Browse > Article
http://dx.doi.org/10.13106/jafeb.2020.vol7.no12.481

The Effect of Service Quality and Product Diversity on Customer Loyalty: The Role of Customer Satisfaction and Word of Mouth  

TJAHJANINGSIH, Endang (Faculty of Economics and Business, Stikubank University)
NINGSIH, Dewi Handayani Untari (Faculty of Technology and Informatics, Stikubank University)
UTOMO, Agus Prasetyo (Faculty of Technology and Informatics, Stikubank University)
Publication Information
The Journal of Asian Finance, Economics and Business / v.7, no.12, 2020 , pp. 481-490 More about this Journal
Abstract
Batik industry is a business activity oriented towards customer loyalty and is demanded to show an increasing diversity of products with various motives designed to prevent customers from moving to other companies. Therefore, the purpose of this study is to develop a theoretical approach in solving problems in the relationship between service quality and product diversity on satisfaction and word of mouth (WoM) and its impact on customer loyalty. Furthermore, this study also examined the mediating effects of satisfaction and WoM in the relationship between service quality and product diversity on customer loyalty. This research's object took the customers of Batik Semarangan Craftwork, Indonesia, with the phenomenon of always developing creative and innovative Batik motif designs that can be accepted by the market without leaving Semarang's uniqueness. The total sample was 98 customers. The results of the study showed that service quality and product diversity positively affected satisfaction and WoM and had a positive effect on customer loyalty. Besides, satisfaction and WoM had a mediating effect on the effect of service quality and product diversity on loyalty. Thus, it is essential for management to create and increase customer loyalty by paying attention to service quality, product diversity, satisfaction, and WoM.
Keywords
Service Quality; Product Diversity; Satisfaction; Word of Mouth; Loyalty;
Citations & Related Records
Times Cited By KSCI : 8  (Citation Analysis)
연도 인용수 순위
1 Alam, N., & Al-Amri, H. A. (2020). Service Quality Perception and Customer Satisfaction in Islamic Banks of Oman. Journal of Asian Finance, Economics and Business, 7(9), 499-504. https://doi.org/10.13106/jafeb.2020.vol7.no9.499   DOI
2 Alrwashdeh, M., Jahmani, A., Ibrahim, B., & Aljuhmani, H. Y. (2020). Data to model the effects of perceived telecommunication service quality and value on the degree of user satisfaction and e-WOM among telecommunications users in North Cyprus. Data in Brief, 28, 104981. https://doi.org/10.1016/j.dib.2019.104981   DOI
3 Anggraeni, Y., Retnoningsih, D., & Muhaimin, A. (2019). The Influence of Satisfaction on Consumer Loyalty of Sumawe Coffee Malang. Agricultural Socio-Economics Journal, 19(1), 19-25.   DOI
4 Bhattacharya, C. B., & Sen, S. (2003). Consumer-company identification: A framework for understanding consumers' relationships with companies. Journal of Marketing, 67(2), 76-88. https://doi.org/10.1509/jmkg.67.2.76.18609   DOI
5 Brown, T. J., Barry, T. E., Dacin, P. A., & Gunst, R. F. (2005). Spreading the word: Investigating antecedents of consumers' positive word-of-mouth intentions and behaviors in a retailing context. Journal of the Academy of Marketing Science, 33(2), 123-138. https://doi.org/10.1177/0092070304268417   DOI
6 Cengiz, E., & Yayla, H. E. (2007). The effect of marketing mix on positive word of mouth communication: Evidence from accounting offices in Turkey. Innovative Marketing, 3(4), 73-86.
7 Chang, S. C., Tein, S. W., & Lee, H. M. (2010). Social capital, creativity, and new product advantage: An empirical study. International Journal of Electronic Business Management, 8(1), 43-45.
8 Coker, B. (2013). Antecedents to website satisfaction, loyalty, and word-of-mouth. JISTEM-Journal of Information Systems and Technology Management, 10(2), 209-218.   DOI
9 Giovanis, A. N., Zondiros, D., & Tomaras, P. (2014). The Antecedents of Customer Loyalty for Broadband Services: The Role of Service Quality, Emotional Satisfaction and Corporate Image. Procedia - Social and Behavioral Sciences, 148, 236-244. https://doi.org/10.1016/j.sbspro.2014.07.039   DOI
10 Ghozali, I. (2016). Multivariate Analysis Application with SPSS 19. Semarang, Indonesia: BP Universitas Diponegoro. [Indonesian].
11 Griffin, J. (2013). Customer loyalty. Jakarta: Erlangga Press. [Indonesian].
12 Hermawan, B., Basalamah, S., Djameren, A., & Plyriadi, A. (2017). Effect of Service Quality and Price Perception on Corporate Image, Customer Satisfaction and Customer Loyalty among Mobile Telecommunication Services Provider. IRA-International Journal of Management & Social Sciences, 8(1), 62-73.
13 Huda, S., & Syahrul, M. F. (2016). The Effect of Product Differentiation on the Creation of Word of Mouth in Unico Mart Customers, Performance. Journal of Management and Business Start-Up Bisnis, 1(4). [Indonesian].
14 Adi, P. H., Dhiaulhaq, M. I., & Novandari, W. (2019). Customer Satisfaction As The Moderating Variable of Customer Loyalty. Journal of Accounting, Management and Economics, 21(1), 13-22. [Indonesian].
15 Kotler, P., & Keller, K. L. (2012). Marketing Management (14th ed.). New Jersey: Prentice Hall International.
16 Jahanshahi, A. A., Gashti, M. A. H., Mirdamadi, S. A., Nawaser, K., & Khaksar, S. M. S. (2011). Study Effects of Customer Service and Product Quality on Customer Satisfaction and Loyalty. International Journal of Humanities and Social Science, 1(7), 253-260.
17 Joshua, T., & Haryadi, E. (2013). Analysis Pengaruh Brand Image, Price Perception and Service Quality on Customer Loyalty to Urban Kitchen Customers. Management Journal, 1(1), 13-27. [Indonesian].
18 Kasiri, L. A., Cheng, K. T. G., Sambasivan, M., & Sidin, S. M. (2017). Integration of standardization and customization: Impact on service quality, customer satisfaction, and loyalty. Journal of Retailing and Consumer Services, 35, 91-97.   DOI
19 Lee, H. J., & Seong, M. H. (2020). A Study on the Effects of Business Service Quality on Satisfaction, Commitment, Performance, and Loyalty at a Private University. Journal of Asian Finance, Economics and Business, 7(9), 439-453. https://doi.org/10.13106/jafeb.2020.vol7.no9.439   DOI
20 Li, F., & Du, T. C. (2017). The effectiveness of word of mouth in offline and online social networks. Expert Systems with Applications, 88, 338-351. https://doi.org/10.1016/j.eswa.2017.07.004   DOI
21 Liang, B., & Scammon, D. L. (2011). E-Word-Of-Mouth on Health Social Networking Sites: An Opportunity For Tailored Health Communication, Journal of Consumer Behaviour, 10(6).
22 Libai, B., Bolton, R., Bugel, M., de Ruyter, K., Gotz, O., & Risselada, H. (2010). Customer-To-Customer Interactions: Broadening The Scope Of Word Of Mouth Research. Journal of Service Research, 13(3), 267-282   DOI
23 Nurhasanah, N. (2010). Analysis of the Effect of Product Diversity, Service Quality and Customer Satisfaction on Customer Loyalty at PT. Hero Supermarket. Faculty of Economics and Business, Syarif Hidayatullah State Islamic University Jakarta. [Indonesian].
24 Lombart, C., & Louis, D. (2012). Consumer Satisfaction and Loyalty: Two Main Consequences of Retailer Personality. Journal of Retailing and Consumer Services, 19(6), 644-652. https://doi.org/10.1016/j.jretconser.2012.08.007   DOI
25 Muafa, I. W., Awal, M., Wahyudhi, C. A., Waas, S., & Noer, E. (2020, March). The effect of product quality and service quality on customer satisfaction in crocodile skin crafts industry. In IOP Conference Series: Earth and Environmental Science, 427(1), 012028.
26 Nguyen, D. T., Pham, V. T., Tran, D. M., & Pham, D. B. T. (2020). Impact of Service Quality, Customer Satisfaction and Switching Costs on Customer Loyalty. Journal of Asian Finance, Economics and Business, 7(8), 395-405. https://doi.org/10.13106/jafeb.2020.vol7.no8.395   DOI
27 Nuraini, A. (2014). The Influence of Image, Services, Service Accessories, Product Diversity and Customer Value on Customer Loyalty (Studies on Customers of BPD DIY Syariah Yogyakarta). Jurnal Ekonomi dan Bisnis Islam, IX(1). [Indonesian]
28 Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985). A Conceptual Model of Service Quality and Its Implications for Future Research. Journal of Marketing, 49(4), 41-50. https://doi.org/10.1177/002224298504900403   DOI
29 Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A Multiple-Item Scale for Measuring Consumer Perceptions of Service Quality. Journal of Retailing, 64(1), 12-40.
30 Liu, C. H. S., & Lee, T. (2016). Service Quality and Price Perception of Service: Influence on Word-of-Mouth and Revisit Intention. Journal of Air Transport Management, 52, 42-54.   DOI
31 Ranjbarian, B., Sanayei, A., Kaboli, M. R., & Hadadian, A. (2012). An Analysis of Brand Image, Perceived Quality, Customer Satisfaction and Repurchase Intention in Iranian Department Stores. International Journal of Business and Management, 7(6), 40-48.
32 Pauwels, K., Aksehirli, Z., & Lackman, A. (2016). Like the ad or the brand? Marketing Stimulates different electronic word-of-mouth content to drive online and offline performance. International Journal of Research in Marketing, 33, 639-655.   DOI
33 Powers, T. L., Jack, E. P., & Choi, S. (2018). Price and Quality Value Influences on Discount Retail Customer Satisfaction and Loyalty. Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behaviour, 31, 1-19.
34 Prasetyo, E. (2007). The Effect of Product and Service Diversity on Consumer Loyalty at Assgros Sartika Gemolong Supermarkets in Sragen Regency. Semarang State University, Semarang. [Indonesian]
35 Razak, I., Nirwanto, N., & Triatmanto, B. (2016). The Impact of Product Quality and Price on Consumer Satisfaction with the Mediator of Customer Value. Journal of Marketing and Management Research, 30, 59-68.
36 Rokonuzzaman, M. D., Harun, A., Al-Emran, M. D., Victor, R., & Prybutok, V. (2020). An Investigation into The Link Between Consumer's Product Involvement and Store Loyalty: The Roles of Shopping Value Goals and Information Search As The Mediating Factors. Journal of Retailing and Consumer Services, 52. https://doi.org/10.1016/j.jretconser.2019.101933   DOI
37 Sari, N., & Setiyowati, S. (2017). The Influence of Product Diversity and Service Quality on Consumer Satisfaction in PB Swalayan Metro. Darmajaya Institute of Informatics and Business. Bandar Lampung. [Indonesian].
38 Sobel, M. E. (1982). Asymptotic Confidence Intervals for Indirect Effect in Structural Equation Models. In: S. Leinhardt (Ed.), Sociological Methodology 1982 (pp. 290-312). Washington, DC: American Sociological Association.
39 Setyowati, E., & Wiyadi, W. (2016). The Influence of Service Quality, Price, and Brand Image on Customer Loyalty with Customer Satisfaction as a Mediating Variable. Competitiveness Journal of Resource Management Economics, 18(2), 102-112.
40 Shi, Y., Prentice, C., & He, W. (2014). Linking Service Quality, Customer Satisfaction and Loyalty in Casinos, Does Membership Matter? International Journal of Hospitality Management, 40(7), 81-91. https://doi.org/10.1016/j.ijhm.2014.03.013   DOI
41 Solimun, S., & Fernandes, A. A. R. (2018). The Mediation Effect of Customer Satisfaction in the Relationship between Service Quality, Service Orientation, and Marketing Mix Strategy to Customer Loyalty. Journal of Management Development, 37(1), 76-87. https://doi.org/10.1108/JMD-12-2016-0315   DOI
42 Song, H. J., Wang, J. H., & Han, H. (2019). Effect of Image, Satisfaction, Trust, Love, and Respect on Loyalty Formation for Name-Brand Coffee Shops. International Journal of Hospitality Management, 79(5), 50-59. https://doi.org/10.1016/j.ijhm.2018.12.011   DOI
43 Sugiyono. (2016). Qualitative and Quantitative Research Methods R&D. Bandung: Alfabeta Press. [Indonesian].
44 Suhaily, L., & Soelasih, Y. (2017). What Effects Repurchase Intention of Online Shopping. International Business Research, 10(12), 113-122.   DOI
45 Susanti, F., & Ekazaputri, W. (2018). Service Performance and Satisfaction as Moderating Variables to Customer Loyalty at PT BPR Labuh Gunung Payakumbuh. Jurnal Benefita, 3(3), 433-333.   DOI
46 Tjahjaningsih, E., Handayani, D., Utomo, A. P., & Santosa, A. B. (2020). Creative Techniques of Contemporary Batik Motifs Based on History. International Journal of Organizational Innovation, 12(3).
47 Tang, C., Tang, Y., & Su, S. (2019). R&D Internationalization, Product Diversification and International Performance for Emerging Market Enterprises: An Empirical Study on Chinese Enterprises. European Management Journal, 37, 529-539   DOI
48 Tjahjaningsih, E., Handayani, D., Utomo, A. P., & Rozak, H. A. (2016). Development and Empowerment of Semarang Batik Craftsmen Based on Assistance Strategy of Fractal Batik in Then Effort to Build Sustainable Competitive Advantage. International Journal of Applied Business and Economic Research, 14(13), 8853-8866.
49 Tjahjaningsih, E., Handayani, D., Utomo, A. P., & Rozak, H. A. (2017). Creative Technique Strategy Based on the Technique of Tie Dye and Smock Using Natural Colouring to Improve the Performance of the Craftsmen of Written Batik in Semarang. International Journal of Economic Research, 14(12), 91-103.
50 Tsai, C. H., Chiung, C., & Tan, M. J. E. (2017). The Cause and Effects of Word of Mouth from Consumer Intention and Behavior Perspective: A SEM Model Approach. Journal of Economic and Social Thought, 4(2), 212-231.
51 Tran, V. D., & Le, N. M. T. (2020). Impact of Service Quality and Perceived Value on Customer Satisfaction and Behavioral Intentions: Evidence from Convenience Stores in Vietnam. Journal of Asian Finance, Economics and Business, 7(9), 517-526. https://doi.org/10.13106/jafeb.2020.vol7.no9.517   DOI
52 Utama, M. B., & Ngatno, N. (2017). The Effect of Product Diversity and Service Quality on Repurchase Decisions through Customer Satisfaction as an Intervening Variable (Study on Gelael Mall Ciputra Semarang Consumers). Journal of Business Administration Science, 6(3). [Indonesian]
53 Wilujeng, S., & Mudzakkir, M. F. (2015). The Influence of Product Diversity on Customer Satisfaction at Indomaret Modern Stores, Sukun District, Malang City. Universitas Kanjuruan Malang, Indonesia. [Indonesian].
54 Walter, N., Cleff, T., & Chu, G., (2013). Brand Experience's influence On Customer Satisfaction and Loyalty: A Mirage in Marketing Research. International Journal Management Research and Business Strategy, 2(1), 130-144.