Service Quality, Mediation Effect of Customer Satisfaction, Customer Loyalty, and Moderating Role of Interpersonal Relationship: Case of Four-Star Hotels in Kuala Lumpur, Malaysia

Abstract

The importance and prominent role of service quality in service industries are inevitable. Previous scholars have investigated relationships among service quality, customer satisfaction, and customer loyalty with fundamental theories in this research era, as proposed in marketing and psychological behavior. Ergo, their consistencies have been supported by theoretical justification. This research paper aims to determine the effect of service quality on customer loyalty directly and through the mediating role of customer satisfaction and the moderating role of interpersonal relationships in the four-star hotels located in Kuala Lumpur, Malaysia. This research's developed model consists of four latent variables: service quality, customer satisfaction, interpersonal relationship, and customer loyalty. A quantitative approach through the distribution of 550 questionnaires with a response rate of 69.81 percent was taken. Collected data were processed via IBMSPSSAMOS software. Firstly, reliability and factor analysis in order to ensure normality of the collected data, adequacy of sample size were run. Secondly, utilizing structural equation modeling (SEM) via analysis of moment structure (AMOS) program. Confirmatory factor analysis (CFA) with a two-step strategy was run to hypotheses testing. Thirdly, hierarchical regression analyses were conducted for testing the moderating role of interpersonal relationships. Findings supported the notion that service quality has a positive and direct impact on customer satisfaction and loyalty. Customer satisfaction mediates the relationship between service quality and customer loyalty. Finally, interpersonal relationship moderates the relationship between service quality and customer satisfaction positively. Consequently, the interpersonal relationship moderates the relationship between customer satisfaction and customer loyalty positively. This research's originality and value are for academics, practitioners, and managers in service industries, especially hospitality industries and exclusively managers in the four-star hotels in Kuala Lumpur, Malaysia.

Understanding mediators and moderators of the effect of customer satisfaction on loyalty

“…Satisfied customers are the purpose of business because businesses rely on them, rather than customers being dependent on businesses. Satisfied customers are a benefit to the firm in that they do not easily switch suppliers (Harzaviona & Syah, 2020;Nikou & Khiabani, 2020). Satisfied customers share their experiences with others whereas dissatisfied customers share with much more customers about their unhappy experience resulting in the loss of business (Felix, 2017;Taliah, 2007).…”

The Value of CHSE Hotel Certificates in Increasing Hotel Loyalty among Domestic Tourists

“…Image has a positive effect on satisfaction (Lahap et al, 2016;Nikou et al, 2016Nikou et al, , 2017Novitaningtyas et al, 2021) and loyalty (Hwang & Kim, 2019;I. K. W. Lai, 2019;Nikou et al, 2016Nikou et al, , 2017Song et al, 2019;Zhang et al, 2014). Meanwhile, a perceived value significantly affects satisfaction and loyalty positively (Adirestuty, 2019;El-Adly, 2018;K.…”

“…Satisfaction variables positively affect loyalty (Alketbi et al, 2020;Nuryakin & Priyo, 2018;Trini & Salim, 2018) and trust (Alketbi et al, 2020;Hendrawan & Agustini, 2021;Review et al, 2013). Image has a positive effect on satisfaction (Lahap et al, 2016;Nikou et al, 2016Nikou et al, , 2017Novitaningtyas et al, 2021) and loyalty (Hwang & Kim, 2019;I. K. W. Lai, 2019;Nikou et al, 2016Nikou et al, , 2017Song et al, 2019;Zhang et al, 2014).…”

The Impact of Logistics Service Quality on Customer Loyalty in Egyptian Resorts: Customer Satisfaction as a Mediator

“…Many studies have considered SERVQUAL dimensions as internal driver to customers and customer satisfaction as a consequence that affect customer loyalty (Mohamad, 2017;Nikou and Khiabani, 2020;Gopi and Samat, 2020). Traditionally, the studies of logistics have been focused upon operational subjects such as inventory management and operation cycle level (Chaniago and Mudjiardjo, 2021;Masudin, 2022).…”

“…According to Hua and Jing (2015), the most significant challenge for hotel organizations to promote customers' loyalty is to build logistics service quality by focusing on the customer feedback. Few studies have investigated the logistics service quality LSQ and its impact on customer satisfaction and loyalty in the hotel industry, despite the fact that many studies have demonstrated that service quality has a positive association with customers' satisfaction in hotel sector (Markovic and Jankovic, 2013;Nikou and Khiabani, 2020;Gopi and Samat, 2020).…”