ABSTRACT

This research aims at testing service recovery and complaint handling in building customer loyalty through customer satisfaction in transportation rentals. The sample consists of 90 respondents chosen using purposive sampling based on the population, namely, transportation rental users, which amounts to 912 customers. The analysis is done using structural equation modelling (SEM) with AMOS Version: 21 program application. The hypothesis testing results indicate that all hypotheses are confirmed. Service recovery and complaint handling have positive influences on customer satisfaction and customer satisfaction has a positive influence on customer loyalty.