Building Customer Loyalty through Satisfaction: The Contributory Role of Service Quality in the Retail Sector
Abstract
Many Indonesian companies experience problems with customer loyalty that have a significant impact on the long-term survival of the company. These problems are related to inadequate service quality and low customer satisfaction levels. This study aims to test the model of the influence of service quality on customer loyalty with customer satisfaction as a mediating variable. This study uses a multivariate quantitative design. The population consists of consumers of Company X. The sampling technique used is quota sampling with a sample size of 200. The characteristics of the research sample are consumers of Company X aged between 18 and 60 years who have shopped at least three times at Company X. The research analysis technique uses SEM-PLS with SmartPLS 4.1.0.9. The results of the study show that: 1) There is a highly significant positive direct effect of customer satisfaction on customer loyalty, 2) There is a highly significant positive direct effect of service quality on customer satisfaction, 3) There is a direct positive and highly significant effect of service quality on consumer loyalty, 4) There is an indirect positive and highly significant effect of service quality on consumer loyalty through consumer satisfaction, 5) The research model has good model fit between the designed and tested research model and the empirical data.
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