Abstract
Customer orientation is one of the solutions to overcome competition between businesses in this era. As many similar businesses have emerged, generating customer loyalty is one of the company’s strategies to compete and increase the sales of products. The objective of this study is to determine the effect of product diversity and quality of service on loyalty in terms of customer satisfaction. The quantitative approach is chosen in this study to obtain the expected results, while the path analysis test and the classical assumption test are used as the analysis model. The data source referred to in this study is the result of a questionnaire in the form of respondents’ responses. The population in this study were all customers of the “Toko Pertanian Subur”. A total of 98 respondents were taken as the sample which was determined by purposive sampling technique. After conducting the research, it is found that product diversity and service quality had a positive effect directly on customer loyalty with a significance level of less than alpha (0.050). The product diversity variable also does not have a mediating effect on loyalty when viewed from customer satisfaction. In addition, there is no mediating effect between service quality variables on loyalty in terms of customer satisfaction.
Highlights
Retailers are often seen as businesses that only sell products.retail provides many services, such as delivery services to homes or other services that can provide added value to goods and services that will be consumed by end customers (Utami, 2010)
Derived from the results of data analysis and discussion that has been described in previous chapters, it can be signified that there is influence on product diversity towards customer loyalty
The hypothesis testing results prove that product diversity has a direct effect on customer loyalty
Summary
Retailers are often seen as businesses that only sell products. Retail provides many services, such as delivery services to homes or other services that can provide added value to goods and services that will be consumed by end customers (Utami, 2010). In the process of determining consumer purchasing decisions, they will go through 5 stages, namely problem recognition, information search, evaluation of alternatives, purchase decisions, and post-purchase behavior (Kotler, 2009). Postpurchase behavior is the final result where in this stage could be seen whether the consumer is satisfied or not after making a purchase. We know the customer is an important factor in a retail business. At every store/ retail that is visited by consumers, they will surely have hopes of fulfilling their satisfaction. As well as customer expectations for services provided by the store/ retail to them
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