THE EFFECT OF QUALITY AND SERVICE VALUE ON CUSTOMER LOYALTY (A Study on the Customers of Commerclal Banks in Malang City)

This study empirically examines the relationship between service quality, perceived service value, and costumer loyalty. The data sources of this study use customers on Commercial banks branches which operating in Malang City. The result findings showed a positive and significant effect between service quality on perceived service value by the customer, service quality on customer loyality and service on the loyalty value through services value. Service quality is considered give a positveimpact on loyalty through services value. Yet, the understanding the influence customer loyality variable will help the bank manager to develop a program for suitable action that providers better service and build superior service value which ultimately will increase customer loyality.Keyword: EFFECT, QUALITY, SERVICE, VALUE, CUSTOMER LQYALT