The Mediating Role of Customer Satisfaction: Assessing the Impact of Price and Service Quality on Customer Loyalty: Analytical Study

Abstract

This research investigates the intricate relationship between pricing, service quality, and customer loyalty, with a particular focus on the mediating role of customer satisfaction. The objectives of this study are to determine the extent to which customer satisfaction mediates the relationship between pricing, service quality, and loyalty, to examine how pricing, service quality, and customer satisfaction collectively influence customer loyalty, and to assess the generalizability of these relationships across different cultural contexts. The research employs structural equation modeling (SEM) to analyze data collected from 119 questionnaires gathered among employees of various privately owned businesses in Erbil. The findings reveal that both price and service quality directly impact customer loyalty and also exert indirect effects. Customer satisfaction emerges as a significant mediator between both price and service quality and customer loyalty. This study contributes to the understanding of the dynamics between pricing, service quality, customer satisfaction, and loyalty, emphasizing the crucial role of customer satisfaction as a mediator in fostering customer loyalty.