THE ROLE OF CUSTOMER SATISFACTION AND PURCHASING VALUE IN CAUSAL RELATIONSHIP OF SERVICE QUALITY WITH WORD OF MOUTH OF Margo Murah Baru FURNITURE SHOP

Kumalasari, Fransiska (2010) THE ROLE OF CUSTOMER SATISFACTION AND PURCHASING VALUE IN CAUSAL RELATIONSHIP OF SERVICE QUALITY WITH WORD OF MOUTH OF Margo Murah Baru FURNITURE SHOP. S1 thesis, UAJY.

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Abstract

The objective of this study was to examine: (1) the mediation role of Customer Satisfaction in the relationship between Service Quality with word of mouth communication. (2) the moderation role of purchasing value in the relationship between Service Quality, Customer Satisfaction and word-of-mouth communication. Research Methodology used in this research is: (1) literature studies, (2) using questionnaire to customer of Margo Murah Baru to collect primary data. Analysis tools used in this research: (1) validity analysis which shows accuracy and accurately of an instrument in executes measurement, (2) reliability analysis which defined by repeatedly measuring the construct of variable of interest, (3) mediates regression analysis, to shows a causal sequence among three variables X to M to Y, (4) moderation regression analysis to shows if the effect of X on Y variable depends on the level of a third variable or not. There are some conclusions in this research: (1) Causal relationship of Service Quality and Word of mouth communication is fully mediated by Customer Satisfaction of Margo Murah Baru. (2) Purchasing Value does not support the causal relationship between service quality to word of mouth, service quality to customer satisfaction either between customer satisfaction to word of mouth. (3) Men are giving judgment on variables and its dimensions observed better than women. (4) Customer who bought furniture more than 4 million rupiahs feel Margo Murah Baru is more reliable for them, compare to those who bought furniture less than 1 million rupiahs in the store. (5) Customer who lived more than 5 kilometers from store feel Margo Murah Baru employee’s empathy is better than customer who lived less than 5 kilometers from store.

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