A Hybrid of PLS-SEM-Artificial Neural Networks for Predicting Customer Satisfaction and Loyalty: A Case Study in a Beauty Clinic in Indonesia

The study uses the stimulus-organism-response (SOR) model and relationship marketing theory to assess the impact of price, service quality, and product quality on customer satisfaction and loyalty in beauty clinics in Indonesia. The study employs a quantitative methodology, utilizing a structural equation model with partial least squares structural equation modeling to assess the hypotheses and an Artificial Neural Network. Two hundred replies were obtained by distributing questionnaires to people who visited the M.B.C. Beauty Clinic in Indonesia. In contrast to prior research, this study discovered that pricing, service quality, and product quality all have a role in influencing consumer satisfaction and loyalty. However, not all variables substantially impacted customer satisfaction as initially expected. The mediation results indicate that customer satisfaction significantly impacts customer loyalty. An Importance-Performance Map (I.P.M.) analysis was conducted on the gathered responses, revealing that the quality of the product is the primary factor influencing customer satisfaction and loyalty. Therefore, Beauty Clinic establishments should prioritize these characteristics to maintain customer satisfaction and loyalty. Prior research has chiefly examined the individual impacts of the marketing mix on customer satisfaction and loyalty, employing Structural Equation Modeling (S.E.M.). The authors have expanded the methodology by including a combined structural equation model (S.E.M.) to test hypotheses and use artificial neural networks (ANN) to forecast the significance of contributing variables concerning satisfaction and loyalty. The study's findings contribute to a more comprehensive understanding of the literature on the connection between customer loyalty and satisfaction, consumer behavior, and service marketing in the beauty care industry.

Loyalty, Customer, Satisfaction, Determinant, Beauty Clinic, Business Success

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