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The Influence of Product Quality, Service Quality and Price on Customer

Satisfaction and Loyalty

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 Albari, Atika Kartikasari / The Influence of Product Quality, Service Quality and Price on Customer Satisfaction and Loyalty / 49 - 64

ISSN: 2581-0685 | e-ISSN: 2581-1177

Vol. 3 | No. 1

The Influence of Product Quality,

Service Quality and Price
on Customer Satisfaction and Loyalty

Albari, Atika Kartikasari

Jurusan Manajemen, Fakultas Ekonomi, Universitas Islam Indonesia,
Jl. Kaliurang No.Km. 14,5, Besi, Umbulmartani, Kec. Ngemplak, Kabupaten Sleman, D.I. Yogyakarta, Indonesia

ARTICLE INFO ABSTRACT

Keywords: Loyal customers tend to repurchase and positive word of mouth to

product quality, their colleagues. They are also not sensitive to price changes, but
service quality,
price,
are willing to submit ideas or suggestions to improve the quality of
satisfaction, the company’s products and services. Therefore, this study aims to
loyalty. examine the impact of antecedent variables (product quality policy,
service quality, and price) on customer satisfaction and loyalty.
Kata Kunci:
Kualitas Produk, The study population was Bu Zuni’s fried chicken customers, a roadside
Kualitas layanan, restaurant with local chicken specialists. Data was collected using
harga,
a questionnaire and distributed to 96 respondents by convenience
kepuasan,
loyalitas sampling. All calculations and tests use the SPSS program.

The results of the analysis prove that all antecedent variables can
influence loyalty variables, both directly and through satisfaction
variables. Service quality has the biggest positive influence on
customer satisfaction, while product quality contributes highest to
loyalty. These results are also supported by descriptive calculations.

SARI PATI

Pelanggan yang loyal cenderung untuk melakukan pembelian ulang

dan word of mouth yang positif kepada rekan kerjanya. Mereka
juga tidak sensitif terhadap perubahan harga, tetapi bersedia
menyampaikan ide atau saran untuk meningkatkan kualitas produk
dan layanan perusahaan. Karena itu, penelitian ini bertujuan untuk
menguji dampak kebijakan variabel anteseden (kualitas produk,
kualitas layanan, dan harga) terhadap kepuasan dan loyalitas
pelanggan.

Corresponding author: Populasi penelitian ini adalah pelanggan Ayam Goreng Bu Zuni,
albari@uii.ac.id sebuah restoran pinggir jalan yang berspesialisasi dalam ayam yang
kampung. Data dikumpulkan dengan menggunakan kuesioner dan
dibagikan kepada 96 responden secara convenience sampling. Semua
perhitungan dan pengujian dilakukan dengan bantuan program
pengolah data SPSS.

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Hasil analisis membuktikan bahwa semua variabel anteseden mampu

mempengaruhi variabel loyalitas, baik secara langsung maupun
melalui variabel kepuasan. Kualitas layanan memiliki pengaruh
positif terbesar terhadap kepuasan pelanggan, sementara kualitas
produk berkontribusi tertinggi terhadap loyalitas. Hasil tersebut juga
didukung oleh perhitungan deskriptif.

© 2019 AJEFB, All rights reserved.

INTRODUCTION must incur to retain customers or loyalty are

­The business world in Indonesia notes that generally lower than the costs of acquiring
business ventures that are able to withstand new buyers. In this context the magnitude of
the economic crisis that occur several times buyer loyalty is measured by the possibility
are MSME-scale businesses (micro, small and and actuality of repeat purchases of the same
medium enterprises). They are engaged in company’s brand or product.
various business fields, from manufacturing,
food processing, culinary, handicraft, and According to Bei and Chiao (2001; 2006) loyalty
services industries. However, the success of can be formed because there is product user
surviving the economic crisis has not yet been satisfaction, product quality, service quality,
followed by the quantity of entrepreneurs that and reasonable price of a product. Meanwhile,
exist. Herdiman (2014) noted the ratio of the the level of user satisfaction besides being
number of entrepreneurs compared to the able to determine the likelihood of loyalty, is
total population of Indonesia was only 0.18%, also determined by product quality variables
still far behind the United States (2.14%) or (Jahanshahi et al., 2011; Amanah, 2010),
Singapore (7.2%). service quality (Sharma, 2012; Hassan et al,
2013), and reasonable prices from products
With a ratio that is still low, it does not mean (Martı´n-Consuegra et al, 2007; Etemat-Sajadi
that Indonesian entrepreneurs can run and Rizzuto, 2013).
their business without regard to a qualified
business strategy. Because in fact they not The importance of building loyalty through
only have to compete with fellow Indonesian the aforementioned factors is also important
entrepreneurs, but also compete with similar in the colliner business, such as Bu Zuni’s fried
products from other countries in fighting for the chicken. Fried chicken Bu Zuni, local chicken
domestic market. One measure of the success specialists, was founded in 1990, located on
of competitive strategies that can be used Jalan P. Senopati, Magelang. Around the city
by entrepreneurs is their ability to increase of Magelang, Bu Zuni fried chicken is already
market satisfaction and loyalty. Even the size of well-known among the public. To still exist in
customer loyalty is considered more important the face of competing fried chicken Bu Zuni has
than the effort to obtain new customers. Kotler tried to set a strategy that suits the needs and
and Keller (2016) state that the costs a company desires of the market.

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This research tries to investigate the possible business due to its unwavering customers not
strategies that have been carried out by easily persuaded by prices from competitors.
Bu Zuni’s fried chicken. Among them are Furthermore, they tend to make more
attention to product quality, service quality, purchases than the less loyal customers (Al-
and affordable pricing. These variables may Rousan & Mohammad, 2010).
influence positively on market loyalty and
satisfaction. The results of the study will be The two aspects that become main consider-
useful in providing scientific contributions and ations of a company in maintaining customer
strengthening existing models of variables. In loyalty are: first, the increasing costs for acquir-
addition, it will also be useful as a basis for ing new customers in a highly competitive cli-
decision making for Bu Zuni’s fried chicken mate, and second, the fact that the profitability
management and similar businesses, including of a company is in proportion to the growth
in the context of developing MSMEs in of permanently established relationships be-
Indonesia. tween the company and its customers.

LITERATURE REVIEW Moreover, customer loyalty also reduces the

To deepen our understanding about the impact of attacks by competitors alike, not only
variables used in this study, literature review in terms of competition of product but also
of the following items was performed. perception. Loyal customers can encourage
business growth because they normally give
Loyalty ideas or inputs to the company to increase
Loyalty is defined as a solid commitment to product quality, and they eventually would
repurchase a preferred product or service relatively not mind the paid costs due to the
in the future on a consistent basis despite trust they have towards the product and quality
influences of situations and marketing efforts of the company.
that can potentially lead to a switch to another
product (Samani et al., 2011), which is similar to In addition to contribution to repurchases,
the definition laid out previously by Bei & Chiao customer loyalty can also be utilized as a
(2001; 2006). Bei and Chiao defined loyalty as communication tool among customers as
the unconditional faithfulness to a product they share about product, brand or company
or service resulting from self awareness that characteristics to other people or closest peers
repeatedly shows consumptive tendency through word of mouth marketing. This is also
towards certain brands despite influences of in line with Al-Rousan & Mohammad (2010),
situations and marketing efforts by competitors which argues that customer loyalty takes
to potentially change that particular behavior. place when customers repurchase and are
As a consequence of an appearing interest and willing to recommend the product to other
attitude of customers, loyalty can maintain consumers without directly receiving any
customers’ willingness to repurchase despite form of benefit. The word of mouth marketing
a raise in price (Albari & Dewi, 2011; Albari, among customers can lead to promotional cost
2009). Therefore, loyalty plays an important or marketing communications efficiency of the
role in a company. company, and furthermore optimized resource
allocation for other marketing efforts.
Based on the above definitions, customers
loyalty has a significant role in enhancing the Satisfaction
financial performance and sustainability of a According to Kotler & Keller (2016), customer

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satisfaction is the degree of a person’s emotions In other words, product manufacturing or

after comparing the performance or results he design should be oriented towards what the
felt with his expectations. While according to market wants or customer preferences, such
Sofyan et al. (2013), customer satisfaction is an as products of high quality. Consumers will
evaluation of a complete purchase where the be satisfied if the product they use is of high
chosen alternative gives the same results or quality (Bei & Chiao, 2001; 2006).
exceeds buyer’s expectations. A dissatisfaction
occurs if the results gained fail to meet customer Cronin et al. (2000) argues that service quality
expectations. Customer satisfaction also relates of a product should be included in the research
to the size and direction of a confirmation or on satisfaction model of the future. Meanwhile,
disconfirmation between post-purchase and Jahanshahi et al. (2011), Amanah (2010) and
post-usage, or a performance evaluation of the Brucks et al. (2000) proves that the quality of
product or service and customer’s assessment a product felt by consumers is a factor that
before purchase (Kinasih & Albari, 2012). influences customer satisfaction. Etemat-Sajadi
& Rizzuto (2013) argues that product quality
Helgesen & Nesset (2007) regards satisfaction has a positive effect on customer satisfaction.
as a summary of psychological conditions Based on the above opinions and research
or subjective values built upon customer findings, this study proposes the following
experience compared to customer expectations. hypothesis.
It is also argued that satisfaction is an assessment
of the product’s or service’s features, whether H2: Product quality has a positive effect on
the product or service itself manages to fulfill satisfaction.
a pleasure level through consumption.
Some researchers also argues that not only
Etemat-Sajadi & Rizzuto (2013), Sharma (2012) product quality does influence satisfaction level
and Jahanshahi et al. (2011) manages to prove but also customer loyalty, as proven by Bei &
that consumer satisfaction has a positive Chiao (2001; 2006). Jahanshahi et al. (2001) also
effect on their loyalty. Their research findings indicates that the majority of loyal customers
substantiate the empirical conclusions of are those who use high quality products. This
Etemat-Sajadi & Rizzuto (2013), Sharma (2012), implies that higher product quality tends to
and Jahanshahi et al (2011). Therefore, this lead to strengthen customer loyalty. Therefore,
study proposes the following hypothesis. this study proposes the following hypothesis.
Therefore the hypothesis in this study is:
H1: Satisfaction has a positive effect on loyalty.
H3: Product quality has a positive effect on
Product Quality loyalty.
Product quality is the ability of a product to
carry out certain functions, which can comprise Service Quality
durability, reliability, resulting accuracy, ease of Hassan et al. (2013) defines service quality
use and repair, and other valuable attributes as an assessment or attitude towards the
of the product holistically (Amanah, 2010). superiority of a service or in general. As time
In order for marketing of a product to work, progresses, service quality can be assessed
consumers need feel the compatibility with by looking at the correspondence between
product quality and they tend to purchase a expectations and perceptions towards the
product matching what they want or needs. service performance received by customers,

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or the service performance provided by the Bei and Chiao (2001; 2006).
company, judging by the direct assessment
given by the customers. (Albari, 2009). Based on the above empirical findings, this
study proposes the following hypothesis.
According to Ryu & Han (2010), service quality
that is felt by and customer satisfaction H5: Service quality has a positive effect on
can be studied using both the following loyalty.
perspectives: transaction-specific and global.
It is argued in that study that customers could Price
evaluate (satisfied/not satisfied) after the According to Martin-Consuegra et al. (2007),
researchers had examined the object or service. price is something that has to be sacrificed
More specifically, the researchers stated to match certain types of product or service
that customers can rate service quality by with consumer cognitive conception. Price
comparing their experiences and expectations perception majorly influences the consumer
with the service that they received to determine rationality in paying for a product or service
whether they are satisfied or not satisfied. (Albari & Safitri, 2018). In general, one would
perceive lower prices as lower product and
Some researchers managed to prove the service quality, and the other way around.
positive influence service quality has on In other words, price serves as an indicator
customer satisfaction, which can be seen of quality level, and it is considered equal
in Etemat-Sajadi & Rizzuto (2013), Sharma when on par with quality that comes with it.
(2012), Jahanshahi et al (2011), Helgesen & Thus, some researchers associate reasonable
Nesset (2007), and Bei & Chiao (2001; 2006). pricing, product quality and service quality
Moreover, Hassan et al. (2013) states that in with customer satisfaction and loyalty.
order to survive and remain competitive,
every business must develop its service Hassan et al. (2013), Amanah (2010), and
quality that will eventually result in customer Martı´n-Consuegra et al. (2007) manage to
satisfaction and loyalty. It is also argued that prove that reasonable pricing has a positive
higher service quality serves as an effective effect on customer satisfaction. That study is
means for increasing customer satisfaction and substantiated by Etemat-Sajadi & Rizzuto (2013)
loyalty. Thus, this study proposes that following arguing that pricing policy of a product would
hypothesis. positively influence consumer satisfaction.
Based on these empirical findings, this study
H4: Service quality has a positive effect on proposes the following hypothesis.
satisfaction.
H6: Standard pricing has a positive effect on
In addition to Hassan et al. (2013) arguing as satisfaction.
well as proving that service quality is capable
to affect satisfaction and loyalty positively, Furthermore, Hassan et al. (2013) and
Sharma (2012) also manages to to prove the Martı´n-Consuegra et al. (2007) also prove that
correlation among the three variables. Sofyan reasonable pricing has a direct and positive
et al. (2013) also specifically manages to prove influence on customer loyalty. This empirical
the positive influence that service quality finding also substantiates the findings by Bei
has on customer loyalty. These researchers & Chiao (2001; 2006), which had previously
confirmed what has been previously stated by proven that reasonable pricing has, both

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AJEFB - Asian Journal of Entrepreneurship and Family Business | Vol. III No. 01 (January - June 2019)

directly and through satisfaction as a mediator (2013); the statements about pricing were modi-
variable, a positive effect on customer loyalty. fied from Bei & Chiao (2001), as well as Han &
Therefore, this study proposes the following Ryu (2009); the statements on customer satis-
hypothesis. faction were modified from Han & Ryu (2009),
Sharma (2012), aswell as Ryu et al. (2012); and
H7: Price has a positive effect on loyalty. lastly the statements about customer loyalty
were modifiend from Han & Ryu (2009).
Research Framework
Based on the results of theoretical review and After passing data quality testing (validity and
hypotheses explained above, the research reliability testings), the data was analyzed
framework of this study can be structured as using the descriptive analysis technique
seen in Diagram 1. and regression model. The mean value of
each indicator and variable of this study
METHODS was used for the descriptive analysis so that
The subject of this study is the buyers or cus- of the descriptive superior tendency of an
tomers of Bu Zuni’s Fried Chicken. The roadside indicator value compared to other indicators
diner was chosen as a study subject because it and variables. While regression model was
shows a significant growth as a culinary busi- performed to determine the influence that
ness and entrepreneurial endeavor. Samples a variable has on other variables, as well
were chosen by using the convenience sam- as to prove the proposed hypotheses. The
pling technique, which is when buyers or cus- regression model was tested using six types
tomers are through with their purchase at Bu of testing (F-test, t-test, multicollinearity test,
Zuni’s Fried Chicken. Data collection was done heteroscedasticity test, linearity test and
by using questionnaire as an instrument dis- normality test). All tests were performed with
tributed to 96 respondents. The questionnaire the help of SPSS data processing software.
consists of five groups of variables used in this
study. The statements about product quality in RESULTS AND DISCUSSION
the questionnaire were modified from Josiam To meet the criteria of high quality data as the
et al. (2014); the statements on service quality basis for analysis, validity and reliability tests
were modified from Etemad-Sajadi & Rizzuto were performed on the indicator variables

Customer
Product Quality
Satisfaction

Service Quality

Consumer
Price
Loyalty

Diagram 1. Research Framework

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being studied. The validity testing was perceive the product pricing of Bu Zuni’s Fried
performed using product moment correlation Chicken is appropriate to its taste.
(r). According to Ghozali (2012), an indicator
is considered valid if the resulting r calculated The average rating on satisfaction variable
is positive and greater than the r table. The is 3.14 (high satisfaction). The highest rating
reliability testing was performed using the of 3.17 was given to the service provided by
Cronbach’s Alpha method. According to Ghozali the diner employees, which means that the
(2012), an indicator is considered reliable if its respondents highly value the service provided
Cronbach’s Alpha coefficient is greater than to them at Bu Zuni’s Fried Chicken.
0.60. The calculation results of the validity and
reliability testing are shown in Table 1. The average rating on consumer loyalty is 3.19
(high loyalty). The highest rating of 3.26 (high
From Table 1, it is known that the r calculated loyalty) was given because the respondents
values of all indicators in this study are would like to revisit to the diner in the future,
greater than 0.168 (the critical value of r, at which means that loyalty is present among
5% significance level, one-sided), which shows customers.
that all indicators meet the validity criteria.
The same goes for the reliability testing whose The next phase is the regression analysis that
calculation shows a resulting Cronbach’s Alpha is used to test the proposed hypotheses in
coefficient greater than 0.60. Thus, the variables this study. The testing procedure involves six
in this study meet the reliability criteria. approaches: the F-test, t-test, multicollinearity
test, heteroscedasticity test, linearity test and
Based on the results in Table 1, it is shown that normality test. The results of the regression
the average rating from the respondents is 3.14 model I are shown in Table 2.
(high quality product). In addition, the highest
rating of 3.29 (very high quality product) was The testing of sig-F in Table 2 shows that all
given to its aromatically appetizing product the independent variables inputted into the
(menu), which means that the respondents model collectively have a certain influence
regard Bu Zuni’s Fried Chicken product as on the dependent variables. The sig-F is
aromatically appetizing. 0.000, or below 0.05, so it can be said that the
hypotheses are substantiated. Therefore, it
On service quality, the average rating from the can be concluded that product quality, service
respondents is 3.24 (high service quality). The quality and price collectively have a positive
highest rating of 3.34 (high service quality) effect on customer satisfaction towards Bu
was gained because customers feel that orders Zuni’s Fried Chicken.
are served accurately and products are safe to
consume, which means that the respondents In the meantime, the testing of sig-t in Table 2
believe that Bu Zuni’s Fried Chicken will serve reveals that product quality has a sig-t value
accurately according to the orders and provide of 0.020, which is less than the critical testing
safe high quality product for customers. value of 0.05. Thus, the second hypothesis
(H2) is substantiated. This means that product
On price, the average rating is 3.15 (reasonable quality has a positive effect on customer
price). The highest score of 3.20 (reasonable satisfaction towards Bu Zuni’s Fried Chicken.
price) was gained because the price is worth Moreover, the sig-t of service quality is 0.001,
the taste, Which means that the respondents which substantiates the fourth hypothesis

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Table 1. Data Validity, Reliability, and Mean Calculation

Variable and Indicator Val./Rel. Mean

Product Quality 0.804 3.14
Appropriate serving portion 0.645 3.15
Aesthetic presentation 0.702 3.01
Appetizing aroma 0.818 3.29
Fresh 0.781 3.17
Consistent flavor 0.785 3.07
Service Quality 0.922 3.18
Accept all orders 0.736 3.34
Always on stand by employees 0.752 3.21
Short waiting time 0.675 3.18
Fair treatment 0.713 3.24
Convenient opening hours 0.703 3.08
Attentive employees 0.672 3.14
Hygienic Outlet 0.674 3.07
Neat employees 0.595 3.11
Sufficient seats 0.697 3.21
Immediately take in orders 0.712 3.19
Short queue 0.720 3.10
Helpful employees 0.708 3.19
Safe to consume the fried chicken 0.754 3.34
Competent employees 0.697 3.14
Trustworthy employees 0.587 3.10
Price 0.923 3.15
Affordable 0.907 3.10
Uniform pricing for all customers 0.868 3.14
Price worth the flavor 0.917 3.20
Appropriate or reasonable price 0.916 3.16
Customer Satisfaction 0.808 3.14
Satisfied with the diner in overall 0.825 3.16
Truly enjoyable experience 0.826 3.16
Pleasant mood in overall 0.791 3.09
Satisfied with the service provider in overall 0.852 3.13
Satisfied with the service given by employees in overall 0.809 3.17
Loyalty 0.845 3.19
Want to visit again in the future 0.865 3.26
Want to recommend this diner to peers or other people 0.862 3.30
Willing to spend more at this diner 0.813 3.02

(H4). This means that service quality has a hypothesis (H6), which means that reasonable
positive effect on customer satisfaction towards pricing has a positive effect on customer
Bu Zuni’s Fried Chicken. Furthermore, the satisfaction towards Bu Zuni’s Fried Chicken.
sig-t of price is 0.034 substantiating the sixth

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As the two findings above produces significant Based on Diagram 2, it can be seen that the
hypotheses test results, the analysis carried on residuals of the regression model are scattered,
with the classic tests, and the results are shown both below and above zero, and do not form a
in Table 3, 4 and 5, as well as Diagram 2. certain pattern. Thus, heteroscedasticity is not
present in the regression model, or in other
Based on the results in Table 3, it is known words homocedastic.
that the variance inflation factors (VIF) for
product quality, service quality and price are Based on the Kolmogorov Smirnov test results
1.074, 1.120 and 1.052, respectively. These in Table 4, it is known that the probability value
values are all less than 10. Meanwhile, the (sig) is 0.080, which is larger than the critical
tolerance values for product quality, service value 0.05. Thus, it is appropriate to conclude
quality and price variables are 0.931, 0.892 that the linear regression model has utilized
and 0.950, respectively, which are all larger normally distributed data.
than 0.1. Because of that, it can be concluded
that multicollienearity is not present in the Based the linearity test results in Table 5, the
regression model, and therefore is appropriate R-squared value is 0.002 with an observed
to be used in this study. sample N = 96. We could then calculate X2

Table 2. Multiple Linear Regression Model I Estimation Results

Independent Variable Beta coef. Sig-t r partial r2 partial

Product Quality 0.219 0.020 0.239 0.057
Service Quality 0.323 0.001 0.335 0.113
Price 0.198 0.034 0.219 0.048
Adjusted R Square 0.240
Sig- F 0.000

Table 3. Multicollinearity Test Results of Model I

Variable Tolerance VIF Conclusion

Product Quality 0,931 1,074 Not Multicollinear
Service Quality 0,892 1,120 Not Multicollinear
Price 0,950 1,052 Not Multicollinear

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Diagram 2. Heteroscedasticity Test

Table 4. Normality Test for Regression Model I

Model Probability Description

Residual 0,080 Normal

Table 5. Lagrange Multiplier Test for Model I

R-Squared N X2 calculated DF X2 Table

0.002 96 0.192 92 115,39

calculated = 96 x 0,002 = 0,192. The chi square examine the positive influence that product
value was then compared with X table of 2
quality, service quality and reasonable pricing
115.39, as DF = 92. Thus, X calculated < X
2 2
have on customer satisfaction level.
table, and it can be said that the independent
variables of the regression model have a linear Furthermore, the regression model II was put
influence on the dependent variables. to a test to show the positive influence that
product quality, service quality, reasonable
Based on the classic assumption test results, pricing and satisfaction have on customer
it can be concluded that this regression loyalty level. The regression model II can be
model I does not have multicollinearity and seen in Table 6.
heteroscedasticity, have normally distributed
data and has its independent variables linearly The sig-F testing was conducted to show that all
influencing its dependent variables. Thus, the independent variables inputted into the model
regression model can still be used to testing the collectively have an influence on the dependent
hypotheses because it has passed the classic variables. Based on Table 5, it is known that the
assumption test. In other words, the regression sig-F value is 0.000, or below the significance
model is relevant to be used as a test model to level of 0.05. Therefore, the hypotheses in this

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study are substantiated. It can be concluded that reasonable pricing has a positive effect
that product quality, service quality, price and on customer loyalty towards Bu Zuni’s Fried
customer satisfactions variables collectively Chicken.
have a positive effect on customer loyalty
towards Bu Zuni’s Fried Chicken diner. As the two findings above produces significant
hypotheses test results, the analysis carried on
Based on the t-test and its results as seen in with the classic tests, and the results are shown
Table 6, it is known that product quality has in Table 7, 8 and 9, as well as Diagram 3.
a sig-t value of 0.001. Therefore, the third
hypothesis (H3) is substantiated empirically, Based on Table 7, it is shown that the VIF
which means that product quality has a values of product quality, service quality and
positive effect on customer loyalty towards Bu price are 1.139, 1.262 and 1.105, respectively,
Zuni’s Fried Chicken. As for service quality, the which are all less than 10. The tolerance levels
variable has a sig-t value of 0.037. Thus, the fifth of product quality, service quality, price and
hypothesis (H5) is substantiated, which means customer satisfaction are 0.878, 0.792, 0.905
that service quality also has a positive effect on and 0.736, respectively, which are all larger
customer loyalty. than 0.10. Therefore, it can be concluded
that multicollinearity is not present in the
Table 6 also shows that the price variable regression model II equation, and thus it is
has a sig-t value of 0.018. Thus, the seventh appropriate to be used in this study.
hypothesis (H7) can be proven significantly
and it can be said that reasonable pricing has Based on Diagram 3, it can be seen that the
a positive effect on loyalty. The same goes for residuals of the regression model are scattered,
satisfaction with a sig-t value of 0.021 that both below and above zero, and do not form
substantiates the first hypothesis (H1), meaning a certain pattern. Thus, heteroscedasticity is

Table 6. Multiple Linear Regression Estimations for Model II

Variable Beta coef. Sig-t r partial r2 partial

Product Quality 0.304 0.001 0.343 0.118
Service Quality 0.194 0.037 0.217 0.047
Price 0.207 0.018 0.245 0.060
Customer Satisfaction 0.225 0.021 0.240 0.058
Adjusted R Square 0.364
Sig- F 0.000
Depend. Var : Consumer Loyalty

Table 7. Multicollinearity Test Results of Model II

Variable Tolerance VIF Conclusion

Product Quality 0.878 1,139 Not Multicollinear
Service Quality 0.792 1,262 Not Multicollinear
Price 0.905 1,105 Not Multicollinear
Consumer Satisfaction 0.736 1.359 Not Multicollinear

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Diagram 3. Regression Model II Heteroscedascity Test

Table 8. Regression Model II Normality Test

Model Sig Description

Residual 0,273 Normal

Table 9. Lagrange Multiplier Test

R Square N X2 calculated DF X2 Table

0.001 96 0.096 91 114,27

not present in this proposed regression model be concluded that the independent variables of
in particular. the regression model have a linear influence
on the dependent variables.
Based on the Kolmogorov Smirnov test in Table
8, it is known that the probability value is 0.273, In overall, the regression model II has met all
which is larger than the critical significance test requirements for a regression model to be
value 0.05. Thus, it is appropriate to conclude considered relevant because it fulfills the t-test,
that the linear regression model has utilized F-test and classic tests (for multicollinearity,
normally distributed data. heteroscedascity, normality and linearity).
The calculations for linearity in Table 9 show Thus, it can be concluded that product quality,
that the R Square is 0.001 with an observed service quality, price and customer satisfaction
sample N = 96. We could then calculate X 2
variables have a positive effect on customer
calculated = 96 x 0,001 = 0,096. The chi square loyalty towards Bu Zuni’s Fried Chicken.
value was then compared with X table. At DF 2

= 92 and significance level = 5%, X2 table is DISCUSSION AND IMPLICATION

114.27. Because X calculated < X Table, it can
2 2
The analyses of the regression model I and

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model II tell us that product quality, service abilities to satisfy or fulfill consumer needs. In
quality and price collectively have a positive practice, a company can apply service quality
effect on customer satisfaction. Furthermore, by providing the best service for its consumers
product quality, service quality, price and for the purpose of customer satisfaction, which
customer satisfaction also collectively have will then solidify loyalty. Service quality from
an influence on customer loyalty towards Bu a company will be perceived positively by
Zuni’s Fried Chicken in the city of Magelang. customers. As customers perceive the service
given positively, there is a better chance that
The results are consistent with the empirical their expectations can be met leading to greater
propositions and findings previously presented customer satisfaction. As customer satisfaction
by other researchers, such as Etemat-Sajadi increases, the degree of loyalty towards Bu
& Rizzuto (2013), Sofyan et al. (2013), Hassan Zuni’s Fried Chicken also increases resulting
et al. (2013), Sharma (2012), Jahanshahi et al. in repeat visits and recommendation to others.
(2011), Amanah (2010), Martı´n-Consuegra
et al. (2007), Helgesen & Nesset (2007), as Price, as the third antecedent variable in this
well as Bei & Chiao (2001; 2006). Whether study, also proven to have a positive effect
partially or as a whole, they concluded that and significance on customer satisfaction and
product quality, service quality and price as loyalty towards Bu Zuni’s Fried Chicken. This
the antecedent variables can have a direct or means that pricing is affordable and is worth
indirect positive influence on customer loyalty. the quality and service, which results in an
In other words, satisfaction can function as a increase in customer satisfaction and loyalty.
mediator variable for the positive influence of In their daily activities, there is a good chance
the three antecedent variables towards loyalty. that consumers will repurchase and even make
recommendations to others on product and
The analysis in this study has shown that service quality, as well as satisfaction, if they
product quality is a variable that has a positive feel that the price of the product or service is
effect and significance on customer satisfaction reasonable.
and loyalty. This means that an increase in
product quality will result in an increase in Lastly, the positive influence that customer
customer satisfaction, which then eventually satisfaction has on customer loyalty shows that
leads to an increase in customer loyalty. The a higher degree of customer satisfaction will
reason for that is because consumers always result in a greater degree of customer loyalty,
want to yield a high value from the purchase which will promote benefits for the diner such
they make, and one of the criteria of something as maintaining good relationships between the
of high value is that customer expectations with diner and customers, encouraging repurchases,
regards to value would affect their degree of as well as word of mouth recommendations.
satisfaction towards the consumed product.
The study results above can be considered
The same applies for service quality when determining the strategy for the diner,
variable, which also show a positive effect especially on attributes or indicators that are
and significance on customer satisfaction still perceived relatively low by its customers
and loyalty. This is consistent with what such as the aesthetic presentation of the meals.
was proposed by Kotler and Keller (2016) There is a demand for creativity and innovation
that service quality is a form and sum of to improve the aesthetic aspects of the menu
characteristics of goods and services in their so that it does not appear monotonous to

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AJEFB - Asian Journal of Entrepreneurship and Family Business | Vol. III No. 01 (January - June 2019)

customers. An improvement in that area will come up with a variety of menu at different
improve the appeal and attractiveness of the price points so that customers can purchase
products that customers crave for so that they the options they can afford.
will never get bored with the diner.
CONCLUSION
As regards service quality, the diner needs This study has substantiated the proposed
to prioritize upgrading tangible dimensions hypotheses despite its shortcomings: the
such the hygiene level of the place, which reasonably narrow subject scope and the
comprises cutlery items, tables, as well as relatively conventional regression model used.
indoor and outdoor environment. Maintaining Only one culinary business was involved in
hygiene is a key task for a diner because a dirty this study, with a limited number of samples.
environment can result in loss of appetite. The To obtain a more substantiated research
diner can consider appointing a dedicated model, it is worth to consider involving more
employee for keeping the space and cutlery culinary business with larger sample size in
clean so that customers feel more comfortable the future. Moreover, the research model is
dining in. relatively complex and involves interactions
among a number of variables. Moving forward,
In terms of price, affordable pricing is seen as the it is worth to consider using research models
lowest performing among the other indicators. integrating structural equation modelling
For that reason, without compromising on (SEM) such as LISREL, AMOS and PLC to obtain
product and service quality, the diner should more comprehensive analysis processes.

Acknowledgement
The researchers would like to thank all parties who have given their support in completing this
study, especially the respondents. We also would like to express gratitude to the Management
Department, Faculty of Economics, Universitas Islam Indonesia that has funded this study.

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