ANALYSIS EFFECT OF SERVICE QUALITY ON CUSTOMER LOYALTY AND SATISFACTION IN SERVICES TRAINING PT XYZ

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1 ANALYSIS EFFECT OF SERVICE QUALITY ON CUSTOMER LOYALTY AND SATISFACTION IN SERVICES TRAINING PT XYZ Bayu Ajisaputro 1) and Suparno Master s Program in Management of Technology, Institut Teknologi Sepuluh Nopember Jl. Cokroaminoto 12A, Surabaya, 60264, Indonesia 1) bayu.sastroprawiro@yahoo.com ABSTRACTS Currently, the development of business, particularly in the training services company has developed rapidly, and this caused the occurrence of competition among companies that are quite strict. At XYZ decrease in the number of customers, these problems can be caused by poor customer perception of the quality of service they receive or get with the actual performance of the services they expect or want. If customer satisfaction with excellent service quality provided better, it will create customer loyalty to the company.thus, in this study needs to be conducted to determine the relationship of service quality on customer satisfaction and loyalty XYZ analysis tools Structural Equation Model (SEM). The use of SEM to see the extent of satisfaction and service quality affects loyali bag trainee at XYZ. The purpose of this research is to analyze how much influence the quality of service to customer satisfaction and customer loyalty as well as knowing the quality of the services antribut positive effect on the variable to improve the quality of service at PT XYZ. Key words: SEM, service quality, customer satisfaction, customer loyalty INTRODUCTION Currently, the development of business, particularly in the training services company has developed rapidly, currently in Indonesia K3 service company reaches more than 200 (Two hundred) companies, it caused the occurrence of competition among companies that are quite strict. With the level of competition that is growing increasingly stringent, PT XYZ as a training services company, was charged with maintaining a market already held by current and expected to improve. The location of the training services company PT. XYZ is located in a strategic industrial development is quite high, namely on the island of Batam as being segmentation, namely professionals, or companies that want to improve the competence of employees. However, with a strategic place that was still less support for the development of corporate training XYZ. It is can be seen in Figure 1 where the image is visible to a decrease in the number of consumers PT. XYZ. A-1-1

2 Figure 1 graphs the number of participants at XYZ With the decrease in the number of subscribers can be caused by poor customer perception of the quality of service they receive or obtain the actual performance of the services they expect or want. With many of its peers, customers can migrate services provider with a better perception consideration, so great chances are customers of PT. XYZ does not reuse the services of PT. XYZ, so competition between companies is getting tougher. So this research is needed to determine the relationship of service quality on customer satisfaction and loyalty XYZ. Quality of Service (Service Quality) Quality of service (service quality) is often conceptualized as a comparison between expectations and actual performance of services (Parasuraman et al., 1988). Parasuraman et al., (1988) identified five dimensions of service quality associated with customer expectations, namely: reliability (reliability), assurance (assurance), tangibles (physical appearance), empathy (empathy), and responsiveness (responsiveness). Customers using the fifth dimension is to establish the quality of the assessment of the quality of the services to compare the expectations and perceptions of the service. Customer Satisfaction (Customer Satisfaction) Kotler (1996) in Tjiptono (2006) found that customer satisfaction is the level of one's feelings after comparing the performance or results which he felt compared to expectations. Satisfaction level of consumer sentiment is obtained after consumers do / enjoy something. Thus it can be interpreted that customer satisfaction is the difference between the expected consumer (expected value) with the company given to situations in an effort to meet consumer expectations. Customer satisfaction include two main points, namely: overall satisfaction (overall satisfaction) and evaluation of the suitability of expectations (comformity with expectation) (Lee et al., 2001) Customer loyalty (Customer Loyalty) According Tjiptono (2006), "customer loyalty is customer commitment to a brand, store or supplier based on the nature of the very positive in the long-term purchase". Meanwhile, according to Zeithaml et. al. (1996) final destination success of the company establish relationships with customers is to form a strong loyalty. Indicators of a strong loyalty is: 1. Say positive things, is to say a positive thing about a product that has been consumed. 2. Recommend friend, is recommending the product that has been consumed to a friend. 3. Continue purchasing, are purchases made continuously to the product that has been consumed. A-1-2

3 Hypothesis development The relationship between service quality and satisfaction is extensively documented in the literature, especially marketing, the relationship is theoretically and empirically is positive as it has been investigated by Wijayanti (2008). The main benefit of satisfaction that is the positive relationship with customer loyalty (Caruana, 2002). Wijayanti (2008) states that the satisfaction felt by the customers can increase the intensity of the customer's purchase. Research Zeithaml et al (1996) have shown that the quality of service as an influential loyalty. Similar results have been shown in research Japarianto et al (2007). H1 H2 H3 : The quality of service significantly influence customer satisfaction training services in PT.XYZ : Customer satisfaction significantly influence customer loyalty training services in PT.XYZ : Quality of service a significant effect on customer loyalty training service in PT. XYZ RESEARCH METHODOLOGY The data used in this study primary form of data questionnaire answers questions from the trainees XYZ. According to Hair et al. (1998), the minimum number of samples required in SEM analysis methods in order to be considered representative are as many as 100 samples or perbandian 5 observations, in this study the total sample of 150. Once the data is collected, then continued with peroses contains data processing data processing raw data is converted into so ready to dientepretasikan, which presents the validity and reliability testing as well as the processing of Structural Equation Model (SEM) with AMOS perogram to obtain the measurement model and the model strutural. Identification of Research Variables In this study, there are 3 latent variables, namely X (Service quality), Y1 (Customer satisfaction) and Y2 (Custom er loyalty). Each variable is composed of several attributes used to measure the construct. Variable laten Service quality consists of 5 dimension represented by 20 attribute questions, variables Customer satisfaction is composed of 4 attribute question, and variables customer loyalty is composed of 3 attribute question. RESULTS AND DISCUSSION Confirmatory Factor Analysis (CFA) Test Confirmatory Factor Analysis (CFA) was conducted to see the significance of the relationship attributes with latent variables. The estimation results loading factor second order confirmatory for the variable quality of the service showed that the five dimensions namely reliabelity, responsiveness, assurance, empathy and tangible has antribut valid or significant as well as the model fit second order were quite good because the level of validity of the dimensions and all attributes high. The estimation results of first order confirmatory factor loading to variable customer satisfaction shows that the whole or a significant attribute is valid. These results supported the model fit fisrt good order. This means that the attributes of customer satisfaction can measure customer satisfaction. A-1-3

4 The estimation results of first order confirmatory factor loading to variable customer loyalty shows that all the attributes valid or significant. Construct Reliability Test In the SEM analysis, reliability using the construct reliability. Construct reliability test in the SEM to prove that constructs or indicators of the build (construct) the latent variables. Calculations using formula. Where Σεj = Σ (1 - (std loading) ²) Construct reliability = The significant value indicator loading factor (Std Loading) can be known from the Standardized Regression Weight Estimate produced under AMOS. value construct reliability for each variable> 0.6, so it can be said that the indicators can build a model variables reliably. Compliance Test Model Figure 2. Results modifications Overall Model Table 1.Test Compatibility Mode Criteria Value Results Information Cut-off Chi Square Expected to be small Good Significance Probability 0, Good RMSEA 0, Good GFI 0, Good Enough AGFI 0, Good Enough CMIN/DF 2, Good TLI 0, Good CFI 0, Good Hypothesis Test A-1-4

5 This test was conducted to determine the level of inter significant latent variables based on the given hypothesis and testing can be done with the program AMOS. Data were analyzed and quantified is the result of regression weights between latent variables, degrees of freedom (df) and the value of CR.Ghozali states that a variable can be said significant effect if the value of the resulting P value less than the significance level given (0.05) as illustrated in Table 2. Table 2. Results Loading Factor Modification Model Full Structural Equation Modeling Ustd Estimate Std Estimate C.R. P Y1 x y2 y y2 x CONCLUSION Based on the results of SEM analysis, the conclusions that can be drawn are as follows: 1. Quality of service provide a significant positive impact on customer satisfaction, seen from probabiltas value generated less than 5% and the value of sebsar Estimate Std. Thus, H1 "Quality service significantly influence customer satisfaction training services in PT.XYZ" acceptable. 2. Customer satisfaction provide a significant positive impact on customer loyalty, seen from probabiltas value generated less than 5% and the value of sebsar Estimate Std. With demkian, H2 "Customer satisfaction significantly influence customer loyalty training services in PT.XYZ" acceptable. 3. Quality of service provides no significant impact on customer loyalty, seen from the value probabiltas generated more than 5% and the value of sebsar Estimate Std. With demkian, H3 "Quality service significant effect on customer loyalty training service in PT. XYZ "unacceptable. REFFERENCES Abdullah, S., & Sutanto, T. E. (2015). Statistika Tanpa Stres. TransMedia. Arikunto, Suharsimi Metodologi Penelitian. Penerbit PT. Rineka Cipta. Jakarta. Caruana, A Service Loyalty The Effects of Service Quality and The Mediating Role of Customer Satisfaction. European Journal of Marketing, 36 Oey, Eka Cipta Wijaya Pengaruh Kualitas layanan Terhadap Kepuasan Pelanggan Dalam Membentuk Loyalitas Pelanggan Pada Pengguna Jasa Garuda Indonesia Di Surabaya. Jurnal Ilmiah Universitas Surabaya Ghozali, Imam dan Fuad, Structural Equation Modelling: Teori, Konsep dan aplikasi dengan Program LISREL, 8.80, Penerbit BP UNDIP; Semarang Japarianto, Edwin., Laksmono, Poppy., Khomariyah, Nur Ainy Analisa Kualitas Layanan Sebagai Atika Paramitha Wendha, Pengaruh Kualitas Layanan Pengukur Loyalitas Pelanggan Hotel Majapahit Surabaya Dengan Pemasaran Relasional Sebagai Variabel Intervening. Jurnal Manajemen Perhotelan, Vol. 3, No. 1, Hal A-1-5

6 Kotler, P. dan Keller, K.L., 2008, manajemen pemasaran, Ed12, Penerbit PT Indeks: Jakarta Normasari, S., Kumadji, S., Kusumawati, A Pengaruh Kualitas Pelayanan Terhadap Kepuasan Pelanggan, Citra Perusahaan dan Loyalitas Pelanggan Hotel pelangi Malang. Jurnal Administrasi Bisnis Parasuraman, A, Valarie A. Zeithaml, and Leonard L. Berry, "SERVQUAL: A Multiple-Item Scale for Measuring Consumer Perceptions of Service Quality" dalam Journal of Retailing Volume 64 Number 1 Spring 1988, pp Soestya, Suci. 2014, Analisis Pengaruh Kualitas Layanan Terhadap Kepuasan dan Loyalitas Pelanggan Jasa Angkutan Penumpang Kereta Api dengan pendekatan StructuralEquation Modeling dan Imprtance Performance Analysis Tjiptono, F dan Chandra, G, 2006, Service quality & Satisfaction, ANDI; Yogyakarta Indrawati, A Pengaruh Kualitas Layanan Lembaga Pendidikan terhadap Kepuasn Konsumen. Jurnal Ekonomi Bisnis, Universitas Negeri Malang, Malang. Wijayanti, Ari Strategi Meningkatkan Loyalitas Melalui Kepuasan Pelanggan (Studi Kasus: Produk Kartu Seluler Prabayar Mentari-Indosat Wilayah Semarang). Tesis. Program Studi Magister Manajemen Universitas Diponegoro, Semarang. 1. Paper Bayu Ajisaputro is accepted but please translate to English some mark (with red letter) and give more explanation on Research Methodology. Is there any second writer? A-1-6