The Influence of Service Quality and Brand Image on Customer Loyalty Mediated by Customer Satisfaction: in Indonesia Coal Mining Industry

Abstract

Indonesia is one of the largest coal producers and exporters in the world. Since 2005, when it surpassed Australia's production, Indonesia has become the leading exporter of coal. Coal companies in Indonesia compete with each other to gain limited market share and meet growing demand. PT. Bukit Asam Tbk is the only coal producing company which is a state-owned company (BUMN) among nine others that private company. PT. Bukit Asam Tbk has met quality standards by being ISO (International Standardization of Organization) certified and has several sales achievements and is among the best new stone producing companies in Indonesia. Obtaining several company awards and certifications is expected to improve the company's brand image and increase customer satisfaction as a trusted coal company. The quality of customer service can also influence a company's image and lead to customer satisfaction. This research used a sample of 228 respondents who were consumers or buyers of coal from PT Bukit Asam Tbk, both domestically and internationally. The analysis model in data processing uses SEM Lisrel 8.8. The findings reveal that Service quality and brand image have a positive and significant influence on customer satisfaction. Brand image has no influence on customer loyalty. Customer satisfaction and service quality have a positive and significant influence on customer loyalty.