THE INFLUENCE OF SERVICE QUALITY AND BUSINESS LOCATION ON CUSTOMER SATISFACTION AND ITS IMPACT ON CUSTOMER LOYALTY: A CASE STUDY ON CAFÉ BOU ALI IN POSTU ADMINISTRATIVO DE LALEIA, MANATUTO

Abstract

The objectives of this research are to: (1). Knowing and analyzing the quality of service, affecting customer loyalty. (2). To test and analyze the location of the business affects customer satisfaction. (3) To test and analyze the customer satisfaction affects Customer Loyalty (4). To test and analyze the Business Location affecting Customer Loyalty. (5). To test and analyze customer satisfaction affects customer loyalty. The subjects of the study were customers who were 17 years old and visited café Bouali more than twice as much. From various backgrounds taken by researchers to study and then draw conclusions. The population in this study is customers including students, workers and housewives totaling 100 people. The sampling technique used is a questionnaire with questionnaire distribution and direct observation to customers. The data analysis technique used in this study is PLS (Partial Least Square) analysis to determine the outer model and the inner model. Based on the results of the analysis, it shows that all the variables used do not contradict the specified conditions. Meanwhile, according to the results of the Reliabilities Test, which is used in determining the Loading Factor, all indicators are reliable > 0.70, which means that this study is feasible and reliable to use. Based on the results of this study, it shows that: Service Quality contributes by 3.95%, Business Location contributes by 0.19% to Customer Satisfaction. and self-satisfaction contributed 7.15% to Customer Loyalty. The quality of service itself directly contributes to the Loyalty of Farmers by 1.01%. The Business Location also directly contributes to customer loyalty by 040%, which means that the better the quality of the service, the Business Location will contribute to increasing customer satisfaction, and also grow customer loyalty to customer visits to Café Bou Ali.