The Effects of Perceived Service Quality on Customer Loyalty: The Mediating Role of Customer Satisfaction and Trust: Evidence from Four-Star-Rated Hotels in Hawassa

In the hospitality industry, enduring customer loyalty often depends on offering quality services that can ensure satisfaction and uphold trust. In this regard, this study attempted to investigate the effects of perceived service quality on customer loyalty, and the mediating roles of satisfaction and trust. Methodologically, the SERVPERF model, explanatory design, and quantitative approach were used. 384 samples were selected from 6 four-star hotels using purposive and availability sampling techniques. SEM was used to test the causalities, interdependences, and relationships among the research variables. The findings confirmed that perceived service quality significantly and positively affects customer loyalty, satisfaction, and trust. The effects of customer satisfaction and trust on loyalty were significant and positive. Besides, customer satisfaction and trust significantly mediated the relationship between the perceived service quality and customer loyalty. The study provides significant insight into the deeper psychological principles underlying customer loyalty and offers hotel managers valuable information.