The Effect of Economic Value, Social Value, and Environmental Value on Customer Loyalty: The Mediating Role of Brand Image in Indonesian Heavy Equipment Distributor Company

DOI

10.2991/978-94-6463-585-0_63How to use a DOI?

Keywords

Economic Value; Social Value; Environment Value; Brand Image; Customer Loyalty

Abstract

Each year, the demand for sustainability across various aspects of operations and products continues to escalate. Stakeholders increasingly seek transparency regarding businesses’ sustainability efforts. Customers prioritize brands that align with their values, emphasizing shared values in their purchasing decisions. Similarly, partners and suppliers seek tangible actions toward Environmental, Social, and Governance (ESG) initiatives. Recognizing the substantial impact of customers’ and partners’ assessments on a company’s sustainability, investors also emphasize transparency in this regard. Apart from the evident advantages of pursuing genuine sustainability efforts, prioritizing ESG through Creating Shared Value (CSV) can serve as a competitive advantage. This research explores the impact of economic, social, and environmental value on customer loyalty, with brand image mediating the relationship, specifically focusing on a heavy equipment distributor company. Employing a quantitative approach, the study surveyed 340 respondents and analyzed the data using SPSS and Smart-PLS SEM (Structural Equation Modeling). The findings reveal that four variables significantly and positively influence customer loyalty, while three variables show no significant impact. Additionally, the indirect analysis underscores the significant and positive influence of economic, social, and environmental values on customer loyalty.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Rizky Satriawan
AU  - Nurdayadi
AU  - R. R. Ratih Dyah Kusumastuti
PY  - 2024
DA  - 2024/12/11
TI  - The Effect of Economic Value, Social Value, and Environmental Value on Customer Loyalty: The Mediating Role of Brand Image in Indonesian Heavy Equipment Distributor Company
BT  - Proceedings of the 5th International Conference on Global Innovation and Trends in Economy 2024 (INCOGITE 2024)
PB  - Atlantis Press
SP  - 931
EP  - 946
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-585-0_63
DO  - 10.2991/978-94-6463-585-0_63
ID  - Satriawan2024
ER  -