THE IMPACT OF SERVICE QUALITY AND CORPORATE REPUTATION TOWARD LOYALTY IN THE INDONESIAN HOSPITALITY SECTOR

Main Article Content

Nicholas Wilson

Abstract

Penelitian ini dilakukan guna mengetahui bagaimana pengaruh service quality dan corporate reputation terhadap loyalty, baik secara langsung ataupun tidak langsung melalui trust. Penelitian ini mengimplementasikan metode survei, dimana, kuesioner digunakan sebagai alat untuk mengumpulkan data yang diperlukan pada penelitian ini. Sebanyak 200 responden berpartisipasi pada penelitian ini, dimana, dari 200 data yang terkumpul, sebanyak 191 data dinyatakan valid, reliable dan dapat digunakan untuk selanjutnya diproses pada penelitian ini. Data selanutnya dianalisa dengan metode partial least squares-structural equation modelling (PLS-SEM). Berdasarkan hasil analisis data yang diperoleh, peneliti dapat menyimpulkan bahwa service quality dan corporate reputation berpengaruh positif terhadap loyalty, baik secara langsung ataupun tidak langsung melalui trust pada industri Perhotelan di Indonesia.

 

This research was conducted in order to determine the impact of service quality and corporate reputation toward customer loyalty, both directly and indirectly through trust in the Indonesian hospitality sector. This research implements ssurvey method, in which quaestionnaires were utilized as the tools to collect all of the data required for the completion of this study. A total od 200 respondents participate in this study, in which, out of 200, 191 data had been deemed valid, reliable and usable to be further processed in this research. All of the data then were analyzed using partial least squares-structural equation modeling (PLS-SEM) method. Based on the results of the data analysis, author would like to conclude that both service quality and corporate reputation had a positive impact on customer loyalty, both directly and indirectly through trust in the Indonesian hospitality sector.

Article Details

Section
Articles
Author Biography

Nicholas Wilson, Bunda Mulia University

Faculty of Social Sciences and Humanities, Department of Management

References

Akbaba, A. (2006). Measuring service quality in the hotel industry: A study in a business hotel in Turkey. International Journal of Hospitality Management, 25(2), 170-192. https://doi.org/10.1016/j.ijhm.2005.08.006

Anwar, A., Gulzar, A., Sohail, F. Bin, & Akram, S. N. (2011). Impact of Brand Image, Trust and Affect on Consumer Brand Extension Attitude: the Mediating Role of Brand Loyalty. International Journal of Economics and Management Sciences, 1(5), 73-79.

Barclay, D., Higgins, C., and Thompson, R. (1995), The partial least squares (PLS) approach to casual modeling: Personal computer adoption and use as an illustration, Technology Studies, 2(2), 285–309.

Caruana, A. (2002). Service loyalty: The effects of service quality and the mediating role of customer satisfaction. European Journal of Marketing, 36(7/8), 811-828 https://doi.org/10.1108/03090560210430818

Caruana, A., & Ewing, M. T. (2010). How corporate reputation, quality, and value influence online loyalty. Journal of Business Research, 63(9/10), 1103-1110 https://doi.org/10.1016/j.jbusres.2009.04.030

Chang, H. H., Wang, Y. H., & Yang, W. Y. (2009). The impact of e-service quality, customer satisfaction and loyalty on e-marketing: Moderating effect of perceived value. Total Quality Management and Business Excellence, 20(4), 423-443 https://doi.org/10.1080/14783360902781923

Chang, K. C. (2013). How reputation creates loyalty in the restaurant sector. International Journal of Contemporary Hospitality Management, 25(4), 536-557. https://doi.org/10.1108/09596111311322916

Choi, B., & La, S. (2013). The impact of corporate social responsibility (CSR) and customer trust on the restoration of loyalty after service failure and recovery. Journal of Services Marketing, 27(3), 223-233. https://doi.org/10.1108/08876041311330717

Collier, J. E., & Bienstock, C. C. (2006). Measuring service quality in E-retailing. Journal of Service Research. https://doi.org/10.1177/1094670505278867

De Leaniz, P. M. G., & Del Bosque Rodríguez, I. R. (2016). Corporate Image and Reputation as Drivers of Customer Loyalty. Corporate Reputation Review, 8(3), 260-275. https://doi.org/10.1057/crr.2016.2

Ebert, T. (2010). Trust as the Key to Loyalty in Business-to-Consumer Exchanges: Trust Bulding Measures in the Banking Industry. Frankfurt/Main: Springer Science and Business Media.

Hair, J.F., Ringle, C.M., & Sarstedt, M. (2011). PLS-SEM: Indeed a Silver Bullet. The Journal of Marketing Theory and Practice. 19(2), 139-151.

Harris, L. C., & Goode, M. M. H. (2004). The four levels of loyalty and the pivotal role of trust: A study of online service dynamics. Journal of Retailing, 80(2), 139-158. https://doi.org/10.1016/j.jretai.2004.04.002

He, H., Li, Y., & Harris, L. (2012). Social identity perspective on brand loyalty. Journal of Business Research, 65(5), 648-657. https://doi.org/10.1016/j.jbusres.2011.03.007

Helm, S. (2007). The Role of Corporate Reputation in Determining Investor Satisfaction and Loyalty. Corporate Reputation Review, 10(1), 22-37. https://doi.org/10.1057/palgrave.crr.1550036

Johnston, R. (1995). The Determinants of Service Quality: Satisfiers and Dissatisfiers. International Journal of Service Industry Management, 6(5), 53-71. https://doi.org/10.1108/09564239510101536

Kassim, N., & Asiah Abdullah, nor. (2010). The effect of perceived service quality dimensions on customer satisfaction, trust, and loyalty in e-commerce settings: A cross cultural analysis. Asia Pacific Journal of Marketing and Logistics, 22(3), 351-371. https://doi.org/10.1108/13555851011062269

Keith, N. K., & Simmers, C. S. (2013). Measuring hotel service quality perceptions: The disparity between comment cards and LODGSERV. Academy of Marketing Studies Journal, 17(2), 119-132.

Nguyen, N., & Leblanc, G. (2001). Corporate image and corporate reputation in customers’ retention decisions in services. Journal of Retailing and Consumer Services, 8(4), 227-236. https://doi.org/10.1016/s0969-6989(00)00029-1

Nyadzayo, M. W., & Khajehzadeh, S. (2016). The antecedents of customer loyalty: A moderated mediation model of customer relationship management quality and brand image. Journal of Retailing and Consumer Services, 30, 262-270. https://doi.org/10.1016/j.jretconser.2016.02.002

Parasuraman, A., Zeithaml, V. A., & Malhotra, A. (2005). E-S-QUAL a multiple-item scale for assessing electronic service quality. Journal of Service Research, 7(3), 213-233. https://doi.org/10.1177/1094670504271156

Peterson, R.A. (1994). A Meta-analysis of Cronbach’s coefficient alpha. Journal of Consumer Research. 21(2), 381-391.

Quinn, A., Lemay, G., Larsen, P., & Johnson, D. M. (2009). Service quality in higher education. Total Quality Management and Business Excellence, 20(2), 139-152. https://doi.org/10.1080/14783360802622805

Rasheed, F. A., & Abadi, M. F. (2014). Impact of Service Quality, Trust and Perceived Value on Customer Loyalty in Malaysia Services Industries. Procedia - Social and Behavioral Sciences, 164, 298-304. https://doi.org/10.1016/j.sbspro.2014.11.080

Santos, J. (2003). E-service quality: A model of virtual service quality dimensions. Managing Service Quality: An International Journal, 13(3), 233-246. https://doi.org/10.1108/09604520310476490

Segoro, W. (2013). The Influence of Perceived Service Quality, Mooring Factor, and Relationship Quality on Customer Satisfaction and Loyalty. Procedia - Social and Behavioral Sciences, 81, 306-310. https://doi.org/10.1016/j.sbspro.2013.06.433

Sivadas, E., & Baker-Prewitt, J. L. (2000). An examination of the relationship between service quality, customer satisfaction, and store loyalty. International Journal of Retail & Distribution Management, 28(2), 73-82. https://doi.org/10.1108/09590550010315223

Victorino, L., Verma, R., Plaschka, G., & Dev, C. (2005). Service innovation and customer choices in the hospitality industry. Journal of Service Theory and Practice, 15(6), 555-576. https://doi.org/10.1108/09604520510634023

Wilson, N. (2018). The Impact of Service Quality and Brand Image Toward Customer Loyalty in The Indonesian Airlines Industry, Jurnal Manajemen Indonesia. 18(3), 222-234. https://doi.org/10.25124/jmi.v18i3.1734

Wilson, N., & Makmud, S.T. (2018). The Impact of Brand Evaluation, Satisfaction, Brand Relationship and Trust To Brand Loyalty: A Case Study of The Indonesian Smartphone Industry, Jurnal Muara Ilmu Sosial, Humaniora, dan Seni, 2(2), 633-649. http://dx.doi.org/10.24912/jmishumsen.v2i2.2077

Wilson, N., Keni, K., and Tan, P.H.P. (2019). The Effect of Website Design Quality and Service Quality on Repurchase Intention in the E-commerce Industry: A Cross-Continental Analysis, Gadjah Mada International Journal of Business, 21(2), 187-222. https://doi.org/10.22146/gamaijb.33665

Wu, H. C., & Ko, Y. J. (2013). Assessment of Service Quality in the Hotel Industry. Journal of Quality Assurance in Hospitality and Tourism, 14(3), 21-244. https://doi.org/10.1080/1528008X.2013.802557

Yee, R. W. Y., Yeung, A. C. L., & Edwin Cheng, T. C. (2010). An empirical study of employee loyalty, service quality and firm performance in the service industry. International Journal of Production Economics, 124(1), 109-120. https://doi.org/10.1016/j.ijpe.2009.10.015

Zahedi, F. M., & Song, J. (2008). Dynamics of trust revision: Using health infomediaries, Journal of Management Information Systems, 24(4), 225–248.

Zehir, C., ?ahin, A., Kitapçi, H., & Özçahin, M. (2011). The effects of brand communication and service quality in building brand loyalty through brand trust; the empirical research on global brands. Procedia - Social and Behavioral Sciences, 24, 1218-1231. https://doi.org/10.1016/j.sbspro.2011.09.142

Zhou, T., Lu, Y., & Wang, B. (2009). The relative importance of website design quality and service quality in determining consumers’ online repurchase behavior. Information Systems Management, 26(4), 327–337. https://doi.org/10.1080/10580530903245663