EXAMINING THE EFFECT OF RETAIL SERVICE QUALITY DIMENSIONS ON CUSTOMER SATISFACTION AND LOYALTY (A Case Study of Toko Progo Yogyakarta)

The market range of retailers extends rapidly and continuously, and the level of competition is also higher and advanced. The recent market place has become more competitive as customers continually expect retailers to exceed their increasing expectations. To face such a changeable and aggressive environment, one of the effective strategies is to do improvements. Based on those facts, Toko Progo needs a research as a review of its service quality. This study intends to explore the findings of customer satisfaction towards loyalty. The main research questions are: (1) Physical aspects (service quality dimension) affect customer satisfaction. (2) Reliability (service quality dimension) affect customer satisfaction. (3) Personal interaction (service quality dimension) affect customer satisfaction. (4) Problem solving (service quality dimension) affect customer satisfaction. (5) Policy (service quality dimension) affect customer satisfaction. (6) To find out whether the differences of consumers’ gender, age, and occupation affect consumers’ perception about store design and service quality affects store loyalty. This thesis is based on using quantitative analysis by questionnaires. Based on the results of hypothesis testing using multiple linear regression and simple linear regression, showed Physical Aspects, Reliability, Personal Interaction, Problem Solving, Policy affect positively toward Customer Satisfaction and Customer Satisfaction affect positively towards Store Loyalty