The Effect of Service Quality on Customer Loyalty: The Mediating Role of Customer Satisfaction at Jatiluhur Valley Resort

Despite the macro-level post-pandemic recovery of Indonesia’s domestic tourism sector, state-owned integrated resorts continue to encounter persistent challenges in sustaining visitor retention and revenue stability. Jatiluhur Valley Resort (JVR) experienced a documented commercial performance gap, where targeted revenue realization steadily dropped from 58.97% in 2022 to 43.78% in 2024 (Perum Jasa Tirta II Internal Management Report, 2025). Grounded in the Stimulus–Organism–Response (S-O-R) framework and Expectancy Disconfirmation Theory, this study examines the structural effects of five service quality dimensions (Tangibles, Reliability, Responsiveness, Assurance, and Empathy) on Customer Loyalty, as well as the mediating role of Customer Satisfaction. A quantitative explanatory cross-sectional design was conducted with 200 eligible domestic tourists at JVR. Data were evaluated using Covariance-Based Structural Equation Modeling (CB-SEM) via LISREL 8.7. The measurement model verified convergent validity (AVE , CR ) and discriminant validity via the Fornell-Larcker criterion. The structural model exhibited close fit ( ). Structural path analysis revealed that all five service quality dimensions significantly predicted Customer Satisfaction ( ), accounting for 80% of its variance ( ). For direct effects on Customer Loyalty, Tangibles ( ), Assurance ( ), Empathy ( ), and Customer Satisfaction ( ) were significant positive predictors, whereas Reliability ( ) and Responsiveness ( ) exerted no direct effects. Sobel mediation tests confirmed that Customer Satisfaction partially mediates the influence of Tangibles ( ), Assurance ( ), and Empathy ( ) on Customer Loyalty, while fully mediating the effects of Reliability ( ) and Responsiveness ( ) ( ). These findings uncover a distinct dual-pathway mechanism in state-owned lake-side resorts: operational reliability and responsiveness function as baseline hygiene factors that drive loyalty strictly through customer satisfaction, whereas tangible aesthetics, safety assurance, and empathy operate as strategic brand differentiators driving loyalty both directly and indirectly. Targeted managerial interventions should prioritize water recreation sanitation, physical facility upgrades, and frontline hospitality training.