The Effect of the Price and Quality of Service on Customer Satisfaction and Consumer Loyalty in DCK

Abstract

The increase of public awareness in the importance of maintaining the well-designed homes and business places, causing a rise in the growth of production value of furniture sector belonging to small industries. DCK is one of those small furniture industries. This growth makes the competition among furniture businesses is also increasing. This is why this research is being done by the researchers. This study aims to identify and analyze the variables affecting marketing performance such as price, service quality, customer satisfaction, and customer loyalty. Each of these variables is formed by several indicators where in price’s variables, there are indicators such as flexibility, customization, differentiation, and promotion. While for service quality variables, there are tangible, reliability, assurance, responsiveness, and empathy indicators. For customer satisfaction, there are complaint, referral, repurchase likelihood. As for the loyalty of consumers, the variables are brand loyalty, consumer retention, and demand growth. This research uses purposive sampling method to attain the sample. The sample in this study are all DCK consumers who buy DCK services with nominal minimum 15 million rupiah and above, and live in Surabaya, also who have bought DCK services at least a year ago. This research is also a type of quantitative explanatory where there is an explanation between the influences of the variables present in it. The results of this study show that price and quality of service have a significant effect on customer satisfaction. In addition, in this study also indicated that consumer satisfaction has a significant effect on consumer loyalty.