Effect of Customer Satisfaction on Customer Loyalty and Marketing Organization Performance in B2B Market Over Heavy Equipment Company

Yora Harzaviona, Tantri Yanuar Rahmat Syah

Abstract


In Indonesia's heavy equipment industry, there are still many sales and rental companies that still do not realize the importance of customer satisfaction to increase the retention and progress of their companies. This study aims to analyze the effect of customer satisfaction on customer loyalty and the performance of marketing organizations in the B2B market in Indonesia's heavy equipment industry. The goal is that massive equipment sellers and rentals know that increasing customer satisfaction can increase the long-term security of the company's future earnings. This quantitative research was conducted by distributing questionnaires to 38 massive equipment companies in Jakarta and Banten from February to April 2020. They are then testing the results using the SmartPLS 3.0 application. The results showed that the customer satisfaction variable has a positive effect on customer loyalty and negative on the marketing organization's performance. Meanwhile, customer loyalty has a positive and significant effect on the performance of the marketing organization.

Keywords


Customer Satisfaction, Customer Loyalty, Marketing Organization Performance, Heavy Equipment, SmartPLS.

Full Text:

PDF

References


] Adikaram, C., Khatibi, A., & Yajid, M. (2016). The Relationship between Customer Relationship Management and Customer Satisfaction: A Study on Private Higher Education Institutions in Sri Lanka. International Journal of Arts and Commerce International, 5(2), 69–95. www.ijac.org.uk

] Ali, N., Habidin, N. F., Jamaludin, N. H., Khaidir, N. A., & Shazali, N. A. (2013). Customer Relationship Management and Organizational Performance in Malaysian Healthcare Industry. International Journal of Advancements in Research & Technology, 2(1), 1–5. http://www.ijoart.org/docs/customer-relationship-management-and-organizational-performance-in-malaysian-healthcare-industry.pdf

] Ambler, T. (2008). Marketing and The Bottom Line: Assessing Marketing Performance. Performance Management, 137–148.

] Bennett, R., & Thiele, S. (2002). A Comparison of Attitudinal Loyalty Measurement Approaches. Journal of Brand Management, 9(3), 193–209. https://doi.org/10.1057/palgrave.bm.2540069

] Black, J. A., & Boal, K. (1994). Strategic Resources: Traits, Configurations and Paths to Sustainable Competitive Advantage. Strategic Management Journal, 15, 131–148.

] Bodet, G., & Assollant, I. (2011). Consumer Loyalty in Sport Spectatorship Services : The Relationships with Consumer Satisfaction and. Psychology & Marketing, 28(8), 781–802. https://doi.org/10.1002/mar

] Bolton, R. N., Lemon, K. N., & Verhoef, P. C. (2004). The Theoretical Underpinnings of Customer Asset Management : A Framework and Propositions for Future Research. JOURNAL OF THE ACADEMY OF MARKETING SCIENCE.

] Boulding, W., Staelin, R., Ehret, M., Johnston, W. J., Berry, L., Deighton, J., Grönroos, C., Gupta, S., Kamakura, W., Johnston, W., Lehmann, D. R., Mason, C., Mela, C., Neslin, S., & Bolton, R. N. (2005). A Customer Relationship Management Roadmap : What Is Known , Potential Pitfalls, and Where To Go. Journal of Marketing, 69(0), 155–166. https://doi.org/10.1509/jmkg.2005.69.4.

] Chen, I. J., & Popovich, K. (2003). Understanding Customer Relationship Management (CRM): People, process and technology. Business Process Management Journal, 9(5), 672–688. https://doi.org/10.1108/

] Chi, C. G., & Gursoy, D. (2009). Employee Satisfaction, Customer Satisfaction, and Financial Performance: An Empirical Examination. International Journal of Hospitality Management, 28(0), 245–253. https://doi.org/

1016/j.ijhm.2008.08.003

] Clarke, K. (2001). What Price on Loyalty When a Brand Switch is Just a Click Away? Qualitative Market Research: An International Journal, 4(3), 160–168. https://doi.org/10.1108/13522750110393062

] Coltman, T., Devinney, T. M., & Midgley, D. F. (2009). Customer Relationship Management and Firm Performance. Journal of Information Technology, 26(3), 205–219. https://doi.org/10.1057/jit.2010.39

] Daniel, C. O. (2018). Effects of Marketing Strategies on Organizational Performance. International Journal of Business Marketing and Management, 3(9), 1–9.

] F. Hair Jr., J., C. Black, W., J. Babin, B., & E. Anderson, R. (2014). Multivariate Data analysis. In Pearson Education Limited (seventh ed, Vol. 7). https://doi.org/10.1111/j.1467-9574.1962.tb01184.x

] Fornell, C. (2016). Satisfaction Barometer: The Swedish Experience. Journal of Marketing, 56(1), 6–21. http://www.jstor.org/stable/1252129

] Gefen, D., Straub, W. D., & Boudreau, M.-C. (2000). Structural Equation Modeling And Regression. Guidelines For Research Practice. Communication of the Association for Information Systems, 4(7), 2–77.

] Hair, J. F., Sarstedt, M., Ringle, C. M., & Mena, J. A. (2012). An Assessment Of The Use Of Partial Least Squares Structural Equation Modeling In Marketing Research. Academy of Marketing Science, 40, 414–433. https://doi.org/10.1007/s11747-011-0261-6

] Hallowell, R. (1996). The Relationships of Customer Satisfaction, Customer Loyalty, and Profitability: An Empirical Study. International Journal of Service Industry Management, 7(4), 27–42. https://doi.org/10.1108/

] Homburg, C., & Giering, A. (2001). Personal Characteristics as Moderators of the Relationship Between Customer Satisfaction and Loyalty — An Empirical Analysis. Psychology & Marketing, 18(1), 43–66.

] Ishak, K. A. (2016). The Impacts Of Relational Norms and Relationship Quality In To Franchisee’s Loyalty. International Review of Management and Marketing, 6(4), 6–11.

] Jayachandran, S., Sharma, S., Kaufman, P., & Raman, P. (2005). The Role of Relationship Information Processes and Technology Use In Customer Relationship Management. Journal of Marketing, 69(0), 177–192.

] Keisidou, E., Sarigiannidis, L., Maditinos, D. I., & Thalassinos, E. I. (2013). Customer Satisfaction, Loyalty and Financial Performance: A Holistic Approach of the Greek Banking Sector. International Journal of Bank Marketing, 31(4), 259–288. https://doi.org/10.1108/IJBM-11-2012-0114

] Keramati, A., Mehrabi, H., & Mojir, N. (2010). A Process-Oriented Perspective On Customer Relationship Management and Organizational Performance: An Empirical Investigation. Industrial Marketing Management, 39(7), 1170–1185. https://doi.org/10.1016/

j.indmarman.2010.02.001

] Khadka, K., & Maharjan, S. (2017). Customer Satisfaction and Customer Loyalty [Centria University of Applied Sciences]. In Marketing for Entrepreneurs and SMEs. https://doi.org/10.4337/9781781955970.00008

] Kim, J., Suh, E., & Hwang, H. (2003). A Model for Evaluating the Effectiveness of CRM Using The Balanced Scorecard. Journal of Interactive Marketing, 17(2), 5–19. https://doi.org/10.1002/dir.10051

] Li, S., Ragu-Nathan, B., Ragu-Nathan, T. S., & Subba Rao, S. (2006). The Impact Of Supply Chain Management Practices On Competitive Advantage and Organizational Performance. Omega The International Journal of Management Science, 34(2), 107–124. https://doi.org/

1016/j.omega.2004.08.002

] Long, C. S., Khalafinezhad, R., Ismail, W. K. W., & Rasid, S. Z. A. (2013). Impact of CRM Factors on Customer Satisfaction and Loyalty. Asian Social Science, 9(10), 247–253. https://doi.org/10.5539/ass.v9n10p247

] Martin, S. S., & Camarero, C. (2005). Consumer Reactions to Firm Signals in Asymmetric Relationships. Journal of Service Research, 8(1), 79–97. https://doi.org/10.1177/1094670504273967

] Mkawuganga, E. (2018). Customer Relationship Management (CRM),Customer Satisfaction, Loyalty and Port Performance: A Case Study of Kenya Ports Authority (KPA) [The World Maritime University]. https://commons.wmu.se/all_dissertations/644

] Mohsan, F., Nawaz, M. M., Khan, M. S., Shaukat, Z., & Aslam, N. (2011). Impact of Customer Satisfaction on Customer Loyalty and Intentions to Switch : Evidence from Banking Sector of Pakistan. International Journal of Business and Social Science, 2(16), 263–270.

] Morgan, N. A. (2012). Marketing and Business Performance. Academy of Marketing Science, 40, 102–119. https://doi.org/10.1007/s11747-011-0279-9

] Namjoyan, M., Esfahani, D. A. N., & Haery, D. F. A. (2013). Studying the Effects of Customer Relationship Management on the Marketing Performance (Isfahan Saderat Bank as a case Study). International Journal of Academic Research in Business and Social Sciences, 3(9), 302–314. https://doi.org/10.6007/ijarbss/v3-i9/211

] Oliver, R. L. (1999). Whence Consumer Loyalty? Journal of Marketing, 63(special issue), 33–44.

] Peppard, J. (2000). Customer Relationship Management (CRM) in Financial Services. European Management Journal, 18(3), 312–327. https://doi.org/10.1016/S0263-2373(00)00013-X

] Ringle, C. M., Henseler, J., & Sinkovics, R. R. (2004). The Use Of Partial Least Squares Path Modeling In Internasional Marketing. New Challenges to International Marketing, 20(2009), 277–319. https://doi.org/10.1108/S1474-7979(2009)0000020014

] Rossomme, J. (2003). Customer Satisfaction Measurement In A Business-To-Business Context: A Conceptual Framework. Journal of Business and Industrial Marketing, 18(2), 179–195. https://doi.org/10.1108/08858620310463097

] Rowley, J., & Dawes, J. (2000). Disloyalty : A Closer Look at Non-Loyals. JOURNAL OF CONSUMER MARKETING, 17(6), 538–547.

] Rungtusanatham, M., Salvador, F., Forza, C., & Choi, T. Y. (2003). Supply-Chain Linkages and Operational Performance: A Resource-Based-View Perspective. International Journal of Operations and Production Management, 23(9), 1084–1099. https://doi.org/

1108/01443570310491783

] Saunders, M., Lewis, P., & Thornhill, A. (2009). Research Methods for Business Students. In International Journal of the History of Sport (5th ed., Vol. 30, Issue 1). Prentice Hall. https://doi.org/10.1080/09523367.2012.743996

] Skačkauskienė, I., Vilkaitė-Vaitonė, N., & Vojtovic, S. (2015). Model for Measuring Customer Loyalty Towards A Service Provider. Journal of Business Economics and Management, 16(6), 1185–1200. https://doi.org/10.3846/

2015.1112829

] Stank, T. P., Goldsby, T. J., & Vickery, S. K. (1999). Effect of service supplier performance on satisfaction and loyalty of store managers in the fast food industry. Journal of Operations Management, 17(0), 429–447.

] Sullivan, D. O., & Abela, A. V. (2007). Marketing Performance Measurement Ability and Firm Performance. Journal of Marketing, 71(0), 79–93.

] Sundaram, V., Ramkumar, D., & Shankar, P. (2017). Impact of E-Service Quality on Customer Satisfaction and Loyalty Empirical Study in India Online Business. Kinerja, 21(1), 48–69. https://doi.org/10.24002/

kinerja.v21i1.1034

] Tuzunkan, D. (2018). Customer Relationship Management In Business-To-Business marketing: Example of Tourism Sector. GeoJournal of Tourism and Geosites, 22(2), 329–338. https://doi.org/10.30892/gtg

.22204-291

] Wan, H. S., Mamun, A. Al, Permarupan, P. Y., & Zainol, N. R. B. (2013). Loyalty in Business to Business Context: A Study in Puchong, Malaysia. International Journal of Business and Management, 8(22), 98–106. https://doi.org/10.5539/ijbm.v8n22p98

] Woodruff, R. B. (2000). Customer Value : The Next Source for Competitive Advantage. Academy of Marketing Science, 25(2), 139–153.

] Yamin, S., Gunasekaran, A., & Mavondo, F. T. (1999). Relationship Between Generic Strategies, Competitive Advantage and Organizational Performance: An Empirical Analysis. Technovation, 19(0), 507–518. https://doi.org/10.1016/S0166-4972(99)00024-3

] Yi, Y. (1998). A Critical Review of Consumer Satisfaction. University of Michigan.

] Zeynep Ata, U., & Toker, A. (2012). The Effect of Customer Relationship Management Adoption In Business-To-Business Markets. Journal of Business and Industrial Marketing, 27(6), 497–507. https://doi.org/10.1108/08858621211251497


Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.


Supported by :







Indexed by :