THE INFLUENCE OF SERVICE QUALITY AND FACILITIES ON CUSTOMER SATISFACTION IN FORMING CUSTOMERS LOYALTY IN SBU FACTORY MAINTENANCE SERVICES (JPP) OF PT. PUPUK ISKANDAR MUDA

Abstract

This study examined and analyzed the effect of service quality and facilities on customer satisfaction in forming customer loyalty at SBU Factory Maintenance Services (JPP) of PT Pupuk Iskandar Muda. This study used primary data obtained by distributing questionnaires to all customers, as many as 85 respondents, with 23 questions asked using five Likert scales (strongly agree-strongly disagree). The data analysis tool used was SmartPLS. The results showed that service quality significantly and positively affected customer satisfaction and customer loyalty, and facilities significantly and positively influenced customer satisfaction and customer loyalty. Meanwhile, customer satisfaction negatively but significantly affected customer loyalty. The results of hypothesis testing show that service quality and facilities directly affected customer loyalty. Meanwhile, the test results indirectly revealed that customer satisfaction partially mediated service quality on customer loyalty.