Factors Affecting Customers’ Retention In Salon Service

Abstract

In the present of competitive business or firm, reputation and business image are very important for having potential impact in customer loyalty towards the company. Furthermore, customer retention being considered as the key element of relationship between the company and their customers. By building a relationship with its customer, a firm wants its customer to perceive the business through a relationship lens. According to (Morgan and Hunt's 1994) commitment-trust theory would be very relevant here. This research also was made to investigate the element of customer retention outcomes and the management process in customer retention planning, budgeting and accountability in presence of customer retention. This study also identifies the relationship among the customer’s satisfaction, customers trust, and also customer’s commitment. Increasing the customer satisfactory can help increase the customer retention. In this study, the researcher identified the factors proposed by earlier research and developed a research model and hypotheses concerning the measurement of customer retention.