BUILDING A MUTUALISTIC RELATIONSHIP MARKETING TO MEDIATE BETWEEN THE COMPETENCE OF SERVICE TO THE COMPANY'S PERFORMANCE

Abstract

This study develops a new theoretical approach to solve differences between customer service competence and firm performance. This new concept is called mutuality collegiate relation. Mutuality collegiate relation is established from relational interaction, belief, intimacy, and equality of power. It is then related and tested its relationship with firm performance. Variables in this research include transactional service competence, after sales service competence, and customer retention program. Empirical data is collected by distributing questionnaires to 105 active shariah micro financial institutions in East Java, Indonesia. The sampling method is a purposive sampling technique. The study shows that seven of ninehypotheses are accepted while the remaining two hypotheses are rejected. By using the structural equation modeling procedure, these results conclude that mutuality collegiate relation has significantly and positively affected firm performance.

Keywords

• Mutuality collegiate relation
• customer service competence
• customer retention program
• firm performance.