The Effect of Product Quality and Price Perception on Brand Switching with Brand Dissatisfaction As A Mediating Variable (A Study of Switching from International Skincare Brands to Local Skincare Brands Among Generation Z in Surabaya)

Nafi' Lailatus Sa'diyah (Maarif Hasyim Latif Sidoarjo University)
Donny Arif (Maarif Hasyim Latif Sidoarjo University)

Escalate : Economics and Business Journal
Vol. 4 No. 4 (2026): Escalate : Economics and Business Journal

This study aims to analyze the effect of Product Quality and Price Perception on Brand Switching, with Brand Dissatisfaction as a mediating variable, among Generation Z consumers in Surabaya City who switched from international skincare brands to the local skincare brand Somethinc. This study employed a quantitative approach using the Partial Least Squares Structural Equation Modeling (PLS-SEM) method. The sample consisted of 100 respondents selected through purposive sampling. Data were collected using a five-point Likert scale questionnaire and analyzed using SmartPLS 4.1.1.8. The results indicate that Product Quality and Price Perception have a positive and significant effect on both Brand Switching and Brand Dissatisfaction. Furthermore, Brand Dissatisfaction has a positive and significant effect on Brand Switching. The indirect effect analysis demonstrates that Brand Dissatisfaction partially mediates the effect of Product Quality and Price Perception on Brand Switching. All seven proposed hypotheses were supported. These findings suggest that consumers' evaluations of the product quality and price perception of international skincare brands contribute to the formation of Brand Dissatisfaction, which subsequently increases Generation Z consumers' tendency to switch to the local skincare brand Somewhat.