THE MEDIATION ROLE OF CUSTOMER SATISFACTION ON THE INFLUENCE OF PRICE PERCEPTION, PRODUCT QUALITY, AND SERVICE QUALITY TO CUSTOMER LOYALTY

Abstract

The objective of this study is to examine effect of price perception, product quality, customer satisfaction, and service quality on customer loyalty. The study also examines the mediating role of customer satisfaction on the effect of perceived price, product quality, and service quality on customer loyalty of bonanza sweet corn seeds product of PT. East-West Seed Indonesia that marketed in Brebes District, Central Java of Indonesia. Quantitative research method was employed to generate 106 respondents through purposive sampling, analized with multiple regression analysis and Sobel test. The respondents are dealers (customers) of PT. East-West Seed Indonesia. Dealers have duty to make sure sweet corn seed producer fulfills their need of sweet corn seeds and in other sides, serves all needs of sweet corn seeds to farmers as their partner in that area. The study finds that perceived price, product quality, service quality, and customer satisfaction have a positive effect on customer loyalty, and customer satisfaction mediates the effect of perceived price, product quality, and service quality on customer loyalty of bonanza sweet corn in Brebes. Referred to these findings, it can be implied that as an effort to continuously improve the customer loyalty, management of PT. East West Seed Indonesia should implement the appropriate policies related of perceived price, product quality, service quality and customer satisfaction of Bonanza sweet corn in Brebes. The future studies may replicate in other contexts and comparison of models that will give more understanding.