THE ROLE OF CUSTOMER SATISFACTION MEDIATES THE INFLUENCE OF SERVICE INNOVATION AND PRODUCT QUALITY ON CUSTOMER LOYALTY IN AGRICULTURAL PRODUCTS: A STUDY ON CUSTOMERS AT PT. TANIHUB BALI

Abstract

E-Commerce is the use of the internet or technology to purchase goods, sell goods, send goods, or even exchange data online. Agricultural E-Commerce around the world is growing very rapidly. Developed countries such as the United States, Japan, Canada are currently also increasingly developing agricultural E-Commerce which is quite serious in the world. Customer loyalty is certainly important for E-Commerce like Tanihub to gain profits by expanding their business as well as supporting companies to obtain further funding. The purpose of this study was to test and explain the effect of customer satisfaction in mediating service innovation and product quality on customer loyalty in Tanihub Bali. This research is a quantitative associative research conducted in Badung Regency and Denpasar City. The data used consisted of 130 samples, collected by distributing questionnaires containing questions that had been tested for validity and reliability. The analysis technique uses the Structural Equation Model (SEM) with the Smart PLS3.3.3 analysis tool. According to the findings, service innovation and product quality had a favorable and considerable impact on consumer happiness and loyalty. Furthermore, in Tanihub Bali, customer satisfaction has a favorable and strong influence on customer loyalty, as well as the ability to partially mediate the relationship between service innovation and customer loyalty and partially mediate the relationship between product quality and customer loyalty. This study is expected to provide empirical data for future research and to contribute to the advancement of marketing management science, particularly in the areas of service innovation, product quality, customer satisfaction, and customer loyalty. Management benefits can be utilized as a marketing approach to build customer loyalty to Tanihub Bali.