The Effect of Marketing Mix and Service Performance to Customer Loyalty Through Customer Satisfaction

Abstract

This paper aims to investigate the mediating effects of service performance and customer satisfaction on the relationship between marketing mix and the customer loyalty in the customer business rates of PT Perusahaan Listrik Negara (Persero) Samarinda Area. Based on a sample of 181 customers and using structural equation modeling approach, the one dimensions of customer convenience are found to have positive effects on service performance, the five dimension of customer solution – customer satisfaction, customer convenience – service performance, customer convenience – customer satisfaction, service performance – customer satisfaction and service performance – customer loyalty are found to have positive effects on customer business rate of PT Perusahaan Listrik Negara (Persero) Samarinda Area. The finding of the study suggest that service performance and customer satisfaction partially mediates the effects of customer solution and customer convenience on customer loyalty. The effects of customer convenience on customer satisfaction and customer loyalty are fully mediated by service performance.

Keywords: marketing mix, service performance, customer satisfaction, customer loyalty