Marketing Innovation and Customer Loyalty: The Role of Customer Satisfaction of SMEs in Hospitality Sector in Indonesia

Abstract

This study aims to examine the effect of marketing innovation and customer satisfaction on customer loyalty. In this study, it will also be seen to determine the mediating role of customer satisfaction in forming the relationship between marketing innovation and customer loyalty. The method in this study uses a quantitative approach. The research was conducted on customers at the Reddoorz Hotel in Bandung. The questionnaires that were collected were 183 questionnaires. So the sample in this study were 183 respondents. The data collected were analyzed using the Structural Equation Modeling method with the help of Amos software Version 23. The results showed that there was an influence between marketing innovation on customer satisfaction, there was an influence between marketing innovation on customer loyalty, and there is an influence between customer satisfaction on customer loyalty. The results also show that customer satisfaction has a mediating role that forms the relationship between marketing innovation and customer loyalty. We suggest that customer satisfaction and marketing innovation can be further improved to increase customer loyalty.