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

Abstract

The research investigate the effect of commitment and customer’s satisfaction in relationship between service quality to the customer retention. Research was conducted on the entire customer rural banks (BPR) in Makassar, South Sulawesi Province, the sample size used was 300 respondents. Analysis equipment used in this study is a quantitative approach that is inferential statistical analysis with Structural Equation Modeling (SEM) based variance is known as a method WarpPLS. The results of analysis show that there is significant influence between the variables of the Service quality, Commitment, Customer Satisfaction and Customer retention. It was also found that the results of the variable commitment and customer satisfaction mediates the effect of service quality to the customer’s retention. (1) mediation effect (using sobel test) Mediation Effect of service quality on customer retention using commitment and customer satisfaction as intervening variables in rural banks (2) location of study (no previous study for this relationship): customer rural banks (BPR) in Makassar, South Sulawesi Province