Customer Equity as Mediator of Customer Experience and Loyalty Relationship

Abstract

The phenomenon of intense competition becomes a strong basis for seeing disloyalty or not achieving full Loyalty to the industry. This study aims to test the Customer Experience of Loyalty with Customer Equity as a mediator. This research is a study with a quantitative approach, which uses the SmartPLS-3 statistical test tool. The number of samples used in this study was 300 samples. The results showed that Customer Equity was successful in mediating the relationship between Customer Experience and Loyalty. On the other hand, Customer Experience cannot directly influence Loyalty. in the concept of customer equity, companies must utilize the resources of consumers to create shared value, or this concept is also known as the theory of Service-Dominant Logic (SD Logic). The SD logic is relationship equity as the tendency or intention of consumers to go beyond the objective or subjective assessment of a brand and maintain a good relationship with a brand. Thus, it takes cost and effort to maintain the equity of a good relationship to contribute to consumer loyalty.