Influence of Customer Relation Management, Service Quality on Customer Trust

Abstract

Objective: Technological developments and increasing living standards make people aware of the importance of a service. The development of Small and Medium Industries is closely related to the Ministry of Industry, especially business licenses. The Ministry of Industry as a public service should always improve the services provided to the community. This research was carried out in Small and Medium Industries as users of the Ministry of Industry's Public Center Service Unit. The purpose of the study is to determine the effect of customer relationship management, service quality and trust in Small and Medium Industries partially, simultaneously and its implications on customer trust in the Central Public Service Unit of the Ministry of Industry. Methodology: The problem is formulated in 3 hypotheses and tested by Structural Equation Modeling (LISREL 8.30) with 350 respondents. Findings: It is concluded that Hypothesis one (H1) Customer Relationship Management has a positive effect on customer trust, has a value of t>2 (3.57> 2). The influence of Customer Relationship Management  on customer trust is 0.39. The second hypothesis (H2) Service Quality has a positive and significant effect on customer trust, the value of t>2 (2.32>2) and if service quality is improved, customer trust in the Ministry's Central Public Service Unit will increase by 22%.  The third hypothesis (H3) Customer Relationship Management (CRM) and Service Quality simultaneously have a positive and significant effect on customer trust, the value of t > 2 (7.12> 2) and the magnitude of the effect is 0.71.   Implications: The Central Public Service Unit of the Ministry of Industry should provide maximum service so that consumers become loyal customers.