Community Engagement and Emergence Journal (CEEJ)
Vol. 6 No. 4 (2025): Community Engagement & Emergence Journal (CEEJ)

The Role of Product Warranty in Building Customer Loyalty: A Case Study of The Indonesian Tire Industry

Saputra, Suyono (Unknown)
Josline, Josline (Unknown)



Article Info

Publish Date
17 Aug 2025

Abstract

This study explores the strategic role of product warranty in fostering customer loyalty within the Indonesian automotive tire industry. Drawing on signaling theory, the research investigates both the direct and mediated effects of product warranty on loyalty through brand trust, customer satisfaction, and brand image. A quantitative approach was employed using Partial Least Squares Structural Equation Modeling (PLS-SEM), with data collected from 323 respondents who had purchased tires from major global brands. The results confirm that product warranty has significant positive effects on all three mediators, which in turn strongly influence customer loyalty. Mediation analysis reveals that customer satisfaction and brand image are the most influential pathways. These findings highlight that warranties function not only as functional assurances but also as symbolic signals that shape post-purchase evaluations and brand commitment. The study contributes to the marketing literature by extending signaling theory in the context of high-involvement purchases in emerging markets. It offers practical insights for companies to leverage warranty programs as strategic assets that enhance trust, satisfaction, and long-term loyalty.

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Journal Info

Abbrev

ceej

Publisher

Subject

Humanities Economics, Econometrics & Finance Education Environmental Science Health Professions

Description

CEEJ is a journal for the development and application of science and technology that includes publication of the results of community service activities, models or concepts or their implementation in the context of increasing community participation in development, community empowerment or the ...