Problem Formulation Purpose and Benefit of Research

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B. Problem Formulation

The amount of sales achieved by Coca- Cola‘s company can occur due to wider distribution channels, the new consumers, as well as repeat purchase by usual consumers and the existence of customers who loyal on Coca-Cola brand will be able to increase sales and be able to maintain a good position in the market www.thecocacolacompany.com. Loyalty is an old-fashioned word that has traditionally been used to describe fidelity and enthusiastic devotion to a country, cause or individual. More recently, it has been used in a business context to describe a customer‘s willingness to continue patronizing a firm over the long term, purchasing and using its goods and services on a repeated and preferably exclusive basis, and recommending firm‘s products to friends and associates. The occurrence of repeat purchases is due to customer satisfaction and trust in a brand that inherent in the minds of consumers so that it will create customer loyalty Lovelock and Wirtz, 2004:352. To analyze the influence of customer value, customer satisfaction and trust in brand toward customer loyalty, the researcher makes the following questions. 1. Does the customer value significantly influence customer loyalty? 2. Does the customer satisfaction significantly influence customer loyalty? 3. Does the trust in brand significantly influence customer loyalty? 4. Do the customer value, customer satisfaction and trust in brand significantly influence customer loyalty? 9

C. Purpose and Benefit of Research

1. Purpose of Research This research aims to: a. Analyze the influence of customer value to customer loyalty b. Analyze the influence of customer satisfaction to customer loyalty c. Analyze the influence of trust in brand to customer loyalty d. Analyze the influence among customer value, customer satisfaction and trust in brand to customer loyalty 2. Benefit of Research This research is expected to provide benefits for: a. Coca- Cola‘s Company The results of this study are expected to be used as a reference and information materials for Coca-Cola about how to maintain customer loyalty to their products with due regard to value and customer satisfaction. It‘s also useful for company to keep trust in a brand that inherent in the mind of customers. b. The researcher Researcher can learn how customer value, customer satisfaction and trust in brand influence customer loyalty. c. Research is also expected to be useful as a source of information for the needy as well as useful for the intensive search-related research in the future. 10

CHAPTER II LITERATURE REVIEW