THE INFLUENCE OF PRODUCT QUALITY AND PRODUCT INNOVATION ON CUSTOMER LOYALTY MEDIATED BY CUSTOMER SATISFACTION AMONG POTTERY CRAFT MSMES IN GAMPANG SEJATI
Keywords:
Product Quality, Product Innovation, Customer Satisfaction, Customer Loyalty, Pottery MSMEs.Abstract
This study aims to analyze the direct and indirect effects of product quality and product innovation on customer loyalty, with customer satisfaction as a mediating variable at the Pottery Craft MSMEs in Gampangsejati Village, Lamongan Regency. The research approach uses a quantitative causality method. The research population includes all buyers of local pottery products, with a sample size of 97 respondents selected via purposive sampling technique. Data analysis was tested using the Partial Least Square - Structural Equation Modeling (PLS-SEM) method with SmartPLS The results prove that product quality has a positive and significant effect on customer satisfaction. Product innovation significantly affects customer loyalty through customer satisfaction. Customer satisfaction positively and significantly mediates the impact of product quality and innovation on customer loyalty
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