The Effect of Price and Perceived Quality Dimensions on Customer Satisfaction

Abstract

The goal of this research is to analyze the effect of service quality dimensions and price toward customer satisfaction on western fast-food restaurant in Jabodetabek. Total of 134 questionnaire responses from three most well-known brand western fast food restaurants in Jabodetabek were collected and used as the main data for this research. The method used in this research was Likert seven-point rating scales. The findings of this research indicate reliability, assurance, empathy from SERVQUAL factors have significant positive effect on customer satisfaction. However, tangibles, responsiveness, and price does not affect customer satisfaction in western fast-food restaurant in Indonesia. It seems assurance and empathy play the most important role on western fast-food restaurants in Jabodetabek region in Indonesia. The result suggests to prioritize some elements of SERVQUAL and price strategy that possibly western fast-food restaurants utilize later in future especially on urban and agglomeration area in Indonesia such as Jabodetabek.