The Effect of Price and Promotion on Customer Satisfaction With Service Quality as a Mediating Variable at Leslie Rent Car in Medan
DOI:
https://doi.org/10.51601/ijse.v6i2.488Abstract
This study examines the effect of price and promotion on customer satisfaction with service quality as a mediating variable at Leslie Rent Car in Medan. The research was designed to identify the main factors that shape customer satisfaction in the car rental service sector and to test whether service quality acts as an important mechanism linking marketing variables to customer satisfaction. A quantitative approach was employed using survey data collected from 382 active customers of Leslie Rent Car in Medan. The data were analyzed using Structural Equation Modeling based on Partial Least Squares (SEM-PLS), including measurement model evaluation, structural model testing, and hypothesis testing. The results show that all indicators met the requirements of convergent validity, discriminant validity, and reliability, indicating that the measurement model was acceptable. In the structural model, customer satisfaction was explained by price, promotion, and service quality with an R-square value of 0.510, while service quality was explained by price and promotion with an R-square value of 0.035. Hypothesis testing revealed that price had a positive and significant effect on service quality and customer satisfaction. Service quality also had a positive and significant effect on customer satisfaction and was found to be the strongest predictor in the model. In addition, service quality significantly mediated the relationship between price and customer satisfaction. However, promotion did not have a significant effect on service quality or customer satisfaction, and service quality did not mediate the effect of promotion on customer satisfaction. The study concludes that customer satisfaction at Leslie Rent Car is primarily influenced by fair and appropriate pricing as well as the actual quality of service experienced by customers. Service quality plays a central role in transforming price perceptions into customer satisfaction, while promotion alone is not sufficient to improve either service quality or satisfaction. These findings suggest that improving vehicle condition, punctuality, staff friendliness, driver competence, and special attention should become the company’s primary strategic focus.
Downloads
References
[1] P. Christidis, A. Christodoulou, E. Navajas-Cawood, and B. Ciuffo, “The post-pandemic recovery of transport activity: Emerging mobility patterns and repercussions on future evolution,” Sustainability (Switzerland), vol. 13, no. 11, Jun. 2021, doi: 10.3390/su13116359.
[2] M. A. Esquivias, L. Sugiharti, H. Rohmawati, B. Setyorani, and A. Anindito, “Tourism demand in indonesia: Implications in a post-pandemic period,” Geojournal of Tourism and Geosites , vol. 37, no. 3, pp. 951–958, Jan. 2021, doi: 10.30892/gtg.37329-731.
[3] A. R. Hakim, N. D. Nachrowi, D. Handayani, and I. D. G. K. Wisana, “The measuring of urban amenities index and its effect on migration: Evidence from Indonesian cities,” Regional Statistics, vol. 13, no. 2, pp. 324–351, 2023, doi: 10.15196/RS130206.
[4] P. Kotler, K. L. Keller, and A. Chernev, Marketing Management, Global 16e. Harlow, UK: Pearson Education Limited, 2022.
[5] Z. Yang et al., “Key Green Performance Indicators (KGPIs) for vehicle cleanliness evaluation: A buyer choice,” Transp. Res. D Transp. Environ., vol. 87, Oct. 2020, doi: 10.1016/j.trd.2020.102505.
[6] E. Enyeribe, O. Qayyum Olayemi, and O. Sunday, “The Impact of Fleet Management on Vehicle Leasing and Customer Satisfaction: A Case Study of ICS Outsourcing Nigeria Limited,” Unilag Journal Of Transport And Logistics, vol. 2, no. 1, pp. 2025–134, 2025.
[7] K. E. Putra and J. M. Sitanggang, “The Effect of Public Transport Services on Quality of Life in Medan City,” Procedia Soc. Behav. Sci., vol. 234, pp. 383–389, Oct. 2016, doi: 10.1016/j.sbspro.2016.10.255.
[8] Y. Pasharibu, L. Paramita, and S. Febrianto, “Price, service quality and trust on online transportation towards customer satisfaction,” Jurnal Ekonomi dan Bisnis, vol. 21, no. Oktober, pp. 240–264, 2018.
[9] H. Rahmi and K. Harahap, “The Influence Of Service Quality, Trust And Customer Satisfaction On Maxim’s Customer Loyalty In Medan City,” Journal of Economics and Business (JECOMBI), vol. 3, no. 2, p. 2023, 2023, [Online]. Available: http://jecombi.seaninstitute.or.id/index.php/JECOMBI/index
[10] G. Bata Ilyas and H. Mustafa, “Price, Promotion, and Supporting Facilities on Customer Satisfaction,” Golden Ratio of Marketing and Applied Psychology of Business, vol. 2, no. 1, pp. 01–11, Jan. 2022, doi: 10.52970/grmapb.v2i1.65.
[11] S. C. Sun, “Public Transit Loyalty Modeling Considering the Effect of Passengers’ Emotional Value: A Case Study in Xiamen, China,” J. Adv. Transp., vol. 2018, 2018, doi: 10.1155/2018/4682591.
[12] G. Nadarajan, J. Bojei, and H. Khalid, “The study on negative eWOM and its relationship to consumer’s intention to switch Mobile Service Provider,” in Procedia Computer Science, Elsevier B.V., 2017, pp. 388–396. doi: 10.1016/j.procs.2017.12.169.
[13] A. M. B. de F. Marcos and A. F. de M. Coelho, “Service quality, customer satisfaction and customer value: holistic determinants of loyalty and word-of-mouth in services,” The TQM Journal, vol. 34, no. 5, pp. 957–978, Nov. 2022, doi: 10.1108/TQM-10-2020-0236.
[14] Sugiyono, Metode Penelitian Kuantitatif, Kualitatif, dan R&D. Bandung: Alfabeta, 2019.
[15] H. Choi, H. W. Joung, E. K. Choi, and H. S. Kim, “Understanding vegetarian customers: the effects of restaurant attributes on customer satisfaction and behavioral intentions,” Journal of Foodservice Business Research, vol. 25, no. 3, pp. 353–376, 2022, doi: 10.1080/15378020.2021.1948296.
[16] P. Wisutwattanasak et al., “Modeling Extended Service Quality for Public Transportation in the Post-Pandemic Period: Differentiating between Urban and Rural Areas: A Case Study of Intercity Railway, Thailand,” Logistics, vol. 7, no. 4, Dec. 2023, doi: 10.3390/logistics7040093.
[17] F. Jelti, A. Allouhi, and K. A. Tabet Aoul, “Transition Paths towards a Sustainable Transportation System: A Literature Review,” Nov. 01, 2023, Multidisciplinary Digital Publishing Institute (MDPI). doi: 10.3390/su152115457.
[18] P. Kotler, G. Armstrong, and S. Balasubramanian, Principles of Marketing, 19th ed., vol. Global Edition. Harlow, Essex, UK: Pearson Education Limited, 2024.
[19] Q. H. Do, T. Y. Kim, and X. Wang, “Effects of logistics service quality and price fairness on customer repurchase intention: The moderating role of cross-border e-commerce experiences,” Journal of Retailing and Consumer Services, vol. 70, p. 103165, Jan. 2023, doi: 10.1016/j.jretconser.2022.103165.
[20] F. A. Katili, F. A. Robby, and P. W. Handayani, “The influence of the ride hailing apps loyalty program on customer loyalty: A case study in Indonesia,” Transp. Res. Interdiscip. Perspect., vol. 26, Jul. 2024, doi: 10.1016/j.trip.2024.101141.
[21] A. Parasuraman, V. a Zeithaml, and L. L. Berry, “SERQUAL: A Multiple-Item scale for Measuring Consumer Perceptions of Service Quality,” Journal of Retailing, vol. 64, no. 1, pp. 12–40, 1988, doi: 10.1016/S0148-2963(99)00084-3.
[22] S. A. H. Shah and H. Kubota, “Passenger’s satisfaction with service quality of app-based ride hailing services in developing countries: Case of Lahore, Pakistan,” Asian Transport Studies, vol. 8, Jan. 2022, doi: 10.1016/j.eastsj.2022.100076.
[23] P. Kotler, K. L. Keller, M. Goodman, M. Brady, and T. Hansen, Marketing Management. Harlow - United Kingdom: Pearson Education Limited, 2020.
[24] J. Nilsson, J. Jansson, K. Nicholas, and C. Zhao, “Traveler perceived service quality and satisfaction with public transport: The influence of digital competence and environmental attitudes,” Transp. Policy (Oxf)., vol. 172, Oct. 2025, doi: 10.1016/j.tranpol.2025.07.022.
[25] D. Valentino and Z. Fitriyah, “The Effect of Perceived Service Quality and Perceived Price on Customer Satisfaction Furqon Trans in Sidoarjo,” International Journal of Economics (IJEC), vol. 2, no. 2, pp. 379–390, Aug. 2023, doi: 10.55299/ijec.v2i2.539.
[26] D. T. Adawiyah, A. Askolani, and T. Patimah, “The Influence Of Service Quality And Promotion On Customer Satisfaction (Survey On Maxim Online Transportation Customers In Tasikmalaya City),” Jarnal Ekonomi, Manajemen, Bisnis, Dan Akuntansi, vol. 1, no. 2, pp. 85–94, Jan. 2025, doi: https://doi.org/10.70963/jemba.v1i2.45.
[27] B. Suwarno, I. N. E. Lister, C. N. Ginting, E. Girsang, and B. Alamsyah, Pengantar Metodologi Penelitian Kuantitatif, Kualitatif dan Mixed Method (Studi Case Manajemen, Pendidikan, Kesehatan dan Teknik), vol. 1. Karawang: Saba Jaya Publisher, 2026.
[28] I. Ghozali, Model Persamaan Struktural Partial Least Squares (PLS) : Aplikasi Dengan Program R Paket plspm, semPls dan seminR. Semarang: Yoga Pratama, 2021.
[29] B. Suwarno and A. Nugroho, Kumpulan Variabel-Variabel Penelitian Manajemen Pemasaran (Definisi & Artikel Publikasi), 1st ed. Bogor: Bogor: Halaman Moeka Publishing, 2023.
[30] J. F. Hair, M. Sarstedt, and C. M. Ringle, Handbook of Market Research, no. July. 2020. doi: 10.1007/978-3-319-05542-8.
[31] J. F. Hair, G. T. M. Hult, C. M. Ringle, M. Sarstedt, N. P. Danks, and S. Ray, Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R, Classroom. Switzerland: Springer International Publishing, 2021.
[32] J. F. Hair, D. J. Ortinau, and D. E. Harrison, Essentials of Marketing Research, 6th ed. New York: McGraw-Hill Education, 2024.
[33] J. F. Hair, G. T. M. Hult, C. M. Ringle, and M. Sarstedt, A Primer On Partial Least Squares Structural Equations Modeling (PLS-SEM), 3rd ed. Thousand Oaks, California: SAGE Publications Ltd, 2022. doi: 10.1201/9781032725581-7.
[34] N. S. Subawa, I. G. N. K. Hadinata, and N. K. W. Yanti, “Service quality as an intervening variable between promotion, price, and customer satisfaction,” International research journal of management, IT and social sciences, vol. 12, no. 4, pp. 178–187, Jul. 2025, doi: 10.21744/irjmis.v12n4.2530.
[35] Z. Khairani, N. Nofrizal, and L. T. Putri, “The Secret to Ride-Hailing Customer Satisfaction and Willingness to e-WOM: Uncovering the Advantages of Price and Consumer Personality,” ASEAN Marketing Journal, vol. 16, no. 1, Jun. 2024, doi: 10.7454/amj.v16i1.1213.
[36] M. A. Azizi, M. Rizan, and I. Febrilia, “The Influence Of E-Service Quality, Price Fairness, And Perceived Ease Of Use On Repurchase Intention Through Customer Satisfaction In Online Food Delivery,” Journal CAPITAL: Kebijakan Ekonomi, Manajemen & Akuntansi, vol. 6, no. 1, 2024, doi: https://doi.org/10.33747/capital.v6i1.208.
[37] I. M. R. S. Antara and N. M. Rastini, “The Influence of Brand Image, Sales Promotion and Quality of Service on Customer Satisfaction Car Rental Service,” European Journal of Business and Management Research, vol. 7, no. 2, pp. 223–226, Apr. 2022, doi: 10.24018/ejbmr.2022.7.2.1273.
[38] D. Adriansyah and M. E. Saputri, “Pengaruh Promosi Penjualan Terhadap Kepuasan Pelanggan Melalui Keputusan Pembelian Sebagai Variabel Intervening Pada Pengguna Go-Food Di Kota Bandung,” Journal of Entrepreneurship Management, and Industry (JEMI), vol. 3, no. 3, pp. 123–128, 2020, doi: 10.36782/jemi.v3i3.2109.
[39] A. Wijaya, H. A. Tan, R. M. Tanoro, B. Suwarno, and S. Noor, “Air Conditioner Customer Retention Based on Satisfaction and Loyalty with A Marketing Mix Analysis,” International Journal of Science and Environment, vol. 6, no. 1, pp. 821–834, 2026, doi: 10.51601/ijse.v6i1.412.
[40] P. Ricardianto et al., “What makes consumers attitudinal loyalty on ride-hailing services? An investigation Indonesian consumers’ perceived safety in using ride-hailing apps,” Journal of Open Innovation: Technology, Market, and Complexity, vol. 10, no. 2, Jun. 2024, doi: 10.1016/j.joitmc.2024.100306.
[41] A. K. S. Ong, J. D. German, P. C. Dangaran, J. J. B. Paz, and R. R. G. Macatangay, “Service quality and customer satisfaction analysis among motorcycle taxi transportation in the Philippines through SERVQUAL dimensions and social exchange theory,” Case Stud. Transp. Policy, vol. 15, p. 101139, Mar. 2024, doi: 10.1016/j.cstp.2023.101139.
[42] S. Asawawibul, K. Na-Nan, K. Pinkajay, N. Jaturat, Y. Kittichotsatsawat, and B. Hu, “The influence of cost on customer satisfaction in e-commerce logistics: Mediating roles of service quality, technology usage, transportation time, and production condition,” Journal of Open Innovation: Technology, Market, and Complexity, vol. 11, no. 1, Mar. 2025, doi: 10.1016/j.joitmc.2025.100482.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Daniel Leslie, Jarungjung Hutagaol
This work is licensed under a Creative Commons Attribution 4.0 International License.
