ANALYZING THE EFECT OF PERCEIVED BENEFIT OF LOYALTY PROGRAM TOWARDS PROGRAM LOYALTY AND CUSTOMER LOYALTY (CASE STUDY: GO POINTS BY GO-JEK)

• Main Author: Lathoiful Kamal, Mochamad
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/69547
• Institution: Institut Teknologi Bandung

Go-Jek is one of the leading startup company in Indonesia that specialized in providing wide range of on-demand service, from ride-hailing to cleaning service. By the time, Go-Jek is growing fastly and now they have more than 40 million downloads on its app and 10 million weekly active users. With huge amount of customers that spread across Indonesia, Go-Jek started to think to make their customers remain loyal since there are some competitors out there that will become a threat to the existing of Go-Jek customers. Therefore, Go-Jek launched its new feature called Go-Points that aims to establish long term relationship between Go-Jek and their customers. The purpose of this research is to analyze the relationship between perceived benefits of Go-Jek loyalty program (monetary savings, exploration, entertainment, recognition, and social benefits), program loyalty, and customer loyalty. A quantitative approach is applied by spreading online questionnaire to Go-Jek customers and collecting 400 responses. The results will be asses using confirmatory factor analysis and structural equation modeling. The findings revealed that all dimensions of perceived benefits of loyalty program have positive directions and significant influence in predicting program loyalty and customer loyalty. Entertainment benefits were found to be the most significant predictor of both endogen variables. Moreover, program loyalty was positively predicted customer loyalty.