The Effect of Service Quality on Customer Loyalty with Customer Satisfaction as a Mediation Variable at Permata Farma Pharmacy
Abstract
This study aims to describe and analyze the effect of service quality on customer loyalty through customer satisfaction as a mediating variable at Permata Farma Pharmacy. This study is an explanatory research using non-probability sampling, yielding 105 customer samples from Permata Farma Pharmacy. Data were collected using a questionnaire distributed to and completed by respondents who met the criteria. Data analysis in this study employed Structural Equation Modeling (SEM) with Partial Least Squares (PLS). The results indicate that service quality has a significant positive effect on customer loyalty; customer satisfaction has a significant positive effect on customer loyalty; and service quality has a significant positive effect on customer loyalty through customer satisfaction as a mediating variable. In terms of theoretical implications, this study strengthens the causal model linking service quality, customer satisfaction, and customer loyalty by confirming the role of customer satisfaction as a mediating variable, while also extending the generalizability of the model to the context of retail pharmacies in Indonesia. From a managerial perspective, these findings imply that Permata Farma Pharmacy needs to prioritize improving service quality particularly staff competence, the quality of interpersonal relationships, and the comfort of the pharmacy environment as a key strategy for building customer satisfaction, which in turn will foster sustainable customer loyalty.
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