Analysis of Effects of Product Quality, Promotion and Received Value Towards Customer Loyalty through Customer Satisfaction Grab Food

Dian Erdiansyah,Erna S Imaningsih

doi:10.32996/jbms.2021.3.2.1

Dian Erdiansyah, Erna S Imaningsih

Open Access

https://doi.org/10.32996/jbms.2021.3.2.1

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Abstract

The purpose of this study was to determine the effect of product quality, promotion, and perceived value on customer loyalty with customer satisfaction as an intervening variable. The population of this research is Grab Food customers. The population in this study were Grab Food customers. The sample was taken by purposive sampling method with the criteria being Grab Food customers or had used it 3 times, and the samples analyzed were 125 respondents. The research method used is causal research to prove the theory with quantitative analysis approach with data analysis method using Structural Equation Model - Partial Least Square. The model test results show that the effect on customer satisfaction is strong and on customer loyalty is moderate, the predictive capability of the theory is large, and the relationship between the structural model and the measurement model is fit. The results of hypothesis testing conclude that product quality, promotion and perceived value variables affect customer satisfaction. The product quality and promotions do not affect customer loyalty either directly or through customer satisfaction. Perceived value directly affects customer loyalty but does not affect customer loyalty through customer satisfaction. And customer satisfaction does not directly affect customer loyalty.

Highlights

IntroductionWith the advancement in the field of information technology, it provides benefits to humans to facilitate their daily activities
1 Technological developments to date, especially in the field of information and communication technology, have changed human behaviour, which has not been imagined in the human mind at that time
The place was chosen by 80% of the respondents. 39% of respondents said that they save time or effort in queuing and waiting, 37% of respondents said that using online applications can save time or energy in travelling to buy food, 33% of respondents said that online applications provide attractive promotions or offers (Nielson, 2019)

Summary

Introduction

With the advancement in the field of information technology, it provides benefits to humans to facilitate their daily activities. The impact of advances in information and communication technology, especially the Internet since 1992, has impacted the business world. Companies that can take advantage of Internet advancements effectively and efficiently can compete competitively in the market they are facing, gradually live for customers with competitors. Companies use the internet to support their business activities or obtain information for strategic decisions. Companies can plan their business, monitor competitors, measure market conditions, and communicate with customers or potential customers to market their products/services and get maximum profit with the Internet. Ojek Online is a startup business that utilizes advances in information and communication technology both for online transportation businesses or food delivery. The competition between the two since 2019 can be seen from the surveys conducted to compare the performance of the two in the competition (Gojek and Grab, 2019)

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