Improving Customer Satisfaction and Loyalty Through Value Co-Creation, Customer Value, and Social Media Marketing Activities

Abstract

Objective: This research is intended to examine how value co-creation, customer value, and social media marketing activities affect customer satisfaction and how these factors subsequently relate to customer loyalty at Mitsubishi Motors Dealer Mitsubishi Mojokerto.

Design/Methodology/Approach: The study applies a quantitative causal-associative design by distributing a closed-ended questionnaire to customers of Mitsubishi Motors Dealer Mitsubishi Mojokerto. From a population of 186 customers, 65 respondents were selected using the Slovin formula. The data were processed with Partial Least Squares-Structural Equation Modeling (PLS-SEM) through SmartPLS to evaluate the measurement model, structural model, direct effects, and indirect effects by positioning customer satisfaction as the mediating variable.

Findings: The findings demonstrate that value co-creation contributes positively to customer satisfaction and customer loyalty. Customer value likewise shows a positive relationship with both customer satisfaction and loyalty. Social media marketing activities also have a positive effect on customer satisfaction and loyalty, particularly because informative, interactive, responsive, and relevant content supports the formation of customer experiences. Customer satisfaction is further proven to strengthen customer loyalty. The mediation analysis indicates that customer satisfaction mediates the effect of customer value and social media marketing activities on customer loyalty, while it does not mediate the relationship between value co-creation and customer loyalty.

Limitations: The scope of this study is restricted to customers of Mitsubishi Motors Dealer Mitsubishi Mojokerto and involves a relatively limited sample; therefore, the findings should be generalized with caution. Future studies are encouraged to broaden the research setting to other dealers, brands, or geographic areas and to include additional variables such as trust, customer engagement, brand image, relationship quality, or emotional attachment.

Research implications: Dealer management should reinforce customer value by improving service quality, ensuring price suitability, simplifying access, and delivering benefits that are relevant to customers. In addition, social media should be managed in a consistent, informative, responsive, and interactive manner to support higher customer satisfaction and loyalty.

Originality/value: The contribution of this study is reflected in the development of an automotive customer loyalty model that integrates social media marketing activities as a strategic element representing digital communication, customer interaction, responsiveness, and electronic word of mouth in shaping customer satisfaction and loyalty.