SERVICE EXCELLENCE AND SERVICE RECOVERY: THE IMPACTS ON CUSTOMER SATISFACTION AND LOYALTY

Bethani Suryawardani, Fanni Husnul Hanifa, Widya Sastika, Astri Wulandari

Abstract

Based on data from the Ministry of Trade of the Republic of Indonesia, service has the highest contribution, which reached 52% from 2010 – 2016. Transportation service is one of service industry having strategic roles in human life. The growth of transportation sector shows the direct economy growth thus this sector has a strategic role for national economy. The method implemented in this study is quantitative method with Structural Equation Modelling (SEM). The technique of data collection for primer data was interview and questionnaire. For sampling technique, this study implemented purposive sampling with 400 respondents. The result showed that Service Excellence (X1) and Service Recovery (X2) influenced simultaneously to Satisfaction (y), which gained 0.506 = 50.6%. Meanwhile, Service Excellence (X1), Service Recovery (X2) and Customer Satisfaction (Y) influenced simultaneously to Customer Loyalty (z), which gained 0.831 = 83.1%. The rest of 16.90% was influenced by other undefined factors.
Keywords: Service Excellence; Service Recovery; Customer Satisfaction; Customer Loyalty

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