THE EFFECT OF RELATIONSHIP MARKETING IN INDONESIAN COSMETICS MARKET

Abstract

Purpose: The success of a business distributor is closely associated with its customers, so that customer satisfaction and loyalty should be maintained well. This research aims to clarify whether there’s a significant effect between relationship marketing and corporate image on customer satisfaction and its impact on customer loyalty in the Cosmetics Company. Methodology: This research is a quantitative, design with an associative descriptive study, to provide an overview of the effect between variables to be studied to test the hypothesis that has been established through a questionnaire survey. The population in this study is 54 retailer customers from Cosmetics Industry. The collected data were processed using the method of Partial Least Square (PLS) using software Warp PLS 5.0. Result: Results showed that there is a significant effect between relationship marketing on customer satisfaction, and between customer satisfactions on customer loyalty. But there is no significant effect of corporate image on customer satisfaction. Furthermore, there is a significant indirect effect between relationship marketing on customer loyalty through customer satisfaction. However, there is no significant indirect effect between corporate images on customer loyalty through customer satisfaction. Applications: This research can be used for universities, teachers, and students. Novelty/Originality: In this research, the model of the -- is presented in a comprehensive and complete manner.