The Effects of Perceived Service Quality on Customer Loyalty: The Mediating Role of Customer Satisfaction and Trust: Evidence from Four-Star-Rated Hotels in Hawassa
DOI:
https://doi.org/10.20372/mwu.jessd.2026.1592Keywords:
Service Quality, Customer Satisfaction, Trust, Customer LoyaltyAbstract
In the hospitality industry, enduring customer loyalty often depends on offering quality services that can ensure satisfaction and uphold trust. In this regard, this study attempted to investigate the effects of perceived service quality on customer loyalty, and the mediating roles of satisfaction and trust. Methodologically, the SERVPERF model, explanatory design, and quantitative approach were used. 384 samples were selected from 6 four-star hotels using purposive and availability sampling techniques. SEM was used to test the causalities, interdependences, and relationships among the research variables. The findings confirmed that perceived service quality significantly and positively affects customer loyalty, satisfaction, and trust. The effects of customer satisfaction and trust on loyalty were significant and positive. Besides, customer satisfaction and trust significantly mediated the relationship between the perceived service quality and customer loyalty. The study provides significant insight into the deeper psychological principles underlying customer loyalty and offers hotel managers valuable information.
Downloads
References
Ahadmotlaghi, E., & Moghaddam, M. A. N. (2017). Studying the effect of perceived service quality on repurchase intention: Evidence from hotels in Mashhad, Iran. 11(1).
Ahmad, S., Zulkurnain, N., &Khairushalimi, F. (2016). Assessing the validity and reliability of a measurement model in structural equation modeling (SEM). British Journal of Mathematics & Computer Science, 15(3), 1-8. https://doi.org/10.9734/bjmcs/2016/25183
Akbar, M. M., & Parvez, N. (2009). Impact of service quality, trust, and customer satisfaction on customer loyalty. 29(1).
Al Karim, R., Alam, M. M. D., & Al Balushi, M. K. (2024). The nexus between CRM and competitive advantage: The mediating role of customer loyalty. Nankai Business Review International, 15(2), 248-268. https://doi.org/10.1108/NBRI-04-2022-0040
Albaity, M., & Rahman, M. (2021). Customer loyalty towards Islamic banks: The mediating role of trust and attitude. Sustainability, 13(19), 10758.
Alex, C. (2024). Influence of service quality on customer loyalty in luxury hotel chains in Tanzania. 2.
Ali, F., Hussain, K., Konar, R., & Jeon, H.-M. (2017). The effect of technical and functional quality on guests’ perceived hotel service quality and satisfaction: A SEM-PLS analysis. Journal of Quality Assurance in Hospitality & Tourism, 18(3), 354-378. https://doi.org/10.1080/1528008X.2016.1230037
Al‐Msallam, S. (2020). The impact of tourists’ emotions on satisfaction and destination loyalty – an integrative moderated mediation model: Tourists’ experience in Switzerland. Journal of Hospitality and Tourism Insights, 3(5), 509-528. https://doi.org/10.1108/JHTI-11-2019-0126
Alrubaiee, L., &Alkaa’ida, F. (2011). The mediating effect of patient satisfaction in the patients’ perceptions of healthcare quality-patient trust relationship. International Journal of Marketing Studies, 3(1), 103.
Alzaydi, Z. (2024). Examining the mediating effect of multi-channel integration quality in the relationship with service quality, customer satisfaction, and customer loyalty in the Saudi banking sector. Management & Sustainability: An Arab Review, 3(2), 132-149. https://doi.org/10.1108/MSAR-12-2022-0061
Anabila, P., Ameyibor, L. E. K., Allan, M. M., &Alomenu, C. (2022). Service quality and customer loyalty in Ghana’s hotel industry: The mediation effects of satisfaction and delight. Journal of Quality Assurance in Hospitality & Tourism, 23(3), 748-770. https://doi.org/10.1080/1528008X.2021.1913691
Annamdevula, S., &Bellamkonda, R. S. (2016). Effect of student perceived service quality on student satisfaction, loyalty, and motivation in Indian universities: Development of HiEduQual. Journal of Modelling in Management, 11(2), 488-517.
Aprilia, L., Maming, J., &Pakki, E. (2020). The influence of trust and service quality on loyalty through customer satisfaction at state-owned banks in Makassar City. Hasanuddin Journal of Applied Business and Entrepreneurship, 3(1), 36-48.
Aras, Indra Nara Persada, & Septa Diana Nabella. (2023). The influence of service quality, trust, and facilities on the decision to choose SP Hotel Batam. International Journal of Accounting, Management, Economics and Social Sciences (IJAMESC), 1(4), 417-431. https://doi.org/10.61990/ijamesc.v1i4.39
Astrachan, C. B., Patel, V. K., &Wanzenried, G. (2014). A comparative study of CB-SEM and PLS-SEM for theory development in family firm research. Journal of Family Business Strategy, 5(1), 116-128. https://doi.org/10.1016/j.jfbs.2013.12.002
Baba, M. M., Krishnan, C., & Gera, C. (2024). Impact of service quality on customer satisfaction and customer loyalty: Mediating effect of trust in the tourism industry with context to hotels. Journal of Hospitality Application & Research, 19(1).
Balaji, M. S., Jiang, Y., & Jha, S. (2019). Green hotel adoption: A personal choice or social pressure? International Journal of Contemporary Hospitality Management, 31(8), 3287-3305. https://doi.org/10.1108/IJCHM-09-2018-0742
Ball, D., Simões Coelho, P., &Machás, A. (2004). The role of communication and trust in explaining customer loyalty: An extension to the ECSI model. European Journal of Marketing, 38(9/10), 1272-1293. https://doi.org/10.1108/03090560410548979
Baumann, C., Elliott, G., & Burton, S. (2012). Modeling customer satisfaction and loyalty: Survey data versus data mining. Journal of Services Marketing, 26(3), 148-157.
Bendall-Lyon, D., & Powers, T. L. (2003). The influence of mass communication and time on satisfaction and loyalty. Journal of Services Marketing, 17(6), 589-608.
Boonlertvanich, K. (2019). Service quality, satisfaction, trust, and loyalty: The moderating role of main-bank and wealth status. International Journal of Bank Marketing, 37(1), 278-302.
Bowen, J. T., & Chen, S.-L. (2001). The relationship between customer loyalty and customer satisfaction. International Journal of Contemporary Hospitality Management, 13(5), 213-217.
Brewer, P., &Sebby, A. G. (2021). The effect of online restaurant menus on consumers’ purchase intentions during the COVID-19 pandemic. International Journal of Hospitality Management, 94, 102777. https://doi.org/10.1016/j.ijhm.2020.102777
Byrne, B. M. (2013). Structural equation modeling with AMOS. Structural Equation Modeling With AMOS, July. https://doi.org/10.4324/9781410600219
Carranza, Estrella Diaz, & Martin, D. (2024). The influence of quality on satisfaction and customer loyalty with an importance-performance map analysis: Exploring the mediating role of trust. Request PDF.https://doi.org/10.1108/jhtt-09-2017-0104
Castillo-Manzano, J. I., Castro-Nuño, M., &Pozo-Barajas, R. (2022). Addicted to cruises? Key drivers of cruise ship loyalty behavior through an e-WOM approach. International Journal of Contemporary Hospitality Management, 34(1), 361-381.
Chang, K. (2013). How reputation creates loyalty in the restaurant sector. International Journal of Contemporary Hospitality Management, 25(4), 536-557. https://doi.org/10.1108/09596111311322916
Chao, P. (2008). Exploring the nature of the relationships between service quality and customer loyalty: An attribute-level analysis. The Service Industries Journal, 28(1), 95-116. https://doi.org/10.1080/02642060701725610
Choi, H., &Kandampully, J. (2019). The effect of atmosphere on customer engagement in upscale hotels: An application of the S-O-R paradigm. International Journal of Hospitality Management, 77, 40-50. https://doi.org/10.1016/j.ijhm.2018.06.012
Choi, H., Jang, J., &Kandampully, J. (2015). Application of the extended VBN theory to understand consumers’ decisions about green hotels. International Journal of Hospitality Management, 87-95. https://doi.org/10.1016/j.ijhm.2015.08.004
Creswell, J. W., & Creswell, J. D. (2018). Mixed methods procedures. In Research design: Qualitative, quantitative, and mixed methods approaches.
Danish, R. Q., Afzal Humayon, A., Iqbal, J., Raza, S., & Shahid, J. (2025). The impact of service quality and service value on customer satisfaction through customer bonding: Evidence from the telecommunication sector. Ghylin. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.5110636
Dimitriades, Z. S. (2006). Customer satisfaction, loyalty, and commitment in service organizations: Some evidence from Greece. Management Research News, 29(12), 782-800. https://doi.org/10.1108/01409170610717817
Dimitrovski, D., Marinković, V., Djordjevic, A., &Sthapit, E. (2024). Wellness spa hotel experience: Evidence from spa hotel guests in Serbia. Tourism Review.https://doi.org/10.1108/TR-11-2023-0770
El-Adly, M. I. (2019). Modelling the relationship between hotel perceived value, customer satisfaction, and customer loyalty. Journal of Retailing and Consumer Services, 50, 322-332. https://doi.org/10.1016/j.jretconser.2018.07.007
Fatma, A., & Kumar, D. M. (2024). Exploring the correlation between service quality and customer satisfaction in the hospitality industry. 12(1). https://doi.org/10.25215/1201.131
Gashawbeza, S. B. (2016). Perceived service quality and its relationship with customer loyalty in the Ethiopian hotel industry. Journal of Contemporary Research in Management (JCRM), 10(4), Article 4. https://jcrm.psgim.ac.in/index.php/jcrm/article/view/452
Gbenga, O. (2015). Determinants of repeat buy in the hospitality industry: Evidence from hotel business in Lagos State. American Journal of Marketing Research, 1(2), 20-27.
Gedecho, E. (2015). Urban tourism potential of Hawassa City, Ethiopia. American Journal of Tourism Research, 4(1). https://doi.org/10.11634/216837861504647
Ginting, Y., Chandra, T., Miran, I., &Yusriadi, Y. (2023). Repurchase intention of e-commerce customers in Indonesia: An overview of the effect of e-service quality, e-word of mouth, customer trust, and customer satisfaction mediation. International Journal of Data and Network Science, 7(1), 329-340.
Hafez, M., &Akther, N. (2017). Determinants of customer loyalty in the mobile telecommunication industry in Bangladesh. Global Journal of Management and Business Research, 17(1), 140-148.
Hair, J. F., Matthews, L. M., Matthews, R. L., &Sarstedt, M. (2017). Updated guidelines on which method to use. International Journal of Multivariate Data Analysis, 1(2), 107.
Hapsari, R., Clemes, M. D., & Dean, D. (2017). The impact of service quality, customer engagement, and selected marketing constructs on airline passenger loyalty. International Journal of Quality and Service Sciences, 9(1), 21-40.
Haron, R., Abdul Subar, N., & Ibrahim, K. (2020). Service quality of Islamic banks: Satisfaction, loyalty, and the mediating role of trust. Islamic Economic Studies, 28(1), 3-23. https://doi.org/10.1108/IES-12-2019-0041
Hoe, L. C., &Mansori, S. (2018). The effects of product quality on customer satisfaction and loyalty: Evidence from the Malaysian engineering industry. International Journal of Industrial Marketing, 3(1), 20. https://doi.org/10.5296/ijim.v3i1.13959
Hussain, R., Al Nasser, A., & Hussain, Y. K. (2015). Service quality and customer satisfaction of a UAE-based airline: An empirical investigation. Journal of Air Transport Management, 42, 167-175.
Jakobsen, M., & Jensen, R. (2015). Common method bias in public management studies. International Public Management Journal, 18(1), 3-30. https://doi.org/10.1080/10967494.2014.997906
Kalaja, R. (2023). Determinants of patient satisfaction with health care: A literature review. European Journal of Natural Sciences and Medicine, 6(1), 43-54.
Kalia, P., Kaushal, R., Singla, M., & Parkash, J. (2021). Determining the role of service quality, trust, and commitment to customer loyalty for telecom service users: A PLS-SEM approach. The TQM Journal, 33(7), 377-396. https://doi.org/10.1108/TQM-04-2021-0108
Kassim, N., & Abdullah, N. A. (2008). Customer loyalty in e-commerce settings: An empirical study. Electronic Markets, 18(3), 275-290. https://doi.org/10.1080/10196780802265843
Kaura, V., Durga Prasad, C. S., & Sharma, S. (2015). Service quality, service convenience, price and fairness, customer loyalty, and the mediating role of customer satisfaction. International Journal of Bank Marketing, 33(4), 404-422.
Kim, E. J., Cho, M. J., & Kim, M. J. (2021). Mothers’ parenting stress and neighborhood characteristics in early childhood (Ages 0–4). International Journal of Environmental Research and Public Health, 18(5).
Kim, M. J., Lee, C.-K., & Jung, T. (2020). Exploring consumer behavior in virtual reality tourism using an extended stimulus-organism-response model. Journal of Travel Research, 59(1), 69-89. https://doi.org/10.1177/0047287518818915
Kim, M., Vogt, C. A., & Knutson, B. J. (2015). Relationships among customer satisfaction, delight, and loyalty in the hospitality industry. Journal of Hospitality & Tourism Research, 39(2), 170-197. https://doi.org/10.1177/1096348012471376
Kumar, V., Dalla Pozza, I., & Ganesh, J. (2013). Revisiting the satisfaction-loyalty relationship: Empirical generalizations and directions for future research. Journal of Retailing, 89(3), 246-262.
Li, S. (2020). The impact of service quality, self-service technology, and the corporate image on customer satisfaction and customer revisit intention among luxury hotels in Kuala Lumpur, Malaysia. International Journal of Services, Economics and Management, 11(1), 48. https://doi.org/10.1504/IJSEM.2020.107794
Liat, C. B., Mansori, S., Chuan, G. C., & Imrie, B. C. (2017). Hotel service recovery and service quality: Influences of corporate image and generational differences in the relationship between customer satisfaction and loyalty. Journal of Global Marketing, 30(1), 42-51. https://doi.org/10.1080/08911762.2016.1262932
Loureiro, S. M. C., Almeida, M., & Rita, P. (2013). The effect of atmospheric cues and involvement on pleasure and relaxation: The spa hotel context. International Journal of Hospitality Management, 35, 35-43. https://doi.org/10.1016/j.ijhm.2013.04.011
MacKenzie, S. B., & Podsakoff, P. M. (2012). Common method bias in marketing: Causes, mechanisms, and procedural remedies. Journal of Retailing, 88(4), 542-555. https://doi.org/10.1016/j.jretail.2012.08.001
Maiyaki, A. A. (2011). The relationship between service quality and satisfaction on customer loyalty in the Malaysian mobile communication industry. School of Doctoral Studies European Union Journal, 3.
Mansouri, H., Sadeghi Boroujerdi, S., & Md Husin, M. (2022). The influence of sellers’ ethical behaviour on customers’ loyalty, satisfaction, and trust. Spanish Journal of Marketing - ESIC, 26(2), 267-283. https://doi.org/10.1108/SJME-09-2021-0176
Manyanga, W., Makanyeza, C., &Muranda, Z. (2022). The effect of customer experience, customer satisfaction, and word of mouth intention on customer loyalty: The moderating role of consumer demographics. Cogent Business & Management, 9(1), 2082015. https://doi.org/10.1080/23311975.2022.2082015
Mohamed, S. A., Chang, K., & Xiao, Y. (2023). The impact of service quality and customer satisfaction on loyalty in the hotel industry of Egypt. International Journal of Hospitality Management, 119, 103548. https://doi.org/10.1016/j.ijhm.2022.103548
Mokoena, P. (2023). Exploring customer satisfaction and loyalty among young adults in the hospitality sector. Journal of Retailing and Consumer Services, 71, 102564. https://doi.org/10.1016/j.jretconser.2023.102564
Muthama, H. (2021). Effect of service quality on customer satisfaction in the hospitality industry: Evidence from Kenya. Journal of Global Economics, Management and Business Research, 14(2), 27–36.
Namasasu, J. M., &Okere, C. (2022). The effect of service quality on customer satisfaction and loyalty: A case of hotels in Mozambique. Journal of Hospitality and Tourism Management, 50, 206–215. https://doi.org/10.1016/j.jhtm.2022.05.005
Nassar, A. A., & Vani, M. (2021). The relationship between service quality, customer satisfaction, and customer loyalty in three-star hotels in India. International Journal of Hospitality Management, 93, 102761. https://doi.org/10.1016/j.ijhm.2020.102761
Nayak, B., & Dutta, O. (2023). Impact of service quality on customer satisfaction and loyalty: A study in the hotel industry of Orissa, India. Journal of Hospitality and Tourism Insights, 6(1), 21–36. https://doi.org/10.1108/JHTI-04-2022-0075
Nwankwo, S., &Emenike, A. (2024). The influence of corporate social responsibility on customer loyalty in Nigeria’s hospitality sector. Journal of Hospitality and Tourism Management, 52, 321–332. https://doi.org/10.1016/j.jhtm.2024.05.002
Okerie, S. M. (2021). Relationship between service quality, customer satisfaction, and customer loyalty in the Nigerian hotel industry. International Journal of Hospitality Management, 94, 102821. https://doi.org/10.1016/j.ijhm.2020.102821
Omoniyi, S., &Ojo, J. (2024). Service quality and customer loyalty in Nigeria’s hospitality industry: The mediating role of customer satisfaction. International Journal of Tourism Research, 26(1), 57–68. https://doi.org/10.1002/jtr.2547
Omotayo, F., &Odukoya, O. (2022). The moderating role of customer engagement in the influence of service quality on customer loyalty: Insights from the hospitality industry. Journal of Business Research, 135, 652–661. https://doi.org/10.1016/j.jbusres.2021.07.032
Opoku, R. A., & Ofori, D. (2023). The impact of emotional intelligence on customer experience in the hospitality industry: A structural equation modeling approach. International Journal of Hospitality Management, 120, 103600. https://doi.org/10.1016/j.ijhm.2022.103600
Pappas, N. (2016). Marketing strategies and consumer behavior in hospitality management. Journal of Hospitality Marketing & Management, 25(5), 579–585.
Parvez, M., & Ali, M. H. (2020). Relationship between service quality and customer satisfaction and loyalty in tourism: A critical review. Journal of Tourism Research & Hospitality, 9(1), 1–5.
Prabhakar, G., & Anand, R. (2021). The impact of perceived service quality on customer satisfaction in the Indian hospitality sector: A customer loyalty-oriented study. Journal of Hospitality & Tourism Research, 45(6), 1183–1202.
Rahman, M. A., & Jahan, N. (2023). Service quality and customer satisfaction in the hospitality sector: Evidence from Bangladesh. Journal of Tourism Studies, 9(2), 114–126. https://doi.org/10.1016/j.tourstud.2023.03.008
Ramli, M. I., &Bahri, N. (2020). Investigation of the dimensions of service quality impacting customer loyalty in the hotel industry. Journal of Service Science and Management, 13(3), 230–246. https://doi.org/10.4236/jssm.2020.133015
Rasul, M., & Qureshi, M. N. (2021). The role of electronic service quality in enhancing customer loyalty in the hotel sector. International Journal of Tourism Research, 23(4), 541–552.
Razak, A., & Tan, C. P. (2022). The linkage among service quality, satisfaction, and loyalty: A comprehensive study in tourism. International Journal of Adventure Tourism and Hospitality, 3(1), 45–61.
Rehman, A. U., &Yaqub, M. (2022). The effect of perceived customer value on customer loyalty in the hospitality industry: A mediation analysis. International Journal of Contemporary Hospitality Management, 34(10), 3675–3691. https://doi.org/10.1108/IJCHM-09-2021-0923
Rojek, A. (2022). The role of customer satisfaction in building customer loyalty within the hotel industry. Tourism Economics, 28(6), 1536–1552. https://doi.org/10.1177/13548166211035084
Sajid, M., & Zahra, U. (2021). An empirical investigation of service quality and customer satisfaction in the hotel industry in Pakistan. International Journal of Service and Operations Management, 38(1), 64–77. https://doi.org/10.1504/IJSOM.2021.111832
Saleem, A., Sadiq, M., & Noor, A. (2023). Determinants of customer loyalty in the hospitality industry: The mediating role of customer satisfaction. Journal of Hospitality Marketing & Management, 32(2), 255–277.
Samad, A., &Barupal, P. (2022). Enhancing customer loyalty through service quality in the tourism industry: Evidence from Pakistan. Management Decision, 60(10), 2415–2431. https://doi.org/10.1108/MD-09-2021-0515
Sani, M. A., & Zainal, I. (2023). Factors affecting customer satisfaction and loyalty within the hospitality industry: The role of social media. Service Business, 17(2), 537–557. https://doi.org/10.1007/s11628-023-00434-2
Sharma, G., & Awasthi, L. (2021). Impact of service quality on customer satisfaction and loyalty: A study of the hospitality industry. International Journal of Hospitality Management, 94, 102838. https://doi.org/10.1016/j.ijhm.2020.102838
Sheikh, S., & Phan, L. (2024). The role of service experience in customer loyalty within the hospitality sector: The mediating role of customer satisfaction. Benchmarking: An International Journal, 31(3), 985–1002. https://doi.org/10.1108/BIJ-07-2022-0353
Shih, C.-T., & Chiu, H.-C. (2021). Exploring customer satisfaction, loyalty, and repurchase intention: Evidence from hospitality. Journal of Hospitality Marketing & Management, 30(8), 917–935.
Suh, E., &D’Astous, A. (2023). The impacts of service quality on customer loyalty and the mediating effects of customer satisfaction: A study in the tourism sector. International Journal of Tourism Research, 25(1), 115-130. https://doi.org/10.1002/jtr.2365
Thongpapanl, N., &Doney, P. M. (2022). The impact of service quality on relationship quality and customer loyalty in the hospitality sector. Journal of Business Research, 150, 208–217. https://doi.org/10.1016/j.jbusres.2022.04.003
Wang, Y., &Matzler, K. (2019). The influence of customer orientation and service quality on customer satisfaction and loyalty: An empirical study of the hotel industry in China. International Journal of Contemporary Hospitality Management, 31(1), 411–429. https://doi.org/10.1108/IJCHM-10-2018-0909
Wankel, L. A. (2017). Educating for sustainability in hospitality and tourism. Business Expert Press.
Yalcin, E., & Arslan, N. (2022). The mediating role of customer engagement on the relationship between service quality and customer loyalty in the hospitality industry. Journal of Hospitality and Tourism Insights, 5(3), 287-309. https://doi.org/10.1108/JHTI-04-2022-0064
Zhang, T., & Chen, M. (2024). Exploring the attitudinal loyalty of restaurant customers: The roles of service quality and relationship quality. International Journal of Hospitality Management, 130, 103053. https://doi.org/10.1016/j.ijhm.2023.103053
Additional Files
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Madda Walabu University Journal of Equity in Sciences and Sustainable Development

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.