The Effect Of Customer Capital On Loyalty With Customer Satisfaction And Commitment As An Intervening Variable In The Credit Section Of PT Bank Sumut Branch Of Medan Coordinator

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The Effect of Customer Capital on Loyalty with Customer Satisfaction and Commitment as an Intervening Variable in the Credit Section of PT Bank Sumut Branch of Medan Coordinator

Introduction

In today's competitive banking industry, maintaining good relationships between banks and customers is crucial for long-term success. One of the key aspects of this relationship is consumer loyalty, which is a vital component of a bank's overall strategy. Consumer loyalty is a complex phenomenon that involves various factors, including customer satisfaction, commitment, and capital. In this study, we aim to explore the influence of customer capital on consumer loyalty, with customer satisfaction and commitment as intervening variables. By using a quantitative approach and involving 100 customers in the Credit Section of PT Bank Sumut, the Medan Coordinator Branch, this research seeks to provide a deep insight into the dynamics of customer loyalty.

Literature Review

Consumer loyalty is a well-studied concept in marketing and banking literature. It refers to the willingness of customers to continue doing business with a bank, despite the availability of alternative options. Several studies have identified customer satisfaction and commitment as key drivers of consumer loyalty (Oliver, 1980; Reichheld, 1996). However, the role of customer capital in influencing consumer loyalty has received relatively little attention. Customer capital refers to the value that customers place on their relationships with a bank, including the perceived quality of service, trust, and loyalty.

Methodology

This study employed a quantitative approach, using a survey questionnaire to collect data from 100 customers in the Credit Section of PT Bank Sumut, the Medan Coordinator Branch. The questionnaire consisted of three sections: customer capital, customer satisfaction, and consumer loyalty. The data were analyzed using the Partial Least Square (PLS) method, which includes testing external models and internal models.

Results

The results of the analysis showed that there was a positive and significant effect of customer capital variables on customer loyalty, with a significance level of 5%. This suggests that customers who perceive high-quality service, trust, and loyalty from their bank are more likely to be loyal. Furthermore, the results showed that customer satisfaction has a significant effect on consumer loyalty, with a significance level of 5%. This suggests that customers who are satisfied with their bank's services are more likely to be loyal.

However, the results also showed that consumer commitment does not have a significant effect on consumer loyalty, and customer capital does not have a significant effect through consumer commitment. This suggests that while customer commitment is an important aspect of customer loyalty, it is not a direct driver of loyalty.

Discussion

The results of this study have several implications for marketing strategies and managing customer relations by PT Bank Sumut. Firstly, the study suggests that customer capital is a critical factor in influencing consumer loyalty. This implies that banks should focus on building strong relationships with their customers, providing high-quality service, and fostering trust and loyalty.

Secondly, the study suggests that customer satisfaction is a key driver of consumer loyalty. This implies that banks should prioritize customer satisfaction, providing services that meet or exceed customer expectations.

Finally, the study suggests that consumer commitment is not a direct driver of consumer loyalty. This implies that banks should focus on building strong relationships with their customers, rather than relying solely on customer commitment.

Conclusion

In conclusion, this study provides a deep insight into the dynamics of customer loyalty, highlighting the importance of customer capital, customer satisfaction, and commitment in influencing consumer loyalty. The results of this study have several implications for marketing strategies and managing customer relations by PT Bank Sumut, including the importance of building strong relationships with customers, prioritizing customer satisfaction, and focusing on customer capital.

Recommendations

Based on the results of this study, we recommend the following strategies for PT Bank Sumut:

  1. Continuous follow-up: It is essential for banks to continue to interact with customers, building closer relationships and increasing loyalty.
  2. Being a financial consultant: Banks can improve services by providing financial consultations to customers, making them feel valued and more loyal.
  3. Focusing on customer capital: Banks should prioritize building strong relationships with customers, providing high-quality service, and fostering trust and loyalty.
  4. Prioritizing customer satisfaction: Banks should prioritize customer satisfaction, providing services that meet or exceed customer expectations.

Limitations

This study has several limitations. Firstly, the sample size was relatively small, consisting of 100 customers in the Credit Section of PT Bank Sumut, the Medan Coordinator Branch. Secondly, the study used a quantitative approach, which may not capture the complexity of customer loyalty.

Future Research Directions

Future research should aim to replicate this study using a larger sample size and a more diverse population. Additionally, future research should explore the role of other factors, such as customer engagement and customer retention, in influencing consumer loyalty.

References

Oliver, R. L. (1980). A cognitive model of the antecedents and consequences of satisfaction decisions. Journal of Marketing Research, 17(4), 460-469.

Reichheld, F. F. (1996). The loyalty effect: The hidden force behind growth, profits, and lasting success. Harvard Business School Press.

Appendix

The appendix includes the survey questionnaire used in this study, as well as the data analysis results.
Frequently Asked Questions (FAQs) about the Effect of Customer Capital on Loyalty

Q: What is customer capital, and how does it relate to consumer loyalty?

A: Customer capital refers to the value that customers place on their relationships with a bank, including the perceived quality of service, trust, and loyalty. It is a critical factor in influencing consumer loyalty, as customers who perceive high-quality service, trust, and loyalty from their bank are more likely to be loyal.

Q: What is the significance of customer satisfaction in influencing consumer loyalty?

A: Customer satisfaction is a key driver of consumer loyalty. Customers who are satisfied with their bank's services are more likely to be loyal. Banks should prioritize customer satisfaction, providing services that meet or exceed customer expectations.

Q: Does consumer commitment have a significant effect on consumer loyalty?

A: No, the results of this study suggest that consumer commitment does not have a significant effect on consumer loyalty. While customer commitment is an important aspect of customer loyalty, it is not a direct driver of loyalty.

Q: What are the implications of this study for marketing strategies and managing customer relations by PT Bank Sumut?

A: The study suggests that banks should focus on building strong relationships with their customers, providing high-quality service, and fostering trust and loyalty. Banks should also prioritize customer satisfaction, providing services that meet or exceed customer expectations.

Q: What are the limitations of this study?

A: This study has several limitations, including a relatively small sample size and a quantitative approach that may not capture the complexity of customer loyalty.

Q: What are the future research directions for this study?

A: Future research should aim to replicate this study using a larger sample size and a more diverse population. Additionally, future research should explore the role of other factors, such as customer engagement and customer retention, in influencing consumer loyalty.

Q: How can banks use the findings of this study to improve their customer relationships and loyalty?

A: Banks can use the findings of this study to improve their customer relationships and loyalty by:

  • Focusing on building strong relationships with customers
  • Providing high-quality service and fostering trust and loyalty
  • Prioritizing customer satisfaction and providing services that meet or exceed customer expectations
  • Continuously interacting with customers to build closer relationships and increase loyalty

Q: What are the benefits of improving customer capital and customer satisfaction for banks?

A: Improving customer capital and customer satisfaction can lead to several benefits for banks, including:

  • Increased customer loyalty and retention
  • Improved customer engagement and advocacy
  • Increased revenue and profitability
  • Enhanced reputation and brand image

Q: How can banks measure customer capital and customer satisfaction?

A: Banks can measure customer capital and customer satisfaction using various metrics, including:

  • Customer satisfaction surveys and feedback
  • Net Promoter Score (NPS)
  • Customer retention rates
  • Customer acquisition costs
  • Customer lifetime value (CLV)

Q: What are the challenges of improving customer capital and customer satisfaction for banks?

A: Improving customer capital and customer satisfaction can be challenging for banks, including:

  • Changing customer behavior and expectations
  • Meeting increasing customer demands and expectations
  • Balancing customer needs with business goals and objectives
  • Measuring and tracking customer capital and customer satisfaction effectively

Q: How can banks overcome the challenges of improving customer capital and customer satisfaction?

A: Banks can overcome the challenges of improving customer capital and customer satisfaction by:

  • Conducting regular customer surveys and feedback
  • Analyzing customer data and behavior
  • Developing targeted marketing and customer engagement strategies
  • Providing ongoing training and development for customer-facing staff
  • Continuously monitoring and evaluating customer capital and customer satisfaction metrics.