33 The Effect of Product Quality and Service Quality on Repurchase Intention with Customer Satisfaction as a Mediation Variables (Case Study on CV. Prima Anugerah Sejati) Fath Arief Mukti Universitas Negeri Jakarta Corresponding author email: fathariefmukti91@yahoo.co.id Budi Santoso Universitas Negeri Jakarta Agung Dharmawan Buchdadi Universitas Negeri Jakarta ABSTRACT This study aims to analyze the effect of product quality and service quality on repurchase intention with customer satisfaction as a mediating variable (a case study on the printing of CV. Prima Anugerah Sejati). As for customers of CV. Prima Anugerah Sejati who fill out the questionnaire are customers who have visited and used the services of CV. Prima Anugerah Sejati more than once with a total sample of 180 respondents. The method of data analysis in this study used the Structural Equation Modeling (SEM) method. The results of the research show that 1) Product Quality has a positive and significant effect on Customer Satisfaction, 2) Service Quality has a positive and significant effect on Customer Satisfaction, 3) Customer Satisfaction is able to significantly mediate the effect of Product Quality on Repurchase Intention, 4) Service Quality is able to mediate significant influence of Product Quality on Repurchase Intention, and 5) Customer Satisfaction has a positive and significant effect on Repurchase Intention. Keywords: repurchase intention, customer satisfaction, product quality, service quality Received: 9 February 2021 ; Accepted: 10 April 2023 ; Published: June 2023. mailto:fathariefmukti91@yahoo.co.id 34 Mukti, F.A., et.al. (2023). Journal of Business and Behavioural Entrepreneurship, 7(1), 33-44. How to Cite: Mukti, F.A., et.al. (2023). The Effect of Product Quality and Service Quality on Repurchase Intention with Customer Satisfaction as a Mediation Variables (Case Study on CV. Prima Anugerah Sejati). Journal of Business and Behavioural Entrepreneurship, 7(1), 33-44. https://doi.org/10.21009/JOBBE.007.1.03 INTRODUCTION Printing is a technology or art that produces copies of an image very quickly, such as words or images on paper, cloth, and other surfaces, while publishing is an industry that concentrates on producing and reproducing literature and information that can be of public interest. CV. Prima Anugerah Sejati is a printing company that was founded in 2012. Engaged in printing services, as well as providing consultation as a form of professionalism and services to consumers to increase customer satisfaction. This is done in order to compete with other similar businesses and attract customers to print. The high competition in the printing business is also experienced in Bekasi City where there are many printing companies as follows. Table 1 Data on the Number of Creative Industries in Publishing and Printing in Bekasi City in 2019 No Sector Amount Percentage 1 Printing 457 65,10 2 Publishing 245 34,90 Total 702 100% Based on Table 1 above, it can be seen that the percentage of printing in Bekasi City is 65.10% with 457 printing presses, and publishing is 34.90% with 245 publishers. This clearly shows that the competition in the printing industry is big. Kotler and Keller (2016) explain that satisfaction is characterized by a sense of pleasure, and vice versa if a customer is disappointed it can be said that the customer is not satisfied. In addition, the number of complaining customers also indicates that these customers are not satisfied. Therefore, customer complaints can be used as a tool to measure how much satisfaction is. Based on the reviews in the suggestion box there are several complaints as follows: Table 2 Data on Customer Complaints CV. Prima Anugerah Sejati 2019 No Customer complain Amount 1 Print results are not good and the quality is not as expected (there are blots / shadows on the image, cutting is not neat) 16 2 The speed in waiting for the order that has been ordered is quite long, not as promised 12 35 Mukti, F.A., et.al. (2023). Journal of Business and Behavioural Entrepreneurship, 7(1), 33-44. 3 The waiter does not really respond to consumer complaints such as complaints of printed results on the grounds of the design & no guarantee 7 4 Service is not good, does not know 3S and is careless 26 5 Printers are often damaged which causes printing to be delayed 6 Total 67 Based on the complaint data above, it is known that the Product Quality and Service Quality provided are the main complaints of customers. This is a concern of CV. Prima Anugerah Sejati to increase customer satisfaction so that it has an impact on increasing repurchase intention. Customers who make repurchase intention will make the company more sustainable for a long time (Kotler and Armstrong, 2014). According to Kotler and Keller (2016), customer satisfaction is one of the main determinants of achieving company goals, has a major influence on customer retention. Previous research conducted by Lagita and Vita (2018), Dewi and Wayan (2019), Devi and Eka (2018) and Rahmawati, et al (2018) shows that customer satisfaction has a significant effect on repurchase intention. Previous research conducted by Palma and Anik (2016) and Saidani and Samsul (2012) shows that Customer Satisfaction can mediate the effect of Product Quality on repurchase intention. Furthermore, previous research conducted by Raihana and Putu (2018) and Fadhila and Diansyah (2018) showed that Customer Satisfaction can mediate the influence of Service Quality on repurchase intention. LITERATURE REVIEW Repurchase Intention According to Tjiptono and Chandra (2016: 30) Repurchase Intention is defined as a consumer commitment that is formed after a consumer purchases a product or service. This is caused by a positive impression of consumers on a brand, such as consumers feeling satisfied with the goods or services they purchased. According to Ali (2013: 31) Repurchase Intention is a purchase interest that is based on the purchase experience that has been made in the past. Based on the description above, the researcher concludes that Repurchase Intention is a process of integrating consumers in buying goods or services that are used to meet their daily needs. Buying behavior arises because it is preceded by an interest in buying, one of which is due to the perception that the product is of good quality. So buying interest can be observed since before the buying behavior arises from consumers. Customer Satisfaction According to Kotler and Keller (2016: 138) Customer Satisfaction is a feeling of pleasure or disappointment for someone that arises from comparing the perceived performance of the product (or results) against their expectations. If performance fails to meet expectations, customers will be dissatisfied. If the performance is as expected, the customer will be satisfied. If performance exceeds expectations, customers will be very satisfied or happy. According to Rangkuti (2013: 7) Customer Satisfaction is a post- 36 Mukti, F.A., et.al. (2023). Journal of Business and Behavioural Entrepreneurship, 7(1), 33-44. purchase evaluation, where the alternatives purchased are at least equal to or exceed customer expectations. Sudaryono (2016: 78) explains that a satisfactory biased product or service is a money product or service capable of providing something that consumers are looking for to a sufficient level. Based on the description above, the researcher can conclude that customer satisfaction is the level of a person's feelings after comparing the performance or results he feels compared to his expectations. Product Quality The definition of product quality according to Kotler and Keller (2016: 4) defines product quality as something that can be offered to the market to satisfy a desire or need, including physical goods, services, experiences, events, people, places, properties, organizations, information and ideas. . Product quality is one of the best positioning marketing tools. Product quality has a direct impact on products and services and is most closely related to customer value and satisfaction (Kotler and Armstrong, 2014: 242). Based on the theory above, that high product quality causes companies to reduce error rates or reduce waste on products. A product that has quality is a product that can meet the needs and desires of consumers and can even exceed what consumers expect. Service Quality According to Kotler and Keller (2016: 143) service quality is all forms of activities carried out by companies to meet consumer expectations. Service in this case is defined as a service or service delivered by the service owner in the form of ease, speed, relationship, ability, and hospitality addressed through attitudes and characteristics in providing services for consumer satisfaction. This opinion is in line with Malik et al (2012: 125) which states that service quality is an opinion about what consumers feel about the whole that the company provides to customers. Based on the theories about service quality above, it can be concluded that service quality is an action taken by the company in the form of things that are intangible but can be felt. If the service received or felt is in accordance with consumer expectations, then the quality received or felt is in accordance with consumer expectations, then the service quality is perceived as ideal quality, but on the contrary if the service received or perceived is lower than expected. Research Hyphothesis Hypothesis 1: There is a positive and significant effect of Product Quality on Customer Satisfaction Printing CV. Prima Anugerah Sejati Hypothesis 2: There is a positive and significant effect of Service Quality on Customer Satisfaction Printing CV. Prima Anugerah Sejati Hypothesis 3: There is a positive and significant effect of Product Quality on Repurchase Intention with Job Satisfaction as a Mediation variable at Printing CV. Prima Anugerah Sejati 37 Mukti, F.A., et.al. (2023). Journal of Business and Behavioural Entrepreneurship, 7(1), 33-44. Hypothesis 4: There is a positive and significant effect of Service Quality on Repurchase Intention with Job Satisfaction as a Mediation variable at Printing CV. Prima Anugerah Sejati Hypothesis 5: There is a positive and significant effect of Customer Satisfaction on Repurchase Intention at Printing CV. Prima Anugerah Sejati Based on the formulation of the hypotheses that have been described, the conceptual framework of the research can be described as follows: H1 H3 H5 H2 H4 Figure 1. Research Model RESEARCH METHOD The research will be conducted at the CV. Prima Anugerah Sejati with a population of 372 in December 2020. Ferdinand (2014: 48) suggests that sample size guidelines depend on the number of indicators used in all latent variables, the sample size is the number of indicators multiplied by 5 to 10. This study uses 36 indicators, so that By using an estimate based on the number of indicators, the sample size is around 180 respondents. In this study, data analysis used was validity test, rehabilitation test and hypothesis testing using SEM-PLS on 4 (four) variables. RESULTS AND DISCUSSION Data Testing Results Validity test An indicator is declared valid if the measurement of the loading factor is above 0.70 so that if there is a loading factor below 0.70 it will be dropped from the model (Ghozali, 2014). Validity testing for reflective indicators uses a correlation between item scores and construct scores. Measurements with reflective indicators indicate a change in Product Quality (X1) Service Quality (X2) Customer Satisfaction (Z) Repurchase Intention (Y) 38 Mukti, F.A., et.al. (2023). Journal of Business and Behavioural Entrepreneurship, 7(1), 33-44. an indicator in a construct if other indicators of the same construct change (or are removed from the model). Table 3 Loading Factor Values Repurchase Intention Customer Satisfaction Product Quality Service Quality R I 1 0 . 8 8 8 K P 1 0 . 8 5 7 Q P 1 0 . 8 9 2 Q S 1 0 . 8 8 2 R I 2 0 . 9 5 2 K P 2 0 . 8 8 6 Q P 2 0 . 8 8 7 Q S 2 0 . 8 9 0 R I 3 0 . 8 9 9 K P 3 0 . 8 9 5 Q P 3 0 . 8 8 4 Q S 3 0 . 8 9 5 R I 4 0 . 9 2 4 K P 4 0 . 8 7 3 Q P 4 0 . 8 8 8 Q S 4 0 . 8 9 2 R I 5 0 . 8 9 0 K P 5 0 . 8 7 9 Q P 5 0 . 9 0 0 Q S 5 0 . 9 0 8 R I 6 0 . 9 3 2 K P 6 0 . 8 7 2 Q P 6 0 . 9 0 4 Q S 6 0 . 9 1 2 R I 7 0 . 8 9 6 K P 7 0 . 8 9 6 Q P 7 0 . 8 9 9 Q S 7 0 . 9 1 5 R I 8 0 . 8 7 5 K P 8 0 . 9 0 0 Q P 8 0 . 9 1 7 Q S 8 0 . 8 9 6 K P 9 0 . 8 9 3 Q S 9 0 . 9 2 8 K P 0 . 8 Q S 0 . 9 39 Mukti, F.A., et.al. (2023). Journal of Business and Behavioural Entrepreneurship, 7(1), 33-44. 1 0 9 4 1 0 2 1 Based on Table 3, it can be seen that all indicators are valid. This is because several indicators have been eliminated with a loading factor value below 0.70 (Ghozali, 2014). In addition to seeing the value of loading factors, convergent validity can also be assessed by looking at the average variance extracted (AVE) value. Table 4 Convergent Validity (AVE) Test Results Construct (AVE) Information Repurchase Intention 0.823 Valid Customer Satisfaction 0.783 Valid Product Quality 0.804 Valid Service Quality 0.817 Valid The results of the convergent validity construct test in Table 4 above, it can be seen that each construct has met the criteria with the average variance extracted (AVE) value having a value above 0.50 (Ghozali, 2014). Reliability Test The reliability test was carried out to prove the accuracy, consistency and accuracy of the instrument in measuring construction (Ghozali, 2014). Reliability test is carried out using the Composite Reliability and Cronbach's Alpha tests by looking at all latent variable values that have a Composite Reliability value or Cronbachs Alpha ≥ 0.7, it can be concluded that the construct has good reliability or the questionnaire used as a tool in this study is reliable or consistent. Table 5 Reliability Test Results Construct Cronbach's Alpha Composite Reliability Information Repurchase Intention 0.969 0.973 Reliabel Customer Satisfaction 0.975 0.978 Reliabel Product Quality 0.965 0.970 Reliabel Service Quality 0.969 0.974 Reliabel Table 5 shows that the results of the Composite Reliability test show that all latent variable values have a Composite Reliability value ≥ 0.7. And the results of Cronbach's Alpha test also show that all latent variable values have a Cronbach's Alpha value ≥ 0.7. From these results, it can be concluded that the construct has good reliability or that the questionnaire used as a tool in this research has been reliable or consistent. Hyphothesis Testing T-Statistic (bootsrapping) is used to see the significance value between constructs. Hair et al. (2014) suggest performing a bootstrapping procedure with a re-sample value of 5,000. The limit for rejecting and accepting the proposed hypothesis is ± 1.96, which 40 Mukti, F.A., et.al. (2023). Journal of Business and Behavioural Entrepreneurship, 7(1), 33-44. if the t-statistic value is in the range of -1.96 and 1.96 then the hypothesis will be rejected or in other words, accept the null hypothesis (H0). Table 6 Hypothesis Test Results Original Sample (O) Sample Mean (M) Standard Deviation (STDEV) T Statistics (|O/STDEV|) P- Values Product Quality → Customer Satisfaction 0.272 0.272 0.081 3.365 0.001 Service Quality → Customer Satisfaction 0.721 0.721 0.080 8.999 0.000 Customer Satisfaction → Repurchase Intention 0.305 0.305 0.086 3.259 0.020 Product Quality → Customer Satisfaction → Repurchase Intention 0.359 0.361 0.069 5.217 0.000 Service Quality → Customer Satisfaction → Repurchase Intention 0.638 0.636 0.068 9.328 0.000 Discussion Effect of Product Quality on Customer Satisfaction The results showed that product quality had a positive and significant effect on customer satisfaction. This shows that if the quality of the product offered is getting better, then customer satisfaction will increase. In order to compete and develop, companies are required to be able to provide quality products in order to meet customer needs and desires. From this description, it can be concluded that products and services that do not meet quality will very easily be abandoned by customers and switch to other competitors (Agustina, 2019: 38-49). To avoid this, of course, will prioritize product expansion and product quality oriented towards purchasing decisions. According to Kotler and Keller (2016: 144) "satisfaction depends on the quality of the company's products, because if the higher the level of product quality, the higher the resulting consumer satisfaction. 41 Mukti, F.A., et.al. (2023). Journal of Business and Behavioural Entrepreneurship, 7(1), 33-44. The results of this study are in line with previous research conducted by Saidani and Samsul (2019) and Palma and Anik (2016) which show that Product Quality has a positive and significant effect on Customer Satisfaction. Effect of Service Quality on Customer Satisfaction The results showed that service quality has a positive and significant effect on customer satisfaction. This shows that if the quality of service provided is getting better, then customer satisfaction will increase. Service quality has a very close relationship with customer satisfaction, that is, quality provides an impetus to customers to undergo a strong relationship with the company. In the long term this kind of bonding allows the company to thoroughly understand customer expectations and their needs. Thus, companies can increase customer satisfaction, which in turn customer satisfaction can create customer loyalty or loyalty to companies that provide satisfactory quality (Nilasari and Istiatin, 2015: 7). The results of this study are in line with previous research conducted by Arifki and Fullchis (2018) and Maramis, et al (2018) which show that Service Quality has a positive and significant effect on Customer Satisfaction. The Effect of Product Quality on Repurchase Intention with Customer Satisfaction as a Mediation Variable The results showed that Customer Satisfaction was able to significantly mediate the influence of Product Quality on Repurchase Intention. This shows that Customer Satisfaction is a factor that can significantly increase the influence of Product Quality on Repurchase Intention. Product quality plays an important role in affecting customer satisfaction. If the quality of the product produced is good, consumers will feel satisfied and will make a Repurchase Intention. Conversely, if the product quality is not as expected, consumers will divert their purchases to other similar products. Product quality is considered as a consumer's understanding of the overall quality or advantages of a product in relation to predetermined goals (Kartika & Lestari, 2018: 249). Product quality is a characteristic of a company where customers will feel satisfied when making a purchase or consuming it (Lestari & Yulianto, 2018: 74). When a customer is satisfied with the product he purchased, the customer will generate a Repurchase Intention. The results of this study are in line with previous research conducted by Palma and Anik (2016) and Saidani and Samsul (2012) which show that Customer Satisfaction is able to significantly mediate the effect of Product Quality on Repurchase Intention. Effect of Service Quality on Repurchase Intention with Customer Satisfaction as a Mediation Variable The results showed that Customer Satisfaction was able to significantly mediate the influence of Service Quality on Repurchase Intention. This shows that Customer Satisfaction is a factor that can significantly increase the influence of Service Quality on Repurchase Intention. Good quality service is less likely for customers to complain to the company. So that the costs incurred by the company for maintenance are also reduced and have 42 Mukti, F.A., et.al. (2023). Journal of Business and Behavioural Entrepreneurship, 7(1), 33-44. implications for repurchasing (Tjiptono, 2016: 169). Before service quality can affect repurchase, a quality service that is said to be good will first satisfy customers. Customer satisfaction also has the potential to provide a number of specific benefits, including the potential to be a source of income in the future, especially buying back (Tjiptono, 2016: 170). The results of this study are in line with previous research conducted by Fadhila and Diansyah (2018) and Raihana and Putu (2018) which show that Customer Satisfaction is able to significantly mediate the effect of Service Quality on Repurchase Intention. The Effect of Customer Satisfaction on Repurchase Intention The results of this study indicate that customer satisfaction has a positive and significant effect on repurchase intention. This shows that if Customer Satisfaction is increasing, then Repurchase Intention will increase. Consumers who have an interest in buying back or repurchase intention play a very important role in the development of a brand from a company (Rahmawati, et al, 2018: 294). According to Teresia (2013: 6) repurchase intention is a consumer's decision to repurchase a certain product or service by considering the possible results that will occur and is influenced by the level of preference for the product. Repurchasing of customers is the most important goal for the success of the company, because to generate new customers requires a greater cost than the cost of maintaining existing customers. As a result, companies focus more on maintaining existing customers or fostering customer repurchase interest rather than focusing on acquiring new customers (Belopa, 2015: 662). Consumers will feel satisfied if the products or services produced by the company are able to meet their needs and expectations, and vice versa. Consumers who experience satisfaction after using a product or service have the possibility not to change their choice by not looking for other brand alternatives for their next purchase (Rahmawati, et al, 2018: 295). The results of this study are in line with previous research conducted by Devi and Eka (2018) and Dewi and Wayan (2019) which show that Customer Satisfaction has a positive and significant effect on Repurchase Intention. CONCLUSION Based on the research results, it is known that Product Quality has a positive and significant effect on Customer Satisfaction, Service Quality has a positive and significant effect on Customer Satisfaction, Customer Satisfaction is able to significantly mediate the influence of Product Quality on Repurchase Intention, Service Quality is able to mediate the influence of Product Quality on Repurchase Intention significantly. significant. This shows that CV Customer Satisfaction and Customer Satisfaction have a positive and significant effect on Repurchase Intention. Recommendation It is recommended that CV. Prima Anugerah Sejati is able to improve the quality of prints, especially on the color accuracy requested by customers. This can be done by conducting consultation sessions with customers regarding their needs for the products to 43 Mukti, F.A., et.al. (2023). Journal of Business and Behavioural Entrepreneurship, 7(1), 33-44. be printed so that the products produced are able to provide satisfaction for customers and create the desire to make repurchases. In addition, it is recommended that CV. Prima Anugerah Sejati is able to improve the quality of service, especially in relation to a more comfortable waiting room. The waiting room is related to physical evidence or the physical appearance of the CV building. Prima Anugerah Sejati. This will add to the brand image of CV. Prima Anugerah Sejati and attract customers to visit the company again. For further research, other variables can be used to test their effect on Repurchase Intention such as Word of Mouth, Brand Image and others. REFERENCES Arifki, A.F dan Nurtjahjani, F. (2018). “Pengaruh Kualitas Produk dan Kualitas Pelayanan terhadap Kepuasan Konsumen di Alfabeth Store Pasuruan”. Jurnal Aplikasi Bisnis, 4(1): 281-285. Devi, P.S dan Sulistyawati, E. 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