Abstract
The purpose of this study was to determine the effect of service quality, price suitability, company location, and customer satisfaction partially or jointly on customer loyalty in freight forwarders in Jabodetabek. The research method used in this research is descriptive and explanatory survey methods with a sample size of 270 respondents and the data analysis method used is SEM (Structural Equation Modeling) with a lisrel 8.80 data analysis tool. Based on the results of the study, the following findings were obtained: service quality, price suitability, and company location partially or jointly had a significant effect on customer satisfaction with a contribution of 62%. Partially the quality of service has the most dominant influence on customer satisfaction. Service quality, price suitability, company location, and customer satisfaction partially or jointly have a significant effect on customer loyalty with a contribution of 85%. Partially customer satisfaction is most dominant in influencing customer loyalty. The results also show that customer loyalty is a full mediating variable on the effect of service quality, price suitability, and company location on customer loyalty. The results of this study provide managerial implications for freight forwarders that to increase customer loyalty reflected in the dimensions of showing immunity to competitors is to increase customer satisfaction which is reflected by an increase in the dimension of price perception, where customer satisfaction will increase if freight forwarders are able to improve service quality, especially reflected in the assurance dimension, which is supported by increasing price conformity, especially reflected in increasing dimensions of product price conformity with the benefits obtained and supported also by increasing the ease of company location, especially as reflected in an increase in the visibility dimension.Keywords: Service Quality, Price Suitability, Company Location, Customer Satisfaction, Customer LoyaltyJEL Classifications: L8, M31, N75DOI: https://doi.org/10.32479/irmm.8736
Highlights
IntroductionIn the era of globalization economic and trade liberalization as the dependence of the state on the activity of international trade and the movement of goods exports and imports will be higher, in which countries and developing countries would need each other, both as a market to their products as well as producers of their industrial raw materials
Various changes in the strategic environment at the national, regional and global levels which are marked by the increasing volume and intensity of international trade activities, as well as the occurrence of very rapid developments in the field of information and communication technology, affect the increasing demands of society, especially the business community, trade and industry to the smoothness and speed of the flow of exported and imported goods (Broda and Weinstein, 2006)
The results of testing the validity of the question items on the questionnaire for each variable with r > 0.3 (Sugiono, 2014), show that all items have a greater correlation value. This means that all question items are valid
Summary
In the era of globalization economic and trade liberalization as the dependence of the state on the activity of international trade and the movement of goods exports and imports will be higher, in which countries and developing countries would need each other, both as a market to their products as well as producers of their industrial raw materials. This will cause increasingly fierce levels of global competition, so that each country individually or together in a regional community needs to take serious steps to deal with the smooth flow of export-import goods traffic (Amiti and Khandelwal, 2013).
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