Switching Barrier Effect on Millennial Customer Retention through the Mediation of Brand Trust
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Aug 16, 2021
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Abstract
The existence of a business phenomenon between companies in the modern herbal medicine industry related to the difference between switching barriers, brand trust, and customer retention. The purpose of this research was to examine the difference in the relationship between variables to this phenomenon. This study used a purposive sampling method with a total sample of 130 millennials in Surakarta who consumed herbal sachets at least in the last 3 months. The research method used in this study is a quantitative method using SEM analysis tools AMOS version 21.0. This study indicates that the switching barrier affects customer retention significantly both directly and when mediated by brand trust. So in the Modern Herbal Medicine Industry, the development of customer retention is very dependent on switching barriers and brand trust.
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References
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Devaraja, T. S. (2012). An overview of Customer Relationship Management and Customer Value in the Information Technology Industry. University of Mysore Hassan.
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Ferdinand, A. (2014). Structural Equation Modelling (5th ed.). UNDIP Press.
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Ghozali, I. (2014). Model Persamaan Struktural: Konsep dan Aplikasi dengan Program AMOS 22.0 Update Bayesian SEM (6th ed.). UNDIP Press.
Ghozali, I., & Latan, H. (2015). Partial Least Squares Konsep, Teknik dan Aplikasi menggunakan Program SmartPLS 3.0 untuk Penelitian Empiris. UNDIP Press.
Gulid, N. (2014). The Influence Of Satisfaction , Trust , And Switching Barriers On Thai Tourists Retention. The Clute Institute International Academic Conference, 39–45.
Hardjanti, A., & Amalia, D. (2014). Pengaruh Customer Service Quality , Customer Perceived Value , Customer Satisfaction , Customer Trust Dan Switching Barriers Terhadap Customer Retention. Jurnal Ekonomi, 5(1), 1–12.
Jaya, I. (2019). Penerapan Statistik untuk Penelitian Pendidikan. Prenada Media Grup.
Kaur, G., Sharma, R. D., & Mahajan, N. (2012). Exploring customer switching intentions through relationship marketing paradigm. International Journal of Bank Marketing, 30(4), 280–302. https://doi.org/10.1108/02652321211236914
Khoza, K. (2012). Analisis Brand Trust Dan Brand Royalty Konsumen Garuda Indonesia. 29(324).
Klein, A., & Sharma, V. M. (2018). German Millennials’ Decision-Making Styles and Their Intention to Participate in Online Group Buying. Journal of Internet Commerce, 17(4), 383–417. https://doi.org/10.1080/15332861.2018.1463804
Liu, C., & Guo, Y. M. (2011). The effects of relationship quality and switching barriers on customer loyalty. February. https://doi.org/10.1016/j.ijinfomgt.2010.05.008
Lombard, Mornay Roberts. (2011). Customer retention through customer relationship management : The exploration of two-way communication and conflict handling. 5(May), 3487–3496. https://doi.org/10.5897/AJBM10.759
Margarena, A. N., & Auliya, Z. F. (2020). The Influence of Customer’s Satisfaction, Switching Barrier and Trust for Brands on Customer Retention: A Research on Millennials. Relevance: Journal of Management and Business, 3(2), 160–174. https://doi.org/10.22515/relevance.v3i2.2775
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Morgan, R. M., Parish, J. T., & Deitz, G. (2015). Handbook on Research in Relationship Marketing. Edward Elgar Publishing.
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Prayoga, I. M. S., Nyoman, N., Yasa, K., & Wardana, M. (2015). Relational Benefit , Kepuasan , Dan Loyalitas Pelanggan Pada Bengkel Pt Honda Dewata Motor. 17(1), 11–20. https://doi.org/10.9744/jmk.17.1.11
Qadri, U. A., & Khan, M. M. S. (2014). Factors Affecting On Customer Retention : A Case Study of Cellular Industry of Pakistan. International Journal of Recent Research in Commerce Economics and Management, 1(1), 1–22.
Quoquab, F., Mohammad, J., Yasin, N. M., & Abdullah, N. L. (2018). Antecedents of switching intention in the mobile telecommunications industry : A partial least square approach Asia Pacific Journal of Marketing and Logistics Article information : February 2019. https://doi.org/10.1108/APJML-06-2017-0121
Rejeki, D. S. (2018). Anteseden perceived risk pada purchase intention. Jurnal Manajemen Dan Pemasaran Jasa, 11(1), 145–160.
Ridwan, M. (2019). Pengaruh Faktor Psikologis dan Faktor Kepribadian Terhadap Kepercayaan Pelanggan dan Dampaknya pada Partisipasi Pelanggan E-Ecommerce di Indonesia. Jurnal Media Ekonomi (JURMEK) Vol. 24, No. 2 Agustus 2019 p--ISSN:1693-4768, e-ISSN:2656-8861, 24(2), 79–93.
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Romadhoni, B., Hadiwidjojo, D., & Aisjah, S. (2015). E-CommitmentIn Building Customer E-Loyalty : A Literature Review. 4(2), 1–9.
Sacui, V., & Dumitru, F. (2014). Market-based assets . Building value through marketing investments. Procedia - Social and Behavioral Sciences, 124, 157–164. https://doi.org/10.1016/j.sbspro.2014.02.472
Sari, Wahyu Yuli Tri Bodro., Kumadji, Srikandi., & Latief, Wasis. (2010). Pengaruh kepercayaan merek terhadap loyalitas merek. Jurnal Ilmu Administrasi Bisnis, 3.
Schiffman, L. G., & Wisenblit, J. (2015). Consumer Behavior (11e ed.). Pearson Education.
Schroer, W. J. (2019). Generations X,Y, Z and the Others. http://socialmarketing.org/archives/generations-xy-z-and-the-others/
Setiawan, Y., Rahayu, A., & Wibowo, L. A. (2019). Analysis Retail Marketing Mix and Customer Loyalty. 1(1), 47–57.
Simarmata, Juliater., Suryana, Yuyus., Kaltum, Umi., & Oesman, Yevis Marty. (2016). Airline Customer Retention in Indonesia 2015. International Journal of Management Sciences and Business Research, 5(2), 41–53.
Sugiyono. (2014). Metodologi Penelitian Kuantitatif Kualitatif R&D (21st ed.). Alfabeta.
Tonder, E. Van. (2017). A mediated model of relationship quality factors affecting behavioural intention at a luxury motor vehicle dealership. https://doi.org/10.1108/EBR-08-2016-0113
Top Brand Index. (2020). Top Brand Kategori Obat Masuk Angin 2020. https://www.topbrand-award.com/top-brand-index/?tbi_year=2020
Tung, G., Kuo, C.-J., & Kuo, Y.-T. (2011). Promotion , Switching Barriers , And Loyalty. Australian Journal of Business and Management Research, 1(2), 30–44.
Valenzuela, F. (2015). International Review of Business Research Papers The Effect of Switching Barriers Types on Customer Loyalty. January 2012.
Vuong, Han Gia ., & Nguyen, Minh Tan. (2018). Factors Influencing Millennials’ Purchase Intention towards Fast Fashion Products: A Case Study in Vietnam. International Journal of Social Science and Humanity, 8(8), 235–240. https://doi.org/10.18178/ijssh.2018.v8.967
Wiyadi, Rimbani, S. E., & Setyanto, G. T. (2014). Implementasi Strategi Pemasaran Relasional Dan Pengaruhnya Terhadap Kepuasan Pelanggaan (Kajian Empiris Pada Pelanggaan Bisnis Ritel Di Kota Surakarta). Seminar Nasional Dan Call for Paper:Research Methods And Organizational Studies, Sancall, 56–63.
Wunu, L. A. S., Taher, A., Suharyono, N., & Andriani, K. (2018). Effects Of Intensive Distribution And Sales Promotion On Corporate Image And Consumer-Based Brand Equity: A Study On Suzuki Car Consumers Of Pt. Surya Batara Mahkota, East Nusa Tenggara, Indonesia. RJOAS, 9(September), 172–184.
Yenny, C., & Japarianto, E. (2014). Pengaruh Kepuasan, Hambatan Berpindah Dan Penyediaan Fasilitas Terhadap Loyalitas Konsumen Di Hotel Novotel Surabaya. Jurnal Strategi Pemasaran, 2(1), 1–7.
Zulkifli. (2012). Relationship Marketing terhadap Customer Retention dan Customer Loyalty pada nasabah Bank MEGA, Tbk. Malang. Jurnal Manajemen Dan Akuntansi, 1(April), 1–16.
Danesh, Seiedeh Nasrin., Nasab, Saeid Ahmadi., & Ling, Kwek Choon. (2012). The Study of Customer Satisfaction, Customer Trust and Switching Barriers on Customer Retention in Malaysia Hypermarkets. International Journal of Business and Management, 7(7), 141–150. https://doi.org/10.5539/ijbm.v7n7p141
Devaraja, T. S. (2012). An overview of Customer Relationship Management and Customer Value in the Information Technology Industry. University of Mysore Hassan.
Dimyati, M. (2015). Customer Satisfaction and Switching Cost Toward Trust in the Brand and Customer Retention of Simpati in Jember. Journal of Arts, 1516(2), 15–27.
Ferdinand, A. (2014). Metode Penelitian Manajemen (5th ed.). UNDIP Press.
Ferdinand, A. (2014). Structural Equation Modelling (5th ed.). UNDIP Press.
Ghazali, E., Nguyen, B., Mutum, D. S., & Mohd-any, A. A. (2016). Constructing online switching barriers : examining the effects of switching costs and alternative attractiveness on e-store loyalty in online pure-play retailers. https://doi.org/10.1007/s12525-016-0218-1
Ghozali, I. (2014). Model Persamaan Struktural: Konsep dan Aplikasi dengan Program AMOS 22.0 Update Bayesian SEM (6th ed.). UNDIP Press.
Ghozali, I., & Latan, H. (2015). Partial Least Squares Konsep, Teknik dan Aplikasi menggunakan Program SmartPLS 3.0 untuk Penelitian Empiris. UNDIP Press.
Gulid, N. (2014). The Influence Of Satisfaction , Trust , And Switching Barriers On Thai Tourists Retention. The Clute Institute International Academic Conference, 39–45.
Hardjanti, A., & Amalia, D. (2014). Pengaruh Customer Service Quality , Customer Perceived Value , Customer Satisfaction , Customer Trust Dan Switching Barriers Terhadap Customer Retention. Jurnal Ekonomi, 5(1), 1–12.
Jaya, I. (2019). Penerapan Statistik untuk Penelitian Pendidikan. Prenada Media Grup.
Kaur, G., Sharma, R. D., & Mahajan, N. (2012). Exploring customer switching intentions through relationship marketing paradigm. International Journal of Bank Marketing, 30(4), 280–302. https://doi.org/10.1108/02652321211236914
Khoza, K. (2012). Analisis Brand Trust Dan Brand Royalty Konsumen Garuda Indonesia. 29(324).
Klein, A., & Sharma, V. M. (2018). German Millennials’ Decision-Making Styles and Their Intention to Participate in Online Group Buying. Journal of Internet Commerce, 17(4), 383–417. https://doi.org/10.1080/15332861.2018.1463804
Liu, C., & Guo, Y. M. (2011). The effects of relationship quality and switching barriers on customer loyalty. February. https://doi.org/10.1016/j.ijinfomgt.2010.05.008
Lombard, Mornay Roberts. (2011). Customer retention through customer relationship management : The exploration of two-way communication and conflict handling. 5(May), 3487–3496. https://doi.org/10.5897/AJBM10.759
Margarena, A. N., & Auliya, Z. F. (2020). The Influence of Customer’s Satisfaction, Switching Barrier and Trust for Brands on Customer Retention: A Research on Millennials. Relevance: Journal of Management and Business, 3(2), 160–174. https://doi.org/10.22515/relevance.v3i2.2775
Minarti, S. N., & Segoro, W. (2014). The Influence of Customer Satisfaction, Switching Cost and Trusts in a Brand on Customer Loyalty – The Survey on Student as im3 Users in Depok, Indonesia. Procedia - Social and Behavioral Sciences, 143, 1015–1019. https://doi.org/10.1016/j.sbspro.2014.07.546
Morgan, R. M., Parish, J. T., & Deitz, G. (2015). Handbook on Research in Relationship Marketing. Edward Elgar Publishing.
Ngacha, W. J., Erick, F., & Onyango, V. (2017). The role of a Customer-Oriented Service Culture in influencing Customer Retention in the Hotel Industry. 6(4), 1–19.
Nora, L. (2019). Trust , commitment , and customer knowledge : Clarifying relational commitments and linking them to repurchasing intentions Article information : February. https://doi.org/10.1108/MD-10-2017-0923
Padma, T. S., Nimran, U., & Astuti, E. S. (2016). The Influence Of Relationship Marketing On Switching Barrier , Customer Satisfaction , Customer Trust , And Customer Retention. International Journal of Business and Management Invention, 5(8), 47–53.
Prayoga, I. M. S., Nyoman, N., Yasa, K., & Wardana, M. (2015). Relational Benefit , Kepuasan , Dan Loyalitas Pelanggan Pada Bengkel Pt Honda Dewata Motor. 17(1), 11–20. https://doi.org/10.9744/jmk.17.1.11
Qadri, U. A., & Khan, M. M. S. (2014). Factors Affecting On Customer Retention : A Case Study of Cellular Industry of Pakistan. International Journal of Recent Research in Commerce Economics and Management, 1(1), 1–22.
Quoquab, F., Mohammad, J., Yasin, N. M., & Abdullah, N. L. (2018). Antecedents of switching intention in the mobile telecommunications industry : A partial least square approach Asia Pacific Journal of Marketing and Logistics Article information : February 2019. https://doi.org/10.1108/APJML-06-2017-0121
Rejeki, D. S. (2018). Anteseden perceived risk pada purchase intention. Jurnal Manajemen Dan Pemasaran Jasa, 11(1), 145–160.
Ridwan, M. (2019). Pengaruh Faktor Psikologis dan Faktor Kepribadian Terhadap Kepercayaan Pelanggan dan Dampaknya pada Partisipasi Pelanggan E-Ecommerce di Indonesia. Jurnal Media Ekonomi (JURMEK) Vol. 24, No. 2 Agustus 2019 p--ISSN:1693-4768, e-ISSN:2656-8861, 24(2), 79–93.
Rimiyati, H., & Widodo, C. (2014). Pengaruh Citra Merek, Kualitas Produk, Kepuasan Konsumen Terhadap Loyalitas Konsumen Merek Samsung Galaxy Series (Studi Pada Mahasiswa Universitas Muhammadiyah Yogyakarta). Jurnal Manajemen Bisnis, 5(2), 223–234.
Romadhoni, B., Hadiwidjojo, D., & Aisjah, S. (2015). E-CommitmentIn Building Customer E-Loyalty : A Literature Review. 4(2), 1–9.
Sacui, V., & Dumitru, F. (2014). Market-based assets . Building value through marketing investments. Procedia - Social and Behavioral Sciences, 124, 157–164. https://doi.org/10.1016/j.sbspro.2014.02.472
Sari, Wahyu Yuli Tri Bodro., Kumadji, Srikandi., & Latief, Wasis. (2010). Pengaruh kepercayaan merek terhadap loyalitas merek. Jurnal Ilmu Administrasi Bisnis, 3.
Schiffman, L. G., & Wisenblit, J. (2015). Consumer Behavior (11e ed.). Pearson Education.
Schroer, W. J. (2019). Generations X,Y, Z and the Others. http://socialmarketing.org/archives/generations-xy-z-and-the-others/
Setiawan, Y., Rahayu, A., & Wibowo, L. A. (2019). Analysis Retail Marketing Mix and Customer Loyalty. 1(1), 47–57.
Simarmata, Juliater., Suryana, Yuyus., Kaltum, Umi., & Oesman, Yevis Marty. (2016). Airline Customer Retention in Indonesia 2015. International Journal of Management Sciences and Business Research, 5(2), 41–53.
Sugiyono. (2014). Metodologi Penelitian Kuantitatif Kualitatif R&D (21st ed.). Alfabeta.
Tonder, E. Van. (2017). A mediated model of relationship quality factors affecting behavioural intention at a luxury motor vehicle dealership. https://doi.org/10.1108/EBR-08-2016-0113
Top Brand Index. (2020). Top Brand Kategori Obat Masuk Angin 2020. https://www.topbrand-award.com/top-brand-index/?tbi_year=2020
Tung, G., Kuo, C.-J., & Kuo, Y.-T. (2011). Promotion , Switching Barriers , And Loyalty. Australian Journal of Business and Management Research, 1(2), 30–44.
Valenzuela, F. (2015). International Review of Business Research Papers The Effect of Switching Barriers Types on Customer Loyalty. January 2012.
Vuong, Han Gia ., & Nguyen, Minh Tan. (2018). Factors Influencing Millennials’ Purchase Intention towards Fast Fashion Products: A Case Study in Vietnam. International Journal of Social Science and Humanity, 8(8), 235–240. https://doi.org/10.18178/ijssh.2018.v8.967
Wiyadi, Rimbani, S. E., & Setyanto, G. T. (2014). Implementasi Strategi Pemasaran Relasional Dan Pengaruhnya Terhadap Kepuasan Pelanggaan (Kajian Empiris Pada Pelanggaan Bisnis Ritel Di Kota Surakarta). Seminar Nasional Dan Call for Paper:Research Methods And Organizational Studies, Sancall, 56–63.
Wunu, L. A. S., Taher, A., Suharyono, N., & Andriani, K. (2018). Effects Of Intensive Distribution And Sales Promotion On Corporate Image And Consumer-Based Brand Equity: A Study On Suzuki Car Consumers Of Pt. Surya Batara Mahkota, East Nusa Tenggara, Indonesia. RJOAS, 9(September), 172–184.
Yenny, C., & Japarianto, E. (2014). Pengaruh Kepuasan, Hambatan Berpindah Dan Penyediaan Fasilitas Terhadap Loyalitas Konsumen Di Hotel Novotel Surabaya. Jurnal Strategi Pemasaran, 2(1), 1–7.
Zulkifli. (2012). Relationship Marketing terhadap Customer Retention dan Customer Loyalty pada nasabah Bank MEGA, Tbk. Malang. Jurnal Manajemen Dan Akuntansi, 1(April), 1–16.