THE EFFECT OF SERVICE QUALITY AND PRICE FAIRNESS ON CUSTOMER LOYALTY THROUGH CUSTOMER SATISFACTION AT MCDONALD’S  IN SAMARINDA

Nardi; Kib Eshitella Paisenmai; Asmadhini Handayani Rahmah; Hudyah Astuti Sudirman

Nardi Universitas Muhammadiyah
Kib Eshitella Paisenmai Universitas Muhammadiyah
Asmadhini Handayani Rahmah Universitas Muhammadiyah
Hudyah Astuti Sudirman Universitas Muhammadiyah

Keywords: Customer Loyalty; Customer Satisfaction; Price Fairness; Service Quality

Abstract

As market dynamics demand that companies compete aggressively, maintaining customer loyalty has become a crucial factor for the sustainability of McDonald’s in Samarinda. This study aims to analyze the influence of service quality and price fairness on customer loyalty through the mediating role of customer satisfaction. The method used is a quantitative approach involving the distribution of questionnaires to 100 respondents who have consumed McDonald’s products in Samarinda. The sampling technique employed purposive sampling, and data analysis was conducted using Structural Equation Modeling (SEM). The results indicate that service quality does not have a direct effect on customer loyalty; however, price fairness was found to have a direct effect without requiring satisfaction to act as a mediator. In this context, customer satisfaction does not significantly mediate the relationship between service quality or price fairness and loyalty. These findings indicate that contextual factors such as consumption habits and sensitivity to promotions play a significant role in shaping the loyal behavior of McDonald’s customers in Samarinda. This study offers practical insights for restaurant managers in developing more targeted marketing strategies to retain customers.