WORD OF MOUTH AND CUSTOMER SATISFACTION IN MEDIATING THE RELATIONSHIP BETWEEN SERVICE QUALITY AND REVISIT INTENTION

ABSTRACT : The population growth in Bali Province, especially in Denpasar City and Badung Regency hasled to the increase in consumption level. The high consumption level has been followed by the increase innumber of restaurants over the years, which in turn intensified the competition among culinary businesses.Improving quality is a way to survive in this competition because it increases the likelihood of customersrevisiting the restaurant in the future. By maintaining customer’s revisit intention, this also means that therestaurant has attempted to maintain customer loyalty. The purpose of this study is to explain the role of word ofmouth and customer satisfaction in mediating the influence of service quality on revisit intention.The research subjects are the customers who have visited the restaurant at least once over the last sixmonths. There were 205 respondents as the research sample, who were selected using the non-probabilitypurposive sampling method. The data analysis method utilized was the SEM (Structural Equation Modelling).The research results showed that word of mouth and customer satisfaction are able to partially mediate therelationship between service quality and the intention to revisit the Family Restaurant. The practical implicationof this study is that the restaurants should improve their service quality, develop positive word of mouth,improve customer satisfaction and increase customer’s intention to revisit Family Restaurant to improve itscompetitiveness.

KEYWORDS: service quality, word of mouth, customer satisfaction, revisit intention, loyalty