Service quality and supply chain value on customer loyalty: The role of customer relationship management

Intense business competition urges companies to continually enhance their marketing strategies to retain and attract customers. Therefore, a profound understanding of factors influencing customer loyalty becomes crucial. Service quality, customer satisfaction, and supply chain value are considered key factors affecting customer loyalty. However, the relationships between these variables and the role of Customer Relationship Management (CRM) as a mediator need further investigation, especially in the context of Indonesian companies. Hence, this research aims to contribute a deeper understanding of the interconnection between service quality, customer satisfaction, supply chain value, and customer loyalty, as well as to explore the role of CRM as an essential link in this dynamic. The research methodology employed is quantitative, utilizing a Likert scale questionnaire distributed online to managers and employees in the automotive sector listed on the Indonesia Stock Exchange (IDX). Out of 400 distributed questionnaires, 261 were successfully collected, with 14 incomplete responses, resulting in a final sample size of 247. Data collection took place from June to August 2023. In data analysis, the study applied the Structural Equation Modeling (SEM) approach using the SmartPLS analysis tool. The research findings indicate that service quality significantly influences CRM, while it does not have a direct significant impact on customer loyalty. Customer satisfaction significantly affects both CRM and customer loyalty. Supply chain value significantly influences CRM but does not have a direct impact on customer loyalty. Customer Relationship Management proves to mediate the relationships between service quality and customer loyalty, customer satisfaction and customer loyalty, as well as supply chain value and customer loyalty.