PATH ANALYSIS ON THE INFLUENCE OF SERVICE QUALITY ON THE CUSTOMER LOYALTY OF GLOBAL INSPIRA INDONESIA USING CUSTOMER SATISFACTION AS INTERVENING MODEL

Abstract

This research is aimed at determining the relationship between service quality and customer loyalty in Global Inspira Indonesia. More specifically, this study aims to prove whether service quality affects customer loyalty directly or indirectly through customer satisfaction. The object of this research is Global Inspira Indonesia, a travel agency in Madiun, East Java, with its operational on the field of Hajj and Umra. This study used quantitative method. The population used is Global Inspira Indonesia customers who make repeated purchase, as well as customers whose purchases are based on a recommendation from other customers. The number of samples in this study is 60 people. This number is obtained using probability convenient sampling method. The data used in this study are secondary and primary data. Secondary data consist of literature reviews which discuss service quality, customer satisfaction, and customer loyalty. On the other hand, primary data are obtained from questionnaire. Path analysis is used as data analysis method. Research result reveals that service quality has a direct effect on customer satisfaction, which then directly influences Global Inspira Indonesia’s customer loyalty. However, service quality does not have a significant direct effect on the customer loyalty of Global Inspira Indonesia.