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THE EFFECT OF RELATIONSHIP MARKETING IN INDONESIAN COSMETICS MARKET
Corresponding Author(s) : Sevenpri Candra
Humanities & Social Sciences Reviews,
Vol. 7 No. 6 (2019): November
Abstract
Purpose: The success of a business distributor is closely associated with its customers, so that customer satisfaction and loyalty should be maintained well. This research aims to clarify whether there’s a significant effect between relationship marketing and corporate image on customer satisfaction and its impact on customer loyalty in the Cosmetics Company.
Methodology: This research is a quantitative, design with an associative descriptive study, to provide an overview of the effect between variables to be studied to test the hypothesis that has been established through a questionnaire survey. The population in this study is 54 retailer customers from Cosmetics Industry. The collected data were processed using the method of Partial Least Square (PLS) using software Warp PLS 5.0.
Result: Results showed that there is a significant effect between relationship marketing on customer satisfaction, and between customer satisfactions on customer loyalty. But there is no significant effect of corporate image on customer satisfaction. Furthermore, there is a significant indirect effect between relationship marketing on customer loyalty through customer satisfaction. However, there is no significant indirect effect between corporate images on customer loyalty through customer satisfaction.
Applications: This research can be used for universities, teachers, and students.
Novelty/Originality: In this research, the model of the -- is presented in a comprehensive and complete manner.
Keywords
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- Aburoub, A. S., Hersh, A. M., & Aladwan, K. (2011). Relationship between Internal Marketing and Service Quality with Customers’ Satisfaction. International Journal of Marketing Studies, 3(2), 107–118. https://doi.org/10.5539/ijms.v3n2p107 DOI: https://doi.org/10.5539/ijms.v3n2p107
- Alireza, F., Ali, K., & Aram, F. (2011). How Quality, Value, Image, and Satisfaction Create Loyalty at an Iran Telecom. International Journal of Business and Management, 6(8), p271. https://doi.org/10.5539/ijbm.v6n8p271 DOI: https://doi.org/10.5539/ijbm.v6n8p271
- Andarningtyas, N. (2013, October). Pasar kosmetik Indonesia menjanjikan. Retrieved July 20, 2017, from https://www.antaranews.com/berita/400824/pasar-kosmetik-indonesia-menjanjikan
- Bakhyt, S., Kalimbetov, B., & Khabibullayev, Z. (2018). Possibilities of mathematical problems in logical thinking. Development of secondary education pupils. Opción, 34(85-2), 441-457.
- Candra, S. (2014). The service quality of internet banking and impact to customer satisfaction: A preliminary finding. International Journal of Applied Engineering Research, 9(22), 17963–17970.
- Candra, S. (2016a). Knowledge capability and key stakeholders’ readiness in ERP implementation success. Far East Journal of Electronics and Communications, 16(3), 545–560. https://doi.org/10.17654/EC016030545 DOI: https://doi.org/10.17654/EC016030545
- Candra, S. (2016b). The evaluation of E-passport quality using E-government quality measurement (Case study of E-passport in DKI Jakarta). Advanced Science Letters, 22(5–6), 1360–1362. https://doi.org/10.1166/asl.2016.6613 DOI: https://doi.org/10.1166/asl.2016.6613
- Candra, S., & Juliani, M. (2018). Impact of E-Service Quality and Customer Value on Customer Satisfaction in LocalBrand. BINUS Business Review, 9(2), 125–132. https://doi.org/10.21512/bbr.v9i2.4650 DOI: https://doi.org/10.21512/bbr.v9i2.4650
- Cheng, C.-F., & Lee, A.-H. (2011). The influences of relationship marketing strategy and transaction cost on customer satisfaction, perceived risk, and customer loyalty. African Journal of Business Management, 5(13), 5199–5209.
- Ćoćkalo, D., ÄorÄ‘ević, D., & Sajfert, Z. (2011). Customer Satisfaction and Acceptance of Relationship Marketing Concept: An Exploratory Study in QM Certified Serbian Companies. Organizacija, 44(2). https://doi.org/10.2478/v10051-011-0004-y DOI: https://doi.org/10.2478/v10051-011-0004-y
- Ene, S., & Ozkaya, B. (2014). A Study on Corporate Image, Customer Satisfaction and Brand Loyalty in the Context of Retail Stores. Asian Social Science, 10(14), p52. https://doi.org/10.5539/ass.v10n14p52 DOI: https://doi.org/10.5539/ass.v10n14p52
- Gronroos, C. (2016). Service Management and Marketing: Managing the Service Profit Logic (4 edition). Chichester, West Sussex, UK: Wiley.
- Iravani, M. R., Niknejadi, F., & Jahandoost, Z. (2015). The Relationship Between Age And Job Satisfaction Consultants Government Girls High School In Isfahan In 2012-2013 Academic Year. Health, 70(22.65), 24.
- Kim, J.-H., & Hyun, Y. J. (2011). A model to investigate the influence of marketing-mix efforts and corporate image on brand equity in the IT software sector. Industrial Marketing Management, 40(3), 424–438. https://doi.org/10.1016/j.indmarman.2010.06.024 DOI: https://doi.org/10.1016/j.indmarman.2010.06.024
- Kotler, P. T., & Keller, K. L. (2015). Marketing Management (15 edition). Boston: Pearson.
- Kvet, M., & Matiasko, K. (2018). Temporal Data Performance Optimization using Preprocessing Layer. Journal of Information Systems Engineering & Management, 3(2), 13. https://doi.org/10.20897/jisem.201813 DOI: https://doi.org/10.20897/jisem.201813
- Lai, F., Griffin, M., & Babin, B. J. (2009). How quality, value, image, and satisfaction create loyalty at a Chinese telecom. Journal of Business Research, 62(10), 980–986. https://doi.org/10.1016/j.jbusres.2008.10.015 DOI: https://doi.org/10.1016/j.jbusres.2008.10.015
- Latan, H., Noonan, R., & Matthews, L. (2017). Partial Least Squares Path Modeling. In Partial least squares path modeling: basic concepts, methodological issues and applications. https://doi.org/10.1007/978-3-319-64069-3 DOI: https://doi.org/10.1007/978-3-319-64069-3
- Luo, C., Li, M., Peng, P., & Fan, S. (2018). How Does Internet Finance Influence the Interest Rate? Evidence from Chinese Financial Markets. Dutch Journal of Finance and Management, 2(1), 01. https://doi.org/10.20897/djfm/89590 DOI: https://doi.org/10.20897/djfm/89590
- Ndubisi, N. O. (2007). Relationship marketing and customer loyalty. Marketing Intelligence & Planning, 25(1), 98–106. https://doi.org/10.1108/02634500710722425 DOI: https://doi.org/10.1108/02634500710722425
- Roche, I. D. (2014). An Empirical Investigation of Internet Banking Service Quality, Corporate Image and the Impact on Customer Satisfaction; With Special Reference to Sri Lankan Banking Sector. The Journal of Internet Banking and Commerce, 19(2), 1–18. Retrieved from http://www.icommercecentral.com/open-access/an-empirical-investigation-of-internet-banking-service-quality-corporate-image-and-the-impact-on-customer-satisfaction.php?aid=37993
- Sekaran, & Bougie. (2011). RESEARCH METHODS FOR BUSINESS: A Skill-Building Approach. Wiley (7th ed.). Wiley.
- Silalahi, M. (2015, May). Kuartal I 2015, Pasar Kosmetik Tumbuh 8%. Retrieved July 19, 2017, from http://mix.co.id/lifestyle/kuartal-i-2015-pasar-kosmetik-tumbuh-8
- Silaparasetti, V., Srinivasarao, G., & Khan, F. R. (2017). STRUCTURAL EQUATION MODELING ANALYSIS USING SMART PLS TO ASSESS THE OCCUPATIONAL HEALTH AND SAFETY (OHS) FACTORS ON WORKERS’BEHAVIOR. Humanities & Social Sciences Reviews, 5(2), 88-97. https://doi.org/10.18510/hssr.2017.524 DOI: https://doi.org/10.18510/hssr.2017.524
- Tsai, M.-T., Tsai, C.-L., & Chang, H.-C. (2010). The Effect of Customer Value, Customer Satisfaction, and Switching Costs on Customer Loyalty: An Empirical Study of Hypermarkets in Taiwan. Scientific Journal Publishers, 38(6), 729–740. https://doi.org/10.2224/sbp.2010.38.6.729 DOI: https://doi.org/10.2224/sbp.2010.38.6.729
- Urbach, N., & Ahlemann, F. (2010). Structural Equation Modeling in Information Systems Research Using Partial Least Squares. JITTA : Journal of Information Technology Theory and Application, 11(2), 5–39.
- Yu, T., & Tung, F. (2013). Investigating effects of relationship marketing types in life insurers in Taiwan. Managing Service Quality: An International Journal, 23(2), 111–130. https://doi.org/10.1108/09604521311303408 DOI: https://doi.org/10.1108/09604521311303408
References
Aburoub, A. S., Hersh, A. M., & Aladwan, K. (2011). Relationship between Internal Marketing and Service Quality with Customers’ Satisfaction. International Journal of Marketing Studies, 3(2), 107–118. https://doi.org/10.5539/ijms.v3n2p107 DOI: https://doi.org/10.5539/ijms.v3n2p107
Alireza, F., Ali, K., & Aram, F. (2011). How Quality, Value, Image, and Satisfaction Create Loyalty at an Iran Telecom. International Journal of Business and Management, 6(8), p271. https://doi.org/10.5539/ijbm.v6n8p271 DOI: https://doi.org/10.5539/ijbm.v6n8p271
Andarningtyas, N. (2013, October). Pasar kosmetik Indonesia menjanjikan. Retrieved July 20, 2017, from https://www.antaranews.com/berita/400824/pasar-kosmetik-indonesia-menjanjikan
Bakhyt, S., Kalimbetov, B., & Khabibullayev, Z. (2018). Possibilities of mathematical problems in logical thinking. Development of secondary education pupils. Opción, 34(85-2), 441-457.
Candra, S. (2014). The service quality of internet banking and impact to customer satisfaction: A preliminary finding. International Journal of Applied Engineering Research, 9(22), 17963–17970.
Candra, S. (2016a). Knowledge capability and key stakeholders’ readiness in ERP implementation success. Far East Journal of Electronics and Communications, 16(3), 545–560. https://doi.org/10.17654/EC016030545 DOI: https://doi.org/10.17654/EC016030545
Candra, S. (2016b). The evaluation of E-passport quality using E-government quality measurement (Case study of E-passport in DKI Jakarta). Advanced Science Letters, 22(5–6), 1360–1362. https://doi.org/10.1166/asl.2016.6613 DOI: https://doi.org/10.1166/asl.2016.6613
Candra, S., & Juliani, M. (2018). Impact of E-Service Quality and Customer Value on Customer Satisfaction in LocalBrand. BINUS Business Review, 9(2), 125–132. https://doi.org/10.21512/bbr.v9i2.4650 DOI: https://doi.org/10.21512/bbr.v9i2.4650
Cheng, C.-F., & Lee, A.-H. (2011). The influences of relationship marketing strategy and transaction cost on customer satisfaction, perceived risk, and customer loyalty. African Journal of Business Management, 5(13), 5199–5209.
Ćoćkalo, D., ÄorÄ‘ević, D., & Sajfert, Z. (2011). Customer Satisfaction and Acceptance of Relationship Marketing Concept: An Exploratory Study in QM Certified Serbian Companies. Organizacija, 44(2). https://doi.org/10.2478/v10051-011-0004-y DOI: https://doi.org/10.2478/v10051-011-0004-y
Ene, S., & Ozkaya, B. (2014). A Study on Corporate Image, Customer Satisfaction and Brand Loyalty in the Context of Retail Stores. Asian Social Science, 10(14), p52. https://doi.org/10.5539/ass.v10n14p52 DOI: https://doi.org/10.5539/ass.v10n14p52
Gronroos, C. (2016). Service Management and Marketing: Managing the Service Profit Logic (4 edition). Chichester, West Sussex, UK: Wiley.
Iravani, M. R., Niknejadi, F., & Jahandoost, Z. (2015). The Relationship Between Age And Job Satisfaction Consultants Government Girls High School In Isfahan In 2012-2013 Academic Year. Health, 70(22.65), 24.
Kim, J.-H., & Hyun, Y. J. (2011). A model to investigate the influence of marketing-mix efforts and corporate image on brand equity in the IT software sector. Industrial Marketing Management, 40(3), 424–438. https://doi.org/10.1016/j.indmarman.2010.06.024 DOI: https://doi.org/10.1016/j.indmarman.2010.06.024
Kotler, P. T., & Keller, K. L. (2015). Marketing Management (15 edition). Boston: Pearson.
Kvet, M., & Matiasko, K. (2018). Temporal Data Performance Optimization using Preprocessing Layer. Journal of Information Systems Engineering & Management, 3(2), 13. https://doi.org/10.20897/jisem.201813 DOI: https://doi.org/10.20897/jisem.201813
Lai, F., Griffin, M., & Babin, B. J. (2009). How quality, value, image, and satisfaction create loyalty at a Chinese telecom. Journal of Business Research, 62(10), 980–986. https://doi.org/10.1016/j.jbusres.2008.10.015 DOI: https://doi.org/10.1016/j.jbusres.2008.10.015
Latan, H., Noonan, R., & Matthews, L. (2017). Partial Least Squares Path Modeling. In Partial least squares path modeling: basic concepts, methodological issues and applications. https://doi.org/10.1007/978-3-319-64069-3 DOI: https://doi.org/10.1007/978-3-319-64069-3
Luo, C., Li, M., Peng, P., & Fan, S. (2018). How Does Internet Finance Influence the Interest Rate? Evidence from Chinese Financial Markets. Dutch Journal of Finance and Management, 2(1), 01. https://doi.org/10.20897/djfm/89590 DOI: https://doi.org/10.20897/djfm/89590
Ndubisi, N. O. (2007). Relationship marketing and customer loyalty. Marketing Intelligence & Planning, 25(1), 98–106. https://doi.org/10.1108/02634500710722425 DOI: https://doi.org/10.1108/02634500710722425
Roche, I. D. (2014). An Empirical Investigation of Internet Banking Service Quality, Corporate Image and the Impact on Customer Satisfaction; With Special Reference to Sri Lankan Banking Sector. The Journal of Internet Banking and Commerce, 19(2), 1–18. Retrieved from http://www.icommercecentral.com/open-access/an-empirical-investigation-of-internet-banking-service-quality-corporate-image-and-the-impact-on-customer-satisfaction.php?aid=37993
Sekaran, & Bougie. (2011). RESEARCH METHODS FOR BUSINESS: A Skill-Building Approach. Wiley (7th ed.). Wiley.
Silalahi, M. (2015, May). Kuartal I 2015, Pasar Kosmetik Tumbuh 8%. Retrieved July 19, 2017, from http://mix.co.id/lifestyle/kuartal-i-2015-pasar-kosmetik-tumbuh-8
Silaparasetti, V., Srinivasarao, G., & Khan, F. R. (2017). STRUCTURAL EQUATION MODELING ANALYSIS USING SMART PLS TO ASSESS THE OCCUPATIONAL HEALTH AND SAFETY (OHS) FACTORS ON WORKERS’BEHAVIOR. Humanities & Social Sciences Reviews, 5(2), 88-97. https://doi.org/10.18510/hssr.2017.524 DOI: https://doi.org/10.18510/hssr.2017.524
Tsai, M.-T., Tsai, C.-L., & Chang, H.-C. (2010). The Effect of Customer Value, Customer Satisfaction, and Switching Costs on Customer Loyalty: An Empirical Study of Hypermarkets in Taiwan. Scientific Journal Publishers, 38(6), 729–740. https://doi.org/10.2224/sbp.2010.38.6.729 DOI: https://doi.org/10.2224/sbp.2010.38.6.729
Urbach, N., & Ahlemann, F. (2010). Structural Equation Modeling in Information Systems Research Using Partial Least Squares. JITTA : Journal of Information Technology Theory and Application, 11(2), 5–39.
Yu, T., & Tung, F. (2013). Investigating effects of relationship marketing types in life insurers in Taiwan. Managing Service Quality: An International Journal, 23(2), 111–130. https://doi.org/10.1108/09604521311303408 DOI: https://doi.org/10.1108/09604521311303408