The Effect of Price, Product Quality, Brand Image on Consumer

Loyalty: Study on Consumer Ouval Research on Jalan Dr. Mansyur

Medan City

Ricky Dian Adytama Sinulaki and Onan Marakali Siregar

Department of Business Administration Science, Faculty of Social Science and Political Science,

Universitas Sumatera Utara, Jl. Prof. Dr. A. Sofyan No. 1 Kampus USU, Medan, Indonesia

Keywords: Price, Product Quality, Brand Image, Product Loyalty, Ouval Research

Abstract: Loyalty is one of the success factors in marketing a product. Lack of consumer loyalty to the products Ouval

Research offers makes sales of Ouval Research products inconsistent. Factors that can maintain consumer

loyalty such as price, product quality, and brand image. The purpose of this research is to analyze the effect

of price on consumer loyalty, analyze the effect of product quality on consumer loyalty, analyze the effect of

brand image on consumer loyalty, and analyze the effect of price, product quality, brand image on consumer

loyalty Ouval Research Medan. The research method used in this research is quantitative. The population in

this research were SCH consumers, the sample set was 96 respondents. The results of this study indicate that

the price (X1) has no significant effect on consumer loyalty. Meanwhile, product quality (X2) and brand

Image (X3) significantly influence consumer loyalty. However, price, product quality, brand image have an

simultaneous effect on consumer loyalty (Y). The value of the coefficient of determination of this study shows

that the variable price, product quality, brand image can explain the variable consumer loyalty of 77.9%.

1 INTRODUCTION

The rapid development of business has an impact on

the demands of business actors in presenting

products, services, goods, and services that can retain

and attract consumers. Business actors are expected

to be able to develop their business in terms of

marketing management to survive in a competitive

and rapidly changing trading situation. If business

actors cannot compete with competitors, they can

impact on the sustainability of its business. One of the

business scopes that is also experiencing

development is the business in the fashion sector.

According to Salim and Ernawati (2017) the fashion

or apparel industry has recently become a vital

industry that contributes to gross domestic product.

Based on data, the value of apparel production

globally has grown by 3.1% annually. In Indonesia,

the market share of apparel production has increased

by 1.1% annually. The development of the fashion

industry is also influenced by the increase in the needs

and desires or lifestyles of people who are

increasingly heterogeneous and are caused by the

flow of information exchange. Based on data from the

assessment and development of the apparel industry,

there are around 1,705 apparel industry companies in

Indonesia and 1,540 of them are owned by local

companies, but only 113 companies registered in the

APGAI register their trademarks nationally (BPPKP,

2015). The development of authorized dealers in the

fashion industry in Indonesia is strongly influenced

by cultural trends in choosing fashion preferences.

According to Sawyer (2019), today's young people

have more of a streetwear type of fashion.

Streetwear clothing models not only adapt apparel

that has an aesthetic style that is not outdated but also

the quality that is presented. As a result, many young

people in Indonesia have abandoned the concept of

fashion distributions (Putra, 2021). One of the apparel

brands that has an authorized dealer located in North

Sumatra, precisely in the city of Medan, is Ouval

Research.

Ouval Research (SCH) which is a clothing

manufacturer/distributor to produce apparel, pants,

jackets, bags, and others. This company was founded

in 1997 in Bandung which is one of the leading

garment manufacturers in Indonesia, especially in

Bandung. Ouval Research (SCH) has several

Sinulaki, R. and Siregar, O.

The Effect of Price, Product Quality, Brand Image on Consumer Loyalty: Study on Consumer Ouval Research on Jalan Dr. Mansyur Medan City.

DOI: 10.5220/0011566600003460

In Proceedings of the 4th International Conference on Social and Political Development (ICOSOP 2022) - Human Security and Agile Government, pages 307-311

ISBN: 978-989-758-618-7; ISSN: 2975-8300

 2023 by SCITEPRESS – Science and Technology Publications, Lda. Under CC license (CC BY-NC-ND 4.0)

307

distribution subsidiaries spread across major cities in

Indonesia such as Makassar, Surabaya, South Jakarta,

Bogor, Yogyakarta, Bali and Medan. Based on sales

data from Ouval Research (SCH) throughout

Indonesia.

Table 1. The Sales in Big Cities

No Kota

Penjualan (unit)

2019 2020 2021

1 Jakarta Selatan 5.633 4.503 4.961

2 Makassa

8.912 9.044 9.345

3 Bo

2.031 3.187 2.987

4 Suraba

a 7.091 7.601 8.011

5 Yo

akarta 6.778 7.021 7.341

6 Medan 8.765 7.882 8.408

7 Bali 5.610 6.033 6.519

Based on the table, it can be seen that the number

of sales of Ouval Research (SCH) which experienced

sales fluctuations during 2021 this happened from

February where sales of Ouval Research (SCH)

decreased to 630 units even in March there was a

decline in sales of 601 units where in March the

previous January sales touched 736 units. The next

thing that can be seen is that sales of Ouval Research

(SCH) experienced a fairly high sales increase

compared to other months, namely April, May, and

December where in these months there are major

holidays such as Eid al-Fitr. and also Christmas.

In the explanation above, it is known that sales

fluctuations occur due to several factors, both internal

and external factors of Ouval Research (SCH), where

internal factors are caused by the lack of variety of

SCH product designs so that consumers tend to be

bored with designs that are less diverse. variety, and

its external factors are caused by there are many local

brands that have designs that are more attractive to

young people, where the majority of new brands that

have sprung up carry more design concepts with

streetwear themes so that they have a direct impact on

Ouval Research (SCH) sales. These factors are what

cause the lack of consumer interest to maintain their

loyalty to products from Ouval Research, even

though consumer loyalty has an effect on the

sustainability of a business.

Based on on background behind The problem

above is the reason why researchers are interested in

researching Ouval Research (SCH) in the city of

Medan because the clothing line business has been

growing, this can be seen from the increasing number

of local fashion products on the market, both those

who have opened physical stores or those that are still

just online stores. Coupled with the famous

consumptive population. In addition, researchers are

also interested because Ouval Research (SCH) has

been established since 1997 until now which if it is

calculated that Ouval Research (SCH) has been

established for almost 25 years, it means that the

brand image owned by Ouval Research (SCH) is as a

brand that has products with good quality at relatively

low prices,

Based on this, the researcher wants to know

whether price, product quality, brand image affect

consumer loyalty at the Ouval Research (SCH) store

located on Jalan Dr.Mansyur Medan. The title of this

research is "The Influence of Price, Product Quality,

Brand Image on Consumer Loyalty" (Study on

Consumer Ouval Research on Jalan Dr. Mansyur

Medan City.

2 LITERATURE REVIEW

2.1 Marketing

According to Kotler and Keller (2018:5) marketing is

a societal process by which individuals and groups

obtain what they need and want through creating,

offering, and freely exchanging products and services

of value with others. According to Priansa (2017:30)

says that marketing comes from the word market. In

simple terms, the market can be understood as a place

where a group of sellers and buyers meet to carry out

transactions for exchanging goods. Markets are

places where consumers with their needs and wants

are available and able to engage in exchanges to

satisfy those needs and wants.

2.2 Price

Kotler and Armstrong (2018:308) state that price as

the amount of money charged for a product or service,

the sum of the values that customers exchange for the

benefit of having or using the product or service. In

addition, according to Alma (2016:171) that price is

an attribute attached to an item that allows the item to

meet needs, desires, and satisfaction. The price

indicators according to Kotler & Armstrong

(2018:308) consist of affordable prices, conformity

with quality, conformity with benefits,

competitiveness.

2.3 Product Quality

According to Kotler and Armstrong (2018:250) the

quality of the product itself is a measure or an ability

product in maintain quality and be able to perform its

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functions and performance in accordance with what

is desired and needed by consumers. Putro (2014)

explains that product quality is a characteristic

possessed by goods or services in meeting the needs

and maintaining the quality of the product. Product

quality indicators according to Tjiptono (2016:134)

are product performance, features, reliability or

reliability, conformation of specifications, durability,

serviceability, aesthetics.

2.4 Brand Image

Brand image is formed from consumer perceptions or

perceptions of a product that is owned by a particular

brand (Lasander, 2013). Another opinion was

expressed by Kenneth and Donald (2018:42) who

explained that brand image reflects consumer and

company sentiment towards the whole organization,

not just individual products, and product lines. The

brand image indicators according to Kotler and Keller

(2018:347) consist of the strength of brand

associations, the advantages of brand associations,

and the uniqueness of brand associations.

2.5 Consumer Loyalty

According to Kotler and Keller (2018:138) the notion

of consumer loyalty is a deeply held commitment to

rebuy or repatronize a preferred product or service in

the future despite situational influences and

marketing efforts having the potential to cause

switching behavior. Customer loyalty is people who

regularly repurchase products or there is a condition

that requires customers to buy at least twice in a

certain time interval (Griffin, 2015:5). Indicators of

consumer loyalty according to Kotler & Keller

(2018:57) are repurchase, shopping retention, and

customer loyalty provide references to others.

3 RESEARCH METHODS

This study uses associative method with quantitative

approach. The population in this study are all

consumers who have shopped at the Ouval Research

(SCH) Store at least 2 times, the number of which is

not known with certainty. The technique for

determining the number of samples is the purposive

sampling method with 96 respondents, designs in data

collection using google form and data processing

through SPPS. The measurement instrument in this

study uses a Likert scale to produce accurate

quantitative data. Furthermore, the research

instrument test was carried out, which included

normality, multicollinearity, heteroscedasticity, and

linearity tests to ascertain whether the instruments

made could be used as analytical tools in this study.

4 RESULTS AND DISCUSSION

4.1 Effect of Price on Consumer

Loyalty Ouval Research Medan

City

Table 2: Partial Significance Test Results (t Test).

Based on the results of the t-test in the table above, it

can be concluded that: The test results for the Price

variable (X1) on Consumer Loyalty (Y) obtained a

tcount value of 1.698 the value of tcount is greater

than ttable, which is 1,662 (1,698 > 1,662). That the

significant value obtained is greater than 0.05 (0.93 >

0.05) and the regression coefficient is positive at

0.137. This shows that the price variable (X1) has an

insignificant effect on Consumer Loyalty (Y). The

results of this study are because the prices offered by

Ouval Research are in accordance with the prices

expected by consumers with product quality that is

classified as very good, so consumers do not fully

think about it when making their next purchase.

4.2 The Effect of Product Quality on

Consumer Loyalty Ouval Research

Medan City

Based on the test results for the Product Quality

variable (X2), the tcount value is 3,265, which means

the tcount value is greater than ttable, which is 1,662

(3.265 > 1.662) with a significant value smaller than

0.05 (0.002 <0.05) and the coefficient regression

value is 0.147. This shows that the Product Quality

variable (X2) has a significant effect on Consumer

Loyalty (Y). This is inseparable from Ouval

Research's commitment to always innovate in every

product marketed so that product quality always

experiences significant progress and ultimately

The Effect of Price, Product Quality, Brand Image on Consumer Loyalty: Study on Consumer Ouval Research on Jalan Dr. Mansyur Medan

City

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makes consumers believe in Ouval Research

products. This result is also in line with the theory of

Kotler & Armstrong (2018:250) which states that

product quality is a measure or capability that the

product has in the form of goods or services and

consists of several characteristics that maintain

quality and function in meeting expectations

consumer. Where consumers always expect good

product quality with various variations of these

products. Good product quality can attract the

attention of consumers to buy the product and

potentially become loyal to the product.

4.3 The Effect of Brand Image on

Consumer Loyalty Ouval Research

Medan City

From the test results for the brand image variable

(X3), the tcount value is 4.403, which means the

tcount value is greater than ttable, which is 1.662

(4.403 > 1.662) with a significant value smaller than

0.05 (0.000 <0.05) and the coefficient regression is

0.288. This shows that the Product Quality variable

(X2) has a significant effect on Consumer Loyalty

(Y). This is because SCH always makes innovations

in their marketing targeting young people, namely by

creating social media in the form of Instagram so that

it can always be reached by young people and also

doing several collaborations with other local fashion

brands such as this latest one. they collaborated with

the Maternal Disaster brand. This can be seen from

their commitment to embed the word “Research” on

their brand, which indicates that Ouval Research will

continue to change according to the wishes of its

consumers.

4.4 Effect of Price, Product Quality,

Brand Image on Consumer Loyalty

of Ouval Research Medan City

Table 3: Simultan Result ( F - Test).

Based on the results of data processing in the table

above, it can be concluded that the Fcount value

obtained is 112,703, which means the fcount value is

greater than the Ftable value, which is 112,703 >

2,704 or based on the sig value. Is 0.000 < 0.05.

Through these results the independent variables

namely Price (X1), Product Quality (X2), Brand

Image (X3) have an equal (simultaneous) effect on

the dependent variable, namely Consumer Loyalty

(Y).

This is because SCH products have quite

affordable prices so that they can be purchased by

various groups including young people, plus the

quality of the products offered by SCH are in

accordance with the wishes of their consumers and

also the brand image owned by SCH is strong enough

in the minds of its consumers. because the brand

activation carried out by SCH such as collaborating

and holding several special concerts in several stores,

including one in Medan, is very successful in making

consumers always loyal to the products they market.

Meanwhile, the results of the coefficient of

determination r value of 0.887, where this coefficient

value shows the relationship between Price (X1),

Product Quality (X2), Brand Image (X3) on

Consumer Loyalty (Y) which is quite close if the

value of R is closer to 1, the better the model will be.

The value of the coefficient of determination above

shows that Price (X1), Product Quality (X2), Brand

Image (X3) can explain the Consumer Loyalty

variable (Y) of 77.9% while the rest is 22.1% is

influenced by other variables that are not explained in

this study.

5 CONCLUSIONS

5.1 Conclusion

The price variable (X1) has a negative and partially

insignificant effect on consumer loyalty (Y). So the

price variable has no significant effect on consumer

loyalty at the Ouval Research (SCH) store on Jalan

Dr. Mansyur Medan City

Product quality variable (X2) has a positive and

partially significant effect on consumer loyalty (Y).

This proves that product quality affects consumer

loyalty at the Ouval Research (SCH) store on Jalan

Dr Mansyur, Medan City.

Brand image variable (X3) has a positive and

partially significant effect on consumer loyalty (Y).

Thus, proving that brand image affects consumer

loyalty Ouval Research (SCH) stores on Dr. Mansyur

Street, Medan City.

The independent variables, namely price (X1),

product quality (X2), brand image (X3) have an equal

(simultaneous) effect on the dependent variable,

namely consumer loyalty (Y).

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5.2 Suggestions

This research becomes input for Ouval Research

regarding product quality in terms of aesthetics and

also serviceability. Due to the products marketed by

Ouval Research has a similar design motif. To

overcome this, Ouval Research can collaborate with

designers or other brands so that Ouval Research

product designs have a variety of product designs and

are also unique compared to competing products.

Ouval Research is expected to pay more attention

to their brand image, especially in terms of the

uniqueness of brand associations. Due to the

existence of an advantage or brand originality owned

by Ouval research, it will make the products marketed

more appreciated by consumers and increase the pride

of consumers in using products so that it will have an

impact on consumer loyalty.

Ouval Research is expected to pay more attention

to brand activation, because through this brand

activation, customers can be even more loyal to the

products that SCH markets. For example, like

usebrand ambassador to make para consumers are

becoming more interested in SCH products, as well

as carrying out other activities, especially at the SCH

store so that consumers are more likely to shop

directly.

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