The Effect of Service Quality and Price on Customer Loyalty to KFC Fanindo Sanctuary Garden Through Customer Satisfaction as an Intervening Variable

Abstract

This study examines the influence of service quality and price on customer loyalty at KFC Fanindo Sanctuary Garden in Batam, with customer satisfaction serving as an intervening variable. Employing a quantitative approach, data were collected via an online questionnaire from 100 repeat customers aged 17–50 years who purchased at the outlet within the past year. Structural Equation Modeling–Partial Least Squares (SEM-PLS) was used for data analysis. The results indicate that service quality and price both positively and significantly affect customer satisfaction and loyalty. Additionally, customer satisfaction significantly mediates the relationship between service quality and customer loyalty, while it does not mediate the effect of price on loyalty. These findings emphasize the critical role of enhancing service quality and competitive pricing to boost customer satisfaction and foster loyalty in the fast-food sector. This research provides valuable insights for KFC management KFC Fanindo Sanctuary Garden to refine service and pricing strategies to maintain and strengthen customer loyalty.