Service Quality and Digital Experience: Effects on Loyalty Via Satisfaction at XYZ Finance Company
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This cross-sectional study examines the relationship between service quality and digital experience with customer loyalty as measured through the attitudes and intentions reported by respondents, either directly or through customer satisfaction, at XYZ Finance Company. A total of 77 customers were purposively selected from the Jakarta, Medan, and Balikpapan branches; data were analyzed with PLS-SEM, bootstrapping with 5.000 subsamples, PLSpredict, and CVPAT. Service quality (? = 0,368; p < 0,001) and digital experience (? = 0,272; p = 0,006) were positively and significantly associated with customer satisfaction, while customer satisfaction was positively and significantly associated with customer loyalty (? = 0,481; p < 0,001). Neither service quality nor digital experience had a statistically significant direct association with customer loyalty. However, both indirect associations through customer satisfaction were significant, indicating indirect-only mediation. The model explains 29,2% of the variance in customer satisfaction and 24,9% of the variance in customer loyalty. Although the model's prediction is better than the linear benchmark, the Q²predict of loyalty is only 0,004 and the three loyalty indicators have negative Q²predict, so their predictability is still limited. The findings are consistent with the evaluative mechanism of Expectancy-Disconfirmation Theory but do not fully test the theory or establish causality. The results only represent the perceptions and intentions of the respondents in the sample, not the actual refinancing behavior.
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