Service Quality, Perceived Value and Satisfaction in Shaping Customer Loyalty in Rural LPG Consumption: A Structural Mediation Analysis

Clean energy is fundamental for rural development. The Pradhan Mantri Ujjwala Yojana (PMUY) substantially expanded access to Liquefied Petroleum Gas (LPG) among low-income households; however, sustaining its regular use remains a challenge. This study investigates the intricate relationships between Perceived Value and Service Quality on the one hand and Customer Loyalty on the other, with the mediating role of customer satisfaction in these relationships using Partial Least Squares Structural Equation Modelling (PLS-SEM). Hitherto, little empirical research has been done on the rural energy market and the influence of these factors on sustainable LPG use in India, which this study seeks to address. This study uses data from 426 rural households in the States of Uttar Pradesh and Uttarakhand in India, gathered through a questionnaire survey. It brings in novel insights to the discourse of the provision of rural energy by providing in-depth explanation of consumer loyalty in the Bottom of the Pyramid (BOP) sector, highlighting that policy for energy access should place customers’ perspectives, needs and satisfaction at the centre of decisionmaking. The study extends the Value-Based Adoption Model (VAM) and Theory of Planned Behaviour (TPB) by positioning customer satisfaction as a central mediating mechanism through which consumers overall evaluation of perceived benefits and reinforcement of positive attitudes and intentions leading to loyalty.