THE INFLUENCE OF INTERNAL ENVIRONMENTAL UNCERTAINTY ON LOYALTY IN BANKING
Keywords:
Internal , environmental , uncertainty, loyalty, bankingAbstract
Beckground: The uncertainty of the internal environment is one of the main challenges faced by banks in achieving customer loyalty. The internal environment of banks often changes dynamically, including changes in internal policies, organizational structure, and service quality. The uncertainty of the internal environment can affect customers' perception of service quality and may impact their level of loyalty to the bank. Therefore, it is important to understand the effect of internal environmental uncertainty on customer loyalty in the banking sector.
Aims: The purpose of this study is to identify and analyze the effect of internal environmental uncertainty on loyalty in the banking sector. This study aims to provide better insight into how changes in the internal environment within banks can affect customer loyalty.
Research Method: This research utilizes a quantitative approach using survey as the data collection method. The research sample consisted of 60 randomly selected bank customers. Respondents were asked to rate the level of internal environmental uncertainty they experience in relation to the bank they use, as well as their level of loyalty to the bank. The data collected was then analyzed using appropriate statistical techniques to test the research hypotheses.
Results and Conclusions: The results of this study indicate a significant influence between internal environmental uncertainty and customer loyalty in the banking sector. The higher the level of internal environmental uncertainty experienced by customers, the lower their level of loyalty to the bank. This suggests that changes in the bank's internal environment can affect customers' perceptions and possibly influence their decision to remain loyal to the bank.
Contribution: This research makes an important contribution to the understanding of the factors that influence customer loyalty in the banking sector. By understanding the influence of internal environmental uncertainties, banks can take appropriate actions to manage changes and improve customer loyalty levels. The results of this study can also be used as a basis for developing more effective marketing strategies in the face of internal environmental uncertainty.
Downloads
References
Aldaihani, F. M. F., & Ali, N. A. Bin. (2019). Impact of relationship marketing on customers loyalty of islamic banks in the state of Kuwait. International Journal of Scientific and Technology Research, 8(11), 788–802.
Alketbi, S., Alshurideh, M., & Al Kurdi, B. (2020). The Influence of Service Quality on Customers ’ Retention and Loyalty in the UAE Hotel Sector with Respect to the Impact of Customer ’ Satisfaction , Trust , and Commitment : A Qualitative Study. PalArch’s Journal of Archaeology of Egypt/Egyptology, 17(4), 541–561. https://www.researchgate.net/publication/344671131_The_Influence_of_Service_Quality_on_Customers%27_Retention_and_Loyalty_in_the_UAE_Hotel_Sector_with_Respect_to_the_Impact_of_Customer%27_satisfaction_Trust_and_Commitment_A_Qualitative_Study
Dam, S. M., & Dam, T. C. (2021). Relationships between Service Quality, Brand Image, Customer Satisfaction, and Customer Loyalty. Journal of Asian Finance, Economics and Business, 8(3), 585–593. https://doi.org/10.13106/jafeb.2021.vol8.no3.0585
Diputra, I. G. A. W., & Yasa, N. N. (2021). The Influence of Product Quality, Brand Image, Brand Trust on Customer Satisfaction and Loyalty. American International Journal of Business Management (AIJBM), 4(1), 25–34. http://118.97.187.12/pustaka/files/17726/jurnal/the-impact-of-service-quality-product-quality-and-price-on-customer-satisfaction.pdf
Fida, B. A., Ahmed, U., Al-Balushi, Y., & Singh, D. (2020). Impact of Service Quality on Customer Loyalty and Customer Satisfaction in Islamic Banks in the Sultanate of Oman. SAGE Open, 10(2). https://doi.org/10.1177/2158244020919517
Hayati, S., Suroso, A., Suliyanto, & Elfan Kaukab, M. (2020). Customer satisfaction as a mediation between micro banking image, customer relationship and customer loyalty. Management Science Letters, 10(11), 2561–2570. https://doi.org/10.5267/j.msl.2020.3.039
Herath, S., Hmak, H., Hmsp, H., Lanka, S., & Sri Lanka Corresponding Author, K. (2019). Impact of Green banking initiatives on customer satisfaction: A conceptual model of customer satisfaction on green banking. Researchgate.Net, 21(February), 24–35. https://doi.org/10.9790/487X-2101032435
Khatab, J. J., Esmaeel, E. S., & Othman, B. (2019). The influence of service quality on customer satisfaction: Evidence from public sector and private sector banks in kurdistan/iraq. International Journal of Advanced Science and Technology, 28(20), 865–872.
Khatoon, S., Zhengliang, X., & Hussain, H. (2020). The Mediating Effect of Customer Satisfaction on the Relationship Between Electronic Banking Service Quality and Customer Purchase Intention: Evidence From the Qatar Banking Sector. SAGE Open, 10(2). https://doi.org/10.1177/2158244020935887
Kristanti, F. T., Salim, D. F., Indrasari, A., & Aripin, Z. (2022). a Stolck Polrtfolliol Stratelgy in thel Midst olf thel Colvid-19: Casel olf Indolnelsia. Jolurnal olf Elastelrn Elurolpelan and Celntral Asian Relselarch, 9(3), 422–433. https://doli.olrg/10.15549/jelelcar.v9i3.822
Kristanti, F. T., Syafia, N. M. N., & Aripin, Z. (2021). An elarly warning systelm olf lifel insurancel colmpaniels distrelss in Indolnelsia. Multicultural Elducatioln, 7(7), 237–245. https://doli.olrg/10.5281/zelnoldol.5097501
Lie, D., Sudirman, A., Efendi, E., & Butarbutar, M. (2019). Analysis of mediation effect of consumer satisfaction on the effect of service quality, price and consumer trust on consumer loyalty. International Journal of Scientific and Technology Research, 8(8), 421–428.
Naveed, R. T., Irfan, M., Aslam, H. D., Anwar, B., & Ayub, A. (2019). THE EFFECT OF GENERAL BANKING INFORMATION TECHNOLOGY SYSTEM ON CUSTOMERS’ SATISFACTION WITH THE MODERATING EFFECT OF CUSTOMER TRUST: AN EMPIRICAL STUDY FROM PAKISTANI COMMERCIAL (ISLAMIC) BANKS. The Effect of General Banking Information Technology System, April 2020.
Nguyen, D. T., Pham, V. T., Tran, D. M., & Pham, D. B. T. (2020). Impact of service quality, customer satisfaction and switching costs on customer loyalty. Journal of Asian Finance, Economics and Business, 7(8), 395–405. https://doi.org/10.13106/JAFEB.2020.VOL7.NO8.395
Nguyen, H. T. H., & Nguyen, M. V. T. (2022). Evaluating the Operating Efficiency of Joint-Stock Commercial Banks in Viet Nam Through the Restructuring Period. Journal of Eastern European and Central Asian Research, 9(3), 399–408. https://doi.org/10.15549/jeecar.v9i3.815
Othman, B., Harun, A., Rashid, W., & Ali, R. (2019). The impact of Umrah service quality on customer satisfaction towards Umrah travel agents in Malaysia. Management Science Letters, 9(11), 1763–1772. https://doi.org/10.5267/j.msl.2019.6.014
Priyo, J. S., Mohamad, B., & Adetunji, R. R. (2019). An examination of the effects of service quality and customer satisfaction on customer loyalty in the hotel industry. International Journal of Supply Chain Management, 8(1), 654–663.
Simanjuntak, M., Putri, N. E., Yuliati, L. N., & Sabri, M. F. (2020). Enhancing customer retention using customer relationship management approach in car loan bussiness. Cogent Business and Management, 7(1). https://doi.org/10.1080/23311975.2020.1738200
Supriyanto, A., Wiyono, B. B., & Burhanuddin, B. (2021). Effects of service quality and customer satisfaction on loyalty of bank customers. Cogent Business and Management, 8(1). https://doi.org/10.1080/23311975.2021.1937847
Syafarudin, A. (2021). The Effect of Product Quality on Customer Satisfaction Implications on Customer Loyalty in the Era Covid-19. Ilomata International Journal of Tax and Accounting, 2(1), 71–83. https://doi.org/10.52728/ijtc.v2i1.204
Tran, V. D., & Vu, Q. H. (2019). Inspecting the relationship among e-service quality, e-trust, e-customer satisfaction and behavioral intentions of online shopping customers. Global Business and Finance Review, 24(3), 29–42. https://doi.org/10.17549/gbfr.2019.24.3.29
Yullya Ramadonna, Nasfi, Z. A. (2019). the Effect of Customer Relationship Management and Customer Value on Customer Satisfaction of Services and Its Impact on Customer Loyaltyin Pt. Bpr Rangkiang Aur.
HTtps://Jurnal.Umsb.Ac.Id/Index.Php/Menaraekonomi/Article/View/1277/1116, 5(1), 103–115.
Z Aripin, V Paramarta, Kosasih. (2023) . Utilizing Internet of Things (IOT)-based Design for Consumer Loyalty: A Digital System Integration. Jurnal Penelitian Pendidikan IPA 9 (10), 8650-8655, 2023.
DOI: 10.29303/jppipa.v9i10.4490
Dikson Silitonga, Siti Alfia Ayu Rohmayanti, Zaenal Aripin, Dadi Kuswandi, Arif Budi Sulistyo.(2023). Edge Computing in E-commerce Business: Economic Impacts and Advantages of Scalable Information Systems.EAI Endorsed Transactions on Scalable Information Systems.V.1.11.
Downloads
Published
Issue
Section
License
Copyright (c) 2023 zaenal aripin, Kosasih, Vip Paramarta (Author)
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
