The Impact of Service Quality and Trust on Customer Loyalty, with Customer Satisfaction as Mediating Variable, at CV. Aulia Berkah Utama

Abstract

This study aims to analyze the influence of service quality and customer trust on customer loyalty, with customer satisfaction serving as a mediating variable, at CV. Aulia Berkah Utama in Medan City. A quantitative approach was employed, utilizing a sample of 100 respondents who were customers of the company's AC service. Data collection was conducted via questionnaires, while data analysis utilized the Partial Least Squares (PLS) method with the aid of SmartPLS software. The results indicate that service quality and customer trust have a positive and significant impact on customer satisfaction. Customer satisfaction also has a positive and significant impact on customer loyalty. However, service quality and customer trust do not have a direct, significant impact on customer loyalty. Mediation analysis reveals that customer satisfaction mediates the influence of service quality and customer trust on customer loyalty. These findings suggest that enhancing customer loyalty is most effectively achieved by improving service quality and trust, thereby fostering customer satisfaction. Consequently, the company needs to continuously improve service quality, transparency, and professionalism to build customer satisfaction and loyalty in a sustainable manner.