THE MEDIATION EFFECT OF CUSTOMER SATISFACTION IN RELATIONSHIP BETWEEN PRODUCT QUALITY AND SERVICE QUALITY TOWARDS CUSTOMER LOYALTY IN FUZEE SUSHI

Abstract

The food and beverage industry in Indonesia has been growing constantly every year and has also contributed to both manufacture and economic growth in both the current and the following years. The important role of food and beverage industry is transparent through the consistent contribution and significant impact towards Gross Domestic Product and food and beverage startup businesses that have been experiencing growth every year due to the growth of population in Indonesia. This study was made to discover the effects of product quality and service quality towards the customer loyalty to Fuzee Sushi. There is also customer satisfaction as a mediator between product quality and service quality to customer loyalty. This research is aimed on Fuzee Sushi’s customers that has bought the product more than once. An online questionnaire was distributed to the entire sample and used the five points Likert scale as a measurement method. The data is analyzed using the Partial Least Square method. The results of this research showed that product quality has positive direct relationship toward customer loyalty directly. However, service quality does not have direct positive impact towards customer loyalty. Product quality and service quality mediated by customer satisfaction has positive impact towards customer loyalty. The purpose of these findings is to understand more about the relationship between product quality, service quality, customer satisfaction, and customer loyalty in food and beverage start-up businesses in Indonesia.