The Effect Of Tariff, Infrastructure, And Distance On Customer Retention At Belawan Container Depo

Abstract

This study aims to study and analyze the following factors: tariff, infrastructure, distance, type, and structure on customer retention with word of mouth as a moderating variable at Belawan Container Depot. The population of this study is consumers of Belawan Container Depot. For this study, the sample used was 150 respondents, taken through a purposive sampling technique. Data was analyzed using the Structural Equation Model Partial Least Square (SEM PLS). The results showed that infrastructure and structure had a positive and significant effect on customer retention, but tariff, distance, and type did not significantly affect customer retention. Word of mouth was also able to moderate the negative and significant impact of tariffs on customer retention and the positive and significant impact of type. Infrastructure, such as distance and structure, do not affect customer retention, although moderated by word of mouth. To increase customer retention, the rates offered must be reasonable, the types of services and products offered must meet customer needs, the existing work processes must be carried out well, and the existing facilities must be comfortable.