Service Quality, Facilities, and Trust Effects on Customer Loyalty Mediated by Satisfaction in Event Organizer
Purpose: This study is motivated by a 20.6% decline in the number of customers at PT Sarana Mandiri Sejahtera Abadi, an event organizer company based in Surabaya, in 2024, indicating a decrease in customer loyalty. The study aims to analyze the influence of service quality, facilities, and trust on customer loyalty, both directly and indirectly through customer satisfaction as a mediating variable.
Research Methodology: A quantitative explanatory design was used with 97 customers selected through purposive sampling. Data were collected using structured five-point Likert-scale questionnaires and analyzed using PLS-SEM with SmartPLS. Validity and reliability were assessed using AVE, Composite Reliability, and Cronbach’s alpha.
Results: The model explains 64.2% of customer satisfaction and 70.1% of customer loyalty. Service quality significantly affects both satisfaction and loyalty. Trust also has significant positive effects on both variables. Customer satisfaction significantly influences loyalty and partially mediates the effects of service quality and trust on loyalty. However, facilities do not significantly affect satisfaction or loyalty.
Conclusions: Service quality and trust are the primary determinants of customer satisfaction and loyalty, while facilities function as a hygiene factor rather than a direct driver of loyalty.
Limitations: The study is limited to a single event organizer company in Surabaya and uses a cross-sectional design. It does not include moderating variables such as event type, contract size, or customer tenure.
Contributions: This study contributes to service marketing literature by confirming the mediating role of customer satisfaction and validating the hygiene-factor role of facilities in the event organizer industry.
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