THE INFLUENCE OF CREDIT UNION BENEFITS AND SERVICE QUALITY TOWARDS DECISION TO TAKE CREDITS (A CASE STUDY OF KSP BUDI LUHUR IN PARIGI MOUTONG DISTRICT)

Abstract

The main purpose of credit union is to support the development of the community by distributing funds. In distributing funds, the credit union needs to attract both existing members and potential members to take credits from the credit union. Therefore, identifying the factors that affect the members’ decision to take credits from a particular credit union has become an essential asset for many credit unions. The researcher would like to know whether credit union benefits and service quality influence the members’ decision to take credits. In this study, data were collected through questionnaires distributed to 85 Members of KSP Budi Luhur using simple random sampling technique to determine the response for of each variable. The primary data were then analyzed using SPSS 16.0. Multiple regression analysis was applied in this research to test the hypotheses. The result concludes that credit union benefits and service quality have positive and significant relationship with the respondents’ decision to take credits.