The Impact of Destination Image and Perceived Quality on Tourist
Loyalty in the Indonesian Tourism Industry
Keni Keni
1
, Ferry Oktora
1
and Nicholas Wilson
2
1
Management Department, Tarumanagara University, Jakarta, Indonesia
2
Master of Management Department, Tarumanagara University, Jakarta, Indonesia
Keywords: Destination Image, Perceived Quality, Tourist Satisfaction, Tourist Loyalty, Tourism Industry.
Abstract: This research was conducted in order to determine both direct and indirect effect of destination image and
perceived quality on tourist loyalty through tourist satisfaction. This research implemented survey method,
in which a total of 150 respondents participated in this research. Data were collected using questionnaires
that were electronically distributed to all respondents. The data then were analysed using Partial Least
Squares-Structural Equation Modelling (PLS-SEM) method. Based on the data analysis, it was concluded
that both destination image and perceived quality had positive impact on tourist loyalty, either directly or
indirectly through tourist satisfaction.
1 RESEARCH INTRODUCTION
Indonesia is one of countries which had so many
objects or places designated as tourist destination.
However, not all of those places were visited by
tourists. Furthermore, the rapid development of
technology had helped countries to spread the
information and promotional activities of its tourism
destination quickly and accurately. In terms of its
tourism sector, the number of tourists visited
Indonesia had increased steadily for the past 15
years. According to the data published by Biro Pusat
Statistik (BPS), a number of tourists visited
Indonesia had increased, from a total of 195.77
million times in 2001, to 264.34 times in 2016. This
trend could help explain the fact that the number of
tourists visited Indonesia, either local or
international tourists, had increased steadily for the
past 15 years.
According to Oliver (1999), tourist loyalty could
be defined as a strong commitment by customers to
re-visit the place or destination that he or she had
ever visited before, regardless of whatever condition
might hamper that scenario. Tourist loyalty played
an important role in making a place as a successful
tourism destination since retaining tourists could
also be perceived as retaining or even improving the
financial condition of a place. Furthermore, the
existence of tourist loyalty could also help in
indirectly promoting the place to others (for example:
when a tourist promoted the place to his/her peers).
Figure 1: Number of Visitors/Tourists Visiting Indonesia
(2001 – 2016).
Previous research by Chiu et al., (2016) had
found that tourist loyalty could be affected by
destination image and perceived quality, either
directly or indirectly through tourist satisfaction.
Furthermore, previous research by Jalivand et al.
(2014) had found that satisfaction could mediate the
relationship between perceived value and perceived
quality towards loyalty. Moreover, previous research
by Rajaratnam et al., (2015) had found that
perceived destination quality could positively predict
the relationship between satisfaction and behavioral
intentions. Another research by Chen et al., (2011)
also concluded that tourist loyalty could be predicted
Keni, K., Oktora, F. and Wilson, N.
The Impact of Destination Image and Perceived Quality on Tourist Loyalty in the Indonesian Tourism Industry.
DOI: 10.5220/0008488300670075
In Proceedings of the 7th International Conference on Entrepreneurship and Business Management (ICEBM Untar 2018), pages 67-75
ISBN: 978-989-758-363-6
Copyright
c
2019 by SCITEPRESS Science and Technology Publications, Lda. All rights reserved
67
by service quality, either directly or indirectly
through place attachment and tourist satisfaction.
Hunt (1982) defined destination image as
potential customers’ or visitors’ perception towards
certain place or destination. In terms of choosing the
right place to visit, the image of a place played an
important role in influencing tourists or people’s
opinion on visiting the place. Destination image
could be defined as the reciprocal relationship
between tourist and the place of destination, and
both sides will gain some advantages from this
relationship (Kong et al., 2015). Furthermore, Chiu
et al., (2016) also found that destination image is a
significant predictor towards tourist loyalty.
Moreover, it could also be understood that the
success of a destination could be seen from how
such a place could create or shape loyalty in the
tourists’ mind and heart. In regards with this
statement, the high level of loyalty that tourists had
towards the place could increase the number of
visitors on that place. Beside destination image,
perceived quality was also identified as one of
factors which could increase the level of loyalty on
tourists toward the place. Perceived quality was
defined as tourists’ judgement toward the
competitive advantages of a place or destination
thoroughly (Zeithaml, 1988). Javiland et al., (2014)
further argue that perceived quality is an important
predictor or factor in affecting tourist loyalty, since
tourist’s experience in visiting the place will serve as
a main factor in making some consideration on
whether or not tourists will visit the place again in
the future.
Previous research conducted by Yazdanifard and
Mercy (2011) had stated that tourist satisfaction
could be differentiated into two perspectives, either
tourist satisfaction was seen as a result, or tourist
satisfaction was seen as a process. If tourist
satisfaction was seen as a result, then satisfaction
could be perceived as a result generated from
customer’s experience in visiting the place, in which
it could be learned as how image and perceived
quality serve as factors which affect tourist’s
psychological state. If satisfaction was seen as a
process, then satisfaction could be understood as the
evaluation, perception, and psychological process
which could alter decision-making process and serve
as an important factor in mediating tourist loyalty.
Based on the background above, authors would like
to uncover the impact of destination image and
perceived quality toward tourist satisfaction and
tourist loyalty in the Indonesian tourism industry.
2 LITERATURE REVIEW
2.1 Destination Image
Destination image played an important role in
affecting tourists’ decision making process and their
intention to re-visit the place in the future (Baloglu
and McCleary, 1999). Furthermore, Zang et al.,
(2014, p.215) stated that “destination image is
generally interpreted as a compilation of beliefs and
impressions based on information processing from
various sources over time that result in a mental
representation of the attributes, benefits, and district
influence sought of a destination.” Furthermore, Day
et al., (2012, p. 274) also explain destination image
as a “set of associations that people have of the
destination”. Kim and Richardson (2003, pp.218)
and Pike (2008) further stated that destination image
is a “totality of impressions, beliefs, ideas,
expectations, and feelings accumulated towards a
place over time”.
Based on the definitions above, it could be
concluded that destination image is a combination of
faith and experience about a place which is derived
from the experience that tourists had toward that
place.
2.2 Perceived Quality
Perceived quality had been one of the most
discussed topics for the past 20 years. Parasuraman
et al., (1985, pp.42) stated that perceived quality “is
more difficult for the consumer to evaluate than
goods quality. Service quality perceptions result
from a comparison of consumer expectations with
actual service performance.” Based on the
definition, then perceived quality could be
understood as customer’s judgement towards a
product which was used or consumed. Furthermore,
Zeithaml (1988, pp.3) define perceived quality as
“The consumer’s judgement about a product’s
overall excellence or superiority. Furthermore,
Perceived quality is: a. different from objective or
actual quality, b. a higher level of abstraction rather
than a specific attribute of a product, c. a global
assessment that in some cases resembles attitude,
and d. a judgment usually made within a consumer’s
evoke set.” Moreover, Aaker (1991 in Aziz et al.,
2012, pp.214) defined perceived quality as “An
intangible, overall feeling about a particular brand.
High-perceived quality increases the effectiveness of
marketing programs, and leads to purchase
decisions, position a brand on the perceived quality
dimension, provides an opportunity to charge a
ICEBM Untar 2018 - International Conference on Entrepreneurship and Business Management (ICEBM) Untar
68
premium prices, influences a channel member
interest in a positive way, and offers an opportunity
to introduce brand extensions.”
2.3 Tourist Satisfaction
Yazdanifard dan Mercy (2011) stated that tourist
satisfaction could be differentiated into two
phenomena, which are whether tourist satisfaction
was seen as a result, or as a process. If tourist
satisfaction was seen as a result, then satisfaction
could be perceived as a result generated from
customer’s experience in visiting the place, in
which, it could be learned as how image and
perceived quality serve as factors which affect
tourist’s psychological state. If satisfaction was seen
as a process, then satisfaction could be understood as
the evaluation, perception, and psychological
process which could alter decision-making process
and serve as an important factor in mediating tourist
loyalty (Hunt, 1983). Furthermore, tourist
satisfaction could also be defined as tourist’s
response which derived or generated from their
experience of visiting the place.
Oliver (1997, pp.13) defined satisfaction as
“Consumer’s fulfilment response. It is a judgment
that a product or service feature, or the product or
service itself, provided (or is providing) a
pleasurable level of consumption-releated fulfilment,
including levels of under or over fulfilment.”
Furthermore, Jalilvand et al., (2014, pp.320) defined
satisfaction in the tourism industry as “The extent of
overall pleasure or contentment felt by the visitor,
resulting in the ability of the trip experience to fulfil
the visitor’s desires, expectations and needs in
relation to the trip. Thus, satisfaction is regarded as
a post-purchase measure of performance of the
destination.”
2.4 Tourist Loyalty
Aaker (1991 in Pike et al., 2010, pp.439) stated that
brand loyalty could be defined as the attachment
that a customer has to a brand”. In this case, loyalty
exists when a person had used or bought
product/services repeatedly and he/she felt excited
with those experiences. In terms of loyalty, Oliver
(1999, pp.34) stated that: “loyalty is a deeply held
commitment to rebuy or re-patronize a preferred
product/service consistently in the future, thereby
causing repetitive same brand or same brand set
purchasing despite situational influences and
marketing efforts having the potential to cause
switching behavior.” Meanwhile, Loureiro and
González (2008, pp.118) stated that “consumer
loyalty is one of the most critical aspects for
destination marketers because it is more desirable,
and less costly, to retain existing tourists than to
attract new ones”. In this case, tourist loyalty had
served as an important aspect for marketers in order
to effectively promote the place/destination in order
to attract new tourists.
2.5 The Impact of Destination Image
toward Tourist Satisfaction
Previous study by Chiu et al., (2016) had found that
destination image played an important role in
affecting or determining tourist satisfaction. In this
case, as tourist had a good perception regarding an
image of a place, then, either directly or indirectly, it
will also lead the satisfaction level of the tourist to
be higher. These findings were further strengthened
by another research by Loureiro dan González (2008)
which found that image is a direct and positive
antecedent to satisfaction. Another research by
Prayag dan Ryan (2012) also found that the image
possessed by a place could affect the psychological
and the emotional state of the tourist.
2.6 The Impact of Perceived Quality
toward Tourist Satisfaction
Previous research conducted by Jalilvand et al.,
(2014) found that there was a positive and causal
relationship between perceived quality and tourist
satisfaction. Furthermore, Zabkar et al., (2010)
stated that perceived quality had become a factor
which preceeded tourist satisfaction, in which,
satisfaction occured or existed as a form of
emotional perception generated from the tourist’s
experience towards a place. Therefore, it is found
that there was a positive impact of perceived
quality on visitor satisfaction. Similarly,
Rajaratnam et al., (2015) also found that perceived
quality was an important and positive attribute in
affecting tourist satisfaction. Based on the literatures
above, the hypotheses can be established as follows:
H
1a
: Destination image has positive impact on
tourist satisfaction.
H
1b
: Perceived quality has positive impact on
tourist satisfaction.
2.7 The Impact of Destination Image
on Tourist Loyalty
Chen dan Tsai (2007) stated that destination image
The Impact of Destination Image and Perceived Quality on Tourist Loyalty in the Indonesian Tourism Industry
69
played an important role in affecting tourist loyalty,
in which positive image could give a positive
intention toward tourists to recommend the place or
destination to their peers. Such an explanation or
finding was further supported by Loureiro and
González (2008) toward tourist loyalty. Furthermore,
previous researches by Brunner et al., (2008) and
Akroush et al., (2016) also found that destination
image had a strong and positive impact on loyalty,
in which tourist loyalty will grow stronger when
a place or destination possess a positive image in
the public’s eyes.
2.8 The Impact of Perceived Quality on
Tourist Loyalty
Previous research conducted by Gallarza et al.,
(2013) shown that perceived quality was one of the
most important factors in affecting tourist loyalty.
The higher the level of quality felt by tourist, then
the level of loyalty among tourists would also
increase. Moreover, another research conducted by
Jalilvand et al. (2014) also found that tourist’s
perceived quality towards a destination or place
would affect his/her loyalty towards the place.
Therefore, it could be concluded that perceived
quality had a positive and direct impact on tourist
loyalty.
Zabkar et al., (2010) further explain that
customers’ perceived quality towards a
destination will shape tourist’s attitude toward
that destination. Positive perceived quality felt by
tourists will increase their chance to re-visit the
site and recommend it to others, while negative
perceived quality will decrease their chance to re-
visit or recommend the destination to others in
the future. Previous studies also found the
positive relationship between perceived quality
and tourist loyalty (Rajaratnam et al., 2015;
Loureiro & González, 2008; Pike et al., 2010).
Based on the literatures above, the hypotheses can
be established as follows:
H
2a
: Destination image has positive impact on
tourist loyalty.
H
2b
: Perceived quality has positive impact on
tourist loyalty.
2.9 The Impact of Tourist Satisfaction
on Tourist Loyalty
Oliver (1999) stated that inducing satisfaction on
tourist while visiting a destination is an important
step in forming or shaping loyalty in the tourist’s
mind. Furthermore, previous research by Chiu et al.,
(2016) had shown that there’s a positive and
significant impact of tourist satisfaction on tourist
loyalty. Tourist satisfaction is a form of feeling felt
by tourist after they visited a certain place or
destination. It could be said that tourists are satisfied
with their visit when there is a positive feeling on
tourists’ mind towards that destination. Such a
positive feeling could shape tourist loyalty in the
future (Chen et al., 2011).
Previous studies also shown that there is a
positive impact of tourist satisfaction on tourist
loyalty (Khoo-Lattimore and Prayag, 2016;
Rajaratnam et al., 2015; Jalilvand et al., 2014;
Brunner et al., 2008; Loureiro and González, 2008).
Based on the literatures above, the hypothesis can be
established as follow:
H
3
: Tourist satisfaction has positive impact on
tourist loyalty.
2.10 The Impact of Destination Image
on Loyalty through Tourist
Satisfaction
Previous study conducted by Bloemer dan Ruyter
(1998) shown that there is an indirect effect of
destination image on loyalty, in which such a
relationship was mediated by tourist satisfaction.
Furthemore, Chiu et al., (2016) also stated that
destination image played an important role in
shaping tourist satisfaction which could increase
tourist’s intention to re-visit the place of destination
in the future. Previous research by Loureiro dan
González (2008) had found that image had an
indirect impact on loyalty through satisfaction. In
this case, good image will increase satisfaction, in
which in turns will incease loyalty in the tourist’s
mind.
2.11 The Impact of Perceived Quality on
Loyalty through Tourist
Satisfaction
Previous studies conducted by Jalilvand et al., (2014)
and Loureiro and González (2008) found that
perceived quality had positive impact on loyalty
through satisfaction. As tourist had a good
perception of quality towards a place or destination,
it will in turn satisfy the tourist, which in the end
will increase loyalty. Furthermore, other researches
conducted by Zabkar et al., (2010) and Rajaratnam
et al., (2015) had shown that tourist satisfaction had
a positive impact in mediating the relationship
ICEBM Untar 2018 - International Conference on Entrepreneurship and Business Management (ICEBM) Untar
70
between perceived quality and tourist loyalty. Based
on the literatures above, the hypotheses can be
established as follows:
H
4a
: Destination image has positive impact on
loyalty through satisfaction
H
4b
: Perceived quality has positive impact on
loyalty through satisfaction
Figure 2: Research Model.
3 RESEARCH METHODOLOGY
This research utilized survey method, in which
questionnaire was chosen as the instrument to collect
all of the data needed for this research. There are
two parts in this questionnaire, in which the first part
contains the questions regarding the demographics
of the respondents. On the other hand, the second
part of this questionnaire contains a total of 28 items
which represent all 4 variables analyzed in this
research. From the total of 28 items, 12 items
representing the variable of destination image were
adapted from Akroush et al., (2016) and Prayag
dan Ryan (2012); 6 items representing the variable
of perceived quality were adapted from Jalilvand et
al., (2014), 5 items representing the variable of
tourist satisfaction were adapted from Chiu et al.
(2016) and Jalilvand et al., (2014), and the
remaining 5 items representing the variable of tourist
loyalty were adapted from Chiu et al., (2016) and
Jalilvand et al., (2014). Furthermore, interval scale
with 5-Point Likert Scale method was also used in
this research. Each respondent was asked to give
their respond regarding each statement presented on
the second part of this questionnaire, which was
consisted of “1” to reflect their strong disagreement
towards the statement, “2” to reflect their
disagreement towards the statement, “3” to reflect
that they are neither agree nor disagree towards the
statement, “4” to reflect their agreement towards the
statement, and “5” to reflect their strong agreement
towards the statement.
After gathering all data, the data analysis process
used Partial Least Squares - Structural Equation
Modeling (PLS - SEM) method by applying the
SmartPLS 3.2.7 software. Furthermore, there are
two steps needed to be conducted before analyzing
the data in order to explore the relationship between
variables. These steps are the outer model analysis
and the inner model analysis. The outer model
analysis was conducted in order to determine the
validity and the reliability of the model, while the
inner model analysis was conducted to determine the
relationship between variables.
4 RESULTS AND ANALYSIS
A total of 150 respondents had already participated
in this research. The respondents who were chosen
are those who had ever visited any tourism places or
destinations in Indonesia during the past year.
Furthermore, this research implements the
convenience sampling method, in which respondents
are those who had visited any tourism places in
Indonesia during the past year. Based on the
respondents’ profile analysis, most of the
respondents are female (52.7%). Questionnaires
were personally administered to the respondents and
also electronically distributed (by using email and
online survey form). The response rate of this
research is 100% since all 150 questionnaires were
filled in and returned. Then, after further assessment
was made regarding the response given in the
questionnaires, all 150 questionanires were deemed
valid and usable in this research.
All data from the questionnaires were processed
using Partial Least Squares - Structural Equation
Modeling (PLS - SEM) method by using SmartPLS
3.2.7 software. Using PLS - SEM method, the outer
model and inner model measurement are needed to
be conducted in order to determine the relationship
between variables and to test the hypotheses
proposed in this research.
Before testing the hypotheses in this research by
conducting the inner model analysis, the outer model
analysis needs to be assessed in order to confirm the
validity and the reliability of the model. In the outer
model analysis, several criteria need to be fulfilled in
order to classify a model as valid and reliable, and in
order to conduct the inner model analysis. Several
criteria that required to be fulfilled are: The value of
AVE should be above 0.5 and the value of AVE of
each latent construct should be higher than the
construct’s highest squared correlation with any
other latent construct (fornell-larcker criterion)
as
The Impact of Destination Image and Perceived Quality on Tourist Loyalty in the Indonesian Tourism Industry
71
suggested by Hair et al., (2011). The factor loadings
value of each indicators should exceed 0.7 as
suggested by Henseler et al., (2009), and the value
of both cronbach’s alpha and composite reliability
should be greater than 0.7 as suggested by Hair et al.,
(2011).
After the model was confirmed to pass the outer
model analysis, which means that the model had
deemed valid and reliable, the inner model analysis
was then conducted in order to find out and assess
the relationships between variables, to find out the
mediating effect of mediating variables, as well as to
test whether or not the hypotheses were supported.
4.1 Outer Model Analysis
Outer model analysis was conducted in order to test
the validity and reliability of the model. After
running the outer model, it was confirmed that all
criteria in the outer model analysis had been fulfilled,
since the value of factor loadings of each item, the
value of AVE, and composite reliability of each
variable had exceeded the cut-off value of 0.50 and
0.70 respectively. Furthermore, the value of AVE of
each latent construct had been higher than the
construct’s highest squared correlation with any
other latent construct. Therefore, it could be
concluded that all indicators and variables included
in the model are valid and reliable, and the inner
model analysis could be conducted afterwards.
Based on the outer model analysis, it was revealed
that several indicators needed to be omitted since the
factor loading value of those indicators were below
0.7. Indicators which are needed to be omitted are
DI1, DI2, DI3, DI4, DI5, DI6, PQ3, PQ4, TL2, and
TS1. After omitting those items, the model was re-
run, and it was revelaed that all indicators and
variables had exceeded the minimum cut-off value
of all criteria. Therefore, all data had been deemed
valid and reliable, and the inner model analysis
could be conducted.
Table 1: Outer Model Analysis Results (Validity Analysis).
DI PQ TL TS
DI 0,752
PQ 0,498 0,729
TL 0,699 0,557 0,831
TS 0,737 0,530 0,728 0,797
Table 2: Discriminant Validity Analysis.
DI PQ TL TS AVE
DI10 0,853
0.566
DI11 0,753
DI12 0,744
DI7 0,681
DI8 0,650
DI9 0,812
PQ1 0,806
0.532
PQ2 0,686
PQ5 0,714
PQ6 0,705
TL1 0,856
0.691
TL3 0,854
TL4 0,740
TL5 0,868
TS2
0,761
0.635
TS3
0,837
TS4
0,760
TS5
0,826
Table 3: Reliability Analysis.
Variables Cronbach's Alpha Composite Reliability
DI 0,845 0,886
PQ 0,705
0,819
TL 0,849
0,899
TS 0,807
0,874
4.2 Inner Model Analysis and
Hypotheses Testing
Inner model analysis was conducted in order to
analyze and determine the relationship between
variables, analyze the mediating effect of mediating
variable in this research, and to test the hypotheses
proposed in this research. This research used t-value
to test the hypotheses with a cut-off value of 1.96
and 5% significance level, which means that the
hypotheses will be rejected if the t-value of that
hypothesis was below the cut-off value of 1.96, and
supported if the t-value exceeded 1.96.
Table 4: R-Squared Analysis.
Variables R-Square
TL 0,613
TS 0,578
Based on the R-Square analysis, it was revealed
that variable tourist loyalty had an r-square value of
0,613, which could be interpreted as 61,3% of
ICEBM Untar 2018 - International Conference on Entrepreneurship and Business Management (ICEBM) Untar
72
variable tourist loyalty could be explained by
variables destination image, perceived quality and
tourist satisfaction. Meanwile, the rest of them,
which is 38,7% (100% - 61,3%), were explained by
another variable of tourist satisfaction had a R-
Squared value of 0,578, which could be interpreted
that 57,8% of variable tourist satisfaction could be
well explained by variables destination image and
perceived quality, while the rest of them, which is
42,2% (100% - 57,8%), were explained by another
variables that are not included in this study.
Table 5: Path Coefficient Analysis.
Relationships T-Statistics P-Values
DI -> TL 3,478 0,001
DI -> TS 11,969 0,000
PQ -> TL 3,495 0,000
PQ -> TS 3,400 0,001
TS -> TL 5,088 0,000
Table 6: Indirect Effects Analysis.
Relationships
Indirect
Effect
T-Statistics P-Values
DI -> TS -> TL 0,249 4,361 0,000
PQ -> TS -> TL 0,086 2,778 0,005
Table 7: Hypotheses Testing Results.
Hypotheses Testing Results Conclusions
H
1a
Destination image had a
positive impact on tourist
satisfaction.
H
1a
Supported
H
1b
Perceived quality had a
positive impact on tourist
satisfaction.
H
1b
Supported
H
2a
Destination image had a
positive impact on tourist
loyalty.
H
2a
Supported
H
2b
Perceived quality had a
positive impact on tourist
loyalty.
H
2b
Supported
H
3
Tourist satisfaction had a
positive impact on tourist
loyalty
H
3
Supported
H
4a
Destination image had a
positive impact on tourist
loyalty through tourist
satisfaction
H
4a
Supported
H
4b
Perceived quality had a
positive impact on tourist
loyalty through tourist
satisfaction tourist
loyalty.
H
4b
Supported
Based on the results, it could be concluded that
all hypotheses were supported. Hypothesis H
1a
proposed that destination image had a positive
impact on tourist satisfaction. With a t-value of
11.969 which was well above the cut-off value of
1.96 (11.969 > 1.96), it could be concluded that this
hypothesis was supported in this research.
Hypothesis H
1b
proposed that perceived quality had
a positive impact on tourist satisfaction. With a t-
value of 3.400 which was well above the cut-off
value of 1.96 (3.400 > 1.96), it could be concluded
that this hypothesis was also supported in this
research. Hypothesis H
2a
proposed that destination
image had a positive impact on tourist loyalty. With
a t-value of 3.478 which was well above the cut-off
value of 1.96 (3.478 > 1.96), it could be concluded
that this hypothesis was also supported in this
research. Hypothesis H
2b
proposed that perceived
quality had a positive impact on tourist loyalty. With
a t-value of 3.495 which was above the cut-off value
of 1.96 (3.495 > 1.96), it could be concluded that
this hypothesis was also supported in this research.
Hypothesis H
3
proposed that tourist satisfaction had
a positive impact on tourist loyalty. With a t-value of
5.088 which was above the cut-off value of 1.96
(5.088 > 1.96), it could be concluded that this
hypothesis was also supported in this research.
Furthermore, based on the results of the
mediation analysis, it could be concluded that tourist
satisfaction mediated the impact of destination
image on tourist loyalty in a positive manner, since
the mediation value (t-value) of the relationships had
exceeded the cut-off value of 1.96 (4.361 > 1.96).
Moreover, it could also be stated that tourist
satisfaction mediated the impact of perceived quality
on tourist loyalty in a positive manner, since the
mediation value (t-value) of the relationships had
also exceeded the cut-off value of 1.96 (2.778 >
1.96). Therefore, it could be concluded that
hypothesis H
4a
and H
4b
were also supported in this
research.
5 CONCLUSIONS
5.1 Conclusions
This research was conducted in order to determine
the impact of destination image and perceived
quality on tourist loyalty, either directly or indirectly
through tourist satisfaction. Based on the results of
the data analysis, it could be concluded that both
destination image and perceived quality had a
positive impact on tourist loyalty, either directly of
indirectly through tourist satisfaction. This
conclusion was derived from the fact that all
hypotheses proposed in this research were supported.
The results generated indicate that the image
possessed by a place or destination had an important
role in determining tourist loyalty. When a place or
The Impact of Destination Image and Perceived Quality on Tourist Loyalty in the Indonesian Tourism Industry
73
destination had a positive image conveyed on it, then
it will be more likely that tourists will be satisfied
because they know that the place that they’re going
to visit or the place that they’ve visited had a good
image conveyed to it. In this scenario, it will be
more likely that such feeling of satisfaction will help
the place to induce loyalty on tourists’ mind.
On the other hand, other than destination image,
the results generated in this research also indicate
that perceived quality also had positive impact on
tourist loyalty, both directly and indirectly through
tourist satisfaction. Similar to destination image,
tourist’s perception regarding the quality of a place
could play an important role in determining tourists’
satisfaction, as tourists are more likely to get
satisfied with their experience in visiting the
destination when the perceived quality of the
destination is good, and vice versa. Furthermore,
when tourists are satisfied with the place because of
its quality, then they will be more likely to become
loyal to the place. Their tendency to re-visit the site
and told their peers and colleagues about the site will
be more likely to increase as well.
Therefore, based on the conclusions stated above,
it is suggested for the owner or developer of a
destination to keep promoting its destination, not only
in order to increase people’s likelihood to know and
visit this place, but also to maintain the image
possessed by the place. Furthermore, it is also
suggested that the owners of a place should always
keep control of their place/destination to prevent any
malicious or negative things which could potentially
tarnish the image or even the quality of the
destination.
5.2 Research Limitations and Direction
for Further Research
This research was conducted in the Indonesian
tourism industry, which might hinder the
generalizability of the findings generated in this
research. Therefore, it is highly suggested that future
research could conduct the analysis of this topic in
the other countries. Furthermore, the numbers of
respondents in this research are 150, which mean
that higher number of respondents might help
improving the generalizability of this study.
Therefore, it is suggested for future research to
increase the number of respondents in the future.
Moreover, since only four variables discussed in this
research, authors suggest that future research could
increase or add other variables which could help
increasing the scope of this research as well as
broadening the scope of the model.
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