Key to customer loyalty by improving service quality and minimizing sacrifice

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The health industry has become one of the essential industries with high potential development and currently in a situation of intense competition due to globalization with high demands for health services. High and tight competitiveness must be a top priority to win the competition. The number of hospitals with excellent facilities and offer health services also increases competitiveness between hospitals. Hospitals as one of the health services must apply competent management values by upholding good governance and increasing customer satisfaction as the primary orientation in providing health services.

Customer satisfaction is a feeling of satisfaction or dissatisfaction felt by customers after comparing the performance of products/services received with customer expectations. Customers will be satisfied if the performance of health care providers can meet their expectations. The higher the satisfaction that is obtained by the customer will bring them to reuse health services at the same provider. The use of recurring services is what is called loyalty. Healthcare providers need to manage satisfaction to get high loyalty from customers.

Many studies suggest that customer satisfaction and customer loyalty are influenced by perceived value. Perceived value is the difference between the value enjoyed by the customer after using a product/service and the cost or sacrifice incurred to obtain the product or service. Perceived value is the customer’s perception of the quality, price and image or reputation of a product/service. Customer sacrifices can be described as perceived sacrifices. Perceived sacrifices consist of monetary and non-monetary aspects.

The perceived quality is not the actual quality of the product, but the customer’s assessment of the service as a whole after using the service and taking into account the sacrifices that must be incurred. The perceived value that can be achieved in the health care industry depends on the commitment of the health provider to provide excellent service. Providing quality health services and minimizing the sacrifices that customers must pay will be able to achieve optimal customer value.

The results of research conducted at Dr Soetomo Surabaya shows that there is a significant positive relationship between service quality and customer value perception. The higher the perceived quality, the higher the perceived value of hospital customers. Whereas the perception of customer sacrifice causes a significant adverse effect on the value of perception, which means higher perceived sacrifice will reduce the perceived value of hospital customers. The higher the customer sacrifice, the customer feels the perceived benefits are reduced.

The perceived value of customer shows overall assessment is based on the benefits and sacrifices of the healthcare customer. The high customer rating of the service will have an impact on high satisfaction as well, and it will increase loyalty to customers. Therefore it is essential to improve service quality and periodically review customer perceptions to maintain customer loyalty.

Author: Stefanus Supriyanto

Link: https://www.indianjournals.com/ijor.aspx?target=ijor:ijphrd&volume=10&issue=10&article=235 Florentina Joestandari, Stefanus Supriyanto, Joni Wahyuhadi, Ade Nurma Ruditya, Alexander Patera Nugraha. 2019. The Effect of Perceived Quality and Perceived Sacrifice to Perceived Value at Inpatient Installation of Dr. Soetomo Hospital Surabaya, Indonesia. Indian Journal of Public Health Research & Development Volume: 10, Issue: 10.

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