Driving Loyalty in Micro-Financial Institutions: A Satisfaction-Mediated Model of Credit Quality and Promotion

Abstrak

This study aims to analyze the influence of credit quality, perceived financial value, and promotion on customer satisfaction and customer loyalty at BPR Sehat Sejahtera. The study employed a quantitative approach with an explanatory research design. Data were collected through questionnaires distributed to 352 customers selected using simple random sampling. The data were analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS). The results show that credit quality has a positive and significant effect on customer satisfaction, while perceived financial value and promotion do not significantly affect customer satisfaction. Furthermore, perceived financial value, promotion, and customer satisfaction positively and significantly influence customer loyalty, whereas credit quality does not directly affect customer loyalty. Mediation analysis indicates that customer satisfaction mediates the relationship between credit quality and customer loyalty but does not mediate the relationships between perceived financial value and promotion toward customer loyalty. The novelty of this study lies in integrating credit quality, perceived financial value, and promotion into a single model within the rural banking context. The findings provide theoretical and practical contributions to customer loyalty and banking strategy development.