The Effects of Market Orientation
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THE EFFECTS OF MARKET ORIENTATION
ON THE SERVICE QUALITY OF PRIVATE BANKING INDUSTRY
IN PALEMBANG
by:
Diah Natalisa
Isnurhadi
Herianto Puspowarsito
David PE Saerang
Corresponding email: diah_natalisa@yahoo.com
Phone: 62 8127124837
Faculty of Economics, University of Sriwijaya, Palembang, Indonesia
In response to the world’s more competitive banking industry, private banks in Palembang focus more on professionalism, customers’ satisfaction, increased teamwork, and market-oriented performance. To implement those four principles, the management team of these private banks are committed to run their banking activities on good governance, to comply with government regulations, to improve their human resources and to develop more valuable products and services that are intended to satisfy customers’ needs. This study is aimed toward identifying how private banks in Palembang set the stages of their market orientation, which stage was dominant, and how this market orientation influenced the quality of their services. A multiple regression analysis was applied in this research. Its dependent variable was service quality (Y) and the independent variable was market orientation; (X) which was further divided in three dimensions: intelligent generation (X1), intelligent dissemination (X2), and responsiveness (X3). The research results show that there is a significant influence of the three independent variables on the service quality provided by the private banks in Palembang. The dominant dimension of the market orientation was responsiveness.
Keywords:
Market Orientation
Service Quality
Private Banking Industry.
1. INTRODUCTION
In the global economy, a bank plays a very crucial role. Banks emerge as an institution that is vital in financial traffic in modern economy specifically in distributing and allocating financial resources in a society. Banks function as financial intermediary, intermediating...
ON THE SERVICE QUALITY OF PRIVATE BANKING INDUSTRY
IN PALEMBANG
by:
Diah Natalisa
Isnurhadi
Herianto Puspowarsito
David PE Saerang
Corresponding email: diah_natalisa@yahoo.com
Phone: 62 8127124837
Faculty of Economics, University of Sriwijaya, Palembang, Indonesia
In response to the world’s more competitive banking industry, private banks in Palembang focus more on professionalism, customers’ satisfaction, increased teamwork, and market-oriented performance. To implement those four principles, the management team of these private banks are committed to run their banking activities on good governance, to comply with government regulations, to improve their human resources and to develop more valuable products and services that are intended to satisfy customers’ needs. This study is aimed toward identifying how private banks in Palembang set the stages of their market orientation, which stage was dominant, and how this market orientation influenced the quality of their services. A multiple regression analysis was applied in this research. Its dependent variable was service quality (Y) and the independent variable was market orientation; (X) which was further divided in three dimensions: intelligent generation (X1), intelligent dissemination (X2), and responsiveness (X3). The research results show that there is a significant influence of the three independent variables on the service quality provided by the private banks in Palembang. The dominant dimension of the market orientation was responsiveness.
Keywords:
Market Orientation
Service Quality
Private Banking Industry.
1. INTRODUCTION
In the global economy, a bank plays a very crucial role. Banks emerge as an institution that is vital in financial traffic in modern economy specifically in distributing and allocating financial resources in a society. Banks function as financial intermediary, intermediating...