How Service Quality Affects Customer Loyalty in the Travel Agency: The Effects of Customer Satisfaction, Service Recovery, and Perceived Value

Abstract

This study develops a conceptual model of the effects of service quality on customer loyalty that reflects the mediating role of customer satisfaction and the moderating role of service recovery and perceived value, and applies this model to the travel industry. A survey and analysis confirm that customer satisfaction is positively influenced by service quality, and customer loyalty is positively influenced by customer satisfaction. Furthermore, customer loyalty is indirectly influenced by service quality through the mediator of customer satisfaction. The relationship between service quality and customer satisfaction is found to be stronger for customers who have a positive experience of service recovery; and the correlation between customer satisfaction and customer loyalty is stronger for customers who perceive high service value.

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