This paper aims to empirically test the concept of relational marketing in co-operative enterprise. Testing was carried out on the best co-operatives consumer in the West Java Province of Indonesia, amounting to 37 co-operatives (370 respondents). The consumer co-operative is chosen because that it is one of the most numerous types of co-operatives in Indonesia and West Java Province. Also, it is chosen because that it is one of the provinces in Indonesia with the highest number of consumer co-operatives. Various statistical analyze and tests in this research were carried out using Structural Equation Modeling-Partial Least Square method (SEM-PLS) assisted by SMART-PLS 3.2.7 statistical software. Testing the effects of mediating variables in this research using “The Steps” approach [1][2]. The results of this research are that relationship marketing directly affects the co-operative business performance (path coefficient = 0.155 and P Value = 0.059, at 5% significance level) and also member loyalty (path coefficiet = 0.684 and P Value = 0,000, at 5% significance level).Member loyalty directly affects co-operative business performance (path coefficient = 0.441 and P Value = 0,000, at 5% significance level). Relationship marketing has an indirect effect through member loyalty on co-operative business performance (path coefficient = 0.301 and P Value = 0,000, at 5% significance level). The implication of this research is to undrstand that by focusing on improving the quality of relationship marketing programs or activities, the management of co-operatives consumer in the West Java Province of Indonesia will significantly increase the loyalty or member participation and also the co-operative business performance. Subsequent research can be carried out on a unit analysis in another country or in the different types of co-operatives such as service co-operative, production co-operative and saving and loan co-operative.
Volume 11 | 03-Special Issue
Pages: 922-932