Journal of Consumer Sciences DOI: https://doi.org/10.29244/jcs.6.2.

111-128
2021, Vol. 06, No. 02, 111-128 E-ISSN: 2460-8963

Analysis of Consumer Satisfaction and Loyalty Factors with CRM

Approach in Agribusiness E-commerce Company

Iqra Rizky Goranda1*), Popong Nurhayati2, Megawati Simanjuntak3

1,2
School of Business, IPB University, Bogor 16151, Indonesia
3
Department of Family and Consumers Science, Faculty of Human Ecology, IPB
University, Darmaga, Bogor 16680, Indonesia
*
Corresponding author: iqrarizky2195@gmail.com

Abstract

XYZ e-commerce is a company that sells an agricultural product that draws benefits from the
COVID-19 pandemic. The purpose of this research was to analyze CRM factors, satisfaction,
and consumer loyalty. This study using quantitative research selected with convenience
sampling. The online survey applied toward 232 respondents who were unsatisfied with the
service in Jabodetabek and processed using Structural Equation Model (SEM). Based on the
SEM results, it was found that CRM has a significant effect on consumer satisfaction and
consumer satisfaction with consumer loyalty. In contrast, CRM has no significant effect on
consumer loyalty. This research concluded that XYZ needs to become a company that makes it
easy for consumers, is professional, reliable and trustworthy. However, efforts need to be made
to improve the relationship between criticism and suggestions, communication and providing
information, regulating product availability, delivery time, and saving consumer costs—the
results of this research results are expected to increase satisfaction and loyalty through the CRM
approach.

Keywords: consumer loyalty, consumer satisfaction, customer relationship management (CRM),

structural equation model (SEM)

Abstrak

XYZ e-commerce adalah perusahaan yang bergerak menjual produk pertanian yang
diuntungkan dengan adanya pandemi COVID-19. Tujuan dari penelitian ini adalah untuk
menganalisis faktor CRM, kepuasan, dan loyalitas konsumen. Studi ini menggunakan riset
kuantitatif menggunakan dan dipilih dengan convenience sampling. Data didapatkan dengan
menggunakan online survei dan mendapatkan 232 responden yang tidak puas dengan jasa di
Jabodetabek dan diolah lanut dengan Structural Equation Model (SEM). Berdasarkan hasil SEM
diketahui bahwa CRM berpengaruh signifikan terhadap kepuasan konsumen dan kepuasan
konsumen terhadap loyalitas konsumen. Sebaliknya, CRM tidak berpengaruh signifikan
terhadap loyalitas konsumen. Implikasi manajerial pada penelitian ini adalah XYZ harus
menjadi perusahaan yang memudahkan konsumen, profesional, dapat diandalkan dan dipercaya.
Namun ada yang harus diperbaiki dari aspek hubungan kritik dan saran, komunikasi dan
pemberian informasi, mengatur kesediaan produk, waktu pengiriman dan dapat menghemat
biaya kosnumen. Hasil penelitian ini diharapkan dapat meningkatkan kepuasan dan loyalitas
melalui pendekatan CRM.

Kata kunci: kepuasan komsumen, loyalitas konsumen, manajemen hubungan pelanggan

(CRM), model persamaan hubungan (SEM)

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Introduction

COVID-19 is a disease that causes activities such as traditional markets to become

vulnerable. This activity's delay is due to government policies of restrictions on the
social scale (PSBB). As a result, traditional markets become eluded public
places. According to BPS (2020), it can be seen that traditional markets are the lowest
in areas of implementation of health protocols. Since April 2020, there was 46% in
grocery spending, particularly in online shopping. PT XYZ's e-commerce also feels this
development.
The business world has also begun to change its goal from production-oriented to
customer-oriented. The characteristic of customer-oriented is to prioritise the value
provided by the company against its products. Companies must show their consumers
that the value specified, quality of service, price, promotion, and trust are the ones
desired by consumers. Therefore, it makes an excellent profound marketing approach to
build relationships between consumers and companies, namely Customer Relationship
Management (CRM). Customer relationship management (CRM) is a marketing
approach taken by retaining old customers and finding new customers. Relationship
upkeep helps build long-term and profitable customer relationships (Dawes, 2009;
Buttle, 2007). This is also reinforced by Soliman (2011), which mentioned CRM is a
critical approach because nearly 60% of businesses need CRM. This CRM approach
makes it easier for companies to make transactions faster and helps in increasing
satisfaction and then increasing consumer loyalty.
A study conducted by Hassan, Nawaz, Lashari, and Zafar (2014) that customer
relationship management has a significant effect on the consumer's positive relation. It
will the company's sales level cause the increase in organisational profit. This is because
the number of loyal consumers will increase. The same conclusion with research
conducted by Emaluta, Isnalita, and Soewarno (2019) indicates that CRM directly
affects consumer loyalty through consumer satisfaction. E-commerce XYZ is one of the
pioneers of e-commerce engaged in agribusiness in the sale of foodstuffs. This e-
commerce was founded in 2016 and is moving due to concerns over tiny farmers'
selling prices and too long trade routes. XYZ e-commerce stands to overcome these
concerns and make agribusiness distribution better. XYZ e-commerce also knows that
the relationship between companies and consumers is also significant.
The pre-research results showed the distrust of agribusiness e-commerce attains
70% of consumers complained. The complaints covered the services provided,
including delivery unreachable, defective or unavailable items, late delivery, minimum
shopping requirements, a higher price than the market price, and an error in the XYZ e-
commerce application. Based on the data above, there are 30% of respondents feel
dissatisfied. Dissatisfaction and distrust are still the problems of XYZ's e-commerce.
Pre-research also in the pandemic phase shows an increase in the number of new users
by 64%, with the duration of application usage still under three months. Due to the "new
normal" during the pandemic, there was increasing application usage, forcing
consumers to switch from offline to online purchases. The increasing of new users is an
opportunity for XYZ's e-commerce as a second-leading agribusiness application.
According to data also, the respondents feel dissatisfied it can be said that low. So, if
this dissatisfied respondent feels otherwise, XYZ e-commerce can grab the whole
market share.

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Figure 1 Types of XYZ e-commerce consumer complaints

One of the solutions for dissatisfaction is CRM. CRM strategy is a marketing

strategy right to solve the problem. A successful CRM implementation can pay off
many benefits for the company (Brenski, 2015). The main advantage of CRM was
reducing costs, intellectual property, product customisation, sales forecasting, brand
equity, and profits. The brand increasing is noticeable by the number of consumers who
feel satisfied, loyal, and recommend the company brand. A good CRM strategy will
increase purchase interest, reaction to favourable prices, brand development, and
preference for the brands purchased (Ghazian, Hossaini & Farsijani, 2016). The urgency
of this research is mainly due to the increasing using the application. How to e-
commerce XYZ can be increasing satisfaction and eventually can grab trust from
audiences.
Based on the above phenomenon and previous studies, CRM can affect consumer
satisfaction and loyalty. This makes research aimed at (1) identify what factors can
make audiences satisfaction dan loyalty of e-commerce XYZ, (2) analyze the
relationship between the characteristics of the audience with satisfaction, (3) analyze the
relationship between the variables and 4) Give an implication managerial that can be
used for XYZ e-commerce agribusiness.
The contribution to knowledge that is expected to be obtained is (1) evaluation
and improvement for the company and investigate the relationship between CRM,
consumer satisfaction, and loyalty for e-commerce consumers XYZ is not satisfied.
Furthermore, (2) become a reference for the researcher who will conduct studies in
consumer behaviour, especially in customer relationship management, consumer
satisfaction and consumer loyalty. This research was quite different from the previous
research regarding the research object that focused on agribusiness e-commerce.

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Literature Review

Customer Relationship Management (CRM)

CRM is the most crucial concept in modern marketing. The definition of CRM is
a building process and build relationships with customers in creating value and
satisfaction (Kotler and Keller, 2016). There are four factors in CRM success, namely
human resources, process, technology, and knowledge (Gordon, 2002). Darvish,
Kafashzadeh, and Ahmadnia (2012) defined that CRM as a consumer-focused
managerial strategy that builds long-term profitable customer relationships. CRM
strategy, including marketing, operations, sales, customer services, human resources,
finance, and information technology, and CRM implementation is customer-centric
(Vasiliu, 2012).
According to Rahayu, Kifti, Informasi, and Royal (2018), managing CRM
properly is important because CRM is one way to maintain customer loyalty with a
certain brand or product. In the concept of CRM, there are several phases. These phases
are acquisition, enhancement and retention. The acquisition is an activity to offer
various products tailored to consumers' needs or desires, offering the product on
consumer experiences and providing the best services to create consumer satisfaction.
Enhancement is the form of activities carried out to increase product sales, sales to
customers, and prospective customers. Finally, retention is used to obtain customer
information and provide product offerings (Dewa & Setyohadi, 2017).
Khedkar conducts some research (2015) that mentioned that an effective CRM
would lead to consumer satisfaction. If consumers are satisfied, it will lead to decent
word of mouth and loyalty, thus making business superior and creating increased profits
and income. Moreover, Victor, Rotinsulu, and Jacky (2015) showed a significant
relationship with consumer satisfaction. CRM also significantly impacts CRM toward
consumer loyalty (Setyaleksana, Suharyono & Yulianto, 2017). For some of that
explanation, it concluded that CRM is a marketing strategy that aims a good relationship
between the company and its customers to easily explore information about customers
needed and maximise that to increase customer satisfaction and eventually affect
customer loyalty.

Consumer Satisfaction
Consumer satisfaction is a feeling of pleasure to disappointment from comparing a
brand's service, product, or performance. Satisfaction is sensed when services, products,
or performance has exceeded consumer expectations (Kotler and Keller, 2016). It can
also result from consumers feeling about company performance in meeting customer
expectations, and customers can feel that their expectations are fulfilled (Soegoto,
2013). Customers are expected to get 4C's of satisfaction, namely customer needs,
convenience, cost and communication, and hope to become loyal. The higher the level
of customer satisfaction, the higher customer loyalty.
Customer satisfaction can be achieved through CRM. According to Supar,
Suasana, and Ketut (2017), CRM is focused on long-term and sustainable relationships
that can positively impact consumer satisfaction. In addition, Lestari and Suwitho
(2018) said that consumers satisfaction could not be separated from the relationship
between the expectation received. According to Smith and Chang (2010), consumer

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satisfaction indicators are product quality, service quality, product innovation, and
brand image.
There is some research conducted by Setyaleksana et al. (2017) noted that
consumer satisfaction had a significant and positive influence, and then satisfaction
would lead to loyalty (Khedar, 2015). For some of that explanation concluded that
consumer satisfaction is the feeling of consumers expectation is fulfilled. CRM is one
way to fulfil that expectation by looking at consumers' demands, customising that with
data, and creating satisfaction.

Consumer Loyalty
Consumer loyalty is the level of consumer loyalty toward goods or services to
consume or purchase regularly and becomes a habit binding (Engel, Blackwell &
Miniard, 1994). The characteristics of loyal consumers are rejecting goods or services
from other brands, making repeat purchases, buying products of the same brand, and
recommending products or services to others (Griffin, 2003).
Consumer loyalty is very important to the company because loyalty can maintain
the survival of the product or services. Loyal consumers have enthusiasts recommend to
anyone they know to use certain products or services (Yuliana, 2018). Iriandi and
Yulianto, and Mawardi (2015) conduct some research, found a significant relationship
between consumer satisfaction and loyalty. This was also illustrious by Khedar
(2015). Therefore, consumer loyalty can be influence by several factors, including
consumer satisfaction and one-way to get to that by using customer relationship
management.
Based on previous empirical research that has been previously described, it has
been found that there is a relationship between CRM, consumer satisfaction and loyalty.
This model's difference from the previous model is the dimension used in these
variables, mainly consumer experience through online buying. This research is different
from others because if we discuss CRM mainly for services, such as banking. This
description above can describe the framework of CRM, consumer satisfaction and
loyalty as presented in Figure 2.

Figure 2 Conceptual model

The hypotheses research of this study can be concluded as follows:

H1: CRM has a direct and positive effect on consumer satisfaction
H2: CRM has a direct and positive effect on consumer loyalty
H3: Consumer satisfaction has a direct and positive effect on consumer loyalty

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Methods

Participants
This study applied a quantitative approach to analyze CRM factors, consumer
satisfaction, and consumer loyalty. The sampling technique conveyed convenience
sampling as part of the non-probability sampling technique. This sampling technique is
done by choosing the easiest to provide the information needed and filling out a
questionnaire. It choose XYZ as sample because XYZ is more popular and increased the
number of users during this pandemic. The number of samples that met the criteria was
232 respondents out of 414 respondents. The criteria were consumers that bought at
least once on XYZ e-commerce, were 17 years old and experiencing dissatisfaction. The
data was collected through an online survey using Google Forms by sharing the
questionnaire link through advertising on Facebook and Google.

Measurement
The questionnaire in this study consisted of people, processes, technology and
knowledge for the variables of customer relationship management. The Cronbach's
Alpha value of this instrument was 0.6. There are four dimensions for satisfaction:
quality of product, service quality, innovative product, and brand image. The
Cronbach's Alpha value of this instrument was 0.6. These four dimensions are also for
loyalty consumers who are refuse, repeat purchase, reward and recommendation. The
Cronbach's Alpha value of this instrument was 0.6.
The Likert scale was applied for indicators with four-point of 1 (strongly
disagree), 2 (disagree), 3 (agree), and 4 (strongly agree) (Sumarwan, Hartoyo &
Fahmi, 2018). Before distributing the questionnaire, the validity and reliability were
tested. There are two kinds of variables used in this study, namely the dependent
variables, such as consumer satisfaction (Y1) and consumer loyalty (Y2), and the
independent variable, namely CRM (X). In this study, each variable has four
dimensions. Following is an explanation of the variables and dimensions in this study
shown in Table 1.

Table 1 Variables and indicators

Latent Definition Dimensions Definition Operational Indicators Variables
variable Operational (Symbol) (Symbol)
People Human is managing Professional (CRM11)
Customer
Process CRM1 relationships so it is Response (CRM12)
Relationship
build and needed personal touch Keep the relationship
Management
weave (CRM13)
(CRM)
relationship Process Process is system or Relations criticism and
with CRM2 that procedure done so suggestion (CRM21)
(Kotler &
customer in that relationship among Notice willingness product
Keller,
create score consumer and (CRM22)
2016),
and companies are getting Service easy (CRM23)
(Gordon,
satisfaction close and wide awake Service fast (CRM24)
2002)

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Table 1 Variables dan indicators (Continued..)

Latent Definition Dimensions Definition Indicators Variables
variable Operational (Symbol) Operational (Symbol)
Technology Technology used Application make it easier
CRM3 for speed up and purchase (CRM31)
optimising process Application corresponding
factors and man needs (CRM32)
on CRM activity Display application
Process
Customer (CRM33)
build and
Relationship Application make it easier
weave
Management access information
relationship
(CRM) (CRM34)
with
Knowledge Understanding the Have product knowledge
customer in
(Kotler & CRM4 right one will (CRM41)
create score
Keller, 2016), CRM program can Use database (CRM42)
and
(Gordon, 2002) be applied Engaging consumers
satisfaction
with good so that (CRM43)
goal destination Provide solutions
company easy for (CRM44) Communication
achieved. and providing information
(CRM45)
Quality product quality is Overall satisfied (KK11)
Product ability a product Top quality (KK12)
KK1 to show various Always available (KK13)
functions Lots its kind
including (KK14)
endurance, I did fulfil consumer desires
reliability, (KK15)
accuracy and
convenience in
usage
Quality Service quality the Overall satisfied (KK21)
service good is not just Best service
Evaluation KK2 answer consumer (KK22)
Customer
consumer to Innovation complaints but Delivery time
Satisfaction
product or product also can solve (KK23)
(KK)
deep KK3 problem will Packaged with good (KK24)
services, needs or desire is Useful promos
(Smith &
fulfill needs there after buy (KK25)
Chang, 2010)
and desire products or Saving time consumer
consumer service Innovation (KK26)
product is used Save cost shop (KK27)
by company to Corresponding with the
create new uses needs of the times present
has a function (KK31)
additional or e-commerce first that used
novelty (KK32)
Very effective in distribution
(KK33)
Payment options various
sorts (KK34)
Easy payment
(KK35)

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Table 1. Variables dan Indicators (continued…)

Definition Dimensions Definition Indicators Variables
Latent variable
Operational (Symbol) Operational (Symbol)

Brand brand image is the Using

Image response from e-commerce XYZ in
Customer
Evaluation KK4 consumers against buying online (KK41)
Satisfaction
consumer to brand, mark or Easy transaction and safe
(KK)
product or deep perception from (KK42)
services, fulfill belongs to from Reliable (KK43)
(Smith &
needs and desire individual to Could trusted (KK44)
Chang, 2010)
consumer products or Company image good
services. (KK45)
Provide value add (KK46)
Cost shop lower (KK47)
Refuse Show immunity Not interested in
LK1 from the lure a competitors (LK11)
Loyalty is
kind of competitor Continue becomes
level of loyalty
consumer (LK12)
consumer
It won't matter with that
with
offered by competitors
consume
(LK13)
or do
Loyalty Repeat To do purchase Buy more than one
purchase
Consumer (LK) Purchases online regular times (LK21)
repeatedly
(Griffin, 2003) LK2 Buy without promotion
continously
(LK22)
and become
Buy because quality
habit
(LK23)
(Engel et al.
Buy because
1994)
service (LK24)
Buy because innovation
(LK25)
Reward Buy a product or Can buy more than one
LK3 interline services product (LK31)
Like the promo
(LK32)
Rewards that make I
switched (LK33)
Recommend Referencing Recommending e-
ation product to other commerce XYZ (LK41)
LK4 people Telling experience (LK42)
Telling positive thing
(LK43)

Analysis
The analysis applied in this study was Structural Equation Models (SEM) with
LISREL 8.80. SEM analysis aimed to examine the relationship between variables. The
two steps in this analysis assess the measurement model and the structural model (Hair,
Black, Babin & Anderson, 2010). The measurement model was conducted to assess the
reliability and validity of the model. If the loading factor value is ≥ 0.5, the model can
be concluded to be valid. In contrast, for measurement reliability, if the construct
reliability value is ≥ 0.7 and the Average Variance Extracted (AVE) value is ≥ 0.5, it is
alleged that the model is reliable (Hair et al., 2010). After the measurement model, the
structural model measures several parameters such as chi-square, RMSEA, NFI, CFI,
RMR, RFI, GFI, and AGFI.

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Findings
Respondent Characteristics
Among 232 respondents, most of them are female (93.10%), married (73.28%),
and between 31 to 40 years (68.53%). The majority of respondents hold a bachelor's
degree (S1) (81.47%). Their professions consecutively were private employees
(43.97%), housewives (15.52%), and entrepreneurs (11.21%). Most respondents stay in
Jakarta (41.38%) with more than three million rupiahs of income and expenses. The
frequency of purchases is between 3 to 5 times and less than three times per month. The
average money spending to purchase is between Rp. 100.000 to Rp. 349.000 (58.62%).
The most frequent products they bought are vegetables (43.10%).

Satisfaction Level Based on Consumer Characteristics

Based on Table 2, age, occupation, income, and domicile had a significant
relationship with consumer satisfaction. For example, respondents more than ≥ 30 years
of age have a job, have an income of ≥ Rp 2.000.000 and stay in Jakarta satisfied with
XYZ e-commerce. This is because consumers with the above criteria are busy with their
work and economy. It means, XYZ e-commerce is the right solution for consumer
problems, and they feel helped by XYZ e-commerce.

Table 2 Cross-tabulation between respondent characteristics and level of satisfaction

Percentage (%) Asymp. sig
Characteristics Category
Not satisfied Satisfied (2-sided)
Male 3.01 3.87
Gender 0.220
Female 27.15 65.94
<30 years 20.68 9.91
Age 0.000*
≥ 30 years 9.48 59.91
Intermediate 1.29 28.87
Level of education 0.566
High 28.87 65.51
Unemployed 11.63 13.36
Profession 0.002*
Employed 18.53 56.46
< Rp 3.44
8.62
2.000.000
Income 0.000*
≥ Rp 66.37
21.55
2.000.000
Jakarta 15.08 25.00 0.043*
Domicile
Satellite 15.08 44.82
Note: * significant if the asymp.sig value <0.05

Furthermore, gender and education level did not significantly correlate with the
satisfaction of XYZ e-commerce. This is because all gender and level of education can
use e-commerce. The ability of consumers to use e-commerce applications and websites
XYZ is not relevant for comparing the satisfaction level. Moreover, the ease of learning
something can already be obtained easily. XYZ can do it by providing a tutorial on how
to use the application. Therefore, XYZ e-commerce must consider other variables for
applying the marketing strategy.

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Figure 3 The result of the validity test

Table 3 Result of the latent construct reliability test

Variables Dimensions AVE CR
Customer relationship management People, Process, Technology, Knowledge 0.5 0.9
Consumer satisfaction Quality product, Quality service, Innovation product, 0.5 0.9
Brand image
Consumer loyalty Refuse, Repeat purchases, Reward, Recommendation 0.5 0.9

From the validity test, twelve indicators were issued from 54 existing
indicators. After eliminated twelve invalid indicators, Figure 3 shows valid
indicators. AVE and CR values have also been met so that the reliable variables (Table
3), so the measurement model has been fulfilled and can proceed for structural testing
and hypothesis testing.

Structural Model
Structural models were designed for viewing estimates to validate the conceptual
model. The goodness-of-fit result is the first tool before testing, and the results are
shown in Table 4. Based on the goodness-of-fit test results, it was found that the model
suggested at the beginning was a good fit and appropriate to proceed to hypothesis
testing.

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Table 4 Goodness-of-fit result for overall model fit

The goodness of Fit Parameters Cut-off value Result Conclusions
Chi-square The smaller, the better 1857,71 Good fit
RMSEA ≤ 0.08 0,068 Good fit
NFI ≥ 0.90 0.95 Good fit
CFI ≥ 0.90 0.97 Good fit
IFI (Incremental Fit Index) ≥ 0.90 0.97 Good fit
RMR (Root Mean Square Residual) ≤ 0.05 0.030 Good fit
RFI (Relative Fit Index) ≥ 0.95 0.94 Good fit
GFI (Good Fit Index) ≥ 0.90 0.73 Bad fit
AGFI (Adjusted Good Fit Index) ≥ 0.90 0.70 Bad fit

Contribution of Indicators to Latent Variables

Each indicator contributes differently to showing latent dimensions and variables.
The greater the loading factor of an indicator, the greater the contribution of the
indicator in explaining the latent variable. The required loading factor is more than 0.5,
so indicators that have a value below 0.5 need to be eliminated from the analysis model
so that the loading factor meets the validity test requirements. In this analysis of this
model there two indicators were eliminated from CRM variable, namely CRM23 ("the
easiness of service") and CRM33 ("user interface of application"). Eight indicators were
eliminated from consumer satisfaction variable, namely KK24 ("wrap up very well"),
KK25 ("benefit of promo"), KK26 ("saving consumer time"), KK31 ("the need of this
era"), KK34 ("many choices"), KK35 ("easy payment"), KK42 ("transaction easy and
secure"), KK45 ("good brand image") and one indicator was eliminated from consumers
loyalty variable namely LK32 ("liking the promo").
Customer relationship management consists of 4 dimensions, namely people,
process, technology, and knowledge. The biggest indicator describing the CRM variable
was CRM34 ("company makes it easy to access information"), with a loading factor of
0.74. It means that this indicator can explain CRM variable 74%. On the contrary,
CRM31 was the weakest to explain CRM variable with loading factors 0.50.
Consumer satisfaction consists of 4 dimensions: quality of product, quality of
services, product innovation, and brand image. The biggest indicator describing the
consumer satisfaction variable was KK23 ("delivering time"), with a loading factor of
0.71. It means that this indicator can explain the consumer satisfaction variable 71%. On
the contrary, KK32 and KK33 were the weakest to explain consumer satisfaction
variables with loading factors 0.54.
Consumer loyalty consists of 4 dimensions, namely refuse, repeat purchases,
reward, and recommendation. The biggest indicator describing the consumer loyalty
variable was LK11 ("not interest with competitors"), with a loading factor of 0.88. It
means that this indicator can explain the consumer loyalty variable 88%. On the
contrary, LK33 was the weakest to explain CRM variable with loading factors 0.56.

Hypothesis Testing
The result of hypothesis testing can be seen in Table 5. The hypothesis testing
found that CRM significantly influenced consumer satisfaction (0.97) and consumer
satisfaction had a significant effect on consumer loyalty (1.39); meanwhile, the CRM
variable on consumer loyalty (-0.44) shows an insignificant impact. The indirect effect

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was obtained from the CRM variable's path on consumer satisfaction and then consumer
loyalty. This condition is in line with the conditions in the field for CRM to consumer
satisfaction, and e-commerce XYZ builds an application and website for accessible
information and they also launching virtual assistance, which makes service is good.
XYZ gives a top-quality product that exceeds consumer expectations for consumer
satisfaction to consumer loyalty in line with the field. However, the relationship
between CRM and consumer loyalty is insignificant because consumers are still new to
the new behaviour, which is buying something to application and consumer does not
want to do something new.

Table 4 Hypothesis testing

Paths Path Coefficient t-value Conclusion
CRM  Consumer satisfaction 0.97 5.55 Significant
CRM  Consumer loyalty -0.44 0.49 Insignificant
Consumer satisfaction  Consumer loyalty 1.39 2.65 Significant

Discussion

This study aimed to determine what factors can make audiences satisfaction and
loyalty of e-commerce XYZ, analyze the relationship between the characteristics of the
audience with satisfaction, analyze the relationship between the variables, and give an
implication managerial that can be used for XYZ e-commerce agribusiness.
Based on respondent characteristics, all users are women, and their age fell into
the middle-aged category. Also, they have higher education and usually has worked.
This indicates that XYZ users use XYZ e-commerce to make it easier and practical if
they go to supermarkets or traditional markets. They are practical people and trust their
groceries to XYZ e-commerce. Table 2 shows that level of education and gender have
no relationship with satisfaction of using the application. Because any education and
gender can access and learn easily, other respondent characteristics have a relationship
with satisfaction using the application.
Chiu and Chin (2012) state that access to information about goods is the step to
combining the knowledge, so consumers have an attitude toward the goods and services.
Ramaj (2015) stated that the share of organisation in the marketplace by integrating
technology, procedures and people. The purpose of CRM is consumer retention.
Increasing consumer loyalty and profit results in the transformation of strategies and
business functions. Consumer satisfaction is the key element for a successful CRM
implementation and protection of consumer loyalty.
The result of the structural equation model shows that CRM significantly affects
consumer satisfaction, and consumer satisfaction significantly affects consumer loyalty.
However, CRM insignificantly affects consumer loyalty. Consumers will feel
satisfaction if they get the best CRM. This CRM activity must be taken considering that
today's business has turned customer-oriented. CRM activities that have been
implemented by XYZ e-commerce are responded to the complaint. In addition to their
online platform, XYZ e-commerce has also improved the service using chatbots to
optimise CRM. CRM in this study is represented by the dimensions of human
resources, processes, technology, and knowledge.
CRM dimensions that should be improved can be seen from the value of the
loading factor. The four dimensions, variables of technology and process with an

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average loading value, become the lowest factors. These two dimensions are expected to
improve CRM services and consumer satisfaction, leading to consumer loyalty. The
indicator that contributes significantly was the company makes it easier to access
information. The previous study indicated a different relationship, both positive and
significant, between CRM and consumer satisfaction (Rahiminik & Soheilashamsadini,
2014). This means an improvement of CRM will increase consumer satisfaction. Azzam
(2014) also obtained the same research results; namely, CRM affects consumer
satisfaction. Therefore, companies should pay much attention to CRM to generate a
competitive advantage through consumer satisfaction.
Consumer satisfaction is represented by the dimensions of product quality, service
quality, innovation duct, and corporate image (Smith & Chang, 2010). The power of
consumer satisfaction on XYZ e-commerce is the quality of service and product quality
seen from the loading factor average. The indicator that contributes significantly was
the quality of the product provided is the best. The field findings also showed similar
results that the offer products are fresh; most respondents expressed the same thing.
Previous studies also concluded a positive and significant relationship between
consumer satisfaction and loyalty (Laksmana, Kusuma & Landra, 2018; Zahro &
Prabawani, 2018). Research conducted by Rizq, Djamaludin, and Nurhadryani (2018)
stated that three indicators that can improve consumer satisfaction are ease of handling
requirements, speed of services and facilities, and physical condition of office buildings.
This result can be input into this research. This means that that the increase of
satisfaction will also increase consumer loyalty.
Meanwhile, several studies also showed contradictory that satisfied consumers did
not cause an increase in loyalty. However, consumers' ignorance of other companies
(Iriandi et al., 2015) and there was no significant consumer satisfaction effect against
consumer repurchases associated with consumer loyalty (Simanjuntak, Putri, Yuliati &
Sabri, 2020). Reza, Sumarwan, and Hartoyo (2019) conducted the same research and
stated that consumer satisfaction affects consumer loyalty and purchasing behaviour.
Besides that, Putra and Yuliati (2016) stated that the study of complaint intention was in
the middle category and factors that influenced complaints, namely unsatisfied
experience.
CRM did not have a significant direct effect on consumer loyalty. This loyalty
change appears due to XYZ's e-commerce promotion recently applied intensively only
during a pandemic. According to the respondents, they still feel ordinary and disbelieve
in the quality and service of traditional markets. Also, XYZ's e-commerce has not
become the top of mind of the respondent. This is supported by the fact that brand
resonance and brand loyalty are influenced by generation variables (Olga, David,
Dhameeth, Adam & Elliot, 2018), and the millennial generation quite hard to believe in
change. CRM is very effective in supporting consumers' satisfaction to support
consumers to make loyal purchases through online shopping. It has a significant effect
on consumer satisfaction, and the increase of it can affect loyalty and profit (Dibyo,
Mangifera, Putri & Wardani, 2021; Hassan et al., 2014). Overall, CRM directly affects
consumer satisfaction and indirectly affects consumer loyalty through consumer
satisfaction. The result shows the importance of CRM in increasing consumer
satisfaction and loyalty.
From a theoretical perspective, the results show that CRM significantly directly
affects consumer satisfaction and indirectly on consumer loyalty. These results are, in
merely put, XYZ e-commerce can increase consumer satisfaction and loyalty by

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improving the CRM. Based on the indicators' contribution, an increase in the human
resource dimension was significant in the CRM dimension. The deep priority level
improved CRM services sequentially, namely the dimensions of human resources,
knowledge, process, and technology. Consumer satisfaction that increased sequentially
were service quality, product quality, company image, and product innovation. Each
sequential improvement dimension theoretically can increase expected consumer loyalty
on XYZ e-commerce.
The managerial implications were divided into marketing mix (4C) and CRM
implications on consumer satisfaction and loyalty. First, the marketing mix used as
implication managerial is the 4C proposed by Lauterborn (1990). This marketing mix
consists of customer needs, customer convenience, customer cost, and customer
communication. Customer needs have been met, reflected in the most significant
indicator, namely XYZ e-commerce makes it easier to access product information.
However, XYZ e-commerce can minimise bugs in the application for consumer
convenience. Customer convenience is reflected in the fast service indicator. That was
characterised by ease of access to information, easy transactions so that delivery can be
done quickly. Customer cost is reflected by the indicator of shopping costs lower than
the traditional market, but this is not following the field conditions; namely, the price
offered is more expensive. This can be done by product bundling. Customer
communication is essential to be taken by the company in the way the company must
communicate and provide information to consumers. Companies must involve the
consumers, companies should maintain relationships with consumers, and the company
must provide solutions. The company can still maximise customer communication to
switch to become customers by creating a loyalty program.
The performance improvement of CRM process and technology dimensions had a
loading factor value that is still low that will affect the performance of CRM. It needs a
strategy for improving the performance of these two dimensions. Process dimension
performance improvement can be made with improvements in the ease and fast delivery
of goods. Process acceleration delivery of goods could be taken by increasing the stock
of products, preparing the right type of transportation in distributing goods, utilising
partners stalls that have spread, and implementing a COD (Cash On Delivery) system
for collection products. The most important thing is maintaining communication with
suppliers to determine how much product or crop can be delivered and scheduled. This
strategy must always be monitored and informed to consumers about the certainty of the
product they ordered.
Improving the technology dimension performance can be conveyed by changing
the user interface appropriately; websites and applications are more user-friendly
because there are difficulties in purchasing products using the application. Apart from
this, the consumer can complain about errors on the website and application to increase
the level of convenience for consumers in accessing the website and applying XYZ e-
commerce.
There are several limitations of this study, such as (1) no direct interaction with
the respondents that makes researchers unable to dig more in-depth about the reasons
for using XYZ e-commerce. The next limitation is (2) There was no determination of
the purchase time limit. There may be bias in assessing services, whether prior or after
the repair period of XYZ e-commerce services. Finally, (3) the sample's determination
using non-probability sampling makes the results only be concluded within the research
sample, not generalised at the population level.

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Conclusion and Recommendation

Conclusion
Based on the research results, consumer e-commerce XYZ was dominated by
females 31 – 40 years old, already married, and have a job with income middle to high.
Table 1 shows that level of education and gender have no relationship with satisfaction
of using the application. However, because any education and gender can access and
learn easily, other respondent characteristics are related to satisfaction using the
application.
CRM has a significant effect on consumer satisfaction. Consumer satisfaction
also has a significant effect on consumer loyalty. However, CRM has no significant
effect on loyalty due to the relatively new start-up. Also, consumers have so many
choices that they still like to try and be disloyal to one brand.
A practical managerial implication for the company is to implement the CRM and
4C strategies. Ease in the buying process, professionalism, reliability, and
trustworthiness imply that e-commerce can apply PT XYZ. E-commerce needs to
improve the relationship between criticism and suggestions, communication and
information provision, managing product availability, delivery time, and saving
consumer costs. This is also can be seen from the weaknesses, opportunities and threats
of the company. Overall, the improvement of e-commerce services need awareness of
increasing the desired value, improving product quality, and the ease of access to
information that will lead to consumer loyalty.

Recommendation
Suggestions for future research can add other research variables such as brand
awareness, customer retention, and customer engagement. The purpose of this addition
is to analyze the various factors that can develop the company. These research purposes
recommend e-commerce XYZ to maintain and increase the easiness of purchasing
process, professionalism, reliability, and trustworthiness. In addition, this field needs to
improve the relationship between criticism and suggestions, communication and
information provision, managing product availability, delivery time, and saving
consumer costs. Next, needs also improve consumers' desired value, product quality,
and ease of access to information, such as the product's availability, besides that, to
analyze segmentation strategy that can affect not just women but also men.

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