THE ROLE OF ELECTRONIC WORD OF MOUTH IN MODERATING THE INFLUENCE OF SERVICE QUALITY ON CUSTOMER LOYALTY (A STUDY AT EL LAGO BALI)

Authors

  • Hooky Surya Widarma Management, Faculty of Economics and Business, Udayana University
  • Ni Made Purnami Management, Faculty of Economics and Business, Udayana University

Abstract

Customer loyalty refers to a consumer's commitment to continue repurchasing the same product or service as a result of positive experiences or favorable impressions of the product or service. It reflects a consumer's tendency to repeatedly purchase preferred products or services. This study aims to examine and explain the effect of service quality on customer loyalty, as well as the moderating role of electronic word of mouth (e-WOM) in the relationship between service quality and customer loyalty at El Lago Bali. The sample consists of 100 respondents selected using purposive sampling. Data were collected through questionnaires, and the data analysis technique employed was Moderated Regression Analysis (MRA). The findings reveal that service quality has a positive and significant effect on customer loyalty, and electronic word of mouth effectively moderates the influence of service quality on customer loyalty.

References

Abror., Patrisia, D., Engriani, Y., Evanita, S., Yasri., & Dastgir, S. (2020). Service Quality, Religiosity, Customer Satisfaction, Customer Engagement and Islamic Bank's Customer Loyalty. Journal of Islamic Marketing, 11 (6), pp. 1691-1705.

Adnan. (2018). The Influence of Consumer Behavior on Morinaga Milk Purchasing Decisions in Lhokseumawe City. Visionary & Strategic Journal, 7 (2), pp.1-9.

Almira, R., & Putri, A. (2022). The Influence of Price, Product Quality, and E-Wom on Purchase Decision Shopee in Generation Z. Journal of Management Science and Research, 11 (7), p. 15.

Alshreef, M.A., et al. (2023). Analyzing the Influence of eWOM on Customer Perception of Value and Brand Love in Hospitality Enterprise. Sustainability, 15, pp. 1-18.

Armstrong. G., & Kotler, P. (2015). Marketing and Introducing Prentice Hall. Twelfth Edition. England: Pearson Education, Inc.

Atmaja, J. (2018). Service Quality and Customer Satisfaction Towards Loyalty at Bank BJB. Ecodemica Journal, 2 (1), pp. 49-63.

Belay, B.S. (2022). The Effectiveness of GRASP Strategy on Students' Reading Comprehension at the Eleventh Grade of SMAN 1 Balong Ponorogo in Academic Year 2021/2022. Eleven April Education Journal, 3(1), 2003-2005.

Databoks. (2023). The Majority of Internet Users in Indonesia Come from the Working Age Group. [Online] Available At: https://databoks.katadata.co.id/datapublish/2023/09/06/majority-of-internet-users-in-indonesia-asal-dari-kelompok-usia-pekerja#:~:text=Based on%20the%20age%2C%20majority%20or,year%20as%2014%2C69%25 [Accessed 20 June 2024].

Dewani, NPRG, & Rastini, NM (2021). The Role of Brand Image in Mediating the Influence of E-WOM on Consumer Intention to Make Gopay in Denpasar City. E-Journal of Management, 10 (2), pp. 105-124.

Dhasan, D., & Aryupong, M. (2019). Effects of Product Quality, Service Quality and Price Fairness on Customer Engagement and Customer Loyalty. ABAC Journal, 39(2), pp. 82-102.

Dhisasmito, PP, & Kumar, S. (2020). Understanding Customer Loyalty in the Coffee Shop Industry (A Survey in Jakarta, Indonesia). British Food Journal, 122(7), pp. 2253-2271.

Ellen, E., & Tunjungsari, HKK (2019). The Influence of Electronic Word Of Mouth (e-Wom) and Country Of Origin (Coo) on Purchase Intention; Through Brand Image Mediation on Nature Republic Products at Tarumanagara University. Journal of Managerial and Entrepreneurship, 1 (3), pp. 411-419.

Ferreira, J., Ferreira, C., & Bos, E. (2021). Spaces of Consumption, Connection, and Community: Exploring the Role of the Coffee Shop in Urban Lives. Geoforum, 119, pp. 21-29.

Fian, JA (2016). The Influence of Customer Satisfaction and Trust on Customer Loyalty of Auto 2000 Sungkono Surabaya. Journal of Management Science and Research, 5 (6), pp.1-18.

Firmansyah, MA (2020). Marketing Communications. East Java: CV. Qiara Media Publisher.

Gadhafi, M. (2015). The Influence of Electronic Word Of Mouth on Purchase Intention Mediated by Brand Image on Acer Laptop Products in Surabaya. Jurnal Perbanas, 1 (1), pp. 1-10.

Goyette, Isabelle. (2010). e-WOM Scale: Word-of-Mouth Measurement Scale for e-Services Context. Canadian Journal of Administrative Sciences, 27(1), pp. 5-23.

Ghozali, I. (2016). Multivariate Analysis Application with IBM SPSS 23 Program. Semarang: Diponegoro University Publishing Agency.

Ghozali, I. (2018). Multivariate Analysis Application with IBM SPSS 25 Program. 9th Edition. Semarang: Diponegoro University Publishing Agency.

Halim, F., Sherly., & Sudirman, A. (2020). Marketing and Social Media. Bandung: Media Sains Indonesia.

Hendrawan, D. & Anggraeni, R. (2020). Is the Loyalty Program Effective in Creating Loyalty Program Satisfaction and Store Loyalty? An Evidence from Indonesia Retail Industry. Journal of Management Applications, 18 (4) pp. 645-655.

Hermawan, AF (2017). The Influence of Customer Relationship Marketing on Customer Satisfaction and Loyalty (Survey on Garuda Indonesia Airlines Customers in Malang City). Doctoral Dissertation. Brawijaya University.

Hery. (2018). Introduction to Management. First Edition. Jakarta: PT Grasindo.

Huang, P.L., Lee, BCY, & Chen, C.C. (2019). The Influence of Service Quality on Customer Satisfaction and Loyalty in B2B Technology Service Industry. Total Quality Management and Business Excellence, 30 (13), pp. 1449-1465.

Immanuel, DM, & Maharia, MA (2020). Engaging Purchase Decision of Customers in Marketplace Channel: A Study of Fashion Online Retail. Journal of Business and Management, 7 (2).

Indrasari, M. (2019). Marketing and Customer Satisfaction. Surabaya: Unitomo Press.

Ismagilova, E., Dwidevi, Y. K., Slade, E., & Williams, M. D. (2017). Electronic Word of Mouth (eWOM) in the Marketing Context: A State of the Art Analysis and Future Directions. English: Springer.

Jusuf, DI (2018). Consumer Behavior in the Era of Online Business. Yogyakarta: Andi Publisher.

Juwaini, A., et al. (2022). The Role of Customer E-Trust, Customer E-Service Quality and Customer E-Satisfaction on Customer E-Loyalty. International Journal of Data and Network Science, 6, pp. 477-486.

Kanyama, J., Nurittamont, W., & Siripipatthanakul, S. (2022). Hotel Service Quality and Its Effect on Customer Loyalty: The Case of Ubon Ratchathani, Thailand during COVID-19 Pandemic. Journal of Management in Business, Healthcare, and Education (JMBHE), 1(2), pp. 1-20.

Kiseleva, EM, Nekrasova, ML, Mayorova, MA, Rudenko, MN, & Kankhva, VS (2016). International Review of Management and Marketing Special Issue on Management of Systems of Socio-Economic and Legal Relations in Modern Conditions of Development of Education and Society'The Theory and Practice of Customer Loyalty Management and Customer Focus in the Enterprise Activity. International Review of Management and Marketing, 6, 95-103.

Kotler, P. (2016). Marketing Management. Evanston: England: Pearson Education Limited.

Kotler, P., & Keller, K. L. (2016). Marketing Management 15th Edition. United Kingdom: Pearson Education, Inc.

Kotler, P. & Armstrong, G. (2018). Principles Of Marketing. United Kingdom: Pearson Education Limited.

Kotler, P. (2019). Marketing Management. Millennium Edition. Jakarta: Prenhalindo.

Kotler, P., & Keller, K.L. (2020). Marketing Management. Jakarta: Erlangga Publisher.

Kristiawan, TA, & Keni, K. (2020). The Influence of Packaging, Social Media Marketing and Electronic Word of Mouth on Purchase Decisions for Local Brand Clothing. DeReMa: Development of Research Management, 15 (2), pp. 244–256.

Lie, D., Sudirman, A., Efendi., & Butarbutar, M. (2019). Analysis of Mediation Effect of Consumer Satisfaction on The Effect of Service Quality, Price and Consumer Trust on Consumer Loyalty. International Journal of Scientific and Technological Research, 8(8), pp. 421-428.

Lite, L. (2017). Analysis of the Influence of Product Quality, Service Quality and Price on Consumer Satisfaction. AL-ULUM: Journal of Social Sciences and Humanities, 3 (1), pp. 357-372.

Mahendrayanti, M., & Wardana, IM (2021). The Effect of Price Perception, Product Quality, and Service Quality on Repurchase Intention. American Journal of Humanities and Social Sciences Research (AJHSSR), 5(1), pp. 182-188.

Manengal, B., Kalangi, JA, & Punuindoong, AY (2021). The Influence of Service Quality on Customer Satisfaction at Ando Tombatu Motorcycle Workshop. Productivity, 2 (1), pp. 42-46.

Mardo, SA (2016). Service Marketing Management. Yogyakarta: Deepublish.

Maslim, ASW, & Andayani, S. (2023). Application of Theory of Planned Behavior Method for Customer Trust Levels in Online Shopping Interests. JuSiTik: Journal of Information Communication Systems and Technology, 7 (1), pp. 7-14.

Musthofa, MA, Kurniati, RR, & Hardati, RN (2020). The Influence of Consumer Behavior on Digital Money Payment Systems (Study of Ovo Users in Malang City). JIAGABI (Journal of Business Administration), 9 (2), pp. 175-184.

Nabila, LB, & Riorini, SV (2023). The Effect of Customer Loyalty in The Coffee Shop Industry (A survey in Jakarta, Indonesia). Indonesian Multidisciplinary Journal, 2 (5), pp. 1-9.

Nafiisah, S., Nuringwahyu, S., & Krisdianto, D. (2021). The Influence of Service Quality and Product Testimonials on Social Media on Purchasing Decisions (Study at the Griya Ayu Gresik Cosmetics Store). JIAGABI (Journal of Business Administration), 10 (2), pp. 294-301.

Nofri, O., & Hafifah, A. (2018). Analysis of Consumer Behavior in Online Shopping in Makassar City. Minds Journal: Idea and Inspiration Management, 5 (1), pp. 113-132.

Novandy, MI, & Rastini, NM (2017). The Role of Customer Satisfaction in Mediating the Effect of Service Quality on Customer Loyalty (Case Study: Tiki Expedition Business in Denpasar City). E-Journal of Management, Udayana University, 7 (1), p. 412.

Obeidat, W. (2023). Rural and Traditional Cafes and Restaurants: a New Emerging Trend in Domestic Tourism. Worldwide Hospitality and Tourism Themes, 15(1), pp. 74-83.

Parasuraman, VA, Zeithmal., & Leonard L, Berry. (1998). Servqual A Multiple Item Scale For Meansuring Customer Perception of Service Quality. Journal of Relating.

Pereira, D., Giantari, NGK, & Sukaatmadja, IPG (2016). The Influence of Service Quality on Satisfaction and Customer Loyalty of Dadirah Cooperative in Dili Timor-Leste. E-Journal of Economics and Business, Udayana University, 5 (3), pp. 455-488.

Priansa, DJ (2017). Integrated Marketing Communications. Bandung: Pustaka Setia.

Putra, CF, Pangestuti, E., & Nuralam, IP (2018). The Influence of Service Quality on Customer Satisfaction and Loyalty. Journal of Business Administration, 61 (2), pp. 99-107.

Putra, FW, & Sulistyawati, E. (2018). The Role of Customer Satisfaction in Mediating the Effect of Service Quality on Customer Loyalty (Study at Bakmi Tungku Restaurant in Badung Regency). E-Journal of Management Unud, 7 (1), pp. 525-554.

Rahyuda, IK (2020). Business Research Method Based on The Research Pyramid. Denpasar: Sastra Utama.

Ramadhan, MA (2019). The Influence of Brand Image, Trust, and Commitment on Customer Loyalty of the GOJEK Online Transportation Application in Malang City. Journal of Management Science (JIMMU), 4 (2), pp. 153-169.

Rizkiyah, K., Nurmayanti, L., Macdhy, RDN, & Yusuf. (2021). The Influence of Digital Payment on Consumer Behavior of Users of the OVO Digital Payment Platform. Management Insight: Scientific Journal of Management ISSN, 16 (1), pp. 107-126.

Sawitri, IA, & Rahanatha, GB (2019). The Influence of Green Marketing and Brand Image on Customer Loyalty. E-Journal of Management, 8 (8), pp. 5267-5284.

Sugiyono. (2016). Quantitative, Qualitative and R&D Research Methods. 24th edition. Bandung: Alfabeta.

Sugiyono. (2017). Quantitative, Qualitative, and R&D Research Methods. Bandung: Alfabeta.

Sugiyono. (2019). Quantitative and Qualitative Research Methodology and R&D. Bandung: Alfabeta.

Surahman, IGN, Yasa, PNS, & Wahyuni, NM (2020). The Effect of Service Quality on Customer Loyalty Mediated By Customer Satisfaction in Tourism Villages in Badung Regency. JAGADITHA Journal of Economics & Business, 7 (1), pp. 46-52.

Tarigan, EDS, Wijaya, M., & Marbun, P. (2020). The Influence of Lifestyle, Physical Environment, and Menu Variety on Customer Loyalty through Customer Satisfaction in the Coffee Shop. International Journal of Research and Reviews, 7(3), pp. 102-111.

Trisnadewi, PAD, & Ekawati, NW (2017). The Influence of Consumer Satisfaction Mediating Price on Consumer Loyalty in Shopping at Online Florists in Denpasar. E-Journal of Management, 6 (4), pp. 2076-2104.

Taufik, A., Santoso, S., Fahmi, MI, Restuanto, F., & Yamin, S. (2022). The Role of Service and Product Quality on Customer Loyalty. Journal of Consumer Sciences, 7(1), pp. 68-82.

Tjiptono, Fandy., & Chandra, Gregorius. (2016). Service Quality & Satisfaction. 4th Edition. Yogyakarta: Andi.

Unpapar, AA (2021). The Moderating Role of Electronic Word of Mouth (eWOM) in the Influence of Perceived Value on Repurchase Intention. Indonesian Journal of Business Analytics, 1 (1), p. 71-90.

Utama, MS (2016). Application of Quantitative Analysis for Economics and Business. Denpasar: CV Sastra Utama.

Wardhana, A. (2024). Consumer Behavior in the Digital Era. Purbalingga: Eureka Media Aksara.

Widiastuti, S. (2022). Understand the Difference Between Cafe, Bistro, Shop, Eateries, and Restaurants Before Deciding on the Interior Design. Website: https://desain-grafis-s1.stekom.ac.id/informasi/baca/Pahami-dulu-Bedanya-Cafe-Bistro-Kedai-Rumah-Makan-dan-Restoran- Sebelum-Putuskan-Disain-Interiornya/b1799b4a15006957f6f739815a86ec14da5c6771

Widodo, S., Harini, C., & Haryono, AT (2018). The Influence of Price, Brand Image and Product Quality on Customer Loyalty with Customer Satisfaction as an Intervening Variable (Study on Housewives Using Downy Products in RW XXII Perum Puri Dinar Elok Meteseh Semarang). Journal of Management, 4 (4).

Widyanto, I., & Albetris, A. (2021). The Influence of Brand Image, Price, Promotion and Electronic Word of Mouth on Purchasing Decisions of Wardah Compact Powder Products at PT Pargon Technology and Innovation (Case Study of Students of the Faculty of Economics, STIE Graha Karya Muara Bulian). J-MAS (Journal of Management and Science), 6 (1), pp. 138-145.

Wilson, A., Zeithaml, V., Bitner, J. M., & Gremeler, D. D. (2016). Services Marketing Integrating Customer Focus Across the Firm. Third Edition. New York: McGraw-Hill Education.

Wulandari, H., & Rahyuda, IK (2016). The Role of Customer Satisfaction in Mediating Price and Customer Loyalty. E-Journal of Management, 5 (5), pp. 2871-2897.

Wulandari, IS (2020). Utilization of E-Wom in Marketing Communication Activities of Aice Ice Cream Products. Journal of Strategic Communication, 11 (1), pp. 46-50.

Zeithaml, V. A., Bitner, M. J., & Gremler, D. D. (2017). Service Marketing Integrating Customer Focus Across the Firm. Seventh Edition. New York: McGraw-Hill Education.

Downloads

Published

2025-01-24

Issue

Section

Articles