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The Role of Trust and Word of Mouth as Mediating Variables in Building Customer Loyalty
Abstract
This study aimed to examine the impact of customer relationship marketing on trust, word of mouth, and customer loyalty. It also sought to analyze the role of customer trust and word of mouth in mediating the influence of customer relationship marketing on customer loyalty at the Kenangan Coffee Shop in Malang City. The sample consisted of 140 customers of the Kenangan Coffee Shop in Malang City. Stratified random sampling was used to identify respondents. Structural Equation Modeling (SEM) was used to analyze data. The research results show that customer relationship marketing that focused on developing a service culture built customer trust at Kenangan Coffee Shop in Malang City. High levels of trust has the increases customer loyalty. By convincing others to choose a Kenangan Coffee Shop, word of mouth can also increase customer loyalty. Thus, this research further develops studies on customer loyalty, customer relationship marketing, and word of mouth. Keywords: customer relationship, trust, word of mouth, customer loyalty
... Another strong positive relationship was observed between marketing creativity and loyalty, which was β = 0.274, t = 3.245, p = 0.001. This confirms the idea that creative marketing strategies influence not only satisfaction but also contribute to customer loyalty on a basic level [35]- [37]. The ability of creative marketing to connect emotionally with customers and create a sense of brand community can significantly contribute to increased loyalty [36], [37]. ...
... This confirms the idea that creative marketing strategies influence not only satisfaction but also contribute to customer loyalty on a basic level [35]- [37]. The ability of creative marketing to connect emotionally with customers and create a sense of brand community can significantly contribute to increased loyalty [36], [37]. ...
This study examines the relationship between marketing creativity, product quality, customer satisfaction, and loyalty in coffee micro, small, and medium enterprises (MSMEs) in Banyuwangi. Using a quantitative approach with 145 samples and data analysis through Structural Equation Modeling (SEM) and Partial Least Squares (PLS), the study investigates how marketing creativity and product quality influence customer satisfaction and loyalty. The results show that both marketing creativity and product quality significantly affect customer satisfaction, with product quality having a stronger impact on customer loyalty. The findings highlight the critical role of creative marketing strategies and high-quality products in fostering customer loyalty and satisfaction, suggesting that coffee MSMEs in Banyuwangi should prioritize these factors to sustain competitive advantage.
Penelitian ini bertujuan untuk menguji pengaruh citra perusahaan dan relationship marketing terhadap kepercayaan dan loyalitas pelanggan pada business to business (B2B). Metode analisis data yang digunakan adalah structural equation modeling-partial least squares (SEM-PLS). Jumlah responden adalah 100 perusahaan. Teknik pengambilan sampel dalam penelitian ini dengan metode convinience sampling dimana pelanggan PT. Dian Cipta Perkasa adalah subjek dalam penelitian ini. Hasil penelitian menemukan bahwa citra perusahaan berpengaruh positif dan signifikan terhadap kepercayaan pelanggan, relationship marketing berpengaruh positif dan signifikan terhadap kepercayaan pelanggan, citra perusahaan tidak berpengaruh positif dan signifikan terhadap loyalitas pelanggan, relationship marketing berpengaruh positif dan signifikan terhadap loyalitas pelanggan dan kepercayaan berpengaruh positif dan signifikan terhadap loyalitas pelanggan. Secara umum ditemukan relationship marketing masih menjadi variabel yang paling menentukan dalam mendapatkan loyalitas pelanggan.
The purpose of this study was to determined the effect of relationship marketing, costumer value, and trust on the customer's loyalty at PT.Jiwasraya Insurance branch of Malang. This study used multiple linear regression analysis and tested on 100 Respodents that have been determined by used purposive sampling technique as a method, and used questionnaires for data collection.The result of this study were concluded that variables such as:1) Relationship marketing significally influenced the customer's loyalty of PT Jiwasraya Insurance branch of Malang. 2) Customer value significally influenced the customer's loyalty of PT Jiwasraya Insurance branch of Malang. 3) Trust was significally influenced the customer's loyalty of PT Jiwasraya Insurance branch of malang.
A cross-sectional and quantitative study design, with the aim of explaining the relationship between relationship marketing and customer loyalty, and the mediating role of word of mouth in this relationship was undertaken. A sample of 384 was determined from a population of the mobile telecommunication users based on Krejcie & Morgan sampling framework. The study utilized 384 questionnaires. The authors conducted confirmatory factor, correlation, regression, mediation and SEM for analysis, interpretation and results.
While trust, relationship satisfaction and reciprocity components of relationship marketing have been found to be significant predictors of customer loyalty in other studies, our study findings reveal contrasting results. This is a unique finding in our study. However, in line with earlier studies, our findings indicate a positive significant relationship between relationship marketing components of communication, commitment and customer loyalty. The study also finds a significant positive relationship between the relationship marketing components of communication and commitment and word of mouth and a significant positive relationship between word of mouth and customer loyalty. Telecommunication companies should pay attention to relationship encounters that build commitment, should develop targeted communication channels which build positive word of mouth communication. This will ultimately create loyal customers for mobile telecommunication companies.
This research is intended to test the effect of relationship marketing upon customer satisfaction and customer loyalty of the Bank Raykat Indonesia in Southeast Sulawesi. This research applies the explanatory type, namely a research conducted by giving an explanation on the symptoms produced by object of research.The samples of this research involve 200 saving deposits customer of Bank Rakyat Indonesia distributed based on purposive allocation of each Bank Rakyat Indonesia in Southeast Sulawesi. Then, they are analyzed by using SEM (structural equation modeling) by applying the program AMOS (analysis of moment structure) 4.01.The result of this research indicate that the relationship marketing have the positive and significant effect to the customer satisfaction and customer loyalty with the path coefficient each 0.556 and 0.501. And than, customer satisfaction have the positive and significant effect to the customer loyalty with the path coefficient 0.479. Beside that, the relationship marketing have the indirect effect to the customer loyalty, mediated customer satisfaction with the path coefficient 0.266.
The main objective of this research is to examine the impact of perceived electronic word of mouth (eWOM) on purchase intention; by taking the corporate image as mediating variable. This research adopted the customers' views; secondary schools students who are familiar and have an active account on one or more of these social networking sites (Facebook, Twitter, Youtube, and Instagram). The conceptual framework of this study was tested using data gathered from the questionnaires directed to a total sample of 1000 students located in Amman. The statistical results of the multiple regression test indicated that eWOM quality, eWOM credibility, and eWOM quantity respectively; are significantly and positively impact purchase intention. In terms of the mediating role of corporate image the results indicated that corporate image mediate the relationship between the independent and dependent variables. Accordingly, Research conclusion, recommendations and future research are also discussed.
To contend the traditional transaction marketing, which focuses on the completion of the transaction and the pursuit of maximizing profits for each transaction, the relationship marketing in the banking sector, on the other hand, offers the establishment of strong relationships and stable partnerships between the bank and its customer in order to maximize the pursuit of the interests of all aspects of the relationship. This paper examined the nature of linkages between relationship marketing and customer loyalty by using customer satisfaction and customer trust as the intervening variables. It investigated the customer perception on customer satisfaction's characteristics and confidence in exchange partner's reliability and integrity as the mediating factors to build their trust on the banking services. The researchers employed 150 respondents of private banking as the sample. This paper used Structural Equation Modeling (SEM) to analysis the relationship. The results revealed that the relationship marketing tactics affected customer loyalty significantly through customer trust and customer satisfaction. It explicitly demonstrates that the banks have undertaken an organization-wide strategy to manage and nurture their interaction with clients and sales prospects as the base for their customer loyalty.
Loyalty has, over the past decade, become a crucial construct in marketing, and particularly in the burgeoning field of customer relationship management. This paper shows that customer loyalty can be explained to a substantial degree by customer satisfaction, trust, and communication, and shows the direct and indirect effects among those constructs and other constructs in an extension of the European Customer Satisfaction Index (ECSI) model. Both ECSI model and the extended model are estimated with data from a survey carried out among customers of the banking sector. Within the limitations of the study, the theoretical and managerial implications of these findings are discussed.
This study proposes an integrated framework explaining loyalty responses in high-involvement, high-service luxury product
markets. The model is rooted in the traditional (attribute satisfaction)-(overall satisfaction)-(loyalty) chain but explicitly
incorporates facility versus interactive service quality, trust, specific asset investment (SAI), and product-market expertise.
The authors focus on disentangling the direct versus indirect effects of model constructs on attitudinal versus behavioral
loyalty responses. The results support the traditional chain but also show loyalty can be increased by building a trustworthy
image and creating exchange-specific assets. The authors found that overall satisfaction is the precursor both to loyalty
and to building SAI. Finally, consumers have different costs in reducing adverse selection problems with information, and
thus the negative effect of product-market expertise on behavioral loyalty needs to be controlled if the direct versus indirect
effects of model constructs on loyalty are to be disentangled.
This article investigates how image, perceived service quality and satisfaction determine loyalty in a retail bank setting at the global construct level, as well as the level of construct dimensions. At the global level the results of a large-scale empirical study reveal that image is indirectly related to bank loyalty via perceived quality. In turn, service quality is both directly and indirectly related to bank loyalty via satisfaction. The latter has a direct effect on bank loyalty. At the level of the dimensions underlying aforementioned constructs, it becomes clear that reliability (a quality dimension) and position in the market (an image dimension) are relatively important drivers of retail bank loyalty.
While the importance of customer loyalty has been recognized in the marketing literature for at least three decades, the conceptualization and empirical validation of a customer loyalty model for e-service context has not been addressed. This paper describes a theoretical model for investigating the three main antecedent influences on loyalty (attitudinal commitment and behavioral loyalty) for e-service context: trust, customer satisfaction, and perceived value. Based on the theoretical model, a comprehensive set of hypotheses were formulated and a methodology for testing them was outlined. These hypotheses were tested empirically to demonstrate the applicability of the theoretical model. The results indicate that trust, customer satisfaction, perceived value, and commitment are separate constructs that combine to determine the loyalty, with commitment exerting a stronger influence than trust, customer satisfaction, and perceived value. Customer satisfaction and perceived value were also indirectly related to loyalty through commitment. Finally, the authors discuss the managerial and theoretical implications of these results.
This study aims to analyze the effect of digital marketing and marketing of consumer relations on consumer loyalty, especially for Traveloka train ticket consumers in Semarang City. The number of samples in this study amounted to 100 respondents using a random sample method. Respondents in this study were consumers of Traveloka train tickets in Semarang city using a Likert scale. The analysis technique in this research is descriptive quantitative. The research results obtained are that there is a positive and significant influence between digital marketing and consumer relationship marketing variables on consumer loyalty. These results provide a basis for Traveloka to increase customer loyalty by providing service satisfaction by implementing digital marketing and consumer relationship marketing Penelitian ini bertujuan untuk menganalisis pengaruh dari pemasaran digital dan pemasaan hubungan konsumen terhadap loyalitas konsumen, terkhusus untuk konsumen tiket kereta api Traveloka di Kota Semarang. Jumlah sampel pada penelitian ini sebesar 100 responden dengan mnggunakan metode sampel secara acak. Responden dalam penelitian ini adalah konsumen tiket kereta api Traveloka di kota semarang dengan menggunakan skala likert yang kemudian diolah dengan mnggunakan SPSS. Teknik analisis pada penelitian ini adalah deskriptif kuantitatif. Hasil penelitian yang didapatkan adalah terdapat pengaruh positif dan signifikan antara variabel pemasaran digital dan pemasaran hubungan konsumen terhadap loyalitas konsumen. Hasil ini memberikan dasar acuan bagi Traveloka untuk meningkatkan loyalitas konsumen dengan memberikan kepuasan layanan dengan menerapkan pemasaran digital dan pemasaran hubungan konsumen
Relationship marketing-establishing, developing, and maintaining successful relational exchanges-constitutes a major shift in marketing theory and practice. After conceptualizing relationship marketing and discussing its ten forms, the authors (1) theorize that successful relationship marketing requires relationship commitment and trust, (2) model relationship commitment and trust as key mediating variables, (3) test this key mediating variable model using data from automobile tire retailers, and (4) compare their model with a rival that does not allow relationship commitment and trust to function as mediating variables. Given the favorable test results for the key mediating variable model, suggestions for further explicating and testing it are offered.
Relationship marketing—establishing, developing, and maintaining successful relational exchanges—constitutes a major shift in marketing theory and practice. After conceptualizing relationship marketing and discussing its ten forms, the authors (1) theorize that successful relationship marketing requires relationship commitment and trust, (2) model relationship commitment and trust as key mediating variables, (3) test this key mediating variable model using data from automobile tire retailers, and (4) compare their model with a rival that does not allow relationship commitment and trust to function as mediating variables. Given the favorable test results for the key mediating variable model, suggestions for further explicating and testing it are offered.
Customer relationship marketing or CRM is one of service quality form measured through commitment, communication, and complains handling. Customer trust and loyalty are expected to improve by managing those three dimensions of CRM. This research conducted to confirm CRM theoretical model in national banking industry. There are 165 respondents who participate in this research. Data are analyzed using Generalized Structured Component Analysis (GSCA). The result verifies that commitment and complaint handling of National Bank have positive effect to customer trust and customer loyalty. However, this research disconfirms communication effect to customer trust. Empirical model suggest that customer trust is intervening variable which connects CRM to customer loyalty.
This article presents a network analysis of electronic word-of-mouth referral communication in a real life online environment. The goal of the paper was to clarify the existing terminology of electronic word-of-mouth behavior, to examine the kind of network structure that will emerge in the electronic environment, and finally to explore the impact of the network structure on the acceptance of an innovation in such a communication environment. Results indicated that the structure of an electronic communication network is different from the traditional interpersonal communication network structure. This study also showed that the network structure affects innovation adoption timing in the electronic communication environment, as a centralized network structure leads towards early adoption and as tie strength and adoption timing are related.
Marketers who are interested in determining whether their frequent guests are truly loyal must assess both their guests' attitudes and their actions.
Purpose – Drawing on social exchange and similarity attraction theories, the purpose of this paper is to explore the effect of soft attributes (e.g. social and relational attributes) on hard attributes (e.g. core attribute performance) in a high contact service context, namely in the hair care service environment. Design/methodology/approach – This research extends the key mediating variable model (KMVM) of Morgan and Hunt by hypothesising that, while trust fully mediates the effect of soft attributes on loyalty, trust only partially mediates the effect of hard attributes on loyalty. Data were collected using the critical incident technique from 176 students. Findings – Supports the fully mediating role of trust for soft attributes and a partially mediating role of trust for hard attributes. Research limitations/implications – Future research should test the model in contexts that involve less employee-customer contact and interaction. Originality/value – The study underscores the practical importance of investing in non-core (soft attributes such as social and relational attributes that focus on social bonding) attributes in addition to core attributes (hard attributes such as performance excellence of key service delivered) in service marketing.
Prior literature has examined product quality and service quality separately as antecedents of customer loyalty. In the context of the automotive industry, we present a framework that examines the simultaneous impact of product and service quality on consumers' purchase intentions. The framework is operationalized as several hypotheses that posit relationships between service quality, service satisfaction, product quality, and customer loyalty. The hypotheses are tested using three sources of data: (i) archival data on product quality and customer purchases, (ii) consumersíresponses to a survey instrument, and (iii) Consumer Reports. Results indicate general support for main hypotheses proposed.
The study adopts a relationship perspective to examine and better understand customers' interactions with service firms' contact personnel, physical environment and customer environment and their influence on the relationship quality, that is trust and satisfaction, and consequently loyalty. The conceptual model, which integrates relational and evaluative perspectives, is validated in the Asian context of personalized service through findings from a survey of 325 respondents. The findings at the aggregate level indicate that while the physical environment is an important determinant of both trust and satisfaction in personalized service encounters, the customer environment influences only satisfaction but not trust. Service contact personnel's friendliness and knowledge of customers strongly influence relationship quality; while expertise, similarity and disclosure influence trust but not satisfaction. Both relationship trust and satisfaction were found to significantly influence loyalty to the service provider. At the disaggregate level, trust was found to be a stronger predictor of loyalty for high-end service providers while satisfaction was a stronger predictor of loyalty for low-end service providers. The implications for high-end and low-end service providers to enhance loyalty by strategically leveraging on key customer-firm antecedents of relationship trust and satisfaction are discussed.
Purpose – To analyze the relationship between corporate image and consumer trust in the context of financial services distribution. Design/methodology/approach – This paper analyzes the causal relationship that exists between corporate image and consumer trust in the financial services distribution through traditional channels, as well as over the internet. This paper also analyzes the moderating effect of relationship duration on the influence of the corporate image on trust. Findings – The results obtained show that in distribution through traditional channels no significant differences exist in the intensity of the effect of the image on trust in terms of the relationship duration. Nevertheless, significant differences in the financial services distribution over the internet have been observed. Practical implications – The significant influence that image exerts on consumer trust shows us that corporate image becomes a key tool for the management of trust in financial services distribution. Originality/value – Despite the importance that researchers have assigned to the variables of corporate image and trust, much of the work so far is in the initial phase of development. Thus, the majority of the works have been approached from a fundamentally theoretical perspective, or else the empirical testing has been carried out in an indirect way, based on factors that form part of the image or are related to it. Because of this, today there is no research that has empirically evaluated the role played by corporate image in the levels of trust of the consumer of financial services.
The primary goal of the study is to diagnose satisfaction and loyalty drivers in Polish retail banking sector. The problem is approached with Customer Satisfaction Index (CSI) models, which were developed for national satisfaction studies in the United States and European countries. These are multiequation path models with latent variables. The data come from a survey on Poles’ usage and attitude towards retail banks, conducted quarterly on a representative sample. The model used in the study is a compromise between author’s synthesis of national CSI models and the data constraints. There are two approaches to the estimation of the CSI models: Partial Least Squares - used in national satisfaction studies and Covariance Based Methods (SEM, Lisrel). A discussion is held on which of those two methods is better and in what circumstances. In this study both methods are used. Comparison of their performance is the secondary goal of the study.
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