The Effect of Product Quality and Customer Value on Satisfaction and Loyalty

Abstract

This study aims to analyze the effect of product quality and customer value on satisfaction and loyalty. Materials and methods: The population used in this study is adult customers who have consumed generic drugs in Semarang City - Indonesia. The questionnaires used are answered by 147 customers who had made a purchase transaction. Results: The results of the study indicate that product quality has a positive and significant effect on customer value, satisfaction, and loyalty. Customer value has a positive and significant effect on satisfaction but not on customer loyalty. Customer satisfaction has a positive and significant effect on customer loyalty. Conclusion: Mediation test result reveals that customer satisfaction mediates the relationship between customer value and customer loyalty.