The Effect of Product Quality and Price Fairness through Customer Loyalty on Local Skincare in Indonesia

Abstract

Objective - This study discusses the emergence of various local skincare companies that manufacture high-quality products at a fair price and have successfully attracted customer loyalty through their customer engagement. This paper aims to identify the effect of Product Quality and Price Fairness on Customer Loyalty and Customer Engagement as intervening variables in local skincare products. Methodology/Technique - This study used quantitative methods. The data collection technique is questionnaires distributed to 171 skincare users. All the data is processed with Path Analysis using double-multiple linear regression SPSS. Findings – The results are that Product Quality and Price Fairness have a significant effect on Customer Engagement and Customer Loyalty, Product Quality does not have a significant effect on Customer Loyalty, and Product Quality has a significant effect on Customer Loyalty through Customer Engagement. In contrast, Price Fairness does not significantly affect Customer Loyalty through Customer Engagement. Novelty - This research novelty is filling the gap of previous research by combining the direct effects of Product Quality and Price Fairness from several studies focusing on Customer Engagement as mediation to Customer Loyalty. Type of Paper: Empirical JEL Classification: F44; M20; M30. Keywords: Customer Engagement; Customer Loyalty; Price Fairness; Product Quality; Skincare. Reference to this paper should be made as follows: Saputra, D; Lanardi, S; Virginia, V. (2023). The Effect of Product Quality and Price Fairness through Customer Loyalty on Local Skincare in Indonesia, J. Mgt. Mkt. Review, 8(1), 37 – 44. https://doi.org/10.35609/jmmr.2023.8.1(5)