Abstract
Competition in business services, especially education services show a trend that increasingly tight nowadays. Each school is required to be able to create a level of satisfaction and loyalty for its service users. This study was conducted to determine the effect of service quality, corporate image and price perception in creating customer satisfaction and loyalty. In this study using 173 respondents as a sample by using the method of saturated sampling. This research is a quantitative research using the observation method, interview, and spreading of the questionnaire. The analysis technique used is Structural Equation Modeling (SEM) with the path diagram. Variables used include quality of service (X1), corporate image (X2), price perception (X3), customer satisfaction (Y1) and customer loyalty (Y2). The results showed that customer satisfaction is influenced by corporate image and price perception of 18.4% while customer loyalty is influenced by price perception and customer satisfaction of 60.5%. This suggests that service quality is not always a decisive factor in customer satisfaction and loyalty.
Highlights
Indonesia is a developing country in South East Asia
This study was conducted to determine the effect of service quality, corporate image and price perception in creating customer satisfaction and loyalty
The results showed that customer satisfaction is influenced by corporate image and price perception of 18.4% while customer loyalty is influenced by price perception and customer satisfaction of 60.5%
Summary
Indonesia is a developing country in South East Asia. In a developing country, there are some factors which are needed to be a developed country, they are natural resources and human resources. The customer plays an important role in measuring the satisfaction of the products and services provided by the company (Yee, 2008). Boone and Kurtz (Wijayanti, 2008), said customer satisfaction is “the ability of the customer to satisfy the service or product provided by the company able to meet customer needs and expectations. A., Nawaser, 2011) is an important key to maintaining customers than without customer satisfaction will be difficult to survive in the face of competitive competition This depends on consumer perceptions of different service quality at the level of adequate services and desire service. (Kuusik, 2011) defines customer loyalty as a customer’s willingness to continue to subscribe to a company in the long run, by buying and using goods and services repeatedly and voluntarily recommend the company’s products to its peers.
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