Abstract
The aim of this study was to analyze the effect of bank image and service quality to satisfaction and their impacts on customer loyalty. The object of this research was Bima saving customers at PT. Bank Pembangunan Daerah Jawa Tengah, Klaten Branch. In this study the population used was limited to the customers of the Bima Savings at PT Bank Pembangunan Daerah Jawa Tengah, Klaten Branch. The sample was 97 respondents with the sampling technique of Purposive.The samples were carefully selected so that they were relevant to the study. The results of the research indicate that: bank image has positive significant effect on satisfaction; service quality has positive significant effect on satisfaction; bank image has positive significant effect on loyalty; service quality has positive significant effect on loyalty and satisfaction has positive significant effect on loyalty. The results of mediation effect show that bank image and service quality more effectively influence directly on customer loyalty than through customer satisfaction. Satisfaction is significantly capable as a mediator in the association.
Highlights
Business competition in the field of banking is very fast; banks compete to be the best by doing various ways to remain a healthy bank by paying attention to all financial ratios, utilizing certain businesssegments, and emphasizing on infrastructures
In the studies conducted by (Aydin & Ozer, 2005; Dewi et al, 2014) the results show that customer satisfaction has a positive and significant effect on customer loyalty
Model Test Model 1: Bank Image and Service Quality have an Effect on Satisfaction
Summary
Business competition in the field of banking is very fast; banks compete to be the best by doing various ways to remain a healthy bank by paying attention to all financial ratios, utilizing certain businesssegments, and emphasizing on infrastructures. Having good imagein public will be a consequence of image formation. Harsono (2015) explains that image is defined as an impression obtained in accordance with one’s knowledge and experience about something. Improving service quality is expected to improve company image because image can be strengthened when customers get high service quality; and it will decrease when the service quality is low. Zeithaml et al (1996) define service quality as a comparison between consumer expectations and perceptions to the service performance they receive (perception expectations). When the service received or perceived is in accordance with expectations, the service quality is perceived as good and satisfactory. When the service received or perceived is not as expceted, the service quality is perceived as is not good and unsatisfactory
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