Building Customer Loyalty: The Impact of Price Perception and Service Quality Mediated by Customer Satisfaction

This research aims to analyze the influence of price and service quality on customer loyalty through customer satisfaction as an intervening variable. The type of research used in this research is explanatory research. The population in this research is customers. Data analysis uses the Partial Least Square Structural Equation Modeling Method. The results of this research show that (1) price perception has a positive and significant effect on customer loyalty, (2) service quality has a positive and significant effect on customer loyalty, (3) price perception has no effect on customer satisfaction, (4) service quality has a positive effect and significant effect on customer satisfaction, (5) customer satisfaction has a positive and significant effect on customer loyalty, (6) customer satisfaction cannot mediate the effect of price perception on customer loyalty, (7) customer satisfaction can mediate the effect of service quality on customer loyalty. Managerial Implications The study's findings indicate that perceptions of price and service quality significantly influence customer loyalty, with customer satisfaction serving as a crucial intervening variable. Managers should focus on optimizing both price perception and service quality to enhance overall customer satisfaction, which in turn increases customer loyalty.


Introduction
The era of globalization has brought many changes and developments in more modern technology and has made the lifestyle of Indonesian people prefer everything practical.This can be seen from Indonesia's economic growth, which has increased quite significantly every year in the trade, hotel, and culinary sectors.This phenomenon has led to the emergence of much competition in the business world, which makes businesspeople have to follow business trends that are increasingly developing in line with technological advances.
To be able to survive amidst the huge current of culinary competition, especially in the city of Jakarta, managers must create marketing strategies that focus on more than just price.However, they must also start to be consumer-oriented, namely by paying attention to service quality.A marketing strategy is something that companies must carry out to achieve maximum levels of consumer satisfaction, as well as to prevent consumers from moving to other restaurants.One of the important points that keeps consumers from moving to other restaurants is the satisfaction of the consumers themselves.
The rise of the culinary business being developed in various places forces the players to be able to compete to survive, both in terms of the products offered, sales strategies, and the services provided to customers.It is believed that good service to customers can lead to satisfaction, thereby influencing customer loyalty.Such as serving customers well and presenting products that suit customer desires to make customers feel satisfied so that customers can come back.During today's intense competition, restaurant entrepreneurs compete to win the hearts of customers.Restaurant or eating place is a general term used to describe a business that serves dishes, provides a place to enjoy those dishes, and sets rates for meals and service.Several factors influence consumer satisfaction.These factors include service quality, price perception, product quality, consumer psychology or consumer emotions, product convenience, personal experience, and the experiences of other people.Two factors are always a concern in the culinary business, namely service quality and price perception.
Consumer satisfaction can be observed from the amount of their income.The decline in sales that occurred at RM. Padang Sabana Gajebo may also be caused by less-than-optimal customer satisfaction, so consumers are not loyal to RM. Padang Savannah Gajebo and reach other places to eat or restaurants.Customer loyalty is a strong commitment to continue to repurchase a product or service in the future, resulting in the use or purchase of the same brand repeatedly; loyal customers are not easily influenced and will not move to another company.In doing business, many factors influence the emergence of a sense of loyalty in customers or consumers.
Customer loyalty is influenced by several factors, including the perception of price and service quality; perception of price and service quality over a long period will lead to customer loyalty.Therefore, the company must be responsible for maintaining the price and quality of its service.Price is one measure in business.Price is the amount of money needed to get a combination of products and services.Prices can be influenced by several factors, namely elasticity of demand, cost structure, competition, positioning of the products offered, company targets, product life cycle, resources used, and economic conditions.This study has a research gap since it does not fully explain how customer satisfaction influences the relationship between price perception and customer loyalty.Few studies have looked into the mediating function of customer happiness in this setting, particularly in the food and beverage business during the COVID-19 epidemic, despite the fact that several have examined the impacts of pricing and service quality on customer loyalty.In order to close this knowledge gap, this study investigates the ways in which customer happiness and pricing perception influence customer loyalty.By doing so, it offers a more thorough and contextual understanding of the variables influencing consumer loyalty in times of crisis.

Literature Review Price Perception
Price perception is the process by which consumers select, organize, and interpret their images.Consumer price perceptions vary because consumers are individuals who have their characteristics.
In setting prices, it can be considered as part of the product differentiation function in marketing.State that price is the amount of money needed to get a combination of products and services.It can also be said that price is several sacrifices to get a product (goods and services) as a substitute.
Price is the value that customers must pay to purchase something.From the definition above, the price level set will influence the quantity sold; indirectly, the price also influences the costs incurred in relation to product efficiency.

Service quality
The term "service quality" refers to any actions that integrate the value of processing as determined by the caliber of service and the degree of excellence anticipated to hasten customer participation in achieving their needs.Service quality, in the words, is the standard of excellence that the standard of excellence itself sets for satisfying client needs.Conversely, service quality, is the presentation of goods or services in compliance with business standards, with an emphasis on providing goods and services that match customer expectations.Service quality is a method by which customers evaluate the caliber of services they have received in comparison to what they had anticipated.By doing this, the business can raise the standard of service and offer the greatest possible product or service to make clients or customers feel at ease (Budiono, 2021).The aforementioned definition leads to the conclusion that service quality is a process made up of a number of intangible activities that typically take place in interactions between clients and service providers and tangible resources, products, or systems that offer services in response to client issues.

Customer loyalty
Consumer loyalty, is the steadfast will to continue using and purchasing a favored good or service in the future, even in the face of circumstances and advertising campaigns that could lead them to change.Loyalty is defined as faithfulness, resolve, and the capacity to follow instructions, carry them out, and practice them with complete awareness and accountability.Defines customer loyalty as follows: a customer is considered loyal if they consistently make purchases or if there is a requirement that they make purchases at least twice or three times in a given period of time.Customer loyalty is an optimistic mindset that aims to satisfy a customer's need for a product and encourages them to make additional purchases.According to the definitions given above, it can be said that customer loyalty is an attitude that motivates behavior to support or purchase goods or services from a business that has a feeling component.This is especially true for customers who buy frequently and consistently with a high degree of consistency, but who also show a commitment to and positive attitude toward the business that is providing the good or service.

Customer satisfaction
Customer satisfaction, is an affective reaction to an assessment of a product or service's consuming experience.Customer satisfaction measures how satisfied consumers or users of the company's goods or services are with the goods or services they have gotten.A person's appraisal of a product's perceived performance in comparison to expectations is reflected in their level of satisfaction.Customers are satisfied even when performance doesn't meet their expectations.Customers are satisfied when the performance lives up to expectations.Customers are satisfied if it surpasses their expectations.Drawing from many definitions provided by the experts, it can be inferred that consumer satisfaction is the outcome of evaluating expectations against the actual performance experienced while utilizing a good or service.

Hypothesis The Influence of Price Perceptions on Customer Loyalty
Based on research conducted by Budiono (2021), price perceptions have a positive and significant effect on customer loyalty.Reasonable prices can strengthen bonds between consumers, making them more confident to buy again.This is also strengthened by other research by Harris et al. (2022), Hariani and Sinambela (2020), proving that price perception has a positive and significant effect on customer loyalty.This means that price perceptions will have an impact on customer loyalty.If the high price matches the reputation and quality of service, then consumers are willing to pay more and remain loyal.On the other hand, if the price perception is high and matches what customers expect, customers will only buy the product occasionally.So, the hypothesis can be concluded as follows.H1: Price Perception has a positive and significant influence on Customer Loyalty.

The Influence of Service Quality on Customer Loyalty
Based on previous research conducted by Muhtarom et al. (2022), service quality has a positive and significant effect on customer loyalty.Consistent service quality can build consumer trust in the company.Consumers who trust a company are more likely to continue choosing that company.Strengthened by other research by Prihandoyo (2017), Gea (2021), proves that service quality has a positive and significant effect on customer loyalty.Consumers who feel treated well and appreciated will be more likely to choose the same company repeatedly rather than try others.Thus, investment in service quality can bring great benefits in maintaining and increasing customer loyalty.Companies that prioritize superior customer service tend to be more successful in retaining existing customers and generating business growth through positive recommendations from satisfied customers.On the other hand, unsatisfactory service quality makes customers feel disappointed and will switch to other companies.So, the following hypothesis can be concluded: H2: Service Quality has a positive and significant influence on Customer Loyalty.
The Influence of Price Perception, Customer Satisfaction, Customer Loyalty Customer happiness can operate as a mediating factor in the relationship between price perception and customer loyalty, according to the findings of earlier research by Hariono and Marlina (2021).Customers will encourage their friends to purchase the goods if they are happy with the pricing offered, which will foster a loyal mindset.Additional studies Murtiningsih et al. (2020) support this, demonstrating that customer satisfaction can moderate the impact of price perception on customer loyalty.State that buyers will only suggest a product to their relatives if they are happy with the pricing.Thus, the following can be said about the hypothesis: H3: Customer Satisfaction Mediates the Effect of Price Perception on Customer Loyalty The Influence of Service Quality, Customer Satisfaction, Customer Loyalty Customer satisfaction has the potential to moderate the relationship between service quality and customer loyalty, according to Lusiah et al.'s (2019) explanation, drawing on the findings of earlier.When customers receive excellent service, they won't complain and will likely use the service again.Additional studies by Murtiningsih et al. (2020), Flores et al. (2020), andSuharman et al. (2020) support this by demonstrating that customer satisfaction can moderate the impact of service quality on customer loyalty.However, Suharman et al. (2020) claim that clients who express dissatisfaction with the service will only infrequently utilize it.Thus, the following can be said about the hypothesis: H4: Customer Satisfaction Mediates the Effect of Service Quality on Customer Loyalty.

Research Conceptual Framework
In this research, the independent variables are perceptions of price and service quality, while the dependent variable is customer loyalty, and the intervening variable is customer satisfaction.Based on this explanation, the following research conceptual framework can be seen in Figure 1.

Data and Method
Types of research This study employed an explanatory research design using a quantitative methodology.The study employs a survey approach, whereby information obtained from participants via a questionnaire serves as a sample for further data collection.

Data Types and Data Sources
The types of data used in this research are primary data and secondary data.Primary data in this research is data obtained from distributing questionnaires using Google Forms to RM consumers.Gajebo Savannah.A questionnaire is a closed statement where in the questionnaire, the respondent's statement is limited to answer choices.Secondary data in this research is data obtained from literature, library studies, and online media as research support.The data collection technique used in this research is a survey method whose instrument is a questionnaire to respondents, which is given directly to RM consumers.

Population
According to Ulum (2018), population is an area consisting of objects and subjects that have qualities and characteristics determined by researchers to be studied based on their conclusions.The population used in this research is RM consumers.Padang Sabana Gajebo in Dki Jakarta who has eaten at RM.The Gajebo Savannah, the exact number of which has yet to be discovered.

Sample
In this research, the sampling technique used was a non-probability sampling method with a purposive sampling technique, namely involving individuals who were selected based on their suitability to certain criteria set by the researcher.

Data analysis method
The partial least square structural equation modeling, or PLS-SEM, approach using WarpPLS software supports the data analytic approach utilized in this study.The influence of both direct and indirect linkages between independent variables and dependent variables is also determined using PLS.

Customer Loyalty
Client loyalty is the steadfast determination to stick with a favored product or service through subsequent purchases or support, even in the face of circumstances and advertising campaigns that could tempt them to go elsewhere.According to the study's findings, the brand should display an average value of 3.35 percent in a very high category for the indicator based on the descriptive statistics index value.The statement item advising to others who require information about RM serves as an example of this.The average value for Padang Sabana Gajebo is 3.35.Additionally, the statement item encourages friends or family to select RM.The average rating for Padang Sabana Gajebo as a preferred dining establishment is 3.36.The indicator's two statement components that suggest the brand to others show a very high category.

Price Perception
Price is the amount of money needed to obtain a combination of products and services.There are several indicators used to measure price perception, namely price affordability, price suitability with product quality, price competitiveness, and price suitability with benefits.Presents an average value of 3.28 percent with a high category based on the descriptive statistics index value.This is illustrated in the price statement item offered by RM.Padang Sabana Gazebo, according to the health benefits of meat and vegetables shows an average value of 3.31 with a very high category.Furthermore, the statement item feels that I get benefits from the spices in RM.Padang Sabana Gajebo's cooking, because it has various properties and is in accordance with the costs I spend, shows an average value of 3.28 with a high category.

Service Quality
Service quality is the level of excellence expected with the level of excellence itself in fulfilling customer desires.There are several indicators used to measure service quality, namely expertise (reliability), awareness (awareness), attention (attention), and accuracy (accuracy).Shows an average value of 3.41 percent with a very high category based on the descriptive statistical index value.This is reflected in the statement item about the delicious taste of the food and the friendliness of the service at RM. Padang Sabana Gajebo, which remains the same from time to time, with an average of 3.42.The statement item that visitors can order quickly until the food is served shows an average value of 3.4.Both statement items show very high values.

Customer Satisfaction
Customer satisfaction is a measurement of the extent to which customers or users of a company's products or services are very happy with the products or services received.There are several indicators used to measure customer satisfaction, namely the relevance of expectations, the desire to repurchase, the willingness to suggest, the creation of a decision to buy the first company, and the creation of a brand image.Shows an average value of 3.38 percent with a very high category based on the descriptive statistical index value.This is illustrated in the statement item believing that RM.Padang Sabana Gajebo has a good impression, showing an average value of 3.51.The statement item prefers RM.Padang Sabana Gajebo's cuisine to similar restaurants because the taste and quality of the food are better, showing an average of 3.42.Both statement items show a very high category.

Structural Model Evaluation
A suitable model (fit) is one of the goals of a study to see whether price perception, service quality, and customer satisfaction can affect customer loyalty.For that, it is necessary to evaluate the structural model or inner model.The model evaluation uses certain measurements with recommended rule-of-thumb criteria, as stated in Table 1.First, it is evident that pricing perception and service quality have a direct impact on customer loyalty.Then, it is evident how the variables of pricing perception and service quality directly affect customer happiness.

Research Hypothesis Testing
In accordance with the results, we have carried out the previous structural model evaluation calculation with the results listed in Figure 2 showing the path analysis that affects the variables both directly and indirectly.The results of this path analysis will be used to test the research hypothesis consisting of seven hypotheses.The results are presented in Table 2, which is used to test the research hypothesis that has been proposed.

Discussion
The Influence of Price Perceptions on Customer Loyalty Price has a direct impact on customer loyalty, as demonstrated by the path coefficient, which yields significant results that satisfy the significant requirements when seen through the lens of the p-value results (Ghozali & Latan, 2017).As a result, H0 is disapproved whereas H1 is approved.Accordingly, pricing perception has a strong and favorable impact on consumer loyalty, according to hypothesis 1. Customers are willing to pay more and will stick with a business if the high price is commensurate with the reputation and caliber of service.According to analysis of research by Hariono and Marlina (2021), pricing perception significantly and favorably affects consumer happiness.Customers can feel the advantages of the products they purchase at the nominal price that has been announced and is in accordance with expectations.If the gains are equal to or greater than the nominal amount invested, they are fulfilled.These findings, however, show that customer happiness is unaffected by price perception.The findings of this study are consistent with those of studies by Setyo (2017) and Sumarsid and Paryanti (2022), which found no discernible relationship between pricing perceptions and customer satisfaction.

The Influence of Service Quality on Customer Loyalty
To determine the direct relationship between customer loyalty and service quality using the path coefficient, which yields significant results when these results meet the significant requirements (Ghozali & Latan, 2017).This indicates that H2 is accepted and H0 is rejected.Accordingly, hypothesis 2 asserts that customer loyalty is positively and significantly impacted by service quality.Consumers that experience good treatment and appreciation are more likely to select RM. instead of trying different eateries, they keep coming back to the same Padang Sabana Gajebo.According to the research findings, RM's customers are more loyal to the company when they receive higherquality services.There will be an increase in Dki Jakarta's Gajebo Savannah as well.The findings of this study are consistent with those of studies by Gea (2021), andPrihandoyo (2017), as well as Muhtarom et al. (2022), which found a positive and substantial relationship between service quality and customer loyalty.Which found no significant relationship between service quality and customer loyalty.Because patrons will become dissatisfied and choose to patronize another restaurant if the quality of service is subpar.

The Influence of Customer Satisfaction as a Mediator on Customer Loyalty
The results were not statistically significant according to the path coefficient analysis for customer satisfaction, which is the mediating variable between the influence of price perception on customer loyalty.P-value demonstrates this.In cases where these findings fall short of the significant threshold of < 0.05 (Ghozali & Latan 2017).This indicates that H0 is approved and H3 is denied, indicating RM consumer satisfaction.The perception of price and customer loyalty has not been influenced by Padang Sabana Gajebo in Central Jakarta.Accordingly, hypothesis 3 asserts that the relationship between price perception and customer loyalty is not mediated by customer satisfaction.The findings contradict the findings of a study conducted by Murtiningsih et al. (2020), which suggests that customer satisfaction can operate as a mediator between pricing perceptions and customer loyalty.Nonetheless, this study supports that of Zai and Christiani (2023) at the Gado-Gado Kelapa Kuning Restaurant, Tangerang, who found that pricing perception has an impact on customer loyalty but that customer satisfaction cannot mitigate it.According to a study conducted in by Mulyono and Wahyudi (2021) on AMDK Airku in Kulon Progo Regency, a Special Region of Yogyakarta, customer satisfaction is unable to mitigate the impact of price perception on customer loyalty.
The Influence of Customer Satisfaction as a Mediator on Customer Loyalty Results were significant based on the path coefficient analysis for customer satisfaction, a mediating variable between the influence of service quality on customer loyalty.In cases where it satisfies the significant requirements, this is demonstrated by the p-value (Ghozali & Latan 2017).This indicates that H4 is accepted while H0 is refused.This demonstrates how customer loyalty and service quality are mediated by customer satisfaction.Accordingly, hypothesis 4 claims that customer pleasure acts as a mediator between the effects of customer loyalty and service quality.These findings are consistent with studies by Lusiah et al. (2019) andSuharma et al. (2022), which suggested that customer satisfaction may moderate the impact of service quality on customer loyalty.RM client contentment.Sabana Gajebo in Dki Jakarta has the potential to raise client loyalty and service excellence.Similarly, this study differs with that of Irnandha (2019) at the JNE Hijrah Segan Yogyakarta Branch, which found that customer happiness was insufficient to mitigate the impact of service quality on customer loyalty.Mie Gacoan in East Bekasi also shown that the relationship between service quality and customer loyalty is not mediated by customer satisfaction.The study's findings indicate that RM menu prices and customer loyalty may be influenced by how much a product is perceived to cost.Padang Sabana Gajebo's affordability fosters patron loyalty.The results of this research are in line with research conducted by Haris et al (2022), which stated that price perception has a positive and significant effect on customer loyalty.On the other hand, this research is different from Hidayat and Firdaus (2019) and Novitawati et al. (2019), stating that price perceptions do not affect customer loyalty.

Conclusion
The following is the conclusion regarding the impact of pricing perception and service quality on customer loyalty through customer satisfaction as an intervening variable in this research, based on the analysis and discussion results: Customer loyalty is positively and significantly impacted by price perception.A product that offers a better price will win over more devoted customers.Customer loyalty is positively and significantly impacted by service quality.Customer loyalty will rise in tandem with an increase in the quality of services rendered.The relationship between pricing perception and customer loyalty cannot be mediated by customer satisfaction.Price can therefore contribute to a rise in client loyalty as there is no requirement for customer happiness.The relationship between service quality and client loyalty can be mediated by consumer satisfaction.RM satisfaction.Padang Sabana Gajebo can improve service quality and customer loyalty.Managerial Implications The findings of this study highlight the crucial role of price perceptions and service quality in shaping customer loyalty, with customer satisfaction serving as a key mediating factor.To leverage these insights, the management should focus on maintaining competitive pricing strategies while continuously enhancing service quality to meet and exceed customer expectations.

Recommendation
For future researchers, it is recommended that they expand the scope of their research by adding other relevant variables that have the potential to influence customer loyalty, such as cultural, psychological, and social factors.In addition, using more varied research methods, such as qualitative or mixed methods, can provide a more in-depth and comprehensive perspective on the relationships between the variables studied.Digging deeper into unidentified factors that influence customer satisfaction and loyalty could also make significant contributions to the academic and practical literature.

Figure
Figure 1.Conceptual Framework Figure 2 displays the outcomes of the structural model test as a path diagram illustrating the relationship between the variables.

Table 1 .
Evaluation Results of the Measurement ModelBased on Table1, the model test results on the Tenenhaus Goodness of FIT (GoF) evaluation measure were 0.618.This shows that the model has a high level of suitability (≥ 0.36).avalue of 0.772, the R2 (perception of price and service quality on customer loyalty) indicates that 77.2 percent of customer loyalty is influenced by this perception; the remaining 22.8 percent is determined by other factors not covered in this study.The obtained value of 0.772 is included in the criteria ≥ 0.70, indicating the strength of the model.The Q2 test results demonstrate the predictive significance of this model in forecasting the relationship between variables.This is demonstrated by the Q2 value of 0.773 in Table4.30,which is more than zero.

Table 2 .
Results of Research Hypothesis Testing