The Effect of Customer Orientation
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Mark BourneThe Effect of Customer Orientation
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Mark BourneInternational Journal of LatestResearch in Engineering and Management" (IJLREM)
ISSN: 2456-0766
www.ijlrem.org Volume 3 Issue 7 ǁ July 2019 ǁ PP 12-23
The Effect of Customer Orientation and Supply Chain
Orientation on Customer Loyalty with Customer Satisfaction as
Mediator
Kipong Krisantoro Malun1, Niken Sulistyowati2
1(
Master of Management, University of Mercu Buana, Indonesia)
2
(Master of Management, University of Mercu Buana, Indonesia)
Abstract:The purpose of this study was to examine the association models of customer orientation and
supply chain orientation towards customer satisfaction and customer loyalty. A total of 154 respondents
were sampled representing the customers of a company manufacturing flavorings and fragrances in
Indonesia.Measuring instrument used a questionnaire using semantic differential scale that is specifically
developed for this study. Analysis of the data using structural equation modeling (SEM) that the
calculation is done with the help of IBM-AMOS ver.24. The results show that supply chain orientation
and customer orientation have a direct effect on customer satisfaction and customer satisfaction has an
effect on customer loyalty.
Keywords: Customer Orientation, Customer Satisfaction, Customer Loyalty, Supply Chain
Management,Supply Chain Orientation
I. Introduction
The supply chain is a phenomenon that exists in a business where every company related to the flow of
commodities with other companies. (Mentzeret.al., 2001). Supply chain has strategic implications on the
sustainability of the company (Signori et al, 2015; Hassini et.al., 2012).
The activities of supply chain management is a series of actions or behaviors consistent form of activity
integrated, sharing information of mutual benefit, work together, the same focus on the purpose and customer
service, integration of processes and partnerships to build and maintain long-term relationships between
members of the organization / company supply chain for the purpose of improving the long-term performance of
individual company and the performance of the supply chain as a whole (Mentzeretal, 2001; Sun etal, 2009).
Supply chain management is a tactical weapon for the company in terms of 1) reducing costs, 2) reduce
the risk of uncertainty on the market, 3) developing innovative solutions, 4) increasing responsibility to improve
the value and customer satisfaction as well as 5) as a reference in making short-term decisions functional and
operational level company (Lee, 2000). The implementation of SCM is a set of activities carried out by an
organization in order to achieve the effectiveness of the supply chain management (Li et all, 2006 in Purnomo &
Sulistyowati, 2018).
One of the toughest challenges faced by manufacturing companies for industry flavorings (flavor) and
perfume (fragrance) is in maintaining a competitive advantage in a situation that can not be predicted and
customers tend to demand more. In the current situation of global competition, the company becomes very
difficult to meet the needs and desires of customers that may result in the loss of customers,who were
dissatisfied,to other competitors. In this case, companies need to manage and maintain the company's
performance-oriented customers.
A phenomenon that occurs in the flavor business processes in the company under study is the decline in
the total value of sales of the product significantly. The sales decline is suspected customer migration to other
competitors due to various things such as unstable supply of material causing a back order in addition to the
customer complaints related to quality, delivery delays, and the accuracy of the number. Headwinds hand,
supply of raw materials, due to the amount of imported raw materials are high, the deadline for the purchase of a
long, and the accuracy of estimates of the needs of the low impact on the performance of the supply chain in
meeting the needs of customers (customer service), which at a given time can affect customer loyalty.
Based on the description above, the study sought to examine the causal relationship between the orientation of
the supply chain as a representation of the company's long-term concept and customer orientation as a
representation of customer focused services to corporate objectives to satisfy customers and gain a loyal
customer.
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II. Literature Review
Supply Chain Management
Supply Chain Management(SCM) is the integration of procurement activities of materials and services,
conversion into semi-finished goods and finished products (Heizer and Render, 2008). Supply chain
management is a set of approaches utilized to efficiently integrate suppliers, manufactures, warehouses, and
stores, so that merchandise is produced and distributed at the rigth quantities, to the right location, at the rigth
time, in order to minimize system wide costs while satisfying service level requirements' (Levi, 2000). Supply
Chain Management can also be interpreted network of organizations regarding the relationship to the upstream
(upstream) and downstream (downstream), in different processes and produce value in the form of goods /
services in the customer's hands last (Mentzer, 2001).
Supply Chain Orientation
The orientation of the supply chain is an element associated with the understanding of the importance
and the strategic objectives of supply chain management. Terminology supply chain orientation was stated by
Mentzer. (2001), which is defined as "understanding of an organization on the implications of a systemic,
strategic than tactical activity involved in managing the various streams / flows in the supply chain," or is
identified as "a set of beliefs" about the supply chain arising from within the company and became the basis for
cooperation between organizations. Therefore, conceptually oriented supply chain is an antecedent of supply
chain management activities (Esper et al., 2010, Mentzer et al., 2001).
Results of research Min et al. (2007) demonstrate empirically that the orientation of the supply chain
affects positively and significantly on the activity of supply chain management, and concluded that the
orientation of the supply chain is an operational concept of the philosophy of supply chain actualization of the
company (within the organization), while activity chain management is an overall supply management activities
undertaken between organizations (between the organization).
Meanwhile, according to Schulze et.al (2014), supply chain orientation behavior is to establish
cooperative relations between the two companies or more interdependent to achieve shared interests and goals.
Generally it can be divided into the concept of vertical cooperation orientation and the orientation of the
common goal. Verticalcooperationorientationas positiveandthe general attitude towards collaboration with
business partners downstream or upstream, while the shared goal orientation describes the general positive
attitude about the existence of a common goal with the downstream business partners.
Customer Orientation
Customer orientation has been described in various ways in the literature (Kohli and Jaworski, 1990;
Narver and Slater, 1990; Webster, 1988) and is often associated with terms such as market orientation,
marketing concept, and "customer first". But all of those terms as the customer puts the strategic focus of the
marketing concept (Felton, 1959; McGee and Spiro, 1988). The application of marketing concepts defined
market orientation (Kohli and Jaworski, 1990). Narver and Slater (1990) showed that customer orientation is
one component of market orientation behavior in conjunction with competitor orientation and coordination
between functions, which are interlocked in the two criteria for decision-making - a long-term focus and
profitability. Some marketing practitioners and academics argue that there is no clear distinction between
customer orientation and market orientation. (Shapiro, 1988; Webster, 1988).
Customer orientation is regarded as a strategic orientation that reflects the company's ability to create
and deliver superior customer value through the processing of market intelligence. Analysis of this information
to create customer knowledge; deployment of customer knowledge across the enterprise; and planning and
coordination as in solving customer problems or exploit the embryo customer segments, which are based on
what is learned from market intelligence.
Customer-oriented marketing, with a focus on the needs of consumers and make a profit of the
company by creating customer satisfaction (Kotler& Armstrong, 1994). Similarly, Ruekert (1992, p. 228)
defines customer orientation as' 'the extent to which a business unit of acquiring and using information from
customers, develop a strategy that will meet customer needs, and implement strategies that are responsive to'
needs and desires of customers. In customer orientation, customer needs are the basis for the planning and
design of organizational strategies (Saura et al. 2005)
Customer orientation is a set of beliefs in sales where the customer needs and satisfaction a priority
within the company. Customer orientation as an element of the corporate culture from the perspective of the
seller. The construct of customer orientation consisted of six dimensions: customer aspects, aspects of the
product / service, operations aspects, aspects of competitors, aspects and aspects of the inward orientation of
employees (Acar et al., 2013).Customer orientation means that companies are trying to identify a group of
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people (or companies) that are most likely to buy their products and produce goods or offer services that will
meet the demand of the target market (Dalgic, 2013).,
Meanwhile, Jeon and Hong (2007), identifies three aspects of customer orientation in the supply chain,
namely customer proximity (customer-closeness), The flexibility of thecustomer (customer- flexible), andease
of access to the customer (customer-accessible). Customer proximity as the extent of the supply chain
demonstrate readiness to keep in touch, communicate with customers effectively and understand the needs and
demands of the entire supply chain. Flexibility refers to the level of awareness of customers willing to respond
to changing customer expectations. While the ease of access to the customer is the readiness to allow customers
to access information easily and quickly.
Customer satisfaction
The concept of customer satisfaction has been in a central position in marketing since the 1950s until
today with interest and importance is increasing. We can think of satisfaction as the main output of the
marketing activity that links the processes involved in the purchase and consumption. Connecting phenomena
including post-purchase such as a change in attitude, repeat purchases and brand loyalty. Placement in the core
marketing concepts reflected in the consideration that the profits generated through the satisfaction of consumer
needs and wants. (Bilgin, et. Al., 2010).Definition of customer satisfaction according to Kotler (2014: 150) are:
feeling happy or disappointed that emerged after comparing the performance (results) are considered products of
the performance (or outcome) is expected.
Customer satisfaction is feeling good nuances of the customer arising as a result of customers'
perception of the performance of the right products or services in accordance with expectations (Liang and
Zhang, 2012). High customer satisfaction ratings are believed to be the best indicator for the company's future
profits (Mazreku, A., 2015).
Indicators that affect customer satisfaction from the perspective of relationship marketing is the ability
to adapt the supplier to the buyer's needs, cooperation, communication and trust (Cambra et.al, 2008) ..
Customer loyalty
The literature review shows that approach the conceptualization and measurement of loyalty has a lot
of construction. There is some consensus that loyalty may exist at different levels, such as cognitive, emotional
and behavior (Dwyer et al 1987; Fornell 1992; Lam et al., 2004). Initially, researchers have paid great attention
to the dimensions of loyalty behavior, ignoring the cognitive aspects (Jacoby and Chestunt, 1978; FandosRoig et
al., 2009). Dick and Basu (1994) proposed a theoretical framework in which loyalty is composed of attitudes
and behavior patterns. A few years later, Oliver (1999) introduced a model of loyalty based on the paradigm of
cognition-affect-performance.
Customer loyalty can be defined as the step closest to the customer repurchase behavior. Customer
loyalty is usually referred to as a consequence of all the experience the customer has with the service provider /
product (Mascarenhas, Kesavan, and Bernacchi, 2006).
Kotler and Keller (2009) expresses loyalty is "deeply held commitment to purchase or support back
preferred products or services in the future despite the influence of the situation and potential marketing efforts
cause customers to switch".
His experience may include physical interactions, emotional engagement, and the current value chain,
according to Mascarenhas et al. (2006). In terms of the consequences of loyalty, loyalty strategy shift of just
satisfaction strategy can substantially improve customer retention and reduce marketing costs (Stan,
Caemmerer, and Cattan-Jallet, 2013). Camarero et al. (2005) found from a case study in Spain that customer
loyalty has a positive impact on both the performance of the enterprise market and its economic performance.
Generally, customer loyalty has been referred to as the link between the customer's attitude, repeat sales, and
financial performance (Heskett et al., 2008).
In the case of antecedents of customer loyalty, a number of construction has been suggested by
previous studies. Yee, Yeung, and Cheng (2010) found that employee loyalty, service quality, and customer
satisfaction has a positive effect on customer loyalty in the service industry with high contact frequency. In
addition, according to Oliver (1999), loyalty can be developed through different phases, which are cognitive,
affective, conative, and ultimately behavior. The first three phases are usually called loyalty attitudes depend on
the experience the customer has with the service provider (overall satisfaction). Completing the three phases can
lead to loyalty behavior as the final stage. The process of phase change customer loyalty is confirmed by a meta-
analysis of the antecedents of customer loyalty by Pan, Sheng and Xie (2012). In his research, by conducting a
meta-analysis, the authors also found empirical evidence that supports the satisfaction, trust, commitment and
customer loyalty membership programs have a positive effect on customer loyalty. In addition, the product-
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related attributes such as quality, value, brand reputation and turnover costs (switching cost) also determine the
level of customer loyalty. Therefore, customer loyalty can be defined as the power of customer attachment to the
brand (or service provider) and its intention to buy back the brand (or using a service provider) consistently in
the future. commitment and customer loyalty membership programs have a positive effect on customer loyalty.
In addition, the product-related attributes such as quality, value, brand reputation and turnover costs (switching
cost) also determine the level of customer loyalty. Therefore, customer loyalty can be defined as the power of
customer attachment to the brand (or service provider) and its intention to buy back the brand (or using a service
provider) consistently in the future. commitment and customer loyalty membership programs have a positive
effect on customer loyalty. In addition, the product-related attributes such as quality, value, brand reputation and
turnover costs (switching cost) also determine the level of customer loyalty. Therefore, customer loyalty can be
defined as the power of customer attachment to the brand (or service provider) and its intention to buy back the
brand (or using a service provider) consistently in the future.
To assess customer loyalty can be used three indicators as defined by Zeithaml et al; 1996, namely:
1. Recurring transactions. This can be interpreted as a follow-up to make transactions back or recurring
transactions in the same place or the same service provider or similar elsewhere.
2. Recommend to others. This can occur because of the comfort and satisfaction that can be perceived then
someone will recommend a service, including through reporting on what he felt to others.
3. Using other services offered by the same company. Because of the satisfaction he felt in a service, then
there will be an urge to try to offer other services available on-site or company.
Based on the above description, customer loyalty is the strength of the relationship between the
provider of the service / product / brand with customers consistently resulting in customers will be willing to re-
use the product / service / brand of service providers in the future. Maintaining customer loyalty has long been
proven as a cost-efficient strategy. Companies that have a loyal customer base, not only to survive but more than
that the company can become more developed.
Framework
Based on thestudy of the theory has been discussed, the authors developed a conceptual model as
follows:
H1
H3
H2
Figure1 Framework
Information:
ORP = Supply Chain Orientation,
OP = Market Orientation,
KP = Customer Satisfaction,
LP = Customer Loyalty,
ei (1 ... 10) = Error (ERROR).
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It can be seen in Figure 1. Customer Orientation (OP) consists of three dimensions: Customerproximity
(OP1), CustomerFlexibility (OP2) andFacility Information (OP3). Supply Chain Orientation (ORP) consists of
two dimensions: Vertical-Cooperation Orientation (ORP1) and the Common Goal Orientation (ORP2).
CustomerSatisfaction (KP) consists of fourdimensions, namely Cooperation (KP1), OpenessInformation (KP2),
Trust(KP3) andQuality of relationships (KP4). Customer loyalty is composed of three dimensions: Long-Term
Relationship (LP1), Recommend to Other Partners (LP2) and Willing to buy on another product and the price
premium (LP3).
Hypothesis
Referring to the model developed for this study, the conceptual framework linkages between variables
and hypotheses that are used can be explained as follows:
Effect of Supply Chain Orientation towards Customer Satisfaction
Botha and Waldt (2010) as quoted by Gerry Ganika (2016), stating trust, commitment, satisfaction
interrelation and the same control on decisions is an essential indicator and is closely related to the strategic
relationship between organizations. Satisfaction is determined by affection and emotion is a response
conceptualization of expectations are met. Therefore, if a company has a clear supply chain orientation, then the
expectation of achieving the operational performance through collaboration in the supply chain will be higher,
so the interrelation satisfaction in supply chain management will be positively affected. Therefore, this study
raises a proposition which reflects the direction of a positive relationship as follows:
H1: Supply Chain Orientation has positive effect on customer satisfaction
Effect of Customer Orientation towards Customer Satisfaction
Focus on the needs and demands of customers and attention to customer behavior can ultimately
improve customer satisfaction and loyalty. Deshpande, et al. (1993) concluded that customer orientation is
positively related to customer satisfaction. Madina research results (2011) show that there is a positive and
significant relationship between customer orientation and customer satisfaction. Chee research results and Peng
(1996) showed that the perceived level of customer orientation within the sales organization affects the level of
buyer satisfaction. Based on these findings, the hypothesis of this study are:
H2: Customer Orientation has positive effect on customer satisfaction
Effect of Customer Satisfaction to Customer Loyalty
Customer satisfaction often regarded as a major determinant of loyalty (Dick and Basu, 1994).
However, empirical evidence is rather diverse. For example, some studies failed to provide a strong link
between customer satisfaction and loyalty (eg, Khatibi et al., 2002; Stoel et al., 2004). Others suggest that the
satisfaction-loyalty relationship is indirect and complex (eg, Anderson and Mittal, 2000; Magi, 2003).
According to Chang, and Chang (2010) believe it is important for organizations to improve customer
satisfaction because it leads to loyalty. Customer satisfaction is a prerequisite for achieving customer loyalty.
Highly satisfied customers remain loyal to the company's products for a longer period of time. Based on the
description above hypothesis in this study are:
H3: Customer Satisfaction has positive effect on Customer Loyalty
III. Methodology
This study uses the approach of causality to see the causality of the observed variables is the variable
customer orientation, the orientation of the supply chain, customer satisfaction and customer loyalty.
Variables and Measurement Variable
1. The definition of the concept
a. Supply Chain Orientation
Behavior to establish cooperative relations between the two companies or more interdependent to
achieve shared interests and goals (Schulze et.al, 2014),
b. Customer Orientation.
The extent to which a business unit of acquiring and using information from customers, develop a
strategy that will meet customer needs, and implement strategies that are responsive to the needs and desires of
customers Jeon and Hong (2007).
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c. Customer satisfaction
Customer satisfaction is feeling good nuances of the customer arising as a result of customers'
perception of the performance of the right products or services in accordance with expectations (Liang and
Zhang, 2012)
d. Customer loyalty
The strength of the relationship between the provider of the service / product / brand with customers
consistently resulting in customers will be willing to re-use the product / service / brand of service providers in
the future as well as recommend to others to use the service / product (Pan, et. al., 2012).
Operational definition
Table 1Operational research variable
VARIABLE INDICATOR Item Statement
SUPPLY CHAIN Vertical orientation Cooperation (ORP1) ORP1
ORIENTATION (ORP)
Schulze et.al (2014), Orientation Purpose Joint (ORP2) ORP2
Mentzer (2001).
CUSTOMER Customer proximity (OP1) OP1
ORIENTATION (OP)
Jeon and Hong (2007), Dalgic Flexibility Customer (OP2) OP2
(2013). Ease of information (OP3) OP3
CUSTOMER Cooperation (KP1) KP1
SATISFACTION (KP)
Adaptation of Cambra et.al Freedom of Information (KP2) KP2
(2008), Kotler (2014). Trust (KP3) KP3
The quality of relationships (KP4) KP4
CUSTOMER LOYALTY Long-Term Relationship (LP1) LP1
(LP)
Recommend to Other Partners (LP2) LP2
Zeithaml et al (1996),
Keiningham et al (2007), Willing to put on another product and the price LP3
Kotler and Keller (2009). premium (LP3).
Population and Sample
The population in this study were all customers of flavor products in Indonesia, customers sample
products good sweet flavor category, located in Indonesia. From the results of the election, this sample is
numbered 154 respondents.
Measuring instrument used in this study is a questionnaire using adjectives bipolar approach so that the
response generated an interval scale (Ferdinand 2014: The rating scale. 206). Items instrument in the form of a
statement or question in score in ten levels from 1 to 10 on the respondents' answers.
IV. Result and Discussion
Normality Testing Data
Evaluation of the normality of data using critical ratio value of skewness value equal to 1.625 at a
significance level of 0.01 (1%). Data is said to be normally distributed if the value of skewness critical ratio
value below ± 2.58 (Ghozali, 2005). Thus, the data that is used meets the requirements of normality.
Confirmatory Factor Analysis
ConfirmatoryFactorAnalysisperformedto
testwhethertheindicatorsusedtomeasurelatentvariableshave a highdegree of conformity. The
reliabilityindicatoris using the approachof constructreliability(CR) andvarianceextracted (VE). The
test results of each indicator latent variables are presented in the following table:
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Tabel2: Calculation of ConstructReliability and- Variance Extracted construct.
variables Indicator Loading ej ^ 2 CR Loading ^ 2 VE Information
OP OP1 .584 0,105 0.341
OP2 0.797 0.149 0.635
OP3 0,816 0.18 0.666
2,197 .434 0.918 1,642 0.791 Good
ORP ORP1 .811 0,217 0.658
ORP2 .837 0.206 .701
1,648 0.423 0.865 1.358 0.763 Good
KP KP1 0.685 0.214 0.469
KP2 .709 0.149 0.503
KP3 0.734 .124 .539
KP4 0.57 .224 0.325
2,698 0,711 0.911 1,836 0.721 Good
LP LP1 .614 0,146 .377
LP2 0,700 .240 .490
LP3 .675 0,145 .456
1,989 0,531 .882 1,323 0.714 Good
Construct Reliability of the latent variable indicator recommended above 0.7 andthe Variance Extract
is above 0.5. According to the table above, each variable has been represented by the indicator.
Test Results Goodness-of-fit-Model
Analysis of the data processing at the stage of full model SEM carried out to test the suitability and
statistical tests. The test results goodness-of-fit model is described in Table 3.
Tabel 3. Results of Goodness-of-fit model test
No. Index Critical Value Result Evaluation Model
1 Chi-Square Expected to be small 54,702 Value54.702<67.50
For df50=67.50 Good fit
2 Probability level ≥ 0,05 0,301 Good fit
3 CMIN/DF <2,00 1,094 Good fit
4 CFI ≥ 0,95 0.992 Good fit
5 RMSEA ≤ 0,08 0,025 Good fit
6 TLI ≥ 0,90 0,990 Good fit
7 GFI ≥ 0,90 0,943 Good fit
8 AGFI ≥ 0,90 0,912 Good fit
Source: Data Processed From 2019 Research Results
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Structural Model
Figure 2. Structural Model
Fig. 2 shows that the output of the results of hypothesis testing are as follows, in the hypothesis H2,
Customer Orientation has a positive effect on customer satisfaction with the significant level of 0,000, the value
of the parameter estimate of 0.527, that any increase in a unit of Customer Orientation can improve customer
satisfaction by 0.527. The results are consistent with research conducted byDeshpande, et al. (1993) concluded
that customer orientation is positively related to customer satisfaction. Madina research results (2011) show that
there is a positive and significant relationship between customer orientation and customer satisfaction. Chee
research results and Peng (1996) showed that the perceived level of customer orientation within the sales
organization affects the level of buyer satisfaction.
In the hypothesis H1, Supply Chain Orientation has a positive effect on customer satisfaction with the
significant level of 0,000, the value of the parameter estimates of 0.488, that every one unit increase in the
supply chain orientation can increase customer satisfaction by 0.488. The results are consistent with the opinion
of Botha and Waldt in Ganika Gerry (2016) which states that trust, commitment, satisfaction interrelation and
the same control on decisions is an essential indicator and is closely related to the strategic relationship between
organizations. Satisfaction is determined by affection and emotion is a response conceptualization of
expectations are met. Therefore, if a company has a clear supply chain orientation, then the expectation of
achieving the operational performance through collaboration in the supply chain will be higher, so the
interrelation satisfaction in supply chain management will be positively affected.
Tabel3. Results Hypothesis Test
Estimate S.E. C.R. P Label
KP <--- ORP .488 .077 5.112 *** par_8
KP <--- OP .527 .177 4.739 *** par_9
LP <--- KP .831 .104 5.685 *** par_10
Hypothesis H3, customer satisfaction has a positive effect on customer loyalty with a significant level
of 0,000, the value of the parameter estimates of 0.831, that every one unit increase in customer satisfaction
can increase customer loyalty by 0.831.
The results support the idea Chang and Chang (2010) which states Customer satisfaction is a
prerequisite for achieving customer loyalty. Highly satisfied customers remain loyal to the company's products
for a longer period of time but not in line with the results of the study by Khatibi et al., 2002; Stoel et al., 2004,
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which failed to show a strong link between customer satisfaction and loyalty as well as Anderson and Mittal,
2000; Magi, 2003 demonstrated that satisfaction and loyalty has indirect and complex relationship.
Direct and Indirect Effect
Based on a model, the influence of each latent variable directly (standardized direct effect) or indirect
(standardized indirect effect) as well as the total effect (standardized total effect) are summarized in the
following table:
Table 4.The Influence of Customer Orientation and The Orientation of the Supply Chain to Customer
Satisfaction
Variables The direct effect Indirect Influence Total Effect
OPKP 0,527 - 0,527
ORPKP 0,488 - 0,488
KPLP 0,831 - 0,831
OPLP - 0,438 0,438
ORPLP - 0,406 0,406
The amount of influence each latent variable directly (standardized direct effect) or indirectly
(standardized indirect effect) as well as the total effect (standardized total effect) is described as follows:
The regression coefficient of direct influence of Customer Orientation on Customer Satisfaction (0.527) is
greater than the direct effect of Supply Chain Orientation on Customer Satisfaction (0.488). Indirect influence of
Customer Orientation on Customer Loyalty (0.438) is greater than the indirect effect of the Supply Chain
Orientation on Customer Loyalty (0.406). In this model Customer Satisfaction is a mediating or intervening
variable, so there is no variable regression coefficient of Supply Chain Orientation to Customer Loyalty as well
as Customer Orientation to Customer Loyalty. According to Tuckman (in Sugiyono, 2007) variable intervening
is a variable that theoretically influences the relationship between independent variables and the dependent
variable becomes an indirect relationship and cannot be observed and measured. This variable is a variable
interrelator / between independent variables with dependent variables, so that the independent variable does not
directly affect the change or emergence of the dependent variable.
V. Conclusion
This study briefly and clearly structured to facilitate the understanding of the results of this study.
1) From the results of testing the variable Supply Chain Orientation has a significant positive effect on
Customer Satisfaction. This means that the Supply Chain Orientation measured through indicators of vertical
cooperation orientation and shared goal orientation affect customer satisfaction.
2) There is a significant positive effect on the Customer Orientation variable on Customer Satisfaction. This
means that the Customer Orientation as measured by indicators of customer proximity, customer flexibility and
ease of information has an effect on customer satisfaction.
3) There is a significant positive effect on Customer Satisfaction variables on Customer Loyalty. This means
that Customer Satisfaction as measured by indicators of cooperation, information disclosure, trust and quality
of relationships influence Customer Loyalty.
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