Predictors of Customer Loyalty in Business to Business Trading

ABSTRACT The changing world motivates companies to use intermediaries to ensure their distribution channels are efficient and effective. Many firms serve as intermediaries in delivering products and services to other business organizations. This is known as business to business trading. In business to business (B2B) trading the company becomes an agent to deliver goods to another company. They resell the product to others without transforming or modifying the products. This research was conducted at Petrucom Sdn Bhd Terengganu, a supply based company who is facing challenges in building long-term relationship with their customers. Most of Petrucom Sdn Bhd customers' are not repeated customers. Therefore, this paper focuses on the factors that contribute to customer loyalty in Petrucom Sdn Bhd. Among the factors highlighted that may influence customer loyalty are responsiveness, communication, trust and customer satisfaction. The results of the study indicated that the most significant factor influencing customer loyalty is customer satisfaction. Customers will make repeated purchases when they are satisfied with the service or product offered. In conclusion, the company should be focusing on how to ensure customers are satisfied with their services whether its' good quality, affordable price, minimizing mistakes, ease in communicate and high responsiveness in creating customer satisfaction