by Pondi Pratama and Hendra Achmadi*
ABSTRACT
This study aims to analyze the effect of service quality, customer satisfaction, and supply chain value on customer loyalty by considering the sequential mediating role of Customer Relationship Management (CRM) and trust in the motor insurance industry in Indonesia. Data were collected through a survey of 251 motor insurance policyholders and analyzed using the Partial Least Squares–Structural Equation Modeling (PLSSEM) approach. The results indicate that service quality does not have a significant effect on CRM (t = 0.705; p = 0.481) or customer loyalty (t = 1.346; p = 0.178), either directly or through the sequential mediation of CRM and trust (t = 0.703; p = 0.482). In contrast, customer satisfaction has a significant effect on CRM (t = 3.256; p = 0.001) and customer loyalty (t = 3.722; p < 0.001) and also demonstrates a significant indirect effect on loyalty through CRM and trust (t = 2.506; p = 0.012). Supply chain value is also found to have a significant effect on CRM (t = 6.702; p < 0.001), customer loyalty (t = 2.428; p = 0.015), and loyalty through the sequential mediation of CRM–trust (t = 4.394; p < 0.001). The findings demonstrate that CRM exerts a substantial effect on trust (t = 17.171; p < 0.001), which subsequently drives customer loyalty (t = 5.353; p < 0.001), while also mediating the relationship between CRM and loyalty (t = 5.145; p < 0.001). Overall, the findings show that customer loyalty in the motor insurance industry is not formed directly through service quality, but rather through a layered relational mechanism emphasizing customer satisfaction, service process value, customer relationship management, and trust formation. These findings reinforce the relevance of the Commitment–Trust Theory and provide important implications for customer retention strategies in risk-based insurance industries.
