Service Orientation, Service Quality, Customer Satisfaction, and Customer Loyalty: Testing a Structural Model

Abstract

The objective of this study is to develop and validate a conceptual model that incorporates the relationships among service orientation, service quality, customer satisfaction, and customer loyalty. Data were collected from a chain of casual dining restaurants located in Seoul, Korea. Frontline employees completed a questionnaire measuring service orientation while customers completed a questionnaire measuring perceived service quality, satisfaction, and loyalty. The questionnaires from customers then were paired with the questionnaires from employees who had attended to the customers. The proposed model indicated that customers' perceptions of service quality fully mediate the effect of employees' service orientation on customer satisfaction and that customer satisfaction fully mediates the relationship between customers' perceptions of service quality and customers' decision to remain loyal.