The influence of service quality, product quality, price, and innovation on customer loyalty at satay restaurant with the customer satisfaction as an intervening variable

Abstract

Yogyakarta is one of the regions in Indonesia that has a fast-growing culinary industry. The growth in the number of restaurants present in Yogyakarta shows that the business sector has experienced growth. One of the food businesses that is taking part in feeling the tight competition today is the satay restaurants business. Satay is a traditional food that has a prominent level of popularity in Indonesia and even in the world. Yogyakarta already has the most variety of satay with a total of twenty-one types of satays and even every year it continues to grow. As a form of food business, this satay restaurant needs to have a competitive advantage to survive and win the business competition. One way to create a competitive advantage is to apply service quality, product quality, price, and innovation properly to satisfy customers. The study aims to decide the effect of service quality, product quality, price, and innovation on customer satisfaction at satay restaurants in Yogyakarta. The analytical method used in this study is Structural Equation Modeling (SEM) which was conducted with the help of SmartPLS software. The population in this study were all individual customers who had visited a satay restaurant in the province of Daerah Istimewa Yogyakarta with a total sample of 211 respondents. The result of the study shows that service quality, product quality, price, and innovation have a positive and significant impact on customer satisfaction at Satay restaurant in Yogyakarta.