2018DOAJ (DOAJ: Directory of Open Access Journals)Open access

BENCHMARKING THE INTERACTIONS AMONG BARRIERS IN DAIRY SUPPLY CHAIN: AN ISM APPROACH

Tigor Sitorus, Milawati Yustisia

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Abstract

This study aims at investigating and testing the mediated effect of Customer Satisfaction on the influence of the Service Quality and Customer Trust toward Customer Loyalty. This research was conducted in the five biggest national foreign exchange private banks that are listed in the Indonesia Stock Exchange up to the period of 2014, with the total sample of 170 customers, where after the monetary crisis in 2008, the business of bank in Indonesia was faced with the issue of customer trust that eventually influenced the customer loyalty. In this study, the Structural Equation Model by AMOS was used to analyze the data. The results show high Goodness of Fit and the simultaneous and individual tests also generated significant results. The results of data analysis show that: (1) Service Quality significantly gives positive influence to Customer Satisfaction, (2) Customer Trust has significant and positive influence on Customer Satisfaction, (3) Service Quality does not significantly give positive influence to Customer Loyalty, (4) Customer Trust significantly gives positive influence to Customer Loyalty, and (5) Customer Satisfaction significantly gives positive influence to Customer Loyalty. Therefore, the mediated effect of Customer Satisfaction on the influence of Service Quality and Customer Trust toward Customer Loyalty has more strength compared to the direct influence of Service Quality and Customer Trust toward Customer Loyalty.

About this research paper

What this paper is about

This study aims at investigating and testing the mediated effect of Customer Satisfaction on the influence of the Service Quality and Customer Trust toward Customer Loyalty. This research was conducted in the five biggest national foreign exchange private banks that are listed in the Indonesia Stock Exchange up to the period of 2014, with the total sample of 170 customers, where after the monetary crisis in 2008, the business of bank in Indonesia was faced with the issue of customer trust that eventually influenced the customer loyalty. In this study, the Structural Equation Model by AMOS was used to analyze the data. The results show high Goodness of Fit and the simultaneous and individual tests also generated significant results. The results of data analysis show that: (1) Service Quality significantly gives positive influence to Customer Satisfaction, (2) Customer Trust has significant and positive influence on Customer Satisfaction, (3) Service Quality does not significantly give positive influence to Customer Loyalty, (4) Customer Trust significantly gives positive influence to Customer Loyalty, and (5) Customer Satisfaction significantly gives positive influence to Customer Loyalty. Therefore, the mediated effect of Customer Satisfaction on the influence of Service Quality and Customer Trust toward Customer Loyalty has more strength compared to the direct influence of Service Quality and Customer Trust toward Customer Loyalty.

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Available abstract

This study aims at investigating and testing the mediated effect of Customer Satisfaction on the influence of the Service Quality and Customer Trust toward Customer Loyalty. This research was conducted in the five biggest national foreign exchange private banks that are listed in the Indonesia Stock Exchange up to the period of 2014, with the total sample of 170 customers, where after the monetary crisis in 2008, the business of bank in Indonesia was faced with the issue of customer trust that eventually influenced the customer loyalty. In this study, the Structural Equation Model by AMOS was used to analyze the data. The results show high Goodness of Fit and the simultaneous and individual tests also generated significant results. The results of data analysis show that: (1) Service Quality significantly gives positive influence to Customer Satisfaction, (2) Customer Trust has significant and positive influence on Customer Satisfaction, (3) Service Quality does not significantly give positive influence to Customer Loyalty, (4) Customer Trust significantly gives positive influence to Customer Loyalty, and (5) Customer Satisfaction significantly gives positive influence to Customer Loyalty. Therefore, the mediated effect of Customer Satisfaction on the influence of Service Quality and Customer Trust toward Customer Loyalty has more strength compared to the direct influence of Service Quality and Customer Trust toward Customer Loyalty.

Key concepts: Service quality, Business, Customer satisfaction, Loyalty business model, Customer delight, Customer retention, Marketing, Customer advocacy

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