The Effect of Perceived Value and Satisfaction on Repeat Purchase

Abstract

Objective – This study set out to examine the effect of perceived value and satisfaction on repeat purchase. Training service companies are competing by encouraging their managers to increase repeat purchase. Methodology/Technique – Data from a survey of 300 customers of public training are used to scientifically verify the model. Path analysis is used to process the data. Findings – Results show that perceived value and satisfaction have indirect effect on repeat purchase through the mediating role of service quality. Satisfaction and perceived value are important predictors in enhancing service quality, but do not directly affect repeat purchase. Surprisingly, the direct effect on repeat purchases stems from service quality while recent researches suggest satisfaction is the antecedent. The findings suggest that training service companies should exert all efforts to improve service quality through service delivery training for their employees. Novelty - Most of the literature considers purchase as an attitudinal (namely purchase intention), while this study focuses on behavioural (namely repeat purchase) that consider to be more actual and impactful for companies’ sustainability. Type of Paper: Empirical. JEL Classification: M3, M31. Keywords: Path Analysis, Perceived Value, Repeat Purchase, Satisfaction, Service Quality Reference to this paper should be made as follows: Hidayati, A; Kountur, R; Suwanda, S.T. (2020). The Effect of Perceived Value and Satisfaction on Repeat Purchase, J. Mgt. Mkt. Review, 5(4) 197 – 205. https://doi.org/10.35609/jmmr.2020.5.4(1)