Analysis of Service Quality and Price Perception on Customer Loyalty with Perceived Value as a Mediating Variable: A Conceptual Study at Villa Star Homestay Takengon

Abstract

The tourism and hospitality industry has become one of the key contributors to regional economic development, particularly in emerging tourist destinations such as Takengon, Central Aceh. As competition among accommodation providers intensifies, understanding the factors that drive customer loyalty is essential for sustaining business growth. This conceptual study aims to explore the mediating role of perceived value in the relationship between service quality and price perception toward customer loyalty among visitors of Villa Star Homestay Takengon. Drawing on the principles of Service Quality Theory and Equity, this research proposes that high service quality and fair price perception enhance perceived value, which subsequently strengthens customer loyalty. Perceived value functions as the key psychological mechanism through which customers evaluate whether the service experience and price they receive meet or exceed their expectations. The study employs a conceptual framework derived from existing literature on consumer behavior and hospitality management, integrating key constructs such as tangibility, reliability, responsiveness, price fairness, and value-for-money perception. The proposed model provides a theoretical foundation for future empirical testing using visitors of Villa Star Homestay as the research sample. By presenting this conceptual model, the paper contributes to the theoretical understanding of customer loyalty formation in the hospitality industry and offers managerial insights for small-scale accommodation providers in developing regions. Specifically, it highlights the importance of balancing service excellence and price fairness to build long-term customer relationships and enhance competitive advantage in the tourism sector.