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.
Highlights
Customer satisfaction has important role for business sustainability, especially the retail business
The results of the study in showed that the customer loyalty programmes offered by Alfamart to consumers have an effect on customer satisfaction
The results of the first hypotheses evaluation proves that customer loyalty program through Member card program significantly affects customer satisfaction
Summary
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. 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 et al (2017)
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Research in Business and Social Science (2147- 4478)
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
