ANALYSIS OF THE EFFECT OF OPERANT & OPERAND SERVICE QUALITY TOWARD CUSTOMER LOYALTY, THROUGH CUSTOMER ENGAGEMENT AND CUSTOMER SATISFACTION TO THE CUSTOMERS OF ROCK HOTEL IN SURABAYA
Abstract
Nowadays there has been a significant growth in terms of Indonesia’s economy.
Investors and business alike will be able to take advantage of the economic growth of the
country. One of the most credible institutions (DRI) Danareksa Research institute has shown
that the citizens of Indonesia has a high degree of expectation regarding the country’s economy
in the year 2017. Their expectation in the end will greatly affect their buying behavior. The
citizens are more willing to conduct business and invest their money. The increase in investment
will possibly also increase the GDP and job vacancies. Other than that another factor which is
affected by the increase in expectation is the buying power of the citizens. Additionally, the
increasing local expectation will also greatly appeal to the foreign investors. The economic
growth of 2017 also translates to opportunities that are available in terms of the tourism industry.
Tourism is one of the industries which the local government focuses their enhancements on.
They deemed the industry to be very crucial since it contributes greatly to the GDP of the
country. In the recent years, businesses which operate in the tourism industry have felt a
significant increase in terms of potential customers
The purpose of this research is to reveal the Effect of operant and operand service quality toward
customer loyalty through Customer Engagement and Customer Satisfaction at Supermall in
Surabaya. This is a case study of Rock Hotel is using the 7 variables to identify their customer
loyalty toward them toward Rock Hotel in Surabaya.
This study uses a quantitative approach to the analysis technique of Structural Equation
Model (SEM) and the AMOS 22.0 software. The questionnaire distributed to 166 respondents in
the sample in which the characteristics of respondents which consists of men and women in the
age range 16-65 years, consumers who live in Surabaya, have visited Rock Hotel in Surabaya.
The sampling method used in this research is purposive sampling. The results showed Operand
service quality has a significant effect on customer satisfaction with the regression coefficient of
0.588 with the acceptable hypothesis standard ie C.R. ≥ ± 2.00 with significance level <0.05
(5%), hence hypothesis 4 (H4) is Accepted. Operand service quality has a significant effect on
customer loyalty with the regression coefficient of 0.022 with the acceptable hypothesis standard
ie C.R. ≥ ± 2.00 with significance level <0.05 (5%), hence hypothesis 5 (H5) is not accepted.
Customer engagement has a significant effect on customer satisfaction the regression coefficient
of 0.251 with the acceptable hypothesis standard ie C.R. ≥ ± 2.00 with significance level <0.05
(5%), hence hypothesis 6 (H6) is Accepted. Customer engagement has a significant effect on
customer loyalty with a regression coefficient of 0.48 with the acceptable hypothesis standard ie
C.R. ≥ ± 2.00 with significance level <0.05 (5%), hence hypothesis 7 (H7) is Accepted. The
estimation parameters between the 2 variable shows a significant effect from customer
engagement to customer satisfaction the regression coefficient of 0.41, the particular hypothesis is
accepted
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