FACTORS AFFECTING CUSTOMER LOYALTY MEDIATED BY CUSTOMER SATISFACTION: A STUDY OF DINING EXPERIENCE AT THE CAFES IN GREATER JAKARTA

Abstract

Purpose – The purpose of this research is to identify the influence of atmosphere and service quality to customer loyalty through customer satifaction as a mediating variable. Design/Methodology/Approach – This research is used quantitative method, collecting the data, and distributed the questionnaire as the instrument tool. By using snowball sampling technique, the questionnaire filled up by 252 respondents that have dining experience at the cafés and live in Greater Jakarta. The data collected were analyzed with the Structural Equation Modelling. Findings – This research revealed that factors affecting customer loyalty mediated by customer satisfaction. Which factors are atmosphere and service quality. Originality – This research was the first research that merge the variable atmosphere and service quality influencing customer loyalty through customer satisfaction as a mediating variable that focused on cafes located in Greater Jakarta.