The Effect of Economic Value, Social Value, and Environmental Value on Customer Loyalty: The Mediating Role of Brand Image in Indonesian Heavy Equipment Distributor Company

Rizky Satriawan (), Nurdayadi and R. R. Ratih Dyah Kusumastuti
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Rizky Satriawan: Swiss German University
Nurdayadi: Swiss German University
R. R. Ratih Dyah Kusumastuti: Swiss German University

A chapter in Proceedings of the 5th International Conference on Global Innovation and Trends in Economy 2024 (INCOGITE 2024), 2024, pp 931-946 from Springer

Abstract: Abstract Each year, the demand for sustainability across various aspects of operations and products continues to escalate. Stakeholders increasingly seek transparency regarding businesses’ sustainability efforts. Customers prioritize brands that align with their values, emphasizing shared values in their purchasing decisions. Similarly, partners and suppliers seek tangible actions toward Environmental, Social, and Governance (ESG) initiatives. Recognizing the substantial impact of customers’ and partners’ assessments on a company’s sustainability, investors also emphasize transparency in this regard. Apart from the evident advantages of pursuing genuine sustainability efforts, prioritizing ESG through Creating Shared Value (CSV) can serve as a competitive advantage. This research explores the impact of economic, social, and environmental value on customer loyalty, with brand image mediating the relationship, specifically focusing on a heavy equipment distributor company. Employing a quantitative approach, the study surveyed 340 respondents and analyzed the data using SPSS and Smart-PLS SEM (Structural Equation Modeling). The findings reveal that four variables significantly and positively influence customer loyalty, while three variables show no significant impact. Additionally, the indirect analysis underscores the significant and positive influence of economic, social, and environmental values on customer loyalty.

Keywords: Economic Value; Social Value; Environment Value; Brand Image; Customer Loyalty (search for similar items in EconPapers)
Date: 2024
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DOI: 10.2991/978-94-6463-585-0_63

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