Assessing the role of service quality, customer experience and perceived value as mediator on customer loyalty: evidence in Indonesian pharmacies

Purpose This study aims to investigate the impact of service quality and customer experience on customer loyalty in the pharmaceutical sector, focusing on “ABC” Apotek in Malang, Indonesia. In addition, this study explores the mediating role of perceived value in the relationship between service quality, customer experience and loyalty. Design/methodology/approach A quantitative approach examined the relationship between variables. Data were collected through questionnaires using a five-point Likert scale from 159 respondents, who were selected by an accidental sampling technique. Data analysis was performed using Partial Least Squares (PLS)-Structural Equation Modeling (SEM) employee SmartPLS software. Findings This study found that service quality and customer experience do not significantly affect customer loyalty. However, perceived value has a significant positive effect on loyalty. In addition, service quality and customer experience indirectly affect loyalty through perceived value, indicating that positive experiences and high-quality service increase perceived value, strengthening customer loyalty. Research limitations/implications This study was performed in various pharmacies within the Malang region, utilizing a restricted sample of respondents chosen through nonprobability sampling methods. The study’s results exhibit limited generalizability, and the conclusions cannot be extrapolated to other pharmacies. Furthermore, response bias (response error) may arise from the sample. Data were gathered using a questionnaire that may elicit inattentive responses from participants. Practical implications To cultivate loyalty, the findings indicate that pharmaceutical businesses and service providers should prioritize enhancing consumers’ perception of value for their expenditure rather than solely augmenting service quality and the overall customer experience. In reality, enterprises can strengthen pricing competitiveness and implement reward programs with tangible advantages and superior products to ensure customers see more excellent value for their expenditure. Enhancing articulation of the benefits of products and services can augment their perceived value, hence fostering client loyalty, despite service quality and the entire customer experience not being the primary determinants of this loyalty. Social implications The conclusions of this study have significant social implications for the pharmaceutical and service industries. If enhancing service and customer experience does not immediately increase customer loyalty, organizations should concentrate on strategies that elevate the perceived value of their products by offering clients enhanced offers, additional rewards or more significant events. Furthermore, given service quality and the total customer experience influence perceived value, organizations must ensure that their interactions with customers consistently provide tangible advantages and are regarded as valuable, for example, client pleasure, enhanced relationships and the capacity for the organization to remain operational. Originality/value This study contributes to the literature by highlighting the role of perceived value as a mediator between service quality, customer experience and loyalty in the pharmaceutical sector. The findings provide practical insights for pharmaceutical managers, suggesting that improving service quality and customer experience can enhance customer loyalty by increasing perceived value.