Title: HOW SERVICE QUALITY SHAPES CUSTOMER SATISFACTION AND LOYALTY IN B2B CONSTRUCTION SERVICES: A PLS-SEM STUDY OF PT BRANTAS ABIPRAYA

Authors: Erwin Dwiyanto, Satria Wiga Trenggana, Dediek Isqak and Ahmad Syamil

Abstract: State owned construction enterprises face intensifying competitive pressure and budget efficiency constraints that necessitate effective customer retention strategies. Accordingly, this study aims to examine the effects of SERVQUAL dimensions on customer satisfaction and their subsequent impact on customer loyalty within the Precast and Equipment Division of PT BrantasAbipraya. Prior literature confirms the relevance of SERVQUAL in explaining customer satisfaction, yet evidence regarding the translation of satisfaction into loyalty in tender based B2B contexts remains inconclusive. This research adopts a quantitative explanatory design with a cross sectional survey strategy. The population comprises external customers of heavy equipment rental services, with convenience sampling applied to an indefinite population. Of 190 responses collected, 160 valid observations were analyzed using PLS SEM with SmartPLS 4. The findings indicate that all SERVQUAL dimensions exert positive and significant effects on customer satisfaction, with tangibles emerging as the strongest determinant, followed by reliability, empathy, assurance, and responsiveness. Customer satisfaction also has a positive and significant effect on customer loyalty. Future research is encouraged to employ longitudinal designs, multigroup analysis, and incorporate contextual variables such as pricing and tender mechanisms.

Keywords: SERVQUAL, Customer Satisfaction, Customer Loyalty.

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