JRSSEM 2023, Vol. 02, No. 7, 1315 – 1327
E-ISSN: 2807 - 6311, P-ISSN: 2807 - 6494
DOI : 10.36418/jrssem.v2i07.362 https://jrssem.publikasiindonesia.id/index.php/jrssem/index
ANALYSIS OF THE INFLUENCE OF PRODUCT PRICE AND
SERVICE QUALITY ON CONSUMER LOYALTY AT COFFEE
HARBOR SHOP KEMAYORAN USING ELECTRONIC WORD
OF MOUTH AS A MODERATING VARIABLE
Lukyiana
1
Albert Nurudin
2
Universitas 17 Agustus 1945 Jakarta, Indonesia
*
e-mail: Lukiyana50@gmail.com, albertnurudin09@gmail.com
*Correspondence: Lukiyana50@gmail.com
Submitted
: 24
th
January 2023
Revised
: 13
th
February 2023
Accepted
: 20
th
February 2023
Abstract: This study aims to analyze (1) the effect of product prices on Harbor Coffee Consumer
Loyalty. (2) the influence of Service Quality on Coffee Harbor Consumer Loyalty. (3) the effect of
product prices on consumer loyalty with electronic word of mouth as a moderating variable. (4)
the influence of Service Quality on Consumer Loyalty with Electronic Word of Mouth as a
moderating variable. The research population is all consumers (3) the effect of product prices on
consumer loyalty with electronic word of mouth as a moderating variable with a sample of 30
respondents. Data collection techniques using questionnaires through the stages of validity and
reliability testing. The data were analyzed using multiple linear regression and Moderated
Regression Analysis (MRA). This study concludes that (1) Product Prices Affect Consumer Loyalty,
(2) Service Quality Affects Consumer Loyalty, (3) Product Prices and Service Quality Affect
Consumer Loyalty, (4) Electronic Word of Mouth can moderate the effect of Product Price on
Consumer Loyalty. Consumer Loyalty and (5) Electronic Word of Mouth are able to moderate the
influence of Service Quality on Consumer Loyalty.
Keywords: Product Price; Service Quality; Consumer Loyalty; Electronic Word of Mouth; Coffee
Harbor.
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INTRODUCTION
Marketing has a very important role for
trading and service companies.
Maintaining excellence, improving the
quality of products and services by using
attractive marketing strategies and prices
that are appropriate in the eyes of
consumers is a way to maintain their
business life cycle. In addition, service
companies pay attention to service quality,
and atmosphere is also important things to
maintain their business life cycle. According
to (Minarti & Rayhan, 2021) marketing
management is a management activity
based on its function which in essence tries
to identify what consumers need, and how
to fulfill it.
In this era of intense competition, the
number of competing products and
brands, both trade and service, has become
very large. Consumers have a variety of
choices and alternatives, especially in the
field of services. According to (Sucipto,
2020) suggests that service companies
function to create new memorable
experiences for consumers. This is a
challenge for the service company. Most of
the abstract and intangible service
products have aspects that are around the
core of the company which is considered by
consumers. One such aspect is the
environment where service delivery is
located (servicescape). Intense competition
and increasing consumer expectations for a
product, especially service products,
companies must have a way to increase the
proportion of value. One of the businesses
facing tough competition is the cafe
business.
Indonesians are beginning to gravitate
toward more and more coffee shops.
Entrepreneurs may be able to profit greatly
from this phenomenon. People in
Indonesia or customers are presented with
a variety of coffee shop options as a result
of this coffee shop or coffee shop business.
The increasing popularity of coffee shops
among Indonesians can be attributed to
the proliferation of such establishments.
Harbor Coffee is one of the coffee shops in
the Central Jakarta area. The coffee shop
Harbor Coffee can be found at Jl. Serdang,
Kec, Taruna Raya No. 43B, RT.13/RW.4
Kemayoran, the city center of Jakarta. In
2021, this shop was established.
The owner of Harbor Coffee was
ultimately inspired to build a harbor by
collecting restlessness in terms of product
and customer satisfaction. Naturally, the
coffee lovers or coffee connoisseurs in the
Kemayoran area were the driving force
behind the establishment of Harbor Coffee.
Every participant in the Central Jakarta
Coffee Shop industry, including Harbor
Coffee, faces a challenge in surviving and
improving the quality of their products to
differentiate them from rivals given the
large number of competitors. In Central
Jakarta, numerous rivals supply coffee
beverages at reasonable prices and of high
quality. This may cause Harbor Coffee, a
coffee shop, to experience fluctuating sales
levels. To satisfy their customers, coffee
shop business actors must be able to
prioritize the quality of the coffee drink
products they sell.
The product price of an item affects the
level of wages, rent, interest and profit.
Prices are the basic regulator in the
economic system because prices affect the
1317 | Analysis of The Influence of Product Price and Service Quality on Consumer Loyalty at
Coffee Harbor Shop Kemayoran Using Electronic Word of Mouth as A Moderating Variable
allocation of production factors such as
labor, land, capital, and entrepreneurship.
High wage rates attract labour, high-
interest rates attract capital investment,
and so on. As a resource allocator, price
determines what will be produced (supply)
and who will buy the goods and services
produced (demand).
Service quality encourages consumers
to commit to the company's products and
services, which in turn has an impact on
increasing sales from the company because
it creates consumer loyalty. Loyalty is a
commitment from customers to continue
to subscribe to the same product or service,
where the loyalty that is owned by the
customer is not easily influenced by the
circumstances around him. Oliver (in (Rizan
& Arrasyid, 2008) defines loyalty as a strong
commitment to repurchase or subscribe to
a product or service consistently, and is not
easily influenced by the existing
environment or competitors' marketing
efforts, as well as other aspects others that
encourage customers to switch to other
companies.
Other influences influence product
prices and service quality on consumer
loyalty, namely electronic word of mouth.
(Pradana, 2016) put forward electronic
word of mouth (E-Wom), namely internet-
based social communication where web
users can send and receive information
related to products online. Another opinion
from (Sindunata & Wahyudi, 2018)
electronic word of mouth (E-Wom) has a
meaning as a communication medium for
sharing information related to a product or
service that has been consumed between
consumers who do not know each other
and have met before. From the explanation
of the theory above, it can be concluded
that electronic word of mouth (E-Wom) is
communication between social media
users with the aim of providing information
to others.
Referring to previous research written
by (Harianto, 2013) with the title "Analysis
of the Influence of Service Quality, Brand
Image and Atmosphere on Consumer
Loyalty with Consumer Satisfaction as a
Consumer Intervening Variable at Kedai
Deja-Vu Surabaya". The purpose of this
research is to find out about service quality,
brand image, and atmosphere which are
thought to have an influence on consumer
loyalty by mediating customer satisfaction.
This research was conducted at the Deja-Vu
Shop Surabaya, with a sample of 150
consumers as respondents. The
measurement scale is the Likert scale. Data
processing techniques used in this study
are SEM, SEM assumption test, normality
test, and Outliers test Goodness of Fit
Model test. The research results show that:
(a) Service quality has a significant effect on
customer satisfaction at Kedai Deja-vu
Surabaya. (b) Brand Image has a significant
effect on consumer satisfaction. (c) The
atmosphere has a significant effect on
consumer satisfaction, and consumer
satisfaction has a significant effect on
customer loyalty.
Then the second previous research was
(Aryani & Rosinta, 2011) with the title "The
Influence of Service Quality on Customer
Satisfaction in Forming Customer Loyalty".
The purpose of this study is "analyze how
the service quality can affect customer's
satisfaction in shaping customer loyalty" or
analyze how service quality can affect
customer satisfaction in forming customer
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loyalty. This research was conducted on
regular undergraduate and diploma
students at FISIP UI who had eaten at
Kentucky Fried Chicken in 2009 at least
three times. The scale of measurement uses
a Likert scale. The data processing
techniques in this study are the
Measurement Model Test and the
Structural Model Test. The results of this
study indicate that: (a) There is a strong and
positive influence between service quality
variables on customer satisfaction in FISIP
UI students. (b) There is no influence
between service quality and customer
loyalty among FISIP UI students. (c) There is
an influence between customer satisfaction
on customer loyalty in FISIP UI students.
From the two previous studies and the
background that the author has described,
the writer intends to conduct deeper
research related to the effect of product
prices and service quality at coffee harbor
shops with the title "Analysis of the
Influence of Product Prices and Service
Quality on Consumer Loyalty at Coffee
Harbor Shops Kemayoran with Electronic
Word of Mouth as a Moderating Variable,
with a case study on harbor coffee to find
out further whether product prices and
service quality can affect consumer loyalty
with electronic word of mouth as a
moderating variable.
MATERIALS AND METHODS
In this study, researchers conducted
research using a quantitative survey
approach with research variables consisting
of Product Price (X1), Service Quality (X2),
Consumer Loyalty (Y), and Electronic Word
of Mouth (Z). In this study, the authors used
descriptive analysis, namely collecting,
compiling, processing, and analyzing data
in order to present a situation so that
conclusions can be drawn. The population
in this study is 120 people per day who visit
Harbor Coffee, but there is a minimum
number that must be taken by researchers,
namely as many as 30 samples. As stated
(Fitriani & Sugiyono, 2018) which states
that for research that uses statistical data
analysis, the minimum sample size is 30.
Therefore the sample in this study is 30
Harbor Coffee visitors who visited the
place. The sample selection technique is
done randomly or coincidentally meet on
the spot.
By using SPSS from the questionnaire
results, the researcher identified the
research problem, then continued with a
study of the research literature related to
the problems and variables raised in this
study. Then it is developed into a research
framework related to the problem to be
studied, identifying each variable,
hypotheses, and research design
development, determining the techniques
to be used, data collection to data
management as well as producing
discussions and conclusions from this
study.
RESULTS AND DISCUSSION
1. Description of Respondents
Based on the results of distributing
the questionnaires that have been carried
out, the authors then conducted a test
1319 | Analysis of The Influence of Product Price and Service Quality on Consumer Loyalty at
Coffee Harbor Shop Kemayoran Using Electronic Word of Mouth as A Moderating Variable
using SPSS IBM 25 and obtained a
description of the respondents based on
age as follows:
a. Age
Table 1. Age of Respondents
Age
frequency
percent
Valid Percent
Cumulative
Percent
Valid
21
70.0
70.0
70.0
8
26.7
26.7
96.7
1
3.3
3.3
100.0
30
100.0
100.0
Based on these results, it can be
interpreted if the respondent filler based on
age with a vulnerable age of 21-25 years is
21 respondents, a vulnerable age and a
vulnerable age of 31-35 years is 1
respondent. So it can be concluded that the
majority of customers at Harbor Coffe
based on age are those aged 21-25 years
with a total of 21 respondents.
b. Profession
Table 2. Respondent's Occupation
Profession
frequency
percent
Valid Percent
Cumulative
Percent
Valid
Laborer
1
3.3
3.3
3.3
Student
19
63.3
63.3
66.7
Private
employees
7
23.3
23.3
90.0
civil servant
2
6.7
6.7
96.7
Businessman
1
3.3
3.3
100.0
Total
30
100.0
100.0
Based on these results, it can be
interpreted if the respondent filler is based
on work with the Labor category of as much
as 1 respondent, Students as many as 19
respondents, Private Employees as many as
7 respondents, Civil servants as many as 2
respondents and Entrepreneurs as many as
1 respondent. So it can be concluded that
the majority of customers at Harbor Coffe
based on the work of the majority are
students with a total of 19 respondents.
a. Validity test
Based on the results of distributing the
questionnaires, testing was carried out
using SPSS IBM 25 and the validity results
were obtained as follows:
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i. Product Price Validity (X1)
Table 3. Product Price Validity (X1)
Item-Total Statistics
Scale Mean if
Item Deleted
Scale
Variance if
Item Deleted
Corrected
Item-Total
Correlation
Cronbach's
Alpha if Item
Deleted
X1.1
37.17
14,006
.935
.989
X1.2
37.23
13,909
.924
.989
X1.3
37.20
13,752
.990
.987
X1.4
37.17
14,006
.935
.989
X1.5
37.20
13,752
.990
.987
X1.6
37.20
13,752
.990
.987
X1.7
37.20
13,752
.990
.987
X1.8
37.17
14,006
.935
.989
X1.9
37.13
14,326
.864
.991
Based on these results, it can be seen
that all indicators have a value of > 0.3. So
it can be concluded if all indicators in the
Product Price variable (X1) are valid and can
be continued in the next test.
ii. Service Quality Validity (X2)
Table 4. Validity of Service Quality (X2)
Item-Total Statistics
Scale Mean if
Item Deleted
Scale
Variance if
Item Deleted
Corrected
Item-Total
Correlation
Cronbach's
Alpha if Item
Deleted
X2.1
36.37
15,895
.980
.996
X2.2
36.63
11,482
.980
.948
X2.3
36.63
11,482
.980
.948
X2.4
36.63
11,482
.980
.948
X2.5
36.60
11,559
.962
.949
X2.6
36.60
11,559
.962
.949
X2.7
36.60
11,559
.962
.949
X2.8
36.63
11,482
.980
.948
X2.9
36.63
11,482
.980
.948
Based on these results, it can be seen
that all indicators have a value of > 0.3. So
it can be concluded that all indicators in the
Service Quality variable (X2) are valid and
can be continued in the next test.
iii. Consumer Loyalty Validity (Y)
1321 | Analysis of The Influence of Product Price and Service Quality on Consumer Loyalty at
Coffee Harbor Shop Kemayoran Using Electronic Word of Mouth as A Moderating Variable
Table 5. Validity Consumer Loyalty (Y)
Item-Total Statistics
Scale Mean if
Item Deleted
Scale
Variance if
Item Deleted
Corrected
Item-Total
Correlation
Cronbach's
Alpha if Item
Deleted
Y1.1
35.30
12010
.917
.947
Y1.2
35.30
12010
.937
.947
Y1.3
35.43
9,082
.937
.883
Y1.4
35.43
9,082
.937
.883
Y1.5
35.43
9,082
.937
.883
Y1.6
35.47
8,809
.917
.883
Y1.7
35.43
9,082
.937
.883
Y1.8
35.43
9,082
.937
.883
Y1.9
35.43
9,082
.937
.883
Based on these results, it can be seen
that all indicators have a value of > 0.3. So
it can be concluded if all indicators on the
Consumer Loyalty variable (Y) are valid and
can be continued on the next test.
iv. Electronic Word Of Mouth Validity
(Z)
Table 6. Validity of Electronic Word of Mouth (Z)
Item-Total Statistics
Scale Mean if
Item Deleted
Scale
Variance if
Item Deleted
Corrected
Item-Total
Correlation
Cronbach's
Alpha if Item
Deleted
Z1.1
36.40
9,766
.862
.910
Z1.2
36.37
9,964
.862
.916
Z1.3
36.37
9,964
.862
.916
Z1.4
36.17
8,351
.862
.872
Z1.5
36.17
8,351
.937
.872
Z1.6
36.17
8,351
.917
.872
Z1.7
36.17
8,351
.937
.872
Z1.8
36.17
8,351
.862
.872
Z1.9
36.17
8,351
.862
.872
Based on these results, it can be seen
that all indicators have a value of > 0.3. So
it can be concluded that all indicators on
the Electronic Word Of Mouth (Z) variable
are valid and can be continued in the next
test.
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b. Reliability Test
Based on the results of distributing the
questionnaires, testing was carried out
using SPSS IBM 25 and the reliability results
were obtained as follows:
i. Product Price Reliability (X1)
Table 7. Product Price Reliability (X1)
Reliability Statistics
Cronbach's
Alpha
N of Items
.990
9
Based on these results, it can be seen
that all indicators have a value of > 0.6. So
it can be concluded if all indicators on the
Product Price variable (X1) are reliable and
can be continued in the next test.
ii. Service Quality Reliability (X2)
Table 8. Service Quality Reliability (X2)
Reliability Statistics
Cronbach's
Alpha
N of Items
.960
9
Based on these results, it can be seen
that all indicators have a value of > 0.6. So
it can be concluded that all indicators on
the Service Quality variable (X2) are reliable
and can be continued on the next test.
iii. Consumer Loyalty Reliability (Y)
Table 9. Reliability Consumer Loyalty (Y)
Reliability Statistics
Cronbach's
Alpha
N of Items
.911
9
Based on these results, it can be seen
that all indicators have a value of > 0.6. So
it can be concluded if all indicators on the
Consumer Loyalty variable (Y) are reliable
and can be continued on the next test.
iv. Reliability of Electronic Word Of
Mouth (Z)
Table 10. Reliability of Electronic Word of Mouth (Z)
Reliability Statistics
Cronbach's
Alpha
N of Items
.899
9
1323 | Analysis of The Influence of Product Price And Service Quality on Consumer Loyalty At
Coffee Harbor Shop Kemayoran Using Electronic Word of Mouth As A Moderating Variable
DOI : 10.36418/jrssem.v2i07.362 https://jrssem.publikasiindonesia.id/index.php/jrssem/index
Based on these results, it can be seen
that all indicators have a value of > 0.6. So
it can be concluded that all indicators on
the Electronic Word Of Mouth (Z) variable
are reliable and can be continued on the
next test.
c. Multicollinearity Test
Based on the results of distributing the
questionnaires, tests were carried out using
SPSS IBM 25 and the results of
multicollinearity were as follows:
Table 11. Multicollinearity Test
Coefficients
a
Model
Unstandardized
Coefficients
Standardized
Coefficients
t
Sig.
Collinearity Statistics
B
std. Error
Betas
tolerance
VIF
1
(Constant)
23,787
12,527
1,899
.069
TOTAL_X1
-.140
.149
-.168
001
.355
.952
1050
TOTAL_X2
.109
.160
.121
001
.504
.952
1,051
TOTAL_Z
.427
.183
.408
2,335
.028
.996
1,004
a. Dependent Variable: TOTAL_Y
Based on these results, it is known that
the Tolerance value for the variable Product
Price (X1), Service Quality (X2), Consumer
Loyalty (Y), and Electronic Word Of Mouth
(Z) is 0.952 greater than 0.10. While the VIF
values for Product Price (X1), Service
Quality (X2), Consumer Loyalty (Y), and
Electronic Word Of Mouth (Z) variables are
1.004-1.051, less than 10.00. Then referring
to the basis of decision making in the
multicollinearity test it can be concluded
that there are no symptoms of
multicollinearity in the regression model.
d. Moderated Regression Analysis Test
Based on the results of distributing the
questionnaires, testing was carried out
using SPSS IBM 25 and the Moderated
Regression Analysis results were obtained
as follows:
Table 12. Moderated Regression Analysis Test
Coefficients
a
Model
Unstandardized
Coefficients
Standardized
Coefficients
t
Sig.
Collinearity Statistics
B
std. Error
Betas
tolerance
VIF
1
(Constant)
59,244
137,961
.429
.000
TOTAL_X1
075
1961
.090
001
.000
006
170,912
TOTAL_X2
-.951
2.176
-1,061
001
.000
006
180,641
TOTAL_Z
-.441
3,390
-.422
001
.000
003
321,525
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X1M
-.005
048
-.335
001
.000
003
296,189
X2M
.026
053
1,535
001
.000
003
304,082
a. Dependent Variable: TOTAL_Y
Based on these results it can be
interpreted:
1. It is known that the value of the
interaction variable between
Product Prices and Electronic Word
Of Mouth is 0.000 (<0.05). So it can
be concluded that the Electronic
Word Of Mouth is able to moderate
the effect of the Product Price
variable on the Consumer Loyalty
variable.
2. It is known that the interaction
variable value between Service
Quality and Electronic Word Of
Mouth Satisfaction is 0.000 (<0.05).
So it can be concluded if the
Electronic Word Of Mouth can
moderate the effect of the Product
Price variable on the Consumer
Loyalty variable.
e. Hypothesis testing
Based on the results of distributing the
questionnaires, testing was carried out
using SPSS IBM 25 and the results of the
Hypothesis Test were obtained as follows:
i. T test
Table 13. T test
Coefficients
a
Model
Unstandardized
Coefficients
Standardized
Coefficients
t
Sig.
Collinearity Statistics
B
std. Error
Betas
tolerance
VIF
1
(Constant)
59,244
137,961
.429
.000
TOTAL_X1
075
1961
.090
001
.000
006
170,912
TOTAL_X2
-.951
2.176
-1,061
001
.000
006
180,641
TOTAL_Z
-.441
3,390
-.422
001
.000
003
321,525
X1M
-.005
048
-.335
001
.000
003
296,189
X2M
.026
053
1,535
001
.000
003
304,082
a. Dependent Variable: TOTAL_Y
Determination of acceptance or
rejection of the hypothesis testing can be
done by comparing the significance value
of T 0.05. Product Price Value (X1) 0.01
<0.05, it can be concluded that Product
Price has a significant effect on Consumer
Loyalty. Then the Service Quality (X2) has a
value of 0.01 <0.05, so it can be concluded
that Service Quality has a significant effect
on Customer Loyalty.
ii. F test
1325 | Analysis of The Influence of Product Price and Service Quality on Consumer Loyalty at
Coffee Harbor Shop Kemayoran Using Electronic Word of Mouth as A Moderating Variable
Table 14. Test F
ANOVA
a
Model
Sum of
Squares
df
MeanSquare
F
Sig.
1
Regression
364,844
3
121615
63,464
.000
b
residual
49,823
26
1916
Total
414,667
29
a. Dependent Variable: Total_Y
b. Predictors: (Constant), Total_Z, Total_X1, Total_X2
ANOVA
a
Model
Sum of
Squares
df
MeanSquare
F
Sig.
1
Regression
76,566
5
15,313
1,334
.000
b
residual
275,601
24
11,483
Total
352,167
29
a. Dependent Variable: TOTAL_Y
b. Predictors: (Constant), X2M, TOTAL_X1, TOTAL_Z, TOTAL_X2, X1M
Based on these results, it can be seen
that the F value is 1,334 with an F Sig value
of 0,000. The significance value obtained is
less than 0.05 (0.000<0.05). It can be
concluded that the variable Product Price
(X1), Service Quality (X2), Consumer Loyalty
(Y), and Electronic Word of Mouth (Z) have
a significant effect on consumer loyalty at
Harbor Coffee.
f. Effect of Product Prices on Consumer
Loyalty
From the calculation results above, it
shows that product prices have a significant
effect on consumer loyalty. This is in line
with (Cardia et al., 2019) which stated that
price is one of the factors that influence
customer loyalty. Prices can also be set to
prevent competitors from entering,
maintain customer loyalty, support resale
and more.
g. Effect of Service Quality on Consumer
Loyalty
The calculation results above, it shows
that Service Quality has a significant effect
on Consumer Loyalty. These results are in
line with (Pahlawan et al., 2019) which
stated that service quality has an effect and
consumer satisfaction will form an
intention to buy or reuse a product. This
means that the better form of service
provided and supported by a high level of
satisfaction, of course, will form customer
loyalty.
h. The Effect of Product Prices
Moderated By Electronic Word Of
Mouth On Consumer Loyalty
From the calculation results above, it
shows that product prices are moderated
by Electronic Word Of Mouth significant
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effect on consumer loyalty. These results
are in line with (Ambalika, 2020) which
stated that electronic word of mouth can
moderate product prices because when
consumers do electronic word of mouth
about a product, it indicates that
consumers have a high interest in the
product.
i. The Influence of Service Quality
Moderated By Electronic Word Of
Mouth Against Consumer Loyalty
The results of the calculation above, it
shows that Service Quality moderated by
Electronic Word Of Mouth has a significant
effect on Consumer Loyalty. These results
are in line with (Kendria, 2017) which stated
that service quality could increase if
Electronic Word of Mouth was increased in
branding because it is an activity where
consumers provide information about a
product to other consumers.
CONCLUSIONS
Based on the results of the research
that has been done, the researchers
conclude that: (1) Product Prices Affect
Consumer Loyalty, (2) Service Quality
Affects Consumer Loyalty, (3) Product
Prices and Service Quality Affect Consumer
Loyalty, (4) Electronic Word of Mouth is
able to moderate the effect of Product Price
on Consumer Loyalty and (5) Electronic
Word of Mouth can moderate the effect of
Service Quality on Consumer Loyalty.
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