Eva Z. Yusuf

The development of fast-moving consumer goods (FMCGs) retail has demonstrated an evolution of buyer–seller interactions. In the era of digital transformation, FMCGs and micro, small, and medium enterprises (MSMEs) can easily use website applications to shop for various products from suppliers, make payments, and access a wider variety of products with more efficient delivery. However, empirical studies on loyalty drivers on B2B relationships for business sustainability in the retail industry have not received much attention. This research aimed to examine the factors that influence loyalty and analyze the mediating role of MSME loyalty by discussing a new conceptual framework designed based on the buyer–seller relationship theory and relational marketing. Data were collected from 500 owners or managers of FMCG retail stalls in various provinces in Indonesia and analyzed using structural equation modeling (SEM). The results showed that merchandising, website quality, commitment, and satisfaction have a positive effect on loyalty, as opposed to service quality and trust. There are also different roles in the mediating variables of trust, commitment, and satisfaction on retail store loyalty. These findings were useful for policymakers, managers, and practitioners to clarify the influence of service quality, merchandising website quality, and the role of relationship quality on loyalty in the era of digital transformation.

In Indonesia, the loyalty of traditional retail stores to suppliers in business relationships has not been widely described and explored, especially in the current era of digital transformation. Meanwhile, their business potential is enormous, with an estimated business value of 817 trillion per year. This business value contributes to 69% of the total Fast Moving Consumer Goods (FMCG) retail industry business in Indonesia. The research aimed to describe the situation of traditional retail stores with suppliers and their level of loyalty in the Business to Business (B2B) market. The research also wanted to find out the respondents’ profiles in relation to loyalty indicators. The method applied was a descriptive analysis method to map perceptions and opinions of traditional retail stalls against suppliers. Furthermore, the Top Two Box method was used to assess the loyalty level, while the respondents’ profiles were analyzed using cross-tabulation analysis. The respondents were 500 owners of traditional retail stores with proportionate stratified random sampling through an offline questionnaire. The results show that the retail service quality, trust, commitment, and satisfaction are relatively good. Meanwhile, the merchandising and website quality need to be improved. Approximately 75,4% of retail stores are loyal to their suppliers, while the remaining 24,6% are disloyal. These results are useful for supply companies to establish business-to-business relationships with traditional retail stores in Indonesia to create, develop, and maintain maximum loyalty.