Title:
THE EFFECT OF SERVICE PLACE AND PRICE ON PURCHASE SATISFACTION AND ITS IMPACT ON CUSTOMER LOYALTY OF TRADITIONAL MARKET IN LHOKSEUMAWE CITY

Authors:
*Mukhlis, Permana Honneyta Lubis, Elvita Mauliana ,Indonesia

Abstract:
This study intends to examine the effect of service placeand purchase satisfaction price and the impact on customer loyalty in the traditional market in the city of Hokseumawe. The population determined in this research is all permanent consumers who are still active in making purchases at the traditional market in Lhokseumawe, totaling 180 people. This research model was tested by Structural Equation Modeling (SEM). The result of research on the traditional market in Lhokseumawe City proves that for the direct effect test: service place and price affect purchase satisfaction, and; service place, price and purchase satisfaction affect customer loyalty. The result of the mediation test proves that purchase satisfaction does not mediate the effect of service place on customer loyalty, and purchase satisfaction does not mediate the effect of price on customer loyalty. The unique finding is that purchase satisfaction does not function as a mediator for service place and price to influence customer loyalty, but only functions as an independent variable to influence customer loyalty. Besides, this tested research model can contribute in particular to the novelty of theory proof. For future researchers, this tested model can be developed by adding other variables such as market image and customer intimacy, which are very closely related to places of business such as traditional market