Satisfied and Loyal Customers: Unveiling the Role of Bank Service Quality

With customer satisfaction serving as the mediating variable, investigating and assessing the connection between customer loyalty and bank service quality is the goal of this study. This research is focused on civil servants who use consumer products. The sample size is determined using the formula proposed by Ferdinand (2014), resulting in 110 respondents selected through purposive sampling. This research utilizes primary data collected through questionnaires. Data analysis in this work is done using Structural Equation Modeling, which provides Path Analytic capabilities. The path analysis used in this research is Partial Least Squares (PLS), using Smart-PLS software. The study’s conclusions show that customer satisfaction is impacted by bank service quality; Bank Service Quality also affects customer loyalty; satisfaction impacts customer loyalty; and indirectly, Bank Service Quality influences customer loyalty through the interaction of customer satisfaction, which as an intervening variable. Based on the Bank Service Quality Model, this study comes to the conclusion that customer satisfaction and loyalty are impacted by bank service quality.