THE INFLUENCE OF CUSTOMER TRUST TO CUSTOMER LOYALTY TO REPURCHASE INTENTION OF ULTRA MILK IN SURABAYA WITH PERCEIVED CSR AS MODERATING VARIABLE

Abstract

Slow growth, overcapacity, and intense competition between each players in the market make customer retention as primary target for most firms. Retaining existing customer means to make customers trust into loyalty to repurchase more of the product. Because of the globalization and mass international trade, customer awareness of corporate social responsibility (CSR) is increasing. Ultra Milk is chosen for the object of this study because, PT Ultra Jaya is already an old player in milk industry, which means PT Ultra Jaya already had many loyal customers. Also PT Ultra Jaya already engaged in CSR activities for 27 years, the author want to know if the CSR activities of PT Ultra Jaya will influenced the customer trust – loyalty link or not. This research designed to analyze the influence of customer trust to customer loyalty to repurchase intention of Ultra Milk in Surabaya with perceived CSR as moderating variable. Sample that is used in this research is 140 respondents living in Surabaya, and a buyer of Ultra Milk. All of the hypotheses will be tested using Structural Equation Modeling (SEM) with AMOS 16.0 as the software The results shows that all of the hypothesis is accepted with high significance level, except the third hypothesis, the moderating effect of perceived CSR towards customer trust – loyalty link, which is acceptet but has a margin significance level.