Product Quality, Service, and Price: Their Impact on Customer Satisfaction and Loyalty at Indomaret in Purworejo Regency
DOI:
https://doi.org/10.61132/greeninflation.v3i3.756Keywords:
Customer Loyalty, Customer Satisfaction, Price, Product Quality, Service QualityAbstract
This study aims to analyze the influence of product quality, service quality, and price on customer satisfaction and its impact on customer loyalty among Indomaret consumers in Purworejo Regency. This study uses a quantitative approach with a causal-associative design, through a five-point Likert scale questionnaire distributed to 120 respondents selected using a non-probability sampling technique, namely a combination of purposive and accidental sampling. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with the aid of SmartPLS software. The results show that product quality, service quality, and price each have a positive and significant effect on customer satisfaction, with product quality being the strongest direct determinant. Customer satisfaction was found to have a positive and strong effect on customer loyalty, and to act as a full mediator in the relationship between the three exogenous variables and loyalty. All eight proposed hypotheses were supported by the data. These findings enrich the understanding of customer satisfaction and loyalty formation in minimarket retail within non-metropolitan areas, and suggest that management prioritize customer satisfaction, supported by consistent product quality, service quality, and fair pricing, as an integrated strategy to strengthen long-term customer loyalty.
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