THE EFFECT OF SERVICE FAILURE AND COMPLAINT HANDLING ON CUSTOMER TRUST AT PDAM TIRTANADI MEDAN DENAI BRANCH WITH CUSTOMER SATISFACTION AS AN INTERVENING VARIABLE
DOI:
https://doi.org/10.61402/sajmr.v3i4.462Keywords:
service failure, complaint handling, customer satisfaction, customer trust, PDAMAbstract
Water is a basic human need that must be met with quality service. PDAM Tirtanadi Medan Denai Branch, as the sole provider of clean water in its area, is required to provide optimal service to increase customer trust. This study aims to analyze the effect of service failure and complaint handling on customer trust, with customer satisfaction as an intervening variable.This associative study uses the entire population of PDAM Tirtanadi Medan Denai Branch customers who have complained at least once, totaling 16,925 customers as of August 2022. The sample was determined using Malhotra's formula, comprising 200 respondents selected through non-probability accidental sampling. Data analysis was conducted using PLS-SEM via the SmartPLS program.The results indicate that service failure has a significant negative effect on customer trust and satisfaction. Complaint handling has a significant positive effect on customer trust and satisfaction. Customer satisfaction has a significant positive effect on customer trust. Indirectly, service failure has a significant negative effect on trust through customer satisfaction, while complaint handling has a significant positive effect on trust through customer satisfaction.
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