The Mediation Effect of Customer Satisfaction on the Relationship between Product Quality, Perceived Price Justice and Customer Loyalty
Keywords:
Product Quality, Fair Perception, Customer Satisfaction, and Customer Loyalty
Abstract
This study aimed to examine the effect of mediation, satisfaction, and the relationship between product quality, perceived fair prices, and customer loyalty. With a sample size of 400, the study was conducted at Telkomcel in Dili, Timor-Leste. The data collection of this study used a questionnaire adopted by previous studies, and data analysis used SMART-PLS 3.0. The findings of this study indicated that product quality has no significant effect on the loyalty of the customer. Still, the perception of a fair price that is satisfied by the customer significantly affects the loyalty of the customer. The customer is satisfied with the significant mediating effect on the relationship between product quality and fair perception of the customer's loyalty. This research has implications for product quality, perception of reasonable prices, and customer loyalty.
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References
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Čater, B., & Čater, T. (2009). Relationship-Value-Based Antecedents of Customer Satisfaction and Loyalty in Manufacturing. Journal of Business and Industrial Marketing, 24(8), 585–597.
Chandra, T., Hafni, L., Chandra, S., Purwati, A. A., & Chandra, J. (2019). The influence of service quality, university image on student satisfaction and student loyalty. Benchmarking:An International Journal, 8.
Cyr, D., Hassanein, K., Head, M. and Ivanov, A. (2006), “The role of social presence in establishing loyalty in e-service environments”, Interacting with Computers. International Journal of Marketing Studies,07 (2).
Delcourt, C., Gremler, D. D., Van Riel, A. C. r., & Van Birgelen, M. (2013) Effects of perceived employee emotional competence on customer satisfaction and loyalty: The mediating role of rapport. Journal of Service Management, 24(1), 5–24.
Dominici, G., & Guzzo, R. (2010). Customer Satisfaction in the Hotel Industry: A Case Study from Sicily. International Journal of Marketing Studies, 2(2), 2–12.
Fraering, M., & Minor, M. S. (2013). Beyond loyalty: Customer satisfaction, loyalty, and fortitude. Journal of Services Marketing, 27(4), 11.
Fuentes-Blasco, M., Moliner-Velázquez, B., & Gil-Saura, I.(2017).Analyzing heterogeneity on the value, satisfaction, word-of-mouth relationship in retailing. Management Decision, 55(7), 1558–1577
Garvin, D. A. (2005). Product quality: An important strategic weapon. Business Horizons, 27(3), 40–43.
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Hair, Joseph F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2014). Partial Least Squares Structural Equation Modeling (Pls-Sem). London: SAGE Publication LTD.
Hassan, M, Hassan, S., Nawaz, M.S. & Ibrahim (2013). Measuring Customer Satisfaction and Loyalty Through Service Fairness, Service Quality and Price Fairness Perception: an Empirical Study of Pakistan Mobile Telecommunication Sector. Pakistan: Sci.Int.(Lahore),25(4),971-980.
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135.
Hutapea, R.A. (2016). Pengaruh Kualitas Produk Dan Harga Terhadap Kepuasan kartu prabayar Telkomcel Pada Mahasiswa Fakultas Ekonomi Universitas Asahan, Tesis universitas terbuka: Jakarta.
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Išoraitė, M. (2016). Customer Loyalty Theoretical Aspects. Ecoforum, Vol 5(2).
Japarianto, E., Laksmono, P., & Ainy, K. (2007). Pelanggan Hotel Majapahit Surabaya dengan Pemasaran Relasional sebagai variabel Intervening. 9.
Jung, H. S., & Yoon, H. H. (2013). Do employees’ satisfied customers respond with an satisfactory relationship? The effects of employees’ satisfaction on customers’ satisfaction and loyalty in a family restaurant. International Journal of Hospitality Management, Vol. 34, pp. 1–8.
Kang, J., Alejandro, T. B., & Groza, M. D. (2015). Customer-company identification and the effectiveness of loyalty programs. Journal of Business Research, Vol. 68, pp. 464–471.
Kasmir. (2017b). Customer Service Excelent Teori dan Praktik. Indonesia Khairawati. (2020). Research in Business & Social Science Effect of customer the loyalty program on customer satisfaction and its impact on customer loyalty,9 (1), 15–23.
Korda, A. P., & Snoj, B. (2007). Direct and indirect effects of perceived price on perceived mobile. ANN. TELECOMMUN, 62 (9- 10), 967-989.
Kotler, & Armstrong, G. (2012). Principles of Marketing 14th Edition New Jersey: Pearson Prentice Inc.
Kotler, P. Keller, D., and Kevin, L. (2009). Manajemen Pemasaran, Edisi Ketigabelas alih bahasa : Benyamin Molan. Indeks: Jakarta.
Kotler, P. dan Armstong, G. (2007). Dasar-Dasar Pemasaran. Indeks: Jakarta.
Kotler, P., & Keller, K. (2013). Marketing management 14th edition. Prentice Hall.
Liu, Y. and Jang, S. (2009), “Perceptions of Chinese restaurants in the US: what effects customer
satisfaction and behavioral intentions?”, International Journal of Hospitality Management, Vol. 28 No. 3, pp. 338-348, doi: 10.1016/j.ijhm.2008.10.008
Lupiyoadi R. 2013. Manajemen Pemasaran Jasa (Praktik dan Teori). Jakarta: PT. Salemba Empat
Mahmud, A., Jusoff, K., & Hadijah, S. T. (2013). The effect of service quality and price on Satisfaction and Loyalty of Customers of the commercial flight service industry. World Applied Sciences Journal, 23(3), 354–359.
Martin, W.C., Ponder, N. and Lueg, J.E. (2009), “Price fairness perceptions and customer loyalty in a retail context”, Journal of Business Research, Vol. 62 No. 6, pp. 588- 93, doi: 10.1016/j.jbusres.2008.05.017.
Maulana, A. S. (2016). Pengaruh Kualitas Pelayanan Dan Harga Terhadap Kepuasan pelangan Pt. Toi. Jurnal Ekonomi Volume 7 Nomor 2.
Mazumdar, T. and Papatla, P. (1995), “Loyalty differences in the use of internal and external reference prices”, Marketing Letters, Vol. 6 No. 2, pp. 111-122
Meesala, A., & Paul, J. (2018). Service quality, consumer satisfaction and loyalty in hospitals: Thinking for the future. Journal of Retailing and Consumer Services, 40(November 2016), 261–269.
Meredith, L. and Maki, D. (2001), “Product cannibalization and the role of prices”, Applied Economics, Vol. 33 No. 14, pp. 1785-1793, doi: 10.1080/00036840010015769
Mosahab, R., Mahamad, O. and Ramayah, T. (2010), “Service quality, customer satisfaction and loyalty: a test of mediation”, International Business Research, Vol. 3 No. 4, pp. 72-80.
Oliver, R. and DeSarbo, W. (1988), “Response determinants in satisfaction judgements”, Journal of Consumer Research, Vol. 14 No. 4, pp. 495 07, doi: 10.1086/209131.
Oliver, R.L. (1999), “Whence consumer loyalty?”, Journal of Marketing, Vol. 63 No. S4, pp. 33-44, Fundamental Issues and Directions for Marketing, doi: 10.2307/1252099.
Özkan, P., Süer, S., Keser, İ. K., & Kocakoç, İ. D. (2019). The effect of service quality and customer satisfaction on customer loyalty: The mediation of perceived value of services, corporate image, and corporate reputation. International Journal of Bank Marketing.
Petrick, J.F. (1999), “An examination of the relationship between golf travelers satisfaction,
perceived value and loyalty and their intention to revisit”, Unpublish PhD thesis, Clemson University,
Clemson S.C.
Poin, M., & Quilken, L. M. (2005). An Empirical Investigation of customer satisfaction and Loyalty a cross two divergent Bank segments.
Saldanha, E. D. S., Rahyuda, I. K., Yasa, N. N. K., & Sukaatmadja, I. P. G. (2019). Persaingan Industri, Strategi Bisnis, dan Kinerja Industri. Denpasar: Udayana University Press.
Sari, Dessica D., & Utama, Agung. 2016. Analisis Pengaruh Kualitas Produk, Kualitas pelayanan Dan Harga Terhadap Kepuasan Konsumen
Sugiyono. 2014. Metode Penelitian Manajemen. Cetakan Kedua. Penerbit CV Alfabeta. Bandung.
Stavkova, J., Stejkal, L., & Toufarova, Z. (2008). Factors influencing consumer behaviour. (6), 9.
Suriyani. 2017. Pengaruh Bauran Pemasaran Terhadap Kepuasan Konsumen Pengguna Layanan 4G Telkomcel Di Samarinda Seberang. Ejournal Adiminstrasi Bisnis Vol.5 No.2. Universitas Mulawarman : Samarinda.
Van Es, R. A. J. (2012). The Relationship between Service Quality and Customer Loyalty, and its Influence on Business Model Design. Thesis Universiteit Twente, (September), 1–85.
Viglia, G., Mauri, A. and Carracano, M. (2016), “The exploration of hotel reference prices under dynamic pricing scenarios and different forms of competition”, International Journal of Hospitality Management, Vol. 52, pp. 46-55.
Wantara, P., & Tambrin, M. M. (2019). The Effect of Price and Product Quality Towards Customer Satisfaction and Customer Loyalty on Madura Batik. International Tourism and Hospitality Journal (ITHJ), 1–9.
Wu, C. C., Liao, S. H., Chen, Y. J., & Hsu, W. L. (2011). Service quality, brand image and price fairness impact customer satisfaction and loyalty. IEEE International Conference on Industrial Engineering and Engineering
Management, 1160–1164.
Zeithaml, V. A. (1988). Consumer Perceptions of Price, Quality, and Value: A Means-End Model and Synthesis of Evidence. Journal of Marketing, 52 (3), 2-22.
Amissah, E. F. (2013). Tourist Satisfaction with Hotel Services in Cape Coast and Elmina, Ghana. American Journal of Tourism Management, 2(1A), 26–33.
Angraeni, D.P., Kumadji, S., Sunarty (2016). Pengaruh Kualitas Produk terhadap Kepuasan dan Loyalitas Pelanggan. jurnal AB Vol. 37 No. 1
Aryani, Dwi. 2010. Pengaruh Kualitas layanan terhadap Kepuasan Pelanggan dalam Membentuk Loyalitas Pelangga. Jurnal Ilmu Administrasi dan Organisasi. (Vol.17 No.2 2010)
Asadi, A., Pool, J. K & Jalilvand. M. R (2014) The effect of perceived price fairness through satisfaction and loyalty on international tourists’ price acceptance of Islamic-Iranian art products. Education, Business and Society: Contemporary Middle Eastern Issues, 7(4), 201–215.
Asnawi, N., Sukoco, B. M., & Fanani, M. A. (2019). The role of service quality within Indonesian customers satisfaction and loyalty and its impact on Islamic banks. Journal of Islamic Marketing.
Assauri, S. (2007). Manajemen Pemasaran. Jakarta: PT. Raja Grafindo Persada
Assauri, S. (2008). Manajemen Pemasaran, Dasar Konsep Dan Strategi. Jakarta: Raja Grafindo.
Bachamid Abdurrahman Fauzi Et Al. 2016. Analisis Kualitas Produk, Promosi, Dan Harga terhadap Keputusan Pembelian Kartu Telkomcel 4G LTE Di Manado (Studi Kasus:Fakultas Ekonomi dan Bisnis Di Universitas Sam Ratulangi). Jurnal EMBA Vol.4 No.4. Universitas Sam Ratulangi: Manado
Bassey, F.O. (2014), “The effect of perceived price fairness on customer satisfaction and loyalty”, Master of Science in Tourism Management, Eastern Mediterranean University, azimagusa, North Cyprus.
Bei, L.T. and Chiao, Y.C. (2001), “An integrated model for the effects of perceived product, perceived service quality, and perceived price fairness on consumer satisfaction and loyalty”, Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior, Vol. 14, pp. 125-140
Brucks, M., Zeithaml, V. A., & Naylor, G. (2000). Price and Brand Name as Indicators of quality dimension for Consumer Durables. Journal of Academy marketing science, 28 (3).
Čater, B., & Čater, T. (2009). Relationship-Value-Based Antecedents of Customer Satisfaction and Loyalty in Manufacturing. Journal of Business and Industrial Marketing, 24(8), 585–597.
Chandra, T., Hafni, L., Chandra, S., Purwati, A. A., & Chandra, J. (2019). The influence of service quality, university image on student satisfaction and student loyalty. Benchmarking:An International Journal, 8.
Cyr, D., Hassanein, K., Head, M. and Ivanov, A. (2006), “The role of social presence in establishing loyalty in e-service environments”, Interacting with Computers. International Journal of Marketing Studies,07 (2).
Delcourt, C., Gremler, D. D., Van Riel, A. C. r., & Van Birgelen, M. (2013) Effects of perceived employee emotional competence on customer satisfaction and loyalty: The mediating role of rapport. Journal of Service Management, 24(1), 5–24.
Dominici, G., & Guzzo, R. (2010). Customer Satisfaction in the Hotel Industry: A Case Study from Sicily. International Journal of Marketing Studies, 2(2), 2–12.
Fraering, M., & Minor, M. S. (2013). Beyond loyalty: Customer satisfaction, loyalty, and fortitude. Journal of Services Marketing, 27(4), 11.
Fuentes-Blasco, M., Moliner-Velázquez, B., & Gil-Saura, I.(2017).Analyzing heterogeneity on the value, satisfaction, word-of-mouth relationship in retailing. Management Decision, 55(7), 1558–1577
Garvin, D. A. (2005). Product quality: An important strategic weapon. Business Horizons, 27(3), 40–43.
Ha, J. and Jang, S. (2010), “Perceived values, satisfaction and behavioral intentions: the role of familiarity in Korean restaurants”, International Journal of Hospitality Management, Vol. 29 No. 1, pp. 2-13, doi:
10.1016/j.ijhm.2009.03.009.
Hair, J.F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM). European Business Review, 26(2), 106–121.
Hair, Joseph F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2014). Partial Least Squares Structural Equation Modeling (Pls-Sem). London: SAGE Publication LTD.
Hassan, M, Hassan, S., Nawaz, M.S. & Ibrahim (2013). Measuring Customer Satisfaction and Loyalty Through Service Fairness, Service Quality and Price Fairness Perception: an Empirical Study of Pakistan Mobile Telecommunication Sector. Pakistan: Sci.Int.(Lahore),25(4),971-980.
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135.
Hutapea, R.A. (2016). Pengaruh Kualitas Produk Dan Harga Terhadap Kepuasan kartu prabayar Telkomcel Pada Mahasiswa Fakultas Ekonomi Universitas Asahan, Tesis universitas terbuka: Jakarta.
Ishak, F., & Ghani, N. H. A. (2010). A Review of the Literature on Brand Loyalty and Customer Loyalty. Conference on Business Management Research 2013, 13. Retrieved from http://repo.uum.edu.my/16316/
Išoraitė, M. (2016). Customer Loyalty Theoretical Aspects. Ecoforum, Vol 5(2).
Japarianto, E., Laksmono, P., & Ainy, K. (2007). Pelanggan Hotel Majapahit Surabaya dengan Pemasaran Relasional sebagai variabel Intervening. 9.
Jung, H. S., & Yoon, H. H. (2013). Do employees’ satisfied customers respond with an satisfactory relationship? The effects of employees’ satisfaction on customers’ satisfaction and loyalty in a family restaurant. International Journal of Hospitality Management, Vol. 34, pp. 1–8.
Kang, J., Alejandro, T. B., & Groza, M. D. (2015). Customer-company identification and the effectiveness of loyalty programs. Journal of Business Research, Vol. 68, pp. 464–471.
Kasmir. (2017b). Customer Service Excelent Teori dan Praktik. Indonesia Khairawati. (2020). Research in Business & Social Science Effect of customer the loyalty program on customer satisfaction and its impact on customer loyalty,9 (1), 15–23.
Korda, A. P., & Snoj, B. (2007). Direct and indirect effects of perceived price on perceived mobile. ANN. TELECOMMUN, 62 (9- 10), 967-989.
Kotler, & Armstrong, G. (2012). Principles of Marketing 14th Edition New Jersey: Pearson Prentice Inc.
Kotler, P. Keller, D., and Kevin, L. (2009). Manajemen Pemasaran, Edisi Ketigabelas alih bahasa : Benyamin Molan. Indeks: Jakarta.
Kotler, P. dan Armstong, G. (2007). Dasar-Dasar Pemasaran. Indeks: Jakarta.
Kotler, P., & Keller, K. (2013). Marketing management 14th edition. Prentice Hall.
Liu, Y. and Jang, S. (2009), “Perceptions of Chinese restaurants in the US: what effects customer
satisfaction and behavioral intentions?”, International Journal of Hospitality Management, Vol. 28 No. 3, pp. 338-348, doi: 10.1016/j.ijhm.2008.10.008
Lupiyoadi R. 2013. Manajemen Pemasaran Jasa (Praktik dan Teori). Jakarta: PT. Salemba Empat
Mahmud, A., Jusoff, K., & Hadijah, S. T. (2013). The effect of service quality and price on Satisfaction and Loyalty of Customers of the commercial flight service industry. World Applied Sciences Journal, 23(3), 354–359.
Martin, W.C., Ponder, N. and Lueg, J.E. (2009), “Price fairness perceptions and customer loyalty in a retail context”, Journal of Business Research, Vol. 62 No. 6, pp. 588- 93, doi: 10.1016/j.jbusres.2008.05.017.
Maulana, A. S. (2016). Pengaruh Kualitas Pelayanan Dan Harga Terhadap Kepuasan pelangan Pt. Toi. Jurnal Ekonomi Volume 7 Nomor 2.
Mazumdar, T. and Papatla, P. (1995), “Loyalty differences in the use of internal and external reference prices”, Marketing Letters, Vol. 6 No. 2, pp. 111-122
Meesala, A., & Paul, J. (2018). Service quality, consumer satisfaction and loyalty in hospitals: Thinking for the future. Journal of Retailing and Consumer Services, 40(November 2016), 261–269.
Meredith, L. and Maki, D. (2001), “Product cannibalization and the role of prices”, Applied Economics, Vol. 33 No. 14, pp. 1785-1793, doi: 10.1080/00036840010015769
Mosahab, R., Mahamad, O. and Ramayah, T. (2010), “Service quality, customer satisfaction and loyalty: a test of mediation”, International Business Research, Vol. 3 No. 4, pp. 72-80.
Oliver, R. and DeSarbo, W. (1988), “Response determinants in satisfaction judgements”, Journal of Consumer Research, Vol. 14 No. 4, pp. 495 07, doi: 10.1086/209131.
Oliver, R.L. (1999), “Whence consumer loyalty?”, Journal of Marketing, Vol. 63 No. S4, pp. 33-44, Fundamental Issues and Directions for Marketing, doi: 10.2307/1252099.
Özkan, P., Süer, S., Keser, İ. K., & Kocakoç, İ. D. (2019). The effect of service quality and customer satisfaction on customer loyalty: The mediation of perceived value of services, corporate image, and corporate reputation. International Journal of Bank Marketing.
Petrick, J.F. (1999), “An examination of the relationship between golf travelers satisfaction,
perceived value and loyalty and their intention to revisit”, Unpublish PhD thesis, Clemson University,
Clemson S.C.
Poin, M., & Quilken, L. M. (2005). An Empirical Investigation of customer satisfaction and Loyalty a cross two divergent Bank segments.
Saldanha, E. D. S., Rahyuda, I. K., Yasa, N. N. K., & Sukaatmadja, I. P. G. (2019). Persaingan Industri, Strategi Bisnis, dan Kinerja Industri. Denpasar: Udayana University Press.
Sari, Dessica D., & Utama, Agung. 2016. Analisis Pengaruh Kualitas Produk, Kualitas pelayanan Dan Harga Terhadap Kepuasan Konsumen
Sugiyono. 2014. Metode Penelitian Manajemen. Cetakan Kedua. Penerbit CV Alfabeta. Bandung.
Stavkova, J., Stejkal, L., & Toufarova, Z. (2008). Factors influencing consumer behaviour. (6), 9.
Suriyani. 2017. Pengaruh Bauran Pemasaran Terhadap Kepuasan Konsumen Pengguna Layanan 4G Telkomcel Di Samarinda Seberang. Ejournal Adiminstrasi Bisnis Vol.5 No.2. Universitas Mulawarman : Samarinda.
Van Es, R. A. J. (2012). The Relationship between Service Quality and Customer Loyalty, and its Influence on Business Model Design. Thesis Universiteit Twente, (September), 1–85.
Viglia, G., Mauri, A. and Carracano, M. (2016), “The exploration of hotel reference prices under dynamic pricing scenarios and different forms of competition”, International Journal of Hospitality Management, Vol. 52, pp. 46-55.
Wantara, P., & Tambrin, M. M. (2019). The Effect of Price and Product Quality Towards Customer Satisfaction and Customer Loyalty on Madura Batik. International Tourism and Hospitality Journal (ITHJ), 1–9.
Wu, C. C., Liao, S. H., Chen, Y. J., & Hsu, W. L. (2011). Service quality, brand image and price fairness impact customer satisfaction and loyalty. IEEE International Conference on Industrial Engineering and Engineering
Management, 1160–1164.
Zeithaml, V. A. (1988). Consumer Perceptions of Price, Quality, and Value: A Means-End Model and Synthesis of Evidence. Journal of Marketing, 52 (3), 2-22.
Published
2022-12-20
How to Cite
da Silva, J., Saldanha, E. and Barreto, D. (2022) “The Mediation Effect of Customer Satisfaction on the Relationship between Product Quality, Perceived Price Justice and Customer Loyalty”, Timor Leste Journal of Business and Management, 4, pp. 48-60. doi: 10.51703/bm.v4i0.98.
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