THE EFFECT OF PRICE AND PROMOTION ON CUSTOMER LOYALTY MIXUE WITH CUSTOMER SATISFACTION AS A MEDIATION VARIABLE: A STUDY IN DENPASAR CITY AND BADUNG REGENCY

Abstract

Loyal customers are one of the keys to the success of a company or service provider in order to maintain its existence among competitors. There are several factors that can affect customer loyalty, namely: price, promotion, and customer satisfaction. This study aims to determine the impact of price and promotion on customer loyalty Mixue with customer satisfaction as a mediating variable in the city of Denpasar and Badung regency, Bali province. This type of research is associative causal relationship. The sample is 128 (one hundred and twenty eight) respondents and is determined using the Non-Probability Sampling technique, namely purposive sampling. The data is in the form of primary data and collected using a questionnaire. The analytical method used is the Partial Least Square (PLS) based Structural Equation Model (SEM). The results of the analysis show that prices and promotions have a positive and significant effect on customer satisfaction and customer loyalty. Customer satisfaction has a positive and significant effect on customer loyalty. Customer satisfaction mediates partially between price and promotion on customer loyalty. This research is expected to be taken into consideration by company management in determining policies and formulating marketing strategies in order to maintain and increase customer loyalty. Price and promotion are determining factors of customer loyalty. Therefore, the company's management needs to maintain the set price and increase the quantity and quality of promotions.

Keywords

• prices
• promotions
• customer satisfaction
• customer loyalty