Abstract
This study will examine the relationship between the impact of service failure and service recovery on customer satisfaction and loyalty. The research objective was to determine the effect of service failure can be up to customer loyalty. The object of this research is customers who use expedition services located in Jakarta. This research method uses quantitative methods using a questionnaire measuring instrument. The sampling technique used is simple random sampling. To analyze the data using SEM (Structural Equation Modeling) analysis tools with Lisrel. The results of this study conclude that, first, service failure affects service recovery. Secondly, service recovery affects customer loyalty. Third, service recovery affects customer satisfaction, and the last fourth of customer satisfaction also affects customer loyalty.
Highlights
The main business strategy in service marketing and management activities is to retain customers and increase customer satisfaction (Dawi et al, 2018)
The result of the research from 160 customer respondents who use freight forwarding service from PT Jalur Nugraha Ekakurir, from PT Jalur Nugraha Ekakurir (JNE), PT Global Jet Ekspres (JandT Express), PT Tri Adi Bersama (Antaraja), PT Sicepat Ekspres (SiCepat) in Jakarta shows that the majority of respondents are women by 54.38%, age 26-35 by 37.50%, PT Jalur Nugraha Ekakurir service by 30%
The business strategy that has been formed in management activities is declared capable of retaining customers to continue using the expedition services
Summary
The main business strategy in service marketing and management activities is to retain customers and increase customer satisfaction (Dawi et al, 2018). The service company must focus on customer satisfaction and pay more attention to the complaints from customers because the role of customers is very important for the company to achieve success of the service company. A service company cannot avoid service failure. If it is not handled correctly, it can result in negative things for the company, which will lead to customer dissatisfaction (Hua, 2012). Service companies must avoid losing customers to remain profitable and learn to be better at responding to service failure properly (Matikiti et al, 2018). The service recovery efforts are the most effective way to ensure customers meet the desired expectations (Pai et al, 2019).
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