International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Vol. 7, Issue 2, pp: (612-621), Month: October 2019 - March 2020, Available at: www.researchpublish.com
The Influences of Brand Image and Perceived Value on Satisfaction to Improve Customer Loyalty I Gusti Agung Ayu Intan Fatmayoni1, Ni Wayan Sri Suprapti2 1,2
Faculty of Economics and Business
1,2
Udayana University, Denpasar, Indonesia
Abstract: The Intense competition among cosmetics industry requires companies to adopt appropriate marketing strategies to compete with competitors and win the market. This research was conducted to explain the effect of brand image and perceived value on satisfaction to increase customer loyalty both and explain differences in the level of satisfaction and loyalty of cosmetic users based on religious segments. This research was conducted in Denpasar City and Badung Regency. The number of sample was 160 respondents. Purposive sampling was selected as sampling method. Data collection was obtained from the results of questionnaires using a five-point Likert scale that was used to measure 16 indicators using the PLS analysis method. The results showed that there was a significant positive effect on brand image and perceived value on satisfaction to increase customer loyalty, customer satisfaction mediated the influence of brand image and perceived value on customer loyalty, and there were differences in the level of satisfaction and loyalty of cosmetic users based on religious segments. The theoretical implication of this research is the results of this study can enrich references to consumer behavior in marketing, especially on the perception of increasing customer loyalty. Brand image, perceived value and customer satisfaction directly and positively and significantly influence customer loyalty. Customer satisfaction also plays a role as a mediating variable in the relationship of the influence of brand image and perceived value on customer loyalty. In addition, the results of this study also strengthen the results of previous studies related to Wardah cosmetics. The practical implication of this research is that this research can be used as a model for evaluating strategies at PT. Paragon Technology and Innovation as a company that manufactures Wardah on brand image, perceived value, satisfaction and customer loyalty. Keywords: Brand Image, Perceived Value, Customer Satisfaction, And Customer Loyalty.
I. INTRODUCTION Women are regarded as creatures who love beauty. The tendency of women who want to look beautiful every day and become the center of attention, makes women happy to beautify themselves by using good cosmetics with powder on the face to lipstick on the lips. The use of lipstick are considered the most important for most women because the lips are also a center of attention. This is used as an opportunity for cosmetics manufacturers to develop their business opportunities. The world's population is now beginning to focus on the halal make up trend, especially Indonesia, which can be said to be the majority of the population is Muslim. The halal cosmetics phenomenon is something new. The easiest understanding of this trend is beauty products that are in accordance with Islamic law in the production process or its contents. The best known, the product does not contain pork and pork oil which is usually used in lipstick. Some quotes from the official website of Wardah Cosmetics (www.wardahkosmetik.com) state that Wardah Products are pure and safe products, they contain safe and halal raw materials, created to create a sense of security for its users. Wardah unites the latest technological concepts by promoting quality, safe, and natural raw materials. Supervised carefully and continuously by experts in the field of cosmetics in the production process. Before a Wardah product is sold in the market, an experiment called a blind test is conducted to ensure that the product being sold is safe. Wardah also claims that his company is a beauty expert.
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