ANALISIS PENGARUH ENVIRONMENTAL DAN NONENVIRONMENTAL TERHADAP CUSTOMER ENGAGEMENT DAN CUSTOMER LOYALTY PADA PELANGGAN ALFAMART DI SURABAYA

Abstract

The market of modern retail has been grown rapidly especially in Indonesia as well as numbers of modern retail company. In Indonesia alone there are several leaders of the market. Alfamart is one of the top two biggest leader in Indonesia. Despite there are so many companies which are in the same business industry, Alfamart can maintain that the customers are still loyalty and prefer to choose them instead of all the other modern retail store in Indonesia. The purpose of this study was to determine the effect of service quality, merchandise quality, store environment, convenience, assortment, promotion, product price, store reputation and word of mouth on customer loyalty through customer engagement of the customer of Alfamart in Surabaya. The expected benefits of this research is to add contributions to science in the field of management, especially how big the influence of service quality, merchandise quality, store environment, convenience, assortment, promotion, product price, store reputation and word of mouth can increase the customer loyalty that that can gain the competitiveness and success of the company in the long run. This study uses a quantitative approach to the analysis technique of Structural Equation Model (SEM) and the AMOS 22.0 software. The questionnaire distributed to 185 respondents in the sample in which the characteristics of respondents which consists of men and women in the age range 18-60 years, consumers who live in Surabaya, at least has shopped in Alfamart for two times in the last one month. The sampling method used in this research that is non - probability sampling. The results showed that Service Quality has insignificant positive effect on the customer engagement with regression coefficient of 0.03, merchandise quality has insignificant positive effect on the customer engagement to the value of regression coefficient of 0.109, store environment has insignificant positive effect on the customer engagement with the value of regression coefficient of 0.056, convenience has insignificant positive effect on customer engagement with regression coefficient of 0.166, assortment has insignificant positive effect on customer engagement with regression coefficient for 0.039, promotion has significant positive effect on customer engagement to the value of the coefficient Regression of 0.279, product price has significant positive effect on the customer engagement with the value of regression coefficient of 0.209, store reputation has significant positive effect on the customer engagement with regression coefficient of 0.415, word of mouth has significant positive effect on customer engagement with regression coefficient by 0.247, customer engagement has significant positive effect on customer loyalty with regression coefficient of 0.812.