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American Journal of Economic and Management Business

p-ISSN: XXXX-XXXX

 e-ISSN: 2835-5199

Vol. 3 No. 7 July 2024


 

The Influence of Brand Image and Service Quality on Customer Loyalty with Customer Satisfaction as a Mediation Variable

(Case Study: Scarlett Whitening Consumer in Malang City)

 

Nor Nabila Syafikah1*, Nur Asnawi2

Maulana Malik Ibrahim State Islamic University Malang, East Java, Indonesia1,2

Email: [email protected]1*, [email protected]2

 

Abstract

In the modern era, marketing has undergone significant developments. Maintaining a business in a competitive environment poses challenges for business owners. Intense competition often leads many to give up. However, by employing various strategies to foster consumer loyalty, businesses can thrive amidst fierce competition. This study aims to examine the influence of brand image and service quality on customer loyalty, with customer satisfaction as a mediating variable. Utilizing a quantitative research method with a descriptive approach, the study surveyed 150 consumers of Scarlett Whitening in Malang City using questionnaires distributed via Google Forms. Data were analyzed using SmartPLS software version 4.0. The findings indicate that brand image and customer satisfaction significantly impact customer loyalty of Scarlett Whitening consumers in Malang City. Conversely, service quality does not have a significant effect on customer loyalty. Customer satisfaction mediates the relationship between service quality and customer loyalty, but it does not mediate the relationship between brand image and customer loyalty.

Keywords: Brand Image, Service Quality, Customer Satisfaction, Customer Loyalty.

 

INTRODUCTION

A business or business needs to maintain a sense of loyalty that each of its consumers has. Consumer Loyalty is a situation where consumers make repeated purchases on a company or product consistently (Kotler & Keller, 2016). Meanwhile, Halim et al. (2021) revealed that Consumer Loyalty is a commitment that consumers have in determining the decision to buy back a product or company in the future. This loyalty is defined as a commitment that consumers have to buy back the same company or product in the future. Therefore, a sense of loyalty is very important to grow in the minds of consumers so that they continue to be in contact with a certain company or product.

Brand Image itself can describe the nature of a product and can be seen and evaluated by consumers even before the product is used (Kotler & Keller, 2016). By affirming the brand image, the company is considered to meet the social and psychological needs of consumers. Brand Image is a set of beliefs that consumers have about a brand, which is formed through stimuli and experiences that result in different perceptions (Zainurossalamia, 2020). Meanwhile Tjiptono (2023) reveals that Brand Image is a set of associations that are perceived by a person (consumer) all the time as a result of his observation and experience, either directly or indirectly towards a brand. Therefore, Brand Image is considered important because it is the mindset that consumers have when they hear or see the name of a certain brand in the future (Supranto, 2011).

Brand Image itself is said to be one of the factors that can form Customer Loyalty, this is evidenced by research from Kittur and Chatterjee (2021) which proves that Brand Image affects Customer Loyalty positively, which means that Brand Image can form Customer Loyalty significantly. A similar study from Purnomo et al. (2023) also found that Brand Image affects Customer Loyalty significantly and positively. In addition to positive results, there are also negative results between Brand Image and Customer Loyalty through research from Rahman, Islam, and Chowdhury (2023). Through several of these studies, it can be concluded that Brand Image can positively affect Customer Loyalty. In addition, Brand Image also produces negative results on Customer Loyalty. So, it is necessary to conduct a re-study between Brand Image and Customer Loyalty to get more valid and effective results.

In addition to Brand Image, there is also Service Quality which is one of the shapers of Customer Loyalty, Juan and Yan Dalam (Wicaksono, 2022) revealed that three important factors that can affect Customer Loyalty are Service Quality, Customer Satisfaction, and Customer Value. Service Quality is a tool that customers can use to evaluate the quality of services provided by a business or product with services that are in accordance with the level expected by consumers (Kotler & Keller, 2016). Service Quality can also be interpreted as a measure of whether or not a service provided by a company is good or not with a measure of suitability between the services obtained in accordance with consumer expectations (Yanto & Salim, 2023). Therefore, the determination of whether or not the Service Quality of a company or product is good or not is seen from the way consumers assess and measure the service.

Service Quality as one of the factors that form Customer Loyalty, this is evidenced through research from Purnomo et al. (2023) which presented the results that Service Quality positively affects Customer Loyalty. A similar study that also explains that Service Quality produces a positive influence on Customer Loyalty is a study from Abed et al. (2022) The research from Purnamabroto, Susanti, and Cempena (2022) explained the positive results between Service Quality and Customer Loyalty. In addition, there is also a study from Zebrga and Zaveri (2020) which explains the negative results between Service Quality and Customer Loyalty. There is also another study from Simanjuntak and Djumarno (2023) that explains the negative results between Service Quality and Customer Loyalty. Through this, it can be concluded that the relationship between Service Quality and Customer Loyalty has two different outcomes.

Customer Satisfaction is also considered an attitude that can be known after consumers have experience with a product or company, either after the consumer consumes the product or service or even just on its service (Yanto & Salim, 2023). Consumers tend to form a pleasant perception of a company or product that they consider to have positive value, so the perception given by the company when consumers first interact is very important (Kotler & Keller, 2016). The positive value of consumer feelings that arise can cause a sense of loyalty from the consumer to the company or brand. The relationship between Customer Loyalty and Customer Satisfaction can be proven through research conducted by Tjahjadi and Limakrisna (2022) which presented positive results on Customer Satisfaction to Customer Loyalty.

Breaking the MURI record, Scarlett sold the most perfumes in 30 minutes

Figure 1. Scarlett Whitening's Muri Record Reception

Source : Antara, 2023

 

The aims of the research are to investigate how Brand Image, Service Quality, and Customer Satisfaction influence consumer loyalty, particularly for Scarlett Whitening products. The researcher hopes the findings will provide valuable insights for maintaining and enhancing consumer loyalty to Scarlett Whitening by focusing on these key factors.

 

RESEARCH METHODS

This study uses a quantitative research method in the form of descriptive, this aims to describe a phenomenon or event that is factual, systematic, and accurate using concrete data. This is also justified by Sugiyono (2022) who said that this method is a research method based on concrete data where the research data used is in the form of numbers measured using statistics as a test tool related to research. Meanwhile, Creswell (2016) revealed that this quantitative research is a study that is described with numbers where the data is in the form of numbers, either values, rankings, or frequencies. Therefore, this study also uses a quantitative method because this research will work by using concrete numbers and data.

Research Location

In this study, the researcher chose a research location in Malang City. This is determined because Malang City is the second most populous city after Surabaya in East Java. In addition, the density of the city of Malang is mostly filled by residents in the age range of 12 years to 30 years. Where, this age is a group of Scarlett Whitening's target market which is in the age range of 12 years to 40 years. Therefore, the researcher chose Malang City as the research location also in order to save the energy and time of the limited researcher.

Population and Sample

In this study, the researcher used a probability sampling technique and used simple random sampling. This is because this research is conducted in a simple way and is carried out randomly without looking at the strata in the population (Wakarmamu, 2022). The population chosen by the researcher is all genders, both male and female, with an age range of 17 years to 35 years who are Scarlett Whitening users in the city of Malang. Where this population is unknown and the actual number is uncertain.

Primary data is original data collected directly by researchers to answer problems from research, usually in the form of interviews or filling out questionnaires (Wakarmamu, 2022). In this study, what is meant by primary data is data obtained through filling out a questionnaire by Scarlett Whitening users in the city of Malang. Secondary data is data obtained indirectly, usually sourced from company records or data through other people's documents (Wakarmamu, 2022). In this study, secondary data is data obtained by researchers through other sources such as the internet, social media, or official shopping platforms from Scarlett Whitening herself.

 

RESULT AND DISCUSSION

Scarlett Whitening

Scarlett Whitening is a local brand engaged in beauty care. Scarlett Whitening itself was founded in 2017 by an Indonesian celebrity, Felicya Angelista. Scarlett Whitening products have been tested regularly to ensure that the products are safe and free from compounds that have the potential to stimulate sensitive reactions on the user's skin. Scarlett Whitening products are not tested on animals, which proves that all Scarlett Whitening products have been clinically tested. This can create confidence in its users that Scarlett products are not harmful to their skin. Scarlett puts out a wide range of beauty products that focus on brightening the skin. In addition, Scarlett also focuses on maintaining the health of the skin of its users (Scarlett Whitening 2024b).

Figure 2. Felicya Angelista; Owner Scarlett Whitening

Source : Scarlett Whitening 2024

 

With the slogan "Reveal Your Beauty" which means "reveal your beauty", Scarlett Whitening invites and provides solutions to its users to increase their confidence and be more daring to express beauty in different versions (Scarlett Whitening 2024b). Scarlett Whitening products have also been tested and have gone through the certification process and passed the test at the Food and Drug Supervisory Agency (BPOM), halal certification, and dermatologically tested (Scarlett Whitening 2024b). Therefore, Scarlett Whitening products are guaranteed to be halal and safe, so that users do not feel hesitant and afraid when using the product. Scarlett Whitening has three types of products, namely body care, face care, hair care and the latest product launched by Scarlett, namely perfume.

Figure 3. Scarlett Products

Source : Scarlett Whitening 2024

 

Scarlett Whitening products contain glutathione and vitamin E which are good for the skin to look brighter and healthier. This Scarlett Whitening product is also said to be safe because it does not contain harmful substances such as mercury and hydroquinine which can cause the appearance of dark spots on the skin, allergies, irritation and so on. Therefore, this product is still safe if used by pregnant women or breastfeeding mothers (Soehandoko, 2022) In addition, this Scarlett Whitening company prefers online marketing as its main focus. Scarlett Whitening's products themselves can be accessed through several e-commerce platforms such as Instagram, Shopee, Lazada, Tokopedia, and blibli under the name Scarlett Whitening Official Shop. However, Scarlett Whitening also has several resellers as distributors of offline marketing of her products. The selling prices for resellers vary, starting from Rp. 720,000 for 12 bottles to Rp. 2. 496.000 for 48 bottles (Coil 2022).

Gender of Respondents

The gender needed in this study is two types, namely women and men. The Scarlett Whitening consumers who live in the city of Malang are presented as follows:

 

Table 1.

Gender of Respondents

Gender

Sum

Percentage

Woman

122

81,3%

Man

28

18,7%

Total

150

100%

Source : data processed by researchers, 2024

 

Based on the data in table 1. It can be seen that the gender distribution in this study shows that there are as many as 122 or equal to 81.3% of respondents who are female. Meanwhile, as many as 28 oor equal to 18.7% are respondents with a male gender. Through these results, it can be concluded that Sacrlett Whitening users in Malang City are more dominant in female users than men.

Age of Respondents

The age criteria of the respondents needed by the researcher are at the minimum age limit of 17 years to the maximum limit at the age of 35 years. The data of Scarlett Whitening consumers domiciled in Malang City by age is presented as follows:

 

Table 2.

Age of Respondents

Age

Sum

Percentage

17-21 Years

46

30,7%

22-26 Years

79

52,7%

27-31 Years

20

13,3%

32-35 Years

5

3,3%

Total

150

100%

Source : data processed by researchers, 2024

 

Table 2. showed the age distribution of respondents who included Scarlett Whitening consumers who were domiciled in Malang City. A total of 79 respondents or equal to 52.7% are in the age group of 22-26 years. Meanwhile, the second age group with the most number of 46 or equal to 30.7% is in the age group of 17-21 years. The respondents as many as 20 or equal to 13.3% are in the age group of 27-31 years, and the last age group with the least number and percentage level is the age group of 32-35 years with a number of 5 or equal to 3.3% of the total. Therefore, it can be concluded that users of Scarlett Whitening products are dominant in the age group of 17 years to 26 years.

Domicile

In this study, the selected area is the city of Malang with six sub-districts, namely Dinoyo, Lowokwaru, Klojen, Blimbing, Sukun and Kedungkandang. The distribution results from the domicile area are as follows:

Table 3.

Domicile

Domicile

Sum

Percentage

Dinoyo

34

22,7%

Lowokwaru

35

23,3%

Klojen

20

13,3%

Blimbing

20

13,3%

Breadfruit

21

14%

Kedungcage

20

13,3%

Total

150

100%

Source : data processed by researchers, 2024

 

Based on table 4.3 presented above, of the six sub-districts that were used as the research site, there were Dinoyo and Lowokwaru areas with a difference of 1%, namely with details of Dinoyo as many as 34 people or equal to 22.7% while Lowokwaru with 35 people or equal to 23.3%. There are three sub-districts with the same number, namely 20 or equal to 13.3% which occur in Klojen, Blimbing, and also Kedungkandang. Meanwhile, Sukun has a difference of 1% more than the three sub-districts that have the same number, namely with 21 people or equal to 14% of the percentage.

The Influence of Brand Image on Customer Loyalty

Brand Image has a direct influence on Customer Loyalty. The results of this variable test show an original sample value of 0.236 with a t-statistical value of 2.230 which is greater than 1.96. Meanwhile, the p- value in the results of this test is 0.026. These results show that the relationship between Brand Image and Customer Loyalty has a direct and significant influence. The story of this study is in line with the theory of (Yanto & Salim, 2023) who said that customer loyalty is formed because of the habit of consuming a brand and liking a brand because the brand is a good brand. The brand image is an association perceived by consumers through the results of their experience with a brand (Yanto & Salim, 2023). The results of this study are in line with the results of previous research presented by Kittur and Chatterjee (2021) and (Rahman et al., 2023) In the study, it was stated that Brand Image affects Customer Loyalty significantly.

The Influence of Brand Image on Customer Satisfaction

Brand Image has a direct influence on Customer Satisfaction. This is evidenced by the results of the original sample of 0.280 with a t-statistic of 2.230 which is a value greater than 1.96. Meanwhile, the p-value yields a number of 0.026 which meets the criteria less than 0.05. Therefore, the results of testing this hypothesis are said to be significant. So it can be concluded that Brand Image significantly affects Customer Satisfaction. This is in line with previous research conducted by Welsa, Cahyani, and Riyana (2022) entitled "The influence of experiental marketing and brand image on consumer loyalty with consumer satisfaction as an intervening variable". The study showed that Brand Image significantly affected Customer Satisfaction. Therefore, in addition to affecting Customer Loyalty, Brand Image also affects Customer Satisfaction. Meanwhile, the results of this study are different from research from Prawira and Setiawan (2021) which stated insignificant results.

The Influence of Service Quality on Customer Loyalty

Service Quality has no direct effect on customer loyalty. With an original sample value of -0.19 with a t-statistic of 1.311 which is a smaller number than 1.96. Then the p-value shows a value of 0.190 which is a number greater than 0.05. In this case, the results show that there is no significant influence between Service Quality and Customer Loyalty. This is contrary to the theory put forward by Agung Wicaksono (2022) that customer loyalty is influenced by service quality. This is also reinforced by Philip Kotler et al. (2016) that service quality is said to be a measure of consumer feelings about the services provided by the company. This research is also in contrast to research conducted by Singh et al. (2023), Purnamabroto, Susanti, and Cempena (2022), and Abed et al. (2022) where the study shows that Service Quality has a significant influence on Customer Loyalty.

The Effect of Service Quality on Customer Satisfaction

Service Quality has a significant influence on Customer Satisfaction. This is shown by the results of the original sample of 0.519 with a t-statistical value of 4.585 which means greater than 1.96. Then the p-value is 0.000 which is smaller than 0.05. Therefore, the results of this test are declared significant and accepted because they are in accordance with the existing criteria. The results of this study are in line with research conducted by Antara and Rastini (2022), Johnson and Karlay (2018), and Nigatu, Belete, and Habtie (2023). The study showed that Service Quality has a significant influence on Customer Satisfaction. Then research conducted by Ingemarson and Andersson (2022) and Ndayisenga and Tomoliyus (2019) states the opposite that service quality does not affect customer satisfaction.

The Effect of Customer Satisfaction on Customer Loyalty

Customer Satisfaction significantly affects Customer Loyalty. This is shown by the results of the original sample of 0.782 with a t-statistic of 8.661 which is greater than 1.96. The value of the p-value of 0.000 is smaller than 0.05. Therefore, it can be stated that Customer Satisfaction has a significant effect on Customer Loyalty. The results of this study are in line with the fact that the factor that forms customer loyalty in addition to brand image and service quality is customer satisfaction (Wicaksono, 2022). The previous research that is in line with the results of this study was carried out by Satornsantikul and Nuangjamnong (2022), Tjahjadi and Limakrisna (2022), and Sari, Daryanto, and Saptono (2018). In the study, it is said that Customer Satisfaction has a direct influence on Customer Loyalty.

The Influence of Brand Image on Customer Loyalty with Customer Satisfaction as a Mediation Variable

In order to answer the research question and also the hypothesis that customer satisfaction can act as a mediator between brand image and customer loyalty, research on how brand image affects customer loyalty by being mediated by customer satisfaction has been conducted. In this study, the test produced an original sample of 0.219 with a t-statistic of 1.824 which is a lower number than 1.96. Then the resulting p-value is 0.068 which is also a value greater than 0.05. So with these results, it can be stated that customer satisfaction is not successful in mediating the relationship between brand image and customer loyalty. Although brand image significantly affects customer loyalty directly, the results of the mediation test between the three variables prove that mediation is not successful. Then it can be concluded that brand image can affect customer loyalty without the need to be mediated by customer satisfaction.

The Effect of Service Quality on Customer Loyalty with Customer Satisfaction as a Mediation Variable

To answer the questions asked previously and answer the hypothesis in this study regarding customer satisfaction which has succeeded in becoming a mediator for the relationship between service quality and customer loyalty. After testing in this study, it was found that the results of the original sample was 0.405 with a t-statistic of 4.078 which was in accordance with the criteria, which was greater than 1.96. And there is also a p-value of 0.000 which is also in accordance with the criteria of the mediation test, which is smaller than 0.05. In this case, it can be concluded and stated that customer satisfaction has succeeded in becoming a mediator for the relationship between service quality and customer loyalty.

The results of this study are in line with previous research conducted by Agarwal and Dhingra (2023) and (Esmailpour et al., 2022). In the study, it was found that customer satisfaction successfully mediated the relationship between service quality and customer loyalty. Other studies have shown that customer satisfaction does not succeed in becoming a mediator, as evidenced by the research of Azizan and Yusr (2019). In this study, the relationship between service quality and customer loyalty has an indirect effect on the mediation role of customer satisfaction. This is because the results of the hypothesis test found that service quality does not have a significant effect on customer loyalty. However, customer satisfaction has managed to become a mediator for the relationship between the two. Thus, it can be concluded that scarlett whitening products can create a sense of loyalty from consumers through service quality that creates satisfaction.

 

CONCLUSION

The results of this study show that Brand Image has a significant effect on Customer Loyalty in Scarlett Whitening products. Every change in the brand image is stated to increase customer loyalty with a significance value that meets the criteria (< 0.05). This study shows that Service Quality does not have a significant effect on Customer Loyalty. This can be seen in the results of the significance test that was carried out not in accordance with the required criteria (> 0.05). The results of this study show that Brand Image has a significant influence on Customer Satisfaction. This is evidenced by the significance test value that is in accordance with the requirements (< 0.05). This study also shows that Service Quality has a significant effect on Customer Satisfaction. This is evidenced by the value of the hypothesis test results that are in accordance with the conditions (< 0.05). The results of the relationship between Customer Satisfaction and Customer Loyalty are stated to have a significant effect. With the value of the test results in accordance with the provisions (< 0.05), this significant result was declared.

The mediation role of Customer Satisfaction on the influence of Brand Image on Customer Loyalty shows an insignificant mediation role. This is shown by results that do not match the significance criteria of the mediation test. The mediation role of Customer Satisfaction on the influence of Service Quality on Customer Loyalty shows a significant mediation role. Customer Satsifaction has succeeded directly in connecting service quality with customer loyalty.

 

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Copyright holders:

Nor Nabila Syafikah, Nur Asnawi (2024)

First publication right:

AJEMB – American Journal of Economic and Management Business