The objective of this study was to examine: (1) the mediation role of Customer Satisfaction
in the relationship between Service Quality with word of mouth communication. (2) the
moderation role of purchasing value in the relationship between Service Quality, Customer
Satisfaction and word-of-mouth communication. Research Methodology used in this research is:
(1) literature studies, (2) using questionnaire to customer of Margo Murah Baru to collect
primary data. Analysis tools used in this research: (1) validity analysis which shows accuracy
and accurately of an instrument in executes measurement, (2) reliability analysis which defined
by repeatedly measuring the construct of variable of interest, (3) mediates regression analysis, to
shows a causal sequence among three variables X to M to Y, (4) moderation regression analysis
to shows if the effect of X on Y variable depends on the level of a third variable or not.
There are some conclusions in this research: (1) Causal relationship of Service Quality and
Word of mouth communication is fully mediated by Customer Satisfaction of Margo Murah
Baru. (2) Purchasing Value does not support the causal relationship between service quality to
word of mouth, service quality to customer satisfaction either between customer satisfaction to
word of mouth. (3) Men are giving judgment on variables and its dimensions observed better
than women. (4) Customer who bought furniture more than 4 million rupiahs feel Margo Murah
Baru is more reliable for them, compare to those who bought furniture less than 1 million
rupiahs in the store. (5) Customer who lived more than 5 kilometers from store feel Margo
Murah Baru employee’s empathy is better than customer who lived less than 5 kilometers from
store.