The Effect of Marketing Mix on Customer Loyalty Through Customer Satisfaction and Customer Purchasing Decision on the Products of the North Sumatra Regional Bulog Perum Bulog
Introduction
The Indonesian rice market is highly competitive, with numerous players vying for market share. In this fiercely competitive environment, building customer loyalty is crucial for success. The North Sumatra Regional Bulog Perum Bulog, a leading rice producing company, must develop effective marketing strategies to stay ahead of the competition. This study examines the impact of the marketing mix on customer loyalty, taking into account the role of customer satisfaction and purchasing decisions.
Background
The high demand for rice in Indonesia has led to intense competition among rice producing companies. The North Sumatra Regional Bulog Perum Bulog, as a major player in the industry, must develop strategies to build customer loyalty and stay competitive. The marketing mix, a key component of marketing strategy, plays a crucial role in building customer loyalty. The marketing mix consists of four Ps: product, price, place, and promotion.
Methodology
This study employed a quantitative research approach with an associative causal design. A sample of 100 respondents from the North Sumatra Regional Bulog Perum Bulog was selected for the study. Data analysis was conducted using SmartPLS 3.0 (Partial Least Square) software.
Results
The results of the study showed that the marketing mix has a positive and significant influence on customer loyalty. Specifically, the product, price, and place variables have a direct positive and significant influence on customer loyalty. This means that good product quality, competitive prices, and product availability in easily accessible locations can directly increase customer loyalty.
Marketing Mix, Customer Satisfaction, and Purchase Decisions
The study also revealed the important role of customer satisfaction and purchasing decisions in building loyalty. The results showed that:
Price, place, and promotion variables have a positive and significant influence on customer loyalty through customer satisfaction. Affordable prices, strategic purchasing locations, and targeted promotions can increase customer satisfaction, which in turn encourages loyalty.
Place and promotion variables also have a positive and significant influence on customer loyalty through purchasing decisions. The availability of products in easy-to-reach locations and attractive promotions can encourage customers to buy, so that they gradually build loyalty.
Important Role of Satisfaction and Purchasing Decisions
The results of the study confirmed that customer satisfaction and purchasing decisions have a positive and significant influence on customer loyalty. High customer satisfaction makes customers more likely to buy products and recommend them to others. Meanwhile, repeated purchasing decisions show that customers are satisfied and have a preference for the product.
Recommendations for Increasing Customer Loyalty of Baskita
Based on the results of the study, the following recommendations are made to increase customer loyalty:
*** Maintaining Product Quality: *** Perum Bulog needs to maintain the quality of products to meet the standards expected by customers.
*** Maintaining Competitive Prices: *** Perum Bulog needs to monitor the price of rice on the market and ensure that the price of rice remains competitive.
*** Increasing Accessibility: *** The expansion of distribution networks and facilitates access to purchasing products in various locations can increase customer satisfaction.
*** Effective Promotion Strategies: *** Perum Bulog needs to develop an innovative and targeted promotional strategy to increase customer awareness about the product.
**Building Long-term Relationships: *** Perum Bulog needs to build long-term relationships with customers through loyalty programs, educational programs about rice, and build a customer community.
Conclusion
In conclusion, the marketing mix plays a crucial role in building customer loyalty. The study highlights the importance of customer satisfaction and purchasing decisions in building loyalty. By implementing effective marketing mix strategies, building customer satisfaction, and encouraging purchasing decisions, the North Sumatra Regional Bulog Division can build strong customer loyalty and win competition in the Indonesian rice market.
Limitations of the Study
This study has several limitations. Firstly, the study was conducted in a single region, which may limit the generalizability of the findings. Secondly, the study relied on a quantitative research approach, which may not capture the nuances of customer behavior. Future studies can build on this study by exploring the role of marketing mix in building customer loyalty in other regions and using a mixed-methods approach.
Future Research Directions
Future research can build on this study by exploring the following research directions:
Investigating the role of marketing mix in building customer loyalty in other industries.
Exploring the impact of digital marketing on customer loyalty.
Investigating the role of customer engagement in building customer loyalty.
By exploring these research directions, future studies can provide a more comprehensive understanding of the marketing mix and its role in building customer loyalty.Frequently Asked Questions (FAQs) on The Effect of Marketing Mix on Customer Loyalty
Q: What is the marketing mix, and how does it affect customer loyalty?
A: The marketing mix, also known as the 4 Ps, consists of product, price, place, and promotion. It plays a crucial role in building customer loyalty by influencing customer satisfaction and purchasing decisions.
Q: What are the key findings of the study on the effect of marketing mix on customer loyalty?
A: The study found that the marketing mix has a positive and significant influence on customer loyalty. Specifically, the product, price, and place variables have a direct positive and significant influence on customer loyalty.
Q: How does customer satisfaction affect customer loyalty?
A: Customer satisfaction has a positive and significant influence on customer loyalty. High customer satisfaction makes customers more likely to buy products and recommend them to others.
Q: What is the role of purchasing decisions in building customer loyalty?
A: Purchasing decisions have a positive and significant influence on customer loyalty. Repeated purchasing decisions show that customers are satisfied and have a preference for the product.
Q: What are the recommendations for increasing customer loyalty of Baskita?
A: The recommendations include maintaining product quality, maintaining competitive prices, increasing accessibility, effective promotion strategies, and building long-term relationships with customers.
Q: How can Perum Bulog implement effective marketing mix strategies to build customer loyalty?
A: Perum Bulog can implement effective marketing mix strategies by:
Maintaining product quality to meet the standards expected by customers
Monitoring the price of rice on the market and ensuring that the price of rice remains competitive
Expanding distribution networks and facilitating access to purchasing products in various locations
Developing an innovative and targeted promotional strategy to increase customer awareness about the product
Building long-term relationships with customers through loyalty programs, educational programs about rice, and building a customer community
Q: What are the limitations of the study?
A: The study has several limitations, including:
The study was conducted in a single region, which may limit the generalizability of the findings
The study relied on a quantitative research approach, which may not capture the nuances of customer behavior
Q: What are the future research directions?
A: Future research can build on this study by exploring the following research directions:
Investigating the role of marketing mix in building customer loyalty in other industries
Exploring the impact of digital marketing on customer loyalty
Investigating the role of customer engagement in building customer loyalty
Q: What are the implications of the study for Perum Bulog and other businesses?
A: The study has significant implications for Perum Bulog and other businesses. By implementing effective marketing mix strategies, businesses can build strong customer loyalty and stay competitive in the market.