Open AccessTHE IMPACT OF SERVICE QUALITY ON BANKING CUSTOMER LOYALTY: THE ROLE OF SATISFACTION AND SWITCHING COSTS AS MEDIATOR
Author(s) -
Sefnedi Sefnedi
Publication year - 2019
Publication title -
e-journal apresiasi ekonomi/e-jurnal apresiasi ekonomi
Language(s) - English
Resource type - Journals
eISSN - 2613-9774
pISSN - 2337-3997
DOI - 10.31846/jae.v7i1.191
Subject(s) - loyalty business model , business , customer satisfaction , service quality , marketing , customer advocacy , customer retention , customer delight , loyalty , customer equity , service (business) , advertising
The notion of customer loyalty as an efective marketing strategy in fecing keen competition has been identified. The purpose of this study is to examine the role of customer satisfaction and switching costs as mediator on the relationship between service quality and customer loyalty. The research population is all banking deposit customers of Nagari Bank Main Branch Padang while the numbers of usable samples were 117 respondents. In order to test hypotheses, this study performs SmartPLS 3.2.8. The results of analysis displayed that the strongest effect of service was found on switching costs compared to customer satisfaction and loyalty. In addition, customer satifcation and switching costs were proven as determinants of customer loyalty, and they also were found as mediator on the relationship between service quality and customer loyalty.The research findings provided some practical contributions that in order to enhancing customer loyalty future, it was suggested to increase customer satisfaction as well switching costs through creating the best service quality.
Keywords: Service quality, Customer satisfaction, Switcing costs, and Customer loyalty