Factors Affecting Customer Retention in the Banking Sector (Study on BRI Customer in East Nusa Tenggara, Indonesia)

Abstract

The purpose of this study is to analyze and explain  relationship among service quality, customer satisfaction, corporate image, trust, loyalty, and customer retention. Survey method by questionare is used to gain data from 204 customers of BRI who came from 4 Local Office of bank BRI in East Nusa Tenggara Province, Indonesia. Statistic descriptif and General Structured Component Analysis (GSCA) was used to analyze data. The results provide that service quality has a significant and positive effect on customer satisfaction, and corporate image, but it has an insignificant effect on customer retention. Customer satisfaction has a significant and positive effect on trust  and customer retention. Corporate image has a significant and positive effect on loyalty and customer retention. Trust has a significant and positive effect on customer retention. Loyalty has a significant and positive effect on customer retention. The limitations of this study are using cross sectional data, and the limited number of samples comes only from one bank that is BRI. The results contribute to developing of science, especially in  marketing science and practical contribute to the manager of bank service  in relation with efforts to promote customer retention, because  customer retention is more advantageous than looking for new customer.

Keywords: Service Quality, Satisfaction, Image, Trust, Loyalty,  Retention.