Customer Loyalty on Halal Meat Product: A Case Study of Indonesian Logistics Performance Perspective

Abstract

The purpose of this article is to determine the influence of halal supplier’s service quality, halal logistic performance, perceived service value and customer satisfaction to customer’s loyalty on halal meat products at non-moslem areas. This paper uses quantitative method that is done by collecting data from 90 respondents and analyzed using structural equation modeling (SEM) to determine the correlation between variables. The study found a significant influence occurs on the relationship halal supplier’s service quality to halal logistic performance, halal supplier’s service quality to perceived service value, halal logistic performance to customer satisfaction, perceived service value to customer satisfaction, and customer satisfaction to customer loyalty. The insignificant influence happened at halal supplier’s service quality to customer satisfaction relation. This study contributes to the halal logistic topics that are still rarely studied, especially by taking the place of research in Indonesia which is a majority area of Muslims and also has some non-Muslim majority areas. The study focused on the comparative influence of halal logistics performance on consumer loyalty of raw and processed meat products for Muslims in Indonesian non-muslim majority area.The results of this study indicate that there is a significant relationship between the quality of halal supplier services and halal logistics performance, the quality of halal supplier services with perceived service value. In addition,it also found the effect of halal logistics performance on customer satisfaction, perceived value of service to customer satisfaction, and customer satisfaction with customer loyalty. Furthermore, there is a significant effect on the quality of halal supplier services on customer satisfaction relationships.