The Influence of Customer Satisfaction on Trust, Word of Mouth,

and Repurchase Intention: Case for Consumer of Souvenir Stores in

Yogyakarta

Miswanto Miswanto and Yessi Ria Angelia

YKPN School of Business (STIE YKPN), Yogyakarta, Indonesia

Keywords: Customer Satisfaction, Repurchase Intention, Trust, Word of Mouth, and Souvenir Store.

Abstract: The problems in this research are 1) whether consumer satisfaction has an effect on consumer's trust, 2)

whether consumer's satisfaction influences by word of mouth, and 3) whether consumer satisfaction has an

effect on repurchase intention. This research examines the influence of customer satisfaction on repurchase

intention, trust, and word of mouth on customers of souvenir store in Yogyakarta. Selection of the sample in

this study is done by using purposive sampling with one criterion: they have shopped in souvenir stores in

Yogyakarta. Data were collected by using questionnaires, and 200 souvenir store customers participated in

this study. The data were analyzed by using Structural Equation Modeling (SEM) with Amos computer

program. The results show that customer satisfaction has a positive influence on repurchase intention, trust,

and word of mouth.

1 INTRODUCTION

Yogyakarta is a tourism destination. Tourists

visiting Yogyakarta are interested in buying

traditional foods of Yogyakarta. Tourists visiting

Yogyakarta continue to grow and develop. Tourism

development in Yogyakarta affects the economy of

the people of Yogyakarta. Various businesses in

Yogyakarta develop along with the increasing

number of tourists coming to Yogyakarta.

Businesses in hospitality, culinary, souvenir shops

and entertainment venues continue to grow. Not

only do the number of food shops increase, but

souvenir store or shops also increase in number. The

stores offer a variety of products with good quality.

Increasingly competitive business competition

makes companies require good marketing strategy.

Consumer satisfaction is related to what is given

by the company that is service and product quality.

The ability of companies to serve consumers is one

of the success factors of a business. When things are

expected by consumers to be fulfilled by the

company, consumers will feel satisfied and share

their good experiences with others. Continuous

consumer satisfaction is the company's goal to keep

the company going (Hadiati and Ruci, 1999).

Especially in an increasingly competitive market

environment, businesses compete with each other,

and companies are driven to satisfy consumers.

Consumer satisfaction has influence on: 1)

consumer trust, 2) word of mouth, 3) repurchase

intention. These three things are very important for

companies in marketing their products to sustain the

company's success in achieving its goals. Because

these three things are very important in conducting

marketing strategy, empirical research on the effect

of customer satisfaction on these three things is very

necessary.

With the trust of consumers that the products

purchased are satisfactory, the services provided

should also be in line with consumer expectations.

Trust from consumers can build good image, brand,

symbol, product, and company name. There are

many advantages to the company when consumers

feel very satisfied. This can reduce consumer

turnover, reduce marketing costs, increase customer

loyalty, and improve corporate reputation. With the

existence of customer satisfaction, companies can

still exist and retain consumers. Knowledge of

consumer characters can help marketers influence

consumers to stick to their products (Aryani and

Rosinta, 2010).

Currently, word of mouth can be one good way

of marketing. People are usually more confident

308

Miswanto, M. and Angelia, Y.

The Inﬂuence of Customer Satisfaction on Trust, Word of Mouth, and Repurchase Intention: Case for Consumer of Souvenir Stores in Yogyakarta.

DOI: 10.5220/0008492303080313

In Proceedings of the 7th International Conference on Entrepreneurship and Business Management (ICEBM Untar 2018), pages 308-313

ISBN: 978-989-758-363-6

with what others are saying than ads that appear in

various media. Although word of mouth is

considered a traditional strategy, it is a powerful

way to convince consumers. In marketing, the

product on the store, the sold product can provide

satisfaction for consumers as they will believe in the

manufacturer and shop that sell it. Consumers will

express satisfaction to their friends and colleagues.

Thus, consumer satisfaction encourages the creation

of positive word of mouth. Word of mouth is

composed of at least two consumers, they

communicate about brands, products, or services

(Sallam, 2014). Word of mouth (WOM) can

encourage people to do or buy anything that has

been done or purchased by someone else. It includes

everything that consumers tell others about

satisfaction or dissatisfaction, how the

characteristics of the goods or services are used,

even how the company treats its customers. WOM

communications affecting consumer decisions are

well documented (Brown et al., 2007). When a

consumer conveys WOM, both positive and

negative aspects will often affect other consumer

purchasing decisions. The positive WOM of the

consumer can provide benefits to the producers, and

vice versa. WOM is strongly influenced by

consumer satisfaction. Therefore, companies that

sell goods or services can take advantage of them.

Companies should continue to develop the quality

of goods or services so that what is conveyed by

consumers can be a positive message.

With consumer satisfaction, consumers are

willing to visit the souvenir shop again and again

which was visited previously. One of the most

effective ways to increase repeat purchase intention

is to provide services that meet customer

expectations (Kim, Kim, and Kim, 2009). The

purchase decision is an expression of satisfaction

and dissatisfaction of consumers (Kitapci et al.,

2014). Customer satisfaction can encourage re-

purchase intentions and consumers will return to

buy more products. It is important for companies to

improve the quality of service so that consumers are

satisfied and retained. When an existing customer is

satisfied with the services provided, consumer

loyalty will rise, so the intention to repurchase will

increase.

Based on the background of the problems

described above, the formulation of problems in this

research are 1) whether consumer satisfaction has an

effect on consumer's trust, 2) whether consumer

satisfaction influences word of mouth, and 3)

whether consumer satisfaction has an effect on

repurchase intention. The purpose of this study is to

examine the above three problems. This research is

expected to provide the following benefits: First,

this research is expected to increase knowledge and

add insight into thinking in the field of management

and marketing. Second, this research can add

thoughts and information to companies that want to

build customer satisfaction and increase trust, word

of mouth, and repurchase intention. Third, this

research is expected to increase knowledge and add

insight into thinking in the field of management

science and marketing. Fourth, this research can be

used as a reference in marketing research, especially

in the field of service quality, product quality,

consumer satisfaction, trust, and word of mouth,

especially related to goods or services that contain

local wisdom.

2 LITERATURE REVIEW AND

HYPOTHESES

The hypothesis to be developed in this study is

based on the following results of literature review.

Consumer satisfaction is the priority for the growth

of any organization. Satisfaction arises from

perceptions and expectations (Sabir et al., 2014).

Customer satisfaction will be fulfilled when what is

given by the company in accordance with what is

perceived by the consumer (Sriwidodo and

Indriastuti, 2010). Continuous customer satisfaction

is the goal of the company, so the company can

survive (Hadiati and Ruci, 1999).

Putro et al., (2014) defines customer satisfaction

as feelings or emotional assessment of consumers

against the use of products and services in which the

expectations of customers are met. Consumer

satisfaction is the main source of income and a

major key to winning market (Xia et al., 2009). All

business and marketing activities are certainly

aiming at customer satisfaction (Saeed et al., 2011).

Trust is the belief of a party that the other party

can meet their needs (Mosavi and Ghaedi, 2012).

With the confidence of the consumer, the consumer

has reached satisfaction at the highest level (Habib

and Aslam, 2014). Moreover, trust can also be

interpreted as loyalty or commitment of consumers

to the companies or products (Majid et al., 2013).

Rofiq (2007) states that consumer confidence is the

foundation of business.

Word of mouth (WOM) is a type of informal

communication that consists of at least two

customers as they communicate about brands,

products, or services (Sallam, 2014). It is inevitable

The Inﬂuence of Customer Satisfaction on Trust, Word of Mouth, and Repurchase Intention: Case for Consumer of Souvenir Stores in

Yogyakarta

309



that WOM is currently the main source of

information before consumers make purchasing

decisions (Lee and Cranage, 2014). WOM can be an

opportunity for the company. As such, the

relationship between companies and consumers

should be maintained (Gremler et al., 2001).

Lang and Hyde (2013) stated that WOM is a

concept that is able to attract attention. Putri and

Suhariadi (2013) mentioned that word of mouth is

an informal communication between people who are

not parts of the company and the recipient of

information about a brand, product, organization, or

services that have been felt. Dodds et al., (1991)

stated that when someone wants to buy something,

he/she is influenced by considerations and specific

impulse.

Repurchase intention is defined as the behavior

of consumers who buy the product over and over

again, without including the feeling in it (Wibowo et

al., 2013). Hellier et al., (2003) defined repurchase

intention as a consumer's decision to re-buy the

products in the same company. One of the most

effective ways to increase consumer repeat purchase

intention is to provide services that meet customer

expectations (Kim et al., 2009). If consumers are

loyal, those consumers will make repeat purchases.

The purchase decision is one expression of

satisfaction and dissatisfaction of consumers

(Kitapci et al., 2014).

Consumers who are satisfied with a product or

company will be loyal and can increase consumer

confidence in the product (Majid et al., 2013). With

the confidence, the consumer has reached

satisfaction at the highest level (Habib and Aslam,

2014). The more satisfied the consumers are with

what is given by the company, the more confidence

the consumers will have towards the company.

H1: Consumer satisfaction has positive influence on

trust.

Word of mouth is the main source of information

before consumers make purchasing decisions (Lee

and Cranage, 2014). Consumer satisfaction can

provide many benefits for the company, and

satisfied customers will spread the positive story

(word of mouth) and can be a mobile advertisement

for the company.

H2: Consumer satisfaction has positive influence on

word of mouth.

Putro et al., (2014) states that when consumers feel

satisfied, the consumer loyalty will appear, so

consumers will make repeat purchases in the future.

When consumers are satisfied, and then they want to

buy the same goods, the consumer will come back

to the store he/she had previously visited.

H3: Consumer satisfaction positively impact

repurchase intention.

These three hypotheses can be presented in a

research model as in Figure 1.

Consumer

Satisfaction

Repurchaseon

Intention

Wordof

Mouth

Trust

Figure 1: The Research Model.

3 RESEARCH METHODS

3.1 Source of Data and Sample

Selection

The data used in this study are primary data. The

sampling method is done by using purposive

sampling method. This method involves selecting

samples with a specific criteria. The criterion used

in the study includes respondents who have shopped

at a souvenir shop in Yogyakarta.

3.2 Data Analysis Method

The validity test is the first test in this study.

Validity testing is performed by using SPSS 22. The

question of validity of items is done by using factor

analysis. The item of questionnaire will be valid if it

reaches the loading factor of more than 0.5. The

second test is the test of reliability. Cronbach's alpha

score that is commonly used is larger than 0.5. The

greater the Cronbach's alpha score the better the

research instruments are. The third testing is

hypotheses testing using Structural Equation

Modeling (SEM) with Analysis Moment Structure

(AMOS).

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3.3 Operational Definition of Research

Variables

3.3.1 Consumer Satisfaction

Consumer satisfaction is related to the fulfillment of

consumer wants and needs. Consumer satisfaction

will occur if the expectation of the consumer is in

line with what is obtained. For example, satisfaction

of the services provided. A favorable shopping

experience makes consumers feel satisfied. The

satisfaction refers to the satisfaction of the product

purchased in the shop visited. An example of an

indicator is that I feel content to shop at the stores

that I visit. Question items are measured using a

five-point scale of Likert, i.e. five points ranging

from one or strongly disagree (STS) to five or

strongly agree (SS).

3.3.2 Trust

Trust is one’s belief in the fact that another party

can satisfy his/her needs (Mosavi dan Ghaedi,

2012). For example, the product sold is not expired

or the goods have high quality as expected. An

example question is to ask whether the products

sold by the gift shop are not expired. Question items

are measured using a five-point scale of Likert, i.e.,

five ranging from one or strongly disagree (STS) to

five or strongly agree (SS).

3.3.3 Word of Mouth

The word of mouth is an informal communication

between non-partisan and the recipient of

information about a brand, product, organization, or

service that has been felt. Examples are as follows.

Consumers recommend souvenir shops that they

have visited to others. Consumers tell others

positive things about the souvenir shops they visit.

Consumers tell the positive qualities of the gift shop

employee who was visited to others. An example of

the indicator is I will recommend a gift shop that I

visit to others. Question items are measured using a

five-point scale of Likert, i.e. five points ranging

from one or strongly disagree (STS) to five or

strongly agree (SS).

3.3.4 Repurchase Intention

Repurchase intention is defined as the behavior of

consumers who buy the product repeatedly, without

including feelings in it (Wibowo et al., 2013). For

example, consumers will consider a souvenir shop

that is visited as a first choice when compared to

others. Consumers have the intention to buy more

products at the souvenir stores they visit.

Consumers have the desire to visit again.

Consumers decide to shop again at the same place.

An example of the indicator is that I have the

intention to buy more products at the gift shop I

visit. Question items are measured using a five-

point Likert scale, i.e., from five ranging from one

or strongly disagree (STS) to five or strongly agree

(SS).

4 RESEARCH RESULT

4.1 Data Analysis

Data were obtained based on questionnaires

distributed to respondents. Respondents were asked

to fill out a statement of questionnaires about certain

criteria that fit the characteristics of the variable.

The variables are consumer satisfaction, trust, word

of mouth, and repurchase intention.

Data collection is conducted for a week starting

from July 24, 2016 until July 31, 2016. Participating

respondents are visitors of gift shop in Yogyakarta,

visitors of Borobudur Temple who had been

shopping at a gift shop in Yogyakarta, and STIE

YKPN students who shopped at a gift shop in

Yogyakarta.

4.2 Validity and Reliability Test

The results of testing the validity and reliability of

the research instruments show good results as

expected.

4.3 Fit Model Test

The result of model testing is done by seeing

whether in general the model has a good fit, so

hypothesis testing can be done with existing model.

Absolute fit measures: measuring the overall model

fit level by looking at the value of chi-square

statistics, GFI and RMR. The score of GFI

(goodness of fit index) is 0.847. It is good enough

because it is near 0.9. It shows that there is a match

between the model and the data. The score of RMR

(root mean square) is 0.024. It meets the criterion.

4.4 Hyphoteses Test Results

The results of testing the hypotheses above are

briefly presented in Table 1.

The Inﬂuence of Customer Satisfaction on Trust, Word of Mouth, and Repurchase Intention: Case for Consumer of Souvenir Stores in

Yogyakarta

311



Table 1: Hyphoteses Test Results.

Hypotheses

Standardized

Regression

Weights

Probability Status

H1:

Consumer

satisfaction

has positive

influence on

trust.

0.793 P<0.1

Hyphotesis

is supported

H2:

Consumer

satisfaction

has positive

influence on

word of

mouth.

0.679 P<0,.

Hyphotesis

is supported

H3:

Consumer

satisfaction

positively to

repurchase

intention.

0.395 P<0.1

Hyphotesis

is supported

5 DISCUSSION

5.1 The Influence of Customer

Satisfaction on Trust

Consumer satisfaction affects consumer confidence.

There is evidence in this study that showed

customer satisfaction significantly influences

consumer satisfaction (β = 0.793; p <0.1). This is

supported by the study conducted by Kim et al.,

(2009) which showed that customer satisfaction has

a positive influence on trust. The higher the

perceived satisfaction, the more confident

consumers will be with souvenir shops.

5.2 The Influence of Customer

Satisfaction on Word of Mouth

Consumer satisfaction influences word of mouth.

There is evidence in this study that shows customer

satisfaction significantly influences word of mouth

(β = 0.679; p <0.1). It is supported by research

conducted by Hamza (2013) which showed that

customer satisfaction has positive influence on word

of mouth. Consumer satisfaction can encourage

consumers to tell others about their satisfaction, and

it creates word of mouth. Pleasant experience when

shopping creates customer satisfaction, so customer

satisfaction encourages word of mouth.

5.3 The Influence of Customer

Satisfaction on Repurchase

Intention

Consumer satisfaction affects repurchase intention.

There is evidence in a recent study suggesting that

customer satisfaction has a significant effect on

repurchase intention (β = 0.395; p <0.1). This is

supported by research conducted by Kitapci,

Akdogan, and Dortyol (2014) which shows that

customer satisfaction has positive influence on

repurchase intention. Consumer satisfaction can

encourage consumers to come and shop again in a

place that has been visited. The more a consumer is

satisfied, the more the consumer would feel like to

shop in the same souvenir shop.

6 CONCLUSION

This study contributes to the literature on the

relationship of the consumer satisfaction with the

relationship of trust, word of mouth, and repurchase

intention at a store or company that sells local

products. Based on the results of the hypotheses

testing, it is known that customer satisfaction can

affect consumer confidence, word of mouth, and

repurchase intention. Consumer satisfaction can

drive consumer confidence to shop for souvenirs.

Customer satisfaction will encourage consumers to

express its satisfaction to others. Moreover, it can

encourage consumers to come or go shopping again

in the same souvenir shop. The result of this

conclusion is also useful for the practitioner group,

the owner of a souvenir shop businesses, in

understanding the influence of customer satisfaction

on repurchase intention, trust, and word of mouth.

The next business strategy of owners of souvenir

shops is to create an atmosphere that is more

convenient. When the consumer satisfaction is

created, it would be beneficial for the owner of a

souvenir shop. Consumers also express his

satisfaction to others and would encourage others to

shop at a souvenir shop that they visited.

Additionally, when consumers want to purchase

souvenirs, if the consumers were satisfied they will

shop at previously visited shops.

This study has some limitations that may affect

the results of the overall research. Some of these

limitations are the following. The first, this study

investigates souvenir shops in Yogyakarta. So in the

future, studies should examine other businesses

rather than a souvenir shop e.g. restaurants,

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department stores, or hypermarkets. The second,

this study should have limited the last visit e.g.

maximum 3 months, so the consumers will

remember the condition of the store better.

Suggestions for further research are as follows.

Based on the findings obtained in this study, there

are several things that must be improved for the next

researcher. The first, the next research needs to

investigate businesses other than gift shops. The

research needs to do research on restaurants,

department stores, or hypermarkets. The second, the

next study should consider the limits of the last

visit, so that consumers still remember the state of

the souvenir shop or store visited.



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