Analysis of Effects of Product Quality, Promotion and Received Value Towards Customer Loyalty through Customer Satisfaction Grab Food

Product quality, promotion, perceived value, customer loyalty, customer satisfaction

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June 28, 2021

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The purpose of this study was to determine the effect of product quality, promotion, and perceived value on customer loyalty with customer satisfaction as an intervening variable. The population of this research is Grab Food customers. The population in this study were Grab Food customers. The sample was taken by purposive sampling method with the criteria being Grab Food customers or had used it 3 times, and the samples analyzed were 125 respondents. The research method used is causal research to prove the theory with quantitative analysis approach with data analysis method using Structural Equation Model - Partial Least Square. The model test results show that the effect on customer satisfaction is strong and on customer loyalty is moderate, the predictive capability of the theory is large, and the relationship between the structural model and the measurement model is fit. The results of hypothesis testing conclude that product quality, promotion and perceived value variables affect customer satisfaction. The product quality and promotions do not affect customer loyalty either directly or through customer satisfaction. Perceived value directly affects customer loyalty but does not affect customer loyalty through customer satisfaction. And customer satisfaction does not directly affect customer loyalty.