Focusing on complaints handling for customer satisfaction and loyalty: The case of Indonesian public banking

Abstract

The purpose of this study is to examine and explain the effect of customer complaints handling and the quality of bank services on customer loyalty to public sector banks owned by the government in Jakarta, Indonesia. These banks have been the subject of several complaints to the Indonesian Consumer Foundation and the Financial Services Authority. The variables in this study are the quality of bank service (6 indicators), the handling of customer complaints (4 indicators), the customer loyalty (3 indicators) and the customer satisfaction (5 indicators). A total of 275 respondents from four state-owned commercial banks have been used. The study presents a proposed conceptual model, which is a..