The Role of Customer Service and Customer Trust in Enhancing Satisfaction and Loyalty: Case in Islamic Microfinances

Fany Nelvana Arse

2019

Abstract

The purpose of this study is to measure the relationship between variables of Service Quality, Customer Trust, Satisfaction, and Loyalty among costumers of Islamic cooperatives/Baitul Maal Wa Tamwil (BMTs) in Indonesia. This study uses a field survey which is based on self-administered questionnaires. The data were taken from 300 respondents in West Java Province with several major cities as the representatives. The sample data were analyzed statistically through path analysis by using Partial Least Square Structural Equation Model (PLS-SEM) to determine the perception of Service Quality, Customer Trust, Satisfaction, and Customer Loyalty. This study found that Service Quality has a positive effect on Satisfaction (measured through Reliability, Empathy, and Responsiveness). It, then, becomes an important determinant of Satisfaction. Satisfaction later also has a significant positive effect on Loyalty. Therefore, from the managerial perspective, this study provides guidance for Islamic cooperatives/BMTs managers to build Customer Trust in addition to providing high Service Quality. It must be considered because the emergence of trust in an institution can create customer satisfaction and loyalty toward that institution, in this case Islamic cooperatives/BMTs. This research is expected to have practical implication for Islamic cooperatives/BMTs policy makers to better understand the behavioral intentions of cooperatives/BMTs customers.

Paper Citation

in Harvard Style

Arse F. (2019). The Role of Customer Service and Customer Trust in Enhancing Satisfaction and Loyalty: Case in Islamic Microfinances.In Proceedings of the International Conference on Creative Economics, Tourism and Information Management - Volume 1: ICCETIM, ISBN 978-989-758-451-0, pages 192-197. DOI: 10.5220/0009867101920197

in Bibtex Style

@conference{iccetim19,
author={Fany Nelvana Arse},
title={The Role of Customer Service and Customer Trust in Enhancing Satisfaction and Loyalty: Case in Islamic Microfinances},
booktitle={Proceedings of the International Conference on Creative Economics, Tourism and Information Management - Volume 1: ICCETIM,},
year={2019},
pages={192-197},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009867101920197},
isbn={978-989-758-451-0},
}

in EndNote Style

TY - CONF

JO - Proceedings of the International Conference on Creative Economics, Tourism and Information Management - Volume 1: ICCETIM,
TI - The Role of Customer Service and Customer Trust in Enhancing Satisfaction and Loyalty: Case in Islamic Microfinances
SN - 978-989-758-451-0
AU - Arse F.
PY - 2019
SP - 192
EP - 197
DO - 10.5220/0009867101920197