Customer Satisfaction as a Mediator Between Product Quality, Service Quality, Price, and Purchasing Decisions: Evidence from Petrol Stations in Dili, Timor-Leste
Keywords:
Product Quality, Service Quality, Price, Customer Satisfaction, Purchasing Decisions, Timor-Leste.
Abstract
This study explores the effects of product quality, service quality, and price on customer satisfaction and purchasing behaviour in Timor-Leste’s fuel industry, applying SMART PLS 4.0 for analysis. The findings demonstrate that service quality plays a decisive role in enhancing both satisfaction and purchase decisions, whereas product quality shows no direct influence. Price also does not directly shape purchasing behaviour, yet it contributes positively to satisfaction, which subsequently mediates its effect together with service quality. Overall, the results highlight the central importance of service excellence and transparent pricing in shaping consumer choices, suggesting that businesses must strengthen service delivery, maintain fair pricing practices, and foster customer trust to remain competitive. To enhance generalizability, future studies are encouraged to investigate these relationships across industries and cultural contexts, incorporating longitudinal and qualitative approaches to capture the evolving nature of consumer behaviour in the digital era.
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References
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Maia, P., Correia, A. and Lima, R. (2023) ‘Service interactions and consumer loyalty in retail industries’, Service Business, 17(1), pp. 85–108.
Marcal, E., Rua, M. and Pinto, J. (2020) ‘Determinants of consumer loyalty: The role of perceived product quality’, International Journal of Consumer Studies, 44(5), pp. 410–421.
Nilashi, M., Yadegaridehkordi, E., Samad, S. and Alotaibi, R. (2022) ‘Customer satisfaction and loyalty in retail industries: The mediating role of trust’, Journal of Retailing and Consumer Services, 66, p. 102926.
Oliveira, R., Sousa, F. and Mendes, J. (2020) ‘Service quality and customer loyalty: A mediation model’, Total Quality Management & Business Excellence, 31(15–16), pp. 1762–1778.
Park, J.W., Robertson, R. and Wu, C.L. (2019) ‘The effect of customer satisfaction on loyalty: Evidence from the airline industry’, Transport Policy, 81, pp. 21–29.
Ribeiro, R., Costa, P. and Flores, A. (2023) ‘Commoditized perceptions in fuel and energy markets’, Energy Policy, 178, p. 113583.
Rua, M., Marcal, E. and Almeida, J. (2020) ‘Product quality and purchase intention: Evidence from emerging markets’, Journal of International Consumer Marketing, 32(3), pp. 201–217.
Saleem, M., Rashid, H. and Khan, S. (2023) ‘Price fairness, satisfaction, and loyalty in emerging markets’, Asia Pacific Journal of Marketing and Logistics, 35(2), pp. 411–432.
Saldanha, E.S., Almeida, J. and Barreto, D. (2024) ‘Service quality, satisfaction, and purchasing behaviour in fuel retailing: Evidence from Timor-Leste’, Journal of Retailing and Consumer Services, 76, p. 103421.
Senali, M., Wijesinghe, S. and Perera, R. (2024) ‘Interpersonal engagement and trust in consumer decision-making’, International Journal of Retail & Distribution Management, 52(1), pp. 12–28.
Sun, Y., Fang, Y. and Lim, K.H. (2020) ‘Quality perceptions and satisfaction: Evidence from service-dominant industries’, Information & Management, 57(6), p. 103252.
Wang, Y., Liu, Q. and Guo, J. (2023) ‘Consumer knowledge, awareness, and quality perceptions in energy products’, Journal of Business Research, 158, p. 113701.
Widianita, R. (2023) ‘Service quality and satisfaction: Evidence from Southeast Asian retail industries’, Asia Pacific Journal of Marketing and Logistics, 35(1), pp. 99–118.
Yu, C., Chen, L. and Xu, H. (2022) ‘Price fairness and consumer responses in competitive retail settings’, Journal of Consumer Marketing, 39(5), pp. 471–483.
Zhu, X., Li, H. and Wang, Z. (2023) ‘Service quality and customer trust in competitive service industries’, Service Industries Journal, 43(7–8), pp. 613–633.
Adolph, R. (2022) The factor influence consumer preferences in choosing a petrol station in Thailand.
Ali, F., Hussain, K. and Omar, R. (2021) ‘The impact of service quality on customer satisfaction in the hospitality industry’, Journal of Hospitality and Tourism Management, 48, pp. 287–296.
Anuar, K. (2021) The influence of product quality and service quality on brand leadership: An empirical study of petrol station outlet users (June issue).
ANPM (n.d.) Mineral - DL NO.5 - 2011 Licensa Ambiental Portugues.pdf.crdownload.
Anupama, G., Malhotra, M. and Jain, R. (2018) ‘Impact of price fairness on customer satisfaction and loyalty: Evidence from retail sector’, International Journal of Retail & Distribution Management, 46(8), pp. 730–748.
Arantes, A., Alhais, A.F. and Ferreira, L.M.D.F. (2022) ‘Application of a purchasing portfolio model to define medicine purchasing strategies: An empirical study’, Socio-Economic Planning Sciences, 84, p. 101318.
Arslan, M., Phil, M. and Zaman, R. (2014) ‘Impact of brand image and service quality on consumer purchase intention: A study of retail store in Pakistan’, Research on Humanities and Social Sciences, 4(22), pp. 98–105.
Asawawibul, S., Na-nan, K., Pinkajay, K. and Jaturat, N. (2025) ‘The influence of cost on customer satisfaction in e-commerce logistics: Mediating roles of service quality, technology usage, transportation time, and production condition’, Journal of Open Innovation: Technology, Market, and Complexity, 11(1), p. 100482.
Benaglia, S., Arruda, J.M. and Rodrigues, F. (2023) ‘Consumer education and trust-building in low-differentiation markets: Evidence from emerging economies’, Journal of Retailing and Consumer Services, 71, p. 103246.
Benaglia, M.F., Ho, M.H.C. and Tsai, T. (2023) ‘Drivers of customer satisfaction with restaurants during COVID-19: A survey of young adults in Taiwan and Indonesia’, Asia Pacific Management Review.
BenSaïda, A., Uddin, G.S. and Yahya, M. (2024) ‘Spillovers between oil and the GCC stock markets: Fresh evidence from a regime-switching approach’, Energy Strategy Reviews, 56, p. 101591.
Blijlevens, J., Chuah, S.H., Neelim, A., Prasch, J.E. and Skali, A. (2024) ‘Not all about the money: Service quality information improves consumer decision-making’, Journal of Economic Behavior and Organization, 228.
Boadi, P.O., Li, G., Sai, A.A. and Antwi, P. (2017) ‘A critique of the impact of consumer dissatisfaction’, International Journal of Consumer Studies, 37, pp. 559–567.
Brunello, A., Fabris, G., Gasparetto, A., Montanari, A., Saccomanno, N. and Scalera, L. (2025) ‘A survey on recent trends in robotics and artificial intelligence in the furniture industry’, Robotics and Computer-Integrated Manufacturing, 93, p. 102920.
Byhaqi, M.M.R., Karyatun, S. and Digdowiseiso, K. (2023) ‘The influence of brand image, price, and promotion on the purchasing decision of White Koffie Civet Coffee in the South Jakarta area’, Jurnal Syntax Admiration, 4(5), pp. 733–745.
Cakici, A.C., Akgunduz, Y. and Yildirim, O. (2019) ‘The impact of perceived price justice and satisfaction on loyalty: The mediating effect of revisit intention’, Tourism Review, 74(3), pp. 443–462.
Camilleri, D. and O’Callaghan, M. (1998) ‘Comparing public and private hospital care service quality’, International Journal of Health Care Quality Assurance, 11(4), pp. 127–133.
Carvalho, H., Santos, R. and Costa, J. (2020) ‘Service quality and customer satisfaction: A structural model in retail fuel stations’, Journal of Retailing and Consumer Services, 54, p. 102031.
Chen, Y., Wang, J. and Li, F. (2022) ‘Price fairness and consumer trust in competitive markets’, Journal of Consumer Behaviour, 21(3), pp. 513–526.
Chiaraluce, L., Ferrari, M. and Di Pietro, L. (2024) ‘The role of consumer awareness in quality perception of standardized products’, International Journal of Consumer Studies, 48(2), pp. 233–248.
Crisafulli, B., Quamina, L.T. and Singh, J. (2022) ‘Competence is power: How digital influencers impact buying decisions in B2B markets’, Industrial Marketing Management, 104, pp. 384–399.
Dangelico, R.M., Nonino, F. and Pompei, A. (2022) ‘Fair pricing strategies and consumer satisfaction: Evidence from green products’, Journal of Cleaner Production, 350, p. 131488.
Deming, W.E. (1986) Out of the crisis. MIT Press.
Dentler, A. and Rossi, E. (2024) ‘Residents’ willingness to pay to avoid crime’, Journal of Housing Economics, 66, p. 102024.
Dudziak, A., Stoma, M. and Zając, G. (2022) ‘Application of the CSI method to test consumer satisfaction: A case study of petrol stations’, Scientific Journal of Silesian University of Technology. Series Transport, 116, pp. 113–124.
Evans, J.R. and Lindsay, W.M. (2020) Managing for quality and performance excellence (11th ed.). Cengage Learning.
Firozare, S., Habib, M. and Azizi, S. (2024) ‘Consumer perceptions of quality homogeneity in commodity markets’, Asia Pacific Journal of Marketing and Logistics, 36(4), pp. 1123–1140.
Flores, A., Costa, P. and Ribeiro, R. (2020) ‘Customer satisfaction in utility markets: Service vs. product quality’, Utilities Policy, 64, p. 101048.
Garvin, D.A. (1987) ‘Competing on the eight dimensions of quality’, Harvard Business Review, 65(6), pp. 101–109.
Hahnel, U.J.J. and Fell, D. (2022) ‘Consumer priorities in low-differentiation product categories’, Journal of Economic Psychology, 89, p. 102479.
Han, H. and Hyun, S.S. (2022) ‘Impact of product quality on customer satisfaction and willingness to pay premium prices in the electronics industry’, Technological Forecasting and Social Change, 174, p. 121202.
Hwang, J. and Kim, S. (2023) ‘The effects of product quality on brand trust and customer loyalty in the automobile industry’, Journal of Brand Management, 30(2), pp. 150–166.
Juran, J.M. (1989) Juran on leadership for quality: An executive handbook. Free Press.
Kotler, P. and Keller, K.L. (2022) Marketing management (16th ed.). Pearson.
Kunszab, Z. and Vongxay, S. (2024) ‘Consumer behaviour in commodity-based industries: Price vs. quality perceptions’, Journal of Retailing and Consumer Services, 74, p. 103397.
Maia, P., Correia, A. and Lima, R. (2023) ‘Service interactions and consumer loyalty in retail industries’, Service Business, 17(1), pp. 85–108.
Marcal, E., Rua, M. and Pinto, J. (2020) ‘Determinants of consumer loyalty: The role of perceived product quality’, International Journal of Consumer Studies, 44(5), pp. 410–421.
Nilashi, M., Yadegaridehkordi, E., Samad, S. and Alotaibi, R. (2022) ‘Customer satisfaction and loyalty in retail industries: The mediating role of trust’, Journal of Retailing and Consumer Services, 66, p. 102926.
Oliveira, R., Sousa, F. and Mendes, J. (2020) ‘Service quality and customer loyalty: A mediation model’, Total Quality Management & Business Excellence, 31(15–16), pp. 1762–1778.
Park, J.W., Robertson, R. and Wu, C.L. (2019) ‘The effect of customer satisfaction on loyalty: Evidence from the airline industry’, Transport Policy, 81, pp. 21–29.
Ribeiro, R., Costa, P. and Flores, A. (2023) ‘Commoditized perceptions in fuel and energy markets’, Energy Policy, 178, p. 113583.
Rua, M., Marcal, E. and Almeida, J. (2020) ‘Product quality and purchase intention: Evidence from emerging markets’, Journal of International Consumer Marketing, 32(3), pp. 201–217.
Saleem, M., Rashid, H. and Khan, S. (2023) ‘Price fairness, satisfaction, and loyalty in emerging markets’, Asia Pacific Journal of Marketing and Logistics, 35(2), pp. 411–432.
Saldanha, E.S., Almeida, J. and Barreto, D. (2024) ‘Service quality, satisfaction, and purchasing behaviour in fuel retailing: Evidence from Timor-Leste’, Journal of Retailing and Consumer Services, 76, p. 103421.
Senali, M., Wijesinghe, S. and Perera, R. (2024) ‘Interpersonal engagement and trust in consumer decision-making’, International Journal of Retail & Distribution Management, 52(1), pp. 12–28.
Sun, Y., Fang, Y. and Lim, K.H. (2020) ‘Quality perceptions and satisfaction: Evidence from service-dominant industries’, Information & Management, 57(6), p. 103252.
Wang, Y., Liu, Q. and Guo, J. (2023) ‘Consumer knowledge, awareness, and quality perceptions in energy products’, Journal of Business Research, 158, p. 113701.
Widianita, R. (2023) ‘Service quality and satisfaction: Evidence from Southeast Asian retail industries’, Asia Pacific Journal of Marketing and Logistics, 35(1), pp. 99–118.
Yu, C., Chen, L. and Xu, H. (2022) ‘Price fairness and consumer responses in competitive retail settings’, Journal of Consumer Marketing, 39(5), pp. 471–483.
Zhu, X., Li, H. and Wang, Z. (2023) ‘Service quality and customer trust in competitive service industries’, Service Industries Journal, 43(7–8), pp. 613–633.
Published
2025-10-03
How to Cite
Moreira, A., de Saldanha, E. and M.B. Barreto, D. (2025) “Customer Satisfaction as a Mediator Between Product Quality, Service Quality, Price, and Purchasing Decisions: Evidence from Petrol Stations in Dili, Timor-Leste”, Timor Leste Journal of Business and Management, 7, pp. 73-89. doi: 10.51703/bm.v7i0.195.
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Articles
Copyright (c) 2025 Timor Leste Journal of Business and Management
This work is licensed under a Creative Commons Attribution 4.0 International License.
