The Effect of Product Quality and Service Quality on Customer Satisfaction: The Mediating Role of Perceived Value in the Mobile Coffee Business

Abstract

This study examines the effect of product quality and service quality on customer satisfaction, both directly and indirectly through perceived value as a mediating variable, within the rapidly expanding mobile coffee business format in Indonesia. The empirical setting is Sejuta Jiwa Mobile Coffee in South Jakarta, whose operating fleet grew from 50 to 250 units within a single year, a pace of expansion that has intensified the challenge of maintaining consistent customer satisfaction across a decentralized network of sales points. Using a quantitative survey design, data were collected from 150 customers selected through purposive sampling and analyzed using Structural Equation Modeling based on Partial Least Squares (SEM-PLS) with SmartPLS 4.0. The results show that both product quality and service quality exert a positive and significant direct effect on customer satisfaction, with product quality emerging as the stronger determinant. Perceived value is also found to exert a significant direct effect on satisfaction and to partially mediate the effects of both product quality and service quality on satisfaction. The proposed model explains 63.4% of the variance in customer satisfaction. These findings extend the quality value satisfaction framework, previously examined mainly in fixed-location coffee shop and café settings, to the structurally distinct mobile coffee format, and offer practical guidance for operators seeking to sustain customer satisfaction amid rapid, fleet-based commercial expansion.