Increasing customers’ loyalty. The contribution of marketing strategy, service quality and customer satisfaction

Orfyanny Syahreffy Themba .,Herman Sjahruddin .,Nurlaely Razak, .

doi:10.14738/abr.12.6114

Abstract

There are several factors that can increase consumer loyalty. This research was carried out on all consumers of Wuling cars who make a purchased and cars services until October 2018 at the sales office of PT. SGMW Motor Indonesia in Makassar City (South Sulawesi). So that the number of samples obtained is 153 customers. The results of the analysis of the Structural Equation Model using the help of analysis of moment structures 22 provide evidence that several factors have been shown to increase customer loyalty (i.e. marketing strategy and customer satisfaction). Service quality is only able to improve customer satisfaction. The practical implications of this study provide increased customers knowledge and management of PT. SGMW Motor Indonesia in Makassar City in increasing customer loyalty. The limitations of this study on the sample size that only using Wuling customers and only carried out in Makassar City, thus limiting the ability to generalize the research findings. The originality of this study provides a basis for the configuration of modeling development by using structural equation modeling and conceptual models that prove the influence of marketing strategy, service quality on customer loyalty by including customer satisfaction which in the previous study was carried out separately. The role of mediating customer satisfaction is proven to be able to increase customer loyalty in a high direction.

Highlights

The automotive industry is one sector that plays an important role in supporting the smooth development, especially in supporting the smooth operation of business and community mobility in carrying out its activities
Based on the results of the focus group discussion, that some things that cause marketing strategy have a positive and significant effect on customer satisfaction and from the results of discussions conducted on one of Wuling's car showroom dealers, a positive and significant effect of marketing strategy on customer satisfaction are largely due because the company has quality facilities and infrastructure, that with these facilities and infrastructure customers can obtain information about products and purchasing systems so that it has an impact on the high interest or desire of customers to make product purchases and use company services
The causes of the positive and significant influence of marketing strategy on customer loyalty, based on the results of focus group discussions, are known to be positive causes and the significant influence of marketing strategy on customer loyalty, because customers believe that Wuling car products are quality cars, competitive prices, marketing communication through promotion is done well, dealer showrooms are accessible, employees who have concern for customers and the availability of adequate facilities and infrastructure are the triggers for the creation of high customer loyalty

Summary

Introduction

The automotive industry is one sector that plays an important role in supporting the smooth development, especially in supporting the smooth operation of business and community mobility in carrying out its activities. The car marketing system in Indonesia is carried out through its own dealers who determine the location and operational procedures of the company regulated by each licensee exclusive agent or ATPM, a national company designated by a brand manufacturing company to exclusively market, import, distribute and serve aftersales services in certain areas. The public interest in car vehicles is very high, that is what is considered as the market potential by the ATPM. Alternative choices for consumers in purchasing cars more and more can be seen in terms of brand, price and type. These conditions indicate the high competition in the world of the automotive industry. The rapid growth in domestic production capacity was underpinned both by the investments of foreign multinationals from the advanced multinational economies (AMNEs) as well as the creation of indigenous Chinese car producers

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