Effect of commitment and customers’ satisfaction on the relationship between service quality and customer retention in rural banks in Makassar, Indonesia

Effect of commitment and customers’ satisfaction on the relationship between service quality... PurposeThe purpose of this paper is to investigate the effect of commitment and customer’s satisfaction on the relationship between service quality and customer retention.Design/methodology/approachThe research was conducted on the entire customer rural banks (BPR) in Makassar, South Sulawesi Province; the sample size comprised 300 respondents. Analysis equipment used in this study is a quantitative approach that is inferential statistical analysis with structural equation modeling based variance is known as a method WarpPLS.FindingsThe results of the analysis show that there is significant influence between the variables of service quality, commitment, customer satisfaction, and customer retention. It was also found that the results of the variables commitment and customer satisfaction mediate the effect of service quality on customer’s retention.Originality/valueThe study showed the mediation effect (using the Sobel test) of service quality on customer retention using commitment and customer satisfaction as intervening variables in rural banks; and the study was conducted in the customer rural banks (BPR) in Makassar, South Sulawesi Province, where no such study for this relationship has been conducted previously. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Management Development Emerald Publishing

Effect of commitment and customers’ satisfaction on the relationship between service quality and customer retention in rural banks in Makassar, Indonesia

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Publisher
Emerald Group Publishing Limited
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0262-1711
D.O.I.
10.1108/JMD-12-2016-0303
Publisher site
See Article on Publisher Site

Abstract

PurposeThe purpose of this paper is to investigate the effect of commitment and customer’s satisfaction on the relationship between service quality and customer retention.Design/methodology/approachThe research was conducted on the entire customer rural banks (BPR) in Makassar, South Sulawesi Province; the sample size comprised 300 respondents. Analysis equipment used in this study is a quantitative approach that is inferential statistical analysis with structural equation modeling based variance is known as a method WarpPLS.FindingsThe results of the analysis show that there is significant influence between the variables of service quality, commitment, customer satisfaction, and customer retention. It was also found that the results of the variables commitment and customer satisfaction mediate the effect of service quality on customer’s retention.Originality/valueThe study showed the mediation effect (using the Sobel test) of service quality on customer retention using commitment and customer satisfaction as intervening variables in rural banks; and the study was conducted in the customer rural banks (BPR) in Makassar, South Sulawesi Province, where no such study for this relationship has been conducted previously.

Journal

Journal of Management DevelopmentEmerald Publishing

Published: Feb 12, 2018

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