The Effect of Service Quality on Customer Loyalty with Corporate Image as an Intervening Variable at Bank Mega Syariah Pekanbaru

Abstract

The purpose of this study is to analyse the effect of service quality on customer loyalty with corporate image as an intervening variable at Bank Mega Syariah Pekanbaru. The background of this study is based on the low market share of Islamic banking in Indonesia, which is caused by the publics lack of trust in the compliance of Islamic banks operations with Islamic principles. This study uses a quantitative approach, employing the Partial Least Square (PLS) analysis method to test the relationships between variables. The sample consists of 100 respondents who are active customers of Bank Mega Syariah Pekanbaru, selected using the Slovin formula. The results of the study indicate that service quality has a positive and significant effect on customer loyalty, and service quality also has a positive and significant effect on corporate image. Similarly, corporate image has a positive and significant effect on customer loyalty, and corporate image significantly mediates the effect of service quality on customer loyalty at Bank Mega Syariah Pekanbaru. These findings emphasize the importance of improving service quality and strengthening corporate image in building customer loyalty in Islamic banks.