Mediating effect of corporate reputation in the influence of service quality on customer loyalty in selected restaurants in Bukidnon Province, Philippines / Florivelle C. Escarlan and Anthony Ly B. Dagang

In the competitive restaurant industry, where service quality and a positive corporate reputation are crucial for success, there is a gap in understanding how these factors work together to influence customer loyalty. While previous research has explored each concept separately, there's a lack of thorough studies on the interplay between corporate reputation, service quality and customer loyalty. Hence, this study aimed to fill this gap by investigating the role of corporate reputation in influencing the relationship between service quality levels and customer loyalty of selected casual dining restaurant customers in Bukidnon, Philippines. Quantitative research design was used in this study. The descriptive correlational design was used to evaluate the dimensions of service quality, corporate reputation, and customer loyalty in the selected casual dining restaurants. Pearson R correlation was employed to see the significant relationship between service quality and customer loyalty, corporate reputation, and customer loyalty. Structural equation modeling using IBM Amos was used to test if corporate reputation could enhance the influence of service quality on customer loyalty. Results showed that assessment of service quality dimensions was very high and corporate reputation had a very high level of agreement among the customers. Both service quality and corporate reputation can influence customer loyalty. There is a significant mediation effect of corporate reputation on loyalty and a significant, positive direct effect of service quality on loyalty, which contributes to a positive total effect, both directly and indirectly, between service quality, corporate reputation, and loyalty. Thus, this study concludes that the relationship between service quality and customer loyalty is strengthened by corporate reputation. The results highlight the crucial role of fostering a positive corporate reputation in reinforcing the association between service quality and customer loyalty in the restaurant sector. Recognizing the enhancing impact of corporate reputation, businesses are encouraged to prioritize efforts in building and maintaining a favorable reputation alongside improving service quality to sustain and strengthen customer loyalty.