IDENTIFICATION OF THE RELATIONSHIP AMONG PERCEIVED FIRM INNOVATIVENESS, TRUST AND CUSTOMER LOYALTY

Abstract

Despite the growing popularity of research on perceived firm innovativeness increasing, but only a few empirical studies that have been conducted to understand how this concept plays a role in creating trust and customer loyalty, especially in the banking sector. The purpose of this research is to provide empirical evidence about the relationship between perceived firm innovativeness, trust and customer loyalty. This sample is 124 respondents of PT Bank Central Asia, Tbk. Data collected through online surveys, Google form, hypotheses were tested using regression intervention. Findings perceived firm innovativeness has positive effect on trust and loyalty. Trust has a positive influence on loyalty. In addition, trust mediates partially the relationship between perceived firm innovativeness and loyalty. It is hoped that this research can be part of the sustainability of PT. BCA, because with strong loyalty, creating a strong and good sustainability internally and for the surrounding environment will be something that can have a positive impact. The existence of both parties who provide mutual support, will create a more meaningful life.