THE EFFECT OF PRICE AND PROMOTION ON CUSTOMER LOYALTY WITH CUSTOMER SATISFACTION AS AN INTERVENING VARIABLE IN BISCUITS HATARI MALKIST CRACKERS

Management

Asia Sakti Wahid Foods, abbreviated as ASWFOODS, is a professional manufacturing company engaged in the production, distribution and export of various kinds of biscuits, crackers, wafers and chocolate. The company was founded in 1978 and is located in Medan, North Sumatra-Indonesia. In addition, ASWFOODS also develops and creates various products according to consumer demand and has met international quality standards. The problem in this study is whether price and promotion affect customer loyalty through customer satisfaction. Respondents in this study were 128 customers on hatari malkist crackers products. The data analysis technique in this study uses four tests, namely descriptive analysis, classical assumption test, path analysis and hypothesis testing with SPSS Statistic 22 (Statistical Package For The Social Sciences). The results showed that: (1) price has a positive and significant effect on customer satisfaction, (2) promotion has a positive and significant effect on customer satisfaction, (3) price has a positive and significant effect on customer loyalty, (4) promotion has a positive and significant effect on customer loyalty, (5) customer satisfaction has a positive and significant effect on customer loyalty, (6) price through customer satisfaction has a positive and significant effect on customer loyalty, customer satisfaction is able to mediate the relationship between the effect of price on customer loyalty and (7) promotion through customer satisfaction has a positive and significant effect on customer loyalty, customer satisfaction is able to mediate the relationship between the effect of promotion on customer loyalty.

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