The Effect of Service Quality and Customer Satisfaction as the Intervening Variable toward Customer Loyalty of PT X, Surabaya

Abstract

As the competition getting tighter every day, so does the challenge faced by company in daily basis. Not only to survive the harsh condition but also try to win it. One of the ways to win the competition is to have a satisfied customer. By having a satisfied customer, in the long run can lead to customer loyalty. This is the main goals for the company, has a loyal customers besides generating profit. As a distributor for chemical products, PT X which located in Surabaya must perform an excellent service to its customer to gain customer satisfaction and loyalty. The goal for this research is to find the effect of Service Quality (X) toward Customer Loyalty (Z) using Customer Satisfaction (Y) as the intervening variable. The sample are 50 customers choose for certain specification. Path analysis used to analyse the data using SPSS 22.0. The result of this study found that Service Quality and Customer Satisfaction have a significant effect toward Customer Loyalty, but Customer Satisfaction is not a good intervening variable in between Service Quality and Customer Satisfaction.