Increasing Repurchase Intention through Product Quality, Service Quality, and Customer Satisfaction

Lena Ellitan; Ani Suhartatik

Faculty of Business

Widya Mandala Catholic University Surabaya Indonesia

Abstract

Product quality has a positive impact on repurchase intentions. Good product quality with good taste, and the wide variety of products available will make consumers visit and buy this product again in the future. Good service quality has a significant effect on repurchase intentions. This shows that good service quality alone is not enough to make consumers have the intention to buy again. Product quality has a significant effect on customer satisfaction because good product quality will create a sense of satisfaction experienced by customers. The higher the quality of the product provided, the higher the customer satisfaction will be. Quality products with a wide variety of menus to make consumers feel satisfied and create a desire to visit and buy existing products again. Good service quality makes consumers feel good. Providing good service to make consumers satisfied, apart from good service, providing a comfortable atmosphere and eye-catching design so that consumers feel satisfied with the place and the service provided to their customers. Customer satisfaction creates an intention to buy again. Customer satisfaction will create an intention to repurchase. Consumers will have the intention to repurchase if consumers are satisfied with the quality of the products offered and also the services provided. Good service quality can create a good positive perspective from consumers so that consumers have the intention to come back. This article discusses the role of product quality, service quality and satisfaction in increasing repurchase intentions.

Keywords: Product Quality, Service Quality, Satisfaction and Repurchase Intention

Introduction

Product and service quality is closely related to customer satisfaction and company profitability (Kotler and Keller, 2016). According to Schroder, (2011) quality is a distinctive attribute or characteristic that a product has. Better food quality will provide high customer satisfaction. Food quality is also an important attribute in food. Lovelock and Wirtz (2011) stated that service quality is the number of services that require direct interaction between customers and business actors. Differences in service methods between one service provider and another can often be seen from the attitudes and skills of employees. Felix (2017) believes that consumer satisfaction is a customer’s feeling of satisfaction or disappointment resulting from comparing product performance or results with expectations. If the performance is less than expectations then the customer will feel disappointed and if the results match the customer’s expectations then the customer will feel satisfied. Companies that focus on customer satisfaction will be able to increase customer loyalty and at the same time will help the company to have a positive image (Tjiptono and Chandra, 2011). Customer satisfaction is also defined as a determinant of post-purchase attitudes that reflects positive or negative results. Hawkins and Lonney in Tjiptono (2004) also stated three dimensions of customer satisfaction, namely suitability of satisfaction, repurchase intention and willingness to recommend.

Santoso (2016) argues that repurchase intentions represent a customer’s likelihood of engaging in objectively observed future behavior. This is defined as a consumer’s intention to repurchase a particular product or service in the future (Wand and Yu, 2016). There are four dimensions of repurchase intention, namely transactional intention, referential intention, preferential intention and exploration intention (Ferdinand in Saidani and Samsul, 2012). Companies need to implement marketing strategies that are right on target in marketing their products. Determining strategies in terms of food quality and service quality to consumers which triggers consumer satisfaction which ultimately makes consumers have the intention to repurchase the products produced to introduce or brand their business. Based on the phenomena and background above, it is hoped that this article will provide benefits as a study of product quality, service quality, customer satisfaction, and be useful for further research as reference material. And used as input for entrepreneurs in managing their platforms and products according to product quality, service quality and customer satisfaction.

Product quality

Kodu (2013), states that product quality can be interpreted as the ability of a product to carry out its function which includes durability, reliability or progress, strength, ease of packaging, and product repair and other characteristics. Kotler and Armstrong (2012: 283) add that product quality is the ability of a product to perform its function. Product quality is determined by product attributes. Kotler (in Negara, 2018) also states that product quality is the character of a product that has the ability to meet consumer needs. Kotler and Keller (2009: 143) suggest that product quality consists of the features and characteristics of goods and services, the intensity of which can determine the performance capabilities of a product which can be stated or implied. This is related to the quality of the product or service itself, company profitability, and consumer satisfaction which determine the selection of a product. Kotler and Keller (2009: 144) state that the higher the level of product quality offered to consumers, the higher the price, the lower the costs required, and the company can maintain the experience that consumers feel when purchasing the product.

Kotler and Armstrong (2012) argue that product quality is the ability of a product to perform its function. Product quality is determined by product attributes. Product attributes are product elements that are considered important by consumers and are used as the basis for decision making (Tjiptono, 2009 in Afrilia, 2017). According to Kotler (2008), the higher the product quality, the higher the consumer’s decision to make a purchase. *When consumers purchase a product, there will be certain considerations that will become the benchmark for consumers to fulfill their desires, including the condition and appearance of a product marketed by the company. Kotler and Armstrong (2017:249) state that product quality is one of the positioning factors in determining marketing strategies.             

Product quality is the performance of a product in accordance with the commitments made by the manufacturer to consumers. This commitment can be explicit or implicit, namely in terms of quality management expectations from the average consumer of the product. A product can be known as a good and quality product only if the quality of the product is able to meet the criteria and desires of consumers. Product quality in physical appearance must be beautiful to the eye in order to attract consumer interest and achieve good product quality. To achieve this, quality standardization is needed.

Service Quality

Service quality is the activity of offering services that are felt by customers who have used the service. Service quality is very important for customer satisfaction and trust (Rahmani Nejad, Firoozbakht, & Taghipoor, 2014). Wibowo & Soedjono (2014) stated that service quality can be said to be good and of high quality if the service provided by a company can satisfy its customers. The company will not remain silent in terms of customer satisfaction, so that its customers can feel satisfied. According to Kotler, (2007) customer satisfaction is a person’s feeling of happiness or disappointment that arises after the person compares the performance (results) of the product in question against the expected performance. Service quality is how far the difference is between customer reality and the customer expectations they receive (Adabi, 2020). According to Kotler (2009), customer satisfaction can be felt after customers compare their experiences in purchasing goods or services from sellers or providers of goods and services with the expectations or feelings they get from the buyers themselves. Kotler and Keller (2007) state that service quality must start from customer needs and end in customer perception, where customer perception of service quality is a comprehensive assessment of the superiority of a service. According to Adipramita (2019), quality is often considered a measure of the relative goodness of a product or service which consists of design quality and suitability. According to Aryani and Rosita (2010) service quality is very important to achieve improvement efforts for business continuity, where with good service quality the value delivered to customers becomes more positive, and will provide satisfaction to consumers. According to Tjiptono (2014: 268) service quality is centered on efforts to fulfill customer needs and desires and the accuracy of delivery to match customer expectations. According to Tjiptono (2014:282) there are five dominant factors or determinants of service quality.

1. Tangible. Namely in the form of physical appearance, equipment and various materials that are visible and can be assessed as good.

2. Empathy. Namely employee willingness to build relationships, good communication, personal attention, and understanding of customer needs.

3. Responsiveness. Namely the readiness of employees to meet consumer needs in a responsive and friendly manner. Employees must have the willingness to provide service quickly and responsively.

4. Reliability. Namely the employee’s ability to provide services promptly, accurately, consistently and satisfactorily

5. Guarantee (Assurance). Namely, employees must include the knowledge, competence, readiness and trustworthiness of employees regarding the promises given, free from danger, risk and doubt.

Customer satisfaction

Customer satisfaction is a customer’s feelings, both satisfied and disappointed, resulting from comparing product performance or results with expectations (Kotler and Keller, 2018). If the performance is less than expectations then the customer will feel disappointed and if the performance meets expectations then the customer will feel satisfied. Customer satisfaction is an individual’s perception of performance or service in relation to consumer expectations (Schiffman and Kanuk, 2007). Kotler and Armstrong (2008) also define customer satisfaction as the extent to which the product performance received is in line with customer expectations. Companies that focus on customer satisfaction will be able to increase customer loyalty and at the same time will help the company to have a positive image (Tjiptono and Chandra, 2011). Customer satisfaction is defined as a determinant of post-purchase attitudes that reflects positive or negative results. Agustiansyah and Tauik (2019) also stated that customer satisfaction plays a very important role in competitive industries, because there is a very large difference in loyalty between customers who are satisfied and customers who are truly satisfied or happy. Satisfaction is the difference between expectations and performance. Customer satisfaction will always be based on efforts to eliminate or narrow the gap between expectations and performance. Customer satisfaction is the level of customer feelings after comparing perceived service performance and compared with expectations (Kotler and Keller, 2016). Customer satisfaction is a person’s feeling of happiness or disappointment that arises after comparing the performance obtained with the expected performance. If performance does not match expectations, then customers become dissatisfied. If performance meets expectations, then customers will be very satisfied (Nurmalina, 2017). Customer satisfaction is an evaluation process after purchasing or evaluation results after comparing what they feel with their expectations (Yamit, 2013). Satisfaction is the level of feeling after comparing the perceived performance or results with expectations (Sumarwan, 2012). Kotler in Lupiyoadi (2013) states that satisfaction is a level of feeling where someone states the results of a comparison of the product performance received and expected. Hamdani (2011) found that achieving customer satisfaction can be improved through service quality with several approaches as follows:

1. Minimize the gaps that occur between management and customers. For example, by conducting research by distributing questionnaires over several periods, to find out customer perceptions of service.

2. Companies must be able to build a joint commitment to create a vision for improving service processes. This includes improving the way of thinking, abilities, behavior and knowledge of all existing human resources.

3. Give customers the opportunity to convey their complaints by forming a system of criticism and suggestions, and correcting deficiencies that customers complain about

4. Develop and implement accountable, proactive and partnership marketing according to the marketing situation. The company contacts customers after the service process occurs to determine customer satisfaction and expectations (accountable). The company contacts customers from time to time to find out the progress of its services (proactive). Companies build closeness with customers which is useful for creating the company’s image and position in the market (partnership).

Kuo et al (2013) stated that consumers who have a high level of satisfaction will repeatedly return to the same place to get optimal results. Efendi (2020) states that customer satisfaction is a post-purchase consumer evaluation where the alternative chosen does not provide the same results or exceed consumer expectations, while dissatisfaction will arise if the results obtained are below consumer expectations.

Repurchase Intention

Repurchase intention represents a customer’s likelihood to engage in objectively observed future behavior (Santoso, 2016). This is defined as a consumer’s intention to repurchase a particular product or service in the future (Wand and Yu, 2016). There are four dimensions of repurchase intention, namely transactional intention, referential intention, preferential intention and exploration intention (Ferdinand in Saidani and Samsul, 2012). Pham et al (2018) define repurchase as an actual action, and repurchase intention shows that the customer decides to engage in future activities with the seller. Hendarsono (2013) believes that repurchase interest is the behavior of customers who respond positively to what has been provided by a company and are interested in making return visits or consuming the company’s products again. Nurhayati (2012) states that repurchase intention is a consumer’s desire and action to repurchase a product because of the satisfaction received in accordance with what is desired from a product.

Repurchase is a post-purchase consumer action, the occurrence of consumer satisfaction or dissatisfaction will influence subsequent behavior, if the consumer is satisfied then they will show a higher possibility of repurchasing the product. Repurchase intention refers to a possibility or opportunity to use a previous service provider again in the future. Repurchase intention is a customer’s tendency to buy products from the right manufacturer over a long period of time (Gounaris, Bimitraids and Stathakopoulos, 2010). Repurchase is a tendency for consumer buying behavior for a product or service that is carried out repeatedly over a certain period of time and actively likes and has a positive attitude towards a product based on experiences that have been made in the past (Suryana and Dasuki, 2013). And inform other people about good things about the product and will not pay too much attention to similar product offerings from other companies (Kotler and Armstrong, 2008).

Discussion

Several studies support that product quality has a positive effect on repurchase intentions. High quality products are products that are able to excel in competing to meet consumer needs (Wood, 2009). Product quality plays an important role in shaping consumers’ repurchase intentions (Mahendrayanti and Wardana, 2021). Excellent product quality can provide confidence for consumers who will buy the product again (Nurahma et al, 2016). This research is also in line with research conducted by Fathurahman and Sihite (2022) explaining that product quality in the Erigo brand has a positive effect on repurchase intentions. The better the quality of service provided to consumers, the greater the consumer’s interest in making repeat purchases. Service quality is a factor that significantly encourages consumers to make repeat purchases (Prastika and Sugiono, 2017). According to Mardikawati and Farida (2013) service quality describes the nature of product appearance or performance which is a main part of the company’s strategy in order to achieve sustainable excellence as either a market leader or a strategy to continue to grow. In research conducted by Hidayat, et al (2020) at the Hotplate restaurant in Jakarta, it was found that there was a significant influence on service quality on repurchase intentions.

Customer satisfaction can be created by many things, good product quality is one factor in customer satisfaction. Good product quality will make consumers buy the product again and feel satisfied with the product. Kotler and Keller (2009: 144) state that the higher the level of product quality offered to consumers, the higher the price and lower costs required, and can enable a company to maintain the experience that consumers feel when purchasing the product. In research conducted by Fathurahman and Sihite (2022), it was found that product quality has a positive effect on customer satisfaction.

There are many factors that create customer satisfaction, one of which is service quality. Service quality is a reflection of a company’s reputation. A good company will have good quality service, which is able to make consumers feel comfortable and satisfied with the services provided. According to Tjiptono (2014: 268) service quality is centered on efforts to fulfill customer needs and desires as well as the accuracy of delivery to meet customer expectations. In research conducted by Hidayat et al (2020), it was found that service quality has a positive effect on customer satisfaction.

According to Mensah & Mensah (2018) customer satisfaction and repurchase intentions are very important to increase restaurant profits. Customers who are satisfied, both with the product and the service, will make repeat purchases at that place. If customers are not satisfied with the product and service, then customers will not come to that place again to make repeat purchases. In research conducted by Hidayat et al (2020) at a HotPlaye restaurant in Jakarta, it was found that there was a significant influence on customer satisfaction and repurchase intentions.

In several studies, customer satisfaction is able to mediate product quality which has a positive effect on repurchase intentions. The process of forming consumer buying interest must first form a sense of satisfaction for consumers through the quality they have (Savitri and Wardana. 2018). North et al (2004) state that product quality is defined as the ability of a product to meet consumer needs and their requests, and also as a set of attributes that contribute to consumer satisfaction and expectations in use. In research conducted by Fathurahman and Sihite (2022) conducted at Erigo Surakarta, it was stated that product quality mediated by customer satisfaction had a positive effect on repurchase intentions. Bailia et al (2014) stated that product quality partially has a positive effect on satisfaction. The consumer’s experience in purchasing a product will result in the consumer’s assessment of the product. Consumer repurchase intentions represent possible future behavior, while behavior is an objectively observed level (Santoso, 2016). Service quality is closely related to customer satisfaction and company profitability (Kotler & Keller, 2016). Awi and Chaipoopirutana (2014) argue that to increase repurchase intentions, businesses must focus on increasing their customer satisfaction. Mensah & Mensah (2018) also added that customer satisfaction and repurchase intentions are very important to increase restaurant profits. In research conducted by Hidayat, et al (2020), it was found that service quality, mediated by customer satisfaction, has a positive effect on customer repurchase interest.

Conclusion

            Product quality has a positive impact on repurchase intentions. The results of this research are also supported by Danu and Haryono (2022) that product quality has a positive effect on repurchase interest. Good product quality with good taste, and the wide variety of products available will make consumers visit and buy this product again in the future. Good service quality has a significant effect on repurchase intentions. This shows that good service quality alone is not enough to make consumers have the intention to buy again. Service quality can be mediated by customer satisfaction so that consumers’ repurchase intentions increase. Product quality has a significant effect on customer satisfaction because good product quality will create a sense of satisfaction experienced by customers. The higher the quality of the product provided, the higher the customer satisfaction will be. Quality products with a wide variety of menus to make consumers feel satisfied and create a desire to visit and buy existing products again.

            Good service quality makes consumers feel satisfied. Research conducted by Widjoyo, et al (2014) also found that service quality has a significant effect on customer satisfaction. In this study, researchers stated that if service quality is improved, customer satisfaction with the restaurant will also increase. Providing good service to make consumers satisfied, apart from good service, providing a comfortable atmosphere and eye-catching design so that consumers feel satisfied with the place and the services provided to their customers. Customer satisfaction creates an intention to buy again. Customer satisfaction will create an intention to repurchase. Consumers will have the intention to repurchase if consumers are satisfied with the quality of the products offered and also the services provided. Kotler and Keller (2018) customer satisfaction is the customer’s feelings, both satisfied and disappointed, resulting from comparing product performance or results with expectations. If the performance is less than expectations then the customer will feel disappointed and if the performance meets expectations then the customer will feel satisfied. Good service quality can create a good positive perspective from consumers so that consumers have the intention to come back.

Researchers found a significant influence of product quality on repurchase intentions which was mediated by customer satisfaction. According to Kotler (2008), the higher the product quality, the higher the consumer’s decision to make a purchase. When consumers purchase a product, there will be certain considerations that serve as benchmarks for consumers to fulfill their desires, including the condition and appearance of a product marketed by the company. Service quality mediated by customer satisfaction has a significant effect on repurchase intention. Consumers who make repeat purchases also pay attention and feel directly the quality of service from a restaurant. Nur, A.I (2018) found that service quality can be mediated by customer satisfaction which results in consumers’ repurchase intentions. Good quality service will certainly make consumers feel satisfied and make repeat purchases. Service quality can be said to be good and of high quality if the service provided by a company can satisfy its customers. According to Tjiptono (2014: 268) service quality is centered on efforts to fulfill customer needs and desires and the accuracy of delivery to balance customer expectations so that customers can feel satisfied with the services provided and the intention to buy again arises.

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