Price and Service Quality and Their Effects on Customer Satisfaction in Convenience Stores: A Case of Indomaret

Abstract

The rapid expansion of modern retail in Indonesia has intensified competition among convenience stores, making customer satisfaction a critical strategic objective for sustaining market performance. This study investigates the effects of price and service quality on customer satisfaction in Indomaret convenience stores located in Suvarna Sutera, Tangerang Regency. A quantitative research design was employed using a structured online questionnaire distributed via Google Forms to 100 randomly selected respondents who had previously shopped at Indomaret in the study area. Price was measured using eight items, service quality using eight items based on the SERVQUAL framework, and customer satisfaction using six items, all assessed on a five-point Likert scale. Data were analyzed using SPSS through validity and reliability testing, normality testing, Pearson correlation, coefficient of determination (R²), multiple linear regression, and hypothesis testing using t-test and F-test. The results indicate that both price and service quality have significant positive effects on customer satisfaction, with price exerting a stronger relative influence than service quality. The regression model explains 43.1% of the variance in customer satisfaction, and the F-test confirms the simultaneous effect of both variables. These findings highlight that customer satisfaction in convenience retail is shaped by an integrated evaluation of monetary value and service experience. The study contributes to retail marketing literature by providing empirical evidence from a localized Indonesian context and offers practical implications for retail managers in designing balanced pricing strategies and service improvement initiatives to enhance customer satisfaction and competitive advantage