Relationship Between Rater and Customer Loyalty: Customer Satisfaction as Mediator, Income and Education as Moderators in Private Hospitals in Malaysia.

• Main Author: Jamuna A/P, Jairaman @ Jeyaraman
• Format: Thesis
• Language: English; English
• Published: 2020
• Subjects: HF Commerce
• Online Access: http://ur.aeu.edu.my/835/1/AeU%20-%20Jamuna%20Jairaman%20M70207130007%20122020.pdf; http://ur.aeu.edu.my/835/2/AeU%20-%20Jamuna%20Jairaman%20M70207130007%20122020-1-25.pdf; http://ur.aeu.edu.my/835/; https://online.fliphtml5.com/sppgg/tljl/?1611238392672

Service quality is the key to gaining a competitive advantage, thus leading to a substantially reputable organization. The relationship of service quality with customer satisfaction and customer loyalty is the phenomenon of interest in this study because of the importance of retaining customers in comparison to gaining new ones. The purpose of the present study is to understand the relationship between service quality dimensions (RATER) and customer loyalty of the private healthcare industry in Malaysia, and examine the role of customer satisfaction as a mediator in the relationship between RATER and customer loyalty. Further, the moderating effect of education and income of private healthcare customers on the relationship between customer satisfaction and loyalty is examined. The present research adopted a positivism paradigm, applying a cross-sectional quantitative research methodology to gain insight from private healthcare customers of various education and income levels. The sampling frame of this study was 10 private hospitals in Malaysia selected from 137 private hospitals registered under the Association of Private Hospitals of Malaysia (APHM) using the random-lottery method technique. 419 customers of private hospitals were surveyed on service quality, customer satisfaction and customer loyalty. Prior to data collection, a pilot study was conducted to test the questionnaire developed for its validity and reliability even though the items used are well-established. Descriptive and inference analyses were carried out using SPSS version 23 and Variance based PLS-SEM in ADANCO 2.1 to run the analyses. The reliability and validity of the items used to address the hypotheses postulated for the present study were tested using exploratory factor analysis (EFA) and confirmatory factor analysis (CFA). SEM outcome resulted in 9 out of 14 hypotheses supported. The results indicate that customer satisfaction is influenced by all five dimensions of service quality, whereas customer loyalty is influenced only by service responsiveness and service empathy. The research found customer satisfaction is not a mediator between service quality and customer loyalty. The result also indicated that the income level of private healthcare customers does not moderate the relationship between satisfaction and loyalty; however, the customers’ education status did. These findings will allow managers and marketers to embark on strategies relevant to service quality dimensions to promote satisfaction and loyalty and noted education is crucial in converting satisfied customers into loyal customers. The current study suggests marketers improve on creating awareness of the RATER related services in their establishment.