Service quality as an intervening variable between promotion, price, and customer satisfaction
A study of the service industry
Keywords:
customer satisfaction, price, promotion, service product, service qualityAbstract
This study aims to analyze the effect of promotion and price on customer satisfaction with service quality as a mediating variable at the Service Product in Nusa Dua, Bali. The research sample consisted of 128 respondents selected using an accidental sampling technique. The data analysis method uses Partial Least Squares (PLS) with the help of SmartPLS 4.0 software to evaluate the relationship between variables. The results showed that promotion has a positive and significant effect on service quality with a coefficient value of 0.381 and a t-statistic of 5.117 (p < 0.05). Similarly, price has a significant positive effect on service quality with a coefficient value of 0.550 and a t-statistic of 7.341 (p < 0.05). In addition, service quality is proven to have a positive and significant effect on customer satisfaction with a coefficient value of 0.215 and a t-statistic of 2.566 (p < 0.05). Promotion and price also affect customer satisfaction indirectly through service quality. The t-statistic values for the mediation path are 2.342 and 2.350, respectively (p < 0.05). Overall, the service quality variable was able to explain 78.3% of the variability, while the customer satisfaction variable had an R-squared of 80.8%, indicating excellent model strength.
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