THE EFFECT OF SERVICE AND PRODUCT QUALITY ON CUSTOMER SATISFACTION AT A PRIVATE COMMERCIAL BANK BRANCH IN BATAM
Keywords:
Service Quality, Product Quality, Customer Satisfaction, Commercial Banking, Multiple Linear RegressionAbstract
Purpose: Intensifying competition among commercial banks makes service quality and product attractiveness decisive factors in retaining customers. This study analyzes the effect of service and product quality on customer satisfaction at a private commercial bank branch in Batam.
Methods: A quantitative causal design was used, with multiple linear regression applied to a sample of 263 active customers selected through simple random sampling using the Slovin formula at a five-percent error margin.
Findings: Service quality has a positive and significant partial effect on customer satisfaction (t = 7.993 > 1.652, Sig. = 0.000), product quality also has a positive and significant partial effect (t = 6.358 > 1.652, Sig. = 0.000), and the two variables jointly explain 71.2 percent of the variance in customer satisfaction (F = 320.903 > 3.04, Sig. = 0.000; R-squared = 0.712).
Originality/value: The study contributes branch-level regression evidence, still limited in the Indonesian private-banking segment, indicating that satisfaction strategies should treat frontline service delivery and product design as complementary levers rather than substitutes, offering practical guidance for branch managers seeking to strengthen customer retention.
Received: 26/05/2026 Revised: 29/06/2026 Accepted: 30/07/2026
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