Volume 3, Issue 12, December – 2018
ISSN No:-2456-2165
Analysis of Service, Price and Quality Products to
Customer Satisfaction
Sonny Mochamad, Rano Ismoyo W, Bramanto Agung W
Fakultas Pasca Sarjana, Magister Manajemen, Universitas Mercubuana
Jalan Meruya Selatan No.1, Joglo, Kembangan, Jakarta Barat,
Daerah Khusus Ibukota Jakarta Indonesia 11650
Abstract:- In this business era, the competition between
organizations continues to grow, thus demanding
companies to maximize their performance to compete in
the global market. Companies should be able to manage
the relationship with the consumers, to leads consumer
satisfaction in line with the company's goals and profit.
Every company should pay attention to QCDS (Quality,
Cost, Delivery, and Service) as an essential input to allows
finding more effective approaches to elevating company's
services. This journal aims to analyze the service’s
quality, the comparison between price and consumer
satisfaction in one of the service company in Indonesia.
Keywords:- Service Quality Analysis, Price, Product
Analysis, Consumer Satisfaction.
I. INTRODUCTION
The competitiveness between companies is able to
create new atmospheres in dynamical competitive markets
hence; those atmospheres influence an improvement in
developing a higher level of consumer satisfaction (Eggert &
Uloaga, 2002). Numerous studies have shown quality
service delivery and consumer satisfaction to be associated
with loyal consumers, repeat purchase, and the organization’s
propensity to retain its consumers over longer period of time
(Lee, 2013; Anderson, Fornell, & Lehman, 1994; Berry, et.
al, 1983 as cited in Filho & Valcaro, 2015). Fornell (1992)
stated, consumers’ satisfaction is the overall measurement of
consumer experience after buying product and using services.
Consumer satisfaction or dissatisfaction is a part of the
consumer’s experience of the service or product provided by
the company. Based on that experience, the consumer has a
tendency to build certain value between companies. If a
company provide a good product and services, and met
consumer expectation, the company will create a bigger value
compared to its competitor Consumers are subjects that
purchase goods and services to satisfy their needs. The
consumer behaviour derives from the decision whether, what,
when, where and how to purchase goods and services
(Ilieska, 2013). Based on that, being familiar with the
consumer needs is essential to the company. Because if
company able to fulfill the consumers’ needs, it will
influences the costumers’ future buying and helps to identify
consumers behavior.
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International Journal of Innovative Science and Research Technology
II. LITERATURE REVIEW
A. Consumer’s Behavior
According to (Jacoby 1975, 1976), consumer behavior
has been defined as the “acquisition, consumption and
disposition of products, services, time and ideas by decision
making units”. Kotler & Keller (2006) also added, Consumer
behavior is the study of how individuals, groups and
organization’s select, buy, use and dispose of goods, service,
ideas, or experiences to satisfy their needs and wants. Often,
company’s product perspective can change due to consumer
behavior. Below are factors that influence consumer behavior
by Kotler (2012):
 Cultural Factors
Culture is defined as “the set of basic values,
perceptions, wants, and behaviors learned by a member of
society from family and other important institution,” (Kotler
& Armstrong, 1991). Cultural factor is the most fundamental
of consumer’s desires and behaviors. It can be learned as a
set of behavior based on the consumer characteristics and
socialization between them. Every country may have
different culture. Therefore, it becomes essential for the
company to create a product and service that fit the culture
they are implementing in.
 Social Factors
A person’s behavior is strongly influenced by various
groups. A consumer’s behavior in social factors is based on
the direct or indirect interaction that allows the consumer to
influence others in their daily lives. For example, a celebrity
has a status that made their fans purchase goods advertised
by them. As for social media, peoples are surrounded by
different kind of advertisement, information and testimony
that may influence their buying behavior. In addition, family
also indirectly influences people buying behavior. Family
creates a core values that affect; what are people going to
purchase in the future. Social factor is kind of external
stimuli that affect people behavior in purchasing a product.
 Personal or Individual Factors
Personal characteristics that influence consumer buying
behavior are the following: age and life-style stage,
occupation, economic situation, lifestyle, and more, (Kotler
& Armstrong, 1991). Different characteristics between
people's personality may cause a different purchase. Personal
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factors are unique to a particular person. Some of them can
be family situation, work, marital status, age, demographic,
sex or the experiences on your life and all of them can
influence the decision of the purchase (Pérez & Martinez,
2008). People living pattern influence the way of people
perceives themselves, and what they are going to buy to meet
their own satisfaction.
 Psychological Factors
 Motive, is a needs that appear in a certain time. Some
needs are biogenic, that is, the need arising from
biological pressures. And other needs are psychogenic,
that is the need arising from psychological distress.
Depending on the phase in which person it is, people may
need different products to fulfill their needs.
 Perception is a need that based on people senses after
experiencing a certain product.
 Attitude and knowledge, according to Pérez & Martinez
(2008), the knowledge or opinion that people have about a
product can be influenced by the company. With new
information or free sample the companies can
manipulated the image of a product. They can use this
when they want to introduce a new product in the market
and also if they want to change the image or the concept
of one existing product.
B. The Consumer Decision Process
According to Stankevich (2017), the consumer decision
process consists of five activities. The first is need or
problem recognition. Problem recognition happens if the
consumer needs something. This need can occur immediately
depends on consumer behavior or mood, it called internal
stimulus. On the other hand, external stimulus occurs if
consumer purchase something affected by outside influences.
The second activities is information search, after finding
what their needs, consumer starts an information search. This
activity is a continuation of problem recognition which
includes every activity to find, develop and analyze the
various possible actions in the framework of decision-
making. At the third stage evaluation of alternative, consist
of an analytical process of consumer decision making. The
consumer tends to decide which one of many alternatives will
give them the best deal. The best deal attribute can be the
price, brand, quality etc. After the consumer evaluate
between alternatives, purchase is form of implementation of
consumer decision making after evaluating in the third stage.
On the last stage, post-purchase is an activity of evaluating
their purchase. It may result satisfaction or dissatisfaction.
C. Service Quality
Quality is a dynamical condition of products, services,
people, processes and environments that meet or exceed
expectations (Tjiptono, 2004). This suggest that the definition
of service quality is an effort of fulfilling consumer needs
and desire by delivering a good service to meet their
IJISRT18DC237 www.ijisrt.com
International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
expectation (Tjiptono, 2008). Service quality can be
discovered by comparing the consumer perception toward the
service their received from the company. If the consumer
satisfied with the service provided by the company, it means
the service quality perceived by the consumer is able to fulfill
their expectation On the contrary, if the service provider
cannot fulfill consumer expectation, it means the company's
service quality is poor and may cause dissatisfaction.
III. RESEARCH METHODOLOGY
A. Quantitative Analysis
 Validity Test
Validity test is a tool to find out valid instrument items
and or invalid instrument items. The statistical formula used
for the validity test is product moment correlation coefficient.
The function of this formula is to find out the validity on
each research questionnaire item. Dajan (1991) suggested,
the statistical formula is as follows
Information:
R : The correlation coefficient between x and y rxy
n : Subjects amount
X : Item score
Y : Total score
∑X : The amount of item scores (X)
∑Y : The amount of total score (Y)
∑X2 : The amount of squared item score (x2)
∑Y2 : The amount of squared total score (y2)
 Reliability
Reliability test is a tool to measure the consistency of a
research study. Alpha Cronbach statistical formula was used
to measure the questionnaire reliability.
r = Instrument reliability score
k = Number of questions
(Σ σ2b ) = Number of item variance
(σ 2 b ) = Variance total
B. Classical Assumption Test
The purpose of the classical assumption test is to
determine the consistency of regression equation has
precision, consistent and unbiased.
 Multicollinearity test
Multicollinearity test aims to detect a correlation
between variable in the regression. Correlation between
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variables can be detected by analyzing the tolerance value
and Variance Inflation Factor (VIF).
 Normality test
Normality test aims to determine whether the regression
model, the dependent variable or both of them has normal
distribution or not. A good regression model has normal
distribution or closed to normal. Normal distribution data can
be seen from data dissemination (marked by a dot) on the
diagonal axis in decision making histogram. If the data
spreads around diagonal line or following the line direction,
then the regression model has normal distribution.
 Multiple Linear Regression Analysis
Multiple linear regression analysis is used to find out
the influence of independent variable to dependent variable.
The independent variables can be continuous or categorical.
Y = b1X1 + b2X2 + b3X3 + e
Y = Customer satisfaction
bl = Regression coefficient of service quality
b2 = Regression coefficient of price
b3 = Regression coefficient of product quality
Xl = Service quality
X2 = Price
X3 = Product Quality
e = Coefficient standard error
C. Hypothesis testing
Hypothesis testing consists of:
 T-test
T-test used to measure one independent variable influence
to describe the dependent variable as a whole. A t-test
analyzes two populations distributed normally and the
difference probability between populations. The null
hypothesis (Ho) is to ensure if HO: =0, which means the null
hypothesis (Ho) means, an independent variable is
significance explanation of dependent variable. In the other
words, there is no difference between the two sample
population, and the population sample reflects the actual
result. Alternative hypothesis (β1) means a variable
parameter is not equal to zero (HO: β1). It means the variable
parameter is a significant explanation of the dependent
variable (Kuncoro, 2001).
The significant level of decision making is (α) = 0,05.
The decision-making is determined by the following rules:
 If significant level of t value > 0,05 or t value < t table,
Ho is acceptable.
 If significant level of t value < 0,05 or t value > t table,
Ho is rejected
IJISRT18DC237 www.ijisrt.com
International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
Additional Information: t value obtained by using α =
0,05 with dk = n-k1 (100-3-1)= 96.t table obtained =7,661
Based on the value of α = 0,05 and dk=96.
 F-test
F-test often used to compare statistical model in the set
of data. Under the null hypothesis (Ho), F-test determines
whether two populations have a normal distribution or not.
Basically, F-test shows whether the entire intangible variable
included in the model has a similar effect to the tangible
variable. The null hypothesis (Ho) to be tested is whether all
parameters in the model are equal to zero (Ho = β1 = β2 =
....... = βK = 0). In the other words, according to the formula,
the entire of the independent variables are not a significant
explanation of the dependent variable. Alternatively, HO =
β1 ≠ β2 ≠ .... ≠ βK ≠ O is an opposite of the first statement.
Based on the formula, not every parameter equal to zero, it
means the entire of independent variable simultaneously a
significant explanation of the dependent variable (Kuncoro,
2001)
The test criteria determined by the following rules:
 If significance level of F > 0,05 or F value < F table, then
Ho is accepted
 If significance level of F < 0,05 or F value < F table, then
Ho is rejected
Additional information: F value obtained by using
dk1=3 (intangible variable) with dk2=n-k-1 (100-3-1)= 96.
Based on dk1=3=0,05 and dk2=96, F table obtained =2.70
(Sugiyono, 2004)
 The Coefficient of Determination
The Coefficient of determination (R2) is used to
measure a model’s ability in explaining the variation of the
dependent variable. The coefficient of determination is
between zero and one. If the R2 has a small value, it means
the ability of independent variables to explain the variation of
the dependent variable is very limited. On the contrary, if the
R2 value close to one, it means the independent variables
provide almost all of the information needed to predict
dependent variations (Kuncoro, 2001)
IV. RESULT AND DISCUSSION
The respondents in this study are all company’s
consumers’. The total amount of selected consumers is 100
respondents with the following identification in the
questionnaire: Name, Age, Sex, Education and Job. The
respondents’ categorized based on three category; Individual,
Retail, and Industry. The percentage and frequency can be
seed in the table 1:
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Volume 3, Issue 12, December – 2018 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165

Frequency Percentage 0,60. The reliability test results of quality service’s variables
can be seen in Table 3.
Individual 50 50.0
Retail 25 25.0 Reability Statistic
Industry 25 25.0 Cronbach's
Total 100 100.0 Alpha N of Items
Table 1:- Distribution of respondents
.977 14
A. Quantitative Analysis Table 3:- Reliability Test Results
Quantitative analysis perceived through the quality of
product and service on a par with price and customer According to the table above, each variable of service
satisfaction. If the price of product and service affordable by quality variables, price, location and customer satisfaction
the costumers’, the quality of product and service should be rated >0,60 with Cronbach Alpha. Thus, the reliability test
equal. In practice, sometimes companies do not pay attention result of all variable is positive or reliable.
to the product and service quality when the price is
affordable. Therefore the price and the quality of product and B. Classical Assumption Test
service are not equal.
 Multicollinearity Test
 Validity Test Multicollinearity test aims to find out the correlation
Validity test used to measure the validity of a between independent variables in the regression model
questionnaire. The basis of decision making used in this test Multicollinearity problem occurred if regression model has
is significance test by comparing the value of r value with r correlation between variables. A good regression model,
table. For 100 sample taken, the value of r table = 0,532. This should not have any correlation between independent
test is performed when the question items is more than one. variables. The multicollinearity absence can be detected by
The validity test of decision making is based on:: measuring VIF value (Variance Inflation Factor) (Ghozali,
2006).
If the value of r value > r table, then the questionnaire item is
valid If VIF value < 10
If the value of r value < r table, then the questionnaire item is TOLERANCE value > 10%
not valid
According to the statements above, the research result
Question r-value r-table Remark can be seen in the table below.
Question 1 0,981 0,532 Valid
Question 2 0,927 0,532 Valid Collinearity Statistics
Question 3 0,892 0,532 Valid Model Tolerance VIF
Question 4 0,885 0,532 Valid Service_Quality .162 6.171
Question 5 0,920 0,532 Valid Price .239 4.182
Question 6 0,882 0,532 Valid Product_Quality .448 2.234
Question 7 0,983 0,532 Valid a. Dependent Variable: Customer_satisfaction
Question 8 0,781 0,532 Valid Table 4:- Multicollinearity Test Results
Question 9 0,949 0,532 Valid
Question 10 0,970 0,532 Valid  Normality test
Normality test aims to check the normality of the
Question 11 0,727 0,532 Valid
distribution of the regression model, the dependent variables
Question 12 0,892 0,532 Valid and independent variables or both of them. A good regression
Question 13 0,980 0,532 Valid model can be measured according to the data spread (marked
Question 14 0,951 0,532 Valid by a dot) around diagonal axis in the histogram. If the data
Table 2:- Validity Test Table spread far from the diagonal axis, it means the regression
model does not fulfill the normality assumption. In this
 Reliability test research, by using SPSS, the data spread around the diagonal
Reliability test is used to measure a variable’s axis. This suggests that the regression model fulfill the
consistency. The variable in the questionnaire is reliable if normality assumption.
the respondent’s answer is stable and consistent. A variable
can be categorized as reliable if rated by Cronbach Alpha >

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Volume 3, Issue 12, December – 2018 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
 Multiple Linear Regression Analysis 2. According to t value and t table :
According to the multiple regressions calculation by The partial t-test in multiple regression analysis aims to
using SPSS between service quality (X1), price (X2) and determine whether the independent variable (X) is partially
location (X3) on Customer satisfaction (Y) the result of the significant to the variable (Y). However, determining the
calculation presented in the table 5 below: influence of independent simultaneously with dependent
variable is called F-test.
Standardized  If the value of t value > t table then the independent
Unstandardized Coefficients Coefficients variables affect the dependent variable.
 If the value of t value < t table then the independent
Model B Std. Error Beta t Sig. variable does not affect the dependent variable.
(Constant) -.165 13.802 -.012 .911 3. According to SPSS output in significant value variable.
Service_Quality -.159 .391 -.132 -.406 .693  If the value of Sig. < 0,05 then the independent variable
have significant effect to the dependent variable.
Price .524 .211 .663 2.482 .030  If the value of Sig. > 0,05 then the independent variable
Product_Quality .593 .236 .491 2.511 .029 does not have significant effect to the dependent variable.

a. Dependent Variable: Customer_satisfaction The t-test calculation result by using SPSS program can be
Table 5:- Summary of Regression Estimation Results seen in the Table 6:

Based on the table above, the regression formula Standardized

formed in this regression test is:
Unstandardized Coefficients Coefficients
Y = -0,132 X1 + 0,663 X2 + 0,491X3
Model B Std. Error Beta t Sig.
The formula above supports these statements: (Constant) -.165 13.802 -.012 .911
 The amount of regression coefficient variable value in
service quality category is -0,132. The negative value Service_Quality -.159 .391 -.132 -.406 .693
shown, means the service quality does not have any effect Price .524 .211 .663 2.482 .030
to customer satisfaction.
 The amount of regression coefficient variable in price Product_Quality .593 .236 .491 2.511 .029
category is 0,663. The positive value shown means, of the
perception of the company price is good, the customer
a. Dependent Variable: Customer_satisfaction
satisfaction Will increase Table 6:- T-Test Result
 The amount of regression coefficient variable value in
location category is 0,491. The positive value means, if  F-Test
the perception of the company location is good, the The parameter used in f-test is the comparison result
customer satisfaction will increase. between f-value> f-table. The influence test between
independent variable with dependent variable simultaneously
 Hypothesis Test performed with f-test. The result can be seen in the 7 table:

 T-Test Sum of
T-test is used to partially find out the influence between
service quality (X1), price (X2), and product quality (X3) on Model Squares df Mean Square F Sig
customer satisfaction (Y).
Regression 39489.523 3 13163.174 15.845 .000b
1. Hypothesis formulation :
 Ho : β < 0 : There is significant influence between service
Residual 9238.21 11 830.746
quality (X1), price (X2), and location (X3) on customer Total 49627.733 14
satisfaction (Y).
 Ha : β < 0 : There is significant influence between service a. Dependent Variable: Customer_satisfaction
quality (X1), price (X2), and product (X3) on customer b. Predictors: (Constant), Service_Quality, Price, Product_Quality
satisfaction (Y).
Table 7:- F-Test Result

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Volume 3, Issue 12, December – 2018
 Determination Coefficient
The influence of service quality, price and location to
customer satisfaction can be seen from the value of adjusted
R². The calculation is listed below:
Adjusted R Std. Error of Durbin-
Model R R Square Square the Estimate Watson
.901a
1 .812 .761 28.823 1.794
a. Predictors: (Constant), Service_Quality, Price, Product_Quality
b. Dependent Variable: Customer_satisfaction
Table 8:- Coefficient of Determination
V. CONCLUSION
Based on the IV.8 table, shows the calculation result of
f-test value. The value of f-value15,845 with significance
level value 0,000<0,05. According to the calculation of f-
table, the value obtained from the formula (dk1=3=0,05 and
dkk = 100-3-1=96) is 2,70. It means f-value has bigger value
than f-table, that is 15,845 >2,70. As a result from the
calculation, Ho is rejected while Ha is accepted. For this
reason, the service quality, price, and product quality
simultaneously influence the customer satisfaction. It can be
inferred from the statement, the customers are already pay
their attention to the products quality provided by the
company and willing to pay for that quality. If the three
variables mentioned before can be fulfilled by the company
(service quality, price and product quality), the level of
dissatisfaction can be lowered, and hold down the
competitor’s value in the same manner or variables.
International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
[9.] Identification of consumer satisfaction in services: a
study on agribusiness dealers Mario Gilberto
Lütkemeyer Filho, Guilherme Luís RoeheVaccaro
[10.] Consumer Satisfaction Index – as a Base for Strategic
Marketing Management Karolina Ilieska 1 University
“St Kliment Ohridski”–Bitola, Faculty of Economics-
Prilep, Gjorce Petrov bb, 7500 Prilep, Macedonia
[11.] C. Fornell, “A national consumer satisfaction
barometer: The Swedish experience,” Journal of
Marketing, vol. 56, no. 1, pp. 6-21, Jan. 1992
[12.] Kotler, P. and Armstrong, G. (1991) Principles of
Marketing. 5th edn. Englewood Cliffs, NJ: Prentice
Hall.
[13.] UNIVERSITY OF HALMSTAD School of Business
and Engineering Dissertation Marketing- Bachelor’s
Degree CONSUMER BEHAVIOUR Dissertation in
"Consumer Behaviour", 15 Credit point level 2008-05-
22 Authors: Sara Pérez Bárbara Martínez
[14.] Journal of International Business Research and
Marketing Volume 2, Issue 6, 2017 journal homepage:
www.researchleap.com Explaining the Consumer
Decision-Making Process: Critical Literature Review
Alina Stankevich The Faculty of Behavioural,
Management and Social sciences (BMS), University
of Twente, Enschede, the Netherlands.

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