Service Quality, Company Image, Trust and Its Influence On Customers’ Satisfaction and Loyalty at Bank Shariah Mandiri (BSM) Meulaboh Branch Office

Abstract

Global competition between conventional and shariah banks and the demands of providing maximum services to the customers and by looking at the rapid growth of Shariah Bank, it makes inter-institutional competition become significant. This cause’s shariah banking business is required to constantly improve the quality of its services. Customer satisfaction and loyalty in banking services is an important element in growing the company. It takes a special strategy to win the competition. This study aims to analyze the influence of service quality variables (service quality), corporate image (corporate image), and trust (trust) on customer satisfaction and loyalty. The analysis of data is using path analysis method and it takes 61 samples of the customers in PT. Bank Shariah Mandiri (BSM), Meulaboh. The sampling technique is simple random sampling. The results showed that the quality of service (service quality) has a positive and insignificant effect on customer satisfaction. Corporate image (corporate image) has a positive but not significant impact on customers’ satisfaction BSM. Trust (trust) has a positive and significant impact on customer satisfaction. BSM customers’ satisfaction has a direct effect on customers’ loyalty. Quality of service (service quality) has a positive and significant impact on customers’ loyalty. Corporate image (corporate image) positively and significantly affect the loyalty of BSM customers. Trust has negative and insignificant effect on customers’ satisfaction. By providing the results of this study, BSM is expected to always improve service quality, corporate image and customers’ trust, in which the three elements are very important and decisive in growing the company to continue to exist to deal with the global competition.

The Mediating Role of Satisfaction: Life Insurance Customers’ Perspective (Service Quality, Trust and Image Toward Loyalty)

“…Therefore, a trust will shape customer satisfaction and loyalty. In line with this, that empirically some scientists have found that trust can significantly influence customer satisfaction (Ansari & Riasi, 2016;Kundu & Datta, 2015;Mahmoud et al, 2018;Novotová, 2018;Park et al, 2017;Sari, 2018;Sitorus & Yustisia, 2018;Soo Ho, 2018a). And also have a significant effect on customer or customer loyalty (Ahmad & Bashir, 2015;Ajami, 2016;Damtew & Pagidimarri, 2013;Dornas, et al, 2014;Khundyz, 2018;Park et al, 2017;Rai & Medha, 2013;Sitorus & Yustisia, 2018).…”

“…In a previous study proved that the company's image has a positive and significant effect on customer satisfaction (Ashraf et al, 2018;Dachyar & Siva, 2016;Hermawan et al, 2017;Nguyen et al, 2018). On the other hand, it was also found that there was a positive and significant influence between company image on customer loyalty (Ashraf et al, 2018;Dachyar & Siva, 2016;Huang, 2016;Mutmainnah, 2017;Sari, 2018;Xhema et al, 2018).…”

“…In this case, the company's image is important for every company because it is an overall impression that is formed in the minds of the public about the company. Huang (2016) has proven that company image has a positive and significant effect on customer satisfaction, as well as other researchers, have proven that there is a significant influence between the corporate image on customer satisfaction (Ashraf et al, 2018;Dachyar & Siva, 2016;Hermawan et al, 2017;Nguyen et al, 2018), and have an impact on increasing customer loyalty (Ashraf et al, 2018;Dachyar & Siva, 2016;Huang, 2016;Sari, 2018;Xhema et al, 2018). While the findings by Variano (2017) that Brand Image has no significant effect partially on Brand Loyalty.…”

“…Other findings in the insurance industry and other service industries also find that service quality has a positive and significant effect on customer or customer satisfaction (Ashraf et al, 2018;Basir et al, 2015;Ella, 2017;Hermawan et al, 2017;Laura, 2016;Mandung, et al, 2018;Nguyen et al, 2018;Saulina & Syah, 2018;Sitorus & Yustisia, 2018). Other findings also prove that the better the quality of service, the more loyal the customer will be (Ahmad & Bashir, 2015;Ashraf et al, 2018;Nuridin, 2018;Rai & Medha, 2013;Sari, 2018;Saulina & Shah, 2018) In the theory of McKnight et al (2002) related to the theory of trusting belief, which is where the theory states that a person believes and feels confident of others in a situation which has characteristics that will benefit consumers, namely with benevolence, integrity, competence. Then the theory of belief by Barnes (2003) that trust involves a person's willingness to behave in a certain way because of the belief that his partner will give what he hopes and a hope that someone has that the word promises or statements of others can be trusted.…”

“…Lack of trust owned by customers towards insurance companies will reduce customer satisfaction, thereby impacting customer loyalty. Empirically some scientists have found that trust can significantly influence customer or customer satisfaction (Ansari & Riasi, 2016;Kundu & Datta, 2015;Mahmoud et al, 2018;Novotová, 2018;Park et al, 2017;Sari, 2018;Sitorus & Yustisia, 2018;Soo Ho, 2018), and also had a significant effect on customer or customer loyalty (Ahmad & Bashir, 2015;Ajami, 2016;Damtew & Pagidimarri, 2013;Dornas et al, 2014;Khundyz, 2018;Park et al, 2017;Rai & Medha, 2013;Sitorus & Yustisia, 2018). On the other hand, that some researchers also find different findings where the findings show that trust does not have a significant effect on customer satisfaction (Khodadad Hosseini & Behboudi, 2017;Laura, 2016), and it is not significant on customer or customer loyalty (Kishada & Wahab, 2015;Novotová, 2018;Sari, 2018;Saulina & Syah, 2018).…”