Driving Customer Retention Intention in the Indonesian Digital Economy: The Interplay of Multidimensional Values, Perceived Risk, and Trust

Abstract

High churn rates and the inherent anonymity of digital marketplaces make customer retention a complex strategic imperative. To understand the psychological mechanics associated with consumer continuance intention, this research examines the interplay of multidimensional values (utilitarian, hedonic, and social) and perceived risk through the lens of the Stimulus–Organism–Response (S-O-R) paradigm. Responses gathered from a purposively recruited sample of 270 active e-commerce shoppers in Indonesia were evaluated using Partial Least Squares Structural Equation Modeling (PLS-SEM). The analysis reveals a complex partial mediation structure. While utilitarian value and perceived risk operate strictly through internal psychological states, hedonic and social values exhibit significant direct and indirect effects on retention intention. Both relational trust and transactional satisfaction emerge as paramount predictors of retention intention. By mapping the sequential and direct associations of marketing stimuli with continuance intention, this study broadens the applicability of the S-O-R framework in emerging digital economies. The findings suggest that platform strategies prioritizing experiential engagement—such as gamification—and visible risk mitigation policies may offer valuable approaches for supporting long-term consumer relationships.