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Research Paper

Year: 2019 | Month: August | Volume: 6 | Issue: 8 | Pages: 139-163

Effect of Service Quality of Distributors on Loyalty Through Relationship Quality to Retail As Intervening Variables (Study on Anlene Retail in the South Medan Region)

Pradita Yugantara1, Dr. Endang Sulistya Rini2, Dr. Arlina Nurbaity Lubis2

1Postgraduate Students Department of Management, Faculty of Economics and Business at University of North Sumatera, Indonesia
2Postgraduate Lecturer Department of Management, Faculty of Economics and Business at University of North Sumatera, Indonesia

Corresponding Author: Pradita Yugantara

ABSTRACT

The increasingly competitive competition in the milk processing industry, requires Anlene milk producers by PT Fronterra Brands Indonesia to create strategies and innovations to win the competition. One effort is carried out by implementing a distribution channel effectiveness strategy through cooperation between members of the supply chain to maximize the marketing reach and map potential markets. In order to maximize supply chain performance and productivity, PT Fronterra Brands Indonesia cooperates with PT Singa Asia Perkasa Utama Distributor to maintain the synergy of distribution channels. To support these efforts, distributors are required to implement good distribution services and maintain quality relationships in the exchange of relational interactions with retailers so that strong customer loyalty will provide good performance for the company. The purpose of this study was to find out and analyze the influence of distributor service quality on loyalty through the quality of relationships to Alfamart Retail in the South Medan Region. This type of research is conclusive research and the nature of research is explanatory research. The population in this study is Alfamart Retail PT Singa Asia Perkasa Utama in the South Medan Region. The number of samples in this study were 139 retail. The sampling technique used is nonprobability sampling and the type of sampling technique used is saturated sampling. The method of data collection was done through questionnaires, interviews, and documentation studies. The method of data analysis is done by Stuctural Equation Modeling (SEM) using AMOS 20. The results showed that the Service Quality Distributor has a positive and significant effect on the Quality of Relationships, Relationship Quality has a positive and significant effect on Loyalty, Service Quality Distributors have a positive and significant effect on Loyalty, and Service Quality Distributors have a positive and significant effect on Loyalty through the Quality of Relationships to Alfamart Retail in the South Medan Region which proves that Relationship Quality is an intervening variable in this study.

Key words: Distributor Service Quality, Relationship Quality, Loyalty

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