Improve the quality of services in all dimensions

Oct 13, 2025 by pynkocean.com 141 views

The Influence of Service Quality on Customer Satisfaction and Loyalty at PT. Bank Negara Indonesia Branch of the University of North Sumatra

Introduction

In today's competitive banking industry, service quality has become a crucial factor in determining customer satisfaction and loyalty. PT. Bank Negara Indonesia (Persero) Tbk, Branch of the University of North Sumatra, is no exception. The bank has been experiencing fluctuations in the number of savings accounts, deposits, and deposit certificates (CD) every year, which has raised concerns about the impact of service quality on customer satisfaction and loyalty. This study aims to investigate the effect of various service quality dimensions on customer satisfaction and loyalty at PT. Bank Negara Indonesia (Persero) Tbk, Branch of the University of North Sumatra.

Background of the Study

The banking industry is highly competitive, and customers have numerous options to choose from. In this scenario, service quality becomes a key differentiator for banks to attract and retain customers. Service quality is a multidimensional concept that encompasses various aspects, including physical appearance (tangibles), reliability, responsiveness, assurance, and empathy. Each of these dimensions plays a crucial role in shaping customer perceptions and experiences.

Methodology

This study employed a descriptive quantitative research design with an explanatory approach. The population consisted of 250 customers who had transacted with PT. Bank Negara Indonesia (Persero) Tbk, Branch of the University of North Sumatra, for a minimum of six months. A sample of 71 customers was selected using non-probability convenience sampling techniques. The data collected was analyzed using descriptive statistical methods and path analysis.

Results

The results of this study showed that all dimensions of service quality simultaneously had a significant influence on customer satisfaction and loyalty. The F-test results indicated that the dimensions of service quality had a significant impact on customer satisfaction and loyalty. However, the T-test results revealed that the assurance and empathy dimensions partially affected customer satisfaction, with only the empathy dimension significantly affecting customer loyalty.

Discussion

The findings of this study suggest that service quality is a critical factor in determining customer satisfaction and loyalty. The dimensions of service quality, including tangibles, reliability, responsiveness, assurance, and empathy, all play a significant role in shaping customer perceptions and experiences. The results of this study indicate that the empathy dimension has the most significant influence on loyalty, suggesting that customers are more likely to remain loyal to banks if they feel understood and respected.

Implications

The implications of this study are significant for PT. Bank Negara Indonesia (Persero) Tbk, Branch of the University of North Sumatra. The bank should continue to improve the quality of services in all dimensions, with an emphasis on the empathy dimension to get closer to the customer. By doing so, the bank can maintain the stability of the number of customers and increase the growth of banking services in the future.

Conclusion

In conclusion, this study highlights the importance of service quality in determining customer satisfaction and loyalty. The findings of this study suggest that all dimensions of service quality have a significant influence on customer satisfaction and loyalty. The empathy dimension, in particular, has the most significant influence on loyalty, suggesting that customers are more likely to remain loyal to banks if they feel understood and respected. By understanding and applying these concepts, banks can formulate more effective strategies in building long-term relationships with customers and minimizing fluctuations in the number of accounts owned by their customers.

Recommendations

Based on the findings of this study, the following recommendations are made:

Improve the quality of services in all dimensions: PT. Bank Negara Indonesia (Persero) Tbk, Branch of the University of North Sumatra, should continue to improve the quality of services in all dimensions, including tangibles, reliability, responsiveness, assurance, and empathy.
Emphasize the empathy dimension: The bank should place a particular emphasis on the empathy dimension to get closer to the customer and build stronger relationships.
Formulate effective strategies: The bank should formulate more effective strategies in building long-term relationships with customers and minimizing fluctuations in the number of accounts owned by their customers.

Limitations

This study has several limitations, including:

Sample size: The sample size of 71 customers may not be representative of the entire population of customers at PT. Bank Negara Indonesia (Persero) Tbk, Branch of the University of North Sumatra.
Non-probability sampling: The use of non-probability convenience sampling techniques may introduce bias into the sample.
Descriptive quantitative design: The descriptive quantitative design may not capture the complexity of the relationships between service quality, customer satisfaction, and loyalty.

Future Research Directions

Future research should aim to:

Investigate the impact of service quality on customer satisfaction and loyalty in other industries: The study should be replicated in other industries to determine the generalizability of the findings.
Examine the role of technology in shaping customer experiences: The study should investigate the impact of technology on customer experiences and satisfaction.
Develop more effective strategies for building long-term relationships with customers: The study should aim to develop more effective strategies for building long-term relationships with customers and minimizing fluctuations in the number of accounts owned by their customers.
Frequently Asked Questions (FAQs) about the Influence of Service Quality on Customer Satisfaction and Loyalty

Q: What is service quality, and why is it important in the banking industry?

A: Service quality refers to the level of excellence in the services provided by a bank to its customers. It encompasses various aspects, including physical appearance (tangibles), reliability, responsiveness, assurance, and empathy. Service quality is crucial in the banking industry as it directly affects customer satisfaction and loyalty.

Q: What are the dimensions of service quality, and how do they impact customer satisfaction and loyalty?

A: The dimensions of service quality include:

Tangibles: Physical appearance, such as facilities, cleanliness, and staff appearance.
Reliability: Consistency in providing promised services.
Responsiveness: Ability to help customers quickly and efficiently.
Assurance: Confidence in the bank's ability to provide quality services.
Empathy: Understanding and respect for customer needs.

Each of these dimensions plays a significant role in shaping customer perceptions and experiences.

Q: What is the relationship between service quality and customer satisfaction?

A: Service quality has a direct impact on customer satisfaction. When customers experience high-quality services, they are more likely to be satisfied with their banking experience.

Q: What is the relationship between customer satisfaction and loyalty?

A: Customer satisfaction is a key driver of customer loyalty. When customers are satisfied with their banking experience, they are more likely to remain loyal to the bank.

Q: What are the implications of this study for PT. Bank Negara Indonesia (Persero) Tbk, Branch of the University of North Sumatra?

A: The study suggests that PT. Bank Negara Indonesia (Persero) Tbk, Branch of the University of North Sumatra, should continue to improve the quality of services in all dimensions, with an emphasis on the empathy dimension to get closer to the customer. By doing so, the bank can maintain the stability of the number of customers and increase the growth of banking services in the future.

Q: What are the limitations of this study?

A: The study has several limitations, including:

Sample size: The sample size of 71 customers may not be representative of the entire population of customers at PT. Bank Negara Indonesia (Persero) Tbk, Branch of the University of North Sumatra.
Non-probability sampling: The use of non-probability convenience sampling techniques may introduce bias into the sample.
Descriptive quantitative design: The descriptive quantitative design may not capture the complexity of the relationships between service quality, customer satisfaction, and loyalty.

Q: What are the future research directions for this study?

A: Future research should aim to:

Investigate the impact of service quality on customer satisfaction and loyalty in other industries: The study should be replicated in other industries to determine the generalizability of the findings.
Examine the role of technology in shaping customer experiences: The study should investigate the impact of technology on customer experiences and satisfaction.
Develop more effective strategies for building long-term relationships with customers: The study should aim to develop more effective strategies for building long-term relationships with customers and minimizing fluctuations in the number of accounts owned by their customers.

Q: What are the practical implications of this study for banks and financial institutions?

A: The study highlights the importance of service quality in determining customer satisfaction and loyalty. Banks and financial institutions should prioritize improving the quality of services in all dimensions, with an emphasis on the empathy dimension, to get closer to the customer and build stronger relationships. By doing so, they can maintain the stability of the number of customers and increase the growth of banking services in the future.