The Impact of Service Innovation and Leisure Satisfaction on Customer Loyalty in Leisure Farms

Abstract

The study explores the impact of service innovation on customer loyalty within leisure farms, an emerging niche in the leisure industry. Utilizing a structured questionnaire targeting residents in the Taoyuan area in Taiwan, we employed factor analysis and multiple regression models to dissect the data. The primary aim was to ascertain whether service innovations such as the introduction of novel recreational activities or enhanced customer service processes significantly influence repeat patronage and word-of-mouth recommendations, which are critical indicators of customer loyalty.
Our methodology involved collecting responses from 366 participants, ensuring a comprehensive representation of the
demographic and economic diversity within the region. The study rigorously tests the hypothesis that higher levels of service innovation correlate positively with customer loyalty, controlling for variables such as age and educational background. Findings reveal that service innovation and leisure activity satisfaction significantly impact customer loyalty, while environmental satisfaction has no notable effect. The results suggest that providing unique leisure experiences and high-quality services is key to enhancing customer loyalty, with physical facilities being important but not the deciding
factor. These findings contribute to the literature by highlighting the potential of service innovation as a strategic tool for cultivating loyalty and enhancing competitive advantage in the leisure farm industry.