An Examination of The Determinants of Customer Loyalty



Abstract Views
1237

Downloads
1245

Citations

Share

##plugins.themes.bootstrap3.article.sidebar##

Submitted Aug 17, 2020
Published Aug 24, 2020
10.24018/ejbmr.2020.5.4.478

Abstract viewed = 1237 times

Table of Contents

##plugins.themes.bootstrap3.article.main##

Brand equity, price, product quality, customer satisfaction, and the importance of customer loyalty in marketing which is the target and expectation of every company. Marketers expect to be able to retain their customers in the long term, even if possible forever. Therefore, this study wants to examine the factors that affect customer satisfaction and customer loyalty. These factors are brand equity, price, product quality, customer satisfaction, and customer loyalty. The required data were obtained through interviews using a questionnaire to 120 respondents. The data obtained were analyzed using Structural Equation Modeling (SEM) and SPSS 21 techniques. The results of hypothesis testing prove that brand equity has a positive effect on customer satisfaction, Price is a negative effect on customer satisfaction, Product quality has a positive effect on customer satisfaction, Customer satisfaction has a positive effect on customer loyalty, Brand Equity has a positive effect on customer loyalty, Price is a negative effect on customer loyalty, Product quality has a positive effect on customer loyalty, brand equity has a positive effect on customer loyalty through customer satisfaction, the price is a negative effect on customer loyalty through customer satisfaction, product quality has a positive effect on customer loyalty through customer satisfaction. Based on the results of testing the hypothesis, several managerial implications can be drawn, namely, that loyalty can be increased by increasing customer satisfaction, brand equity, price, and product quality. This is done by providing competitive prices according to the quality of the product. If the quality of the product is increased, the price will not affect the customer if it is increased, so automatically satisfaction will be formed, by itself a strong customer loyalty is formed. So it can be said that price does not affect in determining the level of customer satisfaction and customer loyalty because other very strong variables shape satisfaction and loyalty. High prices do not guarantee customers will be satisfied as well if the price of the product is cheap as long as the price is still reasonable for substitution category goods.

Keywords: Brand equity, price, product quality, customer satisfaction, loyalty

Downloads

Download data is not yet available.

References

  1. Fandy, T. (2008). Marketing Strategic. Yogyakarta: CV. Andi Offset.
     Google Scholar
  2. Ali Hasan. (2008). Marketing. Main Media, Yogyakarta.
     Google Scholar
  3. Aaker David.A., (1991), Brand Equity Management, leveraging the value of a brand. Jakarta: Main Partners.
     Google Scholar
  4. Sangadji, EM, and Sopiah. (2013). Consumer Behavior: A Practical Approach Accompanied by Research Journal Association. Yogyakarta: Publisher Andi.
     Google Scholar
  5. Kotler, Philip, and Gary Armstrong. (2012). Marketing Principles. Edition 13. Volume 1. Jakarta: Erlangga.
     Google Scholar
  6. Razak, N., Themba, O. S., and Sjahruddin, H. (2019). Brand awareness as predictors of repurchase intention: Brand attitude as a moderator. Advances in Social Sciences Research Journal, 6(2), 541-554.
     Google Scholar
  7. Fandy Tjiptono, (1997). Marketing Strategy, Issue 1, Publisher Andi, Yogyakarta.
     Google Scholar
  8. Band, O. (1991). Build Customer Satisfaction. Jakarta: Gramedia Pustaka Utama.
     Google Scholar
  9. Kartajaya, Hermawan. (2007). Marketing Mix. Bandung: Mizan.
     Google Scholar
  10. Kotler, Philip, and Kevin Lane Keller. (2012). Marketing management. Global Edition. Pearson Prentice Hall.
     Google Scholar
  11. Griffin, Jill. (2003). "Customer loyalty". Indonesian Edition. Jakarta: Erlangga.
     Google Scholar
  12. Mokhtar, S., and Sjahruddin, H. (2019). An examination of the relationships between customer relationship management quality, service quality, customer satisfaction and customer loyalty: The case of five star hotels. Advances in Social Sciences Research Journal, 6(2), 528-540.
     Google Scholar
  13. Themba, O. S., Razak, N., and Sjahruddin, H. (2019). Increasing customers’ loyalty. The contribution of marketing strategy, service quality and customer satisfaction. Archives of Business Research, 7(2), 1-15.
     Google Scholar
  14. Gunawan, Alvin. (2012). The effect of product quality, service quality, and price on consumer satisfaction at Moi Garden Restaurant Surabaya.
     Google Scholar
  15. Waskito Adi, (2008). Influence of Brand Awareness, Brand Association, and Perceived Quality Towards customer loyalty Honda Brand Motorcycles Case Study in Semarang City. Semarang: Economic Dynamics.
     Google Scholar
  16. Setya Ayu Diasari. (2016). The Effect of Price, Product and Service Quality on Customer Satisfaction and Loyalty.
     Google Scholar
  17. Irawan, Deny, and Edwin Japarianto. (2013). Analysis of the Effect of Product Quality on Loyalty through Satisfaction as an Intervening Variable in Por Kee Restaurant Customers in Surabaya. Surabaya: Journal of Marketing Management Vol. 1, No. 2 Petra Christian University.
     Google Scholar
  18. Munisih, Siti., And Soliha. (2015). The Effect of Product Quality on Customer Value and Customer Satisfaction and its Impact on Customer Loyalty at the Dela Pharmacy Semarang. Semarang: Faculty of Economics and Business, University of Stikubank Semarang.
     Google Scholar
  19. Putri, Dea Irana. (2013). The Effect of Product Quality and Location on Customer Loyalty through Satisfaction as an Intervening Variable. Diponegoro University, Semarang, Semarang.
     Google Scholar
  20. Haryanti, Setyani Sri., and Hastuti, Ida Dwi. (2011). The Effect of Service Quality and Marketing Mix on Customer Loyalty with Customer Satisfaction as an Intervening Variable.
     Google Scholar
  21. Ramli, A. H., and Sjahruddin, H. (2015). Building patient loyalty in healthcare services. International Review of Management and Business Research, 4(2), 391.
     Google Scholar


Most read articles by the same author(s)