Business Management Research
Vol. 4 No. 1 (2025): January 2025

The Dual Pathways to Customer Recommendation: Service Quality and Perceived Value in the Car Wash Industry

Wisnu Mahendri (Unknown)
Muhammad Sidiq (Universitas KH. A. Wahab Hasbullah)



Article Info

Publish Date
31 Jan 2025

Abstract

This study examines the distinct mechanisms through which service quality and perceived value drive positive word-of-mouth (WOM), focusing on the mediating role of customer satisfaction among 120 customers of Papak Auto Care in Jombang, Indonesia, utilizing Structural Equation Modeling (SEM-PLS). Findings indicate that both service quality and perceived value significantly influence customer satisfaction, with perceived value exerting a more dominant effect (β=0.531) compared to service quality (β=0.409). Crucially, the study identifies two distinct pathways to WOM: service quality does not have a direct significant impact on WOM (P-value=0.396) but is fully mediated by customer satisfaction (β=0.122) , suggesting that satisfaction is a prerequisite for service quality-driven recommendations. Conversely, perceived value demonstrates a strong and direct significant influence on WOM (β=0.489) , indicating that superior value perception can spontaneously trigger customer advocacy. This research contributes by differentiating the impact of process-based evaluations (service quality) and holistic outcome-based evaluations (perceived value) on WOM, offering strategic implications for service providers to focus on service quality to build satisfaction and proactively enhance perceived value for direct WOM stimulation.

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Journal Info

Abbrev

bismar

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

Business Management Research (Bismar) is a periodical issue containing information and analysis related to management science and business. This journal is of a popular scientific nature that includes both theoretical and empirical research. This journal focuses on the development of management ...