The Mediating Role of Service Satisfaction in the Relationship Between Marketing Strategies and Taxpayer Loyalty: Evidence from Binjai Primary Tax Office
Keywords:
Marketing Strategy, Service Satisfaction, Taxpayer Loyalty, PLS-SEM, Tax AdministrationAbstract
Tax compliance is a persistent challenge for revenue authorities worldwide. This study examines the mediating role of service satisfaction in the relationship between marketing strategies and taxpayer loyalty, using the Binjai Primary Tax Office (KPP Pratama Binjai) as the empirical context. A quantitative approach was adopted, with data gathered through structured questionnaires administered to 100 active individual taxpayers selected via Slovin’s formula from a population of 98,169. Data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) with SmartPLS software. Findings reveal that marketing strategies exert a significant positive effect on both taxpayer loyalty and service satisfaction, while service satisfaction significantly predicts loyalty and partially mediates the strategy-loyalty linkage. These results underscore that well-designed service communication and taxpayer engagement programmes must be coupled with high-quality service delivery to cultivate durable loyalty. The study contributes to the nascent literature on public-sector marketing and fiscal loyalty by providing empirical evidence from an emerging-market tax administration context.
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