Customer Perceived Service Quality, Satisfaction and Customer Loyalty: An Empirical Test of Mediation in Private Hospitals

Abstract

The purpose of the study is to examine the impact of perceived service quality on customer satisfaction and customer loyalty, and find mediating role of customer satisfaction was also assessed between perceived service quality and customer loyalty. An integrated research model has been developed by combining the different factors from the existing literature. The validity of the model is tested by applying structural Equation modelling (SEM) approach to data collected from 370 customers including (in-patients & out-patients) in four private hospitals (more than 100 bedded). The reliability and validity of the dimensions are established through Confirmatory Factor Analysis (CFA) using SPSS-AMOS-20 version. The related hypothesis is tested by using SEM. The results indicated that customer satisfaction mediates the relationship between perceived service quality and customer loyalty, the impact of perceived service quality does not lead to customer loyalty without customer satisfaction in Indian private healthcare sector.