INVESTIGATING FACTORS INFLUENCING REPURCHASE INTENTION: CASE STUDY IN BEVERAGE MANUFACTURING INDUSTRY

Abstract

The food and beverages industry is one of the most contributing sectors for Indonesian economic growth. It is a profitable business to invest in, due to the development of the Indonesian population. However, the competition in the market is inevitable; thus, companies need to generate strategies of differentiation to retain the customers. One crucial thing in maintaining customer loyalty is to have good management in customer experience. Customer experience was mainly discussed in the Business to Customer (B2C) sector but limitedly explored in the Business to Business (B2B) sector. Customer satisfaction can directly affect and predict customer repurchase intention and customer loyalty. Repurchase intention is crucial in the B2B industry because the buying process in the B2B industry is a rational decision, and it costs more to deal with the new customers than keeping customers already had. Therefore, current research is focused on customer experience; value, loyalty, and satisfaction on repurchase intention in one beverage manufacturing company in Indonesia whose market focus is on the B2B sector. Quantitative research was conducted on July 13th, 2021, to August 5th, 2021 using the availability sampling method and obtained 85 respondents who are the customers of the beverage manufacturing company in Indonesia. Data was analyzed using PLS-SEM (Partial Least Square – Structural Equation Modelling) method. This study shows that 78.2% of repurchase intention is explained and significantly affected by the variables discussed in the research. Customer satisfaction is more likely to affect the repurchase intention. However, customer value has no significant effect on repurchase intention. Therefore, it is hoped that this study will give insights to B2B organization managers to set their marketing strategy.