Research Paper
Year: 2020 | Month: June | Volume: 7 | Issue: 6 | Pages: 202-208
Effect of Product Quality and Service Quality towards Loyalty through Customer Satisfaction at the Taplus BNI Medan Petisah Sub Branch
Harris Sirait1, Arlina Nurbaity Lubis2, Parapat Gultom2
1Postgraduate Students Department of Management, Faculty of Economics and Business at Universitas Sumatera Utara, Indonesia
2Postgraduate Lecturer Department of Management, Faculty of Economics and Business at Universitas Sumatera Utara, Indonesia
Corresponding Author: Harris Sirait
ABSTRACT
One of the services industries that engage in finance is the banking industry. The main activities of banks generally do raise funds from the community and channel it to the community. The purpose of this research is to see the effect of product quality and service quality towards loyalty through customer satisfaction. This research is a study that tests the relationship of more than two variables. The population in this research is the customer of the Taplus BNI Medan Petisah Sub Branch with sample withdrawal method using purposive sampling with hypothesized testing device using structural equation modeling (SEM)-partial least square (PLS). The first test results show the product quality effect towards the customer satisfaction with p-values 0.000, the service quality effect towards the customer satisfaction with p-values 0.000. Furthermore, customer satisfaction is significantly effect towards loyalty. In the results of the study also showed that the product quality does not have a significant effect towards loyalty with p-values 0.413 and service quality does not have a significant effect towards loyalty with p-values 0.057. The product quality and service quality is not able to give direct effect towards loyalty. The loyalty is established when the bank customer is able to feel the level of satisfaction he hoped. In terms of creating satisfaction, the bank needs to improve the service quality to the customer, and further give the customer trust for the product used.
Keywords: Product Quality, Service Quality, Loyalty, Customer Satisfaction
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