Assessing the mediating role of customer trust in the effect of customer relationship management and customer loyalty: Evidence from creative economy

Abstract

This study aims to examine the effect of customer relationship management (CRM) and customer trust on EO customer loyalty, both directly and indirectly through customer trust as a mediating variable. The population in this study consisted of customers who use EO services in Jakarta. Using proportional sampling techniques, 276 respondents were obtained from 92 EO companies. Data analysis was conducted using descriptive statistics and hypothesis testing with the Partial Least Squares (PLS) approach. The results indicate that CRM and customer trust have a significant effect on customer loyalty, both directly and through the mediation of customer trust. Customer trust plays an important role in strengthening the influence of customer relationship management on customer loyalty. The practical implication of this study is that EO companies need to strengthen CRM with a more effective customer management system to build trust and increase customer loyalty. Additionally, the finding that customer trust enhances the impact of customer relationship management on customer loyalty may be a novel contribution, providing theoretical insights into the relationship between customer relationship management, customer trust, and customer loyalty in the EO industry.