Service Quality vs. Advertising in Building Customer Loyalty

Customer loyalty remains a pivotal concern in the pharmaceutical retail sector, particularly in developing regions where competition between independent pharmacies and large chains is intensifying. This study investigates the comparative influence of service quality and advertising on customer loyalty, using a local pharmacy in Trenggalek Regency, Indonesia, as a case study. A quantitative method was employed, involving a structured questionnaire completed by 138 respondents. The data were analyzed using multiple linear regression. The results revealed that service quality has a strong and positive influence on customer loyalty, while advertising surprisingly exhibits a significant negative effect. Together, the two variables explained 61.4% of the variance in loyalty, confirming their collective relevance. The findings suggest that while high-quality interpersonal service strengthens customer commitment, misaligned or poorly perceived advertising may undermine it. This study contributes to marketing literature by contextualizing SERVQUAL and Integrated Marketing Communication (IMC) theories within a semi-urban healthcare setting, and highlights the need for service-driven branding strategies in trust-based markets.