THE EFFECT OF PRODUCT QUALITY, SERVICE QUALITY, CORPORATE IMAGE AND PERCEIVED VALUE ON CUSTOMER LOYALTY OF B2B TRUCK COMPANY WITH CUSTOMER SATISFACTION AS INTERVENING VARIABLES

Authors

  • Steven Wirajaya Parahyangan Catholic University, Indonesia
  • Hotna Marina Sitorus Parahyangan Catholic University, Indonesia
  • Yogi Yusuf Wibisono Parahyangan Catholic University, Indonesia
  • Daniel Kurniawan Parahyangan Catholic University, Indonesia
  • Livia Nathania Parahyangan Catholic University, Indonesia

DOI:

https://doi.org/10.29040/ijebar.v7i4.11569

Abstract

PT X is a multinational B2B automotive company that provides large trucks. Based on truck sales data from 2019 to 2021, PT X has experienced a decrease in truck sales. In July 2021, 2 out of 6 transactions failed because customers preferred to buy trucks from other companies. PT X suspects issues with customer loyalty. This study aims to evaluate customer loyalty levels based on factors influencing them. The research phase begins with the construction of research models and questionnaires containing rating questions on perceived value, product quality, service quality, corporate image, customer satisfaction, and customer loyalty. Questionnaires were distributed to customers who had purchased trucks from PT X between October 2021 and November 2021. Data processing is conducted using the PLS-SEM method to derive research conclusions. Based on the results of data processing, it was found that the factors affecting customer loyalty are product quality, corporate image, and customer satisfaction. Suggestions include a focus on these three factors and improvement in the spare part procurement system, with the hope that customer loyalty levels and truck sales will increase.

References

Alireza, N., Palazzo, M., Mohammad, J., Pantea, F., Amiri, N. S., & Salami, G. E. (2020). Integrated marketing communication in B2B2C area. In Beyond multi-channel marketing: Critical Issues in Dual Marketing (pp. 1-20). Emerald Publishing Limited.

Anderson, E.W. and Weitz, B. (1989), “Determinants of continuity in conventional industrial channel dyadsâ€, Marketing Science, Vol. 8, No. 4, pp. 310-23. https://doi.org/10.1287/mksc.8.4.310

Angelova, B., Zekiri, J. (2011). Measuring customer satisfaction with service quality using American Customer Satisfaction Model (ACSI Model). Int. J. Acad. Res. Bus. Soc. Sci.1, 232–258.

Anton, J. (1996). Customer Relationship Management: Making Hard Decisions with Soft Numbers. Upper Saddle River, Prentice-Hall.

Askariazad, M. H., & Babakhani, N. (2015). An application of European Customer Satisfaction Index (ECSI) in business to business (B2B) context. Journal of Business & Industrial Marketing, 30(1), 17-31. https://doi.org/10.1108/JBIM-07-2011-0093

Badan Pusat Statistik. (2019). Statistik Transportasi Darat 2019. Downloaded from https://www.bps.go.id/publication/

Chumpitaz, R., & Paparoidamis, N.G. (2004). Service quality and marketing performance in business-to-business markets: Exploring the mediating role of client satisfaction. Managing Service Quality, 14(2/3), 235-248. https://doi.org/10.1108/09604520410528653

Clemes, M.D., Gan, C., Kao, T.H. and Choong, M. (2008), “An empirical analysis of customer satisfaction in international air travelâ€, Innovative Marketing, Vol. 4, pp. 50-62.

CNN Indonesia. (2020). Bisnis Logistik dan Jasa Kurir Melejit di Tengah Corona. Downloaded from https://www.cnnindonesia.com/

Cretu, A.E., & Brodie, R.J. (2007). “The influence of brand image and company reputation where manufacturers market to small firms: A customer value perspectiveâ€, Industrial Marketing Management 36, pp. 230 – 240. https://doi.org/10.1016/j.indmarman.2005.08.013

Devaraj, S., Matta, K. F., & Conlon, E. (2001). Product and service quality: The antecedents of customer loyalty in the automotive industry. Production and Operations Management, 10(4), 424-439. https://doi.org/10.1111/j.1937-5956.2001.tb00085.x

Eskildsen, J., Kristensen, K., Jorn, J. H., & Ostergaard, P. (2004). The drivers of customer satisfaction and loyalty. The case of Denmark 2000–2002. Total Quality Management & Business Excellence, 15(5-6), 859-868. https://doi.org/10.1080/14783360410001680297

Fornell, C., Johnson, M. D., Anderson, E. W., Cha, J., & Bryant, B. E. (1996). The American customer satisfaction index: nature, purpose, and findings. Journal of marketing, 60(4), 7-18. https://doi.org/10.1177/0022242996060004

González, A. G. (2015). Service quality and repurchase behaviour in the Spanish automotive after sales business. Journal of Relationship Marketing, 14(3), 239-267. https://doi.org/10.1080/15332667.2015.1069456

Hair Jr, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). 2nd ed., SAGE Publications.

Halim, B. C. (2014). Pengaruh brand identity terhadap timbulnya brand preference dan repurchase intention pada merek toyota. Jurnal Strategi Pemasaran, 2(1), 1-11.

Hellier, P., Geursen, G., Carr, R., & Rickard, J. (2003). Customers repurchase intention: A general structural equation model. European Journal of Marketing, 37(11/12), 1762-1800. https://doi.org/10.1108/03090560310495456

Hoyer, W. D. & MacInnis, D. J. (2001). Consumer Behaviour. 2nd ed., Boston. Houghton Mifflin Company.

Ishaq, M. (2011). A study on relationship between service quality and customer satisfaction: An empirical evidence from Pakistan telecommunication industry. Management Science Letters, 1(4). https://doi.org/10.5267/j.msl.2011.06.005

Jahanshahi, A. A., Gashti, M. A. H., Mirdamadi, S. A., Nawaser, K., & Khaksar, S. M. S. (2011). Study the effects of customer service and product quality on customer satisfaction and loyalty. International Journal of Humanities and Social Science, 1(7), 253-260.

Kotler, P. and Armstrong, G. (1996), Principles of Marketing, Prentice Hall, Upper Saddle River, NJ.

Kristensen, K., Martensen, A., & Gronholdt, L. (2000). “Customer satisfaction measurement at Post Denmark: Results of application of the European Customer Satisfaction Index Methodologyâ€. Total Quality Management, Vol. 11, No.7, 1007–1015. https://doi.org/10.1080/09544120050135533

Kuo, N.T., Chang, K.C., Cheng, Y.S. and Lai, C.H. (2011), “The impact of service quality, customer satisfaction and loyality in the restaurant industry: moderating effect of perceived valueâ€, Proceedings of the Quality and Reliability ICQR – IEEE International Conference, pp. 551-555. https://doi.org/10.1109/ICQR.2011.6031600.

Lam, S.Y. Shankar, V, Erramilli, K.M. and Murthy, B., (2004), “Customer value, satisfaction, loyalty and switching costs: an illustration from a business-to-business service contextâ€, The Journal of Academy of Marketing Science, Volume 32, No., pp. 293-311. https://doi.org/10.1177/0092070304263330

Liu, Y., Cheng, P., & Ouyang, Z. (2021). How trust mediate the effects of perceived justice on loyalty: A stXy in the context of automotive recall in China. Journal of Retailing and Consumer Services, 58, 102322. https://doi.org/10.1016/j.jretconser.2020.102322

Parasuraman, A., Zeithaml. V.A., Berry, L.L. (1985) A Conceptual Model of Service Quality, and its Implications for Future Research. The journal of Marketing. Vol. 49, No. 4, pp. 41–50. https://doi.org/10.1177/002224298504900403

Parasuraman, A.; Zeithaml, V.A.; Berry, L.L. (1994). Reassessment of expectations as a comparison standard on measuring service quality: Implications for further research. J. Mark. 58, 111–124. https://doi.org/10.1177/002224299405800109

Prihatini, W., & Gumilang, D. A. (2021). The Effect of Price Perception, Brand Image and Personal Selling on the Repurchase Intention of Consumers B to B of Indonesian General Fishery Companies with Customer Satisfaction as Intervening Variables. European Journal of Business and Management Research, 6(2), 91-95. https://doi.org/10.24018/ejbmr.2021.6.2.756

Rauyruen, P., & Miller, K.E. (2007), “Relationship quality as a predictor of B2B customer loyaltyâ€, Journal of Business Research, Vol. 60 No. 1, pp. 21-31. https://doi.org/10.1016/j.jbusres.2005.11.006

Sancharan, R. (2011). Brand loyalty measurement made easy: a decision making framework. Journal of International Marketing, 22(2), 38-51.

Santoso, C. R., & Cahyadi, T. E. (2014). Analyzing the impact of brand equity towards purchase intention in automotive industry: a case study of ABC in Surabaya. iBuss Management, 2(2).

Suh, T., & Houston, M.B. (2010). “Distinguishing supplier reputation from trust in buyer supplier relationshipsâ€. Industrial Marketing Management, 39, pp. 744–751. https://doi.org/10.1016/j.indmarman.2010.02.013

Sumaedi, S., Bakti, I.G.M.Y. and Yarmen, M. (2012), “The empirical study of public transport passengers’ behavioral intentions: the roles of service quality, perceived sacrifice, perceived value, and satisfaction (Case Study: Paratransit passengers in Jakarta, Indonesia)â€, International Journal for Traffic and Transport Engineering, Vol. 2 No. 1, pp. 83-97.

Sweeney, J., & Soutar, C. (2001). Consumer perceived value: The development of a multiple item scale. Journal of Retailing, 77, 203-220. https://doi.org/10.1016/S0022-4359(01)00041-0

Tjiptono, F. 2000. Manajemen Jasa. Yogyakarta: Andi Offset.

Waluya, A. I., Iqbal, M. A., & Indradewa, R. (2019). How product quality, brand image, and customer satisfaction affect the purchase decisions of Indonesian automotive customers. International Journal of Services, Economics and Management, 10(2), 177-193. https://doi.org/10.1504/IJSEM.2019.100944

Wells, J.D., Valacich, J.S., & Hess, T.J. (2011). What signals are you sending? How website quality influences perceptions of product quality and purchase intentions. MIS Quarterly, 35(2), 373-396. https://doi.org/10.2307/23044048

Yarimoglu, E.K.(2014) A review on dimensions of service quality models. J. Mark. Manag. .2, 79–93.

Zeithaml, V.A., Berry, L.L., & Parasuraman, A. (1996). The behavioral consequences of service quality. Journal of Marketing, 60, 31 –46. https://doi.org/10.1177/002224299606000203

Downloads

Additional Files

Published

2023-12-19

How to Cite

Wirajaya, S., Sitorus, H. M., Wibisono, Y. Y., Kurniawan, D., & Nathania, L. (2023). THE EFFECT OF PRODUCT QUALITY, SERVICE QUALITY, CORPORATE IMAGE AND PERCEIVED VALUE ON CUSTOMER LOYALTY OF B2B TRUCK COMPANY WITH CUSTOMER SATISFACTION AS INTERVENING VARIABLES. International Journal of Economics, Business and Accounting Research (IJEBAR), 7(4). https://doi.org/10.29040/ijebar.v7i4.11569

Citation Check