisfaction through experiences, achievement and realization of the given promises. Here it requires the balance between statement and action and openness in information and communication. Honest and openness are key principles in this matter. Public trust (belief) that they have grown is able to stimulate the sustainable attitudes to certain intensity.
Product Innovation. Innovation is the growth step from an idea. In an organization or company when creating innovation, it indicates that a company has willingness to progress. The role of innovation in pumping business performance includes all important aspects that can increase positive values and competitiveness in the company.
As a summary of the theories used in this study, we can see in the following table: Based on the aforementioned theories, the research hypothesis can be designed as follows: Ha1: There is direct influence of digital service quality (E-ServQual) towards corporate reputation Ha2: There is influence of digital service quality (E-ServQual) towards customers' trust Ha3: There is indirect influence of digital service quality (E-ServQual) and customers' trust towards corporate repuration Ho1: There is no direct influence of digital service quality (E-ServQual) towards corporate reputation Ho2: There is no influence of digital service quality (E-ServQual) towards customers' trust Ho3: There is no indirect influence of digital service quality (E-ServQual) and customers' trust towards corporate reputation

Material and Methodology
The research used survey research methods and it distributed questionnaire to the Facebook community members of bukalapak Jakarta with total number of 111 members. Moreover, it also did census to all community members. The questionnaire was made to use the Likert attitude measurement scale with the answer indicators from "very agree" to "very not agree" (by using 5 answer choices available with the rank value of 5 to 1).
The data analysis technique used in this study include (1) Path analysis towards three variables, i.e. digital services as variable X; customers' trust as variable Y and corporate company as variable Z. At first we did validity and reliability test to the research instrument; the test results with Cronbach's alpha 0.7 concluded that all instrumetns were valid and reliable to be used in this research, (2) Sobel test used to determine that the mediating variable used in this research could definitely mediate relations between independent and dependent variables. The questionnaire distribution was conducted online through the Facebook community of bukalapak for more than 2 (two) months. The statistic calculation was conducted with the SPSS program (Version 23).
Bukalapak is the ecommerce company and leading online marketplace in Indonesia. Like other online sale purchase websites with the basis of C2C (Customer to Customer), Bukalapak participates in the transaction services between buyers and sellers. Founded by Achmad Zaky, the Indonesian youth in the early of 2010, Bukalapak has been serving total transaction of 50 billion per day with total sellers of 1.3 million in 2016 (tekno.liputan6, 2017, January 10). Bukalapak gives opportunity for anyone to open their online shops on Bukalapak and serve buyers throughout Indonesia for transaction in a unit or many.
The brief summary of the respondent data answering the questionnaire was presented in the following four curves. These include data on age, profession, total expenditure per month and online shopping frequency that the respondents had done. If observing the respondents on the basis of their gender, 48% of the respondents were men (53 respondents) and 52% were women (58 respondents).
Based on the calculation results of SPSS, the results showed that 23 statements in the questionnaire had the variable of e-ServQual (X); 18 statements in the questionnaire had the variable of customers' trust (Y); and 16 statements in the questionnaire had the variable of corporate reputation (Z). All were valid and could become the tool of measurement in the research. The measurement of the instrument reliability with the use of Cronbach's Alpha > 0.70 indicated that the results for the three variables were 0.895; 0.921; dan 0.825 consecutively. It meant that the measurement instrument was reliable.

Result and Discussion
The discussion starts from the table of the following model summary. The data states that 52.3% of corporate reputation variation can be explained through customers' trust and e-service quality.
In other words, the two variables have been able to explain variation from the variable of corporate reputation because the mixed number of the two variable is more than 50%. Moreover, if we see the correlation test number of 73%, it indicates that there is strong relationship between the three variables in the research.
As the research results, it can be concluded that digital services (E-Servqual) does not have directly significant influence to corporate company, and the influence will be more significant through the variable of customers' trust. Therefore, digital services will have indirect influence to corporate repuration and the influence amounts to 0.63 x 0.62, i.e. 0.40 or 40%.
Can customers' trust mediate the relationship between digital services and corporate reputation? Based on Sobel test conducted to the three variables, it can be concluded that customers' trust is able to mediate the relationship between E-ServQual and corporate reputation. It means that the rate of customers' trust to the company can increase or decrease perception on the company's reputation after the customers get digital services when they carry out transaction with the company. Therefore, digital service that the company carries out can increase customers' trust to the company and not otherwise. It means that each touch point between customers and the company in online way will potentially increase or decrease customers' trust to the company. As a result, all payment failures, late responses to questions that the customers have sent on social media/the website, unexpectedly obscure answers, late shippings or even no shipping of the ordered goods that the company partners do will directly decrease customers' trust to the company. It is definitely possible that it is totally the failure of bukalapak.com. If the company does not immediately overcome it, finally the company's corporate reputation will get the impact.

Conclusion
From various studies on corporate reputation, it can be concluded that there is more important than reputation in a company as quoted from Chun (2005) who states "Not surprisingly, CEOs see corporate reputation as a valuable intangible asset. A favorable reputation encourages shareholders to invest in a company; it attracts good staff, retains customers (Markham,1972) and correlates with superior overall returns (Robert and Dowling, 1997; Vergin and Qoronfleh 1998). Moreover, it has to be understood that reputation differs from image in several aspects: reputation has long term; it does not change easily; it is the evolving process of a company; it becomes part of the company's consistent performance as well as it is built on the basis of experiences. Reputation is real description on the company's long-term quality.
Many studies on reputation do not see that in the context of digital companies, the reputation elements cannot be the same as those in offline companies. Lohmann (2016) states that, at least there are 3 (three) points that differ between services in the context of online and offline companies, i.e. better information access; no physical interaction; greater risk factors. The research has proved that: (1) In the aspect of better information access, the research indicates that digital customers do not make the web design as important aspect when they see corporate reputation. The web design is the biggest dimension in the variable of digital services that in fact has directly insignificant influence to reputation. It can also indicates why the digital services do not directly significant influence to reputation; (2) Digital customers will frequently look for way to replace the absence of physical interaction through all online features that the company has provided. When there is no face-to-face interaction, the online companies can replace it by sending questions through email or emoji that indicates annoyance due to late response or the ordered goods that do not arrive yet; and due to the complicated complaint procedures of which finally customers consider money they have paid as donation, but the annoyance can be uploaded in their personal social media. It means that the company's failure in providing optimal digital service can outburst customers' emotion through their personal digital canal (disappointedly) if it cannot get attention from the company. Firstly, it will reduce public trust to the company and it will give impact corporate reputation. Secondly, it will not directly influence reputation but reduce trust to the company and will jeopardize the future of the company. When handling corporate reputation in digital era, it does not only require high creativity but also has online reputation communication strategy correctly. Welcome in Online Reputation era!