Journal of Multidisciplinary Issues

Examining the Impact of Product Quality, Consumer Experience, and Perceived Value on Customer Loyalty: a Structural Equation Modeling Approach

Betha Zionetha Mailoa — 2024-05-10

Purposes - This study aims to investigate the relationships between product quality, consumer experience, satisfaction, perceived value, and loyalty in the consumer goods market. Specifically, it seeks to understand how these variables contribute to fostering consumer loyalty, with a focus on identifying the direct and indirect effects of product quality, value, and experience on consumer loyalty. Methodology - A quantitative research approach was utilized, involving a survey-based data collection method. A structured questionnaire with a ten-point Likert scale was distributed to 250 respondents. The collected data were analyzed using Structural Equation Modeling (SEM) to test seven hypothesized relationships between product quality, value, experience, satisfaction, and loyalty. Findings - The results of the analysis indicate that product quality positively influences consumer experience, perceived value, and loyalty. Additionally, both satisfaction and perceived value were found to have significant positive effects on consumer loyalty. The findings highlight the importance of maintaining high product quality and creating positive consumer experiences to enhance long-term loyalty. Novelty - This research adds value by providing empirical evidence on the mediating roles of satisfaction and perceived value in the relationship between product quality and loyalty. It highlights the interconnectedness of these variables, offering a more comprehensive understanding of the mechanisms that drive consumer loyalty in the consumer goods sector. Research Implications - The findings of this study suggest that businesses should prioritize strategies that enhance product quality and consumer experience to foster loyalty. By focusing on these key areas, companies can effectively increase customer retention and strengthen their competitive position in the market. The study provides actionable insights for managers and marketers seeking to improve long-term consumer commitment.

An Empirical Analysis on The Impact of Image, Value, Quality, and Satisfaction on Customer Loyalty

Willa Aquarista — 2024-05-10

Purposes - This study aims to examine the influence of four key variables—image, value, quality, and satisfaction—on customer loyalty. The research seeks to evaluate both the direct and indirect effects of these variables on customer behavior, focusing on how customer satisfaction mediates these relationships to foster long-term loyalty. Methodology - The research employs a quantitative approach using structured questionnaires distributed to a randomly selected sample of respondents. Data were collected to test ten hypotheses that explore the relationships between the variables. Statistical analysis, including hypothesis testing, was conducted to determine the significance of each relationship, supported by reliability and validity assessments. Findings - The findings reveal that while quality and image do not have direct impacts on loyalty, their effects are significant when mediated by perceived value and customer satisfaction. Specifically, the study confirms that customer satisfaction plays a crucial role in enhancing loyalty, with quality and value significantly contributing to customer satisfaction, which in turn influences loyalty. Novelty - This study contributes to the existing literature by providing empirical evidence of the complex interrelationships between image, value, quality, and satisfaction in shaping customer loyalty. It highlights the importance of indirect effects, demonstrating that satisfaction and value are key mediators in the process of building loyalty, particularly in industries where product differentiation is challenging. Research Implications - The research suggests that businesses aiming to improve customer loyalty should prioritize strategies that enhance perceived value and customer satisfaction. By consistently delivering high-quality products and services that meet customer expectations, companies can improve their brand image and foster stronger customer loyalty. Future studies should further explore the emotional and psychological dimensions of loyalty and their potential impact on consumer behavior.

The Impact of Quality, Value, Image, and Satisfaction on Customer Loyalty: a Quantitative Study

Erin — 2024-05-10

Purposes - The purpose of this research is to examine the structural relationships between quality, value, image, satisfaction, and their combined influence on customer loyalty. The study aims to determine how these variables interact and to what extent quality affects loyalty both directly and indirectly through mediators like value and image. Methodology - This study employs a quantitative approach, using structural equation modeling (SEM) to analyze data collected from 250 respondents via a structured questionnaire. A Likert scale was utilized to measure responses across the variables. Reliability and validity assessments, including Cronbach’s alpha and Average Variance Extracted (AVE), were conducted to ensure robustness. Findings - The findings reveal that quality significantly impacts both value and image, which in turn influence satisfaction and loyalty. The results support the hypothesis that quality indirectly affects customer loyalty through perceived value and image. Image plays a critical role as a mediator, enhancing customer satisfaction and loyalty. Novelty - This research contributes to the existing literature by highlighting the complex, interrelated dynamics between quality, value, image, and satisfaction in driving customer loyalty. The study emphasizes the indirect effects of quality on loyalty through value and image, providing a deeper understanding of these mediating roles. Research Implications - The findings offer practical insights for businesses, suggesting that improving product or service quality can lead to better brand image and perceived value, which in turn boosts customer satisfaction and loyalty. Companies should focus on enhancing both quality and image to foster long-term customer retention and loyalty.

The Interplay of Corporate Image, Service Quality, Customer Value, and Satisfaction in Fostering Customer Loyalty: a Structural Equation Modeling Approach Using SmartPLS

Eugenius Hansel Lee — 2024-05-10

In today’s hyper-competitive business environment, customer loyalty has become a central focus for organizations aiming to maintain and expand their market share. This study examines the intricate relationships between corporate image, service quality, customer value, and customer satisfaction, and their collective impact on customer loyalty. By analyzing data from multiple scholarly articles and applying a structural equation modeling approach via SmartPLS, this research tests seven hypotheses that explore both direct and indirect effects of these variables on customer loyalty. Results reveal that corporate image, customer value, and satisfaction have significant direct influences on loyalty, while service quality exhibits no direct effect. Satisfaction serves as a mediating variable between corporate image, value, and loyalty, but not for service quality. These findings highlight the nuanced role of satisfaction as a bridge between the perceived value of a brand and customer loyalty. The study concludes with implications for business strategies and recommendations for future research, emphasizing the need to refine loyalty-building approaches by prioritizing customer satisfaction and brand perception.

Analyzing the Impact of Service Quality, Customer Satisfaction, Brand Image, and Customer Experience on Customer Loyalty

Merryta Djakaria — 2024-05-10

Purposes - The purpose of this study is to analyze the relationships between service quality, customer satisfaction, brand image, customer experience, and their collective impact on customer loyalty. These factors are critical in understanding how businesses can maintain customer retention and loyalty in a competitive environment. Methodology - This study employed an empirical research approach, utilizing data collected through questionnaires distributed to 250 respondents. The data were analyzed using Partial Least Square (PLS) analysis through SMART PLS software. The study examined the significance of the relationships between the variables using t-statistics and p-value thresholds. Findings - The results of the analysis indicate that service quality, customer satisfaction, brand image, and customer experience all have a direct and significant impact on customer loyalty. Additionally, service quality also exerts an indirect influence on customer loyalty, mediated through customer satisfaction, brand image, and customer experience. Novelty - This study contributes to the existing literature by integrating the combined effects of service quality, customer satisfaction, brand image, and customer experience on customer loyalty, highlighting both the direct and indirect relationships. It reinforces the idea that enhancing service quality not only improves customer loyalty directly but also through the mediation of other key factors. Research Implications - The findings suggest that businesses should prioritize continuous improvements in service quality and focus on enhancing customer experience, satisfaction, and brand image to maintain and strengthen customer loyalty. These insights are valuable for business practitioners aiming to sustain competitive advantage through improved customer retention strategies.