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