Open AccessTHE ROLE OF CUSTOMER ENGAGEMENT IN BUILDING LOYALTY: EMPIRICAL STUDY ON BCA BANK
Author(s) -
Clara Uli Kumudani,
Catur Sugiarto
Publication year - 2020
Publication title -
international journal of business and applied social science
Language(s) - English
Resource type - Journals
ISSN - 2469-6501
DOI - 10.33642/ijbass.v6n10p6
Subject(s) - loyalty business model , business , customer satisfaction , customer delight , customer advocacy , customer retention , marketing , service quality , customer equity , customer to customer , structural equation modeling , customer intelligence , loyalty , service (business) , computer science , machine learning
Customer loyalty is an important and strategic objective of the banking industry, which is achievable when the expectations of a product are fulfilled and satisfied. Therefore, customer satisfaction should be maintained by developing a deep interaction between customers and service providers. This study aims to analyze the effect of service quality, customer engagement, and customer satisfaction on customer loyalty at Bank Central Asia (BCA) Solo. A qualitative approach using the partial least squares structural equation modeling (PLS-SEM) was employed, to provide an insight for the marketing manager in developing strategies to increase customer loyalty. More specifically, the results showed that service quality has a positive effect on customer satisfaction, while customer satisfaction and engagement also have positive effects on customer loyalty.