| Summary: | Sabah is the only state in Malaysia which commercially produces seaweed. Problem of price instability for seaweed tends to have negative impacts on seaweed producers.
This study which used a Price Satisfaction Dimension Model (with five elements such as price reliability, price fairness, relative price, price-quality ratio and price transparency) was to investigate seaweed price satisfaction among producers towards buyers and its linkage relationship on producer's loyalty in term of business performance (financial and non financial). A total of 50 seaweed producers were selected and interviewed face to face at Lok Buton village and Gelam Gelam village on Pulau Bum Bum,
Semporna. Demographic characteristic of respondents were summarized using descriptive statistics. Factor analysis was conducted and three components (price reliability, relative price and price-quality ratio) were identified in price satisfaction dimensions. K-mean clustering analysis further revealed there were three producer segments namely satisfied, unsatisfied and neutral groups and their demograhic characteristics also explained from this dimensions. Partial least square method was used and Structural Model of relationship between price satisfaction towards loyalty and business relationships was predicted. This model successfully met the goodness of model fit requirements from its composite reliability, convergent validity, discriminant validity and R2 for loyalty, financial, non financial performance showed 0.579, 0.832
and 0.698 respectively. Overall, it is hoped that this study would be able to offer a managerial options for local and foreign seaweed buyers to meet seaweed producers'
satisfaction towards their loyalty and promote sustainability of business relationship.
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