Volume 6, Issue 9, September – 2021 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165

The Effect of Facility and Quality of Service on

Loyalty, Through Consumer Satisfaction of Vehicle
Rental Services at PT. Madani Business Partner
Rulian Besar Askadi
Student of Magister Management, Perbanas Institute
Jakarta, Indonesia

Abstract:- The national automotive industry has a very important, because if consumers are satisfied with the
significant impact on increasing the car rental business in services provided, then these consumers will become
Indonesia. The number of companies engaged in the car customers who always use the car rental services which of
rental service business, of course, has consequences for course will make these consumers loyal to the rental company.
sharp competition in getting existing customers. The
purpose of this study was to determine the effect of One of the vehicle rental companies is PT. Civilian
facilities and service quality on loyalty through customer Business Partner. PT. Mitra Bisnis Madani is a company
satisfaction of PT. Madani Business Partners. The engaged in the rental of land transportation equipment which
population used is 116 randomly with the questionnaire is an affiliate of PT. PNM (Persero). Established since 2015,
method by providing a list of questions directly to the PT. Mitra Bisnis Madani was formed to support the business
respondents. The data analysis technique in this study of PT. PNM (Persero) in all branches in Indonesia, with
used SEM (Structural Equation Modeling) analysis using existing networks throughout Indonesia, in 2019 PT. MBM
the IBM AMOS v22 program. The results show that develops its business not only for PT. PNM (Persero), but is
facilities, quality of service and customer satisfaction have ready to serve all companies that require vehicle rental. PT.
a positive influence on customer loyalty. while the indirect MBM will give a strong commitment in providing satisfaction
influence of facilities and quality of service through to each of our customers, work professionally and prioritize
customer satisfaction can influence customer loyalty. the best service.

Keywords:- Facilities, Service Quality, Customer To be able to provide satisfaction to its customers, what
Satisfaction, Loyalty. must be considered by vehicle rental companies is the
facilities and quality of customer service that really needs to
I. INTRODUCTION be a concern. The facilities provided are as well as the
feasibility of the vehicle along with the facilities offered such
The development of the automotive industry makes the as cleanliness so that consumers get comfort and safety in
competition increasingly competitive. This can be seen by the using the vehicle. While the quality of the service as well as
various product innovations and advertisements that are the service provided if the consumer needs help or something
intensively carried out both through mass media and electronic on the vehicle used by the company must quickly serve so that
media. This is intended for how to seize market share of it can be quickly resolved which will certainly provide
competitors and maintain their own market share. Every customer satisfaction. Car rental services will succeed in
company engaged in the automotive sector feels the need to obtaining large numbers of consumers if they are considered
continuously provide excellent facilities and service quality to to be able to provide satisfaction for their customers. Service
each of its customers. By providing facilities and good service quality is a strategically important variable in an organization's
quality to its customers, the company is expected to be able to efforts to achieve customer satisfaction and long-term
provide satisfaction to its loyal customers. relationships and attract new customers. To achieve this goal,
organizations pay attention to the behavior of workers and if
With the increasing volume of vehicles, it encourages this is ignored, customers will experience frustration due to
business actors, especially in the service sector to create a lack of communication.. According to Parasuraman et al.
business that is engaged in the transportation sector, one of (1988), five main dimensions related to service quality,
which is vehicle rental services. Vehicle rental is a provider of namely direct evidence, reliability, responsiveness, assurance,
transportation services to people who need a vehicle. At this and empathy. Anderson, Fornell and Lehmann (1996) say that
time car rental services are widely used by people who need it they are satisfied with the quality of the products and services
as a means of transportation. Many car rental services rent cars they offer and that they are more loyal to their customers.
with various types of cars at varied prices without Loyalty means the ability of a company to place a product in
compromising the quality and service to its users. Car rental the customer's mind, and by strengthening the trust of the
services prioritize service quality and adequate facilities for customer, the company considers the customer as a partner
consumers, so that car rental services can get the desired and, if necessary for development, mutual Always interact for
market share. For car rental services, customer satisfaction is the development of (Kartajaya, 1999).

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Volume 6, Issue 9, September – 2021 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
Studies on the relationship between quality of service customer satisfaction is when the customer's expectations
and customer satisfaction vary. (Aridara Nastiti, Sri Rahayu match the expected expectations. Fornell et al. (1996) said that
Tri Astuti, 2019), we found that quality of service has a if the perceived value exceeds the customer's expectations,
positive and significant impact on customer satisfaction. The then customer satisfaction is high. The most important factor
higher the quality of service, the higher the customer for creating customer satisfaction is the agent's performance,
satisfaction. (Sofyan, Pradhanawati & Nugraha) found that the which is usually defined by the agent's quality (Mowen 1995).
quality and satisfaction of equipment, service was positive for The higher the quality of the product or service you provide,
loyalty and had a significant impact. However, according to a the higher your customer satisfaction will be. Higher customer
study (Evan Chandra, 2018), quality of service does not satisfaction can bring profits to your business. Conversely,
directly affect customer loyalty. In this study, we found that customers may migrate to other products if they are not
the value received by customers and the quality of service satisfied (Kotler and Armstrong, 1996).
have a positive and significant impact on customer satisfaction
and employee loyalty. The relationship between equipment, D. Loyalty
quality of service and customer satisfaction still varies. In According to Oliver (2005), loyalty is a customer's deep
some previous studies, will review the relationship between insistence on re-subscribing or repurchasing a selected
equipment, quality of service, customer satisfaction, and product/service in the future, even if the influence of
impact on loyalty. circumstance and marketing activities can drive behavior.
Griffin (2005) explains that some of the benefits a firm obtains
II. LITERATURE REVIEW if it has loyal customers will increase and promote a firm's
market share through reduced marketing costs, lower
A. Facility transaction costs, lower turnover costs, and increased cross-
Facilities and anything that is intentionally provided by selling. Positive ratings based on the assumption that loyal
service providers for use and enjoyment by consumers for the customers also mean they are satisfied.
purpose of providing the highest level of satisfaction. A
facility is all of the physical equipment provided by service E. Theoritical Framework
vendors to support consumer convenience (Kotler, 2009). On Based on these theory above, it could be described a
the other hand, according to Lupioadi (2008), the appearance theoritical framework for these titles as follows:
of facilities and infrastructure facilities, their capabilities, and
the surrounding environmental conditions indicating their
presence outside, including physical facilities (buildings)
facilities. Includes facilities, tools, objects, equipment, money,
and workspace. According to Tjiptono (2006), the design and
layout of service facilities are closely related to the formation
of customer perceptions. The perception that different types of
services are formed by the interactions between customers and
facilities influences the quality of these services from the
customer's perspective.

B. Service Quality
Jasfar (2005) proposed that there are five dimensions of
quality of service. That is, (1) reliability is the ability to
provide the promised service immediately, accurately and Fig 1: -Theoritical Framework
sufficiently, and (2) the ability of employees to help
responsive customers and provide the service responsively It F. Hypothesis
is a desire, (3) Make sure that employees include the The hypothesis of this cases that could be seen as in
knowledge, abilities, comfort and credibility of employees follows:
without danger, danger or doubt, (4) Empathy is the ease of
building relationships, smooth communication and personal H1 Facilities have a positive and significant impact on
interest And an understanding of personal needs customer, and customer satisfaction.
(5) physical products include physical facilities, equipment, H2 Service quality has a positive and significant effect on
employees and means of communication. customer satisfaction.
H3 Facilities have a positive and significant influence on
C. Customer satisfaction customer loyalty.
Within the context of customer satisfaction, it is H4 Service quality has a positive and significant influence on
generally the expectation or trust that the customer will customer loyalty.
receive. Expectations themselves are influenced by the H5 Customer satisfaction has a positive and significant
experience of buyers and customers, advertising, descriptions influence on loyalty.
or information from company sources such as media and
friends, competitor information and company commitments.
These customer expectations evolve with the customer's
experience increasing over time (Kotler, 1997). Achieving

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Volume 6, Issue 9, September – 2021 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
III. METHODOLOGY According to Table 2, the CR value of each variable
shows >0.6. Therefore, all indicators of research variables can
This study identifies causal relationships between be used as effective data collectors to explore the problems as
variables and finds real-world facts that help researchers the research object.
understand and predict relationships between variables. This
research will be conducted at PT Madani Business Partner TABLE 2. RELIABILITY TEST RESULTS
(MBM) which is a vehicle rental company that serves all areas
of big cities, especially for PT. PNM. Researchers will analyze
all facilities and infrastructure owned by PT MBM in order to
provide service and customer satisfaction. Researchers
conducted an analysis at the location of the PT Mitra Bisnis
Madani office in Jakarta. The type of data used in this research
is quantitative data with the technique of collecting it is by
interview, questionnaire. The population and samples included G. Hypothesis Test
in the study amounted to 116 respondents. To test this research Use consistency test and statistical test to analyze the
hypothesis, structural equation model analysis or better known results of SEM model data processing at each stage. The data
as SEM (Structural Equation Modeling) was used using the processing results of Structural equation Modeling (SEM) full
AMOS program. model analysis are as follows:

Fig2: - Customer loyalty Model

IV. RESULTS AND DISCUSSIONS Fig3: - Full Model SEM (Standardized)

A. Validity and Reliability Test The results of the SEM analysis as a hypothesis testing
It can be seen from Table 1 that all the data from the step are as follows:
research questionnaire meet the valid standard, and the result
of the measurement of the load factor value or the validity TABLE 3. HYPOTHESIS TESTING
coefficient of the standardized load estimate is 0.05.
Therefore, all research indicators can be used as effective data
collectors to explore problems as objects of research.

TABLE 1. VALIDITY TEST RESULTS

According to Table 3, the hypothesis test is as follows:

H1: Facilities have a positive and significant effect on
customer satisfaction

The estimated parameter of the relationship between

facilities and loyalty is 0.299. Testing the relationship between
the two variables showed a C.R value of 2.581 > 1.96 with
probability = 0.01 (p < 0.05). So it can be concluded that the
facility has a positive effect on customer satisfaction, so the
higher the product facilities, the higher the customer
satisfaction. Thus, hypothesis 1 is accepted because there is a
positive correlation between facilities and loyalty.
H2: Service quality has a positive and significant effect on
customer satisfaction

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Volume 6, Issue 9, September – 2021 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
The estimated parameter of the relationship between can be done by looking at the limitations of this research
service quality and customer satisfaction is 0.74. Testing the which can be used as a source of ideas for the development of
relationship between the two variables shows the value of C.R this research in the future by using other indicators outside of
= 7.753 > 1.96 with probability = 0.000 (p < 0.05). So it can this research that are relevant to the research to be carried out.
be concluded that service quality has a positive effect on
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