Sales Promotion, Service Quality, and Store Image on Customer Loyalty with Satisfaction as a Mediating Variable (Study at Familymart Kayu Jati Branch)

Abstract

The retail industry continues to evolve through intense competition and shifting consumer preferences, making customer loyalty an essential aspect for business sustainability. Previous studies have shown that sales promotion, service quality, and store image influence customer behavior; however, limited research has examined the mediating role of customer satisfaction in strengthening customer loyalty, particularly within convenience store settings. This study was therefore conducted to analyze the influence of sales promotion, service quality, and store image on customer loyalty, with customer satisfaction as a mediating variable.

A quantitative associative research design was employed, focusing on active customers of FamilyMart Kayu Jati. Data were collected through an online questionnaire distributed to respondents who had made purchases at the store. The analysis was performed using Structural Equation Modeling with SmartPLS version 4.0, which included outer model evaluation, inner model assessment, and hypothesis testing to ensure the reliability and validity of the findings.

The results reveal that sales promotion, service quality, and store image each have a positive and significant effect on customer satisfaction, which in turn enhances customer loyalty. Moreover, customer satisfaction partially mediates the relationship between these independent variables and customer loyalty, confirming its pivotal role in the formation of long-term consumer relationships.

The study contributes to the existing literature by emphasizing the importance of satisfaction as a bridge between marketing efforts and customer retention in modern retail contexts. Practically, the findings highlight that attractive promotional programs, excellent service delivery, and a strong brand image are crucial for improving both satisfaction and loyalty among FamilyMart customers. These insights provide a valuable reference for retail managers seeking to formulate effective and competitive marketing strategies to sustain customer engagement and loyalty in an increasingly dynamic market.

Keywords: Sales Promotion, Service Quality, Store Image, Customer Loyalty, Customer Satisfaction.