Abstract

The purpose of this research is to find the influence of the customer loyalty program and service recovery on customer satisfaction and customer retention. The sampling method collection used in this research is nonprobability sampling, with collection technique is purposive sampling. Total sample of this research are 100 respondents. The research data collection use the questionnaire. Analysis of the data used are the instrument validity and reliability, the classic assumption test, hypothesis testing and path analysis using the SPSS 22 for windows program. The results of this research show that all items are valid and reliable. Both structural models qualified the classic assumption test criteria with no multicollinearity, heterokedasticity, and normality assumptions. Based on the results of the t test show that the variable customer loyalty program and service recovery significantly influence customer satisfaction, customer loyalty program and service recovery significantly influence customer retention, customer satisfaction has a significant effect on customer retention.

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