The Effects of Service Quality on Customer Satisfaction and Its Implication on Company’s Performance: A Case study of Perumdam Tirta Alam Tarakan

Abstract

This study aims to identify and analyze the effects of service quality on customer satisfaction and its implication for PDAM Tirta Alam Tarakan. This quantitative research uses 3 variables: service quality, customer satisfaction, and performance. The population of this research is all customers of PDAM Tirta Alam Tarakan. By taking a sample of 96 samples using the purposive sampling technique, data collection was carried out by questionnaires distributed directly to respondents. The analytical method used is path analysis using SmartPLS 3.20 version to generate the model. The research results show the significant effect of service quality on customer satisfaction and PDAM Tirta Alam Tarakan performance. At the same time, it is found that customer satisfaction has no significant impact on the PDAM Tirta Alam Kota Tarakan Performance.