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
Highlights
At this time the development of retail business in the country of Indonesia shows positive popularity, this is evident from the increasing number of minimarket markets each year
Significant path relationships is seen in the effect of customer satisfaction on customer loyalty and purchasing decisions, the effect of perceived price on brand image and price perception on customer satisfaction
This study found that price perception has a positive and significant impact on customer satisfaction
Summary
At this time the development of retail business in the country of Indonesia shows positive popularity, this is evident from the increasing number of minimarket markets each year. Strong competition in the retail industry requires that the domestic retail business be managed professionally and can serve consumers, so that the service strategy is to attract consumers by observing pricing policies, and customer satisfaction. At this time the COVID-19 epidemic (coronavirus disease) is widespread This can be attributed to consumer loyalty because consumers must see whether the retail has provided safety services so that it can lead to consumer confidence in buying it at retail. Consumer loyalty can have a significant impact on the development of a company's business, this can occur because the costs required to attract consumers are higher than the rate to retain loyal customers[2]. All companies need to maintain a competitive market position and keep customers satisfied with better service. Service quality is an important calculation for companies that focus on achieving
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