The Effect of Customer Relationship on Customer Loyalty Moderated by Customer Satisfaction at Dazzle Outfit Palembang

The increasingly competitive fashion retail industry requires companies not only to offer high-quality products but also to build long-term relationships with customers in order to maintain loyalty. Dazzle Outfit Palembang still faces several challenges, including suboptimal customer interaction, limited loyalty programs, and customer loyalty that has not been fully established despite relatively good levels of customer satisfaction. This study aims to analyze the effect of customer relationship on customer loyalty, the effect of customer satisfaction on customer loyalty, and the role of customer satisfaction in moderating the relationship between customer relationship and customer loyalty at Dazzle Outfit Palembang. This study employed a quantitative approach with a descriptive and causal-associative research design. The sample consisted of 100 customers selected using purposive sampling, with the criteria of being at least 17 years old and having made at least two purchases. Data were collected through a Likert-scale questionnaire and analyzed using Moderated Regression Analysis (MRA) with the assistance of SPSS. The results showed that customer relationship had a positive and significant effect on customer loyalty, with a significance value of 0.017. In contrast, customer satisfaction did not have a significant effect on customer loyalty, with a significant value of 0.099. The interaction between customer relationship and customer satisfaction was also not significant, with a significant value of 0.359, indicating that customer satisfaction did not moderate the relationship between customer relationship and customer loyalty. The Adjusted R Square value of 0.518 indicates that the model explains 51.8% of the variation in customer loyalty. This study confirms that strengthening customer relationships, particularly through trust, commitment, communication, and conflict handling, is an important strategy for improving customer loyalty at Dazzle Outfit Palembang.