EFFECT OF SERVICE QUALITY AND RELATIONSHIP MARKETING ON CUSTOMER SATISFACTION AND ITS IMPACT ON LOYALTY SERVICE ON WISMA SOEWARNA BRACH OFFICE (KCP) OF BNI OF TANGERANG

DOI:10.31933/DIJDBM Abstract: The purpose of this study is to determine the Effect of Service Quality and Relationship Marketing on Customer Satisfaction and Its Impact on Loyalty by measuring indicators that affect the variable Service Quality and Relationship Marketing on customer satisfaction variables and their implications on customer loyalty variables. This research applies a descriptive research design using survey methods. Sampling uses convinient sampling as a sampling technique. This study was tested using the structural equation modeling (Lisrel) approach to test the significance of the significance of the overall model and predetermined pathway. The findings show that Service Quality and Relationship Marketing variables significantly influence customer satisfaction variables. Further findings indicate that Service Quality and Relationship Marketing variables directly have a significant effect on customer loyalty variables. This study also shows that customer satisfaction has an influence on customer loyalty variables. It is recommended to companies to improve the excellence of Service Quality and Relationship Marketing.


INTRODUCTION
In today's business world which keeps changing, along with increasing level of competition, every company organization, whatever the form and type, and whoever the owner is will face the problem, which is how to maintain the survival of the company in the situation. Survival of the company will eventually be determined by the company's ability in getting adequate level of profitability sustainably. This includes banking companies.Bank as business institution is inseparable from the problem, especially related with the role of banking in economic activities as one of the machine of Indonesian development. In a dynamic economy, the existence of the banking sector has a very vital and strategic role. In this context, the main role of banking is an intermediating institution between a party with excess and a party with shortage and needs for fund to reflect the bank's health. Therefore, healthy banks will reflect healthy economy in a country, while unhealthy banks reflect poor economy of a country [14].Based on the data collected by the author, as of today, there are 134 Banks in Indonesia [2]. This increases the level of competition among the banks. Some of the well-known banks in Indonesia are below. Increasing competition and number of competitors force all banks to pay attention to the needs and wishes of the customers, and try to fulfill their expectations in more satisfying ways than other banks and their competitors.   Table 3. BNI ranks fifth nationally in collecting public fund through bank saving products. BNI should be able to improve its quality to rank better. The services provided by BNI today are good, but BNI could be better than in 2018. In this case, the researcher performed a research on saving products in PT. Bank Negara Indonesia Tbk. The saving products to be studied were facilities offered by BNI, so any occurring problem would reduce competitiveness in maintaining customer loyalty.
The main focus of the present study was analysis of strategy programs performed by Bank Negara Indonesia in providing day-to-day services, by comparing them with the saving products of other banks.  Table 3. and Table 4. BNI has never ranked first. BNI only ranks third. Considering Table 3. and Table 4. BNI should improve its service quality to keep their customers loyal to BNI. Equally important service is maintaining good relationship with the customers to improve customer satisfaction. This is very important because customer satisfaction is the most valuable thing for bank because it will impact customer loyalty. impact customer loyalty.
However, as banks grow and develop today, BNI Kcp Wisma Soewarna has difficulty to keep the customers loyal by maintaining long-term relationship (customer relationship) because customers are assumed to not only save their money in one bank. This is shown by the number of customers who no longer actively do transactions. It was found that among the existing customers of BNI KCP Wisma Soewarna up to 2018, only 79 % were still active or often performed transactions. The remaining 21% percent was categorized as inactive in performing transactions (no longer performing transactions and very rarely performing transactions). This is shown in Table 5.

Table 5. The Number Of Clients Active And Inactive
Customer loyalty is the crowning achievement of banks. Satisfied and loyal customers don't hesitate spreading news on banking products they choose. They have high credibility because they're not paid by anyone to recommend the banking product or brand. Maintaining loyal customer should be prioritized over getting new customers because recruiting new customers is difficult as if cost a lot of money. So, companies should maintain loyal customers.
The ideal situation will be realized if marketers know the needs and wishes of customers to take appropriate steps. A customer is considered loyal if they have strong commitment to buy and consume the goods regularly. Therefore, companies should know how to form customer loyalty.

LITERATURE REVIEW
Service quality is a dynamic condition related with product, service, human, process and environment which meet or exceed expectation Relationship marketing is a marketing strategy concept which aims to form long-term relationship with customers, i.e. maintaining solid and mutually beneficial relationships between service providers and customers which could create repeat transactions and customer loyalty [12]. Customer satisfaction is a level in which estimated product performance is consistent with buyer's expectation. Customer satisfaction is one's happiness or satisfaction which occurs after comparing product performance or outcome with expected performance or outcome before consuming or using the product [7].
Loyalty is customer's deep commitment to return or do repeat purchase of chosen product/service consistently in the future, although situation and marketing efforts potentially cause change in behaviors.
Framework is narration (description) or statement (proposition) on identified or formulated conceptual problem solving frame. Below is the framework of the present study:

RESEARCH METHODS
The present study was a causal relation using descriptive research method with survey type quantitative approach. The research population in the present study was customers of BNI KCP Wisma Soewarna of Tangerang. The research sampling used non-probability sampling with purposive sampling technique. The number of samples referred to the criteria proposed by Hair et.al [4] i.e. Maximum Likelihood Estimation (MLE) technique. The good number of samples according to MLE is 100-200 samples.
The data collection method in the present study was questionnaire using likert scale with five research scores administered to 150 respondents who met the sample criteria. The questionnaire was distributed online via google form. In the present study, the variables were categorized into: (1) Independent variables i.e.; (X1) Service quality and (X2) Relationship marketing (2) and Dependent variables i.e.; (Y1) Customer satisfaction and (Y2) Customer loyalty. The data analysis of the present study used LISREL 8.80 for processing primary data

FINDINGS AND DISCUSSION
Validity test shows how far an instrument can measure a variable to be measured. The basis for deciding whether a statement is valid or not is below: (1) if r is positive and r ≥ 0.50, then the statement item is valid, while (2) if r is positive and r < 0.50, then the statement item isn't valid. Based on Figure 3, all statement items are valid because all r values of the statements are ≥ 0.50.  (RFI) Table 6 shows that model fitness value is good, i.e. good fit and marginal fit, meaning overall the fitness value of the research model shows good fit. To test research hypothesis, the significance value (α) is 0.005 or 5% with t value of ≥ 1.96. The research hypothesis (H1) states that Service Quality has direct positive and significant effect on customer satisfaction. This was shown by t-value which is 4.01 bigger than 1.96. In other words, if the service quality of BNI KCP Wisma Soewarna of Tangerang improved, it would affect customer satisfaction. Providing good service quality and security for the customers will create satisfaction for the customers and vice versa. BNI KCP Wisma Soewarna of Tangerang should reform to improve services for the customers to provide customer satisfaction so that they would use the offered services. The research result was consistent with the research result of Ilyas, A., Arshed, N., & Hussain, T (2016) tha high quality service delivery is necessary to reach customer satisfaction. The study was in line with Lee, M.S., Hsiao, H.D., & Yang, M.F (2011) who state that customer satisfaction is the result of service quality. Aldlaigan and Buttle in Ladhari et al. (2011) identify positive and significant correlation between service quality and overall satisfaction.

Fig. 3. T-Value
The research hypothesis (H2) states that Relationship Marketing has direct positive and significant effect on customer satisfaction. This was shown by t-value which is 4.01 bigger than 1.96. In other words, if the Relationship Marketing of BNI KCP Wisma Soewarna of Tangerang improved, it would affect customer satisfaction. It meant BNI KCP Wisma Soewarna of Tangerang should improve service quality, which was the main factor affecting customer loyalty, because customers whose personal values were satisfied and had positive mood on the services would have high loyalty to the company. The present study was in line with the studied by Sari, Y.K (2017), Putri, U.P., Suharyono. and Abdillah, Y (2014), and Synathra, V., and Sunarti (2018) wchich show that relationship marketing affects customer satisfaction. Customer satisfaction is created due to the relation formed by Bank to keep customers from moving to any other brand or company.
The research hypothesis (H3) states that Service Quality has direct positive and significant effect on customer loyalty. This was shown by t-value which is 2.21 bigger than 1.96. It meant the customers were satisfied with employees' efficiency, satisfied with employees' explanation on products, satisfied with employees who listened to their complaints. The research result was consistent with the study of Akbar and Parves (2009) which shows positive and significant relation between service quality and customer loyalty. It means good service quality will produce high customer satisfaction which could improve customer loyalty. In making policies to increase customer loyalty, service quality should be noted because it positively and significantly affects customer loyalty (Yani, 2004).
The research hypothesis (H4) states that Relationship Marketing has direct positive and significant effect on customer loyalty. This was shown by t-value which is 2.13 bigger than 1.96. The research result was consistent with the previous studies by Sari, Y.K (2017), Herdian, G and Widyastuti (2018), Putri, U.P., Suharyono., and Abdillah, Y (2014), and Synathra, V., and Sunarti (2018) which show that relationship marketing has positive and significant effect on customer loyalty.
The research hypothesis (H5) states that Satisfaction has direct positive and significant effect on customer loyalty This was shown by t-value which is 2.93 bigger than 1.96. The research result was consistent with the study by Lee, M.S., Hsiao, H.D., & Yang, M.F (2011) which states that customer satisfaction has positive and significant effect on customer loyalty. Moreover,

CONCLUSION AND SUGGESTION
Based on data analysis and discussion in the previous chapter, the following research conclusions are drawn: By analyzing the research result, some suggestions which could be considerations and inputs for National Health Insurance (JKN) and future researchers are: Suggestion for the company (1) Wisma Soewarna Brach Office (KCP) of BNI of Tangerang is expected to be able to grow and improve service quality as the present study found that service quality, i.e. improvement of performance, effectiveness and productivity, should be noted to provide solution for customers to allow them to get and fulfill their needs in Wisma Soewarna Brach Office (KCP) of BNI of Tangerang. It's important to note because service quality affects customer satisfaction directly and customer loyalty indirectly. (2) Wisma Soewarna Brach Office (KCP) of BNI of Tangerang is expected to be able to improve Relationship Marketing as the present study found that confidence with the indicator of good reputation has the lowest loading factor value. It shows that to improve Relationship Marketing, the company should improve the performance of employees to improve the reputation of Wisma Soewarna Brach Office (KCP) of BNI of Tangerang by resolving customer complaints correctly and swiftly. Therefore, Wisma Soewarna Brach Office (KCP) of BNI of Tangerang is expected to improve the relationship regularly and resolve customer complaint appropriately to give extra satisfaction to the customers. The strategy is expected to improve the brand's reputation and make customers trust the bank more. The reputation makes the customers more confident in the relationship between the company and the customers. Therefore, BNI is always oriented to the customers' needs, develop & grow their confidence, create relationship with the stakeholders, be sensitive to the customers' behaviors, so BNI should be more innovative in the long term. Innovativeness isn't only about creating product or service, but also ways to maintain the customers. BNI should create good relationship with the customers by always paying attention to the, opening communication forum, reminding and inviting customers to enjoy facilities as BNI customers.
(3) Wisma Soewarna Brach Office (KCP) of BNI of Tangerang is expected to be able to improve service quality and Relationship Marketing so that the customers will always perform various transactions as there is customer loyalty. Successful strategy to improve service quality and Relationship Marketing of Wisma Soewarna Brach Office (KCP) of BNI of Tangerang could create customer loyalty, so that the customers invite others to join the bank. This is very beneficial for the bank. Beside loyal customers, the bank could gain new customers from the exiting customers. (4) Further studies expected to do research by adding another variables affecting satisfaction and loyalty quality of service, like variable prices, service, trust, security. So it will enrich factors in question about customer satisfaction where research need much development sector, so the results can contribute positive and applicative for the world education in umumya and business development company specifically.