Influence of Customer Relation Management, Service Quality on Customer Trust
Abstract
Objective: Technological developments and increasing living standards make people aware of the importance of a service. The development of Small and Medium Industries is closely related to the Ministry of Industry, especially business licenses. The Ministry of Industry as a public service should always improve the services provided to the community. This research was carried out in Small and Medium Industries as users of the Ministry of Industry's Public Center Service Unit.
The purpose of the study is to determine the effect of customer relationship management, service quality and trust in Small and Medium Industries partially, simultaneously and its implications on customer trust in the Central Public Service Unit of the Ministry of Industry.
Methodology: The problem is formulated in 3 hypotheses and tested by Structural Equation Modeling (LISREL 8.30) with 350 respondents. Findings: It is concluded that Hypothesis one (H1) Customer Relationship Management has a positive effect on customer trust, has a value of t>2 (3.57> 2). The influence of Customer Relationship Management on customer trust is 0.39. The second hypothesis (H2) Service Quality has a positive and significant effect on customer trust, the value of t>2 (2.32>2) and if service quality is improved, customer trust in the Ministry's Central Public Service Unit will increase by 22%. The third hypothesis (H3) Customer Relationship Management (CRM) and Service Quality simultaneously have a positive and significant effect on customer trust, the value of t > 2 (7.12> 2) and the magnitude of the effect is 0.71.
Implications: The Central Public Service Unit of the Ministry of Industry should provide maximum service so that consumers become loyal customers.
Downloads
Article Analytics Summary
References
Ahuja, M., Mahlawat, S., & Masood, R. Z. (2011). Study of service quality management with SERVQUAL model: An empirical study of Govt/Ngo’s Eye Hospitals in Haryana. Indian Journal of Commerce & Management Studies, 2(2), 310–318.
Alipour, M., & Mohammadi, M. H. (2011). The Effect Of Customer Relationship Management (CRM) On Achieving Competitive Advantage Of Manufacturing Tractor. Global Journal of Management and Business Research, 11(5), 27–36. Retrieved from https://globaljournals.org/GJMBR_Volume11/5-The-Effect-Of-Customer-Relationship-Management.pdf
Amoako, G. K., Arthur, E., Bandoh, C., & Katah, R. K. (2012). article1379924779_Amoako et al.pdf>, 4(January), 17–29. https://doi.org/10.5897/AJMM11.104
Ananth, A., Ramesh, R., & Prabaharan, B. (2011). Service Quality Gap Analysis in Private Sector Banks-A Customers Perspective. Indian Journal of Commerce & Management Studies, 2(1), 245–252.
Basahel, S. (2016). The Effect of Organisational Culture and Leadership on CRM Implementation in Saudi Arabian organisations. Phd Thesis. Retrieved from http://ethos.bl.uk/OrderDetails.do?did=5&uin=uk.bl.ethos.699270
Bondarenko, V. A., Kalieva, O. M., & Pisareva, E. V. (2018). Marketing Management of the Territory in the Aspect of the Regional Brand Formation, XXI(2), 72–78.
Das, S. K. (2012). Customer Relationship Management in Banking Sector: a Comparative Study of Sbi and Other Nationalised Commercial Banks in India. Journal of Economics and Management, 1(6). Retrieved from http://www.pinnaclejournals.com
Duńu, C., & Hălmăjan, H. (2011). The Effect of Organizational Readiness on CRM and Business Performance. International Journal, 5(1), 106–114.
Farichah, F. (2017). Management compensation and auditor reputation on earnings management and on share returns. European Research Studies Journal, 20(3), 196–208. DOI: https://doi.org/10.35808/ersj/704
Gautam, S., & Singh, A. (2014). “ To Identify Service Quality Gaps in Banking Sector : A Comparative Study of Public Sector Banks and Foreign Banks ,” 6(5), 439–444.
Gilaninia, S., & Mousavian, S. (2011). Comparative study of relationship marketing in public and private banks. … Research in Business, 508–515.
Grima, S., Grima, A., Thalassinos, E., Seychell, S., & Spiteri, J. V. (2018). A study of the determinants of sports participation by maltese nationals. European Research Studies Journal, 21(2), 110–133. DOI: https://doi.org/10.35808/ersj/989
Havlíček, K., Břečková, P., & Zampeta, V. (2014). Quality management as a part of CRM. European Research Studies Journal, 16(4), 15–28. DOI: https://doi.org/10.35808/ersj/400
Huei, C. T., & Easvaralingam, Y. (2011). Perceptions of Service Quality , Corporate Image and Customer Loyality in the Hotel Industry of Malaysia. The 2nd International Research Symposium in Service Management, (July), 26–30. Retrieved from http://ehis.ebscohost.com/
Ida Aju Brahmasari, H., Dipl, D., & Panjaitan, H. (2016). The Influence of Service Quality, and Customer Relationship Management (CRM) Of Patient Satisfaction, Brand Image, Trust, and Patient Loyalty on Indonesian National Army Level II Hospitals. International Journal of Business and Management Invention ISSN (Online, 5(5), 2319–8028. Retrieved from www.ijbmi.org
Killa, M. F. (2017). A Study on Product Innovation Portfolio and Customer Value Creation : Bridging Entrepreneurial Risk-Taking Orientation and Marketing Performance, 2, 80–89.
Kurniati, R. R., Arifin, Z., Hamid, D., & Suharyono. (2015). The Effect of Customer Relationship Marketing (CRM) and Service Quality to Corporate Image, Value, Customer Satisfaction, and Customer Loyalty. European Journal of Business and Management, 7(11), 1–14.
Mahanani, P. A. R. (2017). Customer Relations Management sebagai Salah Satu Upaya Public Relations Perusahaan Jasa Perbankan Menciptakan Good Image. Jurnal ASPIKOM, 1(6), 551. https://doi.org/10.24329/aspikom.v1i6.58 DOI: https://doi.org/10.24329/aspikom.v1i6.58
Navickas, V., & Navikaite, A. (2014). Methodological Aspects of Customer Satisfaction: Measurement and Models. International Journal of Arts and Commerce International Journal of Arts and Commerce ISSN, 3(8), 1929–7106. Retrieved from www.ijac.org.uk
Nawaz, M. (2016). Service Quality in Public and Private Hospitals in Pakistan : An Analysis Using SERVQUAL Model, 4(1), 13–25.
Oogarah-Hanuman, V., & Visvanathan Naicker, P. (2016). Developing a CRM conceptual framework for the Mauritian Hotel Industry. African Journal of Hospitality, Tourism and Leisure, 5(2), 1–14. Retrieved from http//:www.ajhtl.com
Orynbekova, G. A., Kopylova, O. V, & Valieva, M. M. (2018). Peculiarities of Development of Innovative Enterprises in Kazakhstan, XXI(4), 331–342. DOI: https://doi.org/10.35808/ersj/1124
Reinartz, W., Krafft, M., & Hoyer, W. D. (2012). Process : Its Relationship Management Measurement and. Journal of Marketing, 41(3), 293–305. DOI: https://doi.org/10.1509/jmkr.41.3.293.35991
Saidani, B. (2017). THE INFLUENCE OF PERCEIVED QUALITY , BRAND IMAGE , AND EMOTIONAL VALUE TOWARDS PURCHASE, 8(1), 1–19. DOI: https://doi.org/10.21009/JRMSI.008.1.01
Sarwar, M. Z., Abbasi, K. S., & Pervaiz, S. (2012). The Effect of Customer Trust on Customer Loyalty and Customer Retention: A Moderating Role of Cause Related Marketing. Global Journal of Management And Business, 12(6), 26–36.
Saxena, R. P., & Khandelwal, P. K. (2016). Exploring Customer Perception and Behavior towards CRM Practices in Banking Sector: An Empirical Analysis. The International Journal of Interdisciplinary Social Sciences: Annual Review, 5(9), 375–392. https://doi.org/10.18848/1833-1882/cgp/v05i09/51879 DOI: https://doi.org/10.18848/1833-1882/CGP/v05i09/51879
Setyaningrum, R. P. (2017). Relationship between servant leadership in organizational culture, organizational commitment, organizational citizenship behaviour and customer satisfaction. European Research Studies Journal, 20(3), 554–569. DOI: https://doi.org/10.35808/ersj/728
Srinita. (2018). The effect of service quality and marketing mix strategy towards local sustainable economic growth. European Research Studies Journal, 21(1), 272–284. DOI: https://doi.org/10.35808/ersj/946
Sriyana, J., Prabowo, H. Y., & Syamsudin, M. (2017). Preventing corruption in the Indonesian public sector. European Research Studies Journal, 20(3), 538–553. DOI: https://doi.org/10.35808/ersj/727
Sugiyanto, Armanu, A., Rofiaty, R., & Noermijati, N. (2017). The effect of transformational leadership, organizational learning capabilities and innovation on competitive advantage: A study on MSEs under CSR program of PT Telkom regional II, Jakarta-Banten, Indonesia. International Journal of Economic Research, 14(18), 349–366.
Suryanto, T. (2016). Audit delay and its implication for fraudulent financial reporting: A study of companies listed in the Indonesian Stock Exchange. European Research Studies Journal, 19(1), 18–31. DOI: https://doi.org/10.35808/ersj/503
Suryanto, T., & Ridwansyah, R. (2016). The Shariah financial accounting standards: How they prevent fraud in islamic banking. European Research Studies Journal, 19(4), 140–157. DOI: https://doi.org/10.35808/ersj/587
Thalassinos, I. E., Havlíček, K., & Berezkinova, L. (2012). Innovation Management and Controlling in SMEs. European Research Studies Journal, XVI.
Velinov, E. (2018). Diversity management in the pharmaceutical industry in central and Eastern Europe. European Research Studies Journal, 21(2), 236–243. DOI: https://doi.org/10.35808/ersj/931
Wahab, S., Mohd Zahari, A. S., Momani, K. Al, & Mohd Nor, N. A. (2011). The influence of perceived privacy on customer loyalty in mobile phone services : An Empirical Research in Jordan. International Journal of Computer Science Issues, 8(2), 45–52.
Yousapronpaiboon, K. (2013). A Comparison of Service Quality between Private and Public Hospitals in Thailand. International Journal of Business and Social Science, 4(11), 176–184.
Zuchowski, I., & Brelik, A. (2017). The relationship of managers with subordinates as a development enabler of enterprise in the SME sector. European Research Studies Journal, 20(4), 51–65. DOI: https://doi.org/10.35808/ersj/819
Copyright (c) 2022 Haswan Yunaz, Ruswiati Suryasaputra, Muliyati Muliyati
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
CSRC Publishing and JBSEE adhere to Creative Commons Attribution-Non Commercial 4.0 International License. The authors submitting and publishing in JBSEE agree to the copyright policy under creative common license 4.0 (Attribution-Non Commercial 4.0 International). Under this license, the authors published in JBSEE retain the copyright including publishing rights of their scholarly work and agree to let others remix, tweak, and build upon their work non-commercially. All other authors using the content of SBSEE are required to cite author(s) and publisher in their work. CSRC Publishing and JBSEE follow an Open Access Policy for copyright and licensing.
