Developing New Marketing Strategy to Enhance Customer Loyalty at the Boarding House in Palembang City, South Sumatra

Authors

  • Muhammad Rifky Alfandi Institut Teknologi Bandung (Jakarta Campus), Indonesia
  • Manahan Parlindungan Saragih Siallagan Bandung Institute of Technology, Indonesia
  • Wulan Asti Rahayu Bandung Institute of Technology, Indonesia

DOI:

https://doi.org/10.31098/ijeass.v3i2.1821

Keywords:

Brand Image, Service Quality, Customer Relationship Management (CRM), Customer Satisfaction, Customer Loyalty

Abstract

The hospitality business is one of the world’s largest and fastest-growing industries, with many sub-sectors, such
as hotels, restaurants, and resorts. However, some boarding houses in Palembang City, South Sumatra, are
experiencing a shortage of monthly room occupants, particularly between August and December 2022. The
objective of this study is to investigate whether it is brand image, customer satisfaction, or customer relationship
management (CRM) that influences customer satisfaction and customer loyalty towards boarding house
residents in Palembang City, South Sumatra, to control and increase the monthly room occupants, especially from
August until December 2022. Hopefully, this issue will never happen again. The study uses quantitative
methodology research to utilize a structural equation modeling approach using Partial Least Square. The study
included 128 respondents undertaking activities in Palembang, South Sumatra, and staying in a boarding house.
According to the findings of this study, brand image has a negative association with customer satisfaction, but
service quality and customer relationship management (CRM) have a positive association with customer
satisfaction. Furthermore, it was shown that customer satisfaction has a favorable association with customer
loyalty. Consequently, if they wish to encourage customer satisfaction and customer loyalty to the boarding
house, they must improve service quality and customer relationship management (CRM).

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Published

December 28, 2023

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How to Cite

Alfandi, M. R. ., Siallagan, M. P. S., & Rahayu, W. A. (2023). Developing New Marketing Strategy to Enhance Customer Loyalty at the Boarding House in Palembang City, South Sumatra. International Journal of Entrepreneurship and Sustainability Studies, 3(2), 80–94. https://doi.org/10.31098/ijeass.v3i2.1821

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