The Relationship between Service Quality, Customer Satisfaction and Loyalty in Restaurant Business in East Java

Abstract

The aim of this research is to analyze the relationship between service quality and customer satisfaction as well as service quality and customer loyalty in restaurant business. The sampling technique utilized in this research is purposive sampling. There are 100 respondents taken as the sample of this research. The analysis method uses Service Quality (SERVQUAL) analysis and cartesius diagram. Service Quality (SERVQUAL) analysis result demonstrates that the service quality dimensions consisting of responsiveness, assurance, empathy, and tangible aspects are able to satisfy customers; meanwhile, reliability aspect does not satisfy customers since the gap result is negative. The relationship between service quality and customer loyalty is described in cartesius diagram. Reliability dimension is in A quadrant which means that restaurant management should improve their reliability. Assurance, tangible, and empathy are included in B quadrant which imply that restaurant management needs to keep their performance; meanwhile, responsiveness is in C quadrant which indicates that responsiveness is a low priority variable.