THE ROLE OF CUSTOMER SATISFACTION IN MEDIATING THE INFLUENCE OF USER-GENERATED CONTENT (UGC) AND SERVICE QUALITY ON ELECTRONIC WORD-OF-MOUTH (E-WOM)

Developments in tourism and digital technology have transformed consumer behavior regarding information seeking, accommodation selection, and experience sharing via digital platforms. Consequently, User-Generated Content (UGC), Service Quality, Customer Satisfaction, and Electronic Word of Mouth (e-WOM) have become critical aspects of the hospitality industry. Pecatu Guest House has experienced a decline in occupancy rates despite the overall increase in tourist visits to Bali. Furthermore, customer reviews on digital platforms reveal mixed assessments regarding service quality and the guest experience. This study aims to analyze the influence of UGC and Service Quality on e-WOM, with Customer Satisfaction serving as a mediating variable at Pecatu Guest House. A quantitative approach utilizing a survey method was employed. The study population consisted of 4,598 customers who stayed at Pecatu Guest House between 2022 and 2024. The sample was selected using probability sampling—specifically, simple random sampling. Based on 33 indicators and a ratio of six respondents per indicator, a total of 198 respondents were obtained. Data were analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS). The results indicate that UGC has a positive and significant effect on both e-WOM and Customer Satisfaction. Service Quality also exerts a positive and significant influence on e-WOM and Customer Satisfaction. Additionally, Customer Satisfaction has a positive and significant impact on e-WOM. Furthermore, Customer Satisfaction was found to mediate the effects of both UGC and Service Quality on e-WOM, demonstrating a complementary partial mediation relationship. The findings suggest that enhancing the quality of user-generated information and service quality can strengthen customer satisfaction and foster positive e-WOM. This study offers implications for Pecatu Guest House, highlighting the need to ensure alignment between digital information and actual service, improve the customer experience, and encourage customers to share positive experiences.