The Influence of Product Quality, Price, and Environmental Awareness On Consumer Loyalty Through Consumer Satisfaction In Palm Oil Smees In Medan Sinembah Village

Abstract

This study aims to analyze the influence of product quality, price, and environmental awareness on consumer loyalty through consumer satisfaction at broom fiber (Sapu Ijuk) MSMEs in Medan Sinembah Village. This research employed a quantitative approach using Partial Least Squares–Structural Equation Modeling (PLS-SEM). Primary data were collected through questionnaires distributed to 140 respondents using purposive sampling. Data analysis was conducted using SmartPLS to examine both direct and indirect relationships among variables. Previous research has been dominated by modern industrial or service products, but this research discusses environmentally friendly traditional products, the research on which is still limited. The results indicate that product quality, price, and environmental awareness have positive and significant effects on consumer satisfaction. These three variables also have positive and significant effects on consumer loyalty. Furthermore, consumer satisfaction has a positive and significant effect on consumer loyalty. Consumer satisfaction partially mediates the relationships between product quality, price, and environmental awareness with consumer loyalty. The R-square values show that product quality, price, and environmental awareness explain of the variance in consumer satisfaction, while consumer loyalty is explained by the proposed model, indicating moderate to substantial explanatory power. These findings suggest that consumer loyalty in broom fiber MSMEs is influenced not only by functional factors such as product quality and price, but also by environmental awareness, with consumer satisfaction serving as a key mediating factor. This study provides practical implications for MSME practitioners to improve product quality, establish appropriate pricing strategies, and strengthen environmentally friendly values in order to enhance consumer satisfaction and loyalty sustainably.