The Effects of Service Quality on Value, Satisfaction and Loyalty (Study at Customers of BRI Bank in Kupang City, Indonesia)

International Journal of Research and Scientific Innovation (IJRSI) | Volume VII, Issue X, October 2020 | ISSN 2321–2705

The Effects of Service Quality on Value, Satisfaction and Loyalty (Study at Customers of BRI Bank in Kupang City, Indonesia) 

Elly Lay^1* and Lukas J.B.B. Hattu^2
1Department of Business Administration, Faculty of Social and Political Science, University of Nusa Cendana, Kupang, Indonesia.
²Department of Business Administration, Faculty of Social and Political Science, University of Nusa Cendana, Kupang, Indonesia.
Corresponding Author

Abstract : The purpose of this study is to analyze and explain effects of service quality, on value, satisfaction, and loyalty. Survey method by question are is used to gain data from100 customers at Local Office of bank BRI in Kupang City, Indonesia. Statistic descript if and Partials least Square (PLS) was used to analyze data. The results provide that service quality has a significant and positive effect on value and customer satisfaction , but it has an insignificant effect on customer loyalty. Customer value has a significant effect on customer satisfaction and Customer Loyalty. Customer satisfaction has a significant and positive effect on Customer Loyalty. The limitations of this study are using cross sectional data, and the limited number of samples comes only from one bank that is BRI Bank. The results contribute to developing of science, especially in marketing science and practical contribute to the manager of bank service in relation with efforts to promote customer loyalty.

Keywords: Service Quality, value, Satisfaction, Loyalty.

I. INTRODUCTION

Having loyal customers is the hope of every company. Loyal customers will increase the number of transactions with the company and it is not easy to move to another company. In addition, loyal customers can also be a promotional media to potential customers through word of mouth. Therefore, various ways are taken by the company in order to increase customer loyalty. For that, it is necessary to know the factors that affect customer loyalty.
Bank Rakyat Indonesia (BRI bank) as a state-owned bank also continues to strive to increase customer loyalty. In order to be able to formulate strategies to increase loyalty appropriately, of course, it is necessary to know in advance what factors have dominant influence on loyalty. Theoretically, it is known that customer satisfaction is one of the dominant factors that influence loyalty, because satisfied customers will be loyal to certain products or brands. In addition, value and service quality also affect loyalty. Through this research, we want to know how dominant the influence of these variables is in its implementation at BRI bank.

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