DEVELOPMENT OF CUSTOMER LOYALTY MODEL ON MOBILE TRAVEL AGENT APPLICATION USER

• Main Author: AZHAR ASHARI NIM 23416012, MUHAMMAD
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/29158
• Institution: Institut Teknologi Bandung

Technological development influenced a major change in the way transaction are made. <br /> <br /> Nowadays, users and service providers can transact directly through their computers, <br /> <br /> smartphones and gadgets without having to face to face. This open access leads many service <br /> <br /> providers to switch their business concept from conventional to electronic business, better <br /> <br /> known as e-commerce. Huge population of smartphone users in Indonesia then open up <br /> <br /> another business opportunities for service providers. Service providers will be able to reach <br /> <br /> their customers directly through the installed application on their customer’s smartphone. This <br /> <br /> business later became known as m-commerce. This is such a great opportunities to service <br /> <br /> providers to expand their business. However, along with the increasing competition, service <br /> <br /> providers are required to be able to provide value that can make customers loyal to the <br /> <br /> products and services they offered. <br /> <br /> Customer loyalty in mobile travel agents (MTA) context defined as the user's decision to make <br /> <br /> repeat transaction using the same MTA application. Several previous studies have proven that <br /> <br /> customer loyalty is influenced by several factors such as customer satisfaction, trust and <br /> <br /> commitment. Meanwhile, customer satisfaction and trust itself are influenced by the <br /> <br /> dimensions of service quality. Research model was developed by applying five dimension of <br /> <br /> mobile service quality (M-S-QUAL), customer engagement and commitment as customer <br /> <br /> loyalty’s predecessor factors. Customer engagement in this study was reflected in two secondorder <br /> <br /> dimensions consisting of monetary experience and utilitarian experience. <br /> <br /> The study was conducted on 760 MTA’s application users who participated in the online <br /> <br /> survey. The data is then divided into two groups that are classified based on the level of income <br /> <br /> to be analyzed using the Multigroup Structural Equation Modeling (Multigroup SEM) method. <br /> <br /> The aim of using this method is to get a broader picture of the concept of customer loyalty, <br /> <br /> which can be used later to help service providers in designing their applications. Multigroup <br /> <br /> SEM analysis shows that the two groups with different income levels explain the concept of <br /> <br /> customer loyalty differently.