THE IMPACT OF SERVICE QUALITY ON CUSTOMER LOYALTY WITH MODERATING EFFECT OF CUSTOMER SATISFACTION IN DITLANTAS POLDA NTB

The purpose of this study are: to determine the significance impact of the Quality Service on Customer Loyalty; to determine the significance impact of Quality Service on customer loyalty through moderation of Customer Satisfaction at Ditlantas Polda NTB. The research method is a causal research. The data collection is done by using questionnaires given to 150 respondents. The analysis of data is using Moderated Regression Analysis (MRA). The result showed that (1) Quality Service has a positive and significant impact on Customer Loyalty, (2) Quality Service has a significant impact on Customer Loyalty through moderation of Customer Satisfaction at Ditlantas Polda NTB. Researcher recommended to policy holders to take attention on the Quality Service and the level of Customer Satisfaction about the product. Quality Service could be increased by upgrading resources to new technology, involving BABINKAMTIBMAS and also socialization to school around NTB province, this method seems to be very effective because it could be touched people directly. Ditlantas Polda NTB needs to start utilizing print and electronic media to introduce their product with the principle of regulation and law which exist in Indonesia so that customers could know and understand the products well.

Ditlantas Polda NTB as one of Indonesian official had moved from their old paradigm as a law enforcement to a new paradigm a guard and service to community. This new paradigm took benefit from the trust of community to the police. Hence, Ditlantas Polda NTB (as nonprofit organization) is now struggling hard to initiate attractive and novel products and services for attracting new customers. And those already have large number of customers try to keep them at every cost. Thus the main purpose is not to get new customers only, but also retain the old ones and this is only possible when the customers are loyal towards their service provider. Kumar et al (2009) stated that high quality of service will result in high customer satisfaction and increases customer loyalty. Heskett et al (1997) argued that profit and growth are stimulated primarily by customer loyalty and loyalty is a direct result of customer satisfaction. Parasuraman et al (1988) and Naeem and Saif (2009) found that customer satisfaction is the outcome of service quality. The results appear to prove the links between customer Satisfaction, service quality, and customer loyalty. In Indonesia, no study has yet investigated these relations especially in Police Area. The purpose of this study is to fill this gap. A review of literature has been conducted to explore these associations and then a research methodology has been proposed. The objectives of the study are as follows:  To find the effect of service quality to customer loyalty in the Ditlantas Polda NTB (as non profit organization) of Indonesian Police Department;  To find the effect of service quality to customer loyalty with customer satisfaction as a moderating variable.

LITERATURE REVIEW
Singh and Sirdeshmukh (2000) recommended the customer loyalty as "the market place currency of the twenty-first century". Ndubisi (2005) and Pfeifer (2005) pointed out that the cost of serving a loyal customer is five or six times less than a new customer. This statement shows the importance of customer loyalty. Walsh et al. (2005) point out that it is better to look after the existing customer before gain new customers. Gee et al. (2008) stated the recompense of customer loyalty are as: The service cost of a loyal customer is less than new customers. They will pay higher costs for a set of products; and for a company, a loyal customer will proceed as a positive word-of-mouth marketing cause. According to Foss and Stone (2001), customer loyalty transmits to what customers think and do (or try to do). Most customer loyalty experts would agree that loyalty is best defined as a state of mind, a set of attitudes, desires beliefs. Loyalty is urbanized by approaches which emphasize and develop a positive state of mind and the associated behaviors. Loyal customers are more liable to give information to the service provider (as they trust the service provider and imagine from the service provider to use the information with prudence and to their benefits). Managing loyalty is essential because it means not only managing behavior but also managing a state of mind. Dick and Basu (1994) identified the two dimensions of loyalty (relative attitude and repeat patronage behaviour) and four categories of loyalty: loyalty (positive relative attitude, high repeat patronage), latent loyalty (positive relative attitude, but low repeat patronage), spurious loyalty (low relative attitude, high repeat patronage), and no loyalty (low on both dimensions).
Conceptualization of service quality should contain both the service delivery process (Parasuraman et al., 1985) as well as the service outcomes (Lehtinen and Lehtinen, 1991).
The standard of the Product/Service is actually effortlessly looked at as compared to the Service quality; the real reason for the issue with survey from the service quality is actually that this assistance is composed of odd traits; previous studies have estimated quite a few means of calculating the grade of the Service Quality. Parasuraman et al (1988) features planned the particular famous type intended for calculating the Service quality, called the particular servqual type. This kind of measures the particular variation which usually arises amid what the shoppers ready for and also what he/she perceives by a few variables which are tangibles, trustworthiness, and peace of mind, responsiveness and also sympathy. Grönroos (2000) at a later date contended that we now have 7 variables for you to comprehend the particular Service quality and the ones tend to be: expertise and also Professionalism and trust, conduct and also mind-set regarding staff members, overall flexibility and also convenience, dependability and also trustworthiness, restoration regarding companies, extent regarding service, trustworthiness also popularity. When a customer get more service quality what he/she is expecting then that customer would become more loyal toward the company in this way that customer working also as a marketer in way doing positive word of mouth marketing. . This is also supported in the context of financial services. For example, Jamal and Naser (2002) found that core and relational aspects of bank service quality appeared to be linked to customer satisfaction. Karatepe et al. (2005) demonstrated that the customers of retail banks with favorable perceptions of service quality had higher satisfaction. Siu and Mou (2005) also found that service qual-ity dimensions in Internet banking, such as credibility, problem handling, and security enhanced customer satisfaction. The weight of evidence in this research stream suggests that service quality is an antecedent to customer satisfaction.
A careful assessment of the relevant literature also demonstrates that customer satisfaction mediates the impact of service quality on loyalty. Although there are empirical studies, which demonstrate that customer satisfaction fully mediates the relationship between service quality and loyalty (Ibánez et al. 2006;Lenka et al. 2009), there is considerably more empirical research for the partial mediating role of customer sat-isfaction. For example, in a study of retail bank customers in the Netherlands, it was reported that bank service quality influenced loyalty both directly and indirectly via satisfaction (Bloemer et al. 1998). The same study also reported that two service quality dimensions, such as reliability and efficiency were directly linked to customer loyalty. Cronin et al. (2000) demonstrated that satisfaction had a partial mediating role in the relationship between service quality and behavioral intentions among the customers of different service settings (e.g. entertainment, fast food) in the USA. Choi et al. (2004) found similar results among the South Korean health care consumers. Bei and Chiao (2006) found that satisfaction partially mediated the effect of perceived service quality on loyalty among the Taiwanese bank customers. Such results were also reported for the customers of retail banks in Iran (Mosahabetal.2010).
In this study, it is proposed that customer satisfaction partially mediates the effects of service quality dimensions on loyalty. Since this study is conducted with the customers of retail banks in Northern Cyprus, it uses the previously mentioned 20-item four-dimensional scale including service environment, interaction quality, empathy, and reliability.
H 2 : Customer satisfaction will mediate the effects of quality service on customer loyalty.

METHODS OF RESEARCH
Convenience sampling technique was used to collect data. Data was collected from the General public of cities i.e. Police Region of West Nusa Tenggara, Indonesia. In this study, descriptive statistics correlation and moderating regression analysis (MRA) were applied. Questionnaires were distributed among 150 Respondents and 150 Questionnaires were received out of which 150 were useable, the response rates from respondents were 100 %. In this study both Male & Female were considered as Respondents whereas other demographics like age, Education, time visited to Police Office also evaluated.
All variables were measures with 5 point Likert scale (Sugiyono, 2011: 32), which categories each variable as follows: Five items measurement was developed by Jumiati, Sasmita, Norazah, & Mohd Suki, (2015),"Young consumers' insights on brand equity", International Journal of Retail & Distribution Management. One sample item included-"I regularly refer this particular company through the social media." The Cronbach alpha reliability of this scale was .885.
Mean of customer loyalty were 3.9 as shown in table 2 was in Loyal category, hence it can be conclude that customers have high loyalty (as shown in table 1) toward product/service of Ditlantas Polda NTB that they have chosen.
Five items measurement was developed by Brady, & Cronin, (2001). Some new thoughts on conceptualizing perceived service quality: A hierarchical approach, Journal of Marketing. One sample item included-"Overall, I'd say the quality of my interaction with the provider's employees is excellent." The Cronbach alpha reliability of this scale was .692.
Mean of quality service were 3.7 as shown in table 2 was in Effective category, hence it can be conclude that customers have good perception (as shown in table 1) toward product/service of Ditlantas Polda NTB that they have chosen.
Five items measurement was developed by Spreng, MacKenzie, and Olshavsky, (1996), "A Reexamination of the Determinants of Consumer Satisfaction", Journal of Marketing. One sample item included-"Entirely fulfils my needs." The Cronbach alpha reliability of this scale was .822.
Mean of customer satisfaction were 3.8 as shown in table 2 was in Satisfy category, hence it can be conclude that customers have satisfied (as shown in table 1) toward product/service of Ditlantas Polda NTB that they have chosen.
In order to formulate model analysis, this study was employed a Moderated Regression Analysis (MRA) or test of interaction which is formed special application of multiple linear regression where on their regression formulae involve interaction variable (multiplication two or more independent variable).
There are two formulations in this moderating research: CL = a + b1QS (1) CL = a + b1QS + b2CS + b3QSCS (2) Data was analyzed by SPSS 20.0 which two steps:  Simple regression analysis were used for hypothesis 1;  Multiple regression analysis were used for hypothesis 2.

RESULTS AND DISCUSSION
In the first step analysis by simple regression analysis found that Quality service has positive effect to customer Loyalty which is R 2 = 0.411 and beta coefficient = 0.749 with significanty 0.000. According to the first hypothesis of this study "Quality service has a positive effect to Customer Loyalty in Ditlantas Polda NTB". Conceptualization of service quality should contain both the service delivery process (Fullerton & Taylor, 2000;Parasuraman et al., 1985) as well as the service outcomes (Lehtinen and Lehtinen, 1991). The standard of the Product/Service is actually effortlessly looked at as compared to the Service quality; the real reason for the issue with survey from the service quality is actually that this assistance is composed of odd traits; previous studies have estimated quite a few means of calculating the grade of the Service Quality.
In the second steps analysis of MRA found that Quality service has positive effect to customer Loyalty through customer satisfaction moderation which is R 2 = 0.603 and with significanty 0.000. According to Ghozali (2005) stated that becoming higher the independent variable than will be effected to become higher the independent variable. This was proven in this research that the effect of quality service to customer loyalty before and after moderation by customer satisfaction, which R 2 = 0.411 to R 2 = 0.603. The result of MRA as shown in figure below:  Those result showed that quality service has positive and not significant to customer loyalty with beta = 0.302 amd significant level more than 0.05. Customer Satisfaction has positive and significant to customer loyalty with beta = 0.769 amd significant level less than 0.05. Quality service has negative and not significant to customer loyalty by customer satisfaction moderation with beta = -0.027 amd significant level more than 0.05. Ghozali (2005), stated that if B 2 significant while B 3 not significant than moderate variable become Predictor Moderation Variable. It means that role of moderate variable as a predictor variable (dependent) in the form of their correlation. Hence, in this research found that customer satisfaction only a Variable predictor or more to be an independent variable than moderation variable.
According to the second hypothesis of this study "Customer satisfaction will mediate the effects of quality service on customer loyalty". In the marketing literature the Customer Satisfaction is very important result. This term link methods those are ended with purchase and consumption with post purchase events such as attitude change, repeat purchase, and brand loyalty (Surprenant and Churchill, 1982). This definition is supported by Jamal and Naser (2003) and Mishra (2009). If we say that customer satisfaction also leads to increase the profit as well as market share of the company and also Customer Loyalty. The result that customer satisfaction mediates the impact of service quality on loyalty is consonant with the other empirical studies in the services marketing literature. For instance, in a study of retail bank customers in the Netherlands, Bloemer et al. (1998) demonstrated that service quality affected loyalty directly and indirectly via satisfaction. Similar findings were also reported in the works of Bei and Chiao (2006) in Taiwan, Cronin et al. (2000) in the USA, Karatepe et al. (2005) in Northern Cyprus, and Mosahab et al. (2010) in Iran. On the other hand, the results suggest that customer satisfaction fully mediates the effect of reliability on loyalty. That is, reliability influences loyalty only via customer satisfaction. This finding can be attributed to Bagozzi's (1992) appraisal → emotional response → behavior framework. Specifically, it suggests that customers evaluate past, present and future outcomes based on past encounters by a focal company and its particular competitors (Babakus et al. 2004). Such outcomes lead to an emotional reaction (satisfaction or dissatisfaction), which in turn directs behaviors (loyalty).

CONCLUSION
This study gives results that Quality Service has positive effect both directly or moderating through customer satisfaction to customer loyalty in Ditlantas Polda NTB. This research provides theoretical implications that support existing theories and support previous research. For organizations or institutions, it is expected to always try to improve quality service by keeping up to date in technology and skill of their employee.
The research suggestion is to policy holders to take attention on the Quality Service and the level of Customer Satisfaction about the product. Quality Service could be increased by upgrading resources to new technology, involving BABINKAMTIBMAS and also socialization to school around NTB province, this method seems to be very effective because it could be touched people directly. Ditlantas Polda NTB needs to start utilizing print and electronic media to introduce their product with the principle of regulation and law which exist in Indonesia so that customers could know and understand the products well.