Abstract
The research purpose is to examine the effect of Local Product Quality on Customer Loyalty through Bonus Pack Promotion at Jambi City. Delivery questionnaires with several 125 respondents carried out the data collection. The data testing techniques used validity and reliability tests, R-square tests, and hypothesis testing—the research finds that Local Product Quality has a positive and significant effect on Customer Loyalty. Local Product Quality has a positive and significant impact on Bonus Pack Promotion. Moreover, Bonus Pack Promotion has a positive and significant impact on Customer Loyalty. However, Local Product Quality on the Customer Loyalty through Bonus Pack Promotion has no effect.
Highlights
The development of the business world in Indonesia is currently running rapidly, which creates increasingly fierce competition, including the coffee industry
The Effect of Lokalate Product Quality on Customer Loyalty Through Bonus Pack Promotion The results of this study indicate that the effect of Lokalate product quality on customer loyalty through
Based on the results of the analysis of the effect of Lokalate Product Quality on Customer Loyalty through Bonus pack Promotion In Jambi City, the conclusions are: Product quality is an important variable that can play a role in maintaining and increasing customer loyalty to a product; Product quality is a variable that will determine the success of sales promotions in the form of bonus pack; Bonus pack promotion is a sales promotion that can maintain and increase customer loyalty for Lokalate products in Jambi City; Bonus pack promotion has a significant role in customer loyalty directly, but if bonus pack promotion mediates between product quality and customer loyalty, the position has no effect
Summary
The development of the business world in Indonesia is currently running rapidly, which creates increasingly fierce competition, including the coffee industry. The superiority of Indonesian coffee that is maintained in quality makes coffee production in Indonesia from year to year continue to increase; the following data evidence this: Source: Central Bureau of Statistics (Indonesian Coffee Statistics 2019) Figure 1. Based on the coffee production data above shows that there was a fluctuating increase in coffee production in Indonesia from 2017 to 2019. Production in 2017 reached 685.80 thousand tons, in 2018, it increased to 727.9 thousand tons and reached 731.6 thousand tons in 2019. This means that the coffee business in Indonesia has a broader market share which results in coffee production increasing every year. One of them is by verifying processed coffee, such as roasted coffee, coffee mix, decaffeinated coffee, soluble coffee, beer coffee (coffee beer), iced coffee, and instant coffee, which can become a leading commodity, with the combination of raw materials and suitable processing methods, it will produce maximum physical quality and taste of coffee (Pudji raharjo, 2012)
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