The effect of perceived value, service quality, and reputation to trust and customer loyalty on independent automotive workshop in DKI Jakarta
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Institusion
Sekolah Tinggi Manajemen Ipmi
Author
Anggoro, Huger Dhanu
Subject
H Social Sciences (General)
Datestamp
2023-02-15 03:07:37
Abstract :
Automotive industry has become one of the primary pillars on the manufacturing industry in the Indonesian economy over the years. In the current state, the majority of new automobiles purchased become one package with repair and service through automotive dealership. However, past studies showed that customer loyalty to dealership workshop significantly drops after vehicle's warranty period expires. Moreover, studies related to trust customer loyalty in automotive industry are focusing on automotive dealerships or automotive brands only, not on the automotive workshop industry. Therefore, this research aims to identify factors influencing trust and customer loyalty on independent automotive workshops. The study also attempts to identify the most essential factors among those investigated: perceived value, service quality, reputation, and trust of the independent automotive workshops. A questionnaire survey was conducted with total sample of 97 independent workshop customers in greater Jakarta and analyzed through SPSS and SEM-PLS. Based of the findings, perceived value and reputation although have positive effect but it not significantly affects trust. service quality found to have positive and significant effect to trust while trust itself found to have positive and significant effect to trust. These findings have given the independent automotive workshop insight into which areas should be prioritized in order to retain their customers.
Automotive industry has become one of the primary pillars on the manufacturing industry in the Indonesian economy over the years. In the current state, the majority of new automobiles purchased become one package with repair and service through automotive dealership. However, past studies showed that customer loyalty to dealership workshop significantly drops after vehicle's warranty period expires. Moreover, studies related to trust customer loyalty in automotive industry are focusing on automotive dealerships or automotive brands only, not on the automotive workshop industry. Therefore, this research aims to identify factors influencing trust and customer loyalty on independent automotive workshops. The study also attempts to identify the most essential factors among those investigated: perceived value, service quality, reputation, and trust of the independent automotive workshops. A questionnaire survey was conducted with total sample of 97 independent workshop customers in greater Jakarta and analyzed through SPSS and SEM-PLS. Based of the findings, perceived value and reputation although have positive effect but it not significantly affects trust. service quality found to have positive and significant effect to trust while trust itself found to have positive and significant effect to trust. These findings have given the independent automotive workshop insight into which areas should be prioritized in order to retain their customers.
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