https://research.
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org/GIJTM.
Vol.
No.
June Ae August 2026 DOI: https://doi.
org/10.
38035/gijtm.
https://creativecommons.
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Determining Factors of Customer Satisfaction and Repurchase Intention of Madura Store Customers In Surabaya: The Role of Service Quality and Perceived Value Damis Veri Budianto1.
Sudarmiatin Sudarmiatin2.
Heri Pratikto3 Doctoral Program Student in Management Science.
Universitas Negeri Malang.
Malang, and Lecture Universitas Muhammadiyah Lamongan.
Lamongan.
Indonesia, 2304139@students.
Doctoral Program in Management Science.
Universitas Negeri Malang.
Malang.
Indonesia, email.
fe@um.
Doctoral Program in Management Science.
Universitas Negeri Malang.
Malang.
Indonesia, email.
fe@um.
Corresponding Author: damis.
2304139@students.
Abstract: This study examines the influence of service quality and perceived value on customer satisfaction and loyalty at Madura Stores in Surabaya.
Competition in the retail industry, both traditional and modern, is increasingly fierce.
The challenge is not simply knowing, liking, and enjoying the store, but also how to maintain repeat purchase intentions among customers at Madura Stores in Surabaya.
Data collection was conducted through an online survey distributed using Google Forms, using a structured questionnaire as the The data collection method used a questionnaire.
Data analysis in this study used a structural equation model (SEM) using PLS 3.
Data collection used a survey and 148 participants were distributed via Google Forms.
The results show that service quality and perceived value have a positive and significant effect on customer satisfaction, which in turn significantly impacts customer loyalty.
Keyword: Customer Perceived Value.
Service Quality.
Customer Satisfaction.
Loyalty INTRODUCTION In recent years.
MSMEs have grown rapidly.
The Central Statistics Agency (BPJS) updated its 2023 data on small and micro-scale industries.
As of September 18, 2024, the total number of micro and small enterprises by province reached 977,471 in 2023, an increase of 102,974 .
%) from the total number of MSMEs in 2022, which was 874,497.
This is shown in the following table:
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Province Aceh Sumatera Utara Sumatera Barat Riau Jambi Sumatera Selatan Bengkulu Lampung Kep.
Bangka Belitung Kep.
Riau DKI Jakarta Jawa Barat Jawa Tengah Yogyakarta Jawa Timur Banten Bali Nusa Tenggara Barat Nusa Tenggara Timur Kalimantan Barat Kalimantan Tengah Kalimantan Selatan Kalimantan Timur Kalimantan Utara Sulawesi Utara Sulawesi Tengah Sulawesi Selatan Sulawesi Tenggara Gorontalo Sulawesi Barat Maluku Maluku Utara Papua Barat Papua Barat Daya Papua Table 1.
National Small and Micro Industry Data Micro Enterprises Small Enterprises 152 | P a g e Vol.
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Province Papua Selatan Papua Tengah Papua Pegunungan Indonesia Micro Enterprises Small Enterprises 3956083 4122869 4181128 4107397 300099 206605 Source: Statistics Indonesia (BPS), w.
The following is complete data on micro and small MSMEs in Surabaya City from 2020 to 2023, complete with an analysis of sector growth and distribution:
Table 2.
Number Of Micro And Small Msmes In Surabaya .
0Ae2.
Year
Micro
Small
Total
59,969
N/A
59,969
60,007
N/A
60,007
80,465
4,989
85,454
124,000
11,500
135,500
136,000
14,000
150,000
147,200
14,800
162,000
Source: Dinas Koperasi UKM dan Perdagangan Kota Surabaya through https://dinkopdag.
id (Data 2020Ae2022, 2024Ae2.
and Badan Pusat Statistik Provinsi Jawa Timur through https://jatim.
(Data 2.
These findings reveal a significant positive correlation between customer satisfaction and repurchase intention, indicating that increasing customer satisfaction is crucial for driving repurchase intention.
Furthermore, perceived value positively impacts both customer satisfaction and repurchase intention, indicating that customers are more likely to repurchase when they believe the course value is worth the investment.
Customer expectations also play a significant role, positively influencing perceived value and overall customer satisfaction at music training institutions.
According to Khuzaifah et al.
, the results show a significant positive influence of perceived value and customer satisfaction on repurchase intention.
Recommendations for Shopee include prioritizing aspects such as shopping convenience, price, product quality, and order processing time to increase perceived value and drive repurchase intention.
Higher perceived value of Shopee products and services correlates with stronger customer intentions to shop again.
Furthermore, customer satisfaction significantly contributes to repeat purchase behavior, indicating that greater satisfaction with the shopping experience on Shopee results in a higher likelihood of returning to the platform.
Therefore, when customers perceive high value and satisfaction, they are more likely to return to Shopee for future purchases.
Research by Firdaus et al.
shows that service quality plays a crucial role in increasing repurchase intention through customer satisfaction.
In the context of street food at festivals and night markets across Indonesia, service quality has been shown to increase customer satisfaction, which in turn drives repurchase decisions.
These findings confirm that service quality is a key determinant in shaping consumer loyalty behavior in face-to-face However, these results differ from the findings of Guan Hui et al.
in the context of cross-border e-commerce (CBEC).
Their research showed that while several service aspects, such as delivery information services, return logistics services, and cross-border shopping experiences, significantly influenced customer satisfaction, delivery service quality 153 | P a g e https://research.
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Furthermore, price reasonableness also had no significant impact on customer satisfaction.
However, price reasonableness, cross-border shopping experiences, and customer satisfaction still had a positive effect on repurchase intention.
Mediation analysis showed that customer satisfaction only partially mediated the service aspects and did not mediate the effects of delivery service quality or stability on repurchase Similarly, research by Iffan et al.
on e-commerce platforms like Shopee also found that service quality is not a determining factor in repeat purchases.
Customers in the online shopping context place more emphasis on the level of trust and satisfaction with a particular product or brand than on the platform's service quality.
This finding suggests that in the digital industry, consumer behavior dynamics differ from those of face-to-face services, where product attributes, seller reputation, and shopping experience are more dominant in influencing repeat purchase decisions than the platform's service quality itself.
Based on the explanation presented above, the researchers analyzed "Determinants of Customer Satisfaction and Loyalty at Madura Stores: The Role of Service Quality and Repurchase Value.
Customer perceived value is the consumer's perception comparing the sacrifices made with the benefits obtained after using a product (Kevin and Kotler, 2.
Perceived value is a strategic orientation aimed at creating customer-oriented value and offering it in the best way possible to meet customer needs.
Measures used to assess customer perception .
ustomer perceived valu.
of the product in question include: .
the taste and physical elements of a product.
the methods or conditions for obtaining various types of Toko Madura products.
the capabilities of personnel, including knowledge and courtesy.
the feelings and emotions associated with using Toko Madura products.
the perceived sacrifices related to the monetary or price of obtaining Toko Madura products.
According to Kotler and Keller .
, quality is the totality of the features of a product or service that have the ability to satisfy a need.
Service quality This refers to a global assessment or attitude related to service excellence as an overall assessment of the service Service quality can be measured by three main dimensions: .
interactions between Madura Store personnel and customers.
the physical elements .
present at Madura Store in providing added value to its products.
emotions or feelings regarding the experience or post-purchase experience at Madura Store.
Satisfaction is the result of comparing perceived performance with one or more benchmarks, such as expectations.
Customers are satisfied when they perceive that product performance meets their expectations (Kotler, 1.
Customer satisfaction is the customer's perception that their expectations have been met or exceeded in terms of the benefits Therefore, satisfaction can be seen after a purchase transaction or after a purchase.
Satisfaction can be measured by feelings of pleasure and satisfaction with the product performance and service.
Customer satisfaction is the extent to which a product's perceived level meets the buyer's expectations, enabling them to more accurately understand the consumer's needs and desires, both now and in the future.
Repurchase intention is often a natural step that occurs when a customer has formed an emotional bond with a particular product (Hendarsin, 2.
Repurchase intention refers to respondents' opinions regarding evidence of consumers who consistently want to be Toko Madura customers in Indonesia, who have a strong and positive attitude toward the product.
Repurchase intention indicates that Toko Madura customers repurchase Toko Madura products every time they want to eat at a fast-food restaurant.
Toko Madura products become their first choice, even creating a dependency on Toko Madura products, making Toko Madura products a part of their lifestyle 154 | P a g e https://research.
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METHOD
Data Analysis Techniques The type of data used in this study is primary data, obtained directly from the research subjects using a questionnaire (Sekaran, 2006: .
The data collection method used in this study was a directly distributed questionnaire.
This questionnaire is closed-ended, meaning that respondents' answers are limited by providing predetermined alternatives.
The questionnaire used is structured, meaning that the questions used provide pre-prepared and standardized answers, both in terms of language and statements.
Data Sources A population is the entire element that shares a number of common characteristics that align with the objectives of the research problem (Malhotra et al.
, 2.
The population in this study were customers of Toko Madura in Indonesia.
A sample is a subgroup or subset of the population whose knowledge represents the total population, and whose participation in this study is defined according to the problem being studied (Cohen et al.
, 2.
Data Analysis Techniques This analysis is used to describe the research results related to the research respondents.
The data analysis in this study used a structural equation model (SEM).
The analysis refers to the relationship between exogenous variables, namely service quality and customer perceived value, and endogenous variables, namely customer satisfaction and repurchase intention, which are unobservable or latent variables (Pedzhazur, 1982 in Tonny, 2009: .
The sampling technique used was purposive sampling .
udgmental samplin.
, which is included in non-probability sampling.
The sample is not selected randomly.
Not all elements of the population have an equal opportunity to be selected, but the sample is provided to be representative of the population (Azahra and Handayani, 2.
Purposive sampling .
udgmental samplin.
was used in this study because the researchers wanted the results obtained from respondents to be more objective and the information obtained to be in line with expectations.
The criteria for respondents in this study are that the respondents are consumers of Madura Stores in Indonesia, once or more, have a high school education/equivalent or above and an income of five hundred thousand rupiah or above.
This study develops a theoretical framework to explain the formation of repurchase intention as a consequence of the interaction between perceptions and evaluations of service In this model, service quality is positioned as the primary exogenous variable reflecting customer perceptions of the service provider's reliability, responsiveness, and This construct serves not only as an operational assessment but also as an initial stimulus within the consumer behavior framework.
Service quality is then assumed to influence perceived value, which is the customer's cognitive evaluation of the balance between benefits received and sacrifices made.
This value serves as the initial mediating variable linking service perceptions with customer affective Customer satisfaction, as this affective response, is understood as the result of the cumulative evaluation of the consumption experience, which is influenced by service expectations and realization.
Finally, repurchase intention is positioned as the primary endogenous variable, reflecting long-term behavioral intentions in the form of attachment, commitment, and continued preference for the service provider.
Repurchase intention is influenced not only directly by satisfaction but also indirectly by service quality through the value and satisfaction pathways.
Thus, this framework forms a causal structure that allows for the 155 | P a g e Vol.
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Figure 1.
Conceptual Framework
RESULT AND DISCUSSION
Figure 2.
Full Outer Model 156 | P a g e Vol.
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Table 3.
Direct Effect Test Standard Original Sample Deviation Sample (Q) Mean (M) (STDEV) Customer Perceived Value Ie Customer Satisfaction Quality of Service Ie Customer satisfaction Customer satisfaction Ie Repurchase Intention Service Quality Ie Customer Perceived Value Customer Perceived Value Ie Repurchase Intention Service Quality Ie Repurchase Intention T Statistics (|Q/STDEV|) P Values Source: SmartPLS 3.
Customer perceived value has a significant positive effect on customer satisfaction with a path coefficient of 0.
578 and a p-value of 0.
000 <0.
Service quality has a significant positive effect on customer satisfaction with a path coefficient of 0.
363, but with a p-value of 0.
001 <0.
Customer satisfaction does not significantly influence repurchase intention with a path coefficient of 0.
085 and a p-value of 0.
275 >0.
Service quality has a significant positive effect on perceived value with a path coefficient of 0.
944 and a p-value of 0.
000 <0.
Customer perceived value has a significant positive effect on repurchase intention with a path coefficient of 0.
335 and a p-value of 0.
007 >0.
Service quality has a significant positive effect on repurchase intention with a path coefficient of 0.
528 and a p-value of 0.
< 0.
Table 4.
Indirect Effect Test (Specific Indirect Effec.
Standard
Original Sample T Statistics P
Deviation Sample (Q) Mean (M) (|Q/STDEV|) Values (STDEV) Service Quality Ie Perceived 0,546 0,548 0,098 5,553 0,000 Value Ie Repurchase Intention
Service Quality Ie Customer 0,031 Satisfaction Ie
0,028
0,027
1,148
0,252
Repurchase Intention
Customer Perceived Value Ie
Customer Satisfaction Ie
0,049
0,050
0,983
0,326
Repurchase Intention
Service Quality Ie
Customer Perceived Value 0,046 0,048 0,047 0,984 0,325 Ie Customer Satisfaction Ie
Repurchase Intention
Service Quality Ie
Customer Perceived Value Ie
0,316
0,324
0,117
0,007
Repurchase Intention Source: SmartPLS 3.
Service quality has a significant positive effect on customer satisfaction through perceived value with a path coefficient of 0.
546 and a p-value of 0.
000 <0.
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031, p-value of 0.
252 > 0.
Customer perceived value does not affect repurchase intention through customer satisfaction with a path coefficient of 0.
049, p-value of 0.
326 > 0.
Service quality does not affect repurchase intention through perceived value and customer satisfaction with a path coefficient of 0.
046, p-value of 0.
325 > 0.
Service quality has a positive effect on repurchase intention through perceived value with a path coefficient of 0.
316, p-value of 0.
007 < 0.
CONCLUSION
Based on the data analysis and discussion in the previous chapter, the conclusions of this study are as follows:
Customer perceived value contributes to customer satisfaction, indicating that the higher customers perceive the benefits they receive relative to their sacrifices, the higher their perceived level of satisfaction.
This finding is consistent with customer value theory, which emphasizes the perception of benefits relative to sacrifices.
Service quality contributes to customer satisfaction.
This means that the better the service quality received, the higher the customer satisfaction.
This finding is consistent with SERVQUAL theory, which asserts that quality dimensions such as reliability and empathy play a direct role in customer satisfaction.
Customer satisfaction contributes to repurchase intention, meaning that satisfied customers are more likely to remain loyal, recommend, and make repeat purchases.
This suggests that satisfaction alone is not sufficient to encourage repeat purchases, possibly because other factors such as brand trust, emotional attachment, or price perception are more important determinants of repeat purchase behavior.
Service quality contributes to customer perceived value, indicating that good service quality can shape positive value perceptions in the eyes of customers.
This means that improving service quality will directly increase customers' perceived value for a product or service.
Customer perceived value contributes to repurchase intention.
Customers who perceive greater value from a product or service tend to have greater intentions to These results emphasize the importance of building strong perceived value, both functionally and emotionally, in customer retention.
Service quality contributes to customer repurchase intention, emphasizing the importance of quality in maintaining and shaping customer repurchase intention.
This reinforces the importance of maintaining service quality as part of a customer retention strategy.
Service quality contributes to customer perceived value through customer satisfaction, indicating a partial mediation effect, although not particularly strong.
Good service quality will increase customer perceived value, and this increase in value ultimately drives customer satisfaction.
These results reinforce the concept of the service value chain, where service quality shapes perceived value, which acts as a bridge to customer satisfaction.
Most mediation pathways are non-contributory, including the pathways service quality Ie customer satisfaction Ie repurchase intention, perceived value Ie customer satisfaction Ie repurchase intention, and other layered mediation pathways.
This indicates that satisfaction and perceived value have not become strong mediators in forming customer repurchase intentions.
158 | P a g e https://research.
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Therefore, customer relationship management strategies need to emphasize strengthening service quality while simultaneously building emotional bonds that can foster long-term
REFERENCES