EXPLAINING THE ROLE OF SERVICE QUALITY AND CUSTOMER VALUE ON CUSTOMER SATISFACTION

(1)

VOLUME 21 ISSUE 1 MARCH 2023 JURNAL APLIKASI MANAJEMEN

128

JAM

J u r n a l A p l i k a s i M a n a j e m e n J o u r n a l o f A p p l i e d M a n a g e m e n t

V o l u m e 2 1 I s s u e 1 M a r c h 2 0 2 3

2 1 | 1 | 2 0 2 3

R e c e i v e d N o v e m b e r ‘ 2 2 R e v i s e d N o v e m b e r ‘ 2 2 D e c e m b e r ‘ 2 2 J a n u a r y ‘ 2 3 A c c e p t e d M a rc h ‘ 2 3

EXPLAINING THE ROLE OF SERVICE QUALITY AND CUSTOMER VALUE ON CUSTOMER SATISFACTION

Tri Cahyono

Merpati Training Center, Surabaya, Indonesia Christian Herdinata

Eric Harianto

Universitas Ciputra, Surabaya, Indonesia Tikristini Olasode

Center for the Study of Economies of Africa, Nigeria

Abstract: The interest of this study is how to maintain service quality to achie- ve customer satisfaction. This study is expected to provide an understanding of the effect of service quality and customer value on customer satisfaction and its indicators. This study analyzes the factors influencing customer satisfaction in the aviation training and education industry. The studies were on service quality, customer value, and customer satisfaction. This research is descriptive and quantitative and focuses on analyzing factors that influence customer satisfaction with a survey method approach using a questionnaire. The population in this study were alumni of Merpati Training Centre students who had completed the initial FOO and Engineering education held by Merpati Training Centre. The study was conducted on 86 respondents with a non-random sampling technique using purposive sampling. The results of the study showed that the service quality has a significant effect on customer value, the service quality has a significant effect on customer satisfaction, the customer value has a significant effect on customer satisfaction, and the service quality has a significant effect on customer satisfaction through the intervening customer value. It showed that maintaining good relationships with customers, in this case, students, and improving the service quality provided will impact the customer value obtained by students. Ultimately the expected customer satisfaction is achieved in the aviation training and education industry. If the service quality, customer value, and customer satisfaction are met as expected, it will impact increasing the number of customers and growing in the future.

Keywords: Service Quality, Customer Value, Customer Satisfaction, Aviation Training Centre

CITATION

Cahyono, T., Herdinata, C., Harianto, E., and Olasode, T. 2023. Explaining the Role of Service Quality and Customer Value on Customer Satisfaction. Jurnal Aplikasi Manajemen, Volume 21, Issue 1, Pages 128-142. DOI: http://dx.doi.org/10.21776/ub.jam.2022.021.1.09.

I N D E X E D I N

D O A J - D i r e c t o r y o f O p e n A c c e s s J o u r n a l s

A C I - A S E A N C i t a t i o n I n d e x S I N T A - S c i e n c e a n d T e c h n o l o g y I n d e x

D i m e n s i o n s G o o g l e S c h o l a r R e s e a c h G a t e G a r u d a

I P I - I n d o n e s i a n P u b l i c a t i o n I n d e x

I n d o n e s i a n O N E S e a r c h

C O R R E S P O ND I N G A U T H O R

E r i c H a r i a n t o U n i v e r s i t a s C i p u t r a , I n d o n e s i a

E M A I L

e r i c . h a r i a n t o @ c i p u t r a . a c . i d

OPEN ACCESS

e I S S N 2 3 0 2 - 6 3 3 2 p I S S N 1 6 9 3 - 5 2 4 1

(2)

WWW.JURNALJAM.UB.AC.ID

129 INTRODUCTION

The global aviation industry plays an im- portant role in the global economy. Air transport supports 65.5 million jobs worldwide, provides

$2.7 trillion in economic activity and air travel, and accounts for about 35% of world trade by value Amankwah-Amoah (2020). According to the International Air Transport Association (IATA), due to Covid-19, losses will be estimated to exceed $118 billion after tax by 2020. Overall oper- ating income for the air transport industry has decreased by more than 60% in 2020. As many costs in the airline business, including aircraft fleet and skilled labor costs, are difficult to reduce, this decline in revenue has plunged the industry into losses. The high cargo business revenue in 2020 was due to the impact of capacity shortages, so it did little to offset the fall in passenger revenue (IATA, 2020). The currently unfavorable condition of the aviation industry is the reason and the right time for the training and education industry to support it by preparing educated and skilled personnel in the world of aviation.

The Covid-19 pandemic has changed the mindset, attitudes, and behavior of people worldwide, including in Indonesia. The Indonesian people must improve national resilience by improving the quality of strong human resources (HR). One strategy to improve the quality of Indonesian human resources is to prepare critical and creative human resources with a national perspective so that they can survive the limitations of the Covid- 19 era and are ready to enter new life rules through education (Widihastuti et al., 2020). Although it is still unclear how long the Covid-19 pandemic will end and the extent of its impact on the national economy. Therefore, the development of superior human resources can also experience obstacles, thus requiring breakthroughs to be realized and to adapt to new habits and accelerate recovery after Covid-19 pandemic (Makmur and Hadi, 2020).

One of them is the creation of awareness about the need for training and development of human resources to be able to control technology (Prasetiyo, 2020). To adapt to the current conditions and participate in preparing reliable human resources, it is necessary to conduct a study on service quality in the aviation training and education industry.

Merpati Training Center (MTC) is obliged to implement and support Government program

policies in the sector of development and the national economy in general, especially in fulfilling competent human resources by providing the education and training services in the aviation (MTC, 2020). MTC is well-developed as a flight training center in eastern Indonesia. MTC has the capability to conduct the Type Rating training for the Pi- lots, Flight Attendants, Flight Operation Officers (FOO), and Engineering for all types of aircraft operated by Merpati. Mandatory training for Pi- lots, Flight Attendants, FOO, and Engineering is vital to get profit. MTC also has the capability to carry out Air Transport Pilot License e-learning training. The decrease in the number of students is one of the reasons for choosing the object of study regarding the effect of service quality and customer value on MTC customer satisfaction.

Based on approval from Ministry of Trans- portation, MTC can carry out Flight Operation Of- ficer (FOO) Initial and FOO Type Rating training, Technic Type Rating, Pilot Initial and Pilot Type Rating, Aviation Security Initial, and Dangerous Good Initial. MTC can also carry out other training such as Airlines Staff, Flight attendants, and other general training. Then in 2017, MTC received approval to carry out initial technical training, namely the Basic Certificate or Basic Aircraft Ma- intenance Course (BAMC) with the A1.4. Airfra- me and Powerplant program. In 2019 MTC received approval to carry out Air Traffic Service Type Rating training. This study is limited to the service quality, customer value, and customer satisfaction and does not discuss competition in the aviation training and education industry, which has the sa- me approval as MTC. The number of graduates of MTC students decreased significantly starting in 2015. The decline in the number of students was also allegedly due to the declining quality of services, including the performance of training and funding. MTC continues to operate with customers from airlines and aircraft maintenance organizations and is supported by initial training for the public, namely Pilots, FOO, Engineering, and others. In order to save, some airlines built training centers to meet their own needs, so MTC changed its strategy by maximizing initial training for the public until now. MTC has vision to become first- choice aviation education and training institution in Indonesia, and to achieve this vision, and it is necessary to realize customer satisfaction. MTC

(3)

VOLUME 21 ISSUE 1 MARCH 2023

CAHYONO ET AL. (2023) JURNAL APLIKASI MANAJEMEN

130

must work hard to achieve the expected customer satisfaction by providing good quality service to students to create more value for students and students feel satisfied because their needs are met.

Previous research conducted by Tanjaya (2016) to know customer satisfaction with service quality can trigger value. The study's results reveal that service quality significantly affects customer satisfaction, with customer value as an intervening variable. Research to know service quality, customer value, and customer satisfaction was conducted by Candra and Juliani (2018), and the results of the study conclude that customer value has a significant effect on customer satisfaction. This study is expected to be a source of information or refer- ence for other studies in the future related to the effect of service quality and customer value on customer satisfaction. To support the study, it can add other variables and can also add competitors as a comparison. The study's benefit is providing input and suggestions for internal improvement.

According to technological advances, it is necessary to increase teaching abilities that are more varied and correct deficiencies by increasing service quality which impacts customer value obtained by students. In the end, the expected customer satisfaction is achieved. It will impact increasing the number of customers in the future and indirectly improve the reputation of graduates and MTC.

LITERATURE REVIEW

Lusiana and Harianto (2021) conducted study to determine customer preferences for tutoring services. The attributes studied were teacher, loca- tion, facilities, and method. The results showed the most critical attribute was learning method. Anot- her study aimed at exploring service quality indicators from a graduate perspective was conducted by Mattah et al. (2018). The study results reveal that graduate satisfaction is related to the quality of academic services, the quality of lecturer services, and the quality of program services. Sandada and Matibiri (2016) conducted a study to investigate the impact of perceived service quality and safety on customer satisfaction and how satisfaction and subsequent frequent flyer programs affect customer loyalty. The results of the study concluded that all dimensions of service quality significantly influencesatisfaction,andfurthersatisfac- tion encourages customer loyalty.

Seno (2021) conducted a study to know the effect of customer relationships on customer value through service quality, corporate image, and product quality and their effect on customer engagement. The results showed that service quality, corporate image, and product quality affect customer value. Research to investigate the impact of service quality dimensions on the customer satisfaction wasalsoconductedbyBoadietal.(2019).Thestu- dy's results reveal that the dimensions of service quality, namely empathy, reliability, responsive- ness, and tangibility, have a positive, direct, and significant impact on customer satisfaction. Rese- arch conducted by Redda et al. (2017) to know the causal relationship between the constructs of service quality, customer value, satisfaction, and loyalty. The results showed that service quality and customer value positively and significantly influ- enced customer satisfaction.

The purpose of education is to contain an understanding of the values that are good, noble, appropriate, true, and beautiful for life. The purpose of education has two functions: providing di- rection to all educational activities and as some- thing to be achieved by all educational activities.

The elements in the educational process involve various things: students, educators, educational in- teractions, educational goals, educational materials, educational tools and methods, and the educational environment (Elfachmi, 2015). Success in education and training process, according to Hen- drastomo (2015), cannot be separated from how to create graduates who are reliable and ready to use accordingtotheneedsoftheindustrialworld.The graduates need to be considered carefully because they are the target of evaluating an educational program. Graduates are at the forefront of study programs as a result of evaluating the quality of study programs when graduates work (Hasanah, 2019).

Equity Theory

According to Oliver and DeSarbo (1988), equity theory postulates that customers evaluate what they receive from a product or service aga- inst what they give in terms of monetary and non- monetary resources. Therefore, in equity theory, the more students view that the exchange between what they give and what they receive in return is adequate. They tend to have a better emotional response to educational institutions, in addition to

(4)

131 being offered high-quality services and proud of

the prestige of educational institutions, just like

customers in other service industries, students also expect fair deals (Teeroovengadum et al., 2019).

Source: Fieldwork (Nasse et al., 2020)

Figure 1. The Conceptual Framework The conceptual framework states that the

perception of equity that gives customer satisfaction and satisfaction is also a sign of equity. Non- perception of equity is a source of dissatisfaction, so previous studies suggest solutions with repairs, compensation, replacement, and consideration of customer needs and expectations. Current research suggests solutions with consideration of customer needs and expectations, hyper-personalization, re- activity, customer satisfaction, and recovery sur- veys (Nasse et al., 2020). So if MTC gives fair business practices to students by providing appropriate service quality, it will impact the expected customer satisfaction.

Service Quality

Service quality, according to Kotler (2015), is the totality of the characteristics of goods and services that showed their ability to meet customer needs, both obvious and hidden (Seno, 2021). In principle, service quality focuses on efforts to fulfill customer needs and desires and deliver accu- racyinbalancing thecustomerexpectations(Tjip- tono, 2019). According to Bressolles and Durrieu (2011), service quality is an essential form of the customer value (Candra and Juliani, 2018). Higher Education Performance-only (HEdPERF) is a determinant of service quality in the higher educati-

on sector (Mattah et al., 2018) and according to Firdaus there are 6 indicators in measuring service quality in education (Tanjaya, 2016) namely Non Academic Aspects are factors that indicate essential things that enable students to fulfill study ob- ligations and are related to the services of non-academic staff, Academic Aspects are factors that explain the responsibilities of academics, reputation is this factor showed the image of higher education institutions in a professional manner, Pro- grams Issues is a factor that emphasizes the impor- tance of programs or specializations that are offered with a flexible structure and there is a syllabus, understanding is a factor related to understanding the specific needs of students in terms of counsel- ing and health services, and access is a matter related to issues such as access to locations that are easytoreach(approachability),easytocontact(ea- se of contact), availability (availabitiy) and convenience (convenience).

Customer Value

AccordingtoZeithaml(1998),customerva- lue is a consumer's overall assessment of the utility of a product based on his perception of what is received and what is given (Tjiptono, 2019). The customer value, according to Butz and Goodstein (1996), is the emotional bond between the custom-

(5)

132

er and the producer after the customer uses product or service produced by the supplier and finds that the product provides added value (Tjiptono, 2019). According to Kasiri et al. (2017) that customer value describes the trade-off between the quality or benefits received by the customer and costs such as money, energy, and time. It encourages customers to evaluate, acquire and use the product (Candra and Juliani, 2018). Meanwhile, according to Carlos et al. (2006) and Sánchez et al.

(2006) that the custom value dimension consists of functional value, emotional value, and social value (Candra and Juliani, 2018). Perceived value influences customer satisfaction. Then the stronger the value of perceived value given by the company to customers will affect customer satisfaction (Fari- zan et al., 2018). Other indicators of the perceived value that should be the material evaluated are the functional value and emotional value (Jaya et al., 2018).

Customer value is the customer's perception of value where the company must consider the value in developing a product or service so that it is following what customers expect. The customer value dimension is used from the research of Can- dra and Juliani (2018), and according to Sweeney and Soutar, customer value can be measured using four dimensions (Tjiptono, 2019). Emotional Val- ue is a utility that comes from feelings or affective or positive emotions arising from using services, Social Value is the utility obtained from the ability of the product or service to improve the customer's social self-concept, Quality or Performance Value is the utility obtained from the perception of the expected performance of an expected product or service, and Price or Value of Money is the utility obtained from the product or service due to the re- duction of short-term costs and long-term costs.

Customer Satisfaction

According to Kotler and Keller (2012), the purpose of business organizations is to produce goods and services that can satisfy consumers. If consumers are satisfied, profits or profits from sel- ling the company's products and services can also be achieved based on the planned targets. Custom- er satisfaction is one of the best indicators of the future profits (Tjiptono, 2019). According to Kot- ler and Keller (2012), customer satisfaction is the level of one's feelings after comparing the perceiv-

ed performance or the results to their expectations (Tjiptono, 2019). According to the Mattah et al.

(2018), customer satisfaction is customer satisfaction with academic and non-academic services, Graduate satisfaction with academic facilities, and Graduate satisfaction with the program.

HYPOTHESIS DEVELOPMENT

The research result of Sandada and Matibiri (2016) showed that service quality has a significant influence on customer satisfaction. The study result of Teeroovengadum et al. (2019) showed that service quality has a significant influence on customer satisfaction. The research results of Red- da et al. (2017) showed that service quality has a significant influence on customer satisfaction. Ac- cording to Kottler and Keller, a company can be accepted if it can achieve a level of satisfaction by providing services that not only meet consumer expectations but exceed what consumers expect (Sandada and Matibiri, 2016). According to Love- lock and Wirtz, service quality is the main key to satisfying customers, and customer satisfaction can form customer loyalty (Sandada and Matibiri, 2016).

H1 : Service Quality has a significant influence on Customer Satisfaction.

The results of Tanjaya's research showed that customer value has a significant influence on customer satisfaction. The results of Candra and Juliani's (2018) research also showed that customer value has a significant influence on customer satisfaction. The research results of Redda et al.

(2017) also showed that customer value has a significant influence on customer satisfaction. Accor- ding to McDougall and Levesque (2000), Chen and Dubinsky (2003), and Yang et al. (2004) showed that perceived value is a major antecedent of customer satisfaction. And according to Caruana et al. (2000), Parasuraman (1997), and Gronroos and Ravald (1996), in general, that customer value is an antecedent to customer satisfaction (Bressol- les et al., 2015).

H2 : Customer Value has a significant influence on Customer Satisfaction.

The results of Candra and Juliani's (2018) research showed that the service quality variable has a significant influence on customer value var-

(6)

133 iable. The results of Seno's (2021) research show-

ed that the service quality variable has a significant influence on customer value. The research results of Redda et al. (2017) showed that the service quality variable has a significant influence on customer value. Meanwhile, Suhendra and Yulianto (2017) showed that there is a significant influence between service quality variables on customer value. According to Saraswati et al. (2016) showed that service quality has a significant effect on customer value (Seno, 2021).

H3 : Service Quality has a significant influence on Customer Value.

The results of the Tanjaya's (2016) research showed that the relationship between service quality has a significant influence on the customer sa-

tisfaction. If it is through customer value first, it will be more significant. According to Woodruff (1997), customer value has a considerable influence on customer satisfaction; there is a positive relationship between customer value and customer satisfaction, and customer value can perform its role as an intervening variable between perceived service quality and customer satisfaction (Tanja- ya, 2016). These results ultimately lead the researchers to conclude that from a managerial point of view and to increase customer value and satisfaction, they should focus on different dimensions of service quality, especially on the user convenience (Candra and Juliani, 2018).

H4 : Service Quality has a significant influence on Customer Satisfaction through Customer Va- lue.

Figure 2. Research Framework

METHOD

This research uses quantitative and statisti- cal procedures to test. The measuring instrument used in this study is the survey method using a questionnaire distributed to MTC alumni according to the specified criteria. The non-random sampling technique used is purposive sampling. The population in this research were all MTC alumni who had completed their education at MTC, which was held from 2019 to 2021, as many as 1330. Based on this population, non-probably sampling samp- les were taken using a purposive sampling technique, where the researchers determined the sampling by determining special characteristics that are following the research objectives so that they are expected to be able to answer research problems.

The purposive sampling technique is used with criteria based on reasons because of differences in service quality provided to students at MTC. The

research sample was 86 MTC alumni consisting of 42 alumni who had completed FOO Initial education and 44 alumni who had completed Engineer- ing education. The research instrument was made in the form of a questionnaire with questions. It used a Likert scale which is one of the most frequ- ently used attitude measurement techniques in influence analysis research. The Likert scale conta- ins five levels of answer preference with a choice of strongly disagree to agree strongly.

The variables in this study consist of three types of variables, namely, the independent variable is Service Quality (X), the intervening variable is Customer Value (Y), and the dependent variable is Customer Satisfaction (Z). This research uses a dataanalysisprocessusingstructuralequationmo- deling (SEM) with SmartPLS software. SEM is a multivariate technique that combines aspects of factor analysis and regression, allowing research-

Customer Satisfaction (Z) Service Quality (X)

Customer Value (Y)

(7)

134

ers to simultaneously test the relationship between measured variables and latent variables (assessment of measurement theory) as well as between latent variables (assessment of structural theory)

Hair (2017). The PLS-SEM analysis consists of two model evaluations, the evaluation of the outer model and the evaluation of the inner model (Nar- imawati, 2020).

Table 1. Definition of Operational Variables

Variable Operational Definition Indicator Service Quality

(X)

Based on Mattah et al. (2018), Higher Education Performance-only (HEdPERF) determines service quality in the higher education sector.

Based on Mattah et al. (2018) and Tanjaya (2016) that service quality indicators are:

1. Non-Academic Aspects 2. Academic Aspects 3. Reputation 4. Access 5. Program Issues 6. Understanding Customer Value

(Y)

Based on Butz and Goodstein (1996) that customer value is the emotional bond between customers and producers after customers use products or services produced by suppliers and find that these products provide added value (Tjiptono, 2019).

Based on Sweeney and Soutar (Tjiptono, 2019) and Candra and Juliani (2018) that customer value can be measured using four dimensions:

1. Emotional Values 2. Social Values

3. Quality or Performance Value 4. Price or Value of Money Customer

Satisfaction (Z)

Based on Kotler and Keller (2012) and Tjiptono (2019), customer satisfaction is the level of one's feelings after comparing the perceived performance or results to their expectations.

Based on Mattah et al. (2018) that the dimensions of customer satisfaction are:

1. Satisfaction of graduates with academic and non-academic services

2. Satisfaction of graduates with academic facilities

3. Satisfaction of graduates with the program

RESULTS

The sample used in the research was 86 alumni who graduated from MTC and had met the research criteria, with the details of the number of respondents who graduated from FOO as many as 42 and 44 who graduated from Engineering. The independent variable in this study is Service Qual- ity (X); with the study's results, the highest mean in SQ16 is 4.674, indicating that the average re- spondent chooses to agree with the question, while the highest standard deviation in SQ3 is 0.9777.

Based on the high value of the standard deviation, it can be concluded that the diversity of the sample is getting bigger or more heterogeneous. The intervening variable in this study is Customer Value

(Y); with the study's results, the highest mean on CV2 is 4.767, indicating that the average respond- ent chooses to agree with the question, while the highest standard deviation on CV12 is 0.9430.

Based on the high value of the standard deviation, it can be concluded that the diversity of the sample is getting bigger or more heterogeneous. The dependent variable in this study is Customer Satis- faction (Z); with the study results, the highest mean in CS6 is 4.674, indicating that the average re- spondent chooses to agree with the question, while the highest standard deviation is at CS4 at 0.7581.

Based on the high value of the standard deviation, it can be concluded that the diversity of the sample is getting more significant or more heterogeneous.

(8)

135 Source: Output SmartPLS, 2021

Figure 3. Algorithm Model The analysis of the outer model in the PLS

isusedtotestthevalidityandreliabilityofthecon- structs used in the structural research model. There are 2 kinds of validity tests: convergent and discri- minant. Variables with a loading factor below 0.7 are CS3, CV2, SQ1, SQ2, SQ3, SQ4, SQ6, and SQ7. SQ8, SQ10, SQ15, and SQ16 should be de- leted as invalid. Correction of Outer Loadings so that several indicators are eliminated, and a new loading factor is obtained > 0.7 to declare all variables valid.

Table 2. AVE

Variable Average Variance

Extracted (AVE) Rem ark Customer

Satisfaction

0,731 Valid

Customer Value

0,675 Valid

Service Quality 0,628 Valid

Source: Output SmartPLS (2021)

The AVE Customer Satisfaction variable is 0.731, the Customer Value variable is 0.675, and the Service Quality variable is 0.628, so all variables can be declared valid. The cross-loading value of each indicator is above 0.7 and is greater than the factor loading of other variables, so it can be said to be valid. Reliability testing can be tested

using Cronbach's alpha and composite reliability.

Cronbach's alpha value of the Customer Satisfac- tion variable is 0.907, the Customer Value variable is 0.959, and Service Quality variable is 0.915, all above the cut-off 0.7, so all variables in this study can be declared reliable.

Table 3. Cronbach's Alpha

Variable Cronbach's Alpha Remarks Customer

Satisfaction 0,907 Reliable

Customer

Value 0,959 Reliable

Service

Quality 0,915 Reliable

Table 4. Composite Reliability

Variable Composite

Reliability Remarks Customer Satisfaction 0,931 Reliable

Customer Value 0,964 Reliable

Service Quality 0,931 Reliable

The composite reliability value of the Cus- tomer Satisfaction variable is 0.931, the Customer

(9)

136

Value variable is 0.964, and the Service Quality variable is 0.931, all above the cut of 0.6, so the construct can be said to be reliable. The measurement of internal consistency is the structural model is met. The goodness of fit test based on data processing carried out using Smart PLS 3.2.9, the coefficient determination (R Square) is 0.832; it can be stated that the test results showed that the model as a whole is fit with the data or can reflect

reality and phenomena in the field, so the results ofthisstudycanbedeclaredvalidandreliable. Ba- sed on the calculation results obtained, a Q-Square value of 0.960. This showed that the enormous diversity of study data that can be explained by the study model is 96%. In comparison, the remaining 4% is explained by other factors that are outside this study model so from these results, the study model can be stated to have good goodness of fit.

Figure 4. Bootstrapping Model Coefficient determination (R-Square) value

of 0.832 for endogenous latent variables in structural model, indicating the effect of exogenous variables (which affect) endogenous variables (influ- enced), is included in the good category. The Q2 value for customer satisfaction variable is 0.832, and customer value variable is 0.762, which has a

value above 0, so it can be concluded that structural model can make good predictions. The f2 value of Customer Value - Customer Satisfaction patch is 0.536, and the Service Quality - Customer Value patch is 3.195 has a significant effect. The Service Quality - Customer Satisfaction path of 0.151 has a moderate effect as a predictor of latent variables.

Table 5. Direct Effect (Path Coefficients, T-Values, P-Value)

Path

Coefficients T- Statistics P-Values Keterangan H1 Service Quality -> Customer Satisfaction 0.326 3.193 0.001 Significant H2 Customer Value -> Customer Satisfaction 0.614 5.853 0.000 Significant H3 Service Quality -> Customer Value 0.873 32.522 0.000 Significant Source: Output SmartPLS (2021)

The data from the path of influence between customer value and customer satisfaction in the hypothesis 1 obtained the patch coefficients value

of 0.614, and it can be concluded that customer value positively influences customer satisfaction.

With a P-value of 0.000, it can be concluded that

(10)

137 customer value has a significant influence on cus-

tomer satisfaction. The first hypothesis can be accepted based on these results. The data from the path of influence between service quality and customer satisfaction in the hypothesis 2 obtained the patch coefficients value of 0.326, so it can be concluded that service quality positively influences customer satisfaction. With a P-value of 0.001, it can be concluded that service quality has a significant influence on customer satisfaction. The sec- ond hypothesis can be accepted based on these results. The data from the path of influence between

service quality and customer value in the hypothesis 3 obtained a patch coefficient value of 0.873, so it can be concluded that service quality positively influences customer value. With a P-value of 0.000, it can be concluded that service quality has a significant influence on customer value. The third hypothesis can be accepted. H1, H2, and H3 all have a P-Value <0.05, so all these hypotheses have a significant effect. The direct relationship between the independent variable, service quality, and the dependent variable, customer satisfaction, with a P-Value <0.05, can be significant.

Intervening Hypothesis Test

Table 6. Output Direct Effect and Indirect Effect (Path Coefficients, T-Values, P-Values)

Path Coefficients T-Statistics P- Values Keterangan

H4 Service Quality -> Customer Value ->

Customer Satisfaction 0,536 5,807 0,000 Significant

H4 has a P-Value <0.05, so this hypothesis has a significant effect. The relationship between the independent variable and the dependent variable through the intervening variable can be significant. The data in table 6 also showed that the effect of the indirect relationship between the independent variable service quality and the dependent variable customer satisfaction through the intervening variable customer value is more significant compared to the direct relationship between the independent variable service quality and the dependent variable customer satisfaction.

DISCUSSION

Service Quality and Customer Satisfaction The results at the data analysis stage that have been carried out showed that the evaluation of the structural model compiled using the collected field data has showedn a good contribution. The results of the descriptive analysis showed that the customer satisfaction of MTC graduates is included in the good category, where most of the respondents gave positive responses to their satisfaction.

The results of research on the effect of service quality on customer satisfaction proved significant, showed that indicators of service quality variables can affect customer satisfaction variables, where the service quality indicators are non-academic as-

pects, academic aspects, reputation, access, program issues, and understanding. Service quality indicators must be an essential concern for MTC by providing good service quality, will have an impact on customer satisfaction. The results of previous research conducted by Sandada and Matibiri (2016) showed that providing outstanding service quality will provide good customer satisfaction.

According to Teeroovengadum et al. (2019) that service quality has a significant influence on customer satisfaction because the technical aspects of servicequalityhaveastrongeffectoncustomersa- tisfaction. It is reinforced by the research conducted by Dewi (2020) that service quality provides an impetus for consumers to establish strong bonds with the company. Ties like these allow compani- es to carefully understand the expectations and needs of consumers in the long run. This causes com- panies to increase customer satisfaction by maximizing pleasant customer experience and minimi- zing or eliminating a less pleasant consumer experience.

MTC must pay attention to and provide service quality that is following customer expectations so that the expected customer satisfaction will be achieved, so the main thing that MTC must pay attention to is preparing a standardized curricu- lum, preparing materials and facilities as needed,

(11)

138

preparing experienced instructors, utilizing facilities that are integrated with aircraft maintenance facilities, provide enthusiasm and awareness of personal discipline, maintain good relations between all staff and students, prioritize safety first in every activity and maintain the reputation and image of MTC.MTC hopes that by paying attention to these essential things, customers will feel satisfied with the education that has been followed, satisfied with the teaching and learning process and the services provided, satisfied with the facilities provided in the teaching and learning process, and happy to get a skills license as a basis for work.

Thus the perceived service quality aligns with the expectations of students attending education and training at MTC.

Customer Value and Customer Satisfaction The research results on the effect of customer value on customer satisfaction proved significant, showing that indicators of customer value variables can affect customer satisfaction variables, where indicators of customer value variables are:

emotional value, social value, quality or performance value, price or value of money. According to the results of previous research conducted by Tan- jaya (2016) showed that customer value has a sig- nificantinfluenceonthecustomersatisfaction,and this is supported by research conducted by Candra and Juliani (2018), which proves that customer value is the beginning of the formation of customer satisfaction. The results reinforced that customer- perceived value is a signiﬁcant determinant of customer satisfaction (Ryu, 2012).

MTC must pay attention and provide customer value needed by customers, so that customer satisfaction is expected to be achieved, so the main thing that MTC must pay attention to for customers is to provide education that has been carefully coordinated, prepare high-quality standards in the teaching and learning process and is consistently maintained and provide cost quotes following the facilities provided and have more value than the costs incurred. MTC hopes that by paying attention to these essential things, customers will feel happy to participate in the education and training process until they graduate so that they get appre- ciation from their social environment, are satisfied with the educational programs that have been followed, satisfied with the high-quality standards in

the teaching and learning process and the suitabil- ity of the costs incurred, issued in the education and training process. Thus, customer satisfaction aligns with the expectations of students participating in education and training at MTC.

Service Quality and Customer Value

The resulresearch resultshe effect of service quality on customer value proved significant, showing the indicators of the service quality variable can affect the customer value variable. Service quality indicators must be a major concern for MTC byprovidinggoodservicequality, willhaveanim- pactonthecustomervalueobtainedbythecustom- er. The results of previous research conducted by Redda et al. (2017) found that the service quality significantly influencesved, customer value will increase. It is reinforced by the results of previous research conducted by Seno (2021) that service quality is indeed in the context of creating customer value and translating into customer value. MTC must pay attention and provide good service quality in the learning process, teaching programs following applicable regulations, and good service to customers so that it will impact the customer value that students get. The thing that MTC must pay attention to is that the education and training programs that students at MTC have attended must be able to increase their capabilities. After graduating from education and training at MTC, students get a skills license to reward their competence. Thus the customer value obtained is following the expectations of students who attend education and training at MTC.

Mediation Role of Customer Value

The research results on service quality on customer satisfaction through customer value as an intervening variable indicate that service quality has a more significant influence on customer satisfaction if through customer value as an intervening variable. According to the results of research conducted by Clemes et al. (2013) that service quality is the main determinant of satisfaction, and perceived value has a significant influence on the relationship between service quality and satisfaction. It is reinforced by the results of research conducted by Tanjaya (2016), where the relationship between service quality has a significant influence on customer satisfaction. If it is through customer

(12)

139 value first, it will be more significant. The results

indicate that perceived value mediates the relati- onshipbetweenservicequalityandcustomersatis- faction. The results also showed that after perceiv- edvalue,improvecustomersatisfactionshouldpri- oritize improving the quality of their services by Wong et al. (2020). MTC has provided good service quality, and it is hoped that it will affect the customer value that students get, where the impact that students get is that the education program that has been followed to increase personal capabilities and after graduation will get a skills license to reward their competence, so it is expected that alum- niofMTCgraduatesacceptedtoworkintheIndo- nesian Aviation industry. The customer value obtained is expected to be in accordance with the expectations of students participating in education and training at MTC. Thus customer satisfaction is expected to be achieved.

IMPICATIONS

After conducting this research, the researc- her has several suggestions that can be given to several parties. MTC alumni are expected to be able to develop networks and increase competitiveness according to their capabilities and competencies.

This is useful for building and maintaining MTC's reputation so that it can have a positive impact on students, alumni, and MTC. MTC has an Instruc- tor Development Program to improve the capabilities and competencies of Instructors. However, efforts are still needed from each MTC Instructor to improve teaching abilities that are more varied according to technological advances and the current social development of students.

MTC needs to improve the things that are lacking based on this research so that MTC's vision to become the first choice aviation education and training institution in Indonesia are achieved by improving good service quality to students as customers, so that by providing good service quality then will have a good impact on the customer value obtained by students, so that the customer value obtained is expected to be following the expectations of students participating in education and training at MTC, thus customer satisfaction is expected to be achieved and further increase the number of customers and be sustainable in the future. Utilizing the results of this research to impro-

ve quality management that has been implemented for the development of MTC organization in the future. Capability development, such as COMA Propeller training, COMA Compass Swing, and others, must continue to be carried out so that the MTC can keep up with the rapidly changing technology. MTC must improve its reputation by maintaining a good teaching and learning process, conducting periodic evaluations, equipping facilities with the planned budget, and increasing the capabilities and competencies of graduates so that all alumni are absorbed in work. The results showed that MTC has tried to provide the best, especially regarding service quality: non-academic aspects, academic aspects, reputation, access, program issues, understanding, and customer value: emotional value, social value, quality or performance value, price or value of money, so that the expected customer satisfaction is achieved. That needs to be continued and can be used as management consideration in managing MTC. Regarding service quality, the Ministry of Transportation as the regula- tor, must carry out a supervisory function to main- tainandensurethequalityofeducationalandtrain- ing institutions by conducting audits consistently so that the implementation of education and train- ing is following the applicable regulations.

RECOMMENDATIONS

The sample used in the study was less than planned because the alumni of MTC graduates had spread throughout Indonesia so it became an ob- stacle to contact respondents in the process of dis- tributing the questionnaires. The COVID-19 pandemic has also become a barrier for researchers in collecting questionnaire data because they cannot directly face-to-face with the respondents, so they need to use the google form. Several loading factor items in this study must be eliminated because they are invalid, thus affecting the results of data processing and becoming a limitation.

Further research can conduct research by adding other variables so that it can conduct more in-depth research on customer satisfaction. The independent variables are functional and transform- ative service quality while intervening variables can be added or replaced with an image. The dependent variable can be replaced or added with loyalty and customer engagement.

(13)

140

CONCLUSIONS

MTC has maintained good relationship with customers, in this case, students, and will improve the service quality provided so that it has an impact on the customer value obtained by students so that, ultimately the expected customer satisfaction is achieved. MTC will also make improvements based on the results of this research for the development and sustainability of MTC in the future.

Based on data analysis and discussion, researchers can conclude that service quality (X) has a significant influence on customer satisfaction (Z), customer value (Y) has a significant influence on cus- tomersatisfaction(Z),servicequality(X)hasasig- nificant effect on customer value (Y) and service quality (X) has a significant influence on customer satisfaction (Z) through customer value (Y).

REFERENCES

Amankwah-Amoah, J. 2020. Stepping Up and Stepping Out of COVID-19: New Challe- nges for Environmental Sustainability Poli- cies in the Global Airline Industry. Journal of Cleaner Production, 271, 123000.

Boadi, E. B., Wenxin, W., Bentum-Micah, G., Asare, I. K. J., and Bosompem, L. S. 2019.

Impact of Service Quality on Customer Sa- tisfaction in Ghana Hospitals: A PLS-SEM Approach. Canadian Journal of Applied Sc- ience and Technology, 7(3).

Bressolles, G. and Durrieu, F. 2011. Service Qual- ity, Customer Value, and Satisfaction Rela- tionship Revisited for Online Wine Web- sites. 6th AWBR International Conference.

Bressolles, G., Durrieu, F., and Deans, K. R. 2015.

An Examination of the Online Service-Pro- fit Chain. International Journal of Retail and Distribution Management.

Butz, J. and Goodstein, L. D. 1996. Measuring Customer Value: Gaining the Strategic Ad- vantage. Organizational Dynamic, Vol. 24 (Winter).

Candra, S. and Juliani, M. 2018. Impact of E-Ser- vice Quality and Customer Value on Custo- mer Satisfaction in Local Brand. Binus Bu- siness Review, 9(2), pp. 125–132.

Carlos, Garcia, S., Tena, A. M., and Monzonis, L.

2006. Customer Perceived Value in Bank- ing Services. International Journal of Bank Marketing, 24(5).

Caruana, Money, A. H., and Berthon, P. R. 2000.

Service Quality and Satisfaction: The Mo- derating Role of Value. European Journal of Marketing, Vol. 34, No. 11/12.

Chen and Dubinsky, A. J. 2003. A Conceptual Model of Perceived Customer Value in E- Commerce: A Preliminary Investigation.

Psychology and Marketing, Vol. 20, No. 4.

Clemes, M. D., Cohen, D. A., and Wang, Y. 2013.

Understanding Chinese University Stud- ents’ Experiences: an Empirical Analysis.

AsiaPac.J.Market.Logist,25,pp.391-427.

DOI: 10.1108/APJML-07-2012-0068.

Dewi, Liliana. 2020. Customer Loyalty, through Customer Satisfaction in Customer PT.

XYZ.JournalofAppliedManagement,Vol.

18, Number 1.

Elfachmi, A. K. 2015. Pengantar Pendidikan. Er- langga.

Farizan, Neoda et al. 2018. The Effect of Brand Identity, Brand Image, and Perceived Value on Loyalty with Customer Satisfaction as Mediation Variable for Customer Fresh Jui- ceBintaro.JournalofAppliedManagement, Vol. 17, Number 1.

Gronroos, C. and Ravald, A. 1996. The Value Co- ncept and Relationship Marketing. Europe- an Journal of Marketing, Vol. 30, No. 2.

Hair, J. F. 2017. A Primer on Partial Least Squ- ares Structural Equation Modeling (PLS- SEM). SAGE Publications, Inc.

Hasanah, U. 2019. Tingkat Kepuasan Pengguna Lulusan Program Studi Pendidikan Teknik Bangunan Universitas Negeri Jakarta di Bidang Non Pendidikan. DOI: https://doi.or g/10.21009/jepnsil.v9i1.12393.

Hendrastomo, G. 2015. Eksplorasi Tingkat Ke- puasan Pengguna Lulusan Program Studi Pendidikan Sosiologi. Jurusan Pendidikan Sosiologi UNY.

IATA, 2020. Annual Review 2020.

Jaya, I Putu Gede Trisna et al. 2018. The Mediat- ing Effect of Customer Satisfaction on Be- havioral Intentions for Ecotourism Eviden- ce from Bali. Journal of Applied Manage- ment, Vol. 16, Number 3.

Kasiri, K. T. G., C., M., S., and S. M., S. 2017.

Integration of Standardization and Custom- ization: Impact on Service Quality, Custo- mer Satisfaction, and Loyalty. Journal of

(14)

141 Retailing and Consumer Services, 35(Mar-

ch).

Kotler, P. 2015. Marketing Management.

Kotler, P. and Keller, K. L. 2012. Marketing Ma- nagement (14th ed). Prentice Hall Internati- onal, Inc.

Lusiana, I. and Harianto, E. 2021. Customer Prefe- rences for the Use of Tutoring Services.

KnE Social Sciences. DOI: https://doi.org/1 0.18502/kss.v5i5.8794.

Makmur, M. T. and Hadi, S. 2020. Strategi Pemu- lihan Perekonomian Terdampak Covid-19 melalui Perencanaan Pembangunan Sum- ber Daya Manusia Unggul Berbasis Industri 4.0. Majalah Media Perencana, 1(1), pp.

117–126.

Mattah, P. A. D., Kwarteng, A. J., and Mensah, J.

2018. Indicators of Service Quality and Sa- tisfaction among Graduating Students of a Higher Education Institution (HEI) in Gha- na. Higher Education Evaluation and Deve- lopment.

McDougall and Levesque. 2000. Customer Satisf- action with Services: Putting Perceived Va- lue into the Equation. Journal of Services Marketing, Vol. 14, No. 4-5.

MTC. 2020. RKAP.

Narimawati, U. 2020. Ragam Analisis dalam Me- tode Penelitian. Penerbit Andi, Yogyakarta.

Nasse, B., Ouedraogo, A., Takougang, A., and Zi- douemba,E.2020.EquityandCustomerSa- tisfaction in Relation to Product Quality:

An Evidence from Three Private Compani- es in Burkina Faso. International Journal of Management and Entrepreneurship Rese- arch, 2, pp. 344–352. DOI: https://doi.org/1 0.51594/ijmer.v2i5.172.

Oliver, R. L. and DeSarbo, W. S. 1988. Response DeterminantsinSatisfactionJudgments. Jo- urnal of Consumer Research, Vol. 14 No. 4.

Parasuraman, A. 1997. Reflections on Gaining Competitive Advantage through Customer Value. Journal of the Academy of Market- ing Science, Vol. 25, No. 2.

Prasetiyo, V. 2020. Belajar dari Dampak Krisis Pandemi Covid-19. In Olivia Fachrunnisa (Ed), Sustainabilitas Bisnis. Unissula Press.

Redda, E., Surujlal, J., and Leendertz, V. 2017.

Service Quality Customer Value Satisfacti- onandLoyaltyinanInternetBankingEn-

vironment.

Ryu, Kisang et al. 2012. The Influence of the Qua- lity of the Physical Environment, Food, and Service on Restaurant Image, Customer Pe- rceived Value, Customer Satisfaction, and Behavioral Intentions. International Jour- nal of Contemporary Hospitality Manage- ment, Vol. 24, Number 2.

Sánchez, Callarisa, Rodríguez, and Moliner. 2006.

Perceived Value of the Purchase of a Tou- rism Product. Tourism Management, 27(3), 394409.

Sandada, M. and Matibiri, B. 2016. An Investiga- tion into the Impact of Service Quality, Fre- quent Flier Programs, and Safety Percepti- on on Satisfaction and Customer Loyalty in the Airline Industry in Southern Africa. So- utheastEuropeanJournalofEconomicsand Business, 11(1), pp. 41–53.

Saraswati, D. S., Fauzi, A., and Kumadji, S. 2016.

The Influence of Service Quality on Custo- mer Value, Customer Satisfaction and Its Implications for Customer Loyalty (Survey on Alfamart Customers in Malang City).

Jurnal Bisnis dan Manajemen, Volume 3, Number 2.

Seno, B. 2021. The Influence of Customer Relati- onship Learning on Customer Value thro- ugh Service Quality, Company Image, and Product Quality and its impact on Custo- mer Engagement at PT East Java Regional Development Bank Tbk Surabaya Region.

Suhendra, G. and Yulianto, E. 2017. The Effect of Service Quality on Customer Value with Satisfaction as a Mediator Variable (Survey on Bukalapak.com Customers). Jurnal Ad- ministrasi Bisnis, 51(2).

Tanjaya, K. 2016. Analisa Pengaruh Perceived Se- rvice Quality terhadap Customer Satisfacti- on dengan Customer Value sebagai Varia- bel Intervening pada Program Manajemen Pemasaran Universitas Kristen Petra. Jur- nal Strategi Pemasaran, 3(2), pp. 9.

Teeroovengadum, V., Kamalanabhan, T. J. and Seebaluck, A. K. 2016. Measuring service quality in higher education: Development of a Hierarchical Model (HESQUAL)”. Qu- ality Assurance in Education, Vol. 24 No.

2, pp. 244-258.

Tjiptono, F.2019. Pemasaran Jasa.Yogyakarta:

(15)

142

Penerbit Andi.

Widihastuti, W., Purwantoro, S. A., and others.

2020. Mempersiapkan Sumber Daya Manu- siaKritis, Kreatif, danBerwawasanKebang- saan untuk Mencapai Ketahanan Nasional yang Tanguh di Era Pandemik Covid-19.

Jurnal Kajian Lemhannas RI, 8(2).

Wong, Elise et al. 2020. Using Online Travel Ag- ent Platforms to Determine Factors Influen- cing Hotel Guest Satisfaction. Journal of Hospitality and Tourism Technology, 11(3).

Woodruff, R. B. 1997. Customer Value: The Next Source for Competitive Advantage. Journal

of the Academy of Marketing Science, Vol.

25, No. 2, pp. 139–153.

Yang, Y., Wang, Y., and Lo, H.-P. 2004. An Inte- grated Framework for Service Quality, Cus- tomer Value, Satisfaction: Evidence from China'sTelecommunicationIndustry. Infor- mation Systems Frontiers, 6, pp. 325–340.

DOI: https://doi.org/10.1023/B:ISFI.00000 46375.72726.67.

Zeithaml,V.1998.ConsumerPerceptionsofPrice, Quality, and Value: A Means-Ends Model and Synthesis of Evidence. Journal of Mar- keting, Vol. 52, No.3 (July).