A STUDY THE EFFECT OF CUSTOMER VALUE, SERVICE QUALITY, AND CUSTOMER SATISFACTION TO TRUST AND THEIR IMPLICATIONS TO CUSTOMER LOYALTY ON MILLENNIAL GENERATION WHO USE E-BANKING

Abstract

Banking services are the most affected by information technology development, therefore, this research will examines the affect the changing technology to customer trust and their implication to customer loyalty. The researcher examine the implication though customer value, Service quality and customer satisfaction. Hypothesis test results show that customer value, customer services and customer satisfaction provide significant and positive influence on customer trust and do not directly affect customer loyalty. To get customer loyalty, bank must go through customer trust. This conclusion means that if a bank wants to get customer loyalty from the users (millennial generation) of electronic banking. The bank should provide appropriate added value and services provided by electronic banking should be appropriate with the movement or position of the user without any interference, the impact of these three variables is that customer trust is directly affected by these three variables. Whereas to get customer loyalty, bank have to go through the customer trust first, the bank can’t go directly to the customer loyalty. This study used hypothesis verification approach to prove the hypothesis and a descriptive approach to judge on the results of the study. The main objective is to find out and identify whether customer service, customer satisfaction, customer value has an influence on the customer's trust in using Electronic Banking. If it is true then whether trust as the impact of the interaction of these variables will result in loyalty. The research instrument was made by using a 5 scale of Likert’s method and questionnaire survey method distributed to 200 respondents and the responses obtained by using cluster sampling method. Respondents who were asked must meet certain criteria, their age between 20-35, have job, use gadgets (phone) to interact with banks. This criterion makes the research different from other similar studies that have been done.  After going through a series of statistical tests, Structural Equation Model (SEM) used to process data and to identify the objective of the study.