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All Journal INTERNATIONAL JOURNAL OF ECONOMIC LITERATURE (INJOLE)
I Wayan Lostha Markandhya
Udayana University

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CUSTOMER LOYALTY IN BOARDING HOUSE SERVICES: FACILITIES, LOCATION, SATISFACTION I Wayan Lostha Markandhya; Gede Suparna
INTERNATIONAL JOURNAL OF ECONOMIC LITERATURE Vol. 4 No. 1 (2026): INTERNATIONAL JOURNAL OF ECONOMIC LITERATURE (INJOLE)
Publisher : Adisam Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.5281/zenodo.22250534

Abstract

Maintaining customer loyalty has become an increasing concern for boarding house providers in university districts despite the rapid expansion of the student accommodation market. The relatively short duration of tenancy compared with students' academic period indicates frequent relocation before graduation. Guided by the Stimulus–Organism–Response (S–O–R) perspective, this research examines how customer satisfaction functions as the psychological mechanism connecting boarding house facilities and location with customer loyalty. A quantitative causal-associative approach was adopted, involving student tenants selected through purposive sampling. Information was obtained using structured Likert-scale survey instruments and evaluated through descriptive analysis and Partial Least Squares Structural Equation Modeling (PLS-SEM). Empirical evidence reveals that facilities and location significantly improve customer satisfaction, whereas satisfaction exerts a strong positive influence on customer loyalty. In contrast, neither facilities nor location demonstrates a significant direct effect on loyalty. Instead, customer satisfaction completely mediates both relationships, highlighting its pivotal role in transforming environmental attributes into loyal behavioral intentions. These results broaden the application of the S–O–R perspective to student accommodation services and indicate that sustainable customer loyalty depends less on physical attributes alone than on tenants' overall satisfaction with their residential experience. Accordingly, boarding house operators should integrate facility enhancement with strategic location management to create superior customer experiences and strengthen long-term tenant retention.
Co-Authors Gede Suparna