The role of customer satisfaction in mediating the influence of service quality and perceived value on brand loyalty

https://doi.org/10.21744/irjmis.v8n3.1786

Authors

  • Anak Agung Diah Tarama Devi Faculty of Economics and Business, University of Udayana, Bali, Indonesia
  • Ni Nyoman Kerti Yasa Faculty of Economics and Business, University of Udayana, Bali, Indonesia

Keywords:

service quality, perceived value, customer satisfaction, brand loyalty

Abstract

The study investigates how service quality and perceived value influence brand loyalty of Lion Air customers in Denpasar and how these relationships are mediated by customer satisfaction. The research was conducted in Denpasar, Bali. Sample size of 128 respondents was collected through a questionnaire and has been tested for its validity and reliability. The analysis technique used is Structural Equation Model (SEM) and using Smart PLS 3.0. The results showed that service quality, perceived value and customer satisfaction had a positive and significant effect on brand loyalty of Lion Air customers in Denpasar. Another result is that customer satisfaction is able to partially mediate the relationship between service quality and perceived value with brand loyalty of Lion Air customers in Denpasar. This research is expected to be empirical evidence for future research and be able to enrich the development of marketing management science related to service quality, perceived value, customer satisfaction and brand loyalty. The practical implication in this research is that Lion Air customer loyalty can be created when consumers feel that the quality of service provided by Lion Air meets their expectations, feels added value when using Lion Air, and feels right and satisfied when using Lion Air.

Downloads

Download data is not yet available.

References

Adnyani, D. A. M. E. S., & Sukaatmadja, I. P. G. (2019). Peran perceived risk dalam memediasi pengaruh perceived quality terhadap perceived value. E-Jurnal Manajemen, 8(12), 7072-7092.

Ahmed, Z., Rizwan, M., Ahmad, M., & Haq, M. (2014). Effect of brand trust and customer satisfaction on brand loyalty in Bahawalpur. Journal of Sociological Research, 5(1), 306-326.

Amelia, F. (2019). Pengaruh Customer Perceived Value, Customer Satisfaction, Dan Product Innovation Terhadap Customer Loyalty (Studi Kasus Rebranding All New Sour Sally). Jurnal Manajemen Bisnis dan Kewirausahaan, 3(1).

Ariyanti, K. (2014). Pengaruh persepsi nilai dan persepsi resiko terhadap niat beli kosmetik organik. Jurnal Ilmu Manajemen (JIM), 2(4).

Ashraf, S., Ilyas, R., Imtiaz, M., & Ahmad, S. (2018). Impact of service quality, corporate image and perceived value on brand loyalty with presence and absence of customer satisfaction: A study of four service sectors of Pakistan. International Journal of Academic Research in Business and Social Sciences, 8(2), 452-474.

Atmaja, G. K. K., & Yasa, N. N. K. (2020). The Role of Customer Satisfaction in Mediating the Influence of Price Fairness and Service Quality on the Loyalty of Low Cost Carriers Customers in Indonesia. International Research Journal of Management, IT and Social Sciences, 7(5), 149-159.

Budiarta, S. I., & Fachira, I. (2017). Customer loyalty: the effects of service loyalty and the mediating role of customer satisfaction study case: PT Sabda Alam hotel. Journal of Business and Management, 251.

Carolina, D., & Yasa, N. N. K. (2019). The Effect of Customer Relationship Management on the Satisfaction to Build Customers’ Loyalty (Study Case of Go-Jek’s Transportation Service Users). Economic Research, 3(5), 9-20.

Chen, C. M., & Liu, H. M. (2017). Exploring the impact of airlines service quality on customer loyalty: Evidence from Taiwan. International Journal of Business and Management, 12(5), 36-50.

Chen, S. C. (2015). Customer value and customer loyalty: Is competition a missing link?. Journal of retailing and consumer services, 22, 107-116. https://doi.org/10.1016/j.jretconser.2014.10.007

Chinomona, R., Masinge, G., & Sandada, M. (2014). The influence of e-service quality on customer perceived value, customer satisfaction and loyalty in South Africa. Mediterranean Journal of Social Sciences, 5(9), 331.

Cronin Jr, J. J., Brady, M. K., & Hult, G. T. M. (2000). Assessing the effects of quality, value, and customer satisfaction on consumer behavioral intentions in service environments. Journal of retailing, 76(2), 193-218. https://doi.org/10.1016/S0022-4359(00)00028-2

Demirgünescedil, B. K. (2015). Relative importance of perceived value, satisfaction and perceived risk on willingness to pay more. International Review of Management and Marketing, 5(4).

Diputra, I G.N.A.W. & Yasa, Ni Nyoman Kerti. (2021). The Influence Of Product Quality, Brand Image, Brand Trust On Customer Satisfaction And Loyalty, American International Journal of Business Management, 4(1), 25-34.

El-Adly, M. I. (2019). Modelling the relationship between hotel perceived value, customer satisfaction, and customer loyalty. Journal of Retailing and Consumer Services, 50, 322-332. https://doi.org/10.1016/j.jretconser.2018.07.007

Ermayanti, Z., Apriliani, E., Nurhadi, H., & Herlambang, T. (2015, October). Estimate and control position autonomous underwater vehicle based on determined trajectory using fuzzy Kalman filter method. In 2015 International Conference on Advanced Mechatronics, Intelligent Manufacture, and Industrial Automation (ICAMIMIA) (pp. 156-161). IEEE.

Famiyeh, S., Asante-Darko, D., & Kwarteng, A. (2018). Service quality, customer satisfaction, and loyalty in the banking sector. International Journal of Quality & Reliability Management.

Fatima, T., Malik, S. A., & Shabbir, A. (2018). Hospital healthcare service quality, patient satisfaction and loyalty. International Journal of Quality & Reliability Management.

Ghozali, I. (2014). SEM Metode Alternatif dengan menggunakan Partial Least Squares (PLS). Semarang: Badan Penerbit Universitas Diponegoro.

Ha, J., & Jang, S. S. (2010). Effects of service quality and food quality: The moderating role of atmospherics in an ethnic restaurant segment. International journal of hospitality management, 29(3), 520-529. https://doi.org/10.1016/j.ijhm.2009.12.005

Hapsari, R., Clemes, M. D., & Dean, D. (2017). The impact of service quality, customer engagement and selected marketing constructs on airline passenger loyalty. International Journal of Quality and Service Sciences.

Hapsari, R., Clemes, M., & Dean, D. (2016). The mediating role of perceived value on the relationship between service quality and customer satisfaction: Evidence from Indonesian airline passengers. Procedia Economics and Finance, 35, 388-395. https://doi.org/10.1016/S2212-5671(16)00048-4

Iskandar, D., Nurmalina, R., & Riani, E. (2015). The effect of service, product quality, and perceived value on customer purchase intention and satisfaction. Indonesian Journal of Business and Entrepreneurship (IJBE), 1(2), 51-51.

Jiang, H., & Zhang, Y. (2016). An investigation of service quality, customer satisfaction and loyalty in China's airline market. Journal of air transport management, 57, 80-88. https://doi.org/10.1016/j.jairtraman.2016.07.008

Joudeh, J. M., & Dandis, A. (2018). Service quality, customer satisfaction and loyalty in an internet service providers. International Journal of Business and Management, 13(8), 108-120.

Kasiri, L. A., Cheng, K. T. G., Sambasivan, M., & Sidin, S. M. (2017). Integration of standardization and customization: Impact on service quality, customer satisfaction, and loyalty. Journal of Retailing and Consumer Services, 35, 91-97. https://doi.org/10.1016/j.jretconser.2016.11.007

Keshavarz, Y., & Jamshidi, D. (2018). Service quality evaluation and the mediating role of perceived value and customer satisfaction in customer loyalty. International Journal of Tourism Cities.

Khan, M. M., & Fasih, M. (2014). Impact of service quality on customer satisfaction and customer loyalty: Evidence from banking sector. Pakistan Journal of Commerce and Social Sciences (PJCSS), 8(2), 331-354.

Kuntari, B.D. Kumadji, Srikandi, H.K. (2016). Pengaruh Kualitas Pelayanan Terhadap Kepuasan Dan Loyalitas Pelanggan (Survei Pada Pelanggan Bengkel PT Astra International Tbk – Daihatsu Malang). Jurnal Administrasi Bisnis (JAB), 36(1), 196-202.

Kusumawati, A & Rahayu, K.S. (2019). The effect of experience quality on customer perceived value and customer satisfaction and its impact on customer loyalty. The TQM Journal, 32(6): 1525-1540.

Leninkumar, V. (2016). The effect of service quality on customer loyalty. European Journal of Business and Management, 8(33), 44-49.

Leong, L. Y., Hew, T. S., Lee, V. H., & Ooi, K. B. (2015). An SEM–artificial-neural-network analysis of the relationships between SERVPERF, customer satisfaction and loyalty among low-cost and full-service airline. Expert systems with applications, 42(19), 6620-6634. https://doi.org/10.1016/j.eswa.2015.04.043

Lumbantobing, S. M., & Priansa, D. J. (2018). Pengaruh Persepsi Nilai Terhadap Kepuasan Konsumen Pengguna Kereta Api. eProceedings of Applied Science, 4(3).

Maisya, K.L., Syah, T.Y.R., & Anindita, R. (2019). Influence Of Service Quality And Customer Satisfaction On Customer Loyalty In Restaurants Of The Tangerang Area. RJOAS, 8(92):142-147.

Melastri, K., & Giantari, I. G. A. K. (2019). Effect of Service Quality, Company Image, and Customer Satisfaction in Word of Mouth. International Research Journal of Management, IT and Social Sciences, 6(4), 127-134.

Narotama, A. (2019). The Effect of Service Quality on Customer Loyalty with Brand Images and Customer Satisfaction as Mediation. Jurnal manajemen dan kewirausahaan, 7(1), 86-93.

Natya, Ayu, Rahanata, Gede Bayu, Yasa, Ni Nyoman Kerti. (2020). Building Customer Loyalty Through Customer Satisfaction that Influenced by Promotion, Trust and Perceived Ease of Use, American Journal of Humanities and Social Science Research, 4(11).

Ngo, V. M., & Nguyen, H. H. (2016). The relationship between service quality, customer satisfaction and customer loyalty: An investigation in Vietnamese retail banking sector. Journal of Competitiveness.

Nikhashemi, S. R., Tarofder, A. K., Gaur, S. S., & Haque, A. (2016). The effect of customers’ perceived value of retail store on relationship between store attribute and customer brand loyalty: Some insights from Malaysia. Procedia Economics and Finance, 37, 432-438. https://doi.org/10.1016/S2212-5671(16)30148-4

Ofori, K. S., Boakye, K., & Narteh, B. (2018). Factors influencing consumer loyalty towards 3G mobile data service providers: evidence from Ghana. Total Quality Management & Business Excellence, 29(5-6), 580-598.

Oh, H. (1999). Service quality, customer satisfaction, and customer value: A holistic perspective. International Journal of Hospitality Management, 18(1), 67-82. https://doi.org/10.1016/S0278-4319(98)00047-4

Omoregie, O.K., John, A.A., Stanley C., George, O.A.A., & Kwame S.O. (2019). Factors influencing consumer loyalty: evidence from the Ghanaian retail banking industry. International Journal of Bank Marketing, 1-24.

Parasuraman, A., Zeithaml, V. A., & Berry, L. (1988). Servqual: A multiple-item scale for measuring consumer perceptions of service quality. 1988, 64(1), 12-40.

Peterson, R. (2004). Crafting information technology governance. Information systems management, 21(4), 7-22.

Porter, M. E. (2008). Competitive Advantage (Keunggulan Bersaing) Menciptakan dan Mempertahankan Kinerja Unggul. Alih Bahasa: Tim Penerbit. Jakarta: Karisma Publishing Group.

Prameka, A. S., Do, B. R., & Rofiq, A. (2017). How brand trust is influenced by perceived value and service quality: mediated by hotel customer satisfaction. APMBA (Asia Pacific Management and Business Application), 5(2), 73-88.

Pratiwi, H., Rosmawati, P., & Usman, O. (2019). Effect of price, promotion, brand trust, and customer satisfaction on customer loyalty in packaging products mineral water aqua. Promotion, Brand Trust, and Customer Satisfaction on Customer Loyalty in Packaging Products Mineral Water Aqua (January 8, 2019).

Prayoga, I. M. S., Yasa, N. N. K., & Wardana, M. (2015). Relational Benefit, Kepuasan, Dan Loyalitas Pelanggan Pada Bengkel Pt Honda Dewata Motor. Jurnal Manajemen dan Kewirausahaan (Journal of Management and Entrepreneurship), 17(1), 11-20.

Putra, D. K., Rahyuda, K. Y. N. N. (2018). The Role Of Satisfaction And Trust In Mediating The Relationship Of Brand Experience And Loyalty (A Study On Consumers Of Hilo Brand Milk Product), International Journal of Economic, Commerce and Management (IJECM), 6 (1).

Rahim, A. G. (2016). Perceived service quality and customer loyalty: The mediating effect of passenger satisfaction in the Nigerian Airline Industry.

Ramadhan, L., & Yolanda Masnita Siagian, M. M. Impact of Customer Perceived Value on Loyalty: In Context Crm. 7(3), 24-29.

Rasmiati, D. & Yasa, N. N. K. (2018). The Effect Of Retail Service And Store Image On Customer Satisfaction And Loyalty In Nirmala Supermarket Jimbaran-Bali, European Journal of Business, Economics and Accountancy, 7 (3).

Rasoolimanesh, S. M., Dahalan, N., & Jaafar, M. (2016). Tourists' perceived value and satisfaction in a community-based homestay in the Lenggong Valley World Heritage Site. Journal of Hospitality and Tourism Management, 26, 72-81. https://doi.org/10.1016/j.jhtm.2016.01.005

Rizwan, M., Usman, A., Hussain, T., Shafiq, A., Rauf, S., & Aian Ayaz, Q. U. (2013). The impact of the perceived quality, customer satisfaction, brand trust and contextual factors on brand loyalty. clear International Journal of Research in Commerce & Management, 4(3).

Saleem, H., & Raja, N. S. (2014). The impact of service quality on customer satisfaction, customer loyalty and brand image: Evidence from hotel industry of Pakistan. Middle-East Journal of Scientific Research, 19(5), 706-711.

Sanjaya, D. P. E., & Yasa, N. N. (2018). The Effect of Service Quality on Customer Satisfaction, Positive Word of Mouth and Corporate Image. Journal of Business and Management, 20(7), 28-33.

Saraswita, P. I. & Yasa, Ni Nyoman Kerti. (2017). The Effect of Perceived Justice on Customer Satisfaction and Loyalty at PT Bank BPD Bali, International Journal Multidiciplinary Education and Research, 2 (6), 20-25.

Sari, A. A. R. P., & Yasa, N. N. K. (2020). Kepercayaan pelanggan di antara hubungan citra perusahaan dan kewajaran harga dengan loyalitas pelanggan mapemall. com. Penerbit Lakeisha.

Sari, D. A. T., & Giantari, I. G. A. K. (2020). Role of Consumer Satisfaction in Mediating Effect of Product Quality on Repurchase Intention. International Research Journal of Management, IT and Social Sciences, 7(1), 217-226.

Sari, M. R., & Lestari, R. (2019). Pengaruh Persepsi Harga, Kualitas Pelayanan Dan Kualitas Produk Terhadap Kepuasan Dan Dampaknya Pada Minat Pembelian Ulang Konsumen Keretaapi Kelas Eksekutif Argo Parahyangan. Oikonomia: Jurnal Manajemen, 15(1).

Solimun, S., & Fernandes, A. A. R. (2018). The mediation effect of customer satisfaction in the relationship between service quality, service orientation, and marketing mix strategy to customer loyalty. Journal of Management Development.

Tiong, P. (2018). Pengaruh kualitas pelayanan terhadap loyalitas pelanggan pt. primagum sejati di makassar. SEIKO: Journal of Management & Business, 1(2), 176-203.

Tjiptono, F. (2012). Pemasaran Strategik. Andi Offset. Yogyakarta.

Udo, G. J., Bagchi, K. K., & Kirs, P. J. (2010). An assessment of customers’e-service quality perception, satisfaction and intention. International Journal of Information Management, 30(6), 481-492. https://doi.org/10.1016/j.ijinfomgt.2010.03.005

Wantara, P. (2018). Effect of service quality and perceived value satisfaction and loyalty religious tourists visit Island Madura, Indonesia. International Journal of Social Science and Economics Invention, 2(04), 325-to.

Yacob, Y., Ali, J. K., Baptist, C. J., Nadzir, H. M., & Morshidi, M. H. (2016). How far members’ satisfaction mediated members’ loyalty? Investigating credit cooperative in Sarawak Borneo. Procedia-Social and Behavioral Sciences, 224, 376-383. https://doi.org/10.1016/j.sbspro.2016.05.391

Yang, Z., & Peterson, R. T. (2004). Customer perceived value, satisfaction, and loyalty: The role of switching costs. Psychology & marketing, 21(10), 799-822.

Yasa, N. N. Kerti, P.L.D. Rahmayanti, I G. N. A.J. Widagda, I B. A. Dharmanegara (2020). Perceived Value On Adapting To Online Study: Indonesian Student Perspectives during the COVID-19 Pandemic Period, SSRG - International Journal of Economics and Management Studies, 7 (8), 178-186.

Published

2021-05-20

How to Cite

Devi, A. A. D. T., & Yasa, N. N. K. (2021). The role of customer satisfaction in mediating the influence of service quality and perceived value on brand loyalty. International Research Journal of Management, IT and Social Sciences, 8(3), 315–328. https://doi.org/10.21744/irjmis.v8n3.1786

Issue

Section

Peer Review Articles

Most read articles by the same author(s)