Title: THE IMPACT OF ELECTRONIC WORD OF MOUTH, PRICING, SERVICE QUALITY ON TRUST AND ITS IMPLICATIONS ON CUSTOMER LOYALTY: AN EMPIRICAL STUDY ON HAJJ AND UMRAH SERVICE PROVIDERS IN DKI JAKARTA
Authors:
SUBAEBASNI, Nandan Limakrisna and Wilhelmus Hary Susilo*
Abstract:
The aim of this research was to investigate and assess the impact of electronic word of mouth, pricing, service quality, and consumer trust on customer loyalty in Hajj and Umrah Organizing Companies in DKI Jakarta. The study was explanatory, descriptive, and confirmed in nature, utilizing a causality approach and employing a survey method for data collection. The research population consisted of 106,525 customers of Hajj and Umrah Organizing Companies in DKI Jakarta, with a sample size of 398 respondents selected through proportional random sampling. Data was gathered through questionnaires, and data analysis was conducted using Structural Equation Modeling (SEM) with SPSS and Lisrel software. The first structural equation analysis revealed that electronic word of mouth, pricing, and service quality, both individually and collectively, had a positive and significant impact on consumer trust, explaining 57% of the variance. Service quality emerged as the dominant factor influencing consumer trust. The second structural equation analysis demonstrated that electronic word of mouth, pricing, service quality, and consumer trust, both partially and simultaneously, had a positive and significant effect on customer loyalty, explaining 88% of the variance. Consumer trust was identified as the dominant factor influencing customer loyalty. Furthermore, consumer trust not only played a crucial role in influencing customer loyalty but also acted as a full mediating variable for electronic word of mouth, pricing, and service quality in impacting customer loyalty. The study suggests that enhancing consumer trust should prioritize improving service quality, particularly focusing on the physical evidence dimension, such as physical facilities, to boost customer loyalty, with a specific emphasis on the integrity dimension and work requirements.
Keywords: Electronic Word of Mouth, Pricing, Service Quality, Consumer Trust, Customer Loyalty.
PDF Download