Image, Service Quality, Customer Satisfaction as Antecedents to Loyalty, and Performance in Private Hospitals

Abstract

There is an observable increase in the phenomenon of consumerism within the healthcare sector, whereby patients are assuming an active and empowered role as consumers. In a fiercely competitive healthcare industry characterized by the presence of alternative options, the significance of customer experience cannot be overstated. Understanding the journey of customers will provide a powerful insight to leverage more important aspects of the journey that will enhance satisfaction and ultimately loyalty. Best-practice measurement systems are used by companies with consistently high customer satisfaction scores because they allow them to identify the most important drivers of customer satisfaction / experience and measure ongoing performance in those areas; link improvements in the customer experience with desired business outcomes (such as repeat sales); and uncover operational insights that enable the frontline staff to make better decisions. However, studies focused on customer experience in healthcare are limited, therefore, this study explores the linkage of variables of image, service quality, customer satisfaction, and its effect on loyalty and performance. A sample of 225 respondents who have experience as customers from three large hospital chains in Jabodetabek area was collected through questionnaire-based primary data. Through a rigorous procedure of structural equation modelling (SEM-LISREL), it was found that all variables of image, service quality, customer satisfaction have a positive and significant effect to loyalty and performance. These study results confirm the need for healthcare organizations to focus on enhancing their service quality and image to improve customer satisfaction and loyalty.