The influence of product price and quality on customer loyalty with customer satisfaction as an intervening variable at PT. Brother Group, Medan

Sherly Ogestine, Efendy Pakpahan and Cut Fitri Rostina
Additional contact information
Sherly Ogestine: Prima Indonesia University
Efendy Pakpahan: Prima Indonesia University
Cut Fitri Rostina: Prima Indonesia University

Journal of Economics and Business Letters, 2023, vol. 3, issue 4, 29-37

Abstract: The increasing number of competitors forces companies to be more competitive in their actions and decision-making in marketing their products or services. Customer loyalty becomes the target of every company so that the company can survive and grow in the market. Product quality and product prices certainly have an influence on customer satisfaction and customer loyalty. The purpose of this research is to determine the influence of product prices and product quality on customer satisfaction and customer loyalty, and whether there is a correlation between customer satisfaction and customer loyalty. In conducting the research, the researcher used primary data obtained from questionnaires distributed to the customers of PT. Brother Group, Medan. The number of respondents used was 92. This primary data was processed using the statistical software SPSS 22. Tests conducted included validity tests, reliability tests, classic assumption tests such as normality tests, multicollinearity tests, and heteroscedasticity tests, followed by path analysis then hypothesis tests which include partial tests, determination tests, and also Sobel tests. In this study, price was coded as (x1), product quality as (x2), customer satisfaction as (Z), and customer loyalty as (Y). The results obtained in this study show that x1 has a significant effect on Y with a t-count value of 2.615 > t-table 1.661. x2 does not have a significant effect on Y with a t-count value of 0.788 t-table 1.661, x2 has a significant effect on Z with a t-count value of 3.314 > t-table 1.661, Z has a significant effect on Y with a t-count value of 6.222 > t-table which is 1.661, x1 has an effect on Y with Z as an intervening variable with a t-count value of 3.941633 > t-table value of 1.661, x2 has an effect on Y with Z as an intervening variable with a t-count value of 2.930647902 > t-table value of 1.661.

Keywords: Price; Product Quality; Customer Loyalty; Customer Satisfaction (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journal.privietlab.org/download.php?id=506 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:prv:jeblpv:231

Ordering information: This journal article can be ordered from
https://journal.priv ... EBL/article/view/231

DOI: 10.55942/jebl.v3i4.231

Access Statistics for this article

More articles in Journal of Economics and Business Letters from Privietlab Research Center
Bibliographic data for series maintained by Mochammad Fahlevi ().