The Mediating Role of Service Quality in the Relationship Between Environment and Price on Customer Satisfaction
Keywords:
Service Quality, Environment; Price, Customer Satisfaction, SEM-PLSAbstract
This study aims to analyze the role of service quality mediation in the relationship between environment and price to customer satisfaction at Hotel Budiman Balikpapan. The method used is quantitative with the Structural Equation Modeling-Partial Least Squares (SEM-PLS) approach. Data was obtained through a questionnaire with a 5-point Likert scale, then analyzed using SmartPLS. The results of the study show that the environment does not have a significant effect on customer satisfaction either directly or indirectly through the quality of service. On the other hand, price is proven to have no significant effect directly on customer satisfaction, but has a significant effect indirectly through the quality of service. In addition, service quality has a significant effect on customer satisfaction and acts as a full mediator on the relationship between price and customer satisfaction. These findings confirm that customers judge prices based on their suitability with the quality of service received, so improving service quality is a key factor in creating customer satisfaction. This research contributes to strengthening the literature on the mechanism of customer satisfaction formation and provides practical implications for hotel management to focus more on improving service quality strategies.References
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