This empirical study aims to identify the effects of different factors influencing on customer satisfaction, such as perceived quality or perceived value in a case study in chemical industry. Understanding the effects of such variables helps us manage customers properly, balancing between perceived quality and perceived value. The research design is a quantitative method and employs Structural Equation Method (SEM) to ensure the correlation between constructs. The method results confirm that perceived value contributes a stronger influence on customer satisfaction than perceived quality does. Chemical market tends to put perceived value as a priority as long as the product quality meets the standard parameter. Perceived quality is reflected more by service while there is less point of differentiation on tangible product. The paper may limit the generalization of the findings, hence the replication in other industries are encouraged.
Industries have been emphasizing customer loyalty to ensure business sustainability. A lot of constructs influence customer loyalty, and this paper focuses on perceived value, social bond, and switching cost. What is actually behind customer’s retention with the firms becomes exciting topics to be explored since firms will employ the best strategy to retain customers, either through offering superior value, investing in a relationship, or in setting up switching costs. This study is designed to develop integrative constructs of customer loyalty and investigates their antecedents using the literature review method. Perceived value tends to be evaluated from an economic benefit perspective since this paper refers to some business practices in chemical industries that concern cost. Purposely, to achieve this economic value, both firms and customers need to work closely, transparently, and cooperatively since the beginning; hence, it needs an interpersonal relationship between parties. With more transferred information from the customer and more transparent communication, firms will be able to identify the customer’s need and deliver tailored superior value. This literature review finds that excellent value and the social bond become financial and relational switching costs for the customer. By understanding antecedents of loyalty, a firm can develop a social bond, superior value, and set up switching costs to create loyalty and build a sustainable business relationship.
Objective – The purpose of this study is to investigate which factors have a stronger influence on final purchase decisions from the perspective of the chemical market. The factors under consideration are customer satisfaction, commitment and cost fluctuations. Methodology/Technique – By understanding the factors that influence purchase decisions, a chemical company or other industrial company can place greater focus on the factors that will improve or enhance customer loyalty. The research design is a conclusive-descriptive and quantitative method. Findings & Novelty – The results of the analysis confirm that customer commitment and satisfaction have a stronger influence on customer loyalty, compared to fluctuating costs. Satisfaction does not have a direct influence on loyalty, except where commitment is used as a mediator. Type of Paper: Empirical Keywords: Satisfaction; Commitment; Switching Cost; Loyalty; B2B Relationship. Reference to this paper should be made as follows: Samudro, A.; Sumarwan, U.; Simanjuntak, M.; Yusuf, E. Z. 2019. How Commitment, Satisfaction, and Cost Fluctuations Influence Customer Loyalty, J. Mgt. Mkt. Review 4 (2): 115 – 125 https://doi.org/10.35609/jmmr.2019.4.2(3) JEL Classification: M10, M12, M19, M30.
Several kinds of research in the past examined relationship quality as antecedents in B2B industries. The literature review extends a prior study by linking perceived quality with relationship quality as antecedents and predictors of customer loyalty. This study is a review of customer loyalty antecedents with the chemical industry as a content object. Perceived quality has two dimensions of tangible product and service. Referring to past research, there is no single universal relationship quality framework. This literature study refers to the relationship quality framework with a content of trust, satisfaction, and commitment. The authors investigate the relationship between perceived quality with trust and satisfaction, trust with commitment, commitment with loyalty, and satisfaction with loyalty. Every construct describes the definition and connection among constructs. Some chemicals industries are put as object examples to explain constructs in industry practice. This literature review finds a developed framework with relevant constructs that influence loyalty in the B2B context. By understanding the framework and connection among constructs, firms can develop a relationship program purposely to achieve customer loyalty.
The purpose of this study is to develop a relationship quality model and investigate the links among the constructs. This empirical study aims to explore the construct's links between the key constituents of relationship quality model: trust, satisfaction, and commitment. The Structural Equation Model is employed to confirm the model and investigate the correlations and influences between constructs. The results of the analysis confirm the direct influence of commitment toward loyalty. Satisfaction does not have a direct influence on loyalty, but through commitment as a mediate variable. The finding confirms the relationship quality model with strong influences among constituents: satisfaction, trust and commitment; Commitment is the only variable whose direct influence toward customer loyalty.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.