Banking service recovery and consumer loyalty: The mediating role of satisfaction

This study aims to prove the effect of justice-based service recovery on satisfaction and its impact on loyalty. The related justices intended are distributive, procedural, and interactive. Also, proving satisfaction as mediated by the Sobel test becomes another purpose. Then, to achieve these purposes, this study employs banking customers in a few areas in West Java (Bandung and Cirebon Cities, as well as the Purwakarta Regency) as the population and samples them by snowball sampling. Fortunately, 230 collected responses exist; hence, the structural equation based on covariance is applicable to examine hypotheses. As a result, this study finds a positive tendency of distributive, procedural, and interactive justice on satisfaction, and distributive justice has a leading influence. A similar sign occurs in the association between satisfaction and loyalty. According to the mediating test, customer satisfaction can mediate the relationship between the three justices and loyalty. Based on these facts, this study recommends that banks compensate the users for the disappointing situation and handle their complaints by providing procedures and responsive and skilled staff to help. Importantly, banks should give the gift as a sign of appreciation for complaints. These actions can encourage banking users to share positive information with their friends, family, and workmates based on their experience.

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Publication Details

Journal
International Journal of Applied Economics Finance and Accounting
Published
2024-10-18
DOI
https://doi.org/10.33094/ijaefa.v20i1.1921
Primary Topic
Customer Service Quality and Loyalty
Type
article
Field-Weighted Citation Impact
0.00
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article

Banking service recovery and consumer loyalty: The mediating role of satisfaction

Bram Hadianto, Muhammad Meki Munawar
International Journal of Applied Economics Finance and Accounting
Customer Service Quality and Loyalty
article

Banking service recovery and consumer loyalty: The mediating role of satisfaction

Bram Hadianto, Muhammad Meki Munawar
article en

Abstract

This study aims to prove the effect of justice-based service recovery on satisfaction and its impact on loyalty. The related justices intended are distributive, procedural, and interactive. Also, proving satisfaction as mediated by the Sobel test becomes another purpose. Then, to achieve these purposes, this study employs banking customers in a few areas in West Java (Bandung and Cirebon Cities, as well as the Purwakarta Regency) as the population and samples them by snowball sampling. Fortunately, 230 collected responses exist; hence, the structural equation based on covariance is applicable to examine hypotheses. As a result, this study finds a positive tendency of distributive, procedural, and interactive justice on satisfaction, and distributive justice has a leading influence. A similar sign occurs in the association between satisfaction and loyalty. According to the mediating test, customer satisfaction can mediate the relationship between the three justices and loyalty. Based on these facts, this study recommends that banks compensate the users for the disappointing situation and handle their complaints by providing procedures and responsive and skilled staff to help. Importantly, banks should give the gift as a sign of appreciation for complaints. These actions can encourage banking users to share positive information with their friends, family, and workmates based on their experience.

International Journal of Applied Economics Finance and AccountingVol. 20(1)
Maranatha Christian University (ID), Universitas Patria Artha (ID)
Openalex Percentile: Top 74%
Customer Service Quality and Loyalty
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