The Power of Customer Relationship Management (CRM) In Increasing Trust And Loyalty of Customers At Bank Rakyat Indonesia (BRI) Unit of Tanjung Selor Town, North Kalimantan Province
Journal Title: IOSR journal of Business and Management - Year 2018, Vol 20, Issue 12
Abstract
This study aims to determine the effect of customer relationship management (CRM) on customer trust and loyalty at the Bank Rakyat Indonesia (BRI) Unit of TanjungSelorTown. Using a quantitative approach with Structural Equation Modeling (SEM) analysis. The questionnaire was distributed to 100 customers as respondents. Using a likert scale measurement with a purposive sampling technique. The results showed that, CRM has no significant negative effect on customer loyalty with a coefficient of -0.11 with P = 0.148 (> 0.05). CRM has a significant positive effect on customer trust with a coefficient of 0.75 with P = *** (<0.05). Furthermore, customer trust also has a significant positive effect on customer loyalty with a coefficient of 0.79 with P = 0.010 (<0.05). This shows that CRM implemented at the BRI Unit of TanjungSelor Town has not been able to directly influence the strengthening of customer loyalty. However, because CRM directly has a significant influence on customer trust, then customer trust also has a significant influence on customer loyalty, then indirectly the influence of CRM on customer loyalty through intervening variables customer trust has a significant influence.This shows that, the better the implementation of CRM will increase customer loyalty if customer trust also increases. The CRM variable affects the variation of data on the variable customer trust by 57%. The remaining 43% is influenced by other factors outside of this study. CRM variables and customer trust affect data variation on customer loyalty variables by 51%. The remaining 49% is influenced by other factors outside of this study.
Authors and Affiliations
Arif Jauhar Tontowi, Jumasna .
Keywords
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- EP ID EP422304
- DOI 10.9790/487X-2012032735.
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