THE INFLUENCE OF EXPERIENTIAL MARKETING AND CUSTOMER SATISFACTION TOWARDS CUSTOMER LOYALTY OF WAKACAO

Abstract

Purpose The purpose of this research is to find out the influence of experiential marketing and customer satisfaction towards customer loyalty of WAKACAO. Design/Methodology/Approach In order to conduct this study, quantitative research was chosen with an online questionnaire of 27 statements. 322 respondents responded on the survey using purposive sampling method. It was specifically targeted to people who have tried WAKACAO’s product and lived in Jakarta. From this research, it is found out that KMO and Barlett’s test result is 0.767; 0.500; 0.500; 0.639; 0.500 for the independent variable which are sense, feel, think, act, and relate. Then, 0.775 for the mediating variable which is customer satisfaction, and 0.686 for the dependent variable which is customer loyalty. These data indicates the variables are significant based on KMO more than or equal 0.5 and Barlett’s test with the value less than 0.05. Moreover, in the independent variable, the communalities is range from 0.633 to 0.886. Then 0.500 to 0.744 for the mediating variable and lastly 0.711 to 0.868 for the dependent variable. Additionally, from the total variance, the result for independent variable is 75.092%; 77.321%; 75.127%; 68.246%; and 88.490%; then 61,227% for the mediating variable, and 78,272% for the dependent variable. All value shows more than 60% which shows significant result. Then, a reliability test was conducted using Cronbach’s Alpha criteria and from that data were reliable. Moreover, Structural Equation Modeling or SEM was utilized as a tool to test theoritical framework as well as hypotheses. Findings Some of the results of structural equation modelling (multivarite analysis) partially are not acceptable (Ha rejected) to customer satisfaction, which are feel and act. On the other hand, the other hypotheses are found significantly influance customer satisfaction which are sense, act, and relate. Customer satisfaction also found significantly influance to customer loyalty. Originality/Value The study influence of experiential marketing and customer satisfaction towards customer loyalty of WAKACAO has not been done before. Moreover, the majority of past researches only investigate the dimentions of brand image and brand trust towards brand loyalty.