The mediation effect of customer satisfaction in the relationship between service quality, service orientation, and marketing mix strategy to customer loyalty

Abstract

Purpose

The purpose of this paper is to investigate the mediation effect of customer satisfaction in the relationship between service quality, service orientation, and marketing mix strategy to customer loyalty, in a study in Telkomsel-Indonesia. The product used in this research will take the telecommunication service product categories with a number of products available in the market. In this research, the telecommunication service products of Telkomsel with various features as the research objects were studied.

Design/methodology/approach

The population of this research is Telkomsel customers who use the products of Halo, As and Simpati, domiciled in Malang, 2016. Since it was impossible to get the exact number of customers, the population in this study is infinite. The study had a sample size of 200 respondents. This research uses the structural equation modeling (SEM) analysis techniques along with AMOS methods.

Findings

The quality of service, service orientation, and strategy marketing mix applied by the company are not all variables can directly affect customer loyalty, but must first going through satisfaction. Which means that companies must first need to understand what the customer needs through variable service quality, service orientation, and marketing mix strategy so that the customers feel loyal when the level of satisfaction is resolved. The service quality provided by the telecommunications industry needs to be improved in order to improve customer satisfaction and loyalty of telecommunications services, especially for Telkomsel in Malang.

Originality/value

Originality for this paper shows: mediation effect (using the Sobel test) customer satisfaction on the effect of service quality, service orientation and marketing mix strategy to customer loyalty; location of the study (no previous research for this relationship): telecommunication services in Malang, Indonesia.

Citation

Solimun, S. and 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, Vol. 37 No. 1, pp. 76-87. https://doi.org/10.1108/JMD-12-2016-0315