Increasing Customer Loyalty Through Market Orientation and Customer Engagement Grab Indonesia

Bandung Ibnu Majid () and Grace Tianna Solovida
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Bandung Ibnu Majid: BPD University, Faculty of Economics and Bussines
Grace Tianna Solovida: BPD University, Faculty of Economics and Bussines

A chapter in Proceedings of the 2nd International Conference on Business, Accounting, Banking, and Economics (ICBABE 2025), 2025, pp 360-382 from Springer

Abstract: Abstract This study aims to analyze the effect of market orientation on customer loyalty, with customer engagement as a mediating variable for Grab service users in Semarang Regency. The background of this study is based on the tight competition in the online transportation industry that demands companies to build stronger and more sustainable customer relationships. The method used was a quantitative approach with a purposive sampling technique on 96 respondents, and the data were analyzed using Structural Equation Modeling–Partial Least Square (SEM-PLS). The results show that market orientation has a positive and significant effect on customer engagement and loyalty. Customer engagement is also proven to have the most dominant influence on loyalty and partially mediates the relationship between market orientation and customer loyalty. These findings emphasize the importance of a customer-based strategy that does not only focus on transactional aspects, but also strengthens emotional engagement to build long-term loyalty. Managerial implications are suggested for the Grab CRM team to prioritize programs that improve two-way interactions and a holistic customer experience.

Keywords: Customer Loyalty; Market Orientation; Customer Engagement (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-862-2_32

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DOI: 10.2991/978-94-6463-862-2_32

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