Product Quality and Customer Satisfaction and Their Effect On Consumer Loyalty

International Journal of Social Science (IJSS)
Vol.1 No.2 August 2021, pp: 69-78

ISSN: 2798-3463 (Printed) | 2798-4079 (Online)
DOI: https://doi.org/10.53625/ijss.v1i2.138 69
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PRODUCT QUALITY AND CUSTOMER SATISFACTION AND
THEIR EFFECT ON CONSUMER LOYALTY
By
Ernest Grace1, Rosita Manawari Girsang2, Sudung Simatupang3,
Vivi Candra4, Novelyn Sidabutar5
1,3,4,5
Sekolah Tinggi Ilmu Ekonomi Sultan Agung
2
Fakultas Ekonomi/ Universitas Simalungun
Email: [email protected], [email protected], [email protected],
4
[email protected],[email protected]
Article Info ABSTRACT
Article history: The results of this study are to see whether the influence of product quality
Received May 8, 2021 and customer satisfaction on consumer loyalty is found at Mandiri Jaya Mobil
Revised June 27, 2021 Pematangsiantar whose business is engaged in buying and selling new and
Accepted July 23, 2021 used cars, with a total of 130 consumers and using validity, reliability,
normality test, and analysis instruments. the coefficient of determination, as
well as simple and multiple regression equations as well as the t hypothesis
Keywords:
test and F test. Then a conclusion is generated that for the partial hypothesis
Product Quality
answer it is found that the influence of product quality variables has a positive
Customer Satisfaction
and significant effect on consumer loyalty then consumer satisfaction has a
Consumer Loyalty
positive and significant effect on consumer loyalty and for the simultaneous
test to produce answers to the hypothesis that simultaneously there is a
positive and significant influence on product quality and consumer
satisfaction on consumer loyalty. This shows that when product quality is
getting better, and satisfaction is achieved, loyalty will persist.
This is an open access article under the CC BY-SA license.
Corresponding Author:
Ernest Grace
Sekolah Tinggi Ilmu Ekonomi Sultan Agung
Email: [email protected]
1. INTRODUCTION
The marketing model in the current era of globalization is the key to the success process, to be able to achieve
this success process requires the ability to do good marketing with the aim of making the company profit, as well as in
the marketing of automotive products. The development of the industry in the automotive business world today is so
rapid, this happens because of the influence of the attractive growth of the automotive industry and the positive growth
results in the life of the middle class in the last decade(Hidayah, 2019) and the automotive industry is one of the sectors
that produces a form of contribution significant for the economy on a national scale (Sirait, 2020) and these results
require business people in the automotive industry to strive to maintain the viability of their business with all the efforts
and strengths they have, in other words entrepreneurs are required to attract consumers' interest and maintain it as a
consumers who are loyal to the company's products (Saputra, 2016). Through marketing activities whose purpose is
to influence consumers to want to buy their products with the achievement of consumer loyalty. The ability provided
by the business sector can at least maintain the loyalty of its consumers, so that the ability to dominate the market can
be maintained later according to (Aristyo, 2019) it is necessary to have a strategy in maintaining consumer loyalty.
Consumer loyalty can occur because of the commitment from customers to a brand, store, supplier through a
positive attitude and a reflection in repeated purchasing activities, because according to (Sodexo, 2019) customer
loyalty is a very important asset for a company and how to get it is also difficult. because the emergence of consumer
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70 International Journal of Social Science (IJSS)
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loyalty can arise from 2 aspects, namely loyalty from brands and stores (Putri, 2017). Loyalty can be achieved not only
with the 4 P's marketing mix, namely: product, price, location and promotion but also with people, the process, the
programs carried out and performance (Kotler and Keller, 2016)
Mandiri Jaya Mobil Pematangsiantar also hopes for the emergence of consumer loyalty. which is engaged in
the automotive sector, for its business activities buying and selling used and new cars with various types such as
minibuses, pick ups, to trucks. As a result of the increasingly fierce level of competition between similar competitors,
this business has made adjustments to its marketing strategy to answer the challenge of consumer loyalty. To maintain
customer loyalty, Mandiri Jaya Mobil implements the stages of the process: making purchases continuously then
buying between product/service lines, referring products to others, and showing immunity to similar competitors
(Griffin, 2005). However, the problem with the level of consumer loyalty is still said to be low due to continuous
purchases because there are consumers who only buy a car once. To buy between product/service lines, the lowest
results are obtained. This is due to the fact that there are still consumers who do not use the services offered, such as
car salon services and vehicle tax management, then referencing products to others and getting low results because
there are still consumers who do not want to invite friends or his family to buy a car in this place, and to show immunity
to competitors is still low because there are still consumers who are not consistent in buying cars at Mandiri Jaya Mobil
Seeing this, it is necessary to increase consumer loyalty with various factors that influence it, one of which is
product quality, this is in line with research (Permatasari, 2014) that one way to increase consumer loyalty is to increase
product quality and true loyalty lies with consumers, because quality the product is the main input (Lovelock, Wirtz
and Mussry, 2016)() meaning that if the quality of the product is appropriate then consumer loyalty will also increase
and vice versa (Aprileny and Regar, 2018). Product quality is measured based on performance, features, reliability,
conformance to specifications, durability, serviceability, aesthetics and quality (Tjiptono and Chandra, 2011)but the
phenomenon found that for durability is that it is still found selling cars with years low so that the durability of the car
cannot be guaranteed. In aesthetics, it still provides products that are still limited in color alternatives so that it makes
it difficult for prospective consumers to choose the color they want, because they still focus on existing stock and the
dimensions of ease of repair (service ability) related to the ease of repairing vehicles and services provided by Mandiri
Jaya Mobil Pematangsiantar .
In addition to product quality, the satisfaction factor of consumers can affect consumer loyalty, in line with
research (Widjojo, 2013) meaning that when consumer satisfaction increases, the consumer loyalty factor will increase
(Minarti and Segoro, 2014) where one aspect that affects loyalty is satisfaction. that occurs from the comparison
between expectations before making a purchase with expectations of performance (Zikmund, 2003). Consumer
satisfaction found at the research location that the price of the product is still there are consumers who feel less satisfied
because the price level offered by the party is still too high. For the convenience of the procedure, consumers are
satisfied because it is easy to apply for a car loan and assist in the credit process until it is approved by the leasing
party. While on the dimension of consumer support, employees are less enthusiastic in receiving any complaints from
consumers and there are still some complaints that cannot be resolved immediately.
Paying attention to the problems above, it becomes the basis of the research objective to determine the effect
of product quality and consumer satisfaction on consumer loyalty.
2. LITERATURE REVIEW
Product quality
Product quality is the main focus which is a very important policy in increasing the competitiveness of products
in order to provide satisfaction to consumers (Raharjo, 2013) and product quality has a close relationship with the
product's ability to carry out its functions, including overall product, reliability, accuracy, easy to operate and repair as
well as attributes that have other values (Kotler and Amstrong, 2012), product quality reflects all dimensions that
generate benefits for customers (Tjiptono, 2015). The products offered by business entities will be different and must
have characteristics that differ from those of their competitors, even though the types have similarities (Putro, Semuel
and Karina, 2014). This means that the quality of a product will determine whether or not consumers are satisfied with
the purchase and use of the product (Hidayat, 2009).
Consumer Satisfaction
Consumer satisfaction arises from performance expectations in meeting customer satisfaction needs, if they feel
satisfied then it results from appropriate performance expectations, if performance exceeds expectations, customers
will be more satisfied (Setyaji and Ngatno, 2016) and consumer satisfaction can be measured, so that the company
have the ability to see the level of consumer satisfaction with strategies that seek to create consumer satisfaction(Wono,
Angela and Reinal, 2020) in satisfaction theory there are 2 models, namely functional and psychological satisfaction
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where functional satisfaction occurs when the product is in line with expectations, while psychological satisfaction is
felt in the form of not have a form but can feel satisfaction (Kaihatu, Daengs and Indrianto, 2015).
Consumer Loyalty
(Griffin, 2005) (Griffin, 2005) explains that loyalty arises from buyer behavior, where customer satisfaction
can be accepted by consumers when the company provides real loyalty (Aryani and Rosinta, 2010) The status pattern
of consumer loyalty is divided into 4 groups, namely: consumers who are very loyal, somewhat loyal, switching and
diverting loyalty Saputra, 2016), loyalty refers to feelings, or emotional bonds, which make a person bind himself to
an organization or brand (Saputra, 2016) (Faranisa, Sudjiono and Girahani, 2018).
Thinking Framework
Product
H1
quality
Consumer
H2 Loyalty
Consumer
Satisfaction
H3
Figure 1. Thinking Framework

Hypothesis
The hypotheses that can be given in this study are:
1. H1 : That product quality has a partial influence on consumer loyalty Mandiri Jaya Mobil Pematangsiantar.
2. H2 : That consumer satisfaction has a partial influence on consumer loyalty Mandiri Jaya Mobil
Pematangsiantar.
3. H3 : That product quality and consumer satisfaction have a simultaneous influence on consumer loyalty
Mandiri Jaya Mobil Pematangsiantar.
3. RESEARCH METHODS
The research location is on Jalan Jendral Ahmad Yani No. 73, with a Trading Business License (SIUP) No.
503/68/SIUP-KECIL/DPMPTSP/11/2018 and a Company Registration Certificate (TDP) No. 02.05.5.45.00170. with
the business name Mandiri Jaya Mobil Pematangsiantar, it is engaged in the sale and purchase of new and used cars
and the number of consumers who have researched 130. The analytical tool used is to test the validity by testing the
validity by comparing the value of the correlation coefficient > critical = 0.30 (Barker, Pistrang and Elliott, 2016) then
reliability by comparing the minimum reliability level of Cronbach's alpha > 0.70 (Eisingerich and Rubera, 2010); then
the normality test is carried out by comparing the asymp values. sig. (2-tailed) > 0.05, the coefficient of determination
is used to see how much the independent variable is able to explain the dependent variable. Then using simple and
multiple linear equations with the aim of seeing the effect of the independent variable on the dependent variable and
using the t test to answer the hypothesis partially and the F test to answer the simultaneous test.
4. RESULTS AND DISCUSSION

Validity and Reliability Test
Validity test
The usefulness of this validity test is to determine the accuracy and accuracy of a measuring instrument in measuring
the measured data. The results of the validity test of this study are shown in the following table.
Table 1. Validity Test
Corrected Item-
Variable Criteria
Total Correlation tcritical
Product quality 0,563 0,30 Valid
Consumer Satisfaction 0,667 0,30 Valid
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Consumer Loyalty 0,617 0,30 Valid
. Source: Data processing, 2021
The results from table 1 can be explained that the three research variables, product quality, customer
satisfaction and customer loyalty are declared to have valid criteria, this is because they are in accordance with the
provisions that the correlation value of arithmetic > from critical 0.30.
Reliability Test
The usefulness of the reliability test is to determine the reliability of the questionnaire items conducted in the study.
The results of the reliability test of this study can be seen in the following table.
Table 2. Reliability Test
Level
Variable Cronbach's Alpha Criteria
Reliability
Product Quality 0,899 0,70 Reliability
Consumer satisfaction 0,886 0,70 Reliability
Consumer Loyalty 0,889 0,70 Reliability
Source: Data processing, 2021
Table 2 shows the results of reliability testing with the statement that all research variables namely product
quality, customer satisfaction and consumer loyalty that the value of Cronbach's alpha > from the reliability level of
0.70, thus the research variable is declared reliable or reliable.
Normality
The purpose of the normality test is to assess the distribution of data that has a normal distribution or not. The
results of the normality test can be seen in the following table.
Table 3. Normality Test
One-Sample Kolmogorov-Smirnov Test
Consumer Consumer
/Product Quality
Satisfaction Loyalty
N 130 130 130
Normal Mean 65,56 31,37 42,35
Parametersa,b Std. Deviation 10,717 7,024 8,402
Most Extreme Absolute ,107 ,099 ,088
Differences Positive ,052 ,049 ,060
Negative -,107 -,099 -,088
Kolmogorov-Smirnov Z 1,223 1,129 1,004
Asymp. Sig. (2-tailed) ,101 ,156 ,266
Table 3 shows the results that the value of asymp. sig. (2-tailed) each research variable of product quality,
customer satisfaction and customer loyalty is normally distributed with reference to the asymp value. sig. (2-tailed) >
0.05, where for product quality variable the value is 0.101, customer satisfaction variable is 0.158 and consumer loyalty
is 0.266.
Coefficient of Determination.
For the analysis of the coefficient of determination to see the suitability of a relationship form of the
independent variable in explaining the dependent variable. To clarify the results can be seen in the following table.
Table 4. Analysis of the Coefficient of Determination
Adjusted R Std. Error of the

Model R R Square Square Estimate
1 .813a ,661 ,656 4,930
Table 4 shows the results that the R Square value of the research is 0.661, which means that the ability of the
independent variable to product quality, consumer satisfaction in explaining the independent variable of consumer
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loyalty is 66% while the remaining 34% are not discussed in this study such as product design, price. and so on, while
the correlation value of R shows a value of 81% in the sense that the correlation is strong.
Multiple Linear Regression
Multiple linear aims to determine the effect of two independent variables, namely product quality, consumer
satisfaction on the dependent variable, in this case consumer loyalty. The results of multiple regression testing can be
seen in the table below.
Table 5. Multiple Linear Regression
Coefficientsa
Model Standardized
Unstandardized Coefficients
Coefficients Sig
B Std. Error Beta
1 (Constant) 2,026 2,693 ,453
Product Quality ,454 ,062 ,580 ,000
Consumer Satisfaction ,336 ,095 ,281 ,001
a. Dependent Variable: Consumer Loyalty
The results of the equation in table 5 show the value of Y = 2.026 + 0.454 X1 + 0.336 X2, which means that if the
constant value of product quality increases by one (1) unit, then consumer loyalty will increase by 0.454 and a
significant value of product quality 0.00 < 0, 05, as well as when consumer satisfaction increases by one (1) unit, then
loyalty also increases by 0.336 and a significant value of 0.001 <0.05. The conclusion is that product quality and
consumer satisfaction have a positive and significant effect on consumer loyalty, and the biggest influence on consumer
loyalty is the product quality variable. Because consumers will feel satisfied or happy and continue to repurchase when
the product purchased is in accordance with expectations, the wishes that have been conveyed about the product are
due to the nature of consumers today having a tendency to choose products that have features with better advantages.
Hypothesis Testing
Partial Test (t Test)
Partial test was conducted to see the effect of each independent variable on the dependent variable. To clarify
the results of the partial test hypothesis, see the table below.
H1 : There is an Influence of Product Quality on Consumer Loyalty
Table 6. Partial Test 1
Model
t Sig.
1 (Constant) ,752 ,453

Product quality 7,319 ,000
The results from table 6 show that the tcount value of product quality is 7,319, with reference to the calculation
of ttable df = (n-k) = 1,978. The conclusion is that the product quality variable tcount 7,319 > 1,978 and significant
product quality count 0.000 <0.05, which means accepting the H1 hypothesis that there is an effect of product quality
on consumer loyalty.
The quality of a product is highly expected by the company in maintaining its business life, with good product quality,
consumers who come to buy the product are satisfied and will give a form of loyalty from themselves not to switch to
other products, because the conditions are very difficult for the company at this time. is to create good product quality
because many competitors provide good product quality as well (Rahayu and Haryanto, 2017). For this reason, loyalty
from consumers is needed for companies, because retaining consumers means being able to maintain the viability of
the company (Wulandari, Sri Wardiningsih and Widajanti, 2016); because consumers will like products that offer
quality and other things that are different from other products (Wahyudien, Widiartanto and Listyorini, 2015). Thus,
product quality can affect consumer loyalty (Raharjo, 2013); (Zuhri, 2019), meaning that when the value of product
quality increases or gets better, consumer loyalty also increases (Permatasari, 2014); (Jesika, Juniarsih and Astika,
2020). However, research differs (Hidayat, 2009)) that the better the quality of the product does not necessarily make
consumers have loyalty and (Wantara and Tambrin, 2019) which states that the quality of the product has no effect on
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loyalty. This can happen because the consumer has previously been disappointed when buying a product in the previous
time, after the company has made quality improvements, consumers still have trauma from past events.
H2 : There is an Influence of Consumer Satisfaction on Consumer Loyalty
Table 7. Partial Test 2
Model
t Sig.
1 (Constant) ,752 ,453

Consumer Satisfaction 3,543 ,001
. Source: Data processing, 2021
The results from table 7 show that the tcount value of consumer satisfaction is 3.543 with reference to the
calculation of ttable df = (n-k) = 1.978. The conclusion is that the tcount of the consumer satisfaction variable is 3.543
> 1.978 and the significance of the calculated consumer satisfaction is 0.001 < 0.05, which means accepting the H2
hypothesis that there is an influence of consumer satisfaction on consumer loyalty.
Satisfying consumer needs becomes the desire of a company to be a factor in the company's survival and satisfaction
of consumer needs can be a benchmark of excellence in facing competition. Consumers who are satisfied with the
product or service tend to repurchase the product or service at the time of the same need in the future (Riadi, 2013);
and can increase the loyalty of consumers to recommend to other consumers to come to make a purchase (Widjojo,
2013), because the aspect that affects loyalty is satisfaction which is a comparison between expectations before making
a purchase and the performance that has been suggested (Zikmund, 2003). This means that when consumers are
satisfied with the products, prices, services of a company, it will affect the loyalty of these consumers and these
consumers will remain loyal to use the products of the company, this is in line with research (Amalia, 2013); (Molle,
Mandey and Kojo, 2019); (Minarti and Segoro, 2014), but consumer satisfaction may not have a significant effect on
consumer loyalty (Faranisa, Sudjiono and Girahani, 2018) this can occur when consumer satisfaction when it comes
to buying products or services, the results of these products or services does not produce benefits for these consumers,
causing disappointment for consumers and causing consumers to switch to other companies.
Simultaneous Test (F Test)
Simultaneous test is used to find out how all of the independent variables affect the independent variables and
the regression model has a significant value or not (Hidayat, 2013). The test results of table F can be seen in the
following table.
H3 : Effect of Product Quality and Consumer Satisfaction on Consumer Loyalty.

Tabel 8. Uji Simultan
Table 8. Simultaneous Test
Model F Sig.
1 Regression 123,883 .000b
Residual
Total
Table 8 shows the results for simultaneous hypothesis testing with reference Fcount > Ftable. With consumers
as research respondents the number is 130. For Fcount has a value of 123,883 and a value of Ftable (k:nk) where k is
the independent variable of product quality and consumer satisfaction and n is the number of respondents as many as
130, then the results for Ftable are (2:130 – 2 ) = (2:128) = 3.07. Based on table 8, it can be concluded that the Fcount
123,883 > Ftable 3.07 and the significance value 0.000 <0.05, as the basis for the simultaneous test decision, the H3
hypothesis is accepted that there is an effect of product quality and consumer satisfaction on consumer loyalty
simultaneously.
Every company always wants to produce products that have good quality with the aim of being able to
compete with other companies, and it should be noted that product quality is not seen from the company's view but
from the perspective of the customers (Razak, Nirwanto and Triatmanto, 2016); consumer satisfaction can be in the
form of feeling happy or disappointed with product performance as expected (Syafarudin, 2021); then consumer
satisfaction is also expected by the company in order to create a harmonious relationship for the basis of being a
repurchase to create loyalty (De Ruyter, Wetzels and Bloemer, 1998) in other words satisfaction can be associated
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with loyalty (Waari, 2018)( Product quality and customer satisfaction have a close relationship because together they
are able to provide benefits for the company, the consistency of a product or service quality can contribute to the
company's success based on the satisfaction of its consumers (Sitanggang, Sinulingga and Fachruddin, 2019). This
means that product quality and consumer satisfaction have an influence on the loyalty of consumers who come to buy
products or services from the company, this is in line with research (Rua, Saldanha and Amaral, 2020); (Ali et al.,
2020); If product quality and satisfaction are achieved for a consumer, it will result in good loyalty and loyalty from
these consumers.
4. CONCLUSIONS AND SUGGESTIONS

The conclusion obtained from the results of this study that product quality and consumer satisfaction have a
positive and significant effect either partially or simultaneously on consumer loyalty Mandiri Jaya Mobil
Pematangsiantar. This shows that the quality of a product is able to provide confidence for consumers because
consumers today really want products that have good quality, are not easily damaged, as well as if consumers are
satisfied it will produce a positive impression for consumer loyalty, because satisfied consumers will definitely come
back to buy another time.
The company should always maintain the quality of the products and services it produces, it is very useful for
the survival of the company to further strive optimally to produce consumers who have high loyalty while maintaining
what is the company's advantage.
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Vol.1 No.2 August 2021, pp: 69-78

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Figure 1. Thinking Framework

4. RESULTS AND DISCUSSION

Adjusted R Std. Error of the

1 (Constant) ,752 ,453

1 (Constant) ,752 ,453

H3 : Effect of Product Quality and Consumer Satisfaction on Consumer Loyalty.

4. CONCLUSIONS AND SUGGESTIONS

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