The Influence of Service Quality on Customer Loyalty Mediated by Customer Satisfaction and Customer Delight at Kusuma Bali Mandiri

This study aims to evaluate the impact of service quality on customer loyalty at UD Kusuma Bali Mandiri, considering customer satisfaction and customer delight as intervening variables. This quantitative research utilizes data from last year’s customers. Although the exact population is unknown due to potential differences in customer identities, the sample size is determined using the 10 times rule from Hair et al. (2012), which is 14 indicators multiplied by 10, resulting in a sample of 140 respondents. Data analysis is conducted using Structural Equation Modeling (SEM) with a Partial Least Squares (PLS) approach. The research is conducted at UD Kusuma Bali Mandiri across four branches in Bali, namely Karangasem, Klungkung, Gianyar, and Tabanan. The analysis results indicate that service quality has a positive and significant impact on customer loyalty. Additionally, service quality also has a positive and significant effect on customer and customer delight. Customer satisfaction is found to mediate the effect of service quality on customer loyalty, while customer delight also acts as a mediator in this relationship. Higher service quality leads to higher levels of customer satisfaction and customer delight, which in turn enhances customer loyalty. These findings underscore the importance of improving service quality to achieve high levels of customer satisfaction and delight, as well as to build and maintain customer loyalty.