THE INFLUENCE OF SERVICE QUALITY AND PRICE ON CUSTOMER SATISFACTION AND ITS EFFECT ON THE LOYALTY OF ON-LINE GO-JEK SERVICE USERS IN MEDAN

Business strategy for supporting a company is very important since most of businesses are not effective if they are only operated by using traditional concept, along with the changing in economy, national condition, and technology. One of the examples in technological changing in on-line Go-Jek transportation service which gives facility in transportation service according to what is wanted by customers. The objective of this research was to find out and analyze the influence of service quality and price on customer satisfaction and its effect on the loyalty of on-line Go-Jek service users in Medan. The research used descriptive quantitative and associative explanatory research method. The population was on-line Go-Jek service users, and 130 of them were used as the samples, taken by using accidental sampling technique. The data were analyzed by using path analysis. The result of the research showed that 1) service quality had positive and significant influence on the satisfaction Go-Jek service users in Medan, 2) Price had positive and significant influence on the loyalty of Go-Jek service users in Medan, 3) Service quality had positive but significant influence on the loyalty of Go-Jek service users in Medan, 4) Price had positive and significant influence on the loyalty of Go-Jek service users in Medan, 5) Customer satisfaction had positive and significant influence on the loyalty of Go-Jek service users in Medan, 6) Service quality, through customer satisfaction, had positive and significant influence on the loyalty of Go-Jek service users in Medan, and 7) Price, through customer satisfaction, had positive and significant influence on the loyalty of Go-Jek service users in Medan.