The Effect of Marketing Mix Strategy on Customer Loyalty in Virtual Hotel Operation with the Mediation of Customer Satisfaction: A Study of RedDoorz in Greater Malang

Abstract

Technological advancement in recent industrial era has made business grow and develop rapidly. One of which is the need to enjoy foreign and domestic vacation. Budget travel becomes the choice of holiday for anyone who prioritizes budget for his travels, including booking hotel rooms. Based on issues, phenomena, problems, valuable meanings of variables, and research gaps between past researches, a more elaborate study is required, that is analyzing the mediation of customer satisfaction in the relationship between marketing mix strategy and customer loyalty. The population of this research in the overall is all customers of RedDoorz, a virtual hotel operation, in Greater Malang area. Referring to Roscoe, the sample of this research consists of 100 respondents. Inferential statistics were used to test the hypotheses and to produce an appropriate model. The data was analyzed using variant-based SEM or the Partial Least Squares. This study finds that marketing mix strategy increases customer loyalty and customer satisfaction; customer satisfaction increases customer loyalty and partially mediates the effect of marketing mix strategy on customer loyalty.