Analysis of Service Quality on Buildig Loyalty by Using Structural Equation Modelling Method (Case Study in Majapahit Railways)

Abstract

Train is one of the transportation modes with some special characteristics that make it possible as an effective and efficient transportation system to increase the level of service quality. Although the air conditioned economy class of Majapahit Train has been officially opened by the government, it has not been able to fulfill the people's need. It is proved with the decrease of number of passenger, and the increase of critics related to the service quality. This research aims to analyze the principal elements and the effect of service qualities towards the customer's loyalty. The research was conducted through survey on the Majapahit Train users consisting of 200 respondents. The used sampling technique was non probability sampling with purposive sampling method. It applied Structural Equation Modelling (SEM) in which the previous test was the classical assumptions. Based on the calculations, it is indicated that the variables of service quality in customer satisfaction and loyalty is significant. The principal elements that influence satisfaction and loyalty are the operational schedule, the rolling stock condition, station's comfort and security, safety, ticket price, and how the passengers enjoy the travelling. Adjusted R square of 0.82 shows that 82 percent of consumer' loyalty can give impact on service quality and customer satisfaction.