ABSTRACT:Product quality and customer satisfaction are some of the factors that affect customer loyalty. Byprioritizing the product quality that is marketed, it is expected to create customer satisfaction after wearing it.After satisfaction arises, customers will tend to be loyal or loyal to products that can meet the needs and desiresof customers. This research was conducted in the city of Denpasar involving 120 respondents who had boughtand used a Toyota Avanza. Data collection using questionnaires, while data analysis techniques usingdescriptive analysis, path analysis, classic assumption test, and Sobel test. The results found that product qualityhas a positive effect on customer satisfaction and customer loyalty. Customer satisfaction plays a positive roleon customer loyalty and can positively mediate the effect of product quality on customer loyalty. Creating anddelivering good product quality to customers will create customer satisfaction, satisfied customers will be loyalto products that have satisfied the wants and needs of customers.
Keyword: Product quality, Customer satisfaction, Customer loyalty