THE ROLE OF CUSTOMERS SATISFACTION IN MEDIATING THE EFFECT OF SERVICE QUALITY ON CUSTOMER LOYALTY AT UDARA BALI BEACH RESORT YOGA & SPA

Abstract

The development of the tourism business in Bali has an impact on improving the local community's economy. Competition is so intense in the field of accommodation, causing hotels and resorts to be able to capture market share by building customer loyalty. This study aims to explain the mediating role of customer satisfaction on the effect of service quality on customer loyalty at Bali Beach Resort Yoga & Spa. This study uses a consumer behavior model with a sample size of 100 people and uses a purposive sampling technique. Data was collected using a questionnaire method, data analysis techniques using path analysis, and a Sobel test. The study reveals that service quality positively and significantly influences customer loyalty, indicating that improved service quality leads to increased customer loyalty. Additionally, service quality positively impacts customer satisfaction, meaning that enhanced service quality results in higher customer satisfaction. Furthermore, customer satisfaction has a positive and significant effect on customer loyalty, implying that as customer satisfaction rises, so does customer loyalty. Customer satisfaction partially mediates the effect of service quality on customer loyalty. Udara Bali can use the implications of this research to develop strategies that are right according to consumer behavior patterns.

Keywords

• customer
• satisfaction
• service quality
• customer loyalty