Product Quality, Price, and Service Quality Effects on Customer Loyalty through Satisfaction at MSME Bakery By.Mangialo

2026-07-25
Published
159-174
Pages
OPEN
Access
PA
Prisca Alivia
Dr. Soetomo University, Surabaya, Indonesia
SD
Sayekti Suindyah Dwiningwarni
Dr. Soetomo University, Surabaya, Indonesia
Abstract

Purpose: This study aims to examine the direct and indirect effects of product quality, price perception, and service quality on customer loyalty, with customer satisfaction as a mediating variable at MSME Bakery by.mangialo in Surabaya, Indonesia. 
Research Methodology: This study employed an explanatory quantitative research design. Primary data were collected through a five-point Likert-scale questionnaire administered to 100 verified customers selected using purposive sampling. Data were analyzed using Structural Equation Modeling based on Partial Least Squares (SEM-PLS) with SmartPLS 4.0 to examine direct and indirect relationships among the research constructs.
Results: The findings indicate that product quality, price perception, and service quality have positive and significant effects on customer satisfaction. Furthermore, product quality, price perception, service quality, and customer satisfaction significantly improve customer loyalty. Customer satisfaction significantly mediates the relationships between product quality, price perception, and service quality with customer loyalty.
Conclusions: Customer loyalty in MSME bakery businesses is influenced by both product-related attributes and customer experiences. Maintaining product quality, ensuring fair pricing, and improving service responsiveness are essential for strengthening customer satisfaction and long-term loyalty. 
Limitations: This study is limited to a single MSME bakery in Surabaya and uses a cross-sectional survey approach with 100 respondents, which may restrict the generalizability of the findings. 
Contributions: Providing empirical evidence on the mediating role of customer satisfaction in linking product quality, price perception, and service quality with customer loyalty in the context of culinary MSMEs. The findings provide practical insights for small bakery businesses in developing customer retention strategies.

Customer Loyalty Customer Satisfaction MSME Bakery Price Perception Product Quality
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