To read this content please select one of the options below:

Effect of commitment and customers’ satisfaction on the relationship between service quality and customer retention in rural banks in Makassar, Indonesia

Dian Anggraece Sigit Parawansa (Department of Management, Faculty of Economic and Business, Universitas Hasanuddin, Makassar, Indonesia)

Journal of Management Development

ISSN: 0262-1711

Article publication date: 12 February 2018

2662

Abstract

Purpose

The purpose of this paper is to investigate the effect of commitment and customer’s satisfaction on the relationship between service quality and customer retention.

Design/methodology/approach

The research was conducted on the entire customer rural banks (BPR) in Makassar, South Sulawesi Province; the sample size comprised 300 respondents. Analysis equipment used in this study is a quantitative approach that is inferential statistical analysis with structural equation modeling based variance is known as a method WarpPLS.

Findings

The results of the analysis show that there is significant influence between the variables of service quality, commitment, customer satisfaction, and customer retention. It was also found that the results of the variables commitment and customer satisfaction mediate the effect of service quality on customer’s retention.

Originality/value

The study showed the mediation effect (using the Sobel test) of service quality on customer retention using commitment and customer satisfaction as intervening variables in rural banks; and the study was conducted in the customer rural banks (BPR) in Makassar, South Sulawesi Province, where no such study for this relationship has been conducted previously.

Keywords

Citation

Sigit Parawansa, D.A. (2018), "Effect of commitment and customers’ satisfaction on the relationship between service quality and customer retention in rural banks in Makassar, Indonesia", Journal of Management Development, Vol. 37 No. 1, pp. 53-64. https://doi.org/10.1108/JMD-12-2016-0303

Publisher

:

Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

Related articles