The Role of Customer Satisfaction as Intervening Variable on The Relationship Between Service Quality Dimensions on Banking Customer Loyalty

Abstract

Julianavia¹, Yessi Elsandra², Yulihar Mukhtar¹

¹ Management Program, Postgraduate of Bung Hatta University

²College of Economics Darma AndalasEmail: julianavia45@yahoo.com

ABSTRCT

Banking customer loyalty plays impotant role in banking industry. Marketing literatures show customer satisfaction and service quality as determinants of customer loyalty including in banking sector. This study’s purposes is to analyze the role of customer satisfaction as intervening variable on the relationship between service quality dimensions and banking customer loyalty in BPR Ltd Batang Kapas. The sampling technique used is convenience sampling method. The useful numbers of samples to conduct data analyzing are 73 respondents. In order to test hypotheses developed, this study performs simple, multiple and hierarchical regressions. The results of analysis found that 1) Dimensions of service quality have significant effect on banking customer loyalty. 2) Dimensions of service quality have significant effect on banking customer satisfaction. 3) Customer satiffaction also effects banking customer loyalty significantly. 4) Customer satisfaction is to have intervening effect on the relationship between service quality dimensions and banking customer loyalty. The findings of the study recommend to increasing customer satisfaction trough enhancing implementation of service quality dimensions.  

Keywords: Service Quality, Satisfaction and Banking Customer Loyalty