THE EFFECT OF CORPORATE IMAGE AND SALES PROMOTION ON CUSTOMER LOYALTY (A CASE STUDY OF CARREFOUR IN CIKARANG)

Abstract

In today’s competitive business world, customers are considered to be kings. Customers have several choices to make among alternative products, and they exercise a high level of influence in the market with respect to product size, quality and price. Hence, it is important for producers to meet the needs of customers in order to stay competitive. One of the marketing communication tools that is used in attracting the attention of the customer and build their loyalty is sales promotion, and the other factor that may affect customer loyalty is corporate image.

The research is conducted in Jababeka, Cikarang, Bekasi. In the specific area, there are so many similar retail stores, such as, Carrefour, Alfamart, Giant, Indomart and so on. The competition level is very intensive. In order to survive, the retailers must know how to improve customer loyalty.

The aim of this research therefore is to determine the effect of sales promotion and corporate image on customer loyalty in retail. In the research, the study method used in gathering information from the respondents was through questionnaire. Simple random sampling was used to select a sample size of 60, while descriptive and inferential statistical analyses are conducted with the aid of SPSS software.

Like many other organizations, retailers like Carrefour spends a large part of their total marketing expenses on sales promotion and corporate image building. Hence, the research attempts to find the effect of sales promotion and corporate image on customer loyalty using a sample of customers of students from a single university. The research finds out that, corporate image and sales promotion have positive effects on customer loyalty.