Exploring The Mediating Effect Of Trust And Word Of Mouth On Customer Relationship Marketing And Customer Loyalty

Abstract

Mixue is one of the companies engaged in the Indonesian food and beverage sector. The high development of Mixue has an impact on price competition with competitors and the price of ice cream from Mixue is the most expensive compared to the price of ice cream from other brands, however, the development of Mixue remains so massive from the beginning of its expansion, so that the number of outlets opened can be an indicator of high demand and popularity of Mixue and an indication of customer loyalty to Mixue. Based on the Commitment-Trust Theory of Relationship Marketing, this study examines customer trust and Word of mouth mediating the influence of customer relationship marketing on customer loyalty. This study falls into the category of explanatory research using a quantitative approach. The population determined in this study is all Mixue customers who have consumed Mixue in Malang city; the number is unknown (infinite), so the sample size is 140 respondents. The analysis technique in this study is Structural Equation Modeling (SEM). The study's results indicate that customer relationship marketing influences customer loyalty mediated by customer trust and Word of mouth. The novelty of this study is that trust and Word of mouth are mediating variables for the influence of customer relationships on customer loyalty, developed in one model. This study provides theoretical implications as a development of the Commitment-Trust Theory of Relationship Marketing, which suggests that trust and commitment are interrelated and mutually reinforcing. Customers who trust Mixue will be more likely to commit to the relationship. Recommendations that can be given by Mixue management in Malang City are to be more open to receiving suggestions from customers regarding the products offered, management needs to pay attention to customer comfort, and management needs to create good relationships with customers so that customers tell others about their experiences. Future research can be done by studying customer satisfaction with Mixue in Malang City, which can be used as a comparison.