Determinants of Customer Satisfaction And it's Implication on Customer Loyalty of Budget Hotel in DKI Jakarta

Abstract

This study aims to prove and analyze the increase of customer loyalty through an increase in marketing mix mediated by customer satisfaction. The population in this study is Budget Hotel Customers in DKI Jakarta Province. The research method used in this research is descriptive survey method and explanatory survey with a minimum sample size of 200 respondents, with the data analysis method used is SEM (Structural Equation Modeling). Based on the results of the study, the following findings found that the marketing mix has a positive and significant direct effect on customer satisfaction and customer loyalty with contributions of 30.25% and 8.41%, customer satisfaction has a positive and significant effect on customer loyalty with a contribution of 18.49%, the marketing mix affects customer loyalty through customer satisfaction with a contribution of 5.76%, the marketing mix and customer satisfaction simultaneously have a positive and significant impact on customer loyalty with a contribution of 41%. Customer satisfaction partially has the most dominant influence on customer loyalty. Research findings also show that customer satisfaction is a partial mediating effect of the marketing mix on customer loyalty.Keywords: Marketing Mix, Customer Satisfaction,  Customer LoyaltyJEL Classifications: M30, M31, L83DOI: https://doi.org/10.32479/irmm.7144