The Impact of the Strategic Location of a Vehicle Steam Wash Facility and Service Quality in Building Customer Loyalty in Jakarta

The level of competition in the vehicle washing sector is increasing, because the number of vehicles, both cars and motorbikes, is increasing every year. This is an opportunity for vehicle washing entrepreneurs to increase revenue through customer loyalty. The purpose of this study was to examine the effect of vehicle washing location and service quality on customer loyalty in Jakarta. This study successfully collected data through a customer survey of 130 customers. The sampling method used in this study is the non-probability purposive sampling method. We used multiple regression analysis where customer loyalty is the dependent variable and the location of the vehicle washing and service quality as exogenous variables. The collected data were then processed using the Smart PLS data processing tool. Partial Least Square measures two submodels, namely the outer measurement submodel or outer Measurement Model and the structural model or inner Model or inner Measurement Submodel. The results of this study found that the location of the vehicle washing and service quality have a statistically significant effect on customer loyalty. The implications and limitations of this study are also discussed in this article.