Online Relationship Marketing and Customer Loyalty Based on Signalling Theory

Abstract

Objective – The purpose of this study was to determine the effect of Online Relationship Marketing on customer loyalty which was examined from the perspective of signalling theory in the banking sector. Methodology/Technique – Signalling theory is used to identify the tendency of companies to build relationships with consumers by sending signals to consumers through a variety internet tools and applications to communicate transparency, security, and privacy to influence consumer perceptions, behavior, and interests. Data was analyzed using quantitative methods with the SEM-PLS method involving 384 samples. Findings – The results of this study indicate that Online Relationship Marketing activities, such as engagement and interactivity, have a significant direct effect on customer loyalty and online trust. Novelty - Online trust in this study has a significant effect on customer loyalty and has a partial mediating role. Type of Paper: Empirical. JEL Classification: M31, M39. Keywords: Engagement; Interactivity; Online Trust; Customer Loyalty; Signalling Theory Reference to this paper should be made as follows: Pebrianti, W; Tanwira, W; Ahmadi. (2021). Online Relationship Marketing to Customer Loyalty Based on Signalling Theory, Journal of Management and Marketing Review, 6(1) 86 – 93. https://doi.org/10.35609/jmmr.2021.6.1(9)