IJRR

International Journal of Research and Review

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Research Paper

Year: 2021 | Month: August | Volume: 8 | Issue: 8 | Pages: 207-213

DOI: https://doi.org/10.52403/ijrr.20210829

The Influence of Service Quality and Company Image to Customer Loyalty through Corporate Customer Satisfaction on XXX Group

Hastuti Sri Rahayu1, Paham Ginting2, Beby Karina Fawzeea3

1,2,3Department of Management, University of Sumatera Utara, Medan, Indonesia.

Corresponding Author: Hastuti Sri Rahayu

ABSTRACT

To increase economic growth through infrastructure development in Indonesia, the Government is accelerating projects that are considered strategic and have high urgency to be realized in a short period. XXX Group which is one of the large cement companies in Indonesia is a great opportunity because PSN will use a large amount of cement in its work. But XXX Group is not alone in the cement market, many competitors compete to get PSN (Project National Stategic), so each company uses a surefire strategy in marketing its products both in terms of service quality and by improving the company's image in the eyes of customers so that customers are satisfied with XXX Group and will increase customer loyalty. The purpose of this research is to know and analyze the influence of service quality and company image directly on customer loyalty and the indirect influence of service quality and company image on customer loyalty through customer satisfaction at XXX Group. The type of data used is quantitative in the form of primary and secondary data. The population of this study is a company that makes purchases as many as 42 projects and the sample recall used is a saturated sample so that all populations are used into samples. The data analysis method used is to use the structural equation model by using Smart PLS 3.0 program. The results showed the quality of service has a positive and significant effect on customer loyalty, the company's image has a positive and significant effect on customer loyalty. The quality of service has a positive and significant effect on customer satisfaction, the image has a positive and significant effect on customer satisfaction. Customer satisfaction has a positive and significant effect on customer loyalty. Customer satisfaction mediates the influence of service quality and company image in shaping customer loyalty. Coefficient of determining the influence of service quality and company image on customer loyalty (R2) by 97.6% and coefficient of determining the influence of service quality and company image on customer loyalty through customer satisfaction (R2) by 99.0%

Keywords: Service Quality, Company Image, Customer Satisfaction, Customer Loyalty.

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