SERVICE RECOVERY FOR BANK CUSTOMER AFFECTED BY SKIMMING

Abstract

Banking is a financial servicecompany that provides deposit services and money loans to its
customer whether for private, public or business use. Thus, banking has always been followed by the
increasing number of customers with new demands that not only limited to the products offered by banks
but also on the quality of services. however, every banking company will surely experience service failure
once in a while. This couldcreate a negative impact on customer satisfaction. One effort that can be done by
banks is by doing service recovery. Service recovery includes distributive justice, procedural justice, and
interactional justice. This study aims to examine the relationship between distributive justice, procedural
justice, and interactional justice towards customer satisfaction. Then, the researchers also examine the
relationship between customer satisfaction towards trust and word of mouth (WOM). This research used one
of the state-owned banks in the TangerangBintaro Area as the research object. The population of the
research is every customer of the state-owned bank in TangerangBintaro Area that has experienced and
affected by skimming. With sampleamounted to 130 people, this study proceeded to the data testing and
analyzing process by using Confirmatory factor analysis and path analysis with Component Base, Structural
Equation Model (PLS-SEM) method using the Smart PLS program Version 3.3.2. The results of the study
showed that Service Recovery has a significant effect on Customer Satisfaction, Customer Satisfaction has a
significant effect on Trust, Customer Satisfaction has a significant effect on Word of Mouth.