The Influence of Word of Mouth and Service Quality on Customer Loyalty through Customer Satisfaction at The Jayakarta Mountain Resort Cisarua Bogor

Abstract

Background: In the highly competitive hospitality sector in Bogor Regency, The Jayakarta Mountain Resort Cisarua Bogor faces below-optimal occupancy rates and low customer satisfaction and loyalty. This study examines the influence of word-of-mouth (WOM) and service quality on customer loyalty, with customer satisfaction as an intervening variable. A quantitative descriptive-verification approach was employed, using purposive sampling to collect data from 150 respondents. Data were analyzed using path analysis and the Sobel test with SPSS version 25. The results show that WOM and service quality have a positive and significant effect on customer satisfaction, which in turn mediates their impact on customer loyalty. The coefficient of determination indicates that 86.6% of the variation in customer loyalty is explained by WOM, service quality, and customer satisfaction. The findings suggest that enhancing customer satisfaction is crucial for strengthening the effect of WOM and service quality on loyalty. Resort management should therefore prioritize customer-oriented promotional strategies, improve service responsiveness, and strengthen loyalty programs.

Purpose: This study aims to examine the relationship between word of mouth (WOM), service quality, and customer loyalty, as well as to determine the role of customer satisfaction as an intervening variable

Methodology: The research employs a quantitative descriptive-verificative approach using purposive sampling with a total of 150 respondents. Data were analyzed using path analysis and the Sobel test with the assistance of SPSS version 25.

Finding: The findings reveal that both word of mouth (WOM) and service quality have a positive and significant effect on customer satisfaction, which subsequently enhances customer loyalty. These factors exert both direct and indirect effects on loyalty through customer satisfaction. The coefficient of determination indicates that WOM, service quality, and customer satisfaction explain 86.6% of the variation in customer loyalty. The Sobel test further confirms that customer satisfaction acts as a significant mediating factor.

Limitation: This study is limited to one hotel, The Jayakarta Mountain Resort Cisarua Bogor, which may restrict the generalization of findings to other hotel contexts. Future research could include a broader range of hotels or regions to provide a more comprehensive understanding of the studied relationships.

Originality: This study contributes to hospitality management literature by empirically proving the mediating role of customer satisfaction in the relationship between WOM, service quality, and loyalty. It emphasizes the strategic importance of improving service responsiveness and customer-oriented promotional efforts to build sustainable customer loyalty in the resort industry.