A binary logistic regression analysis of the effects of price, service quality, and promotion on customer satisfaction at Dita Pratama store

In today’s highly competitive business environment, organizations must demonstrate performance that aligns with customer expectations to achieve and sustain customer satisfaction. Customer satisfaction can be defined as the extent to which customers’ needs, desires, and expectations are fulfilled, leading to repeat purchases and continued loyalty. One of the most influential determinants of customer satisfaction is service quality. When service quality is inadequate and customers experience dissatisfaction, they are less likely to return and may share their negative experiences with others. Such behavior can threaten the firm’s reputation and long-term sustainability. Dita Pratama, located at Kampung Jerk King kit No. 84, Semarang City, is a retail enterprise engaged in the sale of tools and building interior materials. The company offers ready-to-sell products to both distributors and end customers. Given the broad and diverse characteristics of its end-customer base, understanding the factors that significantly influence customer satisfaction is essential for effective managerial decision-making and strategic planning, so that can be utilized to evaluate these influencing factors by logistic regression analysis. This statistical model allows researchers to analyze and predict the effects of multiple independent variables on customer satisfaction as a dependent variable and in this study is expected to identify the variables that have a statistically significant impact on the level of customer satisfaction at store.  Based on the analysis of customer data at Dita Pratama Store, the majority of the 100 questionnaire respondents were male and aged 36–45 years. The results of data processing indicate that all items in the questionnaire are valid, as each item’s calculated r value (r-count) is greater than the r-table value. The reliability test results also demonstrate consistency or acceptable reliability, showing that the variables of price (X1), service quality (X2), and promotion (X3) each have Cronbach’s Alpha coefficients greater than 0.6. The data were analyzed using binary logistic regression in SPSS. The results reveal that only two variables, price (X1) and service quality (X2), meet the criteria for having a significant effect on customer satisfaction, as indicated by their significance level (α < 0.10). In contrast, the promotion variable (X3) does not have a statistically significant influence on customer satisfaction, as indicated by its significance level (α > 0.10). Based on the findings of this study on logistic regression analysis, several recommendations can be proposed as follows: Managerial Focus on Price and Service Quality and Periodic Customer Satisfaction Surveys.