The effect of Service Quality and Price on Customer Satisfaction
Prior to hypothesis testing, factor analysis were conducted to obtain valid variables andreduce the variables used.
Of the 18 variables used in this study, three variables emerge as the result of factor analysis, that are promptness and accuracy of service, physical evidence of service, and employee attitudes.
A multiple regression analysis using the three new service quality variables and price as predictor of customer satisfaction was then conducted to test the hypothesis.
The result of multiple regression analysis is presented in Table 2.