The Effect of Sevice Quality on Customer Loyalty with Brand Trust as a Mediating Variable : A Study of PT. Additon Karya sembada’s Admixture Products
Keywords:
Keywords: service quality, Word of Mouth, brand trust, credit decision, BPRAbstract
Service quality remains a critical issue for customer retention in business-to-business (B2B) industries where operational failure may directly disrupt project performance. This study investigates how service quality influences customer loyalty and examines the role of brand trust within the Indonesian construction admixture industry, with empirical evidence drawn from PT.Additon Karya Sembada. The study is motivated by recent indications of declining customer acquisition and increasing attrition among project-based clients, suggesting potential weakness in service execution and operational reliability. A quantitative approach was employed using a cross-sectional survey of 112 active B2B customers, including distributors, contractors, and concrete producers. Data were collected through structured questionnaires and analyzed using Partial Least Squares-Structural Equation Modeling (PLS-SEM) with SmartPLS software. Service quality, brand trust and Customer loyalty were measured using established multidimensional scales adapted to the industrial context. The results reveal that service quality has a strong and statiscally significant effect on customer loyalty, as well as a significant influence on brand trust. However, brand trust does not demonstrate a significant impact on customer loyalty and does not function as a mediating variable between service quality and loyalty. These findings indicate that, within performance-oriented B2B markets, customer loyalty is primarily shaped by tangible service outcomes such as delivery reliability, responsiveness, and technical problem resolution rather than by trust-based or emotional considerations. This study contributes to the service quality and relationship marketing literature by highlighting the context-dependent role of brand trust in B2B settings. From a managerial perspective, the findings suggest that firms in the construction chemical sector should prioritize operational service excellence as a strategic mechanism for sustaining long term customer loyalty
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