ANALYSIS OF CUSTOMER LOYALTY INFLUENCING FACTORS BASED ON CUSTOMER TYPES ON AQUA BOTTLED WATER IN SURABAYA

Abstract

Having a sustainable competitive advantage is important for a company to survive in the current business environment. Customer loyalty is viewed as one of the main tools to create sustainable competitive advantage. This study examined factors that were statistically significant to customer loyalty on AQUA bottled water in Surabaya, considering CSR, Product Quality, Purchase Decision, and customers supportiveness towards CSR. Customers were divided into four types in accordance to the supportiveness towards CSR: (1) Citizen; (2) Conventional; (3) Informed; and (4) Price Oriented. Primary data with population of people ages 18-40, end user and had purchased at least three times in the last three months was gathered through questionnaires and used in this study. Structural Equation Modeling analysis method was used as the method of analyzing. The result showed that among four groups of customers, only two of the group existed: Citizen Group and Price Oriented Group. For both groups, purchase decision had positive effect towards customer loyalty and product quality had positive effect towards purchase decision. CSR had positive effect towards purchase decision for Citizen Group, but for Price Oriented Group, the positive effect was failed to be proven.