Abstract

Based on Structural Equation Modelling (SEM), service quality, customer satisfaction and customer value which are main factors affecting customer loyalty were selected to build a model of service quality affecting customer loyalty and eight hypothesis were put forward in this paper. Demonstration research was given to check the model and hypothesis. The result showed that service quality is the key factor affecting customer loyalty, the second one is customer value, and last is customer satisfaction. It was proved that service quality affects customer loyalty in both direct and indirect ways and direct effect is more than indirect effect. Customer value only affects customer loyalty in direct ways, while customer satisfaction only affects customer loyalty in indirect ways.

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