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

Authors

  • Wisnu Mahendri
  • Muhammad Sidiq Universitas KH. A. Wahab Hasbullah

DOI:

https://doi.org/10.26905/bismar.v4i1.15879

Keywords:

Service Quality, Customer Satisfaction, Perceived Value, Word of Mouth

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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Published

2025-01-31

How to Cite

Mahendri, W. ., & Sidiq, M. (2025). The Dual Pathways to Customer Recommendation: Service Quality and Perceived Value in the Car Wash Industry. Business Management Research, 4(1). https://doi.org/10.26905/bismar.v4i1.15879