THE EFFECT OF PRODUCT QUALITY AND PRICE ON CUSTOMER SATISFACTION: THE MEDIATING ROLE OF CUSTOMER LOYALTY

Abstract

This study aims to analyze the influence of the variables under investigation—specifically product quality and price—on customer satisfaction, as well as the role of customer loyalty in moderating the impact of product quality and price on customer satisfaction at Kebab Kota Raja, Tenggarong. The analytical tool employed is SEM-PLS. The study population consisted of 105 respondents; applying purposive sampling based on the criterion of having made more than one purchase resulted in a sample of 83 respondents. The results indicate that product quality has a positive impact on customer satisfaction. Conversely, price was not found to have a positif impact on customer satisfaction. Customer loyalty did not moderate the influence of either product quality or price on customer satisfaction; however, it exerted a direct and significant influence on customer satisfaction, thereby categorizing it as a *quasi-moderator*. The overall research model yielded an R-Square value of 0.712, indicating that the variables in this study explain 71.2% of the variation in customer satisfaction.