THE EFFECT OF SERVICE QUALITY AND PROMOTIONAL PRICING ON CONSUMERS DECISION TO APPLY MORTGAGE LOAN Iman Sidik Nusannas, Ratih Hurriyati, Mokh Adib Sultan
School of Postgraduate Studies, Indonesia University of Education, Bandung.
Abstract
Mortgage loan helps consumer to buy a house by installment and helps the bank to increase their loan to deposit ratio. It covered both sides; consumer and the bank. Although mortgage loan gives the advantage to both of them, the study regarding consumer’s decision to apply mortgage loan in west java, published in international journal are not available yet. This study is to examine the effect of service quality and promotional pricing on consumer’s decision to apply mortage loan at private bank arround Kiaracondong West Java. The model has one dependent variable that is Consumer’s purchase decision and two independent variables; service quality and promotional pricing. The statistical method used to examine the research question is multiple linear regression analysis. Estimation of model used SPSS version 20 . Data collected from questionares distributed to 46 aplicant who were the loan approved during promotion program. The study indicated that service quality has a positif and significance effect on consumer’s decision to apply mortgage loan, while promotional pricing has no significance effect on consumer’s decision to apply mortgage loan.
Keywords: service quality, promotional pricing, decision to apply mortgage loan
