The Mediating Role Of Islamic Service Quality Between Product Attributes And Customer Loyalty: Evidence From A Halal-Based Sme In Indonesia

Abstract

This study examines the mediating role of Islamic service quality between product attributes and customer loyalty in a halal-based SME context, using Riana Parfum in Cirebon, Indonesia, as a case study. The research was motivated by the growing competition in halal markets and the lack of empirical studies exploring how Islamic ethical values enhance customer loyalty beyond product quality alone. The study applied a quantitative approach with a survey method involving 250 respondents drawn from a population of 715 customers using the Isaac sampling method (Hair et al., 2023). Data were collected using a structured questionnaire with 19 validated indicators measured on a five-point Likert scale and analyzed using Structural Equation Modeling (SEM) via SmartPLS 3. The findings reveal that product attributes significantly influence Islamic service quality and customer loyalty, while Islamic service quality also mediates the relationship between product attributes and customer loyalty. This indicates that ethical, Shariah-compliant service transforms tangible product excellence into emotional loyalty. The study contributes to Islamic marketing theory by confirming Islamic service quality as a strategic mediating construct, emphasizing its dual role in upholding ethical business conduct and enhancing consumer trust. Future research may explore moderating variables such as religiosity or digital engagement to deepen understanding of halal consumer behavior.