Author(s): Slamet Ahmadi, Susanti Widhiastuti, Sri Lestari Prasilowati
The aim of the current research is to examine and analyze the effect of service quality and satisfaction on loyalty with the mediation of zone of tolerance. In the research, zone of tolerance refers to an area between desired service and adequate service and plays a role as mediator in the effect of service quality and satisfaction on loyalty. The data collection method used questionnaire with a sample of 409 respondents from five management departments at five private universities in the LLDIKTI Region III Jakarta. Data were analyzed using Partial Least Square-Structural Equation Modeling supported by Warp PLS 7.0. Result of research shows that service quality and satisfaction have positive and significant effect on loyalty. Service quality, however, was not mediated by zone of tolerance because the function of zone of tolerance in the relationship of satisfaction and loyalty was found to be low if the attractiveness of alternative options is proved to be high. The effect of satisfaction on loyalty was mediated by zone of tolerance and the effect of zone of tolerance on loyalty was positive. The finding confirms that there is significant difference between respondents whom have narrow and wide zone of tolerance. The research has theoretical and practical implication.