REVEALING CUSTOMER SATISFACTION: A STUDY OF THE INTERACTION OF PRODUCT QUALITY AND WORD OF MOUTH ON PURCHASING DECISION

Abstract

Abstract

 In the midst of a rapidly industrializing world driven by open globalization, competition of business actors has become increasingly intense. This is particularly in the traditional culinary industries, such as MSMEs Nasi Gudeg Yogya Bu Rohmat, it requires MSME business actors in this industries must evaluate the factors that influence business success and determine how to gain a competitive advantage. This study aims to test and analyze the influence of product quality and word of mouth on consumer purchasing decisions of MSMEs Nasi Gudeg Yogya Bu Rohmat and its impact on customer satisfaction. This study is underpinned by an intriguing phenomenon: product quality and word of mouth recommendations remain key factors in attracting customers, and how traditional Gudeg cuisine is able to survive and thrive in the digital era. This study employed a quantitative approach utilizing a survey method administered of 100 customers of Nasi Gudeg Yogya Bu Rohmat, selected through a purposive sampling technique. Data were obtained by distributing questionnaires with a Likert scale of 1-5 and analyzed using IBM SPSS 26.0. The study results demonstrate that product quality significantly influence purchasing decisions positively (β=0.609, Sig<0.05) and word of mouth also demonstrate a significant positive effect (β=0.283, Sig<0.05). Furthermore, purchasing decisions have been shown to positively and significantly influence on customer satisfaction (β=0.876, Sig<0.05). The finding of this study reveal that the success of MSMEs Nasi Gudeg Yogya Bu Rohmat is highly dependent on the consistency of product quality, particularly regarding of taste, presentation, texture, and hygiene. Moreover, the role of word of mouth is also very important in shaping consumer trust so that it will ultimately have an impact on increasing their purchasing decisions. The practical implications of this study can assist other MSMEs actors in developing effective marketing strategies by emphasazing product quality and leveraging the power of word of mouth to enhance purchasing decisions and customer satisfaction.

Keywords: Product Quality, Word of Mouth, Purchasing Decision, Customer Satisfaction, MSMEs Gudeg Yogya