The Role of Customer Value on Loyalty (Study on Retail’s Customers)

 By

Tinik Sugiati

(Management Department., Faculty of Economics, Lambung Mangkurat University,

Banjarmasin,South Kalimantan, Indonesia)

ABSTRACT

Since two decades ago research on value had been developed and is still ongoing until recent time. This research is aimed to examine and explain the relationship among customer value, loyalty program, customer satisfaction, and customer loyalty. This study was conducted at Hypermart in South Kalimantan which took 150 respondents from the Hypermart’s customers. The respondent was selected by using accidental sampling. The data analysis utilized Partial Least Square (PLS). The result demonstrates that there is positive and significant role of customer value on customer satisfaction. The remarkable finding of this research is that the role of customer value on customer loyalty is not significant. It means that customer value cannot directly make customers do beneficial activities for Hypermart: having high commitment, repurchase, cross-buying (increase the amount of purchase), and informing positive things to others. Moreover, customers will make better beneficial things for Hypermart when they are satisfied with product completeness, customer service, trading format  and costumer communication, as well as membership card benefit.

ABSTRACT

Since two decades ago research on value had been developed and is still ongoing until recent time. This research is aimed to examine and explain the relationship among customer value, loyalty program, customer satisfaction, and customer loyalty. This study was conducted at Hypermart in South Kalimantan which took 150 respondents from the Hypermart’s customers. The respondent was selected by using accidental sampling. The data analysis utilized Partial Least Square (PLS). The result demonstrates that there is positive and significant role of customer value on customer satisfaction. The remarkable finding of this research is that the role of customer value on customer loyalty is not significant. It means that customer value cannot directly make customers do beneficial activities for Hypermart: having high commitment, repurchase, cross-buying (increase the amount of purchase), and informing positive things to others. Moreover, customers will make better beneficial things for Hypermart when they are satisfied with product completeness, customer service, trading format  and costumer communication, as well as membership card benefit.

KEYWORDS:  value, satisfaction, loyalty