BOARD ROLE ON THE QUALITY OF THE SERVICE, CUSTOMERS’ SATISFACTION AND CUSTOMERS’ LOYALTY IN RESTAURANT FIRMS: STORY FROM INDONESIA

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Abstract

The objective of this research is to test and conducting an analysis in sequence, on the effect of exchange of superior-subordinate relationship on: the quality of the service, customers’ satisfaction and customers’ loyalty: Case study on a restaurant in Surakarta Indonesia. The samples used in this research are 430 staffs and 430 customers taken with convenient method. The technique used to test the hypothesis is SEM analysis (Structural Equation Model). The validity test result shows that there are several items on this research which extracted and finally used as the base for item analysis that meets the criteria, while the reliability test result shows that all the variable meets the requirements, and the research model required can be found. The analysis result of this research shows that: First, the exchange of superior-subordinate relationship shows positive effect on the service quality, but shows no effect on the customers’ satisfaction. Second, the service quality gives positive effect on customers’ satisfaction, but shows no effect on customers’ loyalty. Third, customers’ satisfaction gives positive effects on customers’ loyalty. The existing research implications and limitations need to be studied in future researches

Keywords: Superior-Subordinate Relationship, Service Quality, Customers’ Satisfaction, Customers’ Loyalty

How to cite this paper: Cholil, M. (2015). Board role on the quality of the service, customers’ satisfaction and customers’ loyalty in restaurant firms: Story from Indonesia. Corporate Board: role, duties and composition, 11(3), 8-15. https://doi.org/10.22495/cbv11i3art1