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http://dx.doi.org/10.13106/jafeb.2021.vol8.no7.0255

The Effects of Customer Value and Customer Trust on Customer Retention: An Empirical Study in Indonesia  

DEWOBROTO, Wiji (Department of Business Administration, Faculty of Administrative Sciences, Brawijaya University)
NIMRAN, Umar (Department of Business Administration, Faculty of Administrative Sciences, Brawijaya University)
ARIFIN, Zainul (Department of Business Administration, Faculty of Administrative Sciences, Brawijaya University)
YULIANTO, Edy (Department of Business Administration, Faculty of Administrative Sciences, Brawijaya University)
Publication Information
The Journal of Asian Finance, Economics and Business / v.8, no.7, 2021 , pp. 255-264 More about this Journal
Abstract
The purpose of this study is to analyze the role of customer value and customer trust as a mediator of flexibility influence on customer retention. The study applies SEM tools with WarpPLS analysis and translates customer value and customer trust as mediation. This study was organized into three parts: exploratory research, descriptive research, and explanatory research. The quantitative approach in this study uses a survey method by taking samples from the population. This is a latent variable that is measured using a research instrument in the form of a questionnaire. The survey was conducted by distributing questionnaires to respondents. This research was conducted at PT. Nusa Prima Logistics Terminal Teluk Lamong by taking primary data, in the form of assessments or perceptions from respondents, so a survey was conducted by submitting a questionnaire directly to 194 respondents. Quantitative data analysis was performed using Structural Equation Modeling (SEM) to answer the research hypothesis. Flexibility is very influential in increasing customer retention so to develop customer retention, it is necessary to increase flexibility, customer value, and customer trust. The novelty in this research lies in identifying the role and position of customer value and customer trust as mediation that affect customer retention.
Keywords
Flexibility; Customer Value; Customer Trust; Customer Retention;
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