FACTORS AFFECTING CUSTOMER LOYALTY TO TRADITIONAL MARKET IN CIKARANG

Abstract

Datas from Minot et.al (2013), Rahardi (2011), Malano (2011), and Sunanto (2012) shows that in recent years, traditional market face a tight competition with modern retailers. The traditional market has unfavorable positions in this competition because even though majority of Indonesian people shop at traditional retailer but the growth are slow, sales value share and number of traditional market keeps decreasing, and people’s shifting preference to modern retailers. The objective of this research is to find factors affecting customer loyalty towards customer loyalty to traditional market in Cikarang, Indonesia. The population in this research are people who lives in Cikarang and had experience shopping in both traditional market and modern retailer. Judgmental sampling is used in this research. The number of respondents are 384 people. Data are gathered through google drive and direct interview by using questionnaires which are analyzed with SEM. This research is limited on Cikarang area only. The results are perceived service quality has significant influence to trust and customer satisfaction. Customer satisfaction has significant influence to trust, but perceived service quality, trust, and customer satisfaction does not have significant influence to customer loyalty. Switching cost has significant influence to customer loyalty.