The Impact of Destination Image and Perceived Quality on Tourist

Loyalty in the Indonesian Tourism Industry

Keni Keni

, Ferry Oktora

and Nicholas Wilson

Management Department, Tarumanagara University, Jakarta, Indonesia

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

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

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:

: Destination image has positive impact on

tourist satisfaction.

: 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

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:

: Destination image has positive impact on

tourist loyalty.

: 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:

: 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

between perceived quality and tourist loyalty. Based

on the literatures above, the hypotheses can be

established as follows:

: Destination image has positive impact on

loyalty through satisfaction

: 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)

The Impact of Destination Image and Perceived Quality on Tourist Loyalty in the Indonesian Tourism Industry

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

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

Destination image had a

positive impact on tourist

satisfaction.

Supported

Perceived quality had a

positive impact on tourist

satisfaction.

Supported

Destination image had a

positive impact on tourist

loyalty.

Supported

Perceived quality had a

positive impact on tourist

loyalty.

Supported

Tourist satisfaction had a

positive impact on tourist

loyalty

Supported

Destination image had a

positive impact on tourist

loyalty through tourist

satisfaction

Supported

Perceived quality had a

positive impact on tourist

loyalty through tourist

satisfaction tourist

loyalty.

Supported

Based on the results, it could be concluded that

all hypotheses were supported. Hypothesis H

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

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

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

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

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

and H

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

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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