Recent research has shown that the cost of attracting new customers is five times higher than maintaining existing customers and so it would be beneficial for an enter-prise to have its own loyal customers. Since customer loyalty can reduce marketing cost, extend market share and increase revenue, it is important to understand how to retain or enhance customer loyalty. This study thus aims to explore (1) how service quality, brand image, and customer satisfaction might affect customer loyalty and (2) how brand image and customer satisfaction might influence service quality and customer loyalty. Using an on-line survey design, the researcher adopted convenience sampling to ask the drivers to fill out the questionnaire about the service quality, brand image, customer satisfaction and customer loyalty of their owned cars. To conduct the survey, a total of 250 questionnaires were delivered, all of which were retrieved. Among them, 12 question-naires were invalid, and 238 questionnaires were valid. So the valid retrieve rate was 95.2%.
The results showed that brand image and customer satisfaction were positively correlated with service quality as well as customer loyalty. It is thus suggested that brand image and customer satisfaction, functioning well as intermediary variables, are the key factors that mediate customer satisfaction to affect customer loyalty.
