THE IMPACT OF SERVICE QUALITY, CUSTOMER SATISFACTION, WORD-OF-MOUTH, ON BRAND LOYALTY (THE CASE OF PT. BANK RAKYAT INDONESIA)

Abstract

The objective of the study is to analyze the relationship of service quality on customer satisfaction, service quality on word-of-mouth, customer satisfaction on word-of-mouth, service quality on brand loyalty, customer satisfaction on brand loyalty, and word-of-mouth on brand loyalty in using banking services at BRI. Data for this research was analyzed quantitatively. Quantitative data were collected through an online questionnaire. After that, it answered by 100 respondents who have ever used Bank Rakyat Indonesia's banking services. In the quantitative approach, a seven-point Likert scale is used as the measurement instrument and analyzed by Smart-PLS’s software. This is the first study whereby the researcher deals with service quality, customer satisfaction, word-of-mouth, and brand loyalty toward Bank Rakyat Indonesia's banking services. Results confirm a positive relationship between service quality and customer satisfaction, a positive relationship between service quality and word-of-mouth, a positive relationship between customer satisfaction and word-of-mouth, a positive relationship between service quality and brand loyalty, a positive relationship between customer satisfaction and brand loyalty and a positive relationship between word-of-mouth and brand loyalty. Theoretically, this research offers insight into how to strategically manage customer relationships in a way that will bring organic growth and competitive advantage in the banking industry. Practically, the research focused on marketing campaigns, personalized customer experiencesin the banking industry.