Abstract

This study aimed to examine and explain the effect of quality perception on customer satisfaction, both directly and through the mediation of value perception that consists of three variables, namely functional value, emotional value and social value. This study also aims to test and describe the direct effect of customer satisfaction on repurchase and it’s indirect effect through the brand choice. This study used a quantitative approach with population are consumers in all branches of Anwar Group minimarket in Bengkulu. The sampling technique used is a convinience sampling with a sample size of 200 respondents were taken from all branches of Anwar Group minimarket. The analytical tool used in this study was Structural Equation Model with Amos 22 software. The results showed that the perception of service quality significantly affected consumer satisfaction. This study also showed that all consumer value which consists of functional value, emotional value, and social value mediate the effect of service quality perception on customer satisfaction. Finally, consumer satisfaction affected repurchase, while the brand choice acted as a partial mediating on the affected of customer satisfaction on repurchase intention.

Highlights

  • Changes in consumption patterns of Indonesian communities where formerly shop at traditional markets gradually abandoned by society

  • All hypotheses that consist of six hypotheses are accepted. This states that in order to improve customer satisfaction, it is crucial for the Anwar Group minimarket to highly pay attention to the services quality

  • The minimarket manager of Anwar Group should consider the benefits and the prestige value of the products offered so that customer satisfaction can be increased

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Summary

Introduction

Changes in consumption patterns of Indonesian communities where formerly shop at traditional markets gradually abandoned by society. The increase in public income is an important factor that makes consumers to switch from traditional markets to modern retail stores such as minimarkets, supermarkets and hypermarkets. Modern store is a store with self-service system, selling various kinds of goods at retail form of minimarket, supermarkets, department stores, hypermarkets or wholesalers (Indonesian Presidential Regulation No 112/2007). Of the various minimarket types in Indonesia, Alfamart and Indomaret are the biggest minimarket which are able to obtain more than 80% of annual sales turnover. Alfamart and Indomaret are stores that collected under one name to operate similar business system. The existence of Alfamart and Indomaret made traditional retailers cannot compete. The data show that in December 2016, Indomaret has operationalized 12,826 retailers throughout Indonesia, with significant growth from year to year

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