THE INFLUENCE OF SERVICE QUALITY, FOOD QUALITY, AND AMBIENCE TOWARDS CUSTOMER LOYALTY WITH CUSTOMER SATISFACTION AS THE MEDIATING VARIABLE: (A CASE OF NANNY’S PAVILLON SUMMARECON MAL BEKASI)

Abstract

The restaurant industry in Indonesia has gradually grown, affecting the increase in number of restaurants and level of competition within the industry. The declination of visitors in Nanny’s Pavillon Summarecon Mal Bekasi for the period of August – October 2014 becomes a concern for the researcher to find the determinant factors. Previous researches deemed customer satisfaction and loyalty as important for a restaurant. Thus, this study’s objective is to find the influence between service quality, food quality, and ambience towards customer loyalty with a mediating variable of customer satisfaction. Questionnaire was taken from previous studies and used as the tool to collect primary data from the restaurant customers. The sample consisted of 385 respondents who were chosen using the convenience sampling technique. The primary data were then analyzed using SPSS 16.0 and AMOS 18.0. SEM analysis was applied in this research to test the proposed model and hypotheses. The result concludes that service quality, food quality, and ambience influence the customer satisfaction which then affects the customer loyalty. It was also found that service quality, food quality, and ambience have an indirect effect towards customer loyalty. Restaurants should pay more attention to the quality of its service, food, and ambience to gain a higher level of satisfaction which in turn creates customer loyalty.