Development Business Based on E-Commerce in Improving Service Quality in Crafte House Businesses

Development Business Based on E-Commerce in Improving Service Quality in Crafte House Businesses

Jihan Fauziah Afifah, Muhammad Rakib^*, Andika Isma

Department of Business and Entrepreneurship, Faculty of Economics and Business, Universitas Negeri Makassar, Indonesia

*Corresponding Author

DOI: https://dx.doi.org/10.47772/IJRISS.2024.815EC0010

Received: 11 November 2024; Accepted: 19 November 2024; Published: 19 December 2024

ABSTRACT

This study aiming for increase quality services in business craft house with using e-commerce Tokopedia. Types of research This is study normal development​ called research and development (R&D) which is used for produce a product new or develop old products. The research method used is a mix method, with using the ADDIE development model (analysis, design, development, implementation, and evaluation). Data collection was carried out through observation, interviews, and dissemination questionnaire to consumers. Research results show that Tokopedia’s e-commerce implementation provides impact positive and significant to improvement quality service Crafte House if compared to with service previously via Instagram. Indicator quality service like reliability, assurance, tangible, and responsiveness experience significant improvement. This is seen from difference mark gap between perception and expectation consumers who show results positive with show improvement service through Tokopedia makes it easier consumer in transact, access information products, and communicate with seller in a way faster and more efficient. In overall, results study proves that the use of Tokopedia based e-commerce is capable of repair quality services and improve satisfaction consumers. In addition, Tokopedia helps Crafte House expands market reach and increase Power competition in the increasingly digital era develop.

Keyword: Development Business, E-Commerce, Quality Service

INTRODUCTION

Entrepreneurship is mental attitude and abilities possessed somebody in business for develop potential his business. In addition, entrepreneurship also involves ability creative and innovative creation​ foundation, strategy and resources power for identify opportunity in business. Currently, there are various type entrepreneurship that can utilized in development business, one of them is technopreneurs, namely technology focused entrepreneurship​ (Rakib, Azis, Sanusi, et al., 2024), through the digitalization era, companies must utilise technology information for increase efficiency in give service to consumers. Use technology information in operational business allow company For increase efficiency operational, quality products and services, expanding market reach, as well as speed up business processes (Cumming et al, 2023; Ahi et al, 2023).

Development Keep going continuously in technology information, which also encourages the advancement of the internet, providing convenience for the perpetrators business in motion fast and increasingly competitive, role technology very important information for competitive and attractive as much as Possible consumers. However, in development business No only about interesting as much as Possible consumer For increase profit, but also about to maintain them to feel required as priority (Saber & Aly, 2022; Karp et al, 2024). Maintaining consumer, no easy thing​ in operate business. Consumer Can just choose for shop elsewhere only​ because feel No satisfied on services provided. Therefore​ That quality service become aspect crucial thing to do be noticed and continue improved. One of the implementation technology information For increase quality service is through implementation of e-commerce (Mianda et al., 2023).

In today’s modern business, the implementation of e-commerce becomes need important for support development business. With the more the amount e-commerce users, competition in the business world is also increasing increased. For can compete and survive, companies must provide service of appropriate quality with needs that make it easier Consumers. Level of satisfaction consumer to services received​ influenced by experience shopping. Consumers usually choose service based on priority them, and after use service said, they will compare it with hope beginning they (Trifiro et al., 2022). Quality good service​ is one of factor main influencing factors satisfaction customer. When the customer feels satisfied, they tend for do transaction repeat, which will give profit for company. Therefore that, provides service quality tall become not quite enough answer for company in order to be able to build trust and improve satisfaction consumer (Greene et al, 2023).

Satisfaction consumer is very important element in vision, mission and goals a effort. This is what drives a business for Keep going innovate and develop his efforts for fulfil need consumers. For increase satisfaction customer No only focus on quality service​ only, but also with create interesting product. However, in​ create A product must see from what consumers need. Real examples​​​ can see from sector industry creative in progress experience significant growth​ moment this, namely product accessories. Development in the world of fashion, especially accessories are heavily influenced by trends style life community. Variety of choices design that makes consumer Keep going interested for choose the product accessories.

Crafte House is businesses located in the Regency Pangkep, South Sulawesi, Indonesia. This effort produces various type handmade accessories made using beads and clay materials. Accessories that are produced use beads and clay materials are rings, bracelets, earrings, necklaces, and cell phone holders. Crafte House was founded in 2017 by Nurlita Wulan Purnama, but stop operating in 2018. By the end of 2022, the business This continued by his younger sister, Nazli Suhayati, who is now become owner. After return operating, Crafte House introduces product new following​ trend latest and start known until outside Regency Pangkep. Although so, marketing is only via social media make it difficult reach customers outside​ area said. For increase efficiency and reach a wider market spacious, Crafte House turns to Tokopedia, the largest e-commerce platform in Indonesia, which facilitates development online business with various convenience. Tokopedia is one of the largest e-commerce platforms in Indonesia. In relation to with quality service Tokopedia facilitate owner business in Indonesia for develop as well as manage online business with easy, at the same time offer consumer experience more online shopping safe and comfortable. One of his is with make it easier transaction business, Tokopedia offer various method payments that can be made chosen in accordance desire consumers.

Based on background the back that has been described, then formulation problem in study This is How quality service Crafte House after implementing E-commerce Tokopedia in develop quality services. Research implemented aiming for now specification quality expected service​ consumer Crafte House after implementing e-commerce Tokopedia in development his efforts.

LITERATURE REVIEW

A. Entrepreneurship

Entrepreneurship is defined as the process of creating something new with value, involving the use of the necessary time and effort, and being able to face various financial, physical, and social risks that accompany it, receiving the resulting monetary rewards, and personal satisfaction and freedom (Akbar et al., 2024). The characteristics of an entrepreneur, namely creative and innovative, are never satisfied with the methods currently used, even though they are good enough, always pouring imagination into their work, always wanting to be different or take advantage of differences (Rahmi, Rakib et al., 2024). Entrepreneurial attitude is a person’s tendency to act, feel, and think, as well as a person’s views or opinions on certain attitude objects related to entrepreneurship (Azzahrah et al., 2023). Some of the entrepreneurial characteristics required include being innovative, daring to take risks, proactive, disciplined, having high commitment, honest, creative, independent, realistic, diligent, punctual, polite, friendly, flexible, having great responsibility, and a high sense of belonging to the company. Meanwhile, according to Spigel (2018) from a resource perspective, entrepreneurship involves individuals who combine labor, materials, and other assets into a combination that produces higher value than before, and introduces changes, innovations, and new rules. According to Gao & Meng (2022) in public policy, entrepreneurship has been recognized as an important driver of economic growth. For example, policies that support technopreneurship have a major impact on encouraging technological innovation and creating new fields. According to Onileowo & Muharam (2024) technopreneurship is a powerful tool and force for entrepreneurs who want to transform their businesses into innovation-driven companies by leveraging the linkages between technological competence, innovative capacity, resources, and attractive environmental factors, such as research and development, technological opportunities, and intellectual property rights.

B. Development Business

Development can be interpreted as an effort to improve individual abilities in conceptual, theoretical, technical, and moral aspects of individuals that are adjusted to the needs of work or positions through education and training. Business development is the responsibility of every entrepreneur who requires foresight, motivation, and creativity (Fadilla et al., 2023). Developing a business is the responsibility of every entrepreneur who requires foresight, motivation, and creativity (Lestari et al., 2024). Business development includes all activities regulated by individuals involved in trade and industry, with the aim of providing goods and services to meet the needs of life and improve their standards and quality of life. Business development is a series of activities carried out by a company to achieve its goals, increase sales and profits by utilizing existing business growth opportunities, use of technology, and create innovation (Ningsi et al., 2024). According to Law Number 20 of 2018 Article 19, one of the efforts carried out in the context of business development, especially MSMEs, is by developing human resources by requiring, cultivating entrepreneurship, and forming and developing educational and training institutions to carry out education, training, counseling, motivation and business creativity, and the creation of new entrepreneurs. E-commerce can help business development by optimizing product marketing through the application of deep learning and data mining (Yang et al., 2022).

C. Technology Information

Information technology is a process that starts from data acquisition, processing, to data analysis which is then stored using various methods to produce quality information (Rakib, Azis, Najib, et al., 2024). Information technology combines computer and communication technology to process data, including processing, obtaining, compiling, storing, and manipulating data in various ways to produce quality information that is relevant, accurate, and timely, which is used for personal, business, and government interests, and becomes strategic information in decision making (Walsh et al., 2022). In the business world, information technology has an important role as a means of transaction for various types of online businesses, including providing internet facilities and websites that allow consumers to choose the products they want. In addition, support for communication technology is needed as a medium of communication, banks as a medium of payment, and shipping agents to support online business processes (Rakib, 2023). By utilizing information technology in business, a significant positive impact will be achieved for the sustainability of the business being built. Various experts have views regarding information technology, namely: technology information is tools used​ For handle changes that occur in computerization, states that technology information is combination from technology computers and devices used​ for processing as well as keep information in the computer, and technology information as technology used​ For processing data that is relevant, accurate and precise (Syam et al., 2021).

D. E– Commerce

E-commerce is a part of e-business that not only uses network technology, but also involves database technology, electronic mail (e-mail), and other non-computer technologies, such as shipping systems and payment instruments. E-commerce is defined as the process of buying, selling, and exchanging products, services, and information through computer networks, especially the internet (Rakib et al., 2023). From this definition, it can be concluded that e-commerce includes the stages of development, marketing, sales, delivery, service, and payment for various products and services traded in the global market, with the support of the internet network. The benefits of implementing e-commerce for companies are enabling access to international markets, running a business without geographical boundaries thanks to digital technology, reducing operational costs, speeding up transaction processes, reducing the risk of human error, and reducing paper use in various activities. Through e-commerce, technology also provides a significant competitive advantage (Silitonga et al., 2024). Data analysis allows companies to understand customer behavior and market trends, which can then be used to make smarter decisions in marketing strategies and product development. E-commerce also has a risk of fraud, so a fraud detection model based on artificial intelligence and data mining is needed (Li, 2022).

E. Quality Service

Service quality reflects the company’s ability to meet customer expectations. If the service received by customers is in accordance with expectations, then the quality is considered good and satisfactory. Conversely, if the service provided does not meet expectations, then the quality will be perceived as bad or disappointing. Service quality is reflected in the fulfillment of customer needs and desires and the accuracy in providing services, so that it can be in line with or even exceed customer expectations. Better service quality will increase the level of customer satisfaction. Therefore, improving service quality needs to be done to maximize consumer satisfaction (Putera et al., 2020). Service quality is providing perfect service carried out by service providers in meeting customer needs and desires and the accuracy of delivery to match customer expectations (Fadhillah et al., 2023). In the context of measuring service quality variables, Parasuraman, Zeithaml, and Berry identified five dimensions of service quality measurement, namely reliability, responsiveness, assurance, tangible, and empathy. According to Costa et al. (2023) performance measurement and digital transformation in SMEs also need to consider sustainability aspects.

METHOD

Types of research used in study This is study development, which focuses on the creation of product or solution new based on problem or challenges that have been identified previously. In the context of this, research development carried out aiming For create development more continue on quality service business Crafte House, the chosen one as subject main study This. Development is carried out based on various problems that have been formulated in a way deep in the stage beginning research. Researcher using the ADDIE development model because own framework systematic and structured work. This model consists of five interrelated stages​ related, namely analysis, design, development, implementation, and evaluation. Data is collected through interviews, questionnaires and documentation. techniques data analysis used is a mix method, namely merger study qualitative and quantitative. Stages study ADDIE development in study This can served in form chart as following:

Figure 1. Stages Procedure Development

RESULTS AND DISCUSSION

A. Analysis​ Need

Based on the results of the initial questionnaire distributed to the owners and consumers of Crafte House, the needs analysis that has been carried out is the basis and main consideration in designing a strategy for developing the quality of Crafte House services. This step is taken to identify precisely the shortcomings that need to be fixed in order to improve the quality of service and business development. The analysis is focused on the Instagram application used by Crafte House as the main platform in serve its consumers. Quality service Instagram This measured use five dimensions measurement contained in the SERVQUAL method, namely reliability, assurance, tangible, empathy, and responsiveness. In the analysis process, hope customer to quality service Instagram craft house compared to with perception their actual to performance application Instagram said. Comparison This give outlook deep regarding the gap between expectations and reality, which then becomes the basis for improvements that need to be made. The results of processing the questionnaire data the initial dissemination aims to measure level quality Instagram services for the craft house business can be seen in detail in the table below.

Table 1. Gap Value in Quality Crafte House Instagram Services

Source: Data processed by researchers 2024

Based on thick on Which analyze average hope on every dimension’s quality service Instagram Crafte House, it is known that the dimensions of reliability, assurance, tangible, and responsiveness have higher expected values than perceived values. This means that the quality of service expected by consumers is much higher than the actual performance felt by consumers, thus requiring development and improvement in these dimensions. On the other hand, for the empathy dimension because its perceived value is higher than consumer expectations, this dimension needs to be maintained and guarded in order to continue to provide satisfaction to consumers. Through results analysis need known that:

1. In terms of reliability there is enough shortage​ significant in matter Instagram site capabilities Crafte House for give appropriate service​ with the promise that has been delivered to consumer in a way accurate and precise time.
2. In terms of assurance there is lack about Instagram site capabilities craft house in gives a sense of trust and confidence to consumers.
3. From a tangible perspective there are a number of enough shortage​ striking related with Facilities and features available on the Instagram site Crafte House. Indicator quality services in the tangible dimension show that Instagram site Crafte House has appearance display case less shop​ interesting and less informative, because no equipped with description clear and complete products.​
4. In terms of responsiveness there is lack yes Enough significant in matter commitment Crafte House as online store for give service in a way fast and precise, and in matter will for help consumer with quick when they need help. Indicator quality service for responsiveness dimension shows that Instagram site Crafte House less effective in handle needs and complaints consumer in a way appropriate time.

B. Design​ Development Quality Service

Based on results analysis needs that have been done, found that dimensions quality services needed​ developed in business Crafte House, namely, reliability, assurance, tangible, and responsiveness. For increase quality services on dimensions said, Crafte House takes step strategic with develop service through the e-commerce platform Tokopedia. Here This is description more carry on about design development that will be applied For increase quality services in business Crafte House, which is expected can fulfil expectation consumer with more Good.

Figure 2. Design Development Quality Service Craft House

Service flow or process Crafte House through Tokopedia started with stage search product where customer look for product with feature search or category then customer compare product based on description, price, reviews and photos after find desired product​ furthermore customer put it in to in basket shopping to buy.​ At the customer checkout stage requested for verify order and address delivery as well as choose method payment then customer will make payment process use method selected payment​ such as bank transfer or using digital wallet. After that, seller/sender will send notification that order has processed and will be do delivery product to address that has been determined customers, and customers can track delivery status said. After product accepted, customer enter stage post purchase where customer requested for give review or submit complaint if required.

C. Development Quality Service

Development this done with focus on improvement various aspect service before and after adapting the ADDIE development model which is approach structured and comprehensive. The following this is details developments made on quality​ service Crafte House via Tokopedia.

a. Reliability

Developments made on indicators​ service Crafte House related reliability, in particular in giving appropriate service​ with need customers, including a number of aspect important that is not available moment customer shop via instagram site Crafte House. One of the effort development the is with provide feature more search​ efficient, which allows consumers to be easier look for the products they need through name product or code products. Furthermore, crafte house also adds product details and descriptions. more products​ comprehensive, which includes information complete about specification products, materials used, dimensions, and various information relevant. More detailed description details this is very helpful consumer in understand quality and characteristics product before do purchase, which ultimately increase trust consumer to services provided by Crafte House.

b. Assurance

Developments made on indicators​ quality service Crafte House related guarantee availability stock product is one of step important for provide a sense of security and certainty to consumers. Guarantee availability stock product this can considered as form insurance provided by the seller, namely crafte house to consumers. In addition, other differences that can be felt consumer moment shopping at Tokopedia Crafte House is existence system more refunds​ guaranteed and automatic. This refund process done with fast and efficient, according to with method payment method chosen by the consumer moment transaction. Existence feature this no only provide a sense of security to consumer in every transaction, but also increase trust consumer to craft house.

c. Tangible

The development carried out by Crafte House includes: various step strategic aiming​ for increase power visual appeal and comfort shop for consumers. One of the development mains is arrangement repeat display case shop to be more interesting in a way aesthetics, as well as grouping product based on clear categories. The most significant developments from the tangible aspect are features available payments. Increase​ feature transaction Crafte House via Tokopedia​ provide various choice method more payments​ flexible and diverse. Another difference that can be felt consumer moment transact via Tokopedia compared to with transact on the Instagram platform is convenience and efficiency in the ordering process. In addition, Tokopedia also provides features that enable customer for now the order status they without need wait manual confirmation from the store admin, as is often the case happen when via Instagram. In addition to the development status orders, customers can also know estimate time arrive product in a way accurate, which helps they in plan reception goods with better. Through Tokopedia also Crafte House also provides notification automatic to customer so order they has until, make sure that they always get information latest about shipping status without must do checking manually or​ wait response from seller.

d. Responsiveness

Via Tokopedia customer Crafte House can with easy and fast send his complaint use available chat features in a way directly on the page product or shop. This feature allows more communication​ fast and responsive. In addition, Tokopedia also provides feature center resolution, which is tool help for customer in discuss and search solution from orders that have problem with attach proof. Through Tokopedia also Crafte House can​ reach consumer using customized chat toped bot based on time and type need certain in respond message from customer.

D. Implementation​ Tokopedia Services

At the stage this, a trial was conducted service to consumer with facilitate sale via the Tokopedia platform Crafte House, so that consumer can in a way direct evaluate quality services offered by Crafte House after​ development done. Implementation process this also includes promotion active on account Instagram Crafte House, which aims for direct consumers to start do spending through Tokopedia, at the same time test the extent of the changes that have occurred applied can increase experience shop consumers. In addition, the stage this also includes trials​ use of Tokopedia Crafte House consumers, owners, and validators are carried out in a way special for get bait come back about use services that will be applied.

E. Breastfeeding Evaluation Quality Tokopedia Services

Stage evaluation this functioning as an analysis process for understand feedback and feedback come back from respondent about quality services provided by Crafte House. For evaluate how much good quality services felt by consumers​ compared to with hope they are used SERVQUAL method. In this process, SERVQUAL method data processing includes average rate calculation hope, and SERVQUAL gap calculation for dimensions services evaluated.​

Calculation value obtained​ from test results​ quality service Crafte House on the Tokopedia platform give deep insight​ about effectiveness implementation service new the results of the evaluation this summarized in table 2 which gives view details about performance service based on real data generated from stage implementation.

Table 2. Quality Test Service

Source Data: Data processed by researchers, 2024

Overall, the total gap value of all question items shows quite good results, with a total gap value between consumer perception and expectation of 1.21875. This shows that the respondent’s responses from the questionnaire assessed that the service quality of Crafte house in general was already at an adequate level, although there are still some dimensions that may need further attention to improve overall consumer satisfaction.

DISCUSSION

Based on the results of research conducted on the craft house business, it was revealed that in its marketing strategy, the craft house still relies on the use of Instagram as the main platform in serving consumers. Although Instagram has helped introduce products to the wider community, however, craft house owners also often receive complaints and input from customers who are dissatisfied with the quality of service provided through the platform. In an effort to develop the business and develop the quality of craft house services, researchers chose to apply the ADDIE development model (Analysis, Design, Development, Implementation, Evaluation).

The first step is to conduct an analysis focused on the Instagram application used by Crafte House as the main platform in serving its consumers. Continued by the design or development design stage which is carried out based on the results of the needs analysis to design the right solution to overcome the identified deficiencies. After designing the right solution, the next step is to develop the quality of Crafte House services using Tokopedia.

The development carried out is on the Crafte House service in the dimensions of reliability, guarantee, direct evidence, and responsiveness. One of these development efforts is through the reliability dimension by providing an efficient search feature. In addition, to further facilitate the process of searching for Crafte House products through Tokopedia, it also provides a filter feature that allows consumers to group products. There is also a product description that includes complete information about product specifications. The features offered on the homepage have a special appeal thanks to the visual appearance designed to attract the attention of online buyers. For example, each product photo is equipped with a detailed description such as size, material, and color choices that give buyers a better understanding of the product. Development is carried out on the guarantee dimension, namely related to the guarantee of product stock availability, a refund guarantee if there is a problem with the product ordered. Development in this guarantee dimension can provide a sense of security to consumers in every transaction, but also increase consumer trust in Crafte House. Consumer trust has a positive effect on purchasing decisions at social media (Sanusi et al., 2023). The greater the efforts made by the company to maintain and increase consumer trust, the higher the consumer’s confidence in making purchasing decisions at Tokopedia which can increase business development.

Development is carried out on the direct evidence dimension by rearranging the store front to be more attractive and grouping products based on clear categories, providing various payment methods, providing consumers with features that facilitate the transaction process and receipt of goods. The better the ease of transactions in the eyes of consumers, the greater the urge to decide to buy products on the Tokopedia e-commerce.

The last development is done on the responsiveness dimension that can be felt by Crafte House customers is how communication and complaint handling are carried out at Tokopedia. There are chat features, resolution centers, and chat toped bots that help consumers to be responded to faster by Crafte House. The discussion feature in social media allows consumers to interact, ask questions, and consult directly with sellers about products (Sanusi et al., 2023). The presence of this discussion feature can create variations in consumer perceptions of the products offered which will ultimately influence purchasing decisions.

In addition, the use of computer security technology can help in building a sustainable e-commerce platform business model (Ma & Wang, 202. (Gallagher, 2023)explained that reducing the time between confirmation of eligibility and admission to care can improve the effectiveness of coordinated specialist care services. {Formatting Citation} showed that the emotional attitudes of functional service providers and retail service integrators can affect the collaborative quality of new retail service supply chains(Id & Li, 2.

After developing each dimension of service quality, the Tokopedia craft house service is then implemented directly to customers to see its effectiveness in practice. This implementation stage also includes active promotion on the craft house Instagram account. This stage is followed by an evaluation of craft house consumers who use Tokopedia, which aims to determine how good the quality of service is perceived by consumers.

Based on the results of respondent’s responses regarding the quality of Crafte House services at Tokopedia. Overall, the number of gap values from all question items shows quite good results with consumer perception values greater than consumer expectations. This shows that the quality of crafte house services at Tokopedia is already at an adequate level.

The quality of Crafte House services using Tokopedia is more improved compared to the quality of Crafte House services using Instagram. The quality of service received positive responses from respondents from the indicators of tangible, reliability, responsiveness, assurance and empathy. Consumers with a more positive attitude in making purchases through e-commerce sites will ultimately increase customer satisfaction (Wahyudin et al., 2024).

CONCLUSION

Response results on the trial with the ADDIE model involving 32 respondents, obtained that quality service Crafte House using Tokopedia Enough Good with mark difference between perception and expectation consumer as big as 1,21875. Response informant from questionnaire state that quality service Crafte House using Tokopedia Enough good. Development business based on Tokopedia in increase quality services in business Crafte House provides change as well as updates service for consumers. Development process walk ok, start from research weakness service, then communication regarding the idea, next namely making design Tokopedia service, after That done development quality service and last evaluation quality service. This research has shortcomings because it only focuses on the development of four aspects, namely, reliability, assurance, tangible, and responsiveness, there is one other aspect that are maintained without further development, because they are considered to have high value and consumers still want them for maintained.

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