Publication Details
Abstract
Objective: This study aims to analyze the effect of service quality and price perception on customer loyalty, both directly and through purchase decision as a mediating variable, at Apotek Nusa Raya located in Kerobokan Kaja, Kuta Utara, Badung, Bali. Method: This research employs a quantitative approach, with the population consisting of all customers who had made at least one purchase within the past six months. The sample was determined using a non-probability sampling technique through the purposive sampling method, involving 100 respondents who met the criteria of having transacted directly at Apotek Nusa Raya. Data were collected through questionnaires and analyzed using the Partial Least Square-Structural Equation Modeling (PLS-SEM) method with the assistance of SmartPLS software. Results: The results show that service quality and price perception have a positive and significant effect on both purchase decision and customer loyalty. Purchase decision was also found to have a positive and significant effect on customer loyalty, and to partially mediate the effects of service quality and price perception on customer loyalty. The R-square values show that 69.1% of the variance in purchase decision can be explained by service quality and price perception, while 78.4% of the variance in customer loyalty can be explained by these three variables combined, indicating that the research model has strong explanatory power. Novelty: These findings imply that improving service quality and shaping favorable price perceptions, together with strengthening the purchase decision process, are essential strategies for Apotek Nusa Raya in sustaining and enhancing customer loyalty amid increasingly competitive pharmaceutical business conditions.