Service Quality and Customer Relationship Management on Customer Loyalty: The Mediating Role of Customer Satisfaction

Abstract

Aims: The purpose of this study was to determine how customer satisfaction affected the relationship between service quality, customer loyalty, and customer relationship management among McDonald's generation Z customers in Malang. Problem Formulation: (1) Does service quality have a significant effect on customer satisfaction for McDonald's products? (2) Does customer relationship management have a significant effect on customer satisfaction for McDonald's products? (3) Does customer satisfaction have a significant effect on customer loyalty for McDonald's products? (4) Does service quality have a significant effect on customer loyalty for McDonald's products? (5) Does customer relationship management have a significant effect on customer loyalty for McDonald's products? (6) Does customer satisfaction significantly mediate the effect of service quality on customer loyalty for McDonald's products? (7) Does customer satisfaction significantly mediate the effect of customer relationship management on customer loyalty for McDonald's products? Study Design: This study employs a quantitative methodology that combines exploratory and descriptive research techniques. Place of Study: Respondents in this study are McDonald's consumers in Malang City who fall into the generation Z category. Methodology: The sampling approach used was nonprobability sampling, especially purposive sampling. Respondents in this study totaled 160 people, which is equal to the number of research items used, 32 multiplied by 5, yielding the result 160. The data was processed with smartPLS 3.0. Results: Based on the validity test results, each statement item is valid. Furthermore, hypothesis testing shows that service quality affects customer satisfaction, customer relationship management affects customer satisfaction, customer loyalty is not influenced by service quality, customer satisfaction affects customer loyalty, customer satisfaction can mediate the effect between service quality on customer loyalty, and customer satisfaction can mediate the effect of customer relationship management on customer loyalty. Conclusion: Although customer happiness serves as a mediator, it is not directly influenced by customer loyalty or customer relationship management. Instead, they have an indirect influence on it. This research contributes to our understanding of the elements that can influence McDonald's customer loyalty in Malang City. In summary, increasing customer happiness is the first step to increasing customer loyalty, which can then be achieved through better customer relationship management and service quality.