Abstract

This study aimed to analyze the influence of service quality, corporate image, and customer relationship marketing on customer satisfaction and customer loyalty. The population consisted of 180 bank customers in Malang city. For the analysis of Structural Equation Model (SEM) came into use. The results showed that service quality, corporate image, and customer relationship marketing influence on customer satisfaction, and service quality, corporate image, and customer relationship marketing influence on customer loyalty. Moreover, customer satisfaction effects on customer loyalty. Customer satisfaction mediated the effect of service quality, corporate image, and customer relationship marketing on customer loyalty.

Highlights

  • Today, the development of the banking world is very rapid

  • Customer satisfaction is measured by three indicators, namelyservices over expectation, saying positive thing, and repurchase; and customer loyalty is measured by three indicators including belief, repeating, and recommending to other

  • The influence of customer relationship marketing on customer loyalty through customer satisfaction has a total effect of 0.29> direct effect 0.22. These results indicates that customer satisfaction mediates the influence of customer relationship marketing on customer loyalty tested.it is tested that customer satisfaction mediates the influence of service quality, corporate image, and customer relationship marketing on customer loyalty, and corporate image gives dominant influence to customer loyalty

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Summary

Introduction

The development of the banking world is very rapid. Increased competition in Indonesian banking began with the deregulation of Indonesian banking with the policy package of June 1st, 1983(PAKJUN) with the aim of modernizing the banking system and continued with the October Package (PAKTO) on October 27th, 1988, which facilitated the establishment of new bank licensesMarketing and Branding Research 4(2017)including the opening of branch offices. (PAKJUN) with the aim of modernizing the banking system and continued with the October Package (PAKTO) on October 27th, 1988, which facilitated the establishment of new bank licenses. Competition between banks has expanded with the emergence of new products with various attributes and facilities. Maintaining bank customers to remain loyal to bank services, bank management needs to pay attention to the quality of services provided. On the other hand, Cristobal, Flavian, and Guinaliu (2007),indicated that service quality does not affect customer loyalty. The previous research gap on the impact of service quality in establishing and maintaining customer loyalty gives the direction that excellent service to customers needs to be accompanied by a good bank image in the eyes of customers, because the image of the bank provides consumer ratings for the credibility of the bank. Different results are shown by Bloemer, Ruyter, and Peeters (1998) who stated that the image did not affect consumer loyalty

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