Determinants of Broiler Chicken Farmer Satisfaction and Loyalty within Corporate Partnerships: A Structural Equation Modelling Approach

Abstract

This study aims to (1) determine the influence of product quality, service quality, corporate image, and farmers' expectations on farmers’ satisfaction, and (2) understand the effect of farmers’ satisfaction on their loyalty to the company. The population in this study are broiler chicken farmers who have entered into partnership agreements with the Company X, totaling 100 people. Thirty respondents were selected through a simple random sampling technique. Data were collected through interviews based on questionnaires. The data was analyzed using the SEM (Structural Equation Modelling) method with a Partial Least Square (PLS) approach. The SEM was applied to six factors derived from the data: product quality, service quality, corporate image, farmers’ expectation, farmers satisfaction, and farmers’ loyalty. The results show that product quality, service quality, farmers' expectations, and corporate image have a positive and significant effect on the farmers' satisfaction with the performance of the company. Farmers’ satisfaction has a positive and significant impact on farmers’ loyalty to the company. The impact of satisfaction and loyalty has turned the company into a rapidly growing partnership company in Southeast Sulawesi Province.