THE ROLE OF COMMITMENT AND RELATIONSHIP SATISFACTION ON FRANCHISEE LOYALTY / The Role Of Commitment And Relationship Satisfaction On Franchisee Loyalty

Year 2020, Volume: 4 Issue: 2, 353 - 360, 30.10.2020

Rusni Rusman Abdullah Sanusı Ikawati Karım

https://doi.org/10.29216/ueip.661441

Abstract

This study aims to examine the influence of commitment and relationship satisfaction on franchisee loyalty through the level of importance of each variable dimension. It gives new perspective of how to reach franchisee loyalty through each dimension of commitment and relationship satisfaction. Dimensions of variable are focused on franchising and from franchisee perspective namely: franchisor attitude, raw material, payment method, franchisor support. Data is collected from questionnaire of 52 respondents and analyzed with multiple linear regression. The results of regression coefficient indicate that commitment has a significant effect by 0,014 which is lower than relationship satisfaction 0,473. The F test shows that commitment and relationship satisfaction jointly influence franchise loyalty while regression coefficient of R Square is 0,883. It indicates that the variable commitment and variable relationship satisfaction together affect the variable franchisee loyalty of 88.3%. This result explains that commitment and relationship satisfaction are two important variables in maintaining franchisee loyalty.

Keywords

commitment, relationship satisfaction, franchisee loyalty, Franchise

References

• Crooneen, P.M.E., Broekhuizen, T.L.J. (2017). How Do Franchisees Assess Franchisor Trustworthiness?. Journal of Small Business Management. 57(3), 845-871.
• Davies, P., Lassar, W., Manolis, C. Prince, M., & Winsor, D. (2011). A Model of Trust and Compliance in Franchise Relationship. Journal of Business Venturing, 26(3), 321-340.
• Evans, J.R. dan Laskin, R.L. (1994). The Relationship Marketing Process: A Conceptualization and Application. Industrial Marketing Management, 23, 439-452.
• Evanschitzky, H., Caemmerer,B., Backhaus, C. (2016). The Franchise Dilemma: Entrepreneurial Characteristic, Relational Contracting and Opportunism in Hybrid Governance. Journal of Small Business Management, 54 (1), 279-298.
• Hennig-Thurau, T., Gwinner, K.P. dan Gremler D.D. (2002). Understanding Relationship Marketing Outcomes. Journal of Service Research, 4 (3), 230-247.
• Jambulingam, T. and Nevin, J. (1999). Influence of Franchise Selection Criteria on Outcomes Desired by The Franchisor. Journal of Business Venturing, 14 (4), 365-95.
• Kirby, D. and Watson, A. (1999). Franchising as A Small Business Development Strategy: A Qualitative Study of Operational And “Failed” Franchisors in The UK. Journal of Small Business and Enterprise Development, 6 (4), 341-349.
• Kwon, I.G., Suh, T. (2005). Trust, Commitment and Relationship in Supply Chain Management: A Path Analysis. Supply Chain Management: An International Journal, 10 (1), 26-33.
• McDonnell, John, Beatson, Amanda T., & Huang, Chih-Hsuan. (2011). Investigating Relationships Between Relationship Quality, Customer Loyalty and Cooperation: An Empirical Study of Convenience Stores’ Franchise Chain Systems. Asia Pacific Journal of Marketing and Logistics, 23 (3), 367-385.
• Meek, W. R., Davis-Sramek, B., Baucus, M. S., & Germain, R. N. (2011). Commitment in Franchising: The Role of Collaborative Communication and a Franchisee’s Propensity to Leave. Entrepreneurship: Theory and Practice, 35(3), 559–581. https://doi.org/10.1111/j.1540-6520.2011.00445.x
• Ministry of Trade of Republic of Indonesia. (2019). https://www.kemendag.go.id, downloaded on 30 October 2019
• Nam, J., Ekinci, Y., Whyatt, G. (2011). Brand Equity, Brand Loyalty and Consumer Satisfaction. Annals of Tourism Research, 38 (3), 1009-1030
• Ndubisi, O. (2007). Relationship Marketing and Customer Loyalty. Marketing Intelligence & Planning, 25 (1), 98-106.
• Roh, E. Y., & Yoon, J. H. (2009). Franchisor’s Ongoing Support and Franchisee’s Satisfaction: A Case of Ice Cream Franchising in Korea. International Journal of Contemporary Hospitality Management, 21(1), 85–99, https://doi.org/10.1108/09596110910930205
• Rusman, R. Y., & Ikawati, K. (2017). The Influence of Relationship Marketing among Franchisee and Franchisor in Fried Chicken Local Franchise. International Journal of Social Sciences and Development, 1 (2), 163-169.
• Wright, O., & Grace, A. (2011). Trust and Commitment Within Franchise Systems: An Australian And New Zealand Perspective. Asia Pacific Journal of Marketing and Logistics, 23(4), 486–500, https://doi.org/10.1108/13555851111165048