Determining the role of service quality and customer loyalty in Malaysian SMEs in the food and beverage sector: The mediating influence of customer satisfaction

Abstract

In today's competitive landscape, the food and beverage industries face challenges in maintaining their current customer base. Malaysian SMEs in Mamak restaurants are striving to deliver outstanding service to consumers, as customer satisfaction is crucial for fostering loyalty. The study focused on investigating how different aspects of service quality influence customer loyalty, with customer satisfaction serving as a mediating factor. A convenience sampling technique was employed to select participants who met the study's criteria. Data collection was carried out through questionnaires, and the analysis was conducted using SmartPLS version 4.0. The findings reveal that all service quality dimensions, except for reliability, have a positive and significant impact on customer loyalty. Customer satisfaction mediates the relationship between reliability, responsiveness, and tangibility. The findings of this study enhance the understanding of service quality, customer satisfaction, and customer loyalty. They carry important managerial implications within the highly competitive environment of Malaysian Mamak restaurants and the wider foodservice industry. These insights guide restaurant managers in prioritizing service improvements.