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Effect of Service Quality and Price on Customer Satisfaction: Study at a Heavy Equipment Company in the City of Bandung

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Abstract

Researchers researched to determine the effect of service quality and price on customer satisfaction at one of the heavy equipment companies in the city of Bandung. Moreover, this research analyses the factor that has the most dominant influence on service quality and price on customer satisfaction at one of the heavy equipment companies in Bandung. As many as 57 consumers became the object of this study using a questionnaire. Based on research using path analysis, it can see that the variables of service quality and price at one of the heavy equipment companies in the city of Bandung are declared valid. Therefore, the conclusions and considerations related to the research results are paying attention to service quality and price to increase customer satisfaction. The results of the study show that Service Quality (X1) has a significant influence on Customer Satisfaction (Y). then Price (X2) significantly influences Customer Satisfaction (Y). To improve service quality, companies should pay more attention to service quality dimensions because a slight deficiency can satisfy consumers and impact consumer satisfaction. For example, if there are bad complaints, it will reduce consumer confidence in the product. Therefore, if a complaint occurs, the company must restore customer trust by evaluating the quality of service properly so that customers feel satisfied, one of which is by giving customer surveys when customers are and after using products/services so that customer feelings can be maintained. In terms of price, companies should evaluate more when setting prices for a product/service, such as considering market conditions and the number of competitors. Then, the company can package excellent and attractive price offers such as discounts or bonuses to customers to increase customer satisfaction.
Jurnal Computech & Bisnis, Vol. 16, No. 2, Desember 2022, 189-198
ISSN (print): 1978-9629, ISSN (online): 2442-4943
The Effect of Service Quality and Price on Customer Satisfaction
(Study at a heavy equipment company in the city of Bandung)
Galih Kharisma Bulan1, Irena Larashati2
Sekolah Tinggi Ilmu Ekonomi, Pasundan, Bandung, Indonesia1,2
kharismabulan@gmail.com1, irena@stiepas.ac.id2
Abstract
Researchers researched to determine the effect of service quality and price on customer satisfaction at one
of the heavy equipment companies in the city of Bandung. Moreover, this research analyses the factor that
has the most dominant influence on service quality and price on customer satisfaction at one of the heavy
equipment companies in Bandung. As many as 57 consumers became the object of this study using a
questionnaire.
Based on research using path analysis, it can see that the variables of service quality and price at one of
the heavy equipment companies in the city of Bandung are declared valid. Therefore, the conclusions and
considerations related to the research results are paying attention to service quality and price to increase
customer satisfaction.
The results of the study show that Service Quality (X1) has a significant influence on Customer Satisfaction
(Y). then Price (X2) significantly influences Customer Satisfaction (Y). To improve service quality,
companies should pay more attention to service quality dimensions because a slight deficiency can satisfy
consumers and impact consumer satisfaction. For example, if there are bad complaints, it will reduce
consumer confidence in the product. Therefore, if a complaint occurs, the company must restore customer
trust by evaluating the quality of service properly so that customers feel satisfied, one of which is by giving
customer surveys when customers are and after using products/services so that customer feelings can be
maintained. In terms of price, companies should evaluate more when setting prices for a product/service,
such as considering market conditions and the number of competitors. Then, the company can package
excellent and attractive price offers such as discounts or bonuses to customers to increase customer
satisfaction.
Keywords : Service Quality, Price, Customer Satisfaction
Abstrak
Peneliti melakukan penelitian dengan tujuan untuk mengetahui pengaruh kualitas pelayanan dan harga
terhadap kepuasan pelanggan Pada Salah Satu Perusahaan Alat Berat di Kota Bandung. Dan penelitian ini
untuk menganalisis faktor yang paling dominan pengaruhnya antara kualitas pelayanan dan harga terhadap
kepuasan pelanggan Pada Salah Satu Perusahaan Alat Berat di Kota Bandung, yang menjadi objek
penelitian ini adalah sebanyak 57 konsumen dengan menggunakan kuesioner.
Berdasarkan penelitian menggunakan analisis jalur, terlihat abhwa variabel kualitas pelayanan dan harga
di Pada Salah Satu Perusahaan Alat Berat di Kota Bandung dinyatakan valid. Adapun kesimpulan dan
pertimbangan sehubungan dengan hasil penelitian adalah memperhatikan kualitas pelayanan dan harga
guna meningkatkan kepuasan pelanggan.
Hasil penelitian menunjukan bahwa Kualitas Pelayanan (X1) memiliki pengaruh yang signifikan terhadap
Kepuasan Pelanggan (Y). selanjutnya Harga (X2) memiliki pengaruh yang signifikan terhadap Kepuasan
Pelanggan (Y).
Untuk meningkatkan kualitas pelayanan sebaiknya perusahaan lebih memperhatikan lagi dari dimensi
kualitas pelayanan karena sedikit kekurangan dapat mengecewakan konsumen dan akan berdampak pada
ketidakpuasan konsumen. Jika terdapat keluhan yang buruk tentu sudah mengurangi kepercayaan
konsumen terhadap produk tersebut. Jika terjadi komplain maka perusahaan harus mengembalikan
kepercayaan pelanggan kembali yaitu dengan mengevaluasi kualitas pelayanan dengan baik sehingga
pelanggan merasakan puas, salah satunya dengan cara memberikan customer survey disaat pelanggan
sedang dan sesudah menggunakan produk/jasa agar perasaan pelanggan bisa terus terjaga. Dari segi harga
sebaikya perusahaan harus lebih mengevaluasi ketika akan menetapkan harga terhadap sebuah produk/jasa,
seperti mempertimbangkan kondisi pasar dan banyaknya kompetitor. Apabila memungkinkan perusahaan
bisa mengkemas penawaran harga yang baik dan menarik seperti adanya diskon atau bonus kepada
pelanggan sehingga kepuasan pelanggan akan meningkat.
Kata kunci : Kualitas Pelayanan, Harga, Kepuasan Pelanggan
190
Bulan,
The Effect of Service Quality and Price on Customer Satisfaction
(Study at a heavy equipment company in the city of Bandung)
INTRODUCTION
Developments in the business world today are
increasingly stringent. This increasingly fierce
competition requires business people to be able
to maximize the performance of their companies
in order to compete in the market. Companies
must be able to be creative and innovate to
survive, and most importantly, the company
continues to strive to learn and understand the
needs of its customers. Understanding a need,
wants, and demands of customers will provide
important input for companies to design
marketing strategies in order to create
satisfaction for their customers (Aditia, Komara,
Roslina, & Jatmika, 2021). Companies must
place an orientation on customer satisfaction as
the primary goal. The main key for companies to
win the competition is to provide value and
satisfaction to customers by delivering quality
products and services at competitive prices.
Customer satisfaction or dissatisfaction is part of
the customer experience of a product or service.
Based on experience from buying a
product/service, customers tend to build specific
values. This value will impact customers'
comparisons with competitors from products or
services from the previous purchase process
(Alzoubi & Inairat, 2020). For example, suppose
a company provides good-quality products or
services. In that case, it should meet customer
expectations and motivate customers to buy these
products, ultimately increasing sales to the
company.
According to Aswati, Komara, Satria, & Roslina
(2022), service quality is a product offering
dimension that generates customer benefits. The
role of service quality directly or indirectly will
affect sales. Service quality is a beneficial
starting point for increasing sales, so good
service quality can create consumers who are
satisfied with the company's services so that
consumers are interested and want to buy
products. In addition to service quality, pricing
decisions are the company's selection of the
general price level that applies to certain services
relative to competitors' price levels. The role of
price directly affects customer satisfaction. Price
has a significant influence on consumers' buying.
The product price factor has always been an
essential factor in the context of every
customer/consumer purchasing process.
Based on the Customer Satisfaction pre-survey
results, it produces an average score of 3.18. On
the other hand, the dimensions of the complaint
handling system and consumer suggestions have
the lowest average value, with an average score
of 2.9. These results indicate that the system for
handling consumer complaints and suggestions
cannot increase customer satisfaction.
Customer satisfaction is the goal of every
company. This satisfaction assesses the level of
consumer pleasure related to meeting consumer
needs. Once, the importance of customer
satisfaction for a company because it is a factor
that has a positive impact on the sustainability of
a company, and Fernandes (2018) strengthens the
theory, which states that price and service quality
has a significant effect on customer satisfaction.
Based on the results of the pre-survey price, the
overall average score is 3.10. So, where the
dimension of affordability has the lowest average
value of 2.8, these results indicate that price
affordability cannot increase customer
satisfaction. Then the next lowest dimension is
191
Bulan,
The Effect of Service Quality and Price on Customer Satisfaction
(Study at a heavy equipment company in the city of Bandung)
price competitiveness, with an average score of
2.95. So it shows that price competitiveness also
cannot increase customer satisfaction.
Price is a factor that determines the success of a
business because price is an essential
determinant of customer satisfaction. The price
offered by the Hotel Bilique company still needs
to be by the facilities obtained. Price, seen from
the consumer's point of view, is often used as an
indicator of value. Consumers also have high
perceptions and expectations if the product
applies a high price. Price is a psychological
element that plays an essential role in consumer
response to products (Fida, Ahmed, Al-Balushi,
& Singh20, 20). Therefore, price is one factor
that influences consumer satisfaction after
buying a service or product. Based on research
conducted by Huang, Lee, & Chen (2019), price
significantly affects customer satisfaction. So,
the more competitive the price, the more likely
there will be an increase in customer satisfaction.
Based on the results of the pre-survey of service
quality, the overall average score is 3.35. The
reliability dimension has the lowest average
value, with an average value of 3.15, and the
dimension of physical evidence has the highest
average value of 3.6.
Companies also need to pay attention to quality
variables in providing convenience to
consumers. Companies need to pay attention to
service quality attractively and adequately to
influence consumers because service quality also
makes it easier for consumers to see consumer
satisfaction. In line with the opinion of Janahi &
Al Mubarak (2017), service quality is the
expectation of the level of excellence and control
over this advantage to meet consumer needs.
Based on the problem's background, the research
problem's formulation is how significant service
quality and price influence customer satisfaction.
At the same time, this study aimed to determine
the magnitude of the influence of service quality
and price on customer satisfaction.
METHOD
The type of research in this study is a survey. In
survey research, information gathering responses
from respondents using a questionnaire. Survey
research is data collection using a
questionnaire/interview instrument to obtain
responses from respondents. The method used is
quantitative, with the type of causality
associative relationship, namely research to
reveal causal problems between two or more
variables.
To test the research hypothesis, the number of
samples in this study was 57 respondents from
the number of consumers who had made orders
and made transactions at one of the heavy
equipment companies in Bandung.
The independent variables (X) in this study are:
a) Service Quality
The definition of service quality is an effort to
fulfill the needs and desires of consumers and the
accuracy of their delivery to offset consumer
expectations (Kartikasari, & Albari, 2019). So
that quality is a dynamic condition associated
with products, services, people, processes, and
the environment that meets or exceeds
expectations (Kartikasari, & Albari, 2019). So
that quality is a dynamic condition associated
with products, services, people, processes, and
the environment that meets or exceeds
expectations (Kartikasari, & Albari, 2019).
192
Bulan,
The Effect of Service Quality and Price on Customer Satisfaction
(Study at a heavy equipment company in the city of Bandung)
Indicators of service quality according to
Megawati (2021).:
• Reliability
• Responsiveness
• Guarantee and Assurance
• Empathy
• Physical Evidence
b) Price
Price is an exchange of monetary units or other
measures (including other goods and services) to
obtain ownership rights or use of an item or
service (Rohiman, Riadi, Adinata, & Suherman,
2022)
Price indicators, according to Stanton (Özkan,
Süer, Keser, & Kocakoç, (2020).
• Price Affordability
• Appropriate price with product quality
• Price competitiveness
• Price compatibility with benefits
The dependent variable (Y) in this study is
customer satisfaction. According to Pratama,
Heryanto, Dwiyanisa, & Megawati(2021), the
definition of customer satisfaction is a person's
level of satisfaction after comparing
(performance or results) that felt compared to his
expectations. According to Prentice, Dominique
Lopes, & Wang (2020), attribute indicators of
customer satisfaction consist of the following:
• System for handling consumer complaints and
suggestions
• Company reputation survey system
• Consumer analysis system
Test the data quality using validity and reliability
tests on questionnaires filled out by respondents.
In this research, verification analysis intends to
determine the research results related to service
quality and price on customer satisfaction. The
analytical method used by the author is path
analysis, correlation coefficient, multiple linear
regression, and the coefficient of determination.
RESULTS AND DISCUSSION
The characteristics of the respondents are
presented in table 1. below:
Table 1.
N
o.
Presentat
ion
Freque
ncy
Characteri
stics
1.
Gender
-Woman
-Man
17
40
30%
70%
2.
Age
-20-25
Years
-26-30
Years
-31-35
Years
-35
Years
3
23
26
5
5%
40%
46%
9%
From the results of processing the data in table 1.
that out of 57 respondents, 40 were male, and 17
were female. Men make up the majority in this
study with a percentage of 70%, and women are
lower with a percentage of 30%. Meanwhile,
from the results of data processing regarding age,
out of 57 respondents, there were three
respondents (5%) aged 20-25 years, 23
respondents (40%) aged 26-30 years, 26
respondents (46%) aged 31-35 years, and five
respondents (9%) aged > 35 years.
193
Bulan,
The Effect of Service Quality and Price on Customer Satisfaction
(Study at a heavy equipment company in the city of Bandung)
Table 2. Validity Test and Reliability Test
X1
X2
Y
Corel
ation
Ite
m
Corel
ation
Ite
m
Corel
ation
0.453
1
0.404
1
0.526
0.409
2
0.471
2
0.380
0.493
3
0.438
3
0.634
0.678
4
0.455
4
0.621
0.425
5
0.582
5
0.686
0.376
6
0.627
6
0.388
0.557
7
0.656
7
0.621
0.488
8
0.627
8
0.556
0.501
9
0.656
9
0.455
0.567
10
0.404
10
0.653
0.455
11
0.631
11
0.653
0.668
12
0.465
0.671
13
0.487
0.498
14
0.428
0.514
15
0.563
0.671
0.483
0.668
0.567
Cronbach Alpha
0,861
0,805
0,783
Table 2 shows that the service quality variable
consists of 19 statement items, price consists of
15 statement items, and customer satisfaction
consists of 11 statement items with a correlation
value above 0.300 (valid). For the reliability test,
the Cronbach alpha value is above 0.700 (valid).
Based on the calculation results, the variable
(X1) is a path coefficient of 0.220, and the
variable (X2) has a path coefficient of 0.612. As
shown in Figure 1 below
Figure 1. Path analysis results
So, the direct effect of service quality on
customer satisfaction is 0.0484 or 4.84%. So the
direct effect of price on customer satisfaction is
0.375 or 37.5%. So service quality's direct and
indirect effect on customer satisfaction is 0.0152
or 1.52%. So, the indirect effect of price on
customer satisfaction is 0.0152 or 1.52%. So, the
quality of service and price on customer
satisfaction is 45.3%.
Based on the theory, service quality is an effort
to fulfill consumer needs and desires and the
accuracy of delivery in balancing consumer
expectations (Yanelka, Heryanto, Dwiyanisa, &
Megawati, 2022). Therefore, good service
quality is an essential factor in the success of a
business. Research conducted by Zhong, &
Moon, (2020). states that service quality
significantly influences customer satisfaction.
Thus, a company is required to maximize the
quality of its services in order to be able to create
customer satisfaction.Based on research on
service quality variables, most customers at a
heavy equipment company in Bandung City
X1
X2
Y
0,113
0,612
0,220
€=
R2=
194
Bulan,
The Effect of Service Quality and Price on Customer Satisfaction
(Study at a heavy equipment company in the city of Bandung)
agreed that the service quality variable on
customer satisfaction examined in this study was
quite good. This can be seen from the answers to
as many as 19 statements representing service
quality variables that describe good or bad
service quality. All of these statements are the
results of the elaboration of 5 (five) indicators
raised by researchers in this study. These
indicators include reliability, responsiveness,
assurance and certainty, empathy, and tangibles.
The results of previous data processing indicate
that Ha1 is acceptable. Namely, service quality
has a positive and significant effect on customer
satisfaction. Based on the acquisition of a t count
of 2.174 > t table of 1.673 with a significance
level of 0.000 <0.05 and a positive regression
coefficient of 0.220, the service quality variable
significantly affects customer satisfaction
variables.
Based on the results of path analysis, it is known
that service quality (X1) has a positive, although
low, effect on the customer satisfaction variable
(Y).
This is also by Huang, Lee, & Chen research
(2019) titled " The influence of service quality on
customer satisfaction and loyalty in B2B
technology service industry." which states that
there is a positive influence of service quality on
customer satisfaction.
Based on the theory, according to Wantara &
Tambrin (2019), the price is money plus some
goods and their services. Price is often used as an
indicator of value when the price is associated
with the benefits of a good or service. Pasharibu,
, Paramita & Febrianto, (2018), argues that if the
company sets prices, not on the product's
benefits, it will reduce customer satisfaction, and
vice versa. On the other hand, if the company sets
prices according to the benefits received, it will
increase customer satisfaction.
Based on research on price variables, most
customers agree that the price variable on
customer satisfaction in this study is quite good.
This can be seen from the answers to as many as
15 statements representing the price variable
which describes the good or bad prices. All of
these statements are the results of the elaboration
of 4 (four) indicators raised by researchers in this
study. These indicators include price
affordability, compatibility with products, price
competitiveness, and compatibility with benefits.
The data processing results show that Ha2 is
acceptable. Namely, the price has a positive and
significant effect on customer satisfaction. Based
on the acquisition of a t count of 6.046 > t table
of 1.673 with a significance level of 0.000 <0.05
and a positive regression coefficient of 0.612, it
can be concluded that the price variable has a
significant effect on customer satisfaction.
Based on the results of the path analysis, it is
known that the price (X2) on the customer
satisfaction variable (Y) is 39%, and the effect is
moderate so that the price variable (X2) has a
more dominant effect on the Y variable than the
service quality variable (X1).
This is also by Mensah research (2018). entitled
" Effects of service quality and customer
satisfaction on repurchase intention in restaurants
on University of Cape Coast campus" which
states that price is proven to affect the level of
customer satisfaction.
Based on the theory, according to Phuong, & Dai
Trang research (2018). customer satisfaction is a
person's level of satisfaction after comparing
195
Bulan,
The Effect of Service Quality and Price on Customer Satisfaction
(Study at a heavy equipment company in the city of Bandung)
(performance or results) that is felt compared to
his expectations.
Based on research on customer satisfaction
variables, which consist of 11 statements
representing customer satisfaction variables that
describe good or bad customer satisfaction at a
heavy equipment company in Bandung. These
statements are the results of elaborating 3 (three)
indicators in this study. These indicators include
a system for handling consumer complaints and
suggestions, a company reputation survey
system, and a consumer analytics system.
Based on the results of the simultaneous
significance test (Test F), which aims to
determine how much influence the independent
variables jointly have on the dependent variable.
The test results obtained a calculated F of 22.405,
more significant than the F in table 3.16.
Therefore, it can be concluded that service
quality and price positively affect customer
satisfaction. The significance level of 0.000 is
less than α (0.05), then H03 is rejected, and Ha3
is accepted; namely, the independent variables
(service quality and price) have a significant
effect simultaneously or together on the
dependent variable (customer satisfaction).
From the path analysis, it can be seen that the
price variable is the variable that has the most
significant influence on customer satisfaction,
namely 0.612, which means that if the company
increases the price of one unit, customer
satisfaction will increase by 0.612. The results of
this study indicate that if there is a change in the
independent variables, namely service quality,
and price, there will also be a change in customer
satisfaction. This is shown by the results of the R
Square analysis of 0.453, which means service
quality and price influence customer satisfaction,
namely as much as 45.3%. In comparison, the
remaining 54.7% is accounted for by other
variables not examined in this study.
The results of this study support Yulisetiarini, &
Prahasta research (2019) with the title " The
effect of price, service quality, customer value,
and brand image on customers satisfaction of
telkomsel cellular operators in east Java
Indonesia" which states that all independent
variables, namely service quality and price
together have a significant effect on the
dependent variable is consumer satisfaction.
CONCLUSION
Based on the research results, service quality and
price affect customer satisfaction. So it can be
concluded that service quality and price
positively affect customer satisfaction. However,
based on research, it is known that other variables
need to be discovered in this study, such as
promotion, brand image, product quality, and
other factors that have the potential to impact
customer satisfaction.
Based on data analysis, two indications can
increase customer satisfaction: providing
feedback to provide customer satisfaction.
Moreover, the company further increases its
responsiveness to customer complaints. This can
be overcome by increasing human resources to
handle consumer complaints and suggestion
handling systems, such as finding people who are
experienced/skilled in the field of customer
service so that all complaints and suggestions
from customers are resolved, and customers
provide good feedback.
196
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The Effect of Service Quality and Price on Customer Satisfaction
(Study at a heavy equipment company in the city of Bandung)
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