Track: Business Management

Abstract

Loyalty of the firm’s customers has been recognized as the dominant factor in a business organization’s success. Service quality and price are vital competitive policy to keep customer support and build great base. Beauty salons are trying to win customer loyalty by delivering good quality services, competitive price, and also make sure that customers are satisfied. This study is aimed to analyze the influence of service quality and price either simultaneously or partially to customer satisfaction, service quality and price either simultaneously or partially to customer loyalty, customer satisfaction to customer loyalty, service quality, price, and customer satisfaction simultaneously to customer loyalty, service quality to customer loyalty through customer satisfaction, and price to customer loyalty through customer satisfaction. This study is conducted in Capillus Hair Care Center with 100 respondents. This study uses Path Analysis Method and also includes validity test, reliability test, and classical assumption. The results of the study indicate that service quality and price either simultaneously or partially have a positive significant influence to customer satisfaction; customer satisfaction has a positive significant influence to customer loyalty; service quality, price, and customer satisfaction simultaneously have a positive significant influence to customer loyalty; service quality has a positive significant influence to customer loyalty through customer satisfaction, and price has a negative significant influence to customer loyalty through customer satisfaction.