FREIGHT FORWARDING COMPANY: THE EFFECT OF SERVICE FAILURE, RECOVERY, SATISFACTION, AND CUSTOMER LOYALTY

This study will examine the relationship between the impact of service failure and service recovery on customer satisfaction and loyalty. The research objective was to determine the effect of service failure can be up to customer loyalty. The object of this research is customers who use expedition services located in Jakarta. This research method uses quantitative methods using a questionnaire measuring instrument. The sampling technique used is simple random sampling. To analyze the data using SEM (Structural Equation Modeling) analysis tools with Lisrel. The results of this study conclude that, first, service failure affects service recovery. Secondly, service recovery affects customer loyalty. Third, service recovery affects customer satisfaction, and the last fourth of customer satisfaction also affects customer loyalty.

found that the severity of service failure had a negative impact on service recovery expectations in industrial airlines. Service recovery can occur from what has been done by a service provider in response to service failure (Weun et al., 2004). Service failure has a negative impact on satisfaction and customer service recovery (Santos and Boote, 2003). Thus, the research of Smith and Bolton (2002) stated that the important role of service recovery could consistently achieve satisfaction in a service failure situation. Thus, the hypothesis that can be formulated is as follows: H1: Service failure has an effect on service recovery.

Relationship between Service Recovery and Customer Loyalty
After a service failure, customers often expect the service provider to consider steps to ensure service recovery (Pai et al., 2019). Keiningham et al. (2014) found that the severity of service failure significantly impacted recovery expectations in industrial companies. Seon Hee. (2016) also found a significant relationship between failure severity level and service recovery. Sarkar Sengupta et al. (2015) proposed that recovery measures for service failure would positively affect customer behavior, strengthen the relationship between the customer and the company, and increase customer loyalty; on the contrary, improper service recovery will increase customer dissatisfaction.
Service recovery is required to restore customer loyalty from service failure (Fan et al., 2015).
Service recovery is the action of the service provider to resolve customer service failure complaints (Dong et al., 2008). Service recovery aims to turn customer dissatisfaction into a satisfied condition that can build company relationships with customers (Pai, Ko and Santos, 2019). From the literature above, the proposed hypothesis is as follows: H2: Service recovery has an effect on customer loyalty.

Relationship between Service Recovery and Customer Satisfaction
Customer satisfaction is an overall or global customer assessment of the extent to which service performance is in line with expectations (Anderson and Sullivan, 1993). Customer satisfaction can be described as a process. Currently, the most widely adopted process theory is "expectancy-disconfirmation," in which satisfaction can be viewed as exceeding customer expectations (Johnston, 2007). Researchers have also proven that there is positive satisfaction associated with disconfirmation (Loureiro, 2010).
In other words, customers receive more benefits than they expect. A transformation, their experience is greater than the level of satisfaction. The service recovery literature shows that the disconfirmation of this model is appropriate in the service recovery situation, which shows that customer satisfaction with service failure and recovery has an effect on service Adi Yudi Endang Ruswanti 182 satisfaction (Boshoff, 1997;Spreng and Page (2003). Based on the research of Christina et al.
(2019), when a customer experienced a service failure, the level of satisfaction would be higher after service recovery attempts were made than in a situation with no service failure occurred.
From the above literature, the hypothesis that is proposed is as follows: H3: Service recovery has an effect on customer satisfaction.

Relationship between Customer Satisfaction and Customer Loyalty
The fairness perceived by the customer can affect the level of customer satisfaction on the service recovery strategy (Kau and Loh, 2006). Service recovery serves as a key factor in obtaining customer satisfaction, increasing customer loyalty (Ajami et al., 2018). Research by Mccollough et al. (2000) shows that higher recovery performance will increase satisfaction support for service recovery.
Failure to perform a service can cause dissatisfaction on customers when the service is not repaired or restored (Andreassen, 2000). Thus, based on the result of the research conducted by Terry Kim et al. (2009), satisfaction and service recovery positively affect customer relationship variables, such as; trust, WOM (Word of Mouth), and intention to revisit. From the above discussion, the following hypothesis is obtained:

H4: Customer satisfaction has an effect on customer loyalty.
Based on the theoretical framework above, thus the research model can be described in It is a strategy that emphasizes the increase or absence of service problems. Controllability and its operational definition is an important role that can control and provide feedback.
The instrument used in measuring service recovery is based on Boulding et al. (1993), which includes 15 questions with the Customer-Directed Extra-Role Behavior indicator. Its operational definition is the extra behavior aimed at customers, distributive justice. Its operational definition is a decision taken with the service provided, interactional justice, and its operational definition is procedural justice.
The instrument used in measuring customer satisfaction is based on Li-hua (2012), which includes seven questions with the decision to choose an indicator and its operational definition is the decision to choose Overall satisfaction. Its operational definition is the overall satisfaction, or in general, it is making the right decision, and its operational definition is to make the right decision.

Adi Yudi Endang Ruswanti
The last instrument used in measuring customer loyalty as an endogenous variable refers to the instrument developed by Lin and Ding (2007), which includes six questions with the Word of mouth (WOM) indicator. Its operational definition is a word of mouth delivery, switching behavior, and its operational definition is a shifting behavior.
Before being used in actual research, the questionnaire instrument was tested on 30 respondents outside the population from the actual research sample. This trial was conducted to find out which instrument was made with good results because an instrument would affect the correctness level of the data.  (2014), the provision of the number of samples is five times the number of statements, and the number of samples in this study is 160 samples (32 x 5).

Discussion
This study intends to exploit the influence and relationship of each variable between service failure, service recovery, customer satisfaction, and customer loyalty. In the test of the first hypothesis (H1), it is found that service failure has an effect on service recovery in freight forwarding consumers. This means that service failure will be repaired by service recovery for the freight forwarding customers. Service recovery can occur from what has been done by service providers in response to service failures to customers (Weun, Beatty and Jones, 2004).
The existence of service recovery is a process to return aggrieved customers to be more satisfied with the organization after the service or product failed (Stratemeyer et al., 2014).
Service Recovery includes actions and activities that service providers adapt to "repair, modify, and recover from losses suffered" by the customer due to the service lack (Role et al., 2020). The results of this research support prior research from Ye and Luo (2016), which stated that service failure was found to affect service recovery positively.
This research has proven an effect from service recovery on customer loyalty in freight forwarding service consumers (H2). If complaints are not handled properly, it will result in consumer dissatisfaction, separation with the used service, and many consumers telling their disappointment to others. Thus the company will experience a loss of customers (Witt et al., 2008). Loyalty can refer to the passionate commitment held by customers to repurchase or repurchase a preferred product or service over and over again (Atuo and Kalu, 2017). Leow,

Adi Yudi Endang Ruswanti
(2015) also found that the service recovery process influenced customer satisfaction and customer loyalty with cases in the airline industry.
This research states that service recovery influences customer satisfaction in freight forwarding service consumers (H3). If the complaints of problems from the customers have been handled, then the customer will be satisfied with the use of the freight forwarding service. Loureiro (2010) also found that service recovery has a positive effect on customer satisfaction. Improving conditions for service recovery will provide opportunities to increase customer satisfaction (Morrisson and Huppertz, 2010). Service recovery must have a strategy that is considered effective in restoring the company's image to restore customer trust so that customers become loyal returns (Miyonga, 2019). Customers will receive more benefits than they expect from service recovery, which will increase customer satisfaction (Kim et al., 2009).
Thus, customer satisfaction influences customer loyalty in freight forwarding service consumers (H4). Customers who are satisfied with the treatment and services provided will become loyal customers to use the freight forwarding service. Customer satisfaction can provide benefits, including a more harmonious relationship between the service provider and customers, giving a good impression to consumers, and creating customer loyalty (

CONCLUSION
This study's main purpose is to empirically analyze the effect of several variables from service failure to customer loyalty in shipping companies. The business strategy that has been formed in management activities is declared capable of retaining customers to continue using the expedition services. The main contribution of this research is to find out how far customers who feel disappointed from using expedition services can feel satisfied and loyal from the services and services that have been provided.
Based on the results of this study, it is concluded that service failure influences service recovery, which means that a failure in service can be repaired by service recovery as the responsibility that freight forwarding service consumers have experienced. Service recovery has a positive effect on customer loyalty. If a customer has been provided a service recovery, the customer can become loyal and continue using the freight forwarding service.
In this case, the service recovery also has an effect on customer satisfaction. Customers who have already experienced service recovery from the freight forwarding service will be more satisfied. Thus, customer satisfaction has a positive influence on customer loyalty. The satisfaction experience felt by customers when using freight forwarding service can make the customers repurchase at the company and might become loyal customers.
The implication of this research is expected to be useful for freight forwarding companies in Jakarta, which can be used as an illustration of a good service flow from the start of experiencing service failure that can be repaired by service recovery, which can make these customers satisfied and loyal to the freight forwarding service companies. The implication of this research for researchers is to add the price variable as moderation. The objective for the formation of this price is to find out whether it can increase the relationship between these variables or even reduce it.
The limitations of this research can be considered for further research. This research used a questionnaire as a measuring tool to save time and effort. However, this questionnaire has a limitation in providing questions. There is a possibility that the respondent did not answer the questionnaire in real terms and only answered by filling out the questionnaire based on the ideal conditions expected and not the actual conditions that occurred. In addition to that, there is a limitation in distributing questionnaires that were only conducted in Jakarta city.
Further research can be carried out in different places with more respondents to improve the accuracy of the analysis data and add research variables as moderation, such as price, to obtain more robust data results and more various variables to study.