Track: Engineering Management

Abstract

The level of sales becomes the most important thing in the Rosella Baru Sack Factory and recently there was a decline in sales levels in the company in 2019, this declining sales level is an obstacle to the development of the company. Besides, the Rosella Baru Sack Factory has also shown the customer relationship with the quality of services and products through employee agility, employee professionalism, and facilities that provide comfort, but have not yet had a significant impact on customer satisfaction and loyalty. The purpose of this study was to determine the effect of how much relational benefits, service quality, and product quality on customer satisfaction and loyalty for the future to be input to the company. And data were collected by questionnaire with 31 customers of the Rosella Baru Sack Factory. The analysis technique in this study uses Partial Least Square (PLS). The results showed that product quality had a significant positive effect on customer satisfaction and had no effect on customer loyalty, and other results showed that relational benefits and service quality also had no effect on customer satisfaction or loyalty. This research is important to be conducted as an input for stakeholders to determine the role of relational benefits, service quality, and product quality on customer satisfaction and loyalty.