Product quality and price perception on customer loyalty mediated by customer satisfaction

Abstract

This study aims to examine the effect of product quality and price perception on customer loyalty mediated by customer satisfaction. A sample of 96 respondents processed data using the Smart PLS 3 program. The results showed that: product quality had a direct and positive significant effect on customer loyalty and customer satisfaction. While price perception has no significant effect on customer loyalty, but price perception has a direct and negative significant effect on customer satisfaction, customer satisfaction has a direct and positive significant effect on customer loyalty, customer satisfaction can mediate the relationship between product quality and customer loyalty positively. Customer satisfaction can mediate the relationship between price perception and customer loyalty negatively. This research enriches information/theory regarding the relationship between product, price perception, customer satisfaction and customer loyalty and offers a new approach to the relationship between variables.