The Influence of Product Quality and Service Quality on Loyalty Through Customer Satisfaction (Case Study of Bank Muamalat, Ponorogo Branch Office)

Abstract

Introduction: This study investigates the influence of product quality and service quality on customer loyalty, mediated by customer satisfaction, at Bank Muamalat KCP Ponorogo. In the context of increasing competition in the Islamic banking sector, maintaining customer loyalty is essential for long-term sustainability. Research Methods: This study was conducted using a quantitative approach involving a survey distributed to 100 customers. Data analysis was performed using validity and reliability tests, classical assumption tests, multiple linear regression, and Sobel tests to assess the mediating effects. Results: The findings reveal that product quality has a positive and significant impact on customer loyalty, while service quality does not directly influence loyalty. However, both product quality and service quality positively and significantly affect customer satisfaction. Furthermore, customer satisfaction is shown to significantly enhance customer loyalty and mediate the relationship between both independent variables and loyalty.  Conclusion: These results emphasize the strategic importance of improving customer satisfaction as a pathway to fostering long-term loyalty in Islamic banking. The study provides practical insights for Bank Muamalat KCP Ponorogo in enhancing service strategies and strengthening customer relationships.