The Mediating Role of Customer Satisfaction in The Relationship Between Service Quality and Loyalty

Abstract

Customer loyalty has become a strategic imperative for businesses in the service sector, especially in highly competitive environments such as independent cafés. This study investigates the mediating role of customer satisfaction in the relationship between perceived service quality and customer loyalty. Grounded in the Stimulus–Organism–Response (S–O–R) framework and Expectancy–Disconfirmation Theory, the research explores how emotional and evaluative responses to service experiences influence behavioral intentions. Data were collected from 120 repeat customers of Café Joempa Rasa in Pekanbaru, Indonesia, using a structured questionnaire based on SERVQUAL dimensions. The results, analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM), revealed that customer satisfaction significantly mediates the effect of service quality on loyalty, confirming that loyalty is not merely a function of service delivery but is shaped through affective experiences. These findings suggest that independent cafés should prioritize satisfaction management as a strategic driver of retention, by fostering service experiences that are not only reliable but emotionally resonant. The study contributes to service marketing literature by contextualizing the service-satisfaction-loyalty link in a localized, culturally embedded setting, offering practical insights for small business service design and customer relationship strategies.