Abstract

LPD Desa Adat Sembung and LPD Desa Adat Seseh are LPDs that are categorized as healthy but in the last 3 years the number of savings customers increased but the growth of savings funds decreased. There is a decrease in the number of savings that occur each year in LPD Desa Adat Sembung and LPD Desa Adat Seseh. This study to confirm the relation of Service quality to Customer Satisfaction, Customer Delight and Loyalty of Customers of LPD Desa Adat Sembung and LPD Desa Adat Seseh. The population in this research is all customer of LPD Sembung and Seseh Adat Customers who become customer from LPD stand up until 2015 with total population amounted to 2301 customers. Sampling used Slovin formula, which amounted to 95 customers. The analysis technique used in this research is structural equation modeling (SEM) based on variance or component based SEM, known as Partial Least Square (PLS). From the research result, it is found that service quality have positive and significant effect to customer satisfaction and customer delight, service quality has no significant effect to customer loyalty, but service quality will influence customer loyalty through customer satisfaction mediation and customer delight, customer satisfaction and customer delight have positive effect significant to customer loyalty.

Highlights

  • The existence of LPD is special because it is not subject to the Act Number 1 Year 2013 concerning Micro Finance Institution which is confirmed with the provision of the transition of Law no. 1 year 2013 article 39 paragraph (3) which reads; "Lembaga Perkreditan Desa dan Lumbung Pitih Nagari as well as similar institutions that existed before this law is in force, are declared to be recognized under customary law and are not subject to this law

  • From the results of this study, it can be concluded that: 1.Service quality has a positive and significant impact on the satisfaction of LPD Desa Adat Sembung and LPD Desa Adat Seseh, this means the better the service quality provided by LPD, Customer satisfaction is increasing

  • 2.Service quality has a positive and significant impact on Customer delight in LPD Desa Adat Sembung and LPD Desa Adat Seseh, this means the better the Service quality provided by LPD, customers delight customer will increase

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Summary

Introduction

The existence of LPD is special because it is not subject to the Act Number 1 Year 2013 concerning Micro Finance Institution which is confirmed with the provision of the transition of Law no. 1 year 2013 article 39 paragraph (3) which reads; "Lembaga Perkreditan Desa dan Lumbung Pitih Nagari as well as similar institutions that existed before this law is in force, are declared to be recognized under customary law and are not subject to this law. Ni Luh Desiyanti et al Effect of Service Quality on Customer Satisfaction, Customer Delight and Customer Loyalty (Study on LPD Desa Adat Sembung and LPD Desa Adat Seseh) decline in 2015 a decrease of 0.3% from 2014 and declined again in 2016 a decline of 13.8% from 2015 and the decline in the number of savings that occur each year occur in LPD Desa Adat Seseh, the decline of 2015 decreased 19.3% from 2014 declined again in 2016, a decrease of 5.6% from 2015. If customer delight of the customer has been established, the task of the company is to obtain and maintain loyalty

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