The Application of Service Quality and Brand Image to Maintain Customer Loyalty by Utilizing Satisfaction Strategy in Insurance Companies

Abstract

This study had the following aims: (1) to describe the variable of service quality, brand image, loyalty and satisfaction of Prudential customers; (2) to analyze the influence of variable service quality and brand image on customer satisfaction; (3) to analyze the influence of variable service quality and brand image on customer loyalty; (4) analyze the influence of satisfaction on customer loyalty, and (5) to analyze the influence of service quality and brand image on customer loyalty through satisfaction strategy. There were 86 respondents that were used as a sample in this study. This research employed the structural equations (Structural Equation Modeling) as its analysis technique. The results showed that service quality and brand image had an influence on satisfaction, which meant that the provision of quality services and supported by companies that had good images could increase customer satisfaction. Furthermore, the service quality and brand image influenced Prudential Malang's consumer loyalty. This meant that customer loyalty could be developed through the provision of quality services since customers chose a company that had a good image/perception. Satisfaction affected loyalty. Customer satisfaction was subjective and it oriented towards individuals. Furthermore, it could relate to various aspects including the quality of services provided by the company. Customer satisfaction could be utilized to say positive things and reference for a company. Satisfaction mediated the influence of service quality and brand image on loyalty. This meant that customer loyalty could be developed if the customers were satisfied with the service quality provided by the company and also if the company had a good brand image.