Published on International Journal of Economics & Business
ISSN: 2717-3151, Volume 1, Issue 1, page 18 – 28
Publication Date: 1 September 2018
Faculty of Economics and Bussiness
University of Jember
Jember, East Java, Indonesia
This study aims to determine and analyze the value and tendency of the influence of the role of intermediary satisfaction variables between financial benefit variables, social benefits, and structural benefits on customer loyalty variables, as well as analyzing the value and tendency of direct influence variables financial benefits social benefits, structural benefits to satisfaction variables and variables customer loyalty. The variables in the study are relationship marketing dimensions which consist of financial benefits (X1), social benefits (X2), structural benefits (X3), customer satisfaction (Z), and customer loyalty (Y). The analysis used is path analysis to analyze the influence relationship between variables and analyze the role of intermediary variables in mediating the relationship between independent variables and dependent variables. Logic models of gradual path analysis with intermediate variables will only provide an intermediary role in connecting one variable to another, not helping to increase or increase the value of the influence directly. The results show that satisfaction plays a role in mediating relationships with a positive direction and with a relatively low level of tendency between financial benefits, social benefits, and structural benefits to loyalty. In addition, relationship marketing dimensions that are shaped by financial benefits that can build a relationship with customers on the basis of financial benefits and other benefits to customers; Social benefits that can build a social relationship with customers through good communication, and; Structural benefits that can help customers and provide information about everything that customers need will create satisfaction and shape the loyalty of their customers.
Keywords; Dimension of Relationship Marketing, Satisfaction, Loyalty, Logic, Role of Intermediate Variables
Maintaining all existing customers in general will be more profitable than customer changes because the cost of attracting new customers can be five times the cost of maintaining an existing customer (Kotler, 2007:207). One marketing strategy that can be used to retain customers is through a relationship marketing strategy. Then with relationship marketing, customers who have fostered good relations with the company will feel satisfied. Kotler (2007:117), states customer satisfaction is a feeling of pleasure or disappointment someone who appears after comparing the expected performance (results). Growing customer satisfaction will provide benefits, namely providing a good basis for repurchase and creating customer loyalty. Griffin (2002:31), customer loyalty is a customer who not only repurchases an item and service, but also has a positive commitment and attitude towards the service company, for example by recommending someone else to buy. Choosing to retain customers will be far more efficient than finding new customers.
Positive banking developments are also followed by the many choices of banking services that cause consumers to freely choose which banking services they will use. The large selection of banking services also led to increasingly high competition conditions between companies. The increasingly high competition conditions in the banking sector, of course forced the existing companies to try harder to maintain the existing market. The company is also required to make a good strategy in order to maintain and win the market, so that the company’s vision and mission can be achieved. The company also wants existing customers to be maintained forever, because loyal customers are one of the company’s assets. However, a competitor that emerges with all the advantages of its products causes the company to have difficulty in seizing new markets and coupled with the possibility of consumers going to other companies because of the superiority of the product. Efforts made by banks to retain their customers are intended so that customers have a desire to return and buy products offered by the bank.
BRI, Bank BNI, Bank BTN and Bank Jatim were chosen because they had several achievements during the 2015 and 2016 periods, based on data from Bank Indonesia and the Regional Financial Economics Study of East Java Province. BRI, Bank BNI, Bank BTN, and Bank Jatim are able to achieve growth above the average National Bank in Indonesia and Banks in East Java, both in the category of total assets, Third Party Funds (Demand Deposits, Savings) and Credit (Productive and Consumptive). The total number of banks in Indonesia as many as 119 banks, BRI banks, BNI banks, BTN banks, and Bank Jatim achieved relatively good ratings for total assets and total loans, a relatively good rating for total third party funds, a relatively good rating for capital paid up, as well as a relatively good rating for profit before tax (BI, December 2016 unaudited). The banking strategy in maintaining and improving performance can be done by the strategies used by BRI, BNI, Bank BTN and Bank Jatim by using relationship marketing strategies. Kurtz in Lupiyoadi (2006:117), stated that relationship marketing can be developed through three levels, namely financial benefits, social benefits, and structural benefits.
The theory that supports a concept in business strategy really needs to be considered, and the phenomena that occur in the field in reality are very unique and interesting can be examined more deeply, then the formulation of the problem in this study is;
a. What is the value and tendency of direct influence of financial benefits, social benefits, structural benefits of satisfaction and loyalty?
b. What is the value and tendency of direct influence of satisfaction with loyalty?
c. How the value and tendency of the influence of the intermediary role of satisfaction between financial benefits, social benefits, structural benefits of loyalty?
Based on the formulation of the problem above, the research objective is;
a. Knowing and analyzing values and the tendency of direct influence of financial benefits social benefits, structural benefits for satisfaction and loyalty;
b. Knowing and analyzing the values and trends of direct influence of satisfaction with loyalty;
c. Knowing and analyzing the value and tendency of the influence of the intermediary role of satisfaction between financial benefits, social benefits, and structural benefits of loyalty.
2. Literature Review
According to Chan in Tiasih (2014:8), relationship marketing is the introduction of each customer more closely by creating two-way communication by managing a mutually beneficial relationship between the customer and the company. This relationship is a partnership, not just a relationship between the seller and the buyer but rather leads to a closer and closer relationship. Whereas Kotler (2003:13), relationship marketing is the process of creating, maintaining and strengthening strong and value relationships with customers and other believers. Relationship Marketing underwent a change that was originally oriented to sales to be customer-oriented, from being initially oriented to customer manipulation to engaging customers in business activities, and from selling and giving information to obtaining information and satisfying customers. Kurtz in Lupiyoadi (2006:124) states that relationship marketing can be developed through three levels, namely:1) Financial benefits. The first approach to building a relationship that adds value to customers is to provide financial benefits. The intended financial benefit is that the company provides price-intensive customers so as to provide benefits for customers; 2) Social benefits. The company builds a social relationship with customers through good communication. Through this communication, the company knows and studies the needs and desires of individual customers; 3) Structural Benefits. The company builds a structural bond with customers so that customers can easily interact with the company concerned. Through this structural bond, the relationship between the company and the customer, which was originally a seller and buyer, turned into a partner in business.
Kotler (2003:70), satisfaction is a feeling of pleasure or disappointment someone who appears after comparing the expected performance (results). While Hasan (2008:58), customer satisfaction arises from an emotional response to the product used, especially when they compare perceived performance compared to expectations. Customer satisfaction is also a function of the difference between perceived performance and expectations. While customer satisfaction is a level of difference or incompatibility between perceived product performance and expected product performance. If performance is below expectations, customers feel dissatisfied. And vice versa, if the performance above expectations the customer feels satisfied or happy. The company’s goal is to create customers who are satisfied or happy, so that satisfied customers will provide benefits, such as making repeat purchases, disseminating good information to others about the company and creating customer loyalty or loyalty. The purpose of a company is to get profit or profit, where the profit is derived from the products and services they offer to consumers. Consumers are individuals who play an important role in achieving company goals, if these consumers make repeat purchases continuously in a long period of time, these consumers become customers. If the customer is loyal to the products and services offered by the company, of course the company will get profits from these customers.
Getting a loyal customer of the company requires a good cooperation in all the management of the company, a good company must be able to know what is desired by consumers and customers and also how they are satisfied or feel happy. In addition, the company management must also concentrate on how customers are satisfied and the company must foster good relationships so that customers become loyal to the company. Griffin (2002:4), defining customer loyalty is:”loyalty is defined as non-random purchase expressed over time by some decision making units”. Based on this definition, it can be explained that more loyalty refers to the form of behavior of decision-making units to make continuous purchases of goods or services of a selected company.
Relationship marketing is a tool to maintain loyal customers. The result is to increase the power of each other to increase customer satisfaction (Irawan, 2002). Tjiptono (2003:107), the main purpose of relationship marketing is to increase customer satisfaction in order to become loyal customers to the company, customer satisfaction is a full evaluation if the alternative chosen will give the same results or exceed customer expectations. Tjiptono (2003:107), relationship marketing will provide benefits for companies and customers. If the customer feels satisfied with the goods and services sold by the company, then there will be loyalty which is certainly needed by the company to continue to grow and survive in the tight market competition.
3. Research Methodology
This type of research is explanatory research, which explains a relationship between variables through hypothesis testing (Ghozali, 2005:12). Sugiyono (2012:8) Quantitative method is a research method based on philosophical positivism, used to examine certain populations or samples, data collection using research instruments, quantitative or statistical data analysis, with the main objective of testing predetermined hypotheses. Population consists of a set of objects that become the center of attention, from which contained information that is very wanted to be known (Gulo, 2004:76). The population in this study is all banking customers which include BRI, BNI, Bank BTN, and Bank Jatim.
The sample is a part or number of specific footage taken from a population and examined in detail (Santoso, 2008:71). The sampling method in this research is using multistage sampling. The first phase is to use cluster sampling as a determinant of banking which is considered credible with the status of state and private companies. The second stage is to use nonprobability sampling with purposive sampling technique as the determinant of respondents in the study that is indeed suitable as respondents. The purposive sampling technique with the criteria of respondents is the customer segment banking with priority categories (middle to upper class) in the four banks studied. The third stage is to use proportional sampling as a divider of the number of respondents that fits the needs in each unit of the object under study based on the total population in the object.
Determination of the number of samples in this study refers to the opinion of Roscoe (in Sekaran, 2006:253) that the sample size of more than 30 people and less than 500 is appropriate for most studies. Ferdinand (2002:51) suggests that the sample size depends on the number of indicators used in all variables. The sample size is the number of indicators multiplied by 5 to 10. Referring to Ferdinand the number of samples in this study were 105 customers who saved, obtained from 15 multiplied by 7. The number of samples in this study was 105 respondents. The distribution of the number of respondents, BRI Bank as many as 43 respondents, Bank BNI as many as 29 respondents, Bank BTN as many as 15 respondents, and Bank Jatim as many as 18 respondents.
The independent variable in this study is the dimension of relationship marketing; 1) Financial Benefits (X1), the indicators used are; (a) Promotion, (b) Prizes, and; (c) Reduction of costs; 2) Social Benefits (X2), the indicators used are; (a) Hospitality, (b) Ease, and; (c) Room, and; 3) Structural Benefits (X3), the indicators used are; (a) Information, (b) Reliability, (c) Guarantee. The connecting variable is satisfaction (Z), with the indicator being; 1) Meeting needs; 2) Providing solutions, and; 3) Reliable service. The dependent variable is loyalty (Y), with the indicator being; 1) Loyalty; 2) Resilience to negative influences, and 3) Refer.
Likert scale is a scale that is based on the sum of respondents’ attitudes in responding to statements relating to indicators of a concept or variables being measured (Sanusi, 2011:59). The data collection process uses a questionnaire based on indicators with an assessment using a Likert scale with a score of 1 to 5.
Path analysis is part of linear regression analysis which is used to analyze causal relationships between variables where independent variables affect dependent variables, either directly or indirectly through one or more intermediaries. Path analysis is an extension of simple or multiple linear regression equations that are needed in the path of variable relations that involve more than one equation and are more focused on the role of intermediary variables or indirect effects (Sarwono, 2006:147). Path analysis equation formed;