The effect of service quality and perceived value on customer loyalty in Tuban restaurants with customer satisfaction mediation

Abstract

This study aims to determine the effect of service quality and perceived value on customer loyalty as mediated by restaurant customer satisfaction in Tuban Regency. The population in this study was customers who have visited and enjoyed restaurants in Tuban Regency. The total samples in this study were 165 respondents using purposive sampling. The analysis method used is Partial Least Squares (PLS). The Result showed that service quality and perceived value positively and significantly impact customer loyalty. Then, service quality and perceived value significantly impact customer satisfaction. The finding of this study also revealed that Customer satisfaction has a positive and significant effect on customer loyalty. Customer satisfaction partially mediates the effects of service quality and perceived value on customer loyalty. Therefore, the restaurant needs to maintain and improve service quality and perceived value, which in turn will increase customer loyalty.