The Impact of Service Quality and Product Quality towards Customer Loyalty through Emotional and Functional Values in Traditional Markets in Pontianak, Indonesia

Abstract

The purpose of this study is to analyze and examine the impact of the service quality and product quality variables towards customer loyalty through emotional and functional values in the traditional markets in Pontianak. This research is a confirmatory research or conclusive research, which highlights the relationship between the research variables and tests the formulated hypotheses. The sampling technique used in this study is probability sampling with proportional cluster random sampling. The number of samples in this study is a total of 120 respondents in seven traditional markets in the city of Pontianak, West Kalimantan, Indonesia, managed by the Government of Pontianak. The analysis tool used to test the hypothesis is the Structural Equation Modeling with AMOS (Analysis of Moment Structure) program package. The results of this study showed that out of the eight hypotheses, six showed significant positive effect and influence, namely the service quality towards the emotional value, service quality on functional value, service quality towards customer loyalty, product quality towards emotional value, product quality towards customer loyalty and emotional value on customer loyalty in. On the other hand, two hypotheses showed no insignificant results nor effect or influence, namely the product quality towards the functional value and the functional value towards customer loyalty in the traditional markets in Pontianak.

Keywords : Service Quality, Product Quality, Emotional Value, Functional Value, and Customer Loyalty.