Value-Driven Loyalty: The Role of Price and Product Quality in the Indonesian FMCG Market

Abstract

Main Objectives: This study analyzes the influence of brand image, product quality, and price on consumer loyalty at PT Indomarco Adi Prima Kupang Branch. This topic is important because the competition in the retail industry is getting fiercer and customer loyalty is the key to business sustainability. The study aims to identify which factors are most influential in building loyalty.

Background Problems: The main issues examined were whether brand image, product quality, and price had an effect on consumer loyalty. This study also evaluates which variables are the most dominant in influencing loyalty. The core question of the study was formulated: "What factors most determine Indomarco's consumer loyalty?"

Research Methods: The study used a quantitative approach with a Likert scale questionnaire survey on consumers who had made a purchase more than three times. Data analysis was carried out using PLS-SEM through testing the outer model and inner model. Samples were selected by purposive sampling according to the research criteria.

Results: The results show that price and product quality have a positive and significant effect on consumer loyalty. On the other hand, reputation or brand image does not show significant influence. The research model has strong predictive power with an R² value of 0.777.

Conclusion: The study concluded that consumer loyalty is driven primarily by competitive prices and consistent product quality. Companies need to prioritize value strategies to strengthen customer loyalty. A reputation still needs to be built as a long-term asset even if the direct influence is not significant.