Abstract
The purpose of this study is to analyze the effect of Product Quality and Product Innovation on Consumer Loyalty of Fizzul Putra Mandiri Convection, Jombang Regency. This research is a quantitative study, while the population in this study are consumers from the Fizzul Putra Mandiri Convection Jombang regency, which are included in the population of regular (customers) in which the sample to be taken is known with certainty, resulting as many as 85 regular consumers. The data was obtained using a questionnaire, the data was processed using the Structural Equation Model (SEM) or SmartPLS 3 software. The results reveal that product quality has an insignificant positive effect on consumer loyalty, which means that the higher the product quality, the higher the consumer loyalty, but the increase in consumer loyalty caused by product quality is not significant. Therefore, increasing product quality only slightly increases consumer loyalty, decreasing product quality only slightly decreases consumer loyalty. Meanwhile, product innovation has a positive and significant effect on consumer loyalty, which means the higher the product innovation, the higher the consumer loyalty and vice versa. Besides that, product quality has a positive and significant effect on product innovation, which means that the higher the product quality, the higher the product innovation, and the lower the product quality will result the lower the product innovation as well.
Highlights
The company strives to ensure that customers are satisfied with the items it produces, as customer satisfaction is a key indicator of a company's ability to generate high-quality products
Consumer demands are a crucial and primary issue for every business, and this is especially true in the convection business, given the fact that numerous convection enterprises are competing with one another to gain consumer loyalty and satisfaction
Based on the results of the SEM (Structural Equation Modeling) analysis and the discussions that have been carried out in this study, there are the following conclusions: 1. Product quality has no significant positive effect on consumer loyalty. These results indicate that product quality has no significant effect on consumer loyalty, but it has an affordable price
Summary
The actions of businesses that provide both services and goods are directed toward the same end, namely, profit maximization. The company strives to ensure that customers are satisfied with the items it produces, as customer satisfaction is a key indicator of a company's ability to generate high-quality products. Because marketing is one of the most crucial market opportunities in consumer considerations when making purchasing decisions for a product, it is critical to understand how marketing works. Without being attentive to the needs of consumers, it is almost guaranteed that the firm will lose many possibilities to acquire customers and that the items it offers would be in vain if it does not adapt its business practices. Providing excellent services or products at competitive prices will help the convection
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