The Effect of Service Quality and Price on Repeat Purchases Through Purchase Decisions as Intervening Variables in Facility Management Company PT OCS Global Services

Abstract

In the highly competitive facility management industry, understanding the factors that drive customer loyalty is essential for sustaining business growth. Service quality and pricing strategies are often cited as critical determinants of customer retention, yet the mechanism through which these factors influence repeat purchases remains underexplored, particularly in B2B service contexts. This study aims to examine the effect of Service Quality and price on repeat purchase, with purchase decision as an intervening variable, in a Facility Management service company. A quantitative approach with Structural Equation Modeling (SEM) was applied, and data were collected through questionnaires distributed to customers of PT OCS Global Services. The findings reveal that Service Quality and price have a significant positive effect on purchase decisions, while purchase decisions significantly influence repeat purchases. Moreover, purchase decisions mediate the relationship between Service Quality and price with repeat purchase. These results emphasize that improving Service Quality and applying competitive pricing strategies are essential to fostering customer loyalty in the Facility Management service industry.