Customer Loyalty in State-Owned Retail Banking:Evidence from Lamongan, Indonesia

This study investigates the determinants of customer loyalty in retail banking, focusing on National State Bank in Lamongan City, Indonesia. Employing a causal research design, data were collected from 156 customers via structured questionnaires and analyzed using Structural Equation Modeling (SEM) with AMOS 22.0. The findings reveal that service quality significantly enhances corporate image and perceived value, while perceived value and customer satisfaction directly foster customer loyalty. Contrary to expectations, service quality, corporate image, and trust exhibited no significant direct effects on loyalty, suggesting the mediating role of value and satisfaction. These insights contribute to the literature on relationship marketing and provide actionable strategies for banks aiming to strengthen customer retention.