Focus on Two Points Toward Loyalty: Analysis of A Vehicle Workshop Business

Abstract

In line with the increasing number of motor vehicles, competition is also fierce in the small motor vehicle workshop industry in rural areas. Despite being favored for its straightforward management style and constant innovation to retain customers, field data reveals that motor vehicle customers have no other choice but to accept the services and prices set by the workshop. The purpose of this research is to identify two key factors that dominate customer loyalty in this business: service and/or price, which lead to loyalty. Based on observations in the Gunung Jati Cirebon area, we conducted the research at the busiest workshop. The population consists of all vehicle owners who pass through the workshop, the number of which is unknown because the workshop owner does not have a database of customers, whether local or from outside the city. Therefore, using the Lemeshow formula, we selected a sample of 97 people over approximately 2 months. The data collection methods used were observation, questionnaires, and documentation. We analyzed the data using the JASP version 0.18.3.0 statistical software. The results of this study indicate that there is a positive and significant influence between the independent variables (X1 Service and X2 Price) and the dependent variable (Y Loyalty). In other words, both X1 Service and X2 Price, either partially or simultaneously, have a significant impact on Y Loyalty. The ANOVA results conclude that the regression model as a whole is significant. This means that changes in the independent variables (X1 Service and X2 Price) can explain a lot of the changes in the dependent variable (Y Loyalty). This means that both X1 Service and X2 Price have a big effect on Y Loyalty. Understanding that prices and services are two things that make customers want to come back to the Gunung Jati Motor Cirebon workshop for repairs is important. This serves as a reminder for the workshop owner to work on improving customer service and employee skills, which will make the supply and demand law in Islamic economics more reliable. The implications of the research provide strategic recommendations for retail workshop business operators to enhance competitiveness and retain customers in the long term.