Effect of Service Quality and Company Image on Customer Loyalty
through Customer Satisfaction at PT. Pos Indonesia (Persero)
Yogyakarta
Dwi Hari Laksana, and Danang Yudhiantoro
Universitas Pembangunan Nasional Veteran Yogyakarta
Keywords: Quality Services, Company Image, Customer Loyalty, Customer Satisfaction.
ABSTRACT: This study aims to analyze the effect of Service Quality and Company Image on Customer Loyalty through
Customer Satisfaction at PT. Pos Indonesia (Persero) Yogyakarta "The research method using the survey
method is used to obtain primary data through questionnaires. The sampling technique in this study uses a
purposive sampling method, the object of this study is the customer at PT POS Indonesia (Persero)
Yogyakarta, located on Jalan P Senopati no 2, Gondomanan, Yogyakarta. The results showed that service
quality, company image has a positive and significant effect on customer satisfaction, service quality,
company image has a positive and significant effect on customer loyalty, customer satisfaction has a
significant influence in mediating service quality on customer loyalty, while customer satisfaction has an
influence significant in mediating the company's image of customer loyalty at PT. Pos Indonesia (Persero)
Yogyakarta.
1 INTRODUCTION
PT. Pos Indonesia (Persero) Yogyakarta is not the
only company engaged in the delivery of letters,
documents, and freight forwarding. The enactment of
the Law prohibits monopolistic practices and unfair
competition; this is written in Law No.5 of 1999. Law
No.5 of 1999 causes increasingly intense
competition, which cannot be avoided by every
company. According to Kotler (2018), loyalty is a
commitment that is held deeply to buy or support a
product or service that is preferred in the future even
though the influence of the situation and marketing
efforts have the potential to cause customers to switch
(Fatmawati, 2004).
Satisfaction and loyalty are closely related and
inseparable. However, the relationship between the
two is asymmetrical, considering that most loyal
customers are satisfied customers, but not all
customer satisfaction means loyalty (Oliver, 1999).
Good service quality is also an essential key in
building customer loyalty. According to Lovelock
(Dewi, 2012) stated that the quality of service is a
level of good and bad conditions provided by the
service company to satisfy consumers by providing or
delivering services that exceed consumer
expectations.
Kanaidi's research (2010) states that "corporate
image, both simultaneously and partially, has a
positive effect on loyalty" (Andreassen et al., 1998).
Many obstacles have complained, now many
consumers are complaining about improper delivery
on time, after that the next complaint is the service
provided is not in accordance with the promise given
by PT. Pos Indonesia (Persero) Yogyakarta. Other
complaints from customers are challenging to reach
existing services such as services that are difficult to
access; then, some employees are less skilled and
responsive to consumer complaints. This shows the
need for improvement in the shipping service that PT.
Pos Indonesia (Persero) Yogyakarta is doing it to be
able to satisfy its customers. Certainly what
customers complain about is part of the quality
dimension that the company needs to pay attention to,
improper delivery and improper delivery is one of the
dimensions of service quality, namely reliability. If
the reliability of the company is not good, how can
customers feel satisfied after using these services? In
this study, the author tries to take the title: "The Effect
of Service Quality and Company Image on Customer
Laksana, D. and Yudhiantoro, D.
Effect of Service Quality and Company Image on Customer Loyalty through Customer Satisfaction at PT. Pos Indonesia (Persero) Yogyakarta.
DOI: 10.5220/0009960601870192
In Proceedings of the International Conference of Business, Economy, Entrepreneurship and Management (ICBEEM 2019), pages 187-192
ISBN: 978-989-758-471-8
Copyright
c
 2020 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved
187

Loyalty Through Customer Satisfaction at PT. Pos
Indonesia (Persero) Yogyakarta ".
2 LITERATURE REVIEW
2.1 Effect of Service Quality with
Customer Satisfaction
Service quality is important and is expected by
consumers. Syamsiah (2011) states that the
relationship between service quality and perceived
value is that quality service will increase value for
customers so that it can create satisfaction that can
ultimately increase customer loyalty. Other studies,
such as those conducted by Wu (2011) state that high
service quality correlates with high customer
satisfaction.
H1: Service quality has an influence on customer
satisfaction at PT. Pos Indonesia (Persero)
Yogyakarta.
2.2 Influence of Company Image with
Customer Satisfaction
Kotler (2018) defines that customer satisfaction is a
feeling of pleasure or disappointment from the results
comparing the performance of the product received
about his estimates. Almost all beauty clinics around
the world expect satisfaction from customers. It is not
uncommon that customer satisfaction is used as the
slogan of beauty clinics. Andreassen and Lindestad
(1998) state that images influence customer
satisfaction through the selection effect. Meanwhile,
Da Silva et al. (2003) states that the image is
correlated with customer satisfaction. Based on the
experience that has been owned by the customer, they
will provide an assessment and evaluation of all PT
service performance. Pos Indonesia (Persero)
Yogyakarta.
H2: The company's image has an influence on
customer satisfaction at PT. Pos Indonesia (Persero)
Yogyakarta.
2.3 Influence of Service Quality with
Customer Loyalty
Customer loyalty illustrates the commitment given by
customers to reuse services provided in the future.
High loyalty from the community will save some
costs for the company. Boulding et al. (1993) and Wu
(2011) revealed in their research that when a product
or service exceeds customer expectations, their
repurchase intentions will increase (Boulding et al.,
1993). Improved service quality in the company
contributes to customer retention and loyalty.
Therefore, the quality of service felt by patients will
affect customer loyalty. So, customer loyalty cannot
be ruled out by PT. Pos Indonesia (Persero)
Yogyakarta because this will affect the profitability
of the company. The intention of a customer's return
visit certainly is not necessarily done by the customer
without reason.
H3: Service quality has an influence on customer
loyalty at PT. Pos Indonesia (Persero) Yogyakarta.
2.4 Influence of Company Images with
Customer Loyalty
Javalgi et al. (1992) revealed that corporate image has
a strategic function. Imagery is seen as a filter used to
evaluate the overall quality (Gronroons, 2000: 210).
Thus, a favorable corporate image helps strengthen
the customer's intention to choose the company.
Community assessment is crucial because it will
affect the information circulating about the
performance and services provided by the company.
Marilees and Fry (2002) found that imagery has a
direct effect on loyalty. However, the company's
image can be seen clearly as a predictor of customer
loyalty. A good image will form the mindset of the
community that if people have problems using
shipping services, people do not need to think twice
about where they will get the services of PT. Pos
Indonesia (Persero) Yogyakarta, because based on the
experience they experienced themselves or based on
the information they obtained.
H4: The company's image has an influence on
customer loyalty at PT. Pos Indonesia (Persero)
Yogyakarta.
2.5 Effect of Customer Satisfaction
with Customer Loyalty
Syamsiah (2011) revealed that service managers need
to build roles, a perceived value in determining
customer satisfaction. Customers give positive
emotions after using the services of PT. Pos Indonesia
(Persero) Yogyakarta will show their satisfaction
with the company's services. Selnes research (1993)
states that customer satisfaction affects the behaviour
of buyers were satisfied customers tend to be loyal.
Consumer satisfaction will produce a positive impact
on the company. If consumers are satisfied with the
company's services, it will create an assessment of
PT. Pos Indonesia (Persero) Yogyakarta has been
able to provide maximum service to the community.
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In a review of previous studies, loyalty can be the
result of customer satisfaction (Lai et al., 2009). If
consumers are satisfied with the company's services,
it will increase their trust and confidence that the
company will still provide optimal services to
customers, so that customers will remain loyal to use
the services of PT. Pos Indonesia (Persero)
Yogyakarta when customers need more shipping
services.
H5: Customer satisfaction has an influence on
customer loyalty at PT. Pos Indonesia (Persero)
Yogyakarta.
2.6 Service Quality Has an Indirect
Effect on Customer Loyalty
through Customer Satisfaction
Lovelock (1991) in Tjiptono (2004) states that
marketing an excellent and effective service quality
will increase customer satisfaction and foster
customer loyalty. The results of research by Karsono
(2005) and Agnovera (2008) show that service quality
has an indirect, positive, and significant effect on
customer loyalty through customer satisfaction as a
mediating variable. Consistent with the results of
previous research conducted by Karsono (2005) and
Agnovera (2008), which proves that customer
satisfaction acts as a mediating variable in the effect
of service quality on customer loyalty.
H6: Service quality has an indirect effect on
customer loyalty through customer satisfaction at PT.
Pos Indonesia (Persero) Yogyakarta.
2.7 Company Image Has an Indirect
Influence on Customer Loyalty
through Customer Satisfaction
Nguyen (2001) proves in his research that the
corporate image positively influences customer
loyalty in three sectors (telecommunications, retail,
and education). In this case, the company's image is
correlated with customer satisfaction and has an
impact on customer loyalty. If consumers feel that the
company's image is useful both for customers' minds,
then it will provide its satisfaction for these
customers, so that customers will remain loyal to use
the services again. The same thing was also expressed
by Anddreassen and Lindestand (1998), who
emphasized that the company's image affects
customer satisfaction and customer loyalty.
H7: Company image has an indirect effect on
customer loyalty through customer satisfaction at PT.
Pos Indonesia (Persero) Yogyakarta.
3 RESEARCH DESIGN
The framework of thought proposed for this study is
based on the independent and dependent variables
described. To further facilitate understanding of the
framework of this research, it can be seen as follows:
Figure 1: Model
4 RESEARCH METHOD
This research study uses quantitative research, and
the data source used in this study is the source of
primary data obtained from questionnaires. The
sampling technique used is non-probability sampling.
The sample in this study are consumers who are
customers of PT. Pos Indonesia (Persero) Yogyakarta
with the criteria of respondents who received service
at least 2 (two) times within the last three months at
PT. Pos Indonesia (Persero) Yogyakarta.
5 RESULTS AND DISCUSSION
5.1 Partial Least Square (PLS)
Analysis
Hypothesis testing using Partial Least Square (PLS)
will show three hypotheses. This test is carried out
using a t-test on each path of influence between
variables. In PLS statistical testing, every
hypothesized relationship is done using simulation. In
this case, the bootstrap method is applied to the
sample. Bootstrapping testing is also intended to
minimize the problem of research data abnormalities.
Bootstrapping test results from PLS analysis can be
seen in Table 1:
Effect of Service Quality and Company Image on Customer Loyalty through Customer Satisfaction at PT. Pos Indonesia (Persero)
Yogyakarta
189

Table 1: Hypothesis Testing Results with Partial Least
Square
Variables
Original
Sample
(O)
T
Statistics
(| O /
STDEV |)
P
Value
s
Quality of service
-> Customer
satisfaction
0.559 2,361 0.013
Company Image -
> Customer
satisfaction
0.453 2,770 0.009
Service quality ->
Customer loyalty
0.476 2,947 0.006
Company Image -
> Customer
loyalty
0.480 2,069 0.021
Customer
Satisfaction ->
Customer loyalty
0.539 2,999 0.004
Source: Data processing with PLS, 2018
5.2 Hypothesis Testing Results 1
Results of first hypothesis testing show that the
quality of service has a positive and significant effect
on customer satisfaction. It is proven that the original
sample estimate is 0.559 (positive), with a P-value of
0.013 (sig <0.05). The results of this study are in line
with research conducted by Nurullah, Andi, and
Imam (2013); (2011 and Wu (2011). Customer
satisfaction serves as a medium between service
quality and behavioral intentions. Service quality is
not only related to how the services of employees
provide services to customers but also how customers
feel comfortable with the conditions and situations
that PT Pos Indonesia (Persero) Yogyakarta created
5.3 Hypothesis Testing Results 2
The results of the first hypothesis testing showed that
the company's image had a positive and significant
influence on customer satisfaction. It was proven that
the original sample estimate was 0.453 (positive) and
p-value 0.009 (sig <0.05) The results of this study are
in line with research conducted by Nurullah, Andi,
and Imam (2013); Kotler (2009); Kotler (2009);
Andreassen and Lindestad (1998); Da Silva et al.
(2003) which states that the image is correlated with
customer satisfaction, based on the experience the
customer has had, they will provide an assessment
and evaluation of all services nan PT. Pos Indonesia
(Persero) Yogyakarta.
5.4 Hypothesis Testing Results 3
The results of the first hypothesis test show that
service quality has a positive and significant influence
on customer loyalty. Proven with the original sample
estimate value is 0.476 (positive) and P-value 0.006
(sig <0.05). The results of this study are not in line
with research conducted by Nurullah, Andi, and
Imam (2013); Boulding et al. (1993) and Wu (2011).
The results showed that service quality does not
influence customer loyalty. However, in this study,
the H3 hypothesis in this study was accepted. The
intention of a customer's return visit certainly is not
necessarily done by the customer without reason.
Based on the quality above their expectations or
expectations, it will commit the community to visit or
use the same delivery service.
5.5 Hypothesis Testing Results 4
The results of the first hypothesis testing show that
the company's image has a positive and significant
influence on customer loyalty. Proven with the
original sample estimate value is 0.480 (positive) and
P-value 0.021 (sig <0.05). The results of this study are
not in line with research conducted by Nurullahet al.,
(2013); Javalgi et al. (1992); (Gronroons, 2000) and
Marilees and Fry (2002). The results showed that the
company's image did not influence customer loyalty.
Thus, the H4 hypothesis in this study was accepted.
5.6 Hypothesis Testing Results 5
According to Ghozali (2005) that a variable is called
an intervening variable if the variable affects the
relationship between the predictor (independent) and
the criterion variable (dependent). Testing is done by
a procedure developed by Sobel (1982).
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190

Table 2: Results of Path Coefficients Method PLS
Variable
Original
Sample (O)
Sample Mean
(M)
Standard
Deviation
(STDEV)
Standard
Error
(STEER)
Quality of service
-> Customer
satisfaction
0559 0533 0089 0089
Corporate Image -
> Customer
satisfaction
0453 0424 0063 0063
Quality of care ->
Customer loyalty
0.476 0.443 0.053 0.053
Company Image -
> Customer
loyalty
0.480 0.475 0.107 0.107
Customer
Satisfaction ->
Customer loyalty
0.539 0.587 0.045 0.045
Source: Data processing by PLS, 2018.
5.7 Hypothesis Testing Results 6
Testing of the influence of intervening/mediating
variables with The dependent variable is done by
calculating the Sobel formula, the results of the two
tests are summarised as follows. The value of the
direct effect of service quality variables on customer
loyalty is 0.476 (shown in Table 4.17).
Thus the t-test can be obtained as follows
t =


=
.
.
= 5.5741
t value of 5.5741, the value is greater than 1.96,
which means that the mediation parameters are
significant. Then the customer satisfaction model
mediates the effect of service quality on customer
loyalty can be accepted. The implications of this
study for PT Pos Indonesia to be able to increase
customer loyalty must pay attention to service quality
and customer satisfaction because the higher
customer satisfaction can increase customer loyalty in
the company
5.8 Hypothesis Testing Results 7
Testing of the influence of intervening/mediating
variables with the dependent variable is done by
calculation Sobel's formula results from the two tests
are summarized as follows. The value of the direct
influence of the company's image variable on
customer loyalty is 0.480. Thus the t-test can be
obtained as follows
Ztest =










information:
a = b1
b = b2
Sea = standard error b1
SEb = standart error b2
Z test = 3.6970
The Value of t Or Z test is 3.6970 that value is
more significant than 1.96, which means that the
mediation parameters are significant. Then the
customer satisfaction model mediates the influence of
the company's image on customer loyalty can be
accepted. The implication of this research is PT. POS
Indonesia must pay attention to efforts to strengthen
the company's image, because the better the
company's image, in addition to increasing customer
satisfaction, also increases customer loyalty to the
company.
6 CONCLUSIONS
Based on the results of the study as described in the
previous chapter, it can be drawn some conclusions
as follows:
1) Service Quality has a positive and significant
impact on customer satisfaction at PT. Pos
Indonesia (Persero) Yogyakarta.
2) The company's image has a positive and
significant impact on customer satisfaction at
PT. Pos Indonesia (Persero) Yogyakarta.
3) Service Quality has a positive and significant
impact on customer loyalty at PT. Pos
Indonesia (Persero) Yogyakarta.
Effect of Service Quality and Company Image on Customer Loyalty through Customer Satisfaction at PT. Pos Indonesia (Persero)
Yogyakarta
191

4) The company's image has a positive and
significant impact on customer loyalty at PT.
Pos Indonesia (Persero) Yogyakarta.
5) Customer Satisfaction has a positive and
significant impact on Pelanggang Loyalty.
6) Customer satisfaction has a significant
influence in mediating service quality on
customer loyalty at PT. Pos Indonesia (Persero)
Yogyakarta.
7) Customer satisfaction has a significant
influence in mediating the company's image of
customer loyalty at PT. Pos Indonesia (Persero)
Yogyakarta.
7 SUGGESTIONS
Suggestions from this study based on the results of
testing the research hypothesis are as follows:
1) According to the results of the study, it is
recommended that PT. Pos Indonesia (Persero)
Yogyakarta to pay attention to variables on tangibles,
reliability, responsiveness, assurance and empathy
dimensions so that customer satisfaction can be
maintained and can provide services to customers in
a better way, so that each customer can feel satisfied
with the service they receive, and can also increase
the desire to continue to use the services of PT. Pos
Indonesia so that customers become loyal customers
of PT. Pos Indonesia (Persero) Yogyakarta. Excellent
service quality can provide satisfaction to customers
so that it will cause loyal behavior to regular
customers to continue to use shipping services.
Efforts to increase customer loyalty can be made by
maintaining customer satisfaction by striving to meet
customer needs, providing services that are felt to be
of direct benefit.
2) For further research, it is recommended to use
different analysis variables to enrich the results of the
analysis of what factors influence customer loyalty.
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