Effect of Service Quality on Customer Satisfaction, Customer Delight and Customer Loyalty (Study on LPD Desa Adat Sembung and LPD Desa Adat Seseh)

Abstract

LPD Desa Adat Sembung and LPD Desa Adat Seseh are LPDs that are categorized as healthy but in the last 3 years the number of savings customers increased but the growth of savings funds decreased. There is a decrease in the number of savings that occur each year in LPD Desa Adat Sembung and LPD Desa Adat Seseh. This study to confirm the relation of Service quality to Customer Satisfaction, Customer Delight and Loyalty of Customers of LPD Desa Adat Sembung and LPD Desa Adat Seseh. The population in this research is all customer of LPD Sembung and Seseh Adat Customers who become customer from LPD stand up until 2015 with total population amounted to 2301 customers. Sampling used Slovin formula, which amounted to 95 customers. The analysis technique used in this research is structural equation modeling (SEM) based on variance or component based SEM, known as Partial Least Square (PLS). From the research result, it is found that service quality have positive and significant effect to customer satisfaction and customer delight, service quality has no significant effect to customer loyalty, but service quality will influence customer loyalty through customer satisfaction mediation and customer delight, customer satisfaction and customer delight have positive effect significant to customer loyalty.