Abstract
Improved customer satisfaction and loyalty are essential metrics in increasing a company's revenue and profit in the banking industry. This research aims to determine the effect of satisfaction on loyalty among bank customers in Indonesia. The study was conducted by face to face interview method (F2F) among 1910 bank customers in eight metropolis in Indonesia (2019). The sampling method used a random sampling followed by a booster sampling approach. The analysis was conducted using the Structural Equation Modeling (SEM) by WarpPLS approach. The results show that satisfaction positively and very significantly affects loyalty.
Highlights
Abstract⎯ Improved customer satisfaction and loyalty are essential metrics in increasing a company's revenue and profit in the banking industry
When customers are satisfied with the products or services they have purchased and used, the customers will be loyal to the company's products and services they will be loyal to the company
By considering that WarpPLS is a development of PLS, the aforementioned applies to WarpPLS
Summary
Abstract⎯ Improved customer satisfaction and loyalty are essential metrics in increasing a company's revenue and profit in the banking industry. This research aims to determine the effect of satisfaction on loyalty among bank customers in Indonesia. The study was conducted by face to face interview method (F2F) among 1910 bank customers in eight metropolis in Indonesia (2019). Data from the OJK (Financial Services Authority, Republic of Indonesia) shows that the number of commercial banks in Indonesia for March 2020 is 110 and there are 1,537 what are called Bank Perkreditan Rakyat or the Rural Banks This indicates there is very high competition among banking industry players. It becomes interesting to observe how the effect of customer satisfaction on customer loyalty in the banking industry in Indonesia context. This aim of the study is to analyze the relationship between customer satisfaction and customer loyalty. The analysis used the Structural Equation Modelling (SEM) method with the WarpPLS approach
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