THE INFLUENCE OF PRODUCT QUALITY, SERVICE, AND FACILITIES ON CUSTOMER SATISFACTION PT.BANK SYARIAH INDONESIA

Abstract

The development in the service sector, particularly in banking, is experiencing rapid progress. Services are activities with their own identity, essentially intangible, and serve as the fulfillment of needs without necessarily being tied to the sale of other products or services. The swift growth in Islamic banking also impacts financial institutions such as Bank Syariah Indonesia. Issues related to the decline in product quality, service, and facilities can significantly affect customer satisfaction, which is based on their experiences with the provided services. The aim of this research is to identify whether these factors, namely product quality, service quality, and facilities, influence customer satisfaction at Bank Syariah Indonesia KC Sibolga. According to Kotler and Keller, customer satisfaction reflects an evaluation of perceived product performance compared to expectations. Service quality plays a crucial role in creating customer satisfaction. Products, according to Laksana, are offerings in the market to fulfill desires or needs, and higher quality tends to result in higher levels of customer satisfaction. This research employs a quantitative approach, utilizing Structural Equation Modeling-Partial Least Square (SEM-PLS) analysis with Smart PLS and SPSS version 22 applications. Data collection instruments include questionnaires with a sample size of 100 customers. Analytical tools used encompass validity testing, reliability testing, outer model testing (convergence, discriminant validity, composite reliability), as well as inner model testing (R-square, bootstrapping). The research findings indicate that product quality, service, and facilities positively influence customer satisfaction.