Case Study: The Influence of Customer Satisfaction, Trust, Switching Barrier and Relationship Bond to Customer Loyalty of Professional Services Company: An Empirical Study on Independent Surveyor Services Industry in Indonesia
IntroductionThe Indonesian Government has signaled the immediate open for vast market for foreign surveyor companies to operate their business in the country enabling more inspection service providers to be welcomed for foreign investors. This policy would inevitably increase competition in independent service market in Indonesia including independent surveyor service providers in coal exporting business.In relation to that, the role of independent surveyor service for coal exporting business would also strengthen so that it is important to perceive customer's point of view in order to maintain the relation with the service providers. Related to this issue, adopting relationship marketing strategy may play crucial part for business achievements in the future1.Previous researches have also shown that relationship marketing in B2B industries, particularly professional service providers, has displayed complex issues regarding relationship building process between the service providers and their clients in maintaining a long term relationship2.In addition, the outcomes from relationship marketing include customer loyalty. Based on the phenomenon, this research, therefore, aims:1. to identify and examine the role played by the variables of customer satisfaction, trust, switching bamers and relationship bonds in the relationship between professional service providers and their clients and2. to develop or improve relationship marketing model illustrating the relation among the variables on customer loyalty.Review of Literature and Hypothesis DevelopmentRelationship marketing is a new marketing paradigm shifting from focus on acquisitions /transactions to focus on retentions/relations. It is also perceived as a business model making the customers as a partner and the company must rely on a long term commitment to maintain the customers with quality, service and innovation by focusing on preserving and improving their relationship with the acquired customers instead of only acquiring new ones' For the similar idea, in many B2B relationships of service companies, sale achievements are not entirely the company's marketing efforts but more than that, it is to build a sustainable long term relationship with the customers that become the priority in guaranteeing sales in the future4. Professional service providers and clients are required to have a continuous force to improve their relationship5.Prior to the mentioned ideas, the service providers must not only understand the dimension of the problems, but also propose solution for them; therefore, service providers are expected to own the ability of solution transfer to maintain customer loyalty6. Loyalty, initially, is described in uncomplicated term as repeat purchase and it is included as behavioral loyalty. However, different approach is then introduced with the concept of attitudinal loyalty reflecting the better and more advanced concept of loyalty. The strategy of word of mouth (WOM) is considered to be the principal element in indicating an intensive loyalty7. Only customers with strong relationship with the providers would risk their own reputation to give referral. Behavioral loyalty alone not followed by attitudinal loyalty does not necessarily illustrate the true loyalty8. Before them, the main goal of an organization is to acquire customers into loyal ones9, then loyal customers may be created, strengthened and maintained through a marketing plan10. In relation to researches and attention on this issue, they noted that though interest in the topic of loyalty has gradually increased, investigations on antecedents of customer loyalty in the context of B2B service are still limited".In the issue of customer loyalty, it is not only related to commitment but also influenced by their satisfaction and trust8. In their respective researches, many researcher have proven that in service industry, trust is mainly affected by customer satisfaction12.