Unraveling the Antecedents of Customer Loyalty in the Restaurant Industry The Impact of Perceived Price Fairness, Product Quality, and Service Quality through the Lens of Customer Satisfaction

Abstract

Companies have developed competitive tactics to compete with other companies in comparable industries. Price has a big impact on customer happiness and adds to a company's goals, but product quality has a huge impact on a restaurant's performance, making it a strength of the company is customer loyalty. This study investigates the influence of perceived price fairness, product quality, and service quality on customer loyalty, with customer satisfaction as a mediating variable in the context of Kampoeng Deli Restaurant in Medan. Using a questionnaire as the research instrument, data were collected from 140 participants between August and November 2023 and analyzed using PLS-SEM. The results indicate that product quality and service quality have significant positive effects on both customer satisfaction and customer loyalty. However, perceived price fairness does not significantly influence customer satisfaction or loyalty. The findings also reveal that customer satisfaction mediates the relationships between product quality, service quality, and customer loyalty. This study contributes to the understanding of the factors influencing customer loyalty in the restaurant industry and offers practical implications for restaurant managers to enhance customer satisfaction and loyalty by focusing on product and service quality improvements.