How to Increase Customer Loyalty and Satisfaction Based on Service Quality and Product Innovation
Nurul Qomariah, Nursaid, Dian Yoga Angga Wijaya

Universitas Muhammadiyah Jember

Abstract

Banks are very vital institutions in improving the economy of a country, both conventional banks and Islamic banks. This paper aims to analyze and determine the impact of product innovation and service quality on customer loyalty with customer satisfaction as an intervening variable at PT. Maybank Banyuwangi Branch. The number of customers of PT. Maybank Banyuwangi Branch as of April 2021 is a total of 1,613 customers, where this number is used as the research population. The sample is determined by the Slovin formula with an error rate of 10%, so a total sample of 100 customers is obtained. In order for this research to work, a measuring instrument was used in the form of a questionnaire which would later be tested by testing the validity and reliability of the data. Hypothesis testing was carried out using SEM analysis with Smart PLS 3.0. The results of the study state that product innovation has an influence on customer loyalty. Service quality has an impact on customer loyalty. Product innovation has an influence on customer satisfaction. Service quality has an impact on customer loyalty. Customer satisfaction has a positive and significant influence on customer loyalty at PT. Maybank Banyuwangi Branch.

Keywords: service quality- product innovation- customer satisfaction- customer loyalty.

Topic: Marketing management