THE INFLUENCE OF SERVICE QUALITY AND CUSTOMER RELATION ON CUSTOMER LOYALTY MEDIATED BY CUSTOMER VALUE AND CUSTOMER SATISFACTION ON PT. ISKANDARIA TOUR & TRAVEL

Abstract

This study aims to examine the effect of service quality (servqual) and customer relation on customer loyalty mediated by customer value and customer satisfaction at PT. Iskandaria Tours & Travel (Iskandaria). The population was all of Iskandaria's customers with the exact number unknown. In the survey, questionnaire distributed there were 42 question items, so the minimum sample was 42 x 5 = 210 samples. The data were tested with SEM-AMOS. The result proves that servqual, customer relation, customer value, customer satisfaction, and loyalty in Iskandaria can be said to be good, servqual affects customer value, customer relation does not affect customer value, servqual affects customer satisfaction, customer relation does not affect customer satisfaction, servqual affects loyalty, customer relation does not affect loyalty, customer value affects loyalty, customer satisfaction affects loyalty, customer value mediates partially servqual to loyalty, customer satisfaction mediates partially servqual to loyalty, customer value mediates fully customer relation to loyalty, and customer satisfaction fully mediates customer relation to loyalty. This finding explains that the increased loyalty model in Iskandaria is a function of increasing servqual, strengthening customer relation, and increasing customer value and customer satisfaction as mediators.