Price and Product Quality as Determinants of Customer Satisfaction in Fashion SME: Case Study Rantauprapat

Purpose: This study examines the influence of price (X1) and product quality (X2) on customer satisfaction (Y) at Fashion Outlet Rantauprapat (FOR), an SME fashion retail store in North Sumatra, Indonesia, where competition in the fashion sector is increasing.

Methodology: A qualitative descriptive design was applied. Data were collected through unstructured interviews with the owner, two employees, and three customers, direct observation of store operations (October 20–25, 2023), and documentation of 2023 monthly sales records. Data were analyzed using Miles and Huberman’s model, including data reduction, display, and conclusion drawing.

Results: Findings show that both price and product quality positively influence customer satisfaction. Competitive and value-based pricing enhances perceived fairness and satisfaction, while consistent product quality and regular updates of fashion items encourage repeat purchases and loyalty. Sales records show steady growth from IDR 10,500,000 (January) to IDR 18,250,000 (December), with an annual total of IDR 176,409,000 and an average monthly growth of 7.4%.

Conclusion: Price competitiveness and product quality are key drivers of customer satisfaction and repeat purchase behavior at FOR.

Limitations: The study is limited to a single case with a small purposive sample, restricting generalizability.

Contribution: This study contributes to educational management literature by integrating policy programs and organizational factors into a comprehensive model of educational quality improvement.