THE STRATEGY FOR IMPROVING THE CUSTOMERS LOYALTY OF KAI AGRO PARAHYANGAN
pdf

Keywords

price fairness
service quality
satisfaction
loyalty

How to Cite

FIRMANSYAH, B. E., & HARYANTO, B. (2021). THE STRATEGY FOR IMPROVING THE CUSTOMERS LOYALTY OF KAI AGRO PARAHYANGAN. Modern Management Review, 26(3), 69-78. https://doi.org/10.7862/rz.2021.mmr.18

Abstract

Purpose: This study aims to find out about the influence of price fairness and service quality toward customers’ satisfaction and loyalty, along with its indirect relationship on customers’ loyalty. This study focuses on the customers of Indonesian Railways Company/KAI especially the passenger of Argo Parahyangan with Jakarta – Bandung route through Gambir Station. Methodology: This study used a descriptive qualitative methodology, applying Square Equation Model (SEM) in analyzing the data. The sample is taken from 254 customers who use KAI Agro Parahyangan. Result: The results showed that full mediation on price fairness variable has no significant influence toward the customers’ satisfaction. Meanwhile, for the variable of service quality has significant and positive influence on customers’ satisfaction. But, both price fairness and service quality are having significant relationship toward customer’s loyalty. Conclusion: Therefore, in conclusion, customer’s loyalty is influenced by the customer’s satisfaction.

https://doi.org/10.7862/rz.2021.mmr.18
pdf

References

Abu-Alhaija, A. S., Nerina, R., Hashim, H., Jaharuddin, N. S. (2018). Determinants of Customer Loyalty: A Review and Future Directions. "Australian Journal of Basic And Applied Sciences", 12(7). DOI: 10.22587/ajbas.2018.12.7.17.

Aghamirian, B., Dorri, B., Aghamirian, B. (2015). Customer Knowledge Management Application in Gaining Organization’s Competitive Advantage in Electronic Commerce. "Journal of Theoretical and Applied Electronic Commerce Research", 10(1). DOI: 10.4067/S0718-18762015000100006.

Alfian, B. (2012). Pengaruh Citra Merek (Brand Image) Terhadap Pengambilan Keputusan Pembelian Mobil Toyota Kidjang Inova Pada PT. Hadji Kalla Cabang Polman Makasar. Universitas Hasanuddin.

Ariesty, W. (2017). Faktor Yang Mempengaruhi Customer Loyalty Di Carrefour. "Journal Muara Ilmu Ekonomi Dan Bisnis", 1(1). DOI: 10.24912/jmieb.v1i1.406.

Caruana, A. (2002). Service loyalty: the effects of service quality and the mediating role of customer satisfaction. "European Journal of Marketing", 36(7/8).

Curatman, A., Rahmadi, M., Ikhsani, M. (2016). Analisis Faktor-faktor Pengaruh Inovasi Produk yang Berdampak pada Keunggulan Bersaing UKM Makanan dan Minuman di Wilayah Harjamukti Kota Cirebon. "Journal Logika".

Dwiana, I., Wardi, Y. (2013). Pengaruh Tingkat Kepercayaan dan Kepuasan Atas Kualitas Pelayanan Terhadap Loyalitas Nasabah Tabungan Pada Bank Nagari Cabang Pasar Raya Padang. "Journal Universitas Andalas Madang", 1(1).

El-Adly, M. I. (2019). Modelling the relationship between hotel perceived value, customer satisfaction, and customer loyalty. "Journal of Retailing and Consumer Services", 50(c), 322–332. https://doi.org/10.1016/j.jretconser.2018.07.007

Fadhilla, R., Zimbalis, A., Setyawati, A., Anthony, D. (2019). The Impact of Price Fairness and Service Quality on Customer Satisfaction and Loyalty of Lion Air Airlines Due to Paid Baggage Policy on Domestic Flights at Soekarno Hatta Airport. "Advances in Transportation and Logistics Research", 2.

Garbarino, E., Maxwell, S. (2010). Consumer response to norm-breaking pricing events in e-commerce. "Journal of Business Research", 63(9–10). DOI: 10.1016/j.jbusres.2008.12.010.

Han, H., Lee, K. S., Chua, B. L., Lee, S., Kim, W. (2019). Role of airline food quality, price reasonableness, image, satisfaction, and attachment in building re-flying intention. "International Journal of Hospitality Management", 80.

Hapsari, R., Clemes, M. D., Dean, D. (2017). The impact of service quality, customer engagement and selected marketing constructs on airline passenger loyalty. "International Journal of Quality and Service Sciences", 9(1). DOI: 10.1108/IJQSS-07-2016-0048.

Henggartiasto, Y. D. D. T., Wibowo, S. A. (2012). Argo Parahyangan Train Service Quality Improvement. "The Indonesian Journal of Business Administration", 1(10).

Hidayah, R. T., Yolinda, S., Nugraha, D. N. S. (2019). The Effects of the Quality of Service and Social Media on the Interests of Argo Parahyangan Train Passengers on Bandung-Jakarta. "International Journal of Innovation, Creativity and Change", 6(5).

Kandampully, J., Zhang, T., Jaakkola, E. (2018). Customer experience management in hospitality: A literature synthesis, new understanding and research agenda. "International Journal of Contemporary Hospitality Management". DOI: 10.1108/IJCHM-10-2015-0549.

Kotler Karen, F. A. (1995). Strategic Marketing for Educational Institutions (2nd ed.). Englewood Cliffs: Prentice Hall.

Kotler, P., Keller, K. L. (2016). Marketing Management 15/e. In Prentice Hall.

Makanyeza, C., Chikazhe, L. (2017). Mediators of the relationship between service quality and customer loyalty. "International Journal of Bank Marketing", 35(3). DOI: 10.1108/IJBM-11-2016-0164.

Opata, C. N., Xiao, W., Nusenu, A. A., Tetteh, S., Asante Boadi, E. (2019). The impact of value co-creation on satisfaction and loyalty: the moderating effect of price fairness (empirical study of automobile customers in Ghana). "Total Quality Management & Business Excellence". DOI: 10.1080/14783363.2019.1684189.

Othman, B., Harun, A., Rashid, W., Ali, R. (2019). The impact of Umrah service quality on customer satisfaction towards Umrah travel agents in Malaysia. "Management Science Letters". DOI: 10.5267/j.msl.2019.6.014.

Parasuraman, A., Zeithaml, V. A., Berry, L. L. (1988). SERQUAL: a multiple-item scale for measuring consumer perceptions of service quality. "Journal of Retailing", 64(1).

Peng, L. Y., Wang, Q. (2006). Impact of Relationship Marketing Tactics (RMTs) on Switchers and Stayers in a Competitive Service Industry. "Journal of Marketing Management", 22(1–2). DOI: 10.1362/026725706776022263.

Pereira, D., Giantari, N. G. K., Sukaatmadja, I. P. G. (2016). Pengaruh service quality terhadap satisfaction dan customer loyalty Dadirah di Dili Timor-Leste. "E-Journal Ekonomi Dan Bisnis Universitas Udayana", ISSN: 2337-3067.

Priyo, J. S., Mohamad, B., Adetunji, R. R. (2019). An examination of the effects of service quality and customer satisfaction on customer loyalty in the hotel industry. "International Journal of Supply Chain Management", 8(1).

REP-PUN. (2018). KAI Launches Parahyangan Train New Image. Retrieved May 10, 2021, from Jabarprov. Access on the internet: https://www.jabarprov.go.id/En/index.php/news/5472/KAI_Launches_Parahyangan_Train_New_Image

Stefano, N. M., Casarotto Filho, N., Barichello, R., Sohn, A.P. (2015). A fuzzy SERVQUAL based method for evaluated of service quality in the hotel industry. "Procedia CIRP". DOI: 10.1016/j.procir.2015.02.140

Wantara, P., Tambrin, M. (2019). The Effect of Price and Product Quality Towards Customer Satisfaction and Customer Loyalty on Madura Batik. "International Tourism and Hospitality Journal", 2(1).

All texts published in the Journal "Modern Management Review" are available in the full version on the website of MMR. Digital IDs have also been entered from number 19 (3/2012) (DOI: 10.7862/rz.2018.mmr.1)

Open Access – CC BY-NC-ND 3.0 PL

This is an open access journal which means that all content is freely available without charge to the user or his/her institution. Users are allowed to read, download, copy, distribute, print, search, or link to the full texts of the articles, or use them for any other lawful purpose, without asking prior permission from the publisher or the author.

Downloads

Download data is not yet available.