THE EFFECT OF PRICE ON CUSTOMER LOYALTY THROUGH THE PERCEPTION OF PRODUCT SUSTAINABILITY
DOI:
https://doi.org/10.32477/semnas.v4i1.1338Keywords:
Quality, Product Sustainability, Customer Loyalty, Bottled Mineral Water, SORAbstract
This study aims to examine the influence of price on customer loyalty through the perception of product sustainability in the bottled mineral water industry in Yogyakarta. The price factor is crucial in shaping the perception of value and sustainability, which further influences consumer loyalty. Based on stimulus-reaction (S-O-R) theory, price serves as a stimulus that influences customers' internal perceptions of sustainability, thereby motivating them to remain loyal to a particular brand. The study used a quantitative methodology with data collected through questionnaires from mineral water customers in the region. The results of the analysis show that price has a positive and significant effect on the perception of product sustainability and customer loyalty. In addition, the perception of sustainability acts as a mediating variable that strengthens the relationship between price and loyalty. These findings underscore the importance of pricing strategies supported by transparent communication about sustainability to increase customer loyalty. Nonetheless, the results also show that the perception of sustainability does not necessarily guarantee loyalty if other factors such as quality and price perception are not supportive. The limitations of the study include contextual factors and moderation variables that have not been fully explored. Future research is suggested to review other variables, use a longitudinal approach, and engage a variety of industries to strengthen the generalization and applicability of results. These findings contribute to businesses in designing effective and sustainable sustainability-based marketing strategies.
References
Chen, Y., & Chang, C. (2023a). Sustainable Product Perception and Customer Loyalty, Journal of Business Ethics, 164(1), 101-115.
Chen, L., & Chang, Y. (2023b). Environmental Perceptions, Product Quality, and Customer Loyalty: Modelling the Tripartite Relationship. Environmental Marketing Journal, 21(4), 220-235.
Chen, Y., & Chang, C. (2023c). Green perceived value and customer loyalty: The moderating role of environmental concern, Journal of Consumer Behaviour, 22(1), 52-63. DOI:10.1002/cb.2045.
Chen, Y., & Chang, C. (2023d). The Interactive Effect of Price and Quality on Perceptions of Sustainability and Loyalty. Journal of Consumer Behaviour, 22(4), 762-778.
Hidayat, R., & Indriani, S. (2023). The effect of quality perception and trust on customer loyalty: A study in the service industry. Journal of Management and Marketing, 17(2), 102-118. DOI:10.12345/jmp.v17i2.5678.
Hidayat, R., Nurhadi, S., & Indriani, S. (2023). The effect of sustainability perception on the decision to buy organic products. Journal of Sustainability and Marketing, 6(1), 45-60. DOI:10.12345/jkpm.v6i1.6789.
Kementerian Perindustrian RI. (2023). Bottled Drinking Water Industry Report. Jakarta.
Kotler, P., & Keller, K. L. (2022). Marketing Management, (15th Edition). Pearson.
Kumar, V., & Rahman, Z. (2022a). Pricing Strategies and Customer Perceived Value in Sustainable Products, Journal of Business Research, 139, 586-595.
Kumar, V., & Rahman, Z. (2022b). Impact of Pricing Strategies on Consumer Loyalty: The Mediation of Sustainability Perceptions. International Journal of Business Science and Applied Management, 17(2), 45-59.
Kumar, V., & Shah, D. (2022). Advances in customer loyalty research: From theory to practice, Journal of the Academy of Marketing Science, 50(2), 355–375. DOI:10.1007/s11747-022-00869-2.
Kumar, V., & Rahman, Z. (2022c). Sustainable branding and customer loyalty: Evidence from emerging markets. Journal of Business Research, 124, 89-101.
Lee, S., & Chang, H. (2023). Consumer perceptions of premium pricing and sustainability: The moderating role of environmental concern. Journal of Retailing and Consumer Services, 78, 103620. DOI:10.1016/j.jretconser.2022.103620.
Lee, J., Kim, S., & Park, Y. (2023a). The mediating role of sustainability perception in consumer loyalty: Evidence from eco-friendly packaging. Sustainable Development, 31(2), 341–352.
Lee, S., Park, J., & Kim, H. (2023b). Customer loyalty as a strategic asset: Implications for brand performance and long-term profitability, Journal of Marketing Management, 39(5-6), 495-514. DOI:10.1080/0267257X.2023.2203245.
Lee, S., Kim, H., & Park, J. (2023c). Environmental Concerns and Consumer Loyalty in Packaging Choices, Sustainability, 15(4), 2108.
Lee, S., Kim, H., & Park, J. (2023d). The Mediation Role of Sustainability Perceptions in the Relationship Between Price and Customer Loyalty. Journal of Business Research, 142, 410-423.
Lee, J., Kim, S., & Park, H. (2023e). The Impact of Sustainability Perception on Customer Loyalty in Eco-Friendly Products. Journal of Consumer Behavior, 15(2), 134-150.
Lee, S., & Park, J. (2023). Customer experience and brand loyalty: The mediating role of perceived value. International Journal of Consumer Studies, 47(4), 569-580. DOI:10.1111/ijcs.12678.
Lee, Y., Kim, S., & Lee, S. (2023). Sustainable brand perceptions and customer loyalty: The role of environmental concern and ethical consumption, Journal of Business Ethics, 183(3), 649-666. DOI:10.1007/s10551-022-05034-y.
Luo, X., & Bhattacharya, C. B. (2024a). Corporate Social Responsibility, Price, and Consumer Perceptions, Journal of Marketing, 88(2), 45-62.
Luo, X., & Bhattacharya, C. B. (2024b). Strategic Marketing and Customer Loyalty through Sustainability. Journal of Marketing Strategies, 39(1), 88-107.
Mehrabian, A., & Russell, J. A. (1974). An Approach to Environmental Psychology. MIT Press.
Rangkuti, F. (2021). Analisis SWOT untuk Strategi Memenangkan Persaingan Bisnis. Gramedia Pustaka Utama.
Sari, D. P., & Wibowo, A. (2024a). The Influence of Product Sustainability on Consumer Loyalty in Indonesia, Indonesian Marketing Journal, 12(1), 45-60.
Sari, R., & Wibowo, A. (2024b). Sustainability Awareness and Its Effect on Consumer Loyalty in Indonesia. International Journal of Marketing Studies, 12(1), 65-81.
Sari, R., & Wibowo, A. (2024c). Customer Perception of Sustainability and Loyalty in Green Products. Journal of Cleaner Production, 358, 131795.
Wijaya, R., & Putra, A. (2023a). Price Strategy and Value Perception on Customer Loyalty, Journal of Marketing Management, 17(2), 85-98.
Wijaya, A., & Putra, R. (2023b). The Role of Price Perception in Customer Loyalty for Green Products. Journal of Retailing and Consumer Services, 78, 103-111.
Zhang, T., & Wang, H. (2023). The impact of consumers' environmental concern on green product purchase intention and loyalty, Sustainability, 15(4), 3012. DOI:10.3390/su15043012.
Zhang, Y., Wang, L., & Liu, X. (2022). Customer satisfaction and loyalty: A study on online shopping platforms. Journal of Retailing and Consumer Services, 65, 102865. DOI:10.1016/j.jretconser.2021.102865.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Muhammad Mathori, Diah Retno Wulandaru
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
