Journal of Accounting and Finance Management (JAFM)
Vol. 6 No. 3 (2025): Journal of Accounting and Finance Management (July - August 2025)

The Effect of Price Strategy and Product Quality on Customer Loyalty Mediated by Customer Satisfaction Variables in Tiara Convection Tulungagung

Arwina, Reonada (Unknown)
Nur Singgih, Moh. (Unknown)
Earlike A. S, Fitria (Unknown)



Article Info

Publish Date
23 Jul 2025

Abstract

This study aims to analyze the effect of price strategy and product quality on customer loyalty, both directly and indirectly through customer satisfaction as a mediating variable. The research was conducted on active customers of Tiara Konveksi Tulungagung, a small and medium-sized enterprise (SME) in the garment industry serving orders for school, organizational, and institutional uniforms in East Java. A quantitative approach with a survey method was used. Data were collected through questionnaires distributed to 350 respondents and analyzed using Structural Equation Modeling (SEM) based on Partial Least Square (PLS) with SmartPLS 3 software. The results show that price strategy and product quality have a positive and significant effect on customer loyalty, both directly and indirectly through customer satisfaction. Price strategy significantly enhances customer satisfaction and loyalty, while product quality also contributes positively to satisfaction and long-term customer retention. Customer satisfaction plays a mediating role in strengthening the relationship between price strategy and loyalty, as well as between product quality and loyalty. This research emphasizes that in the garment industry, customer loyalty is not built solely on price or product quality, but on the overall customer experience, including value perception, service, and satisfaction. Therefore, businesses such as Tiara Konveksi are encouraged to apply competitive pricing strategies, maintain consistent product quality, and enhance customer satisfaction to foster sustainable loyalty.

Copyrights © 2025






Journal Info

Abbrev

JAFM

Publisher

Subject

Economics, Econometrics & Finance

Description

Journal of Accounting and Finance Management (JAFM) is a peer-reviewed journal published by Dinasti Research, Dinasti Foundation, Indonesia six times a year. JAFM aims to publish articles in the fields of accounting, finance, and management that make a significant contribution to the development of ...