Integrated Model of Customers’ Satisfaction and Loyality: A Business Analysis of Banking Service

Rachmad Hidayat; Sabarudin Akhmad

doi:10.29313/mimbar.v32i1.1710

Integrated Model of Customers’ Satisfaction and Loyality: A Business Analysis of Banking Service

Rachmad Hidayat, Sabarudin Akhmad

Abstract

The purpose of this study is to determine the relationships of service quality, bank’s image, customer value and product quality with customer satisfaction and customer loyalty. Sample is the state-owned banks’ customers in four major cities in Indonesia. Data is analyzed by using the Structural Equation Modeling (SEM) method. Results lead to an integrated model of customers’ satisfaction and loyalty. In conclusion, customer value and quality of bank products do not significantly and directly affect customer loyalty, but do significantly affect customer loyalty mediated by customer satisfaction. Service quality and bank’s image directly and indirectly affects customers’ satisfaction and loyalty. Service quality and bank’s image have the strongest and most dominant effects on customer loyalty.

Keywords

Service quality, the bank’s image, customer value, product quality, customer satisfaction and customer loyalty

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DOI: https://doi.org/10.29313/mimbar.v32i1.1710

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