THE EFFECT OF RELATIONSHIP QUALITY ON LONG-TERM RELATIONSHIPS BETWEEN CONSTRUCTION CONTRACTORS AND CEMENT SUPPLIERS IN BOGOR, INDONESIA

Abstract

Cement production capacity in Indonesia continues to increase, but this condition is not matched by an increase in cement consumption. Cement consumption in Indonesia only reaches 61% of its production. The low consumption of cement makes competition in cement suppliers in Indonesia. But Indonesian contractors are able to be one of the targets to optimize cement sales. The research objective is to analyze the effect of relationship quality on the long-term relationship between the contractor and the cement supplier through identification, analysis and formulation of possible strategies. The results of the study stated that long-term relationships have a real relationship with commitment and satisfaction. In commitment has a real relationship with trust as well as satisfaction has a real relationship with trust, price satisfaction and supply strategy. The strategies formed include using a separate communication tool specifically used to provide information to contractor consumers. In addition, by optimizing profits through the quantity of cement sold at lower prices. And use a longer term of payment with high minimum order requirements.

Keywords

• commitment
• long-term relationship
• price satisfaction
• satisfaction
• supply strategy
• trust