The Effect of Service Quality Prices and Location of Companies to Customer Satisfaction Implications on Customer Loyalty

The purpose of this study was to determine the effect of service quality, price suitability, company location, and customer satisfaction partially or jointly on customer loyalty in freight forwarders in Jabodetabek. The research method used in this research is descriptive and explanatory survey met...

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Main Authors: Henny Risnawati, Hendi Eka Sumarga, Sugeng Purwanto
Format: Article
Language:English
Published: EconJournals 2019-10-01
Series:International Review of Management and Marketing
Online Access:https://www.econjournals.com/index.php/irmm/article/view/8736
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author Henny Risnawati
Hendi Eka Sumarga
Sugeng Purwanto
author_facet Henny Risnawati
Hendi Eka Sumarga
Sugeng Purwanto
author_sort Henny Risnawati
collection DOAJ
description The purpose of this study was to determine the effect of service quality, price suitability, company location, and customer satisfaction partially or jointly on customer loyalty in freight forwarders in Jabodetabek. The research method used in this research is descriptive and explanatory survey methods with a sample size of 270 respondents and the data analysis method used is SEM (Structural Equation Modeling) with a lisrel 8.80 data analysis tool. Based on the results of the study, the following findings were obtained: service quality, price suitability, and company location partially or jointly had a significant effect on customer satisfaction with a contribution of 62%. Partially the quality of service has the most dominant influence on customer satisfaction. Service quality, price suitability, company location, and customer satisfaction partially or jointly have a significant effect on customer loyalty with a contribution of 85%. Partially customer satisfaction is most dominant in influencing customer loyalty. The results also show that customer loyalty is a full mediating variable on the effect of service quality, price suitability, and company location on customer loyalty. The results of this study provide managerial implications for freight forwarders that to increase customer loyalty reflected in the dimensions of showing immunity to competitors is to increase customer satisfaction which is reflected by an increase in the dimension of price perception, where customer satisfaction will increase if freight forwarders are able to improve service quality, especially reflected in the assurance dimension, which is supported by increasing price conformity, especially reflected in increasing dimensions of product price conformity with the benefits obtained and supported also by increasing the ease of company location, especially as reflected in an increase in the visibility dimension. Keywords: Service Quality, Price Suitability, Company Location, Customer Satisfaction, Customer Loyalty JEL Classifications: L8, M31, N75 DOI: https://doi.org/10.32479/irmm.8736
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spelling doaj.art-3070fc828b3d475dadaad5a4d0e5eb382023-02-15T16:09:42ZengEconJournalsInternational Review of Management and Marketing2146-44052019-10-01964167The Effect of Service Quality Prices and Location of Companies to Customer Satisfaction Implications on Customer LoyaltyHenny Risnawati0Hendi Eka SumargaSugeng PurwantoUniversitas Persada Indonesia Y.A.I, Jakarta The purpose of this study was to determine the effect of service quality, price suitability, company location, and customer satisfaction partially or jointly on customer loyalty in freight forwarders in Jabodetabek. The research method used in this research is descriptive and explanatory survey methods with a sample size of 270 respondents and the data analysis method used is SEM (Structural Equation Modeling) with a lisrel 8.80 data analysis tool. Based on the results of the study, the following findings were obtained: service quality, price suitability, and company location partially or jointly had a significant effect on customer satisfaction with a contribution of 62%. Partially the quality of service has the most dominant influence on customer satisfaction. Service quality, price suitability, company location, and customer satisfaction partially or jointly have a significant effect on customer loyalty with a contribution of 85%. Partially customer satisfaction is most dominant in influencing customer loyalty. The results also show that customer loyalty is a full mediating variable on the effect of service quality, price suitability, and company location on customer loyalty. The results of this study provide managerial implications for freight forwarders that to increase customer loyalty reflected in the dimensions of showing immunity to competitors is to increase customer satisfaction which is reflected by an increase in the dimension of price perception, where customer satisfaction will increase if freight forwarders are able to improve service quality, especially reflected in the assurance dimension, which is supported by increasing price conformity, especially reflected in increasing dimensions of product price conformity with the benefits obtained and supported also by increasing the ease of company location, especially as reflected in an increase in the visibility dimension. Keywords: Service Quality, Price Suitability, Company Location, Customer Satisfaction, Customer Loyalty JEL Classifications: L8, M31, N75 DOI: https://doi.org/10.32479/irmm.8736 https://www.econjournals.com/index.php/irmm/article/view/8736
spellingShingle Henny Risnawati
Hendi Eka Sumarga
Sugeng Purwanto
The Effect of Service Quality Prices and Location of Companies to Customer Satisfaction Implications on Customer Loyalty
International Review of Management and Marketing
title The Effect of Service Quality Prices and Location of Companies to Customer Satisfaction Implications on Customer Loyalty
title_full The Effect of Service Quality Prices and Location of Companies to Customer Satisfaction Implications on Customer Loyalty
title_fullStr The Effect of Service Quality Prices and Location of Companies to Customer Satisfaction Implications on Customer Loyalty
title_full_unstemmed The Effect of Service Quality Prices and Location of Companies to Customer Satisfaction Implications on Customer Loyalty
title_short The Effect of Service Quality Prices and Location of Companies to Customer Satisfaction Implications on Customer Loyalty
title_sort effect of service quality prices and location of companies to customer satisfaction implications on customer loyalty
url https://www.econjournals.com/index.php/irmm/article/view/8736
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