Service Quality and Perceived Value on Brand Loyalty: The Mediating Role of Customer Satisfaction

Abstract

This study aims to analyze the influence of service quality and perceived value on brand loyalty through customer satisfaction among users of PT Kereta Api Indonesia (Persero) services at Purwokerto Station. This study is motivated by the importance of brand loyalty in the transportation services industry and the differences in the results of previous studies regarding the role of customer satisfaction as a mediating variable. The study used a quantitative approach with a purposive sampling technique for 200 respondents. Data were collected through questionnaires and analyzed using Partial Least Squares-Structural Equation Modeling (PLS-SEM) with the help of SmartPLS. The results showed that service quality, perceived value, and customer satisfaction had a positive and significant effect on brand loyalty. Service quality and perceived value also had a positive and significant effect on customer satisfaction. In addition, customer satisfaction was proven to mediate the influence of service quality and perceived value on brand loyalty. The novelty of this study lies in testing the mediating role of customer satisfaction in the relationship between service quality, perceived value, and brand loyalty in the context of PT Kereta Api Indonesia (Persero) services at Purwokerto Station.