Volume 5, Issue 3, March – 2020 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165

The Effect of Service Quality and

Complain Handling of Customer Satisfaction
In Customer Loyalty in Bank X
Mariska
Student of Magister, Perbanas Institute
Jakarta, Indonesia

Abstract:- The main objective of this research is to Service (SMS) facility or also conducting financial
analysis the factors that influence customer loyalty. The transactions via the internet.
object of this research is Bank X. The research
problems are refer to the business phenomena in Bank Bank (x) as one of the business actors in the banking
X and some research gap based on previous researches. industry cannot be separated from the phenomenon of
Therefore, the research problems are : “ How to change arising from the intensity of competition to win the
develop a customer loyalty, could be achieved complied hearts of their customers. Currently the behavior of bank
with the particular expectation”. The purpose of this customers in Indonesia is increasingly unpredictable, there
research is to investigated the path of customer loyalty. are customers who want low interest rates or high interest
Formulated models this research aim to give critical rates, low administrative costs and there are also customers
understanding in concept and measurement of customer who want financial transactions that are fast, efficient,
loyalty. This research measure service quality, complain comfortable and easy to access, whenever , and wherever.
management, and customer satisfaction as antecedents
and have consequence to customer loyalty. Besides the This study aims to discuss how the influence of
theoretical model, the researcher subsequently had service quality on customer satisfaction, handling
compiled three hypothesis for this research. Purposive complaints against customer satisfaction and customer
method had been used to gain valuable data in this satisfaction on customer loyalty.
study. Researcher used 300 respondents and all of them
are customer of Bank X. All data of this researched had II. THEORITICAL REVIEW
been analyzed by Structural Equation Model with
computer program Lisrel 8.80. The main findings of A. Quality of Service
this research showed that service quality has a positive Good service is one of the requirements for success in
impact on customer satisfaction. Complain management a service company. The quality of service in service
also has a positive impact on customer satisfaction companies is often conditioned as a comparison between
towards customer loyalty had a significant ( positive) the services expectation and the services received in real.
impact. The final conclusion of customer loyalty Liu and Wu (2007) state that companies are able to provide
research can be recommended as crucial implications good services to their customers or customers have the
for management. Researcher believe that the approach greatest opportunity to be continuously visited by their
used in this study can help bank managers gain useful customers. Parasuraman (1988) describes several
insight regarding the relative contribution of each of dimensions that are used to measure service quality,
specific complain management dimension to the especially in the banking sector, namely Reliability,
customer satisfaction, and customer loyalty. Emphathy, Efficiency, Procedure, Assurance and
Responsiveness.
Keywords:- Service Quality, Complain Management,
Customer Satisfaction, and Customer Loyalty. Relationship between Service Quality and Customer
Satisfaction. LeBlanc and Nguyen (1988) state that the
I. INTRODUCTION provision of good services will give satisfaction to
customers. Gounaris et al., (2003) said that in a financial
Increasing competition in the banking industry to institution, the perception of services quality is one of the
quickly adjust to the development of the surrounding important factors that determine customer satisfaction. The
community. This was marked by the increasingly better quality of services, the higher satisfaction of
widespread expansion of foreign banks trying to enter the customer.
banking market in Indonesia. The banking industry is
currently competing to improve services to customers, by B. Complaint Handling
providing facilities that facilitate these customers in Kau and Loh (2006) stated that handling of the
conducting financial transactions. One example is the company means the embodiment of the company's strategy
application of e-Banking or the ease of making transactions and tactics in facing the superiority of competitors'
by not coming directly to the bank, for example through strategies and tactics. Handling complaints can be an
sms banking, namely transactions using the Short Message important instrument in controlling conflict between

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Volume 5, Issue 3, March – 2020 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
companies and customers about dissatisfaction. Straus and customer ratings of the reliability of service delivery, but
Seidel (2006) say that complaint handling by banks is a tool also from customer experience with the service delivery
to boost the profitability of the bank concerned. process.

The relationship between Complaint Handling and Relationship between Customer Satisfaction and
Customer satisfaction. Fornell and Wernerfelt (1987) said Customer Loyalty. Bloemer and Ruyter (1997) state that
that if a customer submits a complaint, a good responses satisfaction is the basis for the emergence of loyalty.
from the bank will be able to make the customer change his Satisfaction has a positive and significant influence on
attitude from dissatisfaction to satisfaction. When a loyalty which will create the passion to use the service in
customer submits his complaint, the customer gives the the future. LeBlanc and Nguyen (1988) said that there is a
bank an opportunity to fix it, and interestingly if the bank positive and significant influence between customer
can handle the complaint properly, it will be able to satisfaction and customer loyalty.
increase the satisfaction of the customer.
D. Customer Loyalty
C. Customer Satisfaction Foster and Cadogan (2000) stated the attitude of the
Kotler (1997) states satisfaction as an act of one's customer in determining his choice to continue to use the
feelings after comparing the performance or results that he products or services of a company. The attitude determines
gets the expectation. So the level of satisfaction is a these choices to make a commitment and repurchase the
function of the difference between perceived performance company.
and expectations, the more appropriate between the
performance or results obtained with expectations, the E. Thinking Framework
higher the satisfaction will be obtained. Demitriades (2006) The thinking framework for this research is as
said customer satisfaction can be related not only on follows:

Fig 1:- Thinking Framework

F. Hypothesis namely: Reliability as measured by the ability of employees

Based on these problems and literature related to this in the company to minimize the mistakes that will appear in
research, the following three hypotheses could be drawn as the transaction process, Emphaty as measured by the ability
it follows : of employees to be pleasant to customers by giving good
H1: Allegedly the quality of service has a positive effect on attention or services, Efficiency that is measured from the
customer satisfaction ability possessed by employees to take down the
H2: Allegedly the handling has a positive effect on transactions quickly and accurately. ( not in ), Financial
customer satisfaction access as measured by the ability of the company in
H3: It is suspected that customer satisfaction has a positive providing tools or machines that are useful to facilitate
effect on customer loyalty transactions and services to customers.

III. METHODOLOGY Complaint Handling (X2). Handling complaints is the

ability and willingness of companies to do handling quickly
The research is explaining the positions of the any complaints that come from customers. Then how
variables to be reseached as well influence between one complaints can be resolved satisfactorily to customers and
variable with another variable or by to see the effect of how simple and easy procedure for filing complaints for
independent variable (service quality and handling the customers. The service quality variable has 4 indicators,
complaints) to the variable dependent, that is customer namely: The quickness of complaint handling as measured
loyalty and satisfaction. by the company's readiness in handling complaints from
customers, the faster the complaints from customers receive
Quality of Service (X1). Quality of service is all forms follow-up, the more they can grow the satisfaction of the
of activities carried out by the company to meet consumer customer and vice versa, Satisfactory resolution of the
expectations. The service quality variable has 4 indicators, problem as measured by adjusting complaints that satisfy

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Volume 5, Issue 3, March – 2020 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
the customer will satisfy the customer and how the IV. RESULTS AND DISCUSSION
procedure for submitting complaints is simple and easy for
the customer, The simplicity of procedure for filing a A. The Descriptive Data Analysis
complaint that is measured from the ease in the procedural The sample is part of the number and characteristics
or bureaucratic process that is as simple and as easy as possessed by the population (Sugiyono, 2008: 81). The
possible for customers who want to file a complaint with sample in this study were 115 customers conduct banking
the bank. transactions at bank X. The sampling technique will be
used in this research by using purposive sampling method,
Customer Satisfaction (Y1). Customer satisfaction is namely sampling based on criteria certain. The criteria set
the result of a customer's final evaluation of a banking out in this sample are deposit customers who has been a
products by comparing these products with similar deposit customer at Bank X for 4 years. The reason why it
productsfrom a competitor's bank, whether the product it was chosen customers who have been deposit customers for
receives is in accordance with its expectations. The 4 years because they can be considered as loyal customers
customer satisfaction variable has 3 indicators, namely: The and have done or have experience doing banking
right choice shows the right choice, which is measured transactions are expected to answer the questions /
from the feelings arising from customers in choosing a questionnaires submitted (Bloemer et al., 1998).
company as their business partner, whether the company is
right or not, Conformity expectations indicate the B. Validity test
appropriateness of expectations, as measured by customer According to Ridgon and Ferguson (1991) and Doll,
feelings arising from the company's ability to meet all Xia and Torrzadeh (1994) in Yamin and Kurniawan (2009:
expectations, Facility satisfaction shows the satisfaction of 36), a variable is said to have validity good for a latent
the facility as measured by the feeling of satisfaction from construction if: The value of t factor load (loading actor) is
the customer of the facilities that have been provided and greater than the critical value (> 1.96 or practically> 2); and
the company's willingness. The standardized factor loading is greater than or equal to
0.7.
Customer Loyalty (Y1). Customer loyalty is the
attachment of customers to a brand, shop, manufacturer, C. Reliability Test
provide services, or other entities based on favorable Reliability is closely related to the consistency of
attitudes and good responses, like a repeat purchase. manifest variables in measuring latent construction.
Customer loyalty as measured by the attitude of customers According to Yamin and Kurniawan (2009: 36),
in determine the choice to keep using the product or service construction reliability said to be good if the value of
of the company. The customer satisfaction variable has 4 reliability constraints> 0.7 and the extracted variance
indicators, namely: Recommendations measured by the value> 0.5. From table 1 several things can be known,
customer's willingness to invite others to make a purchase namely: Service Quality has a significant positive effect to
or use the product, Purchases represent are measured by the Customer Satisfaction, it can be seen from the value of t
customer's willingness to buy the products offered by the arithmetic = 3.74 which is greater than t table 1.96. The
company, The first choice measured by the customer's estimated value verify that Service Quality has a significant
willingness to make the company the first choice for his positive effect on Customer Satisfaction of 0.42. Handling
decision, Word of mouth is measured by the willingness of of Complaints has a significant positive effect to Customer
customers to talk about good things about the product from Satisfaction, it can be seen from the value of t arithmetic =
the company to others. 4.32, which is greater than t table 1.96. The estimated value
verify that the Handling of Complaints is significantly
positive for Customer Satisfaction of 0.62. Customer
satisfaction has a significant positive effect to Loyalty it
can be seen from the value of t count = 2.62 which is
greater than t table 1.96. The estimated value verify that
Customer Satisfaction has a significant positive effect on
Loyalty of 0.25.

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Volume 5, Issue 3, March – 2020 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165

Fig 2

Table 1

V. DISCUSSION AND CONCLUSION value of Loyalty which is the mean Customer

Satisfaction variable is 3.52 and the mean variable
A. Discussion loyalty is 3.49. It means that the average respondent
From the several tests results and analyzes, the agree to each question Customer Satisfaction in
following conclusions that could be drawn like this : Loyalty. The results of data processing verify that
 Based on the analyze descriptively by analyzing the Customer Satisfaction has a positive effect to Loyalty.
mean value of Service Quality, and the mean value of
Customer Satisfaction which is the mean variable B. Conclusion
Service Quality is 3.48 and the mean variable Customer Based on the results of discussion, it can be explained
Satisfaction is 3.52. It can be concluded that the average the conclusions from the results of this research, as follow
respondent agree to every question of Service Quality as :
and Customer Satisfaction.  Based on the results of data processing verify that
 Based on the analyze descriptively by analyzing the Service Quality has a positive effect on Customer
mean value of Handling Against Complaints, and the Satisfaction. These results indicate that customers feel
mean value of Customer Satisfaction where the mean satisfaction to make transactions in Bank X.
variable Handling Against Complaints is 3.65 and the  Based on the results show that the customer feels
mean variable Customer Satisfaction is 3.52. It can be satisfaction to make transactions in Bank X, if the
concluded that the average respondent agrees to each customer has a positive perspective on the process of
question on Handling Complaints and Customer Handling Complaints at Bank X.
Satisfaction. The results of data processing prove that  These results indicate that if consumers are satisfied to
the Handling of Complaints has a positive effect to make a transaction at Bank X, it will affect loyalty at
Customer Satisfaction. bank X. Thus, the third hypothesis states that customer
 Based on the analyze descriptively by analyzing the satisfaction affects the loyalty can be accepted.
mean value of Customer Satisfaction and the mean

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Volume 5, Issue 3, March – 2020 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
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