Examining Service Quality as a Mediator of Location Strategy, Process Strategy, and Service Design on College Students^ Satisfaction through Structural Equation Modelling Tining Haryanti
Universitas Muhammadiyah Surabaya
Abstract
The organization needs to pay attention to the suitability of its strategy in achieving customer satisfaction to ensure that its products or services meet user expectations. This research aims to determine Service Quality as a mediator for Location Strategy, Process Strategy, and Service Design strategies on the satisfaction of Business School students.
The research subjects are Business School students, with a total of 313 respondents. This study utilizes Structural Equation Modeling (SEM) analysis with a structural equation model formulated as follows: Y = 0.054 X1 + 0.319 X2 + 0.626 X3- Z = 0.105 X1 + 0.145 X2 + 0.577 X3- Z = 0.011 X1 + 0.063 X2 + 0.124 X3- Z = 0.195 Y.
The results indicate that Location Strategy, Process Strategy, and Service Design variables collectively influence 83.9% of the Service Quality variable and 87.1% of the Customer Satisfaction variable. Service Design emerges as the most significant predictor of Service Quality with a direct effect of 0.626 and a probability of 0.002, and of Customer Satisfaction with a total effect of 0.701.
These findings imply practical implications for the management of Private Business Schools, suggesting a need to maintain and enhance Design Services while making improvements to Location Strategy and Process Strategy to enhance Service Quality and Customer Satisfaction.
Keywords: Location Strategy, Process Strategy, Service Design, Service Quality, Customer Satisfaction, Structural Equation Modelling
