Customer Loyalty - Quality of Service PDF

journal of managementReview
ISSN-P : 2580-4138ISSN-E2579-812X http://jurnal.unigal.ac.id/index.php/managementreview

Volume 3 Number 1 Page (299-305)
Publiser
The Graduate Program of Universitas Galuh
Master of Management Studies Program
©2019
Customer Loyalty: Quality of Service

Apri Budianto1
1
Management Program of Economic Faculty of Galuh University
email: apribudiantogaluh@gmail.com
Article History : Abstract - This article focuses on the influence of service quality
on customer loyalty to modern market customers. This article is
Recieved 7 January 2019 motivated by the increasing number of modern market
Recieved in revished form customers caused by the quality of service that affects the
21 January 2019 increasing loyalty of customers. The formulation of the problem
Acepted 25 January 2019 in this article is how the quality of service influence on
Available offline 29 January 2019
Available online 30 Januari 2019
customer loyalty. The working hypothesis in this article is:
"Service Quality positively affects customer loyalty".The method
employed in making this article was done to get a picture of the
effect of service quality on customer loyalty to modern market
Language Transcript : customers. Data were collected through data collection
English (en) techniques in the field using explanatory survey method.
Customer loyalty is influenced by the service quality of 38.30%.
This means that customer loyalty is only affected a small
portion of service Quality of 38.30%. Thus tcount> ttable was
Key Words : 3.421> 1.667. Then the null hypothesis (Ho) is rejected. This
means that service quality has a positive effect on customer
The better the quality of service loyalty.Service Quality positively affects customer loyalty,
The higher the customer loyalty meaning the better the quality of service provided the more
loyal customers.
1. INTRODUCTION modern market. With the development of

modern market, the core concept, trend, and
Marketing activities is a function that
marketing task also changed. The core
directly determines corporate objectives
concept of marketing is a set of concepts
(corporate objectives) and activities that
creating a foundation for marketing
have a wide scope, because in addition to
management and holistic marketing
including internal as well as external
orientation (Kotler Keller, 2009: 29).
company. As stated by Kotler & Keller
(2009: 6) states that "marketing is a social In the globalization era, there has been a
and managerial process whereby very tight competition among Retail
individuals or groups aim to meet their Companies, even among individuals, thus
needs and desires through creativity, supply demanding innovation based competition
and exchange of product value with others". (innovation based competition). In fact,
The most basic concept of marketing is how with the growing integration of the world
a company can meet customer needs economy, almost all companies, especially
(costumer requerement) and conduct retail businesses, will face demanding and
environmental analysis (Walker, 1999: 94). demanding customers. Such customers
always demand better quality, lower prices,
The existence of a change of trade
timely supply, and excellent service. Thus
paradigm in Indonesia market not only
only an efficient, effective and innovative
traditional market but also developed
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doi: http://dx.doi.org/10.25157/jmr.v3i1.1808
© 2019, January
retail and productive company that will Based on the above problems, the authors
remain able to survive even a winner in the set the title of the article as follows "Quality
competition, while those who are unable to of Service Influential Against Loyalty of
compete will suffer a setback and not even Modern Market Customers".
close the possibility of becoming bankrupt.
Retail business in Indonesia has developed 2. LITERATURE REVIEW
rapidly in recent years with various formats 2.1 The Nature of Service Quality
and types, especially the growth of
The quality of service is complex and most
minimarket either under shelter or not. This
often discussed in marketing disciplines.
proves that the growth of trading area is
The quality of service described in general
increasing rapidly. This is as a result of the
and thoroughly evaluated in services is
development of manufacturing businesses
even a multidimensional conception built
and market opportunities are quite open, as
through an evaluation of the construction of
well as government efforts to encourage the
a number of service-related attributes. It is
development of retail business. The
for this reason that the notion of the concept
Government plays a role in protecting the
of service quality continues to evolve,
national retail, through regulations and
especially the need for models to assess the
laws. Retail companies in Indonesia are still
quality of service provided by the modern
dominated by foreign investors, Foreign
market.
investment in Indonesia in the form of: 1)
franchise system partnerships such as Body Taking into account the understanding of
Shop, JC Penney, and Mark & Spencer; 2) the service quality of some experts above,
cooperative-technical cooperation such as the factors that affect the quality of service,
Sogo and Seibu, and 3) joint venture the target and the superior service benefits
partnership. (Christina Whidya Utami, that reflect the application of service
2006: 19). quality, the understanding related to the
quality of service, and the grouping of the
Retail business is a difficult business to
tasks and skills of the modern market
differentiate, hence retail requires
employee, can be stated that what is meant
relationship effort to realize customer
by the quality modern market service is the
retention and customer loyalty. The
level of performance excellence
relationship effort is an active business of
(performance) or action, benefits and
retail in contributing to customer
function of modern market employees in
expectations to realize customer retention
the operations of the company to serve
through the delivery of core products and
customer needs appropriately and
services that create sustainable relationships
satisfactorily and in accordance with
or create customer loyalty. Modern market
customer expectations.
that grows and develops in Indonesia
generally and in Ciamis in particular According Tjiptono (2007: 140) customer
consists of two forms of modern markets service perceived quality model consists of
namely minimarkets and Department store. two main dimensions, namely:
The problem that can be answered through 1. Technical Quality (outcome dimension),
this article is the influence of service related to the quality of customer
quality to the loyalty of the modern market perceived service output. This
customers. The working hypothesis in this component can be translated into three
article is: "Quality of service positively types according to Zeithaml et al. which
affects customer loyalty". consists of: search quality (quality that
can be evaluated before the customer
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© 2019, January
purchase), experience quality (quality everything to the service provider along
that can only be evaluated after buying with the employees and the system.
or consuming customers), and credence
5. Service Recovery
quality (a quality that is difficult to
evaluate customers even if the service The customer realizes that if there is an
has been consumed). error or if something unexpected happens,
the service provider will take immediate
2. Functional Quality (process-related
action to control the situation and find the
dimension), relating to the quality of
right solution.
service delivery or concerning the
process of transferring the technical 6. Reputation and Credibility
quality, output or outcome of services Tjiptono (2008: 78) states that today's
from the service provider to the superior service quality is seen as a tool to
customer. gain competitive advantage in several
The dimension of service quality is also organizations or companies. Superior
expressed by Gronroos in Tjiptono (2007: service quality and consistency can foster
136), which formulates the service quality customer satisfaction which in turn will
dimension as follows: provide various benefits. Kotler in Tjiptono
(2007: 121) states that the quality of service
1. Professionalism and Skills
should start from the needs and customer
This first criterion is an outcome-related satisfaction as well as positive perceptions
criteria in which the customer realizes that of the quality of service.
service providers, employees, operational
Tanner (1998: 13, No. 6) explains that, after
systems, and physical resources possess the
making a purchase, there are several
knowledge and skills needed to solve
possible actions that customers need to be
customer problems professionally.
evaluated (post purchase evaluation),
2. Attitudes and Behavior namely: (1) no longer buy, (2) repeated
buying (repurchase), (3) buy again
This criterion is a process-related criteria.
repeatedly and invite others to buy the
Customers feel that company employees are
product (refferall). Buying back is done by
concerned about them and are trying to help
the customer if they are satisfied, and if the
in solving their problems spontaneously and
product/service performance is improved
happily.
according to customer's expectation, then
3. Accessibility and Flexibility the customer will have high loyalty to the
This criterion is a process-related criteria. product/service (Horovitz, 2000: 73). Roger
The customer feels that the service J. Best, (2008: 38) states that the rating of
provider, location, working hours, customer satisfaction measurement is very
employees, and operational systems are dissatisfied, dissatisfied, somewhat
designed and operated in such a way that dissatisfied, somewhat satisfied, , and (very
customers can access easily. It is also satisfied).
designed with the intention of being 2.2 The Nature of Customer Loyalty
flexible in customizing customer requests
Service loyalty is more likely to be felt for
and desires.
the customer of an organization or company
4. Realibility and Trustworthiness than a tangible product customer, and
This criterion is a process-related criteria in according to Macintosh (1998) because
which the customer understands that service loyalty is more dependent on the
whatever happens, they can entrust development of interpersonal relationship
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© 2019, January
as opposed to loyalty with tangible expected he will not switch to another
products. This means more service loyalty company (Blackwell, Miniard, Engel, 2001:
depends on the development of 273).
interpersonal relationships that are contrary
The marketing company's paradigm shift
to loyalty to tangible products.
from satisfaction to customer loyalty is also
Furthermore, according to Zeithaml (1981)
stated by Bothe, (2000: 107) who states that
"furthermore, the influence of percerfed
"future corporate orientation is shifting
risk is greater in the case of service, as
from a conventional approach to
customer loyalty may act as a barrier to
contemporary appraisal." The conventional
customer switching behavior". This means
approach emphasizes customer satisfaction,
that the effect of greater customer loyalty is
cost reduction, market share and market
felt in service products, this is reinforced in
research, while the contemporary approach
the opinion of Snyder (1986) "indeed, it has
focuses more on customer loyalty, customer
been demontrated that loyalty is more
retention, and lifelong customers. The
prevalent among service customers than
relationship between customer satisfaction
among the customer of tangible product". It
and customer loyalty according to Schnaars
means it has been proven that customer
(1998: 204) can be divided into four
loyalty is more among service customers
groups, namely: (1) failures, ie where the
than customers of tangible products. Thus,
level of satisfaction and loyalty is low or in
intangible traits such as reliability and trust
this case not satisfied and not loyal ; (2)
play a major role in fostering or
defector (crossing), namely high customer
maintaining loyalty.
satisfaction but low loyalty; (3) forced
Loyalty according to Liljander (1995) loyalty, where customer satisfaction is low
"Loyalty is frequently observed behavior" but loyalty is high. This can happen
loyalty is often defined as the actual because customers feel attached to the
behavior that encourages the performance company's loyalty promotion program; (4)
of service organizations, but behavioral successes, where the level of customer
measures such as purchasing and buying satisfaction and customer loyalty is high.
wholesale are criticized for lack of basic Conditions such as this is very possible the
conceptions and have a narrow sense of occurrence of word of mouth
view which focuses on the results of what is communication (WOM) is positive for the
actually a dynamic process, for example a company.
low degree of repeat purchase of certain
Where loyalty leads more to the behavior
services may be the result and situational
shown by "routine purchases based on
factors such as infidelity, the search for
decision-making units". Further more
variety and the lack of buyer's preferences
firmly, Griffin (2000: 35) states that
or preferences.
customer loyalty levels can be classified
Loyal customers are the most valuable asset into: Suspect, covering all people who may
for the company in improving the be buying company products. The company
profitability of the company. To be able to calls it suspect because they believe they
make loyal customers, emphasize the will buy the company's products but they do
importance of the company seize new not know anything about the company and
customers and retain customers, need a high the products it offers. Prospect, are those
commitment both in terms of funds and who have the need for a product and have
human resources so that product quality is the ability to get it. They already know
really in accordance with the wishes of about the company and the products it
customers. If the customer is satisfied, it is offers. Disqualified Prospect, the prospect
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© 2019, January
who knows the existence of a company's This type of research was causality, because
product, but they do not "have a need" for it would be tested causal effect between
the product, or they do not have the indevenden and dependent variable. The
purchasing power to get it. " First time unit of analysis in this study was individual,
customer, the customer who buys for the because only the people who made the
first time. Repeat customers, customers respondents. The time horizon in this study
who have purchased the same product was cross-sectional, since information from
twice, or purchased two different products some populations (respondent sample) was
on two different occasions. Clients, ie collected directly at the scene empirically in
customers who buy all the products the order to know the opinion of some
company offers, they need. The company's population on the object being studied.
relationship with this type of customer "has
The type of data needed in this study was
been very strong and lasting", they are not
primary data and secondary data. Primary
budging with the company's competitor's
data was the set of information obtained in
products. Advocates (advocates), ie
survey by interview method and using
customers of company products who
structured questionnaire. Secondary data
encourage or encourage their friends to
were obtained by reviewing data obtained
consume products offered by the company.
from the recipient community, studying
Furthermore Griffin (2000: 89) states the documents, research reports, publications
criteria of loyal customers are: (1) Repeat and other literature supporting research.
purchase (buyback); (2) Retention, where
According to Nasir (1999: 99), "Design
the customer only purchases products from
research is all the necessary processes in
the company; (3) Related sales of services,
planning and conducting research". In this
where customers want to utilize the same
research, research design used is
products in the future; (4) Referrals or
explanatory survey (explanatory survey). In
refers to others, where customers advise
connection with this, Rusidi (2003: 38)
others to consume products.
further elaborate that xxplanatory research
survey, as stated Kerlinger in Sugiyono
3. THE METHOD (1988: 3) is research conducted on large
The method employed in making this and small populations, but the data studied
article is done to get a picture of the effect is data from the samples taken from the
of service quality on the loyalty of modern population, so that the relative incidence of
market customers. Data were collected occurrences, distribution and relationship -
through data collection techniques in the relationship between variables, sociological
field using explanatory survey method. and psychological.
Based on consideration of research Research was done by collecting qualitative

objectives, this research used verification data, which then presented in the form of
and descriptive problem. The nature of numbers (quantified) to be tested verifikatif
verification research basically wanted to in accordance with the data analysis design.
test the truth of a hypothesis implemented
through data collection in the field. Given 4. RESULT AND DISCUSSION
the nature of this research was descriptive 4. 1 The Research Results
and verifikatif implemented through data
The result of the SPSS estimation version
collection in the field, the research method
17, each research indicator, need to be
used was descriptive survey method and
explained further. This explanation is
explanatory survey method.
necessary because each variable is
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© 2019, January
measured indirectly, but is formed by a the quality of services provided by
number of indicators that need to be competitors, types of products or services
explored for its role to form the variable purchased by consumers, as well as internal
variables. For more details, will be factors found in consumers such as
discussed in each hypothesis. consumer behavior itself. These factors are
not the authors carefully so that it becomes
As a result of calculation using SPSS
the material of the next researcher both to
version 17 program seen in recavitulation
be done by researchers and other
table result of correlation calculation
researchers.
between indevenden variable to devenden
variable as follows: While to test the hypothesis by comparing
Table 1. Recapitulation Result of correlation
thtung with tcritic namely: 3.421> 1.667.
calculation between independent Testing Criteria:
variable to dependent variable - Reject Ho if tcount> ttable, meaning
Correlation t/f p-
significant correlation coefficient and the
Variable
(r) count value influence of Quality of Service to Customer
Quality of Service to
0,619 3,421 0,000 loyalty.
Customer Loyalty
Source; Results of SPSS Processing - Reject Ho if tcount<ttable, meaning
Based on table 1, it can be seen that the correlation coefficient is not significant and
independent variable has a high enough there is no influence from service quality to
correlation level to the dependent variable. customer loyalty.
For further research, it will discuss how the Thus tcount> ttable is 3.421> 1.667. Then the
influence of independent variables to the null hypothesis (H o) is rejected. This means
dependent variable. Moreover, the writer that the quality of service positively
will discuss how the results of hypothesis influence on customer loyalty. Therefore,
testing work which has been predicted on the working hypothesis can be accepted and
the preliminary investigator in this article. tested its truth.
4. 2 DiscussionThe Effect of Service
Quality (X) on Customer Loyalty (Y) 5. CONCLUSION
Testing the influence of Service Quality (X) Based on the results of descriptive analysis
on Customer Loyalty (Y) is done by and hypothesis testing that has been
calculation as follows: described in the previous discussion, it can
be drawn conclusions in this article as
Coefficient of Determination (KD) follows: Quality of service based on the
= r2 x 100 perception of the modern market customers
= 0,6192 x 100 are in the Good category. By using SPSS
= 38,30 % calculation, it is found that Service Quality
Therefore, Customer Loyalty is affected by Variables have bigger than tcritic, all
Quality service of 38.30%. This means that indicator of service quality is significant.
Customer Loyalty is affected by a small Based on correlation coefficient test that
portion of Service Quality of 38.30%.The quality of service is positive and significant
magnitude of the direct effect of service to customer loyalty. It means the better and
quality on customer loyalty is only 38.30%, the right quality of service will be more
thus customer loyalty is influenced by other loyal consumers. The working hypothesis is
factors, namely 100% - 38.30% = 61.70%. well-tested and has a significant
This means that Customer Loyalty is still significance level because p-value is
largely influenced by other factors such as 0.0000.
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© 2019, January
6. REFERENCES
Blaekwell., D., Rogers., Paul W., Miniard,
and James F. Engel, 2001, Consumer
Behavior, Orlando: The Dryden Press
Harcourt Brace College Publisher.
Christina Whidya Utami, 2006, Manajemen
Ritel Strategi dan Implementasi Ritel
Modern, Penerbit Salemba Empat,
Jakarta
Fandy Tjiptono, 2008, Strategi Pemasaran,
Yogyakarta: Andi Offset.
Griffin, Jill. 1995. Customer Loyalty : How
to Earn It, How to Keep It. USA :
Lexington Books.
Hawkin, Del I, Roger J. Best, and Kenneth
A. Coney, 2000, Consumer Behaviour,
Building Marketing Strategy, Eight
Edition, McGraw-Hill, United State.
Horovitz, Jacques, 2000, Seven Secrets of
Service Strategy, Prentice Hall, Hrlow,
England.
Kotler, Philip, Keller, Kevin, Lane. 2009,
Marketing Management : Pearson,
Education, Inc. Upar Suddle River,
New Jersey, 07458.
Walker, Orville, C., Harper W., Boyd, and
Jean Claude Larreche, 1999,
Marketing Strategy: Planning and
Implementation, Third Edition, Irwin
Mc. Graw Hill, Boston.
Zeithaml A., Valarie dan A. Parasuraman,
Leonard L. Berry, 1990, Delivering
Quality Service, Balancing Customer
Perceptions and Expectations, New
York : The Free Press, A. Division Of
Macmillan, Inc.,
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© 2019, January

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journal of managementReview

ISSN-P : 2580-4138ISSN-E2579-812X http://jurnal.unigal.ac.id/index.php/managementreview

Customer Loyalty: Quality of Service

1. INTRODUCTION modern market. With the development of

Based on consideration of research Research was done by collecting qualitative

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