PPKS brand association is proven to have a positive and significant influence on customer satisfaction

Oct 13, 2025 by wbrum.org 40 views

The Effect of Brand Associations and Quality Perceptions through Customer Satisfaction on the Decision to Repurchase Oil Palm Seeds

Introduction

Palm oil is a strategic commodity that plays a vital role in the Indonesian economy. The oil palm seedling industry continues to develop with the presence of new seed producers, making competition tighter. In the midst of CPO price turmoil, moratorium, and dynamic regulation, seed companies such as PPKS must adapt and find accurate strategies to achieve market share. One of the keys to success in industrial competition lies in the ability to build customer trust and loyalty. This study examines the effect of brand associations, quality perceptions, and customer satisfaction on the decision to repurchase oil palm seeds in the people's plantation segment.

Background

The oil palm seedling industry in Indonesia is a significant contributor to the country's economy. The industry's growth is driven by the increasing demand for palm oil, which is used in various products such as food, cosmetics, and biofuels. However, the industry is also facing challenges such as price fluctuations, environmental concerns, and competition from other seed producers. To remain competitive, seed companies like PPKS must focus on building strong relationships with their customers, including palm oil farmers.

Methodology

This study used a survey research method to collect data from 99 palm oil farmer respondents. The data was analyzed using the Partial Least Squares - Structural Equation Model (PLS-SEM) method. The study examined the effect of brand associations, quality perceptions, and customer satisfaction on the decision to repurchase oil palm seeds.

Results

The results of this study show that PPKS brand association has a positive influence, but it is not significant on the decision to repurchase oil palm seeds. This indicates that although the PPKS brand is well known by farmers, it is not strong enough to encourage significant repurchase. On the other hand, PPKS quality perception is proven to have a positive and significant influence on the re-purchase decision. This suggests that the quality of PPKS oil palm seed products is trusted by farmers and is a major factor in determining repurchase.

Furthermore, PPKS customer satisfaction is proven to have a positive and significant relationship with the decision to repurchase oil palm seeds. Customer satisfaction with PPKS products and services contributes greatly to encouraging re-purchases. Additionally, PPKS brand association is proven to have a positive and significant influence on customer satisfaction. This indicates that a strong PPKS brand is able to create positive perceptions in the eyes of customers, thereby increasing customer satisfaction.

Discussion

The results of this study highlight the importance of brand associations, quality perceptions, and customer satisfaction in encouraging the decision to repurchase oil palm seeds. The study suggests that PPKS needs to focus on building a strong brand image, improving product quality, and ensuring customer satisfaction. To achieve success, PPKS can implement strategies such as increasing brand awareness through effective marketing campaigns, building close relations with farmers' communities through educational and training programs, and building professional after-sales service systems.

Conclusion

This study reveals the vital role of brand associations, quality perceptions, and customer satisfaction in encouraging the decision to repurchase oil palm seeds. To achieve success in the oil palm seedling industry, PPKS needs to focus on building a strong brand image, improving product quality, and ensuring customer satisfaction. By implementing effective strategies, PPKS can increase customer trust and loyalty, thus making PPKS a major player in the oil palm seedling industry in Indonesia.

Recommendations

Based on the findings of this study, the following recommendations are made:

Increase brand awareness: PPKS should implement effective marketing campaigns to increase brand awareness among palm oil farmers.
Build close relations with farmers' communities: PPKS should build close relations with farmers' communities through educational and training programs to increase customer satisfaction.
Build professional after-sales service systems: PPKS should build professional after-sales service systems to ensure customer satisfaction.
Improve product quality: PPKS should apply strict quality standards, increase product innovation, and conduct sustainable research and development to improve product quality.
Increase customer satisfaction: PPKS should offer products and services that meet customer needs, maintain product availability, provide clear and accurate information, and respond to customer complaints quickly and professionally.

By implementing these strategies, PPKS can increase customer trust and loyalty, thus making PPKS a major player in the oil palm seedling industry in Indonesia.
Frequently Asked Questions: The Effect of Brand Associations and Quality Perceptions through Customer Satisfaction on the Decision to Repurchase Oil Palm Seeds

Q&A

Q: What is the significance of brand associations in the oil palm seedling industry?

A: Brand associations play a crucial role in the oil palm seedling industry as they influence customer perceptions and decisions. A strong brand association can create a positive image of the company, increasing customer trust and loyalty.

Q: How does quality perception affect the decision to repurchase oil palm seeds?

A: Quality perception has a significant impact on the decision to repurchase oil palm seeds. Customers who perceive the quality of the oil palm seeds as high are more likely to repurchase the product.

Q: What is the relationship between customer satisfaction and the decision to repurchase oil palm seeds?

A: Customer satisfaction has a positive and significant relationship with the decision to repurchase oil palm seeds. Customers who are satisfied with the product and services are more likely to repurchase the oil palm seeds.

Q: How can PPKS improve its brand association?

A: PPKS can improve its brand association by increasing brand awareness through effective marketing campaigns, building close relations with farmers' communities through educational and training programs, and building professional after-sales service systems.

Q: What strategies can PPKS implement to improve product quality?

A: PPKS can implement the following strategies to improve product quality:

Apply strict quality standards
Increase product innovation
Conduct sustainable research and development

Q: How can PPKS increase customer satisfaction?

A: PPKS can increase customer satisfaction by offering products and services that meet customer needs, maintaining product availability, providing clear and accurate information, and responding to customer complaints quickly and professionally.

Q: What are the benefits of building a strong brand association in the oil palm seedling industry?

A: Building a strong brand association in the oil palm seedling industry can lead to increased customer trust and loyalty, improved brand reputation, and increased market share.

Q: How can PPKS measure the effectiveness of its brand association and quality perception strategies?

A: PPKS can measure the effectiveness of its brand association and quality perception strategies by tracking customer satisfaction, repurchase rates, and market share.

Q: What are the challenges faced by PPKS in building a strong brand association and improving product quality?

A: PPKS may face challenges such as increasing competition, limited resources, and changing customer preferences. However, by implementing effective strategies and monitoring customer feedback, PPKS can overcome these challenges and achieve its goals.

Conclusion

The oil palm seedling industry is a competitive market where companies must focus on building strong relationships with their customers. By understanding the effect of brand associations, quality perceptions, and customer satisfaction on the decision to repurchase oil palm seeds, PPKS can implement effective strategies to increase customer trust and loyalty. By answering these frequently asked questions, we hope to provide valuable insights and recommendations for PPKS and other companies in the oil palm seedling industry.