Effect on Quality of Service and Quality of Products towards Customer Loyalty with Mediation of Customer Satisfaction (Study at PT. Bank Pembangunan Daerah Bali, Singaraja Branch Office)

Abstract

The existence of Bank is needed, one way to maintain the existence of Bank is their customer loyalty. Customer loyalty is a key word in order to keep the bank in existence in its business, (Kasmir, 2011: 54). The delivery of quality services and product quality at a bank is currently considered an essential strategy and with customer satisfaction, the Bank will be successful and can survive in facing today 's highly competitive competition. Which is the goal of this research is: To know and test the effect of service quality on customer satisfaction in PT. Bank Pembangunan Daerah Bali Singaraja Branch Office, to determine and test the effect of product quality on customer satisfaction at PT. Bank Pembangunan Daerah Bali Singaraja Branch Office, to determine and test the effect of service quality on   customer loyalty at PT. Regional Development Bank Bali Kant or Singaraja Branch,  to determine and test the effect of product quality on customer loyalty at PT. Bank Pembangunan Daerah Bali Singaraja Branch Office, and To determine and test the effect of customer satisfaction on customer loyalty at PT. Bank Pembangunan Daerah Bali Singaraja Branch Office . This study uses Structural Equation Modeling (SEM) with a variance-based or component-based approach with Partial Least Square (PLS). The results showed that service quality has a positive and significant effect on customer satisfaction. Product quality has a positive and significant effect on customer satisfaction. Service quality has a positive and significant effect on customer loyalty. Product quality has a positive and significant impact on customer loyalty. Customer satisfaction has a positive and significant effect on customer loyalty. Customer satisfaction positively and significantly mediates the effect of service quality on customer loyalty. Customer satisfaction positively and significantly mediates the effect of product quality on loyalty.