Abstract
To solve these problems, this research aims to analyse the relationship between satisfaction , customer attitude loyalty and customer behaviour loyalty and the influence of different retail formats. The variables used in these research are Satisfaction (S), Trust (T), Attitudinal Loyalty (AL), and Behavioural Loyalty (BL). This research was conducted using a quantitative approach and the data used in this study were obtained from questionnaires to 211 respondents by distributing questionnaires directly (direct survey) to Make Over shops in Surabaya shopping centres. Hypotheses testing in this study use Structural Equation Modelling (SEM). The results of this study indicated that the Satisfaction variable has a positive and significant relationship to the Attitude Loyalty variable and has an influence on Behavioural loyalty through Attitude Loyalty. In addition, the SEM analysis results have a new finding that the Trust variable which is a mediation variable in this study does not have a significant effect on loyalty. From the results of hypothesis testing, this study also formulated managerial implications that can be applied by Make Over as an additional reference to improve service quality in retail stores such as bundling strategies and giving free gifts, implementing referral marketing strategies and focusing on increasing satisfaction
Highlights
The development and changes in lifestyle make the growth of cosmetics industry in Indonesia continue to increase from year to year
The ease of access to information results in higher levels of intelligence and knowledge of customers about a product so that their level of awareness of the price and quality of the products offered will increase. This condition can indirectly make it difficult for consumers to be loyal to only one cosmetic brand
Customer satisfaction is the result of subjective evaluations where alternative retail stores are chosen according to or exceeding customer expectations [9]
Summary
The development and changes in lifestyle make the growth of cosmetics industry in Indonesia continue to increase from year to year. The ease of access to information results in higher levels of intelligence and knowledge of customers about a product so that their level of awareness of the price and quality of the products offered will increase. This condition can indirectly make it difficult for consumers to be loyal to only one cosmetic brand. The level of difficulty in satisfying customers is increasing due to the emergence of various kinds of channels (channels) for companies to market their products both online and offline sales or commonly referred to as retail sales.
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