Analysis of the Effect of Value Co-Creation and Service Quality on Customer Loyalty with Customer Engagement as a Mediation Variable on Le Minerale Consumers in Semarang City
Abstract
In an increasingly competitive environment, customer loyalty is a key factor in determining business sustainability. Loyal consumers not only make repeat purchases but also tend to recommend products to others. Therefore, companies are required to understand the factors that can influence the formation of customer loyalty, especially in the AMDK industry such as Le Minerale which competes with other major brands in Indonesia. One factor thought to play a significant role in shaping customer loyalty is value co-creation. This concept emphasizes that customers are not merely recipients of value but also active participants in creating shared value with the company. Through interaction, feedback, and involvement in product development, customers can feel a stronger connection with the brand. Besides value co-creation, another equally important factor is service quality. Service quality is a fundamental aspect in building positive consumer perceptions of a product. Good, consistent service that meets customer expectations creates a satisfying experience, which can increase customer trust and loyalty to a particular brand. In the context of modern marketing, a company's success is not only determined by the quality of its products, but also by the company's ability to create customer engagement. Customer engagement reflects the level of emotional, cognitive, and behavioral attachment consumers have to a brand that is formed through ongoing interactions. Customer engagement become an important bridge that connects customer experience with purchasing decisions and loyalty. The higher a customer's engagement with a brand, the more likely they are to continue using that product long-term. This demonstrates that customer engagement plays a strategic role in building long-term relationships between companies and consumers. Previous research shows that value co-creation and service quality have a significant influence on customer engagement.
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