Store Atmosphere, Perceived Price, and Customer Loyalty: The Mediating Role of Customer Satisfaction in Madura Grocery Stores

Mohammad Iqbal Amin; Ida Yulianti

doi:10.59261/inkubis.v8i3.439

Authors

Mohammad Iqbal Amin Universitas Brawijaya
Ida Yulianti Universitas Brawijaya

DOI:

https://doi.org/10.59261/inkubis.v8i3.439

Keywords:

store atmosphere, perceived price, customer satisfaction, customer loyalty, grocery store Madura

Abstract

Background: The increasingly fierce competition between traditional grocery stores, modern convenience stores, and e-commerce requires retail businesses to build customer loyalty in an ongoing manner. However, the results of previous research on the influence of store atmosphere and perceived price on customer loyalty still show inconsistencies, so mediation variables are needed to explain the relationship.

Objective: This study aims to analyze the influence of store atmosphere and perceived price on customer loyalty with customer satisfaction as a mediating variable in consumers of Madura grocery stores in Malang City.

Methods: The research uses a quantitative approach with the explanatory research method. Data was obtained through the distribution of questionnaires to 200 respondents who were selected using purposive sampling techniques, then analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM).

Results: The results show that store atmosphere and perceived price positively affect customer satisfaction and loyalty. Customer satisfaction also positively affects loyalty and significantly mediates the effects of store atmosphere and perceived price on customer loyalty. The novelty lies in testing this mediation model in Madura grocery stores, traditional 24-hour retailers facing competition from modern retail and e-commerce.

Conclusion: These findings confirm that increased customer loyalty is more effectively achieved through the creation of a satisfying shopping experience, supported by a comfortable store atmosphere and competitive and fair price perception.

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