A study of factors that affect consumer loyalty in automotive financing company based on structural equation modeling and text mining

Aninda Maharani, Isti Surjandari Prajitno, Sya'Bandi Doli, Erlinda Muslim, Adila Afifah

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

The economy of Indonesia has been growing by leap and bound, and large portion of the population are shifting from lower-class consumer into the middle-class and affluent consumer socioeconomic category. That condition increases the purchasing power of middle-class consumer over the goods, including automotive products. In consequence, all of automotive products sales have increased significantly from 2009 until 2013. The raising number of automotive products sales in Indonesia was followed by the growth of consumer financing. From 2009 until 2013, 26 new business licenses have been established. As competition in the financing industry is getting tight, the financing companies have to conduct some efforts in order to retain its customer loyalty. Customer loyalty is important for business sustainability. The Structural Equation Modeling (SEM) and Self-Organizing Map (SOM) approach are applied to find factors affecting customer loyalty. Consumer's concern based on aspirations and complaints were then identified by using text-mining. SOM will cluster the aspirations and complaints of the customers into several groups. Consumer satisfaction affects customer loyalty and it also directly affected by consumer perceived value. The contribution of this research is combining structural equation modeling with text mining.

Original languageEnglish
Title of host publicationProceeding - 2017 3rd International Conference on Science in Information Technology
Subtitle of host publicationTheory and Application of IT for Education, Industry and Society in Big Data Era, ICSITech 2017
EditorsRafal Drezewski, Goutam Chakraborty, Shah Nazir, Lala Septem Riza, Ummi Raba'ah Hashim, Aji Prasetyo Wibawa, Yaya Wihardi, Andri Pranolo, Enjun Junaeti, Shi-Jinn Horng, Heui Seok Lim, Leonel Hernandez
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages84-89
Number of pages6
ISBN (Electronic)9781509058662
DOIs
Publication statusPublished - 12 Jan 2018
Event3rd International Conference on Science in Information Technology, ICSITech 2017 - Bandung, Indonesia
Duration: 25 Oct 201726 Oct 2017

Publication series

NameProceeding - 2017 3rd International Conference on Science in Information Technology: Theory and Application of IT for Education, Industry and Society in Big Data Era, ICSITech 2017
Volume2018-January

Conference

Conference3rd International Conference on Science in Information Technology, ICSITech 2017
Country/TerritoryIndonesia
CityBandung
Period25/10/1726/10/17

Keywords

  • consumer financing industry
  • consumer loyalty
  • data mining
  • structural equation modeling
  • text mining

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