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.