The Effect of Service Quality and Corporate Image on Customer Loyalty: The Mediating Role of Customer Satisfaction

Elisabet Tambunan; Mery Lani Purba; Marupa Siregar; Roberto Roy Purba; Hanna Khan; Anastasia Manalu

doi:10.61255/jeemba.v4i1.852

Authors

Elisabet Tambunan Universitas Sari Mutiara, Indonesia
Mery Lani Purba Universitas Sari Mutiara, Indonesia
Marupa Siregar Universitas Sari Mutiara, Indonesia
Roberto Roy Purba Universitas Sari Mutiara, Indonesia
Hanna Khan Universitas Sari Mutiara, Indonesia
Anastasia Manalu University Putra Malaysia, Malaysia

DOI:

https://doi.org/10.61255/jeemba.v4i1.852

Keywords:

Service Quality, Corporate Image, Customer Satisfaction, Customer Loyalty, Banking

Abstract

Purpose: This study examines the effects of service quality and corporate image on customer loyalty, with customer satisfaction as a mediating variable, in the banking sector in North Sumatra, Indonesia. The study is grounded in SERVQUAL theory, Expectation-Confirmation Theory (ECT), and Relationship Marketing Theory to explain the mechanisms of loyalty formation.

Design/methodology/approach: A quantitative explanatory design was employed using a cross-sectional survey of 210 active bank customers selected through purposive sampling. Data were analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM) to test both direct and indirect relationships among the constructs.

Findings: The results indicate that service quality has a significant positive effect on customer loyalty (β = 0.393) and customer satisfaction (β = 0.795). Corporate image significantly influences customer satisfaction (β = 0.343) but does not directly affect customer loyalty (β = −0.043). Customer satisfaction significantly affects customer loyalty (β = 0.182). Mediation analysis shows that customer satisfaction does not mediate the relationship between service quality and customer loyalty, but significantly mediates the relationship between corporate image and customer loyalty.

Research implications/limitations: This study contributes to theory by demonstrating that customer satisfaction acts as a selective mediator, distinguishing between functional and perceptual antecedents of loyalty. However, the cross-sectional design, regional sample, and reliance on self-reported data limit generalizability and causal inference.

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