Content area
Full Text
Keywords:
Loyalty program
Customer satisfaction
Customer loyalty
Jel Classification
M30,M20
ABSTRACT
The aim of this research is to examine the effect of the customer loyalty program on customer satisfaction and its impact on customer loyalty. This program is developed by the company in order to increase customer satisfaction. Optimal customer satisfaction will be able to create customer loyalty. For a company, customer loyalty will guarantee the company's income to be constantly optimal. The research is conducted using the survey method involving 110 customers and 100 feasible data used. The sampling technique used is judgment sampling and data collected through the questionnaire. It uses SEM in examining hypotheses assisted by software AMOS version 20.0. Member card significantly affects customer satisfaction, while discount promo has no significant effect on customer satisfaction and it also doesn't affect customer loyalty. Member cards and discount promo have a direct effect on customer loyalty. In general, it can be understood that the customer loyalty program applied by Alfamart either member card or discount promo affects customer satisfaction and has an impact on customer loyalty. This research gives input to retail business managers in managing customer satisfaction through the proper development of customer loyalty programs.
Introduction
Customer satisfaction has important role for business sustainability, especially the retail business. Customer satisfaction is able to support the customers to have positive impression on the product and service offered by a business organization. Positive attitude has important role in rebuying the product or service in the future (Dizfani, Mantralla, Yuzta and Ruiz, 2017). The satisfied customers will be formed to rebuy in the same shop despite the interesting offer from other shops. In general, a positive relationship between the customer satisfaction and the customer loyalty possibly becomes the main factor or the moderation. In some previous marketing study, it is confirmed that the customer satisfaction on their needs is one antecedent of loyalty either on the brand or the shop Dizfani etai (2017).
Customer satisfaction is determined by the development of product and quality conducted by the company, also the service and improvement in order to meet the customer expectation. The customer satisfaction can be measured through various methods. One of them is by measuring the customer expectation compared with the benefit and cost...