RELATIONSHIPS OF SERVICE QUALITY, SERVICE VALUE AND CUSTOMER LOYALTY - A STUDY OF DOMESTIC AIRLINE SERVICE

Abstract

For several decades, improving service quality has been considered the best way to enhance customer satisfaction that leads to increase customer loyalty. However, customer satisfaction that is viewed as the most important factor to determine customer loyalty, does not always lead to success. Moving marketing from customer satisfaction orientation to customer value orientation has recently been being a central issue in service marketing. Given these situations, this study aims to explore the relationships between service quality, service value and customer loyalty. Its purpose is to test whether service value should be an alternative to determine customer loyalty beside customer satisfaction. Results of SEM analysis based on a sample of 308 passengers using airlines service in Ho Chi Minh City show that there are two factors of service quality with significantly positive impacts on customer loyalty through such an intermediary as service value.