The Effect of Perceived Value on Customer Retention with Trust as Mediation Variable in Company X

  • Meliyana Prasetyo Tejo Universitas Ciputra
Abstract views: 45 ,
Keywords: perceived value, trust, customer retention, and family business.

Abstract

This research was conducted to determine the effect of perceived value on trust, the purposes are to know the effect of perceived value on customer retention, to know the effect of trust on customer retention, to know the role of trust as mediator in the relationship between perceived value on customer retention in Company X family business which moved as distributor basic needs. Research data collection was distributed to 68 respondents of Company X B2B customer who regularly purchase on 2020. Analysis method for this research used Partial Least Square Structural Equation Modeling (SEM PLS) with smart PLS 3.0 program. The results of the analysis in this study are perceived value have a positive relationship and significant effect on trust; perceived value doesn’t have significant effect on customer retention in Company X; trust has a positive and significant effect on customer retention in Company X; Trust fully mediates perceived value to customer retention in Company X. Managerial implications based on the results are creating more services and educate customer about service offer compared with competitors, improving service with implementing computerize system to decrease error, employee training, and proposing program such as cash discount or bonus product to maintain customer retention.

References

[1] Ammar, W., Mateen, Z., Ghaffar, A., & Rehman, A. U. (2015). Attaining customer loyalty! The role of customer satisfaction and customer retention (Mobile handset industry-University of Gujrat, Pakistan). IOSR Journal of Business and ManagementVer. I, 17(3), 2319–7668. https://doi.org/10.9790/487X-17311631
[2] Balitbangtan. (2015). Outlook Komoditas Pangan Strategis Tahun 2015-2019. Pusat Sosial Ekonomi Dan Kebijakan Pertanian, Badan Penelitian Dan Pertanian Indonesia, 1–148. http://pse.litbang.pertanian.go.id/ind/pdffiles/anjak_2015_18.pdf
[3] Bricci, L., Fragata, A., & Antunes, J. (2016). The Effects of Trust, Commitment and Satisfaction on Customer Loyalty in the Distribution Sector. Journal of Economics, Business and Management, 4(2), 173–177. https://doi.org/10.7763/joebm.2016.v4.386
[4] Carlos Fandos Roig, J., Sanchez Garcia, J., Angel Moliner Tena, M., & Llorens Monzonis, J. (2006). Customer perceived value in banking services. International Journal of Bank Marketing, 24(5), 266–283. https://doi.org/10.1108/02652320610681729
[5] Edward, M., & Sahadev, S. (2011). Role of switching costs in the service quality, perceived value, customer satisfaction and customer retention linkage. Asia Pacific Journal of Marketing and Logistics, 23(3), 327–345. https://doi.org/10.1108/13555851111143240
[6] Haghkhah, A., & Asgari, A. A. (2020). Effects of customer value and service quality on customer loyalty : Mediation role of trust and commitment in business-to-business context. Management Research and Practice, 12(1), 27–48.
[7] Hanaysha, J. R. (2018). Customer retention and the mediating role of perceived value in retail industry. World Journal of Entrepreneurship, Management and Sustainable Development, 14(1), 2–24. https://doi.org/10.1108/wjemsd-06-2017-0035
[8] Hasan, H., Kiong, T. P., & Ainuddin, R. A. (2014). Effects of Perceived Value and Trust on Customer Loyalty towards Foreign Banks in Sabah, Malaysia. Journal of Relationship Marketing, 1(2), 137–153.
[9] Hume, M., & Mort, G. S. (2010). The consequence of appraisal emotion, service quality, perceived value and customer satisfaction on repurchase intent in the performing arts. Journal of Services Marketing, 24(2), 170–182. https://doi.org/10.1108/08876041011031136
[10] Itani, O. S., Kassar, A. N., & Loureiro, S. M. C. (2019). Value get, value give: The relationships among perceived value, relationship quality, customer engagement, and value consciousness. International Journal of Hospitality Management, 80(March 2018), 78–90. https://doi.org/10.1016/j.ijhm.2019.01.014
[11] Linhares, M. R. S., de Mesquita, J. M. C., Vianna, K. A., & Moreira, P. de C. G. (2016). Factors Influencing Trust and Commitment in Business to Business Market: A Study on the Distribution Sector of Industrial Supplies. 55–66. https://doi.org/10.1007/978-3-319-29877-1_11
[12] Martinus, H. (2011). Analisis Industri Retail Nasional. Humaniora, 2(2), 1309. https://doi.org/10.21512/humaniora.v2i2.3193
[13] Mencarelli, R., & Rivière, A. (2015). Perceived value in B2B and B2C: A comparative approach and cross-fertilization. Marketing Theory, 15(2), 201–220. https://doi.org/10.1177/1470593114552581
[14] Milan, G. S., Eberle, L., & Bebber, S. (2015). Perceived Value, Reputation, Trust, and Switching Costs as Determinants of Customer Retention. Journal of Relationship Marketing, 14(2), 109–123. https://doi.org/10.1080/15332667.2015.1041353
[15] Minta, Y. (2018). Link between satisfaction and customer loyalty in the insurance industry : Moderating effect of trust and commitment. Journal of Marketing Management, 6(2), 25–33. https://doi.org/10.15640/jmm.v6n2a3
[16] Qaiser Danish, R., Ahmad, F., Ateeq, A., Yasir Ali, H., & Afzal Humayon, A. (2015). Factors Affecting Customer Retention in Telecom Sector of Pakistan. American Journal of Marketing Research, 1(2), 28–36. http://www.aiscience.org/journal/ajmrhttp://creativecommons.org/licenses/by-nc/4.0/
[17] Shao, J. B., Wang, Z., & Long, X. X. (2008). The driving factor of customer retention: Empirical study on bank card. 2008 International Conference on Management Science and Engineering 15th Annual Conference Proceedings, ICMSE, 558–564. https://doi.org/10.1109/ICMSE.2008.4668969
Published
2021-10-26
How to Cite
Prasetyo Tejo, M. (2021). The Effect of Perceived Value on Customer Retention with Trust as Mediation Variable in Company X. JURNAL NUSANTARA APLIKASI MANAJEMEN BISNIS, 6(2). https://doi.org/10.29407/nusamba.v6i2.16205