Analysing the Effect of Product Quality, Service Quality, Customer Relationship Management, and Price on Customer Loyalty through Customer Satisfaction as an Intervening Variable Case Study: PT Mitsubishi Power Indonesia


Authors : Yoppy Setyo Duto; Evi Yulianti

Volume/Issue : Volume 8 - 2023, Issue 7 - July

Google Scholar : https://bit.ly/3TmGbDi

Scribd : https://tinyurl.com/3bmf2mc2

DOI : https://doi.org/10.5281/zenodo.8181291

Abstract : In the current era of globalization, business competition in every field of industries tends to be tighter. Therefore, it is important to maintain customer loyalty so that customers will not shift to the competitors. This case also applies for Mitsubishi Power Indonesia (MPI), as one of the biggest manufacturing companies that engaged in the power generation sector in Indonesia. In this study, we analyse the effect of four variables, i.e., product quality, service quality, customer relationship management (CRM), and price, on customer loyalty of MPI with and without using customer satisfaction as an intervening variable. This analysis was performed to have better understanding on the customers of MPI in terms of the factors that are important to maintain their loyalty. The results show that there is no significant effect of product quality, service quality, CRM, and price on customer loyalty with and without using customer satisfaction as an intervening variable. The significance is only found for the effect of customer satisfaction on customer loyalty. Here, customer satisfaction is shown to directly influence customer loyalty positively.

Keywords : Product Quality; Service Quality; CRM; Customer Relationship Management; Price; Customer Satisfaction; Customer Loyalty; Mitsubishi Power Indonesia

In the current era of globalization, business competition in every field of industries tends to be tighter. Therefore, it is important to maintain customer loyalty so that customers will not shift to the competitors. This case also applies for Mitsubishi Power Indonesia (MPI), as one of the biggest manufacturing companies that engaged in the power generation sector in Indonesia. In this study, we analyse the effect of four variables, i.e., product quality, service quality, customer relationship management (CRM), and price, on customer loyalty of MPI with and without using customer satisfaction as an intervening variable. This analysis was performed to have better understanding on the customers of MPI in terms of the factors that are important to maintain their loyalty. The results show that there is no significant effect of product quality, service quality, CRM, and price on customer loyalty with and without using customer satisfaction as an intervening variable. The significance is only found for the effect of customer satisfaction on customer loyalty. Here, customer satisfaction is shown to directly influence customer loyalty positively.

Keywords : Product Quality; Service Quality; CRM; Customer Relationship Management; Price; Customer Satisfaction; Customer Loyalty; Mitsubishi Power Indonesia

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