Can Customer Loyalty Mediate Customer Trust in Business Sustainability at Village Credit Institution?

Main Article Content

I Wayan Gde Sarmawa
Ida Ayu Putu Widani Sugianingrat

Abstract

The main point of this research was to examine and analyze the impact of customer trust on customer loyalty and business sustainability at the Village Credit Institution in Klungkung Regency. The determination of the VCI as the research sample was carried out by unproportionate random sampling. The research respondents were customers in each VCI who were taken by accident (which was met at the time of the research) with a total number of respondents as many as 170 customers. Analysis this research and hypothesis using the SmartPLS 3.3.2 program with three level, the first is testing validity and reliability, the second is testing the accuracy of the research model, and the third is testing hypotheses. This results in this study indicate that customer trust has a positive relationship and significant impactt on customer loyalty and business sustainability. The customer loyalty has a significant positive effect relationship  on business sustainability. Customer loyalty acts as a mediator of customer trust on the business sustainability of VCI in Klungkung Regency.

Article Details

Section
Articles

References

Achmad, G. N., & Rahmawati, R. (2020). Effect Of Advertising Message And Customer Trust And Attitudes Consumers On Purchase Decisions Services And Customer Loyalty In Using Services Pertamina Hospital In Balikpapan. International Journal Of Economics, Business, And Accounting Research (Ijebar), 4(02).
Aslam, W., Hussain, A., Farhat, K., & Arif, I. (2020). Underlying Factors Influencing Consumers’ Trust and Loyalty in E-commerce. Business Perspectives and Research, 8(2), 186-204.
Auruskeviciene, V., Salciuviene, L., & Skudiene, V. (2010). The relationship quality effect on customer loyalty. Pecvnia: Revista de la Facultad de Ciencias Económicas y Empresariales, Universidad de León, (10), 23-36.
Ayodele, A. A., & Esiti, B. G. (2016). Predictive Indicators Of Customer Loyalty In The Nigerian Gsm Market. British Journal of Marketing Studies, 4(7).
Bagozzi, R. P., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the academy of marketing science, 16(1), 74-94.
Ball, D., Coelho, P. S., & Machás, A. (2004). The role of communication and trust in explaining customer loyalty: An extension to the ECSI model. European journal of marketing.
Baron, R. M., & Kenny, D. A. (1986). The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of personality and social psychology, 51(6), 1173.
Bibb, S. and Kourdi, J. (2007). A Question of Trust. London: Marshall Cavendish
Brilliant, M. A., & Achyar, A. (2013). The impact of satisfaction and trust on the loyalty of e-commerce customers. ASEAN Marketing Journal. Vol. V - No. 1. 51-58.
Chaudhuri, A., & Holbrook, M. B. (2001). The chain of effects from brand trust and brand affect to brand performance: the role of brand loyalty. Journal of Marketing, 65(2), 81-93.
Chin, W.W. (1998), The Partial Least Squares Approach to Structural Equation Modeling, In Marcoulides, G.A., editor. Modern Method for Business Research, Mahwah, New Jersey: Lawrence Erlbaum Associates, London
Chiu, C. M., Lin, H. Y., Sun, S. Y., & Hsu, M. H. (2009). Understanding customers' loyalty intentions towards online shopping: integration of technology acceptance model and fairness theory. Behaviour & Information Technology, 28(4), 347-360.
Esterhuyse, W. P. (2008). The sustainability balanced scorecard: its theory and applications to companies operating within the South African fishing industry (Doctoral dissertation, Stellenbosch: University of Stellenbosch).
Evangelista, R. L., & Ruão, T. A. (2011). Organizational Communication and Sustainability: studying European public campaigns. Observatorio (OBS*), 5(3).
Genç, R. (2017). The importance of communication in sustainability & sustainable strategies. Procedia Manufacturing, 8, 511-516.
Gonzalez F.M., Ávila L.G., Beltrán A.A., Hernández C. (2013). Measuring and Evaluating Business Sustainability: Development and Application of Corporate Index of Sustainability Performance. EcoProduction, 33-61.
Gremler, D. & Brown, S. 1999. The Loyalty Ripple Effect: Appreciating the full value of customers. International Journal of Service Industry Management, Volume 10, Issue 3, pp 271-28.
Gucel C. Tokmak I, Turgut H. (2012). The Relationship of The Ethical Leadership Among the Organizational Trust, Affective Commitment and Job Satisfaction: Case Study of a University. International Journal of Social Sciences and Humanity Studies Vol 4, No 2, pp. 101-110
Hair, J.F., Black, W.C., Babin, B.J. and Anderson, R.E. (2010), Multivariate Data Analysis, Seventh Edition, Pearson Prentice Hall
Hossain, M. S., Hasan, R., Kabir, S. B., Mahbub, N., & Zayed, N. M. (2019). Customer participation, value, satisfaction, trust, and loyalty: an interactive and collaborative strategic action. Academy of Strategic Management Journal, 18(3), 1-7.
Hsu, S.H. (2008). Developing an index for online customer satisfaction: adaptation of American Customer Satisfaction Index. Expert Systems with Applications, 34(4), 3033-3042.
Kang, J., Hustvedt, G. (2014). Building Trust Between Consumers and Corporations: The Role of Consumer Perceptions of Transparency and Social Responsibility. J Bus Ethics 125, 253–265.
Khadka, K., & Maharjan, S. (2017). Customer satisfaction and customer loyalty: Case trivsel städtjänster (trivsel siivouspalvelut).
Khan, M. T. (2013). Customers loyalty: Concept & definition (a review). International Journal of Information, Business, and Management, 5(3), 168.
Krumay, B., & Brandtweiner, R. (2010). Are Customer Service Offerings Influencing E-Loyalty? A Graphical Chain Model Approach in the Austrian Mobile Phone.
Lathan H. & Ghozali I., (2012). Partial Least Square Konsep, Teknik, Dan Aplikasi SmartPLS 2.0 M3 Untuk Penelitian, Badan Penerbit Universitas Diponegoro, Semarang.
Lee, Y. M., & Hu, J. L. (2018). Integrated approaches for business sustainability: The perspective of corporate social responsibility. Sustainability, 10(7), 2318.
Leninkumar, V. (2017). The relationship between customer satisfaction and customer trust on customer loyalty. International Journal of Academic Research in Business and Social Sciences, 7(4), 450-465.
Liang, C. J., & Wang, W. H. (2007). The behavioral sequence of information education services industry in Taiwan: relationship bonding tactics, relationship quality, and behavioral loyalty. Measuring Business Excellence.
Mandira, D. A. (2018). The Influence of Customer Trust, Service Quality, and Perceived Price on Customer Satisfaction and Customer Loyalty (Study on Customer of PT. Kobra Panca Sakti Expedition) (Doctoral dissertation, Universitas Jenderal Soedirman).
Marakanon, L., & Panjakajornsak, V. (2017). Perceived quality, perceived risk, and customer trust affecting customer loyalty of environmentally friendly electronics products. Kasetsart Journal of Social Sciences, 38(1), 24-30.
Markovic, S., Iglesias, O., Singh, J. J., & Sierra, V. (2018). How does the perceived ethicality of corporate services brands influence loyalty and positive word-of-mouth? Analyzing the roles of empathy, affective commitment, and perceived quality. Journal of Business Ethics, 148(4), 721-740.
Moreira, A.C. & Silva, P.M. 2015. The trust-commitment challenge in service quality-loyalty relationships. International Journal of Health Care Quality Assurance, Vol. 28, No. 3, pp. 253-266,
Ndubisi, N. O. (2007). Relationship marketing and customer loyalty. Marketing intelligence & planning.
Nguyen, N., Leclerc, A., & LeBlanc, G. (2013). The mediating role of customer trust on customer loyalty. Journal of Service Science and Management, Vol.6, No.1, pp. 96-109
Nur, H. (2012). The Effect Of Customer Satisfaction, Customer Trust On Customer Loyalty Of The Card Users Of PT. Indosat Tbk. In proceedings intl conf information system business competitiveness.
Ong, C. H., & Zien Yusoff, R. (2015). Brand experience, trust components, and customer loyalty: Sustainable Malaysian SME brands study. Asian Social Science, 11(26), 252-266.
Păduraru, T., Vătămănescu, E. M., Andrei, A. G., Pinzaru, F., Zbuchea, A., Maha, L. G., & Boldureanu, G. (2016). Sustainability In Relationship Marketing: An Exploratory Model For The Industrial Field. Environmental Engineering & Management Journal (EEMJ), 15(7).
Putra, I. P. K., Hudayah, S., & Achmad, G. N. (2020). The Effect Of Customer Value And Customer Trust On Satisfaction And Customer Loyalty Pt Samator Gas Industri Samarinda Seberang. International Journal of Economics, Business, and Accounting Research (IJEBAR), 4(02).
Qureshi, I., Fang, Y., Ramsey, E., McCole, P., Ibbotson, P., & Compeau, D. (2009). Understanding online customer repurchasing intention and the mediating role of trust–an empirical investigation in two developed countries. European Journal of Information Systems, 18(3), 205-222.
Rousseau, D. M., Sitkin, S. B., Burt, R. S., & Camerer, C. (1998). Not so different after all: A cross-discipline view of trust. Academy of management review, 23(3), 393-404.
Roy, S. (2011). Brand Loyalty Measurement A Framework. SCMS Journal of Indian Management, 8(2), 112.
Sarmawa, I. W. G., Widyani, A. A. D., Sugianingrat, I. A. P. W., & Martini, I. A. O. (2020). Ethical entrepreneurial leadership and organizational trust for organizational sustainability. Cogent Business & Management, 7(1), 1818368.
Sarwar, M. Z., Abbasi, K. S., & Pervaiz, S. (2012). The effect of customer trust on customer loyalty and customer retention: A moderating role of cause-related marketing. Global Journal of Management and Business Research, 12(6).
Schaltegger, S., & Burritt, R. (2005). Corporate sustainability (Doctoral dissertation, Edward Elgar).
Setiawan, H., & Sayuti, A. J. (2017). Effects of service quality, customer trust and corporate image on customer satisfaction and loyalty: an assessment of travel agencies customer in South Sumatra Indonesia. IOSR Journal of Business and Management, 19(5), 31-40.
Singh, J., & Sirdeshmukh, D. (2000). Agency and trust mechanisms in consumer satisfaction and loyalty judgments. Journal of the Academy of Marketing Science, 28(1), 150-167.
Soh, K. L., Chin, S. H., & Wong, W. P. (2015). A theoretical model to investigate customer loyalty on logistics service providers for sustainable business performance. International Journal of Business Performance and Supply Chain Modelling, 7(3), 212-232.
Strenitzerová, M., & Gaňa, J. (2018). Customer satisfaction and loyalty as a part of customer-based corporate sustainability in the sector of mobile communications services. Sustainability, 10(5), 1657.
Szekely, F., & Knirsch, M. (2005). Responsible leadership and corporate social responsibility:: Metrics for sustainable performance. European Management Journal, 23(6), 628-647.
Taoketao, E., Feng, T., Song, Y., & Nie, Y. (2018). Does sustainability marketing strategy achieve payback profits? A signaling theory perspective. Corporate Social Responsibility and Environmental Management, 25(6), 1039-1049.
Taylor, S.A., Celuch, K., & Goodwin, S. (2004). The Importance of Brand Equity to Customer Loyalty. The Journal of Product and Brand Management, 13(4), 217-227.
Tenenhaus M., Vinzi V.E., Chatelin T.M., Lauro C., (2008). PLS Path Modeling, Computational Statistics & Data Analysis, 48, pp. 159-205
Trini, D., & Salim, M. N. (2018). Customer Experience Marketing (CEM), Customer Satisfaction and Customer Trust Affects Customer Loyalty: A Study on Star Hotels in Jakarta Province. Business Management and Strategy, 9(2), 100-116.
Upamannyu, N. K., Gulati, C., Chack, A., & Kaur, G. (2015). The effect of customer trust on customer loyalty and repurchase intention: The moderating influence of perceived CSR. International Journal of Research in IT, Management and Engineering, 5(4), 1-31.
Utami, S. (2015). The Influence Of Customers‟ Trust On Customer Loyalty. International journal of economics, commerce, and management, 3(7), 638-653.
Widodo, A., & Murwatiningsih, M. (2019). The Influence of Promotion and Trust on Customer Loyalty through Customer Satisfaction. Management Analysis Journal, 8(3), 265-274.
Wong, H. S., Wong, R. K., & Leung, S. (2019). Enhancing sustainability in the banking industry: factors affecting customer loyalty. Academy of Accounting and Financial Studies Journal, 23(3), 1-12.
Wu, P. C., Yeh, G. Y. Y., & Hsiao, C. R. (2011). The effect of store image and service quality on brand image and purchase intention for private label brands. Australasian Marketing Journal (AMJ), 19(1), 30-39.
Zieni, B., Chitchyan, R., & Heckel, R. (2017, September). Trust as a sustainability requirement. In Proceedings of the 6th International Workshop on Requirements Engineering for Sustainable Systems (RE4SuSy 2017), Lisbon, Portugal (Vol. 5).