THE EFFECT OF PERCEIVED JUSTICE ON CUSTOMER SATISFACTION AND LOYALTY

PT Bank BPD Bali is currently undergoing a transformation, which is necessary to improve competitiveness, especially in the field of service. This study aimed to determine the effect of distributive, procedural, and interactional justice on customer satisfaction, and the influence of customer satisfaction after complaints handling of customer loyalty PT Bank BPD Bali in Denpasar City. The calculation of researched sample based on proportionate stratified random sampling with the number of respondents was 100 people. The questionnaires gave to customers who have filed a complained to PT Bank BPD Bali in Denpasar City. Data analysis tool used in this research is Structural Equation Modeling (SEM). The results indicate distributive, procedural, and interactional justice had positive and significant impact on complaint satisfaction, which finally impact on customer loyalty. An effective customer complaints management can be applied through personal interaction and approach by the management of PT Bank BPD Bali by improving the performance and training of employees especially employees who handle complaints. Performance improvements are advised to prioritize direct action to customer complaints, such as represent related to product misperceptions and giving customers a chance to complain.