The Effect of Product Quality on Customer Loyalty through Consumer Satisfaction and Company Reputation

Hilda  Alfionita; Harmadi Harmadi; Octano Selliandro; Primidya  Soesilo

doi:10.54518/rh.5.2.2025.317-328

Authors

Hilda Alfionita Universitas Bina Nusantara, Indonesia
Harmadi Harmadi Universitas Bina Nusantara, Indonesia
Octano Selliandro Universitas Bina Nusantara, Indonesia
Primidya Soesilo Universitas Bina Nusantara, Indonesia

DOI:

https://doi.org/10.54518/rh.5.2.2025.317-328

Keywords:

Customer Loyalty, Customer Satisfaction, Service Quality, Product Quality

Abstract

This study examines the influence of product quality on customer satisfaction, corporate reputation, and its impact on customer loyalty among active participants of PT. Taspen (Persero) in Indonesia. It employs an explanatory research design with a sample of 240 respondents selected using a random sampling method. Sampling was conducted at five branch offices with the largest number of active participants. The data analysis method used was Structural Equation Modelling with Partial Least Squares (SEM-PLS). The findings reveal that product quality has a positive and significant effect on customer satisfaction. However, product quality does not significantly affect corporate reputation. Additionally, both customer satisfaction and corporate reputation have a significant positive effect on customer loyalty. This indicates that when customers are satisfied and perceive a good corporate reputation, they are more likely to remain loyal and continue using services. The study highlights the importance of customer satisfaction as a key driver of loyalty, even more than corporate reputation in this context. These results provide valuable insights into improving service strategies.

Downloads

Download data is not yet available.

References

Abror, A., Patrisia, D., Engriani, Y., Evanita, S., Yasri, Y., & Dastgir, S. (2020). Service quality, religiosity, customer satisfaction, customer engagement and Islamic bank’s customer loyalty. Journal of Islamic Marketing, 11(6), 1691–1705.

Afifah A, R., & Yanti, N. (2023). The Effect of Product and Service Quality on Customer Satisfaction Loyalty Priority Savings Bank Sumut Syariah. Jurnal Ekonomi, Manajemen, Akuntansi Dan Keuangan, 4(2), 245–252.

Ati, A., Shabri, M., Azis, N., & Hamid, A. (2020). Mediating the effects of customer satisfaction and bank reputation on the relationship between services quality and loyalty of islamic banking customers. Malaysian Journal of Consumer and Family Economics, 25(1), 28-61.

Dakhi, P. (2023). The influence of service quality and product quality on consumer satisfaction with purchasing decisions as intervening variables at Alfamidi Diponegoro Teluk dalam-Nias Selatan. Jurnal Ekonomi, 12(01), 956-964.

Elidawati, E., Yasri, Y., & Idris, I. (2018). The Effect of Service Quality, Product Quality and Customer Satisfaction on Customer Loyalty of Bank Nagari Main Branch Padang. Piceeba 57(1), 138–145.

Fernando, Bintoro, B. P. K., Lutfiani, N., Haryanto, & Julianingsih, D. (2022). Analysis of the effect of service quality on company reputation on purchase decisions for professional recruitment services. APTISI Transactions on Management (ATM), 7(1), 35–41.

Ghozali, I., & Latan, H. (2015). Partial least squares konsep, teknik dan aplikasi menggunakan program smartpls 3.0 untuk penelitian empiris. Semarang: Badan Penerbit UNDIP, 4(1), 35-46.

Gli, D. D., Tweneboah,K, E. Y., Odoom, R., & Kodua, P. (2024). The effect of corporate reputation on customer loyalty in the Ghanaian banking industry: the role of country-of-origin. African Journal of Economic and Management Studies, 15(1), 73–87.

Hadi, D. P., & Indradewa, R. (2019). The Service Quality Effect on Corporate Reputation, Customers Satisfaction, and Loyalty. Journal of Multidisciplinary Academic, 3(3), 51–56.

Sarstedt, M., Hair Jr, J. F., Nitzl, C., Ringle, C. M., & Howard, M. C. (2020). Beyond a tandem analysis of SEM and PROCESS: Use of PLS-SEM for mediation analyses!. International Journal of Market Research, 62(3), 288-299.

Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24.

Hidayat, A., Mahdaria, S., & Addin Linando, J. (2017). The impact of perceived quality and corporate reputation towards positive word-of-mouth: trust as moderating variable. International Program-Master of Management 29(2), 395–398.

Ibrahim, M., & Musadad, M. (2019). The effect of price on the waterpark visitors’ satisfaction. Journal of Business on Hospitality and Tourism, 5(1), 133.

Jaya, I. K., Ni Luh Putu Indiani, & Rusmiati, N. N. (2020). The influence of hotel marketing mixes on tourists’ revisit intention case study at Kumala Pantai Hotel, Seminyak, Bali. Warmadewa Management and Business Journal (WMBJ), 2(2), 84–91.

Khan, R. U., Salamzadeh, Y., Iqbal, Q., & Yang, S. (2022). The impact of customer relationship management and company reputation on customer loyalty: The mediating role of customer satisfaction. Journal of Relationship Marketing, 21(1), 1-26.

Langkai, P. G., Pelleng, F. A. O., & Keles, D. (2018). Kualitas pelayanan pembayaran pensiun Pegawai Negeri Sipil (PNS) pada PT. TASPEN (Persero) Cabang Manado. Jurnal Administrasi Bisnis, 7(1), 73–80.

Le, T. T. (2023). Corporate social responsibility and SMEs' performance: mediating role of corporate image, corporate reputation and customer loyalty. International Journal of Emerging Markets, 18(10), 4565-4590.

Lidiawan, A. R., Ujianto, & Cempena, I. B. (2023). Does e-banking moderate customer value relations with corporate reputation: The case of BNI bank in Kediri city, Indonesia. International Journal of Applied Economics, Finance and Accounting, 16(2), 288–296.

Loan, M. T. (2023). Studying customers’ satisfaction with service quality of life insurance in Vietnam. International Journal of Professional Bussiness Review, 8(6), 1–20.

Lone, R. A., & Bhat, M. A. (2022). Product Quality and Customer Loyalty: A Review of literature. International Journal of Marketing and Technology, 12(06), 1–21.

Maia, F. C., Saldanha, E. de S., & Graciana, B. da C. (2023). The effect of product quality and service quality on purchasing decisions through purchase intention as an intervening variable (study on consumers of Cempaka Trowulan Batik). International Journal of Management and Business Economics, 1(3), 222–225.

Nafisah, F. R., Yunaidi, E., & Wahyudi, S. (2024). The effect of responsiveness and perceived service quality on customer satisfaction in MSMEs Batik in Semarang City. Research Horizon, 4(6), 9-16.

Nguyen, T. T. N. (2020). Developing and validating five-construct model of customer satisfaction in beauty and cosmetic E-commerce. Heliyon, 6(9), e04887.

Nugroho, H. S., Edris, M., & Sutono. (2023). Analysis of the influence of product quality, service quality and company image on customer loyalty through customer satisfaction as an intervening variable at PT BPR BKK Lasem (Perseroda). Journal of Finance and Business Digital, 2(3), 331–346.

Nurzullah, E., Nur, T., Mukti, A. H., & Purba, A. E. (2019). Analisis pengaruh kualitas layanan, bauran pemasaran, terhadap loyalitas nasabah dengan kepuasan nasabah sebagai variabel intervening pada bank Pt. Abc. Jurnal ilmiah bisnis, Pasar Modal, Dan UMKM, 2(2), 11–19.

Özkan, P., Süer, S., Keser, İ. K., & Kocakoç, İ. D. (2019). The effect of service quality and customer satisfaction on customer loyalty: The mediation of perceived value of services, corporate image, and corporate reputation. International Journal of Bank Marketing, 38(2), 384-405.

Santoso, S., & Christanto, Y. M. (2022). The influence of service quality, corporate image, and customer satisfaction on customer loyalty in banking sector in Yogyakarta. International Journal of Research in Business and Social Science, 11(7), 9-16.

Setiawan, Z., Dharmawan, D., Judijanto, L., & Nurcholifah, I. (2023). Analysis of the influence of customer satisfaction, customer value and service quality on customer loyalty of state-owned bank in indonesia. JEMSI (Jurnal Ekonomi, Manajemen, dan Akuntansi), 9(6), 2573-2580.

Stravinskiene, J., Matuleviciene, M., & Hopeniene, R. (2021). Impact of corporate reputation dimensions on consumer trust. Engineering Economics, 32(2), 177–192.

Syafarudin, A. (2021). The Effect of Product Quality on Customer Satisfaction Implications on Customer Loyalty in the Era Covid-19. Ilomata International Journal of Tax & Accounting (IJTC), 2(1), 71–83.

Tedjokusumo, C., & R. Murhadi, W. (2023). Customer satisfaction as a mediator between service quality and customer loyalty: a case study of Bank Central Asia. Jurnal Siasat Bisnis, 27(2), 156–170.

Waluya, A. I., Iqbal, M. A., & Indradewa, R. (2019). How product quality, brand image, and customer satisfaction affect the purchase decisions of Indonesian automotive customers. International Journal of Services, Economics and Management, 10(2), 177-193.

Zulkarnain, R., & Ramdansyah, A. D. (2020). Pengaruh Kualitas Pelayanan dan Kualitas Produk Terhadap Loyalitas Nasabah dengan Kepuasan Nasabah sebagai Variabel Intervening (Studi Kasus Pada Pt Bank Syariah Mu’amalah Cilegon). Jurnal Manajemen Dan Bisnis, 2(1), 87-110.