| Mobile shopping application is one of the most effective channel for companies to offer products to the customers. Thus, it is necessary for companies/retailers to apply the best strategy in attaining customers, which is through customer engagement. Customer engagement is a psychological status that occurs by means of interactive customer experiences build in the mobile platform for shopping. This study refers at validating and developing a measurement model of customer engagement specifically on mobile shopping applications in Jakarta, with the moderating effect of habit in the measurement model, in predicting customer loyalty. This research implicated respondents that dwell on mobile devices for shopping through in-depth interviews (10 respondents) and survey questionnaires (300 respondents) with purposive sampling method. Moreover, Structural Equation Modeling was adopted as a method to analyze the gathered data. Outputs of this research contain validation and development of customer engagement as second-order concept coming out of six customer experiences, such as social-facilitation, intrinsic enjoyment, time filler, self-connect, utilitarian, and monetary dimensions. This study also approves that customer engagement has a strong influence toward loyalty, as well as habit is a moderator of satisfaction and loyalty. In addition, customer engagement also depicts significant variance with usability and satisfaction in the building of loyalty. This study provides a better overview to people’s predisposition in Jakarta about mobile shopping applications. It also contributes a framework for companies to devise improvements from tracking experiences and also engagement of customers in the context of mobile shopping apps. Furthermore, companies can use customer engagement and analyze habitual tendencies of customer to deliver themselves atop in competition and also attracting advertisers and merchants with the programs proposed in this study (Augmented Reality, Extra Points, Lucky Roulette, and Push Notifications). |