Service Quality as an Intervening Variable Between Promotion, Price, and Customer Satisfaction
A Study of Service Industry
Abstract
This study aims to analyze the effect of promotion and price on customer satisfaction with service quality as a mediating variable at Service Product. The research sample consisted of 128 respondents selected using accidental sampling technique. 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-Square of 80.8%, indicating excellent model strength. This study concludes that service quality plays an important role in mediating the relationship between promotion and price to customer satisfaction.
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