The impact of word of mouth and service quality toward customer loyalty: The mediating role of customer trust

Mohamad Rizan, Saparuddin Mukhtar, Linda Dewi Wulan, Rifelly Dewi Astuti

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Banking competition in Indonesia is increasing rapidly. Banks are required to create customer trust from establish communication and service excellent that will ultimately create loyalty customers as a key to the business success. Bank OCBC NISP as a commercial bank not also can escape from the threats of competitions. This research was conducted at the branch Gunung Sahari in Central Jakarta, samples taken as many as 210 customers with purposive sampling methods. Data collected by questionnaires by using a 5-point likert scale to measure 30 indicators. The analysis technique used is Structural Equation Modelling (SEM) with the AMOS 22.0 program to calculate the effect of each variable. Result revealed that word of mouth and service quality both have positive and significant effect toward customer loyalty, customer trust has positive and significant effect toward customer loyalty, word of mouth and service quality both have no direct effect toward customer loyalty, and customer trust serve as mediating variable beetwen service quality and customer loyalty, but do not serve as mediating variable beetwen word of mouth and customer loyalty.

Original languageEnglish
Title of host publicationProceedings of the 33rd International Business Information Management Association Conference, IBIMA 2019
Subtitle of host publicationEducation Excellence and Innovation Management through Vision 2020
EditorsKhalid S. Soliman
PublisherInternational Business Information Management Association, IBIMA
Pages2881-2891
Number of pages11
ISBN (Electronic)9780999855126
Publication statusPublished - 1 Jan 2019
Event33rd International Business Information Management Association Conference: Education Excellence and Innovation Management through Vision 2020, IBIMA 2019 - Granada, Spain
Duration: 10 Apr 201911 Apr 2019

Publication series

NameProceedings of the 33rd International Business Information Management Association Conference, IBIMA 2019: Education Excellence and Innovation Management through Vision 2020

Conference

Conference33rd International Business Information Management Association Conference: Education Excellence and Innovation Management through Vision 2020, IBIMA 2019
CountrySpain
CityGranada
Period10/04/1911/04/19

Keywords

  • Customer loyalty
  • Customer trust
  • Service quality
  • Word of mouth

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