Consumer Satisfaction and Sustainable Loyalty in Retail: Perspective from Serice Quality and Perceived Price

Abstract

This research investigates the effect of service quality and price perception on customer satisfaction and the effect of customer satisfaction on customer loyalty. This research also seeks to investigate the mediating role of customer satisfaction on the relationship between service quality and price perception with customer loyalty. This research focuses observations on 100 students in Sidoarjo who have made purchases in Indomaret- Sidoarjo. To test the research hypothesis, this research adopted the Structural Equation Model-Partial Least Square (SEM-PLS) technique using SmartPLS. This research found that customer satisfaction has a significant effect on customer loyalty and price perception also has a significant effect on customer loyalty. However, this study actually proves that service quality apparently has no significant effect on customer satisfaction