The Relationship between Trust in Brand and Customer Loyalty Relationship between Customer Value, Customer Satisfaction and,

52 loyalty should increase rapidly after customer satisfaction passes a certain threshold —that is, there are increasing returns to scale in the relationship between customer satisfaction and customer loyalty. Thus the hypothesis can be drawn as follows: H1: there is significant influence between customer satisfaction and customer loyalty.

3. The Relationship between Trust in Brand and Customer Loyalty

Sheth and Parvatiyar in Matzler 2008 suggest that the concept of brand trust is based on the idea of a consumer brand relationship which is seen as a substitute for human contact between companies and customers. Brand trust is one powerful factor that affects customer loyalty. Trust becomes the most important factor in the relationship between a company and its customers and the relationship between brands with customers. According to Jevons Gabbott, 2000 quoted by Marcel Gommans et al., 2001:47 trust in brand plays a central role in augmenting both behavioral and attitudinal loyalty which in turn influences marketing outcome related factors like market share maintenance and price elasticity. In the field of loyalty several structural models of trust in brand and its relationship to repeat visits to e-commerce sites have been presented. Thus the hypothesis can be drawn as follows: H1: there is significant influence between trust in brand and customer loyalty. 53

4. Relationship between Customer Value, Customer Satisfaction and,

Trust in Brand toward Customer Loyalty Lam et al., 2004 stated that in the recent research has explored relationships between customer value perceptions and both satisfaction and loyalty. If customer is satisfied heshe will buy the product again and again. It is one of the very important factors that affect customers. Turel and Serenko 2006 and Kuo et al. 2009 examined nature of relationship between customer and the product determines customer loyalty. It has been identified that good customer relationship leads to customer loyalty Hoq et al., 2010. Thus good relationship bond between the customer and the product can guarantee customer loyalty for the product. Furthermore, studies show that customer value influences customer satisfaction Moliner, Sanchez, Rodriguez and Callarisa, 2007 and customer loyalty Dagger, Sweeney and Johnson, 2007. According to Mohammad Muzahid Akbar 2009:28 trust and customer satisfaction are significantly and positively related to customer loyalty. Corbitt, Thanasankit, and Yi 2003 have pointed out that a strong positive effect of trust on customer loyalty in case of telecommunications sector. Thus the hypothesis can be drawn as follows: H1: there is significant influence between customer value, customer satisfaction and trust in brand toward customer loyalty. 54

CHAPTER III RESEARCH METHODOLOGY

A. The Research Scope

The research will be on the customer value, customer satisfaction and trust in brand toward customer loyalty of Coca-Cola. 1. The respondent for this research will be concentrate on the customer of Coca-Cola in North Jakarta. 2. The place of the research will be at North Jakarta, and duration of this research has been starting since March 2012. As the independent variables in this research are customer value X1, customer satisfaction X2 and trust in brand X3 and dependent variable in this research is the customer loyalty Y.

B. Sampling Method

The population in this study is the consumers who buy and consume Coca-Cola in North Jakarta at the time of the research, and here the researcher does not restrict the respondent from certain district. Malhotra 2009:369 defines population as the aggregate of all elements, sharing some common set of characteristics that comprises the universe for the purpose of the marketing research problem. Sugiyono 2009:115 defines a sample as part of the amount of data and the characteristics possessed by the population. With a presumption or perception of consumers obtained through a questionnaire with some form of 54