The Effect of Environmental Policy by Considering the Mediating Role of Customer Satisfaction and Loyalty

ABSTRACT: This thesis aimed to explore the effects of environmental policies (EP) on three dependent variables including customer satisfaction (CS), customer loyalty (CL) and market performance (MP). It also investigated the effects of employing EP on hotel market performance by considering the mediating role of customer satisfaction and customer loyalty in this relationship. Through a quantitative research method, a survey questionnaire administered to international tourists and managers of five star hotels in Northern Cyprus. For the purpose of this study, eight hypotheses were tested and the result of the analysis revealed that six hypotheses supported and two rejected. In the meantime, to test the hypothesis, structural equation modeling was also used. Results demonstrated that managers should increase the applicability of EP and green practices in their hotel to enhance the customer satisfaction and loyalty. According to the findings of the study, EP increases customer satisfaction, customer loyalty and market performance directly and indirectly through mediating role of CS. The relationship between CL and MP didn’t not support as well as mediating role of CL between EP and MP. These inconsistencies of the result can explain regarding the characteristics of hotel industry in North Cyprus. Hotel industry in North Cyprus needs to improve their performance. Keywords: Environmental Policy, Customer satisfaction, customer Loyalty, Market Performance, Northern Cyprus. …………………………………………………………………………………………………………………………