THE INFLUENCE OF COMPANY REPUTATION AND SERVICE QUALITY ON PURCHASE INTENTION THROUGH CUSTOMER TRUST AS A MEDIATING VARIABLE IN SCRAP METAL TRADING COMPANY AT CV TIMUR LOGAM

Abstract

This study aims to examine the effect of company reputation and service quality on purchase intention through customer trust as a mediating variable at CV Timur Logam. This research employed a quantitative approach using a survey method involving 167 customers of CV Timur Logam who had completed at least one transaction during the 2020–2024 period. The majority of respondents were 36–45 years old and worked as entrepreneurs. The study applied total sampling, while the data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS). The descriptive analysis indicated that respondents' perceptions of company reputation, service quality, customer trust, and purchase intention were all categorized as good enough. The hypothesis testing results revealed that company reputation and service quality had positive and significant effects on both customer trust and purchase intention. Furthermore, customer trust had a positive and significant effect on purchase intention and was found to partially mediate the relationships between company reputation, service quality, and purchase intention. This study concludes that strengthening a company's reputation and improving service quality can enhance customer trust, which in turn increases customers' purchase intention toward CV Timur Logam. These findings highlight the important role of customer trust as the underlying mechanism linking company reputation and service quality to purchase intention.

Keywords: reputation, services, trust, intention, customers.