This study aims to analyze the effect of satisfaction in building loyalty and positive word of mouth toward Red Doorz users in Bandar Lampung. The main objective is to examine a mediating effect of loyalty in the effect of satisfaction on Word of Mouth. To address these objectives, the quantitative research design was used by distributing the questionnaires to the 250 users of RedDoorz. The 200 usable data used was analyzed by Structural Equation Modelling Analysis, Based on Covariance. The results show that Loyalty plays a mediating role in the effect of Satisfaction on Word of Mouth. It means that the higher satisfaction of the users or customers has, the more loyalty will be created, then the higher positive word of mouth will be developed. This implies that the management must improve the consumers’ loyalty in terms of financial transactions whenever they book a hotel online due to still having a complaint towards financial transaction failure.
Volume 12 | Issue 2
Pages: 3230-3236
DOI: 10.5373/JARDCS/V12I2/S20201445