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Impact of Quality and Price on Satisfaction

Customer satisfaction is determined by product quality, price, and customer value. Several studies found relationships between these factors: product quality and price affect customer value; product quality and price impact customer satisfaction; and customer value influences customer satisfaction. This study examines models of these relationships, particularly for convenience products. It aims to better understand the impact of product quality and price on customer satisfaction, with customer value as a mediator. A structural equation model is proposed to analyze these effects.

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Mohsin Chattha
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0% found this document useful (0 votes)
18 views4 pages

Impact of Quality and Price on Satisfaction

Customer satisfaction is determined by product quality, price, and customer value. Several studies found relationships between these factors: product quality and price affect customer value; product quality and price impact customer satisfaction; and customer value influences customer satisfaction. This study examines models of these relationships, particularly for convenience products. It aims to better understand the impact of product quality and price on customer satisfaction, with customer value as a mediator. A structural equation model is proposed to analyze these effects.

Uploaded by

Mohsin Chattha
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Introduction

Customer satisfaction is determined by the quality and price of the products desired by the customer, as
stated by Bei and Chiao (2001) that "Consider product quality and price as the foundation to build up
consumer satisfaction", while Khan and Ahmed (2012) said that " product quality is a critical
determinant of consumer satisfaction ". Moreover, Ehsani and Ehsani (2015) concluded that "price can
be used as a resource to increase both profit and customer satisfaction". Other factors that affect
customer satisfaction is customer value, as proposed by Ma and Ding (2010) "customer value delivery
can satisfy customer demand, make the customer satisfied". Similarly, Sugiarti et al. (2013) indicated
that "better customer value as Compared to what the competitors will deliver a make customers feel
satisfied and in turn will drive him to be loyal". Based on several expert opinions above, it can be seen
that product quality, price, and customer value can affect customer satisfaction.

In this decade, there have been a lot of studies that explain the causality between product quality and
price with customer value, between product quality and price with customer satisfaction, and between
customer value with customer satisfaction. This study examines the concepts and models developed by
Zeithaml (1988); Bei and Chiao (2001), as well as Hanzaee and Yazd (2010); Jahanshahi et al. (2011);
Malik et al. (2012); Tu et al. (2013); Sugiarti et al. (2013); Munisih and Soliha (2015) that motivates us to
do a further and deeper investigation on the relationship of product quality, price, customer value and
customer satisfaction, especially for the category of convenience product. The research that focuses on
a convenience product in metropolitan society is still not widely found.

The concept model developed by Zeithaml (1988) suggested that there is a causal relationship between
price and quality with value customers, while the concept model developed by Bei and Chiao (2001)
showed no effect on the product quality and price to customer satisfaction. This is also supported by the
research of Jahanshahi et al. (2011) that explained if product quality is influenced customer satisfaction.
Another research that has a similar point with this research is the research conducted by Malik et al.
(2012), he found that the price is affected customer satisfaction. Furthermore, the research of Hanzaee
and Yazd (2010) resulted that the price has an effect on customer value, and Munisih and Soliha (2015)
proved that product quality could influence customer value. Still, the results of Tu et al., (2013) research
showed that customer value is able to influence customer satisfaction. By that, a concept of structural
equation model is designed in this study to deepen the influence of product quality and price towards
customer satisfaction with the mediator of customer value.
Customer satisfaction is decided by the quality and price of the products preferred through the

consumer, as referred to by the works of Bei and Chiao (2001) that, consider

product quality and price as the basis to construct up customer satisfaction, while Khan and

Ahmed (2012) said that, product quality is a crucial determinant of customer satisfaction.

Moreover, Ehsani and Ehsani (2015) concluded that "price can be used as

a resource to amplify each profit and customer satisfaction. Other factors that have an effect

on purchaser’s satisfaction is customer value, as proposed through Ma and Ding (2010),

"customer value delivery can satisfy customer demand, make the customer satisfied". Similarly,

Sugiarti et al. (2013) indicated “better customer value as compared to what the opponents will

deliver makes clients feel satisfied and in turn will drive him to be loyal". Based on numerous

professional opinions above, it can be observed that product quality, price and customer value

can have an effect on customer satisfaction.

In this decade, there have been a lot of studies that explain the causality between

product quality and price with consumer value, between

product quality and price with customer satisfaction, and between consumer

value with consumer satisfaction. This research study examines

the principles and models developed by Zeithaml (1988); Bei and Chiao (2001), as properly as

Hanzaee and Yazd (2010); Jahanshahi et al. (2011); Malik et al. (2012); Tu et al. (2013); Sugiarti

et al. (2013); Munisih and Soliha (2015) that influence us to do a more extensive investigation on

the correlation of product quality, price, customer value and customer satisfaction, in

particular for the class of wardrobe product. The research that focuses on a wardrobe product in

an urban community is still uncommon.


The concept model developed with the aid of Zeithaml (1988) suggested that there is a causal

relationship between price and quality with value

of customers, while the concept framework developed by Bei and Chiao

(2001) confirmed no effect on the product quality and price to customer satisfaction. This

concept is also assisted by the research work of Jahanshahi et al. (2011) that described that

product quality is determined by customer satisfaction. Another lookup that has

a similar factor with this research is the work carried out by Malik et al. (2012), he located that

the price has an effect on customer satisfaction. Besides this, the research of Hanzaee and Yazd

(2010) found out that the price has an impact on customer value, and Munisih and Soliha (2015)

proved that product quality could impact customer value. Still, the conclusions of Tu et

al(2013), research proved that the consumer value is capable to have an effect on customer

satisfaction. Due to that, a concept of structural equation model is formed in this research to

study the effect of product quality and price towards customer satisfaction with the mediator of

customer value more deeply.

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