Product Quality and Price Perception Drive Customer Loyalty in Local Perfume Market

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FORMOSA NEWS - Bandung - A 2026 study by Ivan Kharisma, Putu Nina Madiawati, and Yogi Suprayogi from Telkom University in Bandung, Indonesia, reveals that product quality and price perception are the primary drivers of customer loyalty in the local perfume industry. Published in the Asian Journal of Applied Business and Management (AJABM), the research highlights how customer satisfaction acts as a crucial bridge between product value and long-term brand loyalty. The findings are significant as Indonesia’s local perfume market continues to expand rapidly, intensifying competition among brands.

The growth of local perfume brands in Indonesia reflects a broader trend of rising consumer preference for domestic products. However, with increasing choices available, maintaining customer loyalty has become a major challenge. Consumers are no longer driven solely by brand recognition; they expect consistent quality, fair pricing, and meaningful value. This shift makes it essential for businesses to understand what truly influences repeat purchases and customer retention.

The research uses a quantitative approach, collecting data from consumers who actively use local perfume products. The team applied statistical analysis methods to examine relationships between product quality, price perception, perceived value, customer satisfaction, and loyalty. By analyzing these variables simultaneously, the researchers were able to identify both direct and indirect effects influencing customer behavior.

The study delivers several key findings that are highly relevant for business strategy:

  • Product quality has a strong and direct impact on customer satisfaction. Elements such as fragrance durability, uniqueness of scent, and packaging quality significantly shape consumer perception.
  • Price perception plays a critical role in determining perceived value. Customers are more satisfied when they believe the price matches the quality they receive.
  • Customer satisfaction is the most influential factor driving loyalty. Satisfied customers are more likely to repurchase and recommend the product to others.
  • Perceived value strengthens the relationship between product quality and loyalty. Customers who see high value in a product are more resistant to switching brands.

These findings confirm that loyalty is not built through a single interaction but through consistent and positive customer experiences over time. In a competitive market like local perfumes, even small inconsistencies in quality or pricing can lead customers to explore alternatives.

Ivan Kharisma from Telkom University explains that customer loyalty is shaped by a combination of tangible and psychological factors. He emphasizes that “customer loyalty is not only determined by the physical product, but also by how consumers perceive the value they receive compared to the price they pay.” This perspective reinforces the importance of aligning product performance with customer expectations.

The implications of this research extend beyond the perfume industry. For businesses, the study provides a clear roadmap for building sustainable customer relationships:

  • Maintain consistent product quality, especially in core attributes such as performance and reliability.
  • Set pricing strategies that reflect perceived value rather than simply competing on low cost.
  • Focus on customer experience as a long-term investment, not a short-term tactic.
  • Strengthen brand communication to highlight value, not just features.

For policymakers and educators, the research offers insights into how local industries can remain competitive in both domestic and global markets. Supporting small and medium enterprises (SMEs) in improving product quality and branding could significantly enhance their sustainability.

Despite its contributions, the study acknowledges certain limitations. The data was collected within a specific timeframe, which may not fully capture changes in consumer behavior over time. Future research is recommended to use longitudinal approaches to better understand how customer loyalty evolves in dynamic markets.

Author Profile

Ivan Kharisma is a marketing researcher affiliated with Telkom University, specializing in consumer behavior and customer loyalty strategies. He collaborated with Putu Nina Madiawati, an academic expert in marketing management, and Yogi Suprayogi, a researcher focused on quantitative business analysis. Together, they contribute to advancing knowledge in marketing and business strategy, particularly in the context of local consumer products.

Source
Kharisma, I., Madiawati, P. N., & Suprayogi, Y. (2026). The Influence of Product Quality and Price Perception on Customer Loyalty with Customer Satisfaction as a Mediating Variable in Local Perfume Products. Asian Journal of Applied Business and Management (AJABM), Vol. 5, No. 2, pp. 531–544. URL: https://journalajabm.my.id/index.php/ajabm

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