Effect of Service Quality and Corporate image on Customer Loyalty with Customer Satisfaction as Mediation Variables (Study at PT. BPR. Padma, Denpasar-Bali)

The aim of this study is to know and test the effect of service quality, corporate image and customer satisfaction on customer loyalty at PT. BPR. Padma Denpasar-Bali, and to find out and test the effect of service quality, and corporate image on customer satisfaction at PT. BPR. Padma Denpasar-Bali. The study population was all customers at PT. BPR. Padma Denpasar-Bali, with 15,318 people. The number of samples was calculated using the Slovin method and obtained a total sample of 100 people, to determine the sample members used proportional random sampling technique that is the sample members taken proportionally in each part of the PT. BPR. Padma Denpasar-Bali. Data analysis techniques to answer the hypothesis of this study using Structural Equation Modeling (SEM) based on Partial Least Square (PLS). The results showed that (1) service quality had a positive and significant effect on customer loyalty, (2) corporate image had a positive and significant effect on customer loyalty, (3) service quality had a positive and significant effect on customer satisfaction, (4) corporate image had a positive effect and significantly to customer satisfaction (5) corporate image has a positive and significant effect on customer satisfaction, (6) customer satisfaction positively significantly mediates the effect of service quality on customer loyalty and (7) customer satisfaction positively significantly mediates the effect of corporate image on customer loyalty.

due to the source of BPR funds which relied more on high-cost deposits with a portion of around 70%, and the remaining 30% was in the form of savings (source: www.neraca.co.idedis Saturday , October 13, 2015).
The existence of BPR is clearly needed, one way to maintain the existence of a bank is the presence of customer loyalty. National loyalty is a key word to keep the bank in business. Delivery of quality services today is considered an essential strategy for the company to be successful and sustainable. In other words, service quality is a form of assessment from customers, happy or disappointed. When customers feel happy, there will be a sense of satisfaction and bring customer loyalty to the bank. The concepts of service quality, corporate image, satisfaction, and loyalty are related to one another. This statement is reinforced by the results of previous research by Handi (2013) which states that service quality and corporate image have a strong and positive relationship that is when service quality has improved, then the company's image also indirectly increased and vice versa. Similar research by Ilhami (2013) states that corporate image can influence customer loyalty which is mediated by customer satisfaction. Panjaitan's research (2016) states that service quality, which consists of reliability, certainty, reality, empathy, and responsiveness, has a significant influence on customer loyalty. While different results obtained by Kunto (2016) who found that service quality has a significant effect on customer satisfaction, quality has a significant effect on customer trust, customer satisfaction has a significant effect on loyalty, customer trust has a significant effect on loyalty, but service quality has no significant effect towards loyalty. Based on the results of previous studies, there are still inconsistencies in the results of research, so it is interesting to do research related to the effect of service quality on customer satisfaction with customer satisfaction as a mediating variable.
The focus of this research is on PT. The more popular Padma People's Credit Bank is called PT. BPR. Padma, which is a banking service headquartered in the city of Denpasar, which has several branch offices in other districts such as Tabanan Branch offices, Gianyar Branch offices and Singaraja Branch offices. Based on the results of interviews with the Head of Division I in charge of PT. BPR Padma obtained the following data: did not receive the Info Bank Award award, which is usually received annually. This information shows that the level of customer loyalty at PT. Padma Denpasar-Bali BPR experiences instability which is certainly caused by several factors, one of which is the company's image and service quality which is less than optimal in achieving customer loyalty at PT. BPR Padma Denpasar-Bali.
PT. BPR. Padma always try to provide good service in order to achieve its vision. Thus to find out whether PT. BPR. Padma has been able to exceed the expectations of its customers, then in this study using five dimensions to assess the quality of bank services. The five dimensions of service quality according to Tjiptono (2012: 31), namely: tangibles, reliability reliabilities, responsiveness, assurance and empathy. The five dimensions can be taken into consideration whether it is in accordance with what is expected by the customer or not, so that it can be taken into consideration by the PT. BPR. Padma to improve the quality of its services.
The results of observations by researchers at the PT. BPR. Padma, that the competition is not with similar banks, namely Rural Credit Banks (BPR), but has begun to compete with Commercial Banks, which have far more adequate facilities, and especially on Bank Products are much more complete and competitive in terms of price, especially the percentage of credit interest rates Good quality service will have a positive impact on each customer. Customers who experience satisfaction in transacting with banks will re-conduct transactions, giving rise to loyalty. If a banking service is deemed unsatisfactory, the customer will turn away and move to another banking institution. In an effort to retain customers, banks must be able to choose the most appropriate form of policy and technology. This will affect the accuracy, accuracy, ability and speed of banks in providing services to customers. The services provided to customers will reflect whether or not the bank is in the eyes of the customer.
There is something that has not yet been achieved by PT. BPR Padma, which is developing imperfect information technology, by being limited by existing regulations, in order to improve services that are faster, more precise and easier. The customer complained that PT. BPR. Padma did not yet have limited Mobile Banking, ATM and office Unit services, thus making customers unable to access transactions and information quickly and easily. When customers will make a transaction they must come to the bank so that it is inefficient. In addition, the product innovation offered by PT. BPR. Padma is not as complete as the Commercial Bank, which always creates product innovations with technology services, and the results of researchers' interviews with PT. BPR. Padma customers, prefer Commercial Banks because it will be more practical by being able to transact via Line. PT. BPR. Padma is a People's Credit Bank which is quite large in the order of 3 (three) big in Bali, so that competition is no longer with similar Rural Credit Banks, but competes with the National Commercial Bank which has Branch offices in Bali. this can threaten the existence of PT. BPR. Padma Denpasar Bali.

Literature Review:
BPR Existence clearly needed, one way to maintain the existence of banks is the existence of customer loyalty. According to Prasetijo and John (2005: 97) loyalty is a behavioral response expressed in a certain period by the decision-making unit in relation to one decision maker in relation to one or more brand alternatives are selected from a set of brands, and are a function of the psychological process. Thus it can be concluded that loyalty is the loyalty of consumers after experiencing the services expressed in behavior to use company services and reflect the long-term bond between the company and consumers. Customer loyalty can be achieved if the company is able to provide maximum service quality.
Quality is the overall combination of product and service characteristics resulting from marketing, engineering, production, and maintenance that makes these products and services can be used to meet consumer expectations (Wijaya, 2011: 11). According to Tjiptono (2006: 51), "service quality is a dynamic condition related to products, services, people, nature, and the environment that meets expectations". From the above theory it can be concluded that service quality is fulfilling what consumers want and need , as well as how the level of service was provided to consumers to meet expectations. Quality does not only emphasize the aspect of the end product ie products and services but also concerns the quality of human beings, the quality of processes, and the quality of the environment. In addition to service quality, customer loyalty can also be influenced by the company's image.
Setiawan (2007: 21) states that the company's image is the impression, feelings and images of the public towards the company, an impression that is intentionally created from an object, people or organization. According Soemirtat and Adianto in Setiawan (2007: 22) that one of the indicators there is an attitude which means that is a tendency to act, perceive, think and feel in the face of ideas, objects, situations and values. Attitude is not a behavior but a tendency to behave and certain ways. Based on the opinions of the above it can be concluded that the indicators in the establishment of corporate image used in this study consists of a set of impressions, beliefs and attitudes that exist in the minds of consumers to the company. The company's image begins with a public perception of a company that is formed in the minds of customers. Corporate image owned by an organization can be ranked positively or negatively, so that it can affect customer satisfaction.
Understanding Satisfaction According to Abdullah and Francis (2013: 38), "Satisfaction is the level of one's feelings after comparing the performance of the product (or results) he feels with his expectations". According to Zeithmal and Bitner in Pangestu (2015: 12), "Satisfaction is the response or response of consumers regarding the fulfillment of needs". From the notions above it can be concluded that satisfaction is the level of one's feelings arising from the evaluation results of the purchase after comparing the performance of the products they perceive to be expected by the customer. So, if the performance fails to meet expectations, the customer will be dissatisfied, if the performance meets expectations, the customer will be satisfied, if the performance exceeds expectations, the customer will be very satisfied or happy.

Empirical Study:
There are a number of previous studies used as references in this study, namely: a study by Abidin (2016) which found that service quality has a positive effect on customer satisfaction, and corporate image has a positive effect on customer loyalty. Then a study by Hidayat (2012) found the results that there was a positive and significant influence on service quality on loyalty. Further more research, Jamaluddin (2015)

Research Design, Concept Framework and Hypotheses:
Research Design: According to Narimawati (2008: 29) the research process must be presented in a research design. The design of this study begins with defining the problem and title, then identifying the problem, then formulating the problem and the purpose of the study. Furthermore, forming a research variable hypothesis that refers to theoretical and empirical studies related to service quality variables and corporate image of customer loyalty with customer satisfaction as a mediating variable. Data is then collected and analyzed using PLS/ SEM.

Conceptual Framework:
Based on the theoretical review that has been presented previously, the research model or theoretical framework developed is in Figure 1, which illustrates the effect of service quality and corporate image on customer loyalty with customer satisfaction as mediation. Then the study framework model (conceptual) used to facilitate understanding of the concepts used is as shown in Figure 1   The reason researchers chose PT. BPR. Padma Denpasar-Bali. as a research location because until now the tasks and responsibilities of the institution to the customer must be maintained and for the future to be even better in conducting services to customers who make transactions at PT. BPR. Padma Denpasar-Bali. This is possible because with the quality of service, corporate image that adjusts to the company's situation, with customer loyalty as a variable that reinforces customer loyalty. By providing the best service and creating a corporate / bank image, it will ultimately lead to customer loyalty to PT. BPR. Padma Denpasar-Bali.

Population and Sample:
The population in this study is the location of the study. This research was conducted at PT. The PT. BPR. Padma Denpasar-Bali study began in the first week of June 2019. The sample in this study were some customers at PT. BPR. Padma Denpasar-Bali. The method used for sampling is the Slovin method. Based on the results of calculations with the Slovin method, the sample size obtained was 100 people. To determine the sample members used proportional random sampling technique that is the sample members taken proportionally in each part of the existing at PT. BPR. Padma.

Operational Definition Variable:
Service quality (X1) is a dynamic condition associated with products, services, people, nature, and the environment that meets expectations. As for the indicators of quality of service refers Fandy (2008: 68-69) as follows: 1. Tangible   Test results Partial Least Square (PLS) in this study indicate that thetest outer model, which consists of convergent validity, discriminant validity, and composite reliability has met the test requirements, so that the data is declared valid and reliable.
The value of R 2 is the customer satisfaction by 0.517, which means that 51.7% customer satisfaction is influenced by service quality and corporate image, while the remaining 48.3% is other factors outside the research model. Then, the value R 2 of customer loyalty amounted to 0.610, meaning that 61.0% of customer loyalty is influenced by the quality of service, corporate image and customer satisfaction, while the remaining 39.0% were other factors beyond the research model. The results of the significance of the path coefficients are summarized, it is used to test the research hypotheses. The direction of the influence of variables (positive or negative) can be seen from the sign of the path coefficient (column original sample on the SmartPLS output), while the path coefficient is said to be significant if ρ value <5%.
The path coefficient influences service quality on customer loyalty of 0.294 with ρ value of 0.007. The results of this test prove that service quality has a positive and significant effect on customer loyalty. means the better the quality of service to customers, the customer loyalty at PT. BPR Padma Denpasar the better or vice versa the lower the quality of service, the lower the customer satisfaction. From the description above according to the research of Hidayat (2012), the results of research with a significant level of 5% indicate that: There is a positive and significant influence on the quality of service on customer loyalty and attitudes.
The path coefficient of the influence of the company's image on customer loyalty is 0.291 with ρ value of 0.001. The results of this test prove that the company's image has a positive and significant effect on customer loyalty, meaning that the better the corporate image of the customer, the customer loyalty at PT. BPR Padma Denpasar the better or vice versa the lower the company's image, the lower the customer satisfaction. From the description above according to Abidin research (2016) The results of the study show that the coefficient of determination seen in the value is Adjusted R Square 0.378 which means that customer loyalty can be explained by the independent variables namely service quality, customer value, corporate image The path coefficient influence the quality of service on customer satisfaction by 0.562 with ρ value of 0.000. The results of this test prove that service quality has a positive and significant effect on customer satisfaction. This means that the better the quality of service provided to customers at PT. BPR Padma Denpasar, the better customer satisfaction or vice versa the lower the quality of service provided to employees, the lower the customer satisfaction. satisfaction. From the above description in accordance with research from Çetin (2017) which found results that customer satisfaction and positive brand image, which collectively influences customer satisfaction to be sustained sustainable growth.
The path coefficient influences customer satisfaction on customer loyalty of 0.347 with ρ value of 0.001. The results of this test prove that customer satisfaction has a positive and significant effect on customer loyalty, meaning that the better the satisfaction of the customer, the customer loyalty at PT. BPR Padma Denpasar the better or vice versa the lower the customer satisfaction, the lower the customer satisfaction. From the description above is in accordance with research Joudeh & Dandis (2017) with the results of his research customer satisfaction which in turn can lead to better customer loyalty

Conclusions and Suggestions:
Conclusions: Based on the results of research and discussion related to the influence of service quality and of customer loyalty with customer satisfaction as an intervening variable at PT. BPR Padma Denpasar, the following conclusions can be drawn: Based on results, discussions, and conclusions, it is recommended for PT. BPR Padma Denpasar to provide confidence and guarantees to the public/ Customer, that saving at PT BPR Padma Denpasar is profitable and safe by carrying out education and literacy about the role of the Bank is to provide services to the community