The Effect of Service Quality on Member Loyalty through Satisfaction in Islamic Financial Cooperatives: Evidence from West Java, Indonesia
Keywords:
Service Quality, Member Satisfaction, Member Loyalty, KSPPS, Sharia Cooperatives.Abstract
This study aims to analyze the effect of service quality on member loyalty through member satisfaction at Sharia Savings and Loans and Financing Cooperatives (KSPPS) in West Java Province. Service quality is a crucial factor in maintaining the sustainability of Sharia cooperatives, given that members act as both owners and users of services. The study employed a quantitative approach with a survey method of KSPPS members who had used the cooperative's services for at least one year. Data analysis was conducted using Structural Equation Modelling (SEM). The results showed that service quality had a positive and significant effect on member satisfaction. Furthermore, service quality also positively impacted member loyalty. Member satisfaction was shown to significantly influence loyalty and act as a mediating variable in the relationship between service quality and member loyalty. These findings confirm that improving service quality, encompassing reliability, responsiveness, assurance, empathy, and tangibles, can increase satisfaction and strengthen loyalty among Sharia cooperative members. This research contributes to the development of SERVQUAL theory and Sharia cooperative management, and serves as a basis for KSPPS managers in formulating service improvement strategies oriented towards member satisfaction and loyalty.
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