The Effect of Service Quality and Customer Satisfaction on Customer Loyalty of Small Scale Indonesian

This research aims to improve the customer loyalty of small scale Indonesian food enterprises (SIFE) in Surabaya from service quality and customer satisfaction perspectives. The respondents of this research came
from 50 small scale Indonesian food enterprises in Surabaya. There are two methods to analyze the data, factor analysis and structural equation model analysis using GeSCA. The results shows that service quality influences significantly to customer satisfaction. Service quality also has a significant effect to customer loyalty. Customer satisfaction influences significantly to customer loyalty and acts as a perfect mediator variable that connects between service quality and customer loyalty of SIFE.