Journal of Marketing Management and Consumer Behavior, Vol.

2, Issue 3 (2018) 15-23

The Effect of Customer Relationship Marketing

(CRM) on Customer Satisfaction: A study on
Sound System Service Company
Lusiah Lusiah a,*, Djatmiko Noviantoro b
a
Sekolah Tinggi Ilmu Ekonomi IBBI, Medan, Indonesia
b
Universitas Tridinanti, Palembang, Indonesia

ARTICLE INFO ABSTRACT

Article History When the company has expended their marketing online,
Submitted 26 Jul 2018 it means the company is ready to sell product and service
Accepted 06 Aug 2018 across cities and the world. Online marketing also leads
Available online 10 Aug 2018 to reduced interaction between seller and buyer directly
(face-to-face meetings). Therefore, company needs to
JEL Classification well establish their relationships with customers through
D11 the Internet network. By establishing a good relationship
M31 through intensive communication provides a great
opportunity to the interests of sellers and buyers. This
Keywords study aims to determine the effect of customer
Customer Relationship Marketing relationship marketing (CRM) which divided into four
Trust
dimensions of trust, commitment, communication, and
Commitment
Communication
conflict handling on customer satisfaction on the sound
Conflict Handling system service company. This research is quantitative
Customer Satisfaction descriptive research and the method of this research is
using multiple linear regression analysis. The population
in this research are the customers who have ever used the
services of sound system services company in Medan
with samples as much as 60 respondents. The results
show that simultaneously customer relationship
marketing influence customer satisfaction of sound
system services company, in this model communication
give negative and significant impact on customer
satisfaction.

Journal of Marketing Management and Consumer Behavior

*Corresponding Author:
lusiah79@gmail.com

Author(s) retain copyright of the submitted paper (Please view the Copyright Notice of JMMCB).

This work is licensed under a Creative Commons Attribution 4.0 International License.

Journal of Marketing Management and Consumer Behavior (ISSN-Canada: 2371-3615)

16 Lusiah et al. / Journal of Marketing Management and Consumer Behavior, Vol. 2, Issue 3 (2018) 15-23

1. Introduction

It can not be denied that along with advances of the world of informations and
communications technology, the selling of a products or services was no longer difficult
things to do. By utilizing the current technology, the company can disseminate information of
a product or service only with internet connections that connected to the whole world. This
new form of online marketing is now causing the change of customer lifestyle that become
more critical and careful in choosing what products or services they want. This causes the
company need to think about the sustainability of the company so that products or services
will be available and accepted in the market and also valued as a quality product and service.

When the company has been doing marketing by online, it means that the company is ready
to sells products and services throughout the city and the world. Online marketing also leads
to reduced interaction between seller and buyer directly (face-to-face meetings). Therefore,
companies need to well establish the relationship with customers through the Internet
network. By establishing a good relationship through intensive communication provides a
great opportunity to the interests of sellers and buyers. The seller is concerned to ensured that
the products sold are known to the public by communicative communications, while the
consumer needs what they seeks through marketing communications conducted by a
company.

If companies do not want to learn the customer and do not want to know or build
relationships with them, will fail their identity on customers. Sound system service company
is a company engaged in services that offer rental services sound system tools and music
players. The company will arrange all forms of sound and music according to consumer
demand in important events, weddings, gathering, competitions, art festivals, and many
others. Not infrequently, consumers also choose to just rent just the music instruments and
tools only.

Most customers not directly know that there are companies that offer sound system services.
This is because the marketing services of sound system is still not following the development
of marketing, and some of sound system service company attached to the event organizer so
that the name of the sound system service company dimmed. Less developed marketing
indirectly makes the company not growing. The company will only wait for a call and not be
educated in marketing services. This also leads to less direct relationships between seller and
buyer.
Lusiah et al. / Journal of Marketing Management and Consumer Behavior, Vol. 2, Issue 3 (2018) 15-23 17

2. Literature Review

Customer Relationship Marketing CRM)

According to Velnampy and Sivesan (2012) Relationship marketing is one of contemporary

marketing strategies for all companies to see the needs and desire of their customer. From the
customer's point of view, the important factors that used to meet customer needs are trust,
commitment, mutuality, and long-term relationships with customers. There are 4 keys in
relationship marketing: Trust, Equity, Empathy, Commitment. Meanwhile, there are 4 factors
that impact relationship marketing, such as Trust, Commitment, Communication and Conflict
Handling (Sivesan, 2012).

Customer Satisfaction

Lupiyoadi (2012: 228) said that Customer satisfaction is the final feeling in which a person
declares what their feels by compared the performances of service products with the
expected. The main factor determinant of customer satisfaction is customer perception on
service quality. Satisfaction is not only obtained when getting a purchased item, but also
influenced by service. According to Lupiyoadi (2012), also defined as an activity in all
business areas that needs to combine sales of services to meet customer satisfaction ranging
from ordering, processing, to delivering services through communication to strengthen
cooperation with customers. Satisfaction is not only obtained when getting a purchased item,
but also influenced by the service.

According to Kotler (Laksana ,2008), service is the action or activity which offered by a
party to another party, which is essentially intangible and does not result in any ownership.
Customer service can be called as the process of fulfilling the needs, that is the process to
meet customer demand as a whole (Siagian, 2005). Hawkins and Lonney quoted in Tjiptono
(2004, p.101) dimension of satisfaction consisting of Conformity expectations, Returning
interest, Willingness recommending.

Conceptual Framework

Based on the literature review described above regarding customer relationship marketing
variables and customer satisfaction then the following is the theoretical framework that will
be applied in this research:
18 Lusiah et al. / Journal of Marketing Management and Consumer Behavior, Vol. 2, Issue 3 (2018) 15-23

Figure 1
Conceptual Framework

3. Research Methodology

This research uses quantitative descriptive method. According to Azwar (2007, p. 5)

quantitative descriptive type is to emphasize his analysis on the numerical data (numbers) are
processed by statistical methods. This study was conducted to find out how big independent
variables affect the dependent variable.

The population in this study are customers who have ever used the services soundsystem that
as many as 150 customers. Sampling technique in this research using Slovin formula with the
level of error to be tolerated in the sampling is 10% and the results obtained are 60 people are
the customers who have ever used the services soundsystem in the city of Medan. To
determine the sample that will be used in this research, the researcher uses nonprobability
sampling sampling technique that is, subjective, based on the availability of respondents, by
purposive sampling method that is sample determination technique with certain
consideration.

Data analysis model in this research using multiple linear regression. To know the influence
of Customer Relationship Marketing (CRM) to customer satisfaction and will be calculated
with the help of Statistical Product and Service Solution (SPSS) software version 18 with
formula:

Y = a + b1X1 + b2X2 + b3X3 + b4X4 + e

Lusiah et al. / Journal of Marketing Management and Consumer Behavior, Vol. 2, Issue 3 (2018) 15-23 19

4. Result and Discussion

Multiple linear regression analysis used to know how much the effect of independent variable
that is Customer Relationship Marketing which divided into four indicators that is trust,
commitment, communication, and conflict handling to dependent variable that is Customer
Satisfaction. Based on Table 4.1, the Multiple Linear Regression equation in this study are:

Table 4.1
Multiple Linear Regression Test

Source: Data Analysis, 2017.

Based on the result of hypotheses test the formula of multiple linear regression is:

Y= 10,543 + 0,457X1 + 0,621X2 - 0,741X3 + 0,777X4

The interpretation are:

a. Constanta a of 10,543 states that if the variable of Customer Relationship Marketing

(CRM) divided into trust, commitment, communication and conflict handling are
considered constant, then Customer Satisfaction is 10,543.
b. The coefficient b1 of 0.457 states that if there is any increase of one unit to the variable of
trust and commitment, communication and conflict handling are considered constant, then
the customer satisfaction will experience an increase of 0.457.
c. The coefficient b2 of 0.621 states that if there is any increase of one unit to the variables
of commitment and trust, communication and conflict handling are considered constant,
then customer satisfaction will experience an increase of 0.621.
d. The coefficient b3 of -0.741 states that if there is an increase of each one unit to the
communication and trust variables, commitment and conflict management are considered
constant, then the customer satisfaction will decrease by 0.741.
e. The coefficient b4 of 0.777 states that if there is an increase of each one unit to the
variable handling of conflict and trust, commitment and communication are considered
constant, then the customer satisfaction will experience an increase of 0.777.
20 Lusiah et al. / Journal of Marketing Management and Consumer Behavior, Vol. 2, Issue 3 (2018) 15-23

Table 4.2
Summary of Result of Test of Hypotheses
Variable T-test Sig. F-test R-Square

Trust 2,068 ,043

Commitment 2,323 ,024

5,492 0,285
Communication -3,030 ,004

Conflict Handling 2,876 ,006

Source: Data Analysis, 2017.

Therefore, H1 is accepted hence it is proved that there is a positive and significant impact of
trust over the customer satisfaction. Moreover, H2 and H4 is also accepted that there is a
positive and significant relationship between commitment and conflict handling to customer
satisfaction of soundsystem service company. Through these results can also be seen that H3
is accepted with the value of t-test is negative, it means that communication have negative
and significant impact over the customer satisfaction. The value of F Test is 5,492 with sig.
<0.05 which means that customer relationship marketing simultaneously affect the customer
satisfaction of sondsystem servic company. Conflict handling as a variable that has a more
dominant influence in influencing customer satisfaction, and can be seen from the beta value
of 77,7%.

The results of hypothesis testing proved that there is a effect between trust and customer
satisfaction. These results support by previous research of Diza, et al (2016) and Putri (2015)
whom tested the effect of trust on customer satisfaction and foind that trust give positive and
significant influence to customer satisfaction. The result of hypothesis testing proved there is
influence between commitment to customer satisfaction, which means that hypothesis in this
research accept H2, It means that there is positive influence between Variable Commitment
to Customer Satisfaction. This is in accordance with the initial predictions (hypothesis), that
the higher the company's commitment to customers and service then the customer
satisfaction will also increase. Commitment is a pledge or a promise of the company to
continue to maintain good relationships with consumers (Safitri, 2011; Putri, 2015).

The result of hypothesis testing proved that there is an effect between communications to
customer satisfaction. However, the effect of communication on customer satisfaction is
negative influence, which the result of calculation is t-test equal to -3,030 with result
significance level equal to 0,004 < 0,05. This result also refers to the results of questionnaires
Lusiah et al. / Journal of Marketing Management and Consumer Behavior, Vol. 2, Issue 3 (2018) 15-23 21

that have been disseminated by researchers, which the researchers found that the three
statements of the communication dimension of communicating well and honestly,
exchanging opinions on the success of the event with consumers, and receiving with good
consumer complaints have scores below the average score. average. The results of this study
are not in accordance with research by Safitri (2011); Ercis (2013); Putri (2015) who found
that communication has a significant and positive impact on customer satisfaction. Similarly,
research by Kyei (2016) found in his research that communication is an important builder
variable in which effective communication builds positive interactions and improves the
quality of customer relationships.

The results of the fourth hypothesis test proved that there is an effect of Conflict Handling on
Customer Satisfaction, which means that the hypothesis in this study accept that there is a
positive influence between Conflict Handling Variables on Customer Satisfaction (Safitri,
2011; Ercis, 2013; Putri, 2015) .

5. Conclusion and Suggestion

Conclussion

Based on the results obtained in research on the influence of Customer Relationship

Marketing (CRM) to Customer Satisfaction on sound system service company which is then
analyzed by using multiple linear analysis, it can be drawn conclusion that is:

1. The first dimension in Customer Relationship Marketing (CRM) is Trust has a positive
and significant impact on customer satisfaction.
2. The second dimension in Customer Relationship Marketing (CRM) is Commitment has a
positive and significant influence on customer satisfaction.
3. The third dimension in Customer Relationship Marketing (CRM) is Communication has a
negative and significant influence on customer satisfaction.
4. Fourth dimension in Customer Relationship Marketing (CRM) that is Conflict Handling
(Conflict Handling) has a positive and significant influence on customer satisfaction.
5. Customer Relationship Marketing consisting of Trust, Commitment, Communication and
Conflict Handling together (simultaneously) affect Customer Satisfaction.
22 Lusiah et al. / Journal of Marketing Management and Consumer Behavior, Vol. 2, Issue 3 (2018) 15-23

Suggestion

Based on the above conclusions, then the suggestions that can be given by researchers are:

1. Commitment and conflict management that is well maintained by the company reflects
how professional the company is in delivering its services. Based on the distribution of
questionnaires conducted by researchers there is a low score of the average on one of the
statements of the dimension. This needs to be a concern for the company to continue to
provide the best performance and service for consumers. Consumers who are satisfied
will indirectly be loyal.
2. Communication is a dimension of CRM that has a negative effect on customer
satisfaction. Through this it can be seen that the communication that is interwoven
between the company soundsystem with consumers can still be said to be weak. This
needs to be improved by the company for service improvement and subsequent consumer
satisfaction.
3. For the next researcher, the result of this research shows that the influence of Customer
Relationship Marketing (CRM) consisting of four dimensions namely belief,
commitment, communication and handling of koflik affect customer satisfaction is only
23.3%. These results are classified as small or small. Furthermore, previous researchers
should consider other variables that may be incorporated into the model or look for
different research objects to see results that may be used as a comparison material.

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