THE ROLE OF CUSTOMER SATISFACTION IN MEDIATING THE INFLUENCE OF GREEN MARKETING ON CUSTOMER LOYALTY “BALI ALUS” PRODUCTS

ABSTRACT: The increasing public awareness of environmental issues has encouraged consumers to shift their preferences toward natural-based products. However, this trend does not necessarily translate into positive business performance for all companies promoting environmentally friendly products. Bali Alus, a Bali-based natural cosmetics manufacturer, has experienced a decline in customer loyalty, particularly in the body mist category. This decline is presumed to result from intense market competition and the suboptimal implementation of green marketing strategies. This study aims to examine the influence of green marketing on customer loyalty, with customer satisfaction as a mediating variable. The research employs a quantitative associative approach, with a sample of 100 respondents in Denpasar City selected through purposive sampling. Data were collected using a structured questionnaire and analyzed using path analysis with the assistance of SPSS software. The findings indicate that green marketing has a positive and significant effect on customer loyalty. Furthermore, green marketing also has a positive and significant impact on customer satisfaction. Customer satisfaction positively and significantly influences customer loyalty and partially mediates the relationship between green marketing and customer loyalty. These results imply that Bali Alus must strengthen the implementation of green marketing strategies and focus on enhancing customer satisfaction to build long-term customer loyalty.

KEYWORDS : Green marketing, Customer satisfaction, Customer Loyalty, Bali Alus.