Service Recovery on Loyalty through Customer Satisfaction at Fast Food Restaurant “X” in North Jakarta

Abstract

Fast food restaurant “X” has four competitors, which becomes challenges. Therefore, this restaurant can establish good relationships with customers, so they become loyal. Customer loyalty can be influenced by the three dimensions of service recovery through customer satisfaction and by customer satisfaction. Customer satisfaction can be influenced by the three dimensions of service recovery. Hence, this research aims to test the influence of the three dimensions of service recovery on customer satisfaction; test the influence of customer satisfaction on customer loyalty; examine the role of customer satisfaction in mediating the influence of the three dimensions of service recovery on customer loyalty. The population is customers from fast food restaurant “X” in North Jakarta. A sample of 140 were selected using non- probability sampling method with purposive sampling technique. The data were collected using questionnaires via Google Form. The data analysis technique used is SEM using SmartPLS. The results are distributive and interactional justice have positive influence on customer satisfaction; procedural justice doesn’t have positive influence on customer satisfaction; customer satisfaction has positive influence on customer loyalty; distributive and interactional justice have positive influence on customer loyalty through customer satisfaction; procedural justice doesn’t have positive influence on customer loyalty through customer satisfaction.