Factors Influencing Indonesian Customer Satisfaction and Customer Loyalty in Local Fast-Food Restaurant

Abstract

This paper aims to analyze the influence of customer satisfaction and customer loyalty toward the local fast food restaurant in Indonesia. The variables involved in this study were perceived service quality, perceived product quality, perceived price fairness, customer satisfaction, and customer loyalty. Samples of this study were customers of the local fast food restaurant in Yogyakarta. Quantitative method is used to analyze the relationships within variables. This research examined 200 respondents by spreading the online questionnaires that were analyzed by using Structural Equation Model method. To collect the data, this study used convenience sampling method. The results show that perceived service quality, perceived product quality, and perceived price fairness had a positive and significant influence on customer satisfaction. Also, perceived service quality, perceived product quality, and perceived price fairness had a positive and significant influence on customer loyalty. Finally, customer satisfaction has a positive and significant influence on customer loyalty. Perceived price fairness was the highest influence on Indonesian consumers for being loyal to the local fast food restaurants.