Title:
DOMINANT FACTORS OF CUSTOMER VALUE AFFECTING CUSTOMER LOYALTY

Authors:
Suryaman and Rochadi Santoso

Abstract:
Based on data from the financial services authority (OJK) shows that the growth rate of Islamic banking finance in Indonesia from 2005 - 2016 tends to stagnate. Several studies indicate that one of the factors affecting the profitability of sharia banks in Indonesia is due to the high number of non performing financing (NPF). Indonesian Banking Statistics 2016 publishes collectability of sharia bank financing from 2012 to 2016, which can be seen that the percentage of NPF from year to year always experienced a significant increase (for 5 years NPF increased by 2.48%). The percentage of NPF is always above 3% from year to year, coupled with the occurrence of NPF increase need to watch out and sought the solution for the growth of sharia banking can increase significantly. There are still many credit customers who are late and or do not perform financing obligations is a reason why NPF in Indonesian sharia banks is quite high. The customer's lack of discipline in financing shows that there is a lack of customer loyalty to the bank, this problem must be immediately solved so that NPF can decrease. For that we need to find the dominant factor that most influence on customer loyalty, especially from customer value factor. The study was conducted in syariah banks in West Java by taking a random sample in the city of Bekasi, Jakarta, Bandung, Tasikmalaya as many as 100 respondents. The lisrel method is used for data processing and analysis on the grounds that this method can best describe the dominant factor affecting customer loyalty. The conclusion of this research are (1) the dominant factor affecting the loyalty of syariah bank customers is the quality of human resources service. Profit sharing, diverse products, payment types, lending reasons, administrative costs, and fast processing are the next factors affecting loyalty. The lowest factor of customer value is the reason of lending for consumer needs and (2) Customer value significantly influence the loyalty of sharia bank customers (coefficient of determination = 14%)