The Effect of Product Quality, Service Quality on Customer Loyalty Mediated Satisfaction for Grabfood Customers in Jabodetabek

  • Wahno Sahid Universitas Esa Unggul, Indonesia
  • Feryyal Abadi Universitas Esa Unggul, Indonesia
Keywords: Service Quality, Product Quality, Customer Satisfaction, Customer Loyalty.

Abstract

Customer loyalty is a crucial factor in an organization's growth and financial performance. This study aims to investigate how Product Quality influences customer loyalty, service quality, and customer happiness among Grab Food’s customers while making purchases. The population for this study consists of all online Grab food consumers in Indonesia, with a sample size of 173 online Grab food clients. The research used Structural Equation Models (SEM) for data analysis.). Research shows that both product quality and service quality have a significant influence on Grab Food’s customer loyalty in the Jabodetabek area. This shows that aspects such as food taste, ease of ordering, and speed of delivery contribute significantly to customers' decisions to continue using Grab Food services repeatedly. Mediating Role of Customer Satisfaction: The research results also highlight the important role of customer satisfaction as a mediator between product quality/service and customer loyalty. Important managerial implications for Grab Food. highlighting the importance of Grab Food’s focus on improving their Product Quality and services. Companies can carry out a thorough evaluation of the production process and service provision to ensure that the products and services provided meet customer expectations.

 

References

Adhikari, A. (2018). Strategic Marketing Issues in Emerging Markets. Springer.

Aljumah, A., Nuseir, M. T., & Islam, A. (2020). Impacts of service quality, satisfaction and trust on the loyalty of foreign patients in Malaysian medical tourism. International Journal of Innovation, Creativity and Change, 11(2), 451–467.

Ariff, M. S. M., Yun, L. O., Zakuan, N., & Ismail, K. (2013). The Impacts of Service Quality and Customer Satisfaction on Customer Loyalty in Internet Banking. Procedia - Social and Behavioral Sciences, 81, 469–473. https://doi.org/10.1016/j.sbspro.2013.06.462

Bagi, I., & Mobile, P. (2023). Pengaruh E-Service Quality Dan E-Trust. 6(1), 80–96.

Bahadur, W., Aziz, S., & Zulfiqar, S. (2018). Effect of employee empathy on customer satisfaction and loyalty during employee–customer interactions: The mediating role of customer affective commitment and perceived service quality. Cogent Business and Management, 5(1), 1–21. https://doi.org/10.1080/23311975.2018.1491780

Butarbutar, N., Syah, T. Y. R., & Anindita, R. (2019). the Effect of Service Quality on Customer Satisfaction At Pt Multi Rentalindo: a Case Study of Employees in Kawan Lama West Jakarta. Russian Journal of Agricultural and Socio-Economic Sciences, 88(4), 117–125. https://doi.org/10.18551/rjoas.2019-04.16

Chetthamrongchai et al. (2019). The mediating role of pharmacy engagement on the relationship of perceived service quality, customer perception, price strategy with pharmacy customer devotion. Systematic Reviews in Pharmacy, 10(2), 120–129.

Chiguvi, D., & Guruwo, P. T. (2020). Impact of Customer Satisfaction on Customer Loyalty in Upscale Ethnic Restaurants. Theoretical & Applied Science, 86(06), 372–375. https://doi.org/10.15863/tas.2020.06.86.71

Giovanis, A. N., & Athanasopoulou, P. (2018). Consumer-brand relationships and brand loyalty in technology-mediated services. Journal of Retailing and Consumer Services, 40(February 2016), 287–294. https://doi.org/10.1016/j.jretconser.2017.03.003

Gopi, B., & Samat, N. (2020). The influence of food trucks’ service quality on customer satisfaction and its impact on customer loyalty. British Food Journal, 122(10), 3213–3226. https://doi.org/10.1108/BFJ-02-2020-0110

Hair, et al. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Sage Publications, 2nd Editio.

Hapuarachchi, C., & Samarakoon, A. (2020). Drivers Affecting Online Banking Usage of Private Commercial Banks in Sri Lanka. Asian Journal of Economics, Business and Accounting, December, 1–10. https://doi.org/10.9734/ajeba/2020/v20i130314

Harazneh, I., Adaileh, M. J., Thbeitat, A., Afaneh, S., Khanfar, S., Harasis, A. A., & Elrehail, H. (2020). The impact of quality of services and satisfaction on customer loyalty: The moderate role of switching costs. Management Science Letters, 10(8), 1843–1856. https://doi.org/10.5267/j.msl.2019.12.034

Hussein, A. S. (2015). Penelitian Bisnis dan Manajemen Menggunakan Partial Least Squares dengan SmartPLS 3.0. Universitas Brawijaya, 1, 1–19. https://doi.org/10.1023/A:1023202519395

Jasni, W. N. F. wan, Jamaluddin, M. R., & Hanafiah, M. H. (2020). Online Travel Agencies (OTAs) E-Service Quality, Brand Image, Customer Satisfaction and Loyalty. Journal of Tourism, Hospitality and Culinary Arts, 12(2), 96–111.

Kaya, B., Behravesh, E., Abubakar, A. M., Kaya, O. S., & Orús, C. (2019). The Moderating Role of Website Familiarity in the Relationships Between e-Service Quality, e-Satisfaction and e-Loyalty. Journal of Internet Commerce, 18(4), 369–394. https://doi.org/10.1080/15332861.2019.1668658

Konuk. (2019). The influence of perceived food quality, price fairness, perceived value and satisfaction on customers’ revisit and word-of-mouth intentions towards organic food restaurants. Journal of Retailing and Consumer Services, 5(10), 103– 110.

Kotler, P., Armstrong, G., Harris, L., & C. He, H. (2020). Principles of Marketing Eighth Europe an Edition (eighth). Pearson. www.pearson.com/uk

Kotler, P., Armstrong, G., & Opresnik, M. O. (2019). Principles of Marketing (17 Global). Pearson Education Limited.

Kotler, P., & Keller, K. L. (2016). A Framework for Marketing Management Global Edition (sixth Edit).

Le, D. N., Nguyen, H. T., & Hoang Truong, P. (2020). Port logistics service quality and customer satisfaction: Empirical evidence from Vietnam. Asian Journal of Shipping and Logistics, 36(2), 89–103. https://doi.org/10.1016/j.ajsl.2019.10.003

Le, Q. H., Nguyen, T. X. T., & Le, T. T. T. (2020). Customer Satisfaction in Hotel Services: A Case Study of Thanh Hoa Province, Vietnam. Journal of Asian Finance, Economics and Business, 7(10), 919–928. https://doi.org/10.13106/jafeb.2020.vol7.no10.919

Mahoney, L. M., & Tang, T. (2016). Strategic Social Media From Marketing To Social Change. In Strategic Social Media. https://search.proquest.com/docview/2132078655?accountid=17242

Mahsyar, S., & Surapati, U. (2020). Effect of Service Quality and Product Quality on Customer Satisfaction and Loyalty. International Journal of Economics, Business and Accounting Research (IJEBAR), 4(1), 204–211.

Ngo, M. V., & Nguyen, H. H. (2016). The Relationship between Service Quality, Customer Satisfaction and Customer Loyalty: An Investigation in Vietnamese Retail Banking Sector. Journal of Competitiveness, 8(2), 103–116. https://doi.org/10.7441/joc.2016.02.08

Opata et al. (2021). The impact of value co-creation on satisfaction and loyalty: The moderating effect of price fairness (empirical study of automobile customers in Ghana. Total Quality Management & Business Excellence, 32(11), 1167–1181.

Parry et al. (2021). The Relationships among Dimensions of Perceived Risk and the Switching Intentions of Pioneer Adopters in Japan. Journal of International Consumer Marketing, 33(1), 38–57.

Paulose, D., & Shakeel, A. (2021). Perceived Experience, Perceived Value and Customer Satisfaction as Antecedents to Loyalty among Hotel Guests. Journal of Quality Assurance in Hospitality and Tourism, 00(00), 1–35. https://doi.org/10.1080/1528008X.2021.1884930

Pemayun, T. G. A. W. P., & Seminari, N. K. (2020). The Role Customer Satisfaction Mediates The Effect of Product Quality On Customer Loyalty. American Journal of Humanities and Social Sciences Research (AJHSSR), 4(6), 54–62.

Penelitian, J., Sosial, I., Ajhssr, A., Penelitian, J., Sosial, I., Ajhssr, A., Suleman, N. R., Madjid, R., Salemaku, M. F., Manajemen, J., Ekonomi, F., Oleo, U. H., Manajemen, J., Ekonomi, F., Oleo, U. H., Manajemen, J., Ekonomi, F., & Oleo, U. H. (2022). Peran E-Satisfaction Dalam Memediasi Pengaruh E-Servqual Dan E-Trust Terhadap E-Loyalty Pada M-Banking BRI Pengguna Aplikasi yang digunakan adalah Partial Least Square-Path Modeling Reflective Multidimensional Construct. 205–214.

Pooya, A., Abed Khorasani, M., & Gholamian Ghouzhdi, S. (2020). Investigating the effect of perceived quality of self-service banking on customer satisfaction. International Journal of Islamic and Middle Eastern Finance and Management, 13(2), 263–280. https://doi.org/10.1108/IMEFM-12-2018-0440

Rodríguez, P. G., Villarreal, R., Valiño, P. C., & Blozis, S. (2020). A PLS-SEM approach to understanding E-SQ, E-Satisfaction and E-Loyalty for fashion E-Retailers in Spain. Journal of Retailing and Consumer Services, 57(June). https://doi.org/10.1016/j.jretconser.2020.102201

Rua, S., Saldanha, E. D. S., & Amaral, A. M. (2020). Examining the Relationships among Product Quality, Customer Satisfaction and Loyalty in the Bamboo Institute, Dili, Timor-Leste. Timor Leste Journal of Business and Management, 2(1), 33–44. https://doi.org/10.51703/bm.v2i2.28

Saueressig, M. V., Larentis, F., & Giacomello, C. P. (2021). Perceived quality and loyalty in service operations: A study in banking segment’s corporate person division. Gestao e Producao, 28(1), 1–22. https://doi.org/10.1590/1806-9649.2020V28E4934

Shinta, S., Syah, T. Y. R. and, & Negoro, D. A. (2020). Determinants of Customer Satisfaction and Customer Loyalty Over City Market Citra Raya. Journal of Multidisciplinary Academic, 4(2), 94–98. https://www.kemalapublisher.com/index.php/JoMA/article/view/438/440

Slack, N., Singh, G., & Sharma, S. (2020). The effect of supermarket service quality dimensions and customer satisfaction on customer loyalty and disloyalty dimensions. International Journal of Quality and Service Sciences, 12(3), 297–318. https://doi.org/10.1108/IJQSS-10-2019-0114

Stringam & Gerdes. (2019). Service Gap in Hotel Website Load Performance. International Hospitality Review, 16–29.

Supriyanto, A., Wiyono, B. B., & Burhanuddin, B. (2021). Effects of service quality and customer satisfaction on the loyalty of bank customers. Cogent Business and Management, 8(1). https://doi.org/10.1080/23311975.2021.1937847

Susanti, N., & Jasmani, J. (2020). The Influence of Product Quality and Service Quality on Customer Satisfaction at Mitra 10 in Depok. Jurnal Office, 5(2), 75. https://doi.org/10.26858/jo.v5i2.13379

Suttikun, C., & Meeprom, S. (2021). Examining the effect of perceived quality of authentic souvenir product, perceived value, and satisfaction on customer loyalty. Cogent Business and Management, 8(1). https://doi.org/10.1080/23311975.2021.1976468

Trabelsi-Zoghlami, A., Berraies, S., & Ben Yahia, K. (2020). Service quality in a mobile-banking-applications context: do users’ age and gender matter? Total Quality Management and Business Excellence, 31(15–16), 1639–1668. https://doi.org/10.1080/14783363.2018.1492874

Tran, V. D., Vo, T. N. L., & Dinh, T. Q. (2020). The relationship between brand authenticity, brand equity and customer satisfaction. Journal of Asian Finance, Economics and Business, 7(4), 213–221. https://doi.org/10.13106/JAFEB.2020.VOL7.NO4.213

Uzir, M. U. H., Al Halbusi, H., Thurasamy, R., Thiam Hock, R. L., Aljaberi, M. A., Hasan, N., & Hamid, M. (2021). The effects of service quality, perceived value and trust in-home delivery service personnel on customer satisfaction: Evidence from a developing country. Journal of Retailing and Consumer Services, 63(April), 102721. https://doi.org/10.1016/j.jretconser.2021.102721

Venkatakrishnan, J., Alagiriswamy, R., & Parayitam, S. (2023). Web design and trust as moderators in the relationship between e-service quality, customer satisfaction and customer loyalty. The TQM Journal, 1–30. https://doi.org/10.1108/TQM-10-2022-0298

Vu, Q. H., & Tran, V.-D. (2019). Inspecting the relationship among E-service quality, E-trust, E-customer satisfaction and behavioural intentions of online shopping customers. Econstor, 24(3), 29–42.

Wahyuni, T., Jul, ;, & Fadli, A. (2021). Pengaruh Sikap, Norma Subjektif, Dan Persepsi Kendali Perilaku Terhadap Niat Beli Ulang Produk Kosmetik Halal. Jurnal Akuntansi Dan Manajemen Esa Unggul (JAME), 9(1), 22–38.

Published
2024-06-06
How to Cite
Sahid, W., & Abadi, F. (2024). The Effect of Product Quality, Service Quality on Customer Loyalty Mediated Satisfaction for Grabfood Customers in Jabodetabek. International Journal of Science and Society, 6(2), 545-565. https://doi.org/10.54783/ijsoc.v6i2.1181