The Role of Satisfaction and Word of Mouth in Influencing Loyalty: A Study on Karya Kriya Batik in Semarang, Indonesia
Abstract
To win the competition, business people must be able to develop their products so that they can dominate the market and make their products attract customers by knowing the factors that play a role in increasing loyalty. This study aims to analyze the impact of product quality and experience on satisfaction and word of mouth as well as its impact on customer loyalty at Karya Kriya Batik in Semarang. The sample of this research is 160 customers who have made repeated purchases in the last 3 months, which are not limited by category of product, obtained by purposive sampling. Data analysis techniques used instrument tests, model tests, regression tests, and Sobel tests using SPSS 24.0 software. The research results show that product quality and experience influence satisfaction, word of mouth, and loyalty. The variable that has the most dominant influence on satisfaction and word of mouth is product quality. Product quality and experience influence satisfaction and word of mouth, and satisfaction and word of mouth influence loyalty. The variable with the most dominant influence on loyalty is word of mouth. Satisfaction and word of mouth mediate the influence of product quality and experience on loyalty.
Keywords: customer, experience, loyalty, product quality, satisfaction, word of mouth.
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