International Journal of Economics Development Research (IJEDR)
Vol. 6 No. 3 (2025): International Journal of Economics Development Research (IJEDR)

Customer Satisfaction and Local Economic Strength: Evidence from Village Credit Institution (LPD) in Banyuning Traditional Village, Buleleng

Ismayanti, Komang Kristina (Unknown)
Suarmanayasa, I Nengah (Unknown)
Meitriana, Made Ary (Unknown)



Article Info

Publish Date
21 May 2025

Abstract

This study explores the determinants of customer satisfaction within the Village Credit Institution (LPD) of Banyuning Traditional Village, Buleleng, Bali, as a reflection of local economic empowerment. Specifically, this research analyzes the influence of service quality, institutional image, and promotional strategies on customer satisfaction. A causal quantitative research design was employed, with the study population consisting of 901 customers of LPD Desa Adat Banyuning. Using probability sampling and the Slovin formula, 100 respondents were selected. The data collection technique involved a structured questionnaire, and the data were analyzed using multiple linear regression analysis. The findings indicate that service quality, image, and promotion collectively have a significant impact on customer satisfaction. Furthermore, each variable—service quality, institutional image, and promotion—was found to have a positive and significant individual effect on customer satisfaction. These results underscore the importance of improving service delivery, enhancing institutional image, and implementing effective promotional efforts to maintain customer trust and loyalty, particularly in the context of increasing competition among financial institutions in semi-urban village areas.

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Journal Info

Abbrev

ijedr

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

IJEDR focuses on economics, innovation, and investment. Dedicated to enhancing economics development a country, regional and the world in general. IJEDR invites papers on Economics field (Economic growth, Monetary and fiscal policy effect, Innovation practices, Innovation impact, Corporate finance, ...