The influence of service quality on customer loyalty mediated by customer satisfaction (Study at PT WOM Finance Medan Branch 1)

##plugins.themes.academic_pro.article.sidebar##

Published Oct 8, 2025
https://doi.org/10.35335/enrichment.v15i4.2368
Download
PDF
Statistic

Downloads

Download data is not yet available.
Vol. 15 No. 4 (2025): October: Management Science And Field

##plugins.themes.academic_pro.article.main##

Arif Wahyudin
Krida Wacana Christian University, Indonesia
Saparso Saparso
Krida Wacana Christian University, Indonesia

Abstract

This research examines the influence of service quality and customer satisfaction on customer loyalty at PT. WOM Finance Medan 1, with customer satisfaction positioned as a mediating variable. The study is motivated by the company’s ongoing challenge to maintain customer retention amidst increasingly competitive conditions in the financing industry. Employing a quantitative research design, data were collected through a survey of 85 respondents and analyzed using Structural Equation Modeling (SEM) with the Partial Least Squares (PLS) approach via SmartPLS version 4. The results reveal that: (1) service quality has a significant positive effect on customer loyalty (t-statistic = 2.780, p-value = 0.005); (2) customer satisfaction significantly influences customer loyalty (t-statistic = 4.757, p-value = 0.000); (3) service quality exerts a significant positive impact on customer satisfaction (t-statistic = 15.443, p-value = 0.000); and (4) service quality, when mediated by customer satisfaction, does not significantly affect customer loyalty (t-statistic = 1.702, p-value = 0.089). These findings underscore the critical role of consistently enhancing service quality as a strategic driver of customer satisfaction and loyalty. The study offers practical insights for PT. WOM Finance and similar financial institutions in developing effective service improvement strategies to strengthen long-term customer relationships and competitive advantage. For PT. WOM Finance Tangerang Branch, the results of this study indicate the need to focus on improving aspects of service quality that directly affect customer loyalty. Based on the research results, PT. WOM Finance Tangerang Branch needs to prioritize improving service quality because it has been proven to have a significant influence on customer loyalty, both directly and through customer satisfaction. Improving service quality can be done by providing consistent, friendly, and responsive service to build long-term relationships with customers.


 

##plugins.themes.academic_pro.article.details##

How to Cite
Wahyudin, A., & Saparso, S. (2025). The influence of service quality on customer loyalty mediated by customer satisfaction (Study at PT WOM Finance Medan Branch 1). Enrichment : Journal of Management, 15(4), 380-389. https://doi.org/10.35335/enrichment.v15i4.2368

References

Alfia Febriatu Sholikah, Hadita (2023). The Influence of Service Quality on Mie Gacoan Customers in East Bekasi, Jurnal Economina Vol. 2 No. 2, February 2023.
Ardhian, D., & Febriani, D. (2022). Complaint Handling Management in Increasing Customer Loyalty. Journal of Business Management and Innovation, 10(2), 110–119.
Arista Natia Afriany, Nindya Yuliana, Dewi Septiawati, Elsa Indra Saputri, Farez Ardiansyah (2024), Improving Service Quality: Implementation of Excellent Service at the Yogyakarta City Investment and Licensing Office, COMSEP Journal of Community Service Vol. 5 No. 1, January 2024, pp. 50–54, Universitas PGRI Yogyakarta.
Arnita Febrina Puryatama, Tiyas Nur Haryani (2020), Excellent Service Through the Implementation of Indonesian Public Service Malls, Journal of Government Studies Vol. 3 No. 1, April 2020, Sebelas Maret University.
Barata A. A (2023), Fundamentals of Excellent Service, Jakarta: PT. Elek Mediakomputindo.
Bastiar, Z (2010). Excellent Service in Building Customer Loyalty, Managerial.
Cohen, J. (1988). Statistical Power Analysis for the Behavioral Sciences (2nd ed.). Lawrence Erlbaum Associates.
Fifin Anggraini, Anindhyta Budiarti (2020), The Effect of Price, Promotion, and Service Quality on Customer Loyalty Mediated by Customer Satisfaction among Gojek Consumers, JUPE Vol. 8 No. 3, 2020, 86-94, STIESIA Surabaya.
Hair, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., & Danks, N. P. (2021). Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R: A Workbook. Springer Nature.
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135.
Gilang Pratama Hafidz, Ririn Ulfanih Muslimah (2023), The Effect of Service Quality, Brand Image, Customer Trust, and Customer Satisfaction on Customer Loyalty to Herbalife Products, JIMEA Vol. 7 No. , 2023, Esa Unggul University.
Gina Alhanani, Budi Santoso (2022), "The Impact of Excellent Service on Customer Satisfaction at Strawberry Salon," Journal of Research and Development in Science and Humanities Vol. 6 No. 3, 2022, Muhammadiyah University of Jember.
Ghozali, Iman, and Hengky Latan. (2025). Partial Least Squares: Concepts, Techniques, and Applications Using the SmartPLS 3.0 Program. 2nd Edition. Semarang: Publishing Agency - Diponegoro University.
Gunawan, H., & Putri, N. R. (2023). The Role of Customer Satisfaction as a Moderating Variable in the Relationship between Service Quality and Loyalty. Journal of Applied Economics and Business, 8(1), 51–60.
Kotler, P., & Keller, K. L., 2016, "Product Quality and Price on Customer Loyalty Through Satisfaction," Marketing Management (14th ed.), New Jersey: Pearson Premier Hall, Inc.
Latan, H., & Noonan, R. (2017). Partial Least Squares Path Modeling: Basic Concepts, Methodological Issues, and Applications. Springer.
Nugroho, D., & Sari, M. (2023). Service Professionalism and Its Impact on Customer Loyalty in the Financing Industry. Journal of Economics and Management, 18(2), 91–101.
Putri, M. A., & Siregar, R. A. (2023). Customer Satisfaction as a Moderating Variable on Service Quality and Customer Loyalty Relationships. Journal of Management and Innovation, 11(1), 45–55.
Ringle, C. M., Sarstedt, M., Mitchell, R., & Gudergan, S. P. (2022). Partial least squares structural equation modeling in HRM research. The International Journal of Human Resource Management, 33(3), 123–152.
Rio Puta (2021), Determination of Customer Satisfaction and Loyalty to Product Quality, Brand Image, and Price Perception, JEMSI Vol. 2 Issue 4, March 2021.
Sambodo Rio Sasongko (2021), Factors of Customer Satisfaction and Loyalty (Literature Review of Community Management), JIMT Vol. 3, Issue 1, September 2021, Universitas Terbuka.
Sarstedt, M., Hair, J. F., Cheah, J. H., Becker, J. M., & Ringle, C. M. (2022). How to specify, estimate, and validate higher-order constructs in PLS-SEM. Australasian Marketing Journal, 30(3), 222–231.
Tenenhaus, M., Vinzi, V. E., Chatelin, Y. M., & Lauro, C. (2005). PLS path modeling. Computational Statistics & Data Analysis, 48(1), 159–205.
Widyaningrum, I., & Wibowo, A. (2022). The Effect of Service Quality on Customer Loyalty in Non-Bank Financial Institutions. Journal of Management and Services Marketing, 15(1), 33–45.
Willyanto Agiesta, Achmad Sajidin, Perwito (2021). The Effect of Service Quality and Customer Satisfaction on Customer Loyalty of the Bandung Raya Local Train. Jurnal Ilmiah MEA (Management, Economics, and Accounting) Vol. 5 No. 2, 2021.
Zukarnaen, W, Amin, N. N (2018), The Effect of Pricing Strategy on Consumer Satisfaction, Jurnal Ilmiah MEA (Management, Economics, & Accounting), 2(1), 106–128.