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THE INFLUENCE OF PRODUCT QUALITY AND PRICE ON CUSTOMER LOYALTY THROUGH CUSTOMER SATISFACTION AS AN INTERVENING VARIABLE (CASE STUDY OF J.CO DONUTS & COFFEE BANDUNG CITY)


Author: Efi Novita, Agus Maolana Hidayat*
Business Administration, Telkom University, Indonesia.
Published Date: 2024-02-05
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Keywords: Product Quality, Price, Customer Satisfaction, Customer Loyalty.
Abstract:
The advancement of the culinary industry in Indonesia poses both challenges also opportunities for entrepreneurs. Companies must engage in fierce competition to ensure their sustained presence in the market. This study holds the potential to offer strategic guidance to companies striving to uphold also expand their market share in the face of escalating competition. The aim of this research is to examine how product quality, pricing, also service quality influence customer loyalty through the prism of customer satisfaction at J.CO Donuts & Coffee in Bandung City. Employing a quantitative methodology with a causality type, the study employed a non-probability sampling method, specifically purposive sampling, with a sample size of 200 respondents. Data analysis was performed using SmartPLS 3.0. The outcome of the study indicate that product quality significantly also positively impacts customer satisfaction, along with pricing also service quality. However, product quality does not exhibit a significant positive influence on customer loyalty. Conversely, pricing demonstrates a positive also significant impact on customer loyalty, while service quality does not. Nevertheless, customer satisfaction emerges as a pivotal factor with a positive also significant effect on customer loyalty. Consequently, it can be deduced that product quality, pricing, also service quality collectively exert a positive also significant influence on customer loyalty through the mediating factor of customer satisfaction.