Abstract
This journal examines the relationship between perception of product quality, perception of service quality, perception of Customer Loyalty Program on retail customer behavior, and sales volumes of cement products. This study examines three different cement brands, namely cement XYZ with the largest market share, cement PQR which is the main competitor, as well as cement ABC, a newcomer cement brand which is strong enough to enter the Indonesian cement market. The research is focused on the building material retailers with 100 respondents. The data collection will be done by survey through direct interview by using questionnaires. The analysis of this research uses descriptive analysis, analysis by ANOVA and also inferential analysis by using Structural Equation Model (SEM). The results of this study indicate that from the factors that influence the attitudes of retail customers of the three variables tested, only one dominant factor which influences the attitude of retail customers, which is the perception of the product quality. The results of this research also show that the perception of product quality also affects sale volume significantly, the greater the perception of the quality of cement products, the greater the volume of sales generated by the retail customer.
Highlights
In 2012-2013, there was an explosion of cement demand which was characterized by property business which was very dominating during those years
This study examines the impact of the perception of the product quality, the perception of service quality, and the perception of Customer Loyalty Program toward the customer attitude, and reviews the effect of customer attitudes on the sale of cement products
Consistency in terms of the quality of cement is appropriate with indonesia national standards as well as the superiority compared with other cement brands
Summary
In 2012-2013, there was an explosion of cement demand which was characterized by property business which was very dominating during those years. At the beginning of 2013, the ratio between cement demand and installed capacity of cement producers in Indonesia reached 95 percent, meaning that almost all of the cement produced and sold in Indonesia could be absorbed by the market. Research of DBS Bank (2015) states that the installed capacity of cement by the cement plant spread in some areas of Indonesia will generate a significant difference for the level of utility comparison between demand and installed capacity of cement, which reached 74 percent. 2016 will be the new battleground for sixteen companies to compete in the cement market in Indonesia. XYZ, which is the market leader for cement company in Indonesia, experienced a decline in sales and lower the market share in Indonesia, from 2012 which reached 32 percent of market share, up to 2014 which declined to 30 percent and is projected to continue to decline if there is no strategy in facing the future condition. The change of market share is the characteristic of customers who change their selection from one product to another
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