Business Development Through Customer Satisfaction And Loyalty As Intervening On Service Quality And Price Perception

¹Mochamad Dandyansyah, ²Bambang Raditya Purnomo

Abstract

One of the efforts to maintain a business can be done by maintaining customer satisfaction and loyalty so that the company’s economic turnover can continue to be stable. This study aims to analyze the effect of service quality and price perception on customer satisfaction through customer loyalty as an intermediate variable. The subjects of the study were consumers of Tambora Cafe in Surabaya with a sample of 100 people processed using the Partial Least Square (PLS) quantitative research method. The results of the study indicate that service quality and price perception have a positive and significant effect on customer loyalty at Tambora Cafe Surabaya, but service quality has a positive and insignificant effect on customer satisfaction, unlike price perception and customer loyalty which have a positive and significant effect on customer satisfaction. Thus, direct service quality has a positive and insignificant effect on customer satisfaction, but has a positive and significant effect indirectly through customer loyalty. In contrast, price perception has a positive and significant effect on customer satisfaction both directly and indirectly via customer loyalty