ANALYSIS OF THE IMPACT OF SERVICE QUALITY ON CUSTOMER SATISFACTION AND CUSTOMER LOYALTY (CASE STUDY: GOFOOD)

Abstract

Online food delivery applications have become a common E-Commerce business sector in Indonesia. Many people use GoFood because it helps customers to search, find, and purchase food they want easily. Prior studies indicated that service quality may affect customer satisfaction and loyalty in using online businesses. The objective of this research is to investigate the correlation between service quality and customer satisfaction and the mediating effect of customer satisfaction toward customer loyalty in the context of GoFood in Indonesia. This research adopted the SERVQUAL method with modification. The service quality dimensions encompass reliability, responsiveness, assurance, system availability, and security. To collect the data, this research uses the quantitative method in the form of an online questionnaire which is shared with 152 respondents who are determined with the purposive sampling technique. The Partial Least Squares Structural Equation Modelling (PLS-SEM) method was applied through SmartPLS-3 software to analyze the data and test the correlation among variables. The results reveal that reliability, responsiveness, assurance, system availability, and security have a positive and significant effect on customer satisfaction. In addition, the results also show that customer satisfaction has a partial mediating effect on customer loyalty. This research can be a guideline and foundation for online food delivery companies to improve their service quality to enhance customer satisfaction and loyalty rates.