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Determinants of Customer Satisfaction And it’s Implication on Customer Loyalty of Budget Hotel in DKI Jakarta

Author

Listed:
  • Achmad Mulyana

    (Sekolah Tinggi Ilmu Ekonomi Ganesha Jakarta, Indonesia)

  • Sugeng Prayetno

    (Sekolah Tinggi Ilmu Ekonomi Ganesha Jakarta, Indonesia)

Abstract

This study aims to prove and analyze the increase of customer loyalty through an increase in marketing mix mediated by customer satisfaction. The population in this study is Budget Hotel Customers in DKI Jakarta Province. The research method used in this research is descriptive survey method and explanatory survey with a minimum sample size of 200 respondents, with the data analysis method used is SEM (Structural Equation Modeling). Based on the results of the study, the following findings found that the marketing mix has a positive and significant direct effect on customer satisfaction and customer loyalty with contributions of 30.25% and 8.41%, customer satisfaction has a positive and significant effect on customer loyalty with a contribution of 18.49%, the marketing mix affects customer loyalty through customer satisfaction with a contribution of 5.76%, the marketing mix and customer satisfaction simultaneously have a positive and significant impact on customer loyalty with a contribution of 41%. Customer satisfaction partially has the most dominant influence on customer loyalty. Research findings also show that customer satisfaction is a partial mediating effect of the marketing mix on customer loyalty.

Suggested Citation

  • Achmad Mulyana & Sugeng Prayetno, 2018. "Determinants of Customer Satisfaction And it’s Implication on Customer Loyalty of Budget Hotel in DKI Jakarta," International Review of Management and Marketing, Econjournals, vol. 8(6), pages 1-7.
    • Handle: RePEc:eco:journ3:2018-06-1
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    References listed on IDEAS

    as
    1. Tajeddini, Kayhan, 2010. "Effect of customer orientation and entrepreneurial orientation on innovativeness: Evidence from the hotel industry in Switzerland," Tourism Management, Elsevier, vol. 31(2), pages 221-231.
    2. Kang, Jun & Alejandro, Thomas Brashear & Groza, Mark D., 2015. "Customer–company identification and the effectiveness of loyalty programs," Journal of Business Research, Elsevier, vol. 68(2), pages 464-471.
    3. Filipe, Sandra & Marques, Susana Henriques & Salgueiro, Maria de Fátima, 2017. "Customers' relationship with their grocery store: Direct and moderating effects from store format and loyalty programs," Journal of Retailing and Consumer Services, Elsevier, vol. 37(C), pages 78-88.
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    Cited by:

    1. Kuo-Yan Wang & Mu-Lan Ma & Jing Yu, 2021. "Understanding the perceived satisfaction and revisiting intentions of lodgers in a restricted service scenario: evidence from the hotel industry in quarantine," Service Business, Springer;Pan-Pacific Business Association, vol. 15(2), pages 335-368, June.

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    More about this item

    Keywords

    Marketing Mix; Customer Satisfaction; Customer Loyalty;
    All these keywords.

    JEL classification:

    • M30 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - General
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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