The Influence of Brand Image, Service Quality and Price on Consumer Satisfaction (Study on Consumers of Kopi Kenangan, Tebet)

 

Natalia Rosauli Basa Simanjuntak*, Djumarno

Faculty of Economics and Business, Universitas Mercu Buana, Indonesia

Email: [email protected]*

 

Article Information

 

ABSTRACT

Received: January 20, 2023

Revised: January 30, 2023

Approved: February 21, 2023

Online: February 24, 2023

 

 

This research was conducted to determine the effect of brand image, service quality and price on customer satisfaction and its effect on customer loyalty. The object of this research is Kopi Kenangan, Tebet. This research was conducted on 150 respondents using a quantitative descriptive method. Therefore, the data analysis used is statistical analysis in the form of Smart PLS. The results of this study indicate that the brand image variable has a positive and insignificant effect on customer satisfaction, service quality has a negative and insignificant effect on customer satisfaction, price has a positive and significant effect on customer satisfaction, brand image has a positive and insignificant effect on customer loyalty, quality service has a negative and insignificant effect on customer loyalty, price has a positive and significant effect on customer loyalty, customer satisfaction has a positive and significant effect on customer loyalty, brand image through customer satisfaction has a positive and significant effect not significant effect on customer loyalty, service quality through customer satisfaction negative and insignificant effect on consumer loyalty, price through customer satisfaction has a positive and significant effect on customer loyalty.

Keywords

 

brand image; customer satisfaction; customer loyalty; price; service quality

 

 

INTRODUCTION

Initially, drinking coffee was a habit of the Indonesian people that existed from ancient times. Indonesia is a country that is one of the best coffee producers in the world, both from Aceh, Java, Lampung, Medan, & Sulawesi, some of these areas are examples of areas that are one of the famous coffee production areas. Therefore, in Indonesia, coffee can be enjoyed by all groups, both teenagers, adults, and also the elderly. Coffee is daily consumption in addition to daily staple food, initially coffee was only sold on the side of the road and had a simple appearance, but now it has entered malls and star hotels with a more luxurious and elegant appearance.

In the current era of globalization, which is also one of the reasons for the development of coffee, the development of science, technology, economy, information and culture has experienced very significant changes. The progress of several of these aspects causes in everyday life humans want things that are practical, instant, and fast-paced. This also has an impact on various fields, one of which is the culinary industry which is more inclined towards the development of the fast food and beverage industry. The behavior of people who are starting to go global is causing businesses to start seeing the need to continue to innovate for the progress of the food and beverage industry. One that is currently developing is the coffee shop-themed beverage industry.

Coffee shop was first established in 1475 in Constantinople, Turkey. This coffee shop continues to grow throughout the country including Indonesia, where in 1878 the first coffee shop was established in Indonesia. This development continues in line with the development of globalization, so that by 2021 in Indonesia tens of thousands of coffee shops have spread across various cities and regions. Coffee shop visitors are not only teenagers, but adults also often spend quite a long time just enjoying a cup of coffee, chatting, and doing other activities. It is this need that makes coffee businesses need marketing strategies that are in line with what consumers expect, starting from the decoration of the coffee shop, the taste quality of the product, the presentation of an attractive menu, prices that tend to be friendly, and satisfactory service. At present the coffee shop has also made up for the needs of people who have quite high mobility and a fairly busy schedule, where people can use the online ordering feature so they don't need to take time to come in person to the coffee shop. The online features carried by the coffee shop provide its own advantages, so that the market is not only for consumers who come directly to the coffee shop but can also be enjoyed both at the office and at home. Based on survey data from top brands in 2020 in the coffee shop category, Kopi Kenangan ranks first, seen in Table 1.

Table 1. Top Brand Index 2020

Brand

TBI

Kenangan

39,9%

Janji Jiwa

29,8%

Kulo

13,6%

Fore

5,1%

Furo

3,1%

Source: https://www.topbrand-award.com

 

From table 1, it can be seen that Kopi Kenangan is the market leader for coffee shops in Indonesia. Kopi Kenangan was also named “Brand of the Year” at the World Branding Awards and is the only brand in the café chain category that represents Indonesia. The World Branding Awards in 2020 organized by the World Branding Forum (WBF), a global non-profit organization dedicated and expected to advance branding standards. It can be concluded that the Kopi Memories brand has become one of the well-known brands among coffee lovers. Currently, Kopi Memories has 426 outlets spread across 24 cities, namely Jakarta, Tangerang, Sidoarjo, Semarang, Bandung, Sumedang, Solo, Bogor, Karawang, Lampung, Makassar, Palembang, Bekasi, Surabaya, Yogyakarta, Gresik, Depok, Cirebon, Banten, Batu, Purwakarta, Cilegon, Malang and Medan. Even though they already have hundreds of outlets, none of them are franchises. All stores that sell Kopi Kenangan are 100 percent owned by themselves. This is done so that the quality of Kopi Kenangan does not decrease, and keeps the taste consistent, so that it will greatly affect consumer confidence in Kopi Kenangan and repurchasing decisions by consumers.

The award that Kopi Kenangan received as the Top Brand Award and the World Branding Awards shows that Kopi Kenangan places a high priority on customer loyalty. Customer loyalty is caused by the feeling of satisfaction experienced by consumers with the product and the influence of the price of the product. Customer loyalty comes from fulfilling customer expectations, and these expectations come from previous purchasing experiences (Kotler & Armstrong, 2018). Companies will have more opportunities to form customers into loyal customers, if the company is able to make its customers feel satisfied. Customer loyalty causes customers to become loyal customers and will actively promote, provide recommendations to their families and people around them (Tjahjaningsih et al., 2021). Customer loyalty is influenced by several factors, such as total quality service, customer relationship management, and customer satisfaction positively and significantly affect customer loyalty (Kristian et al., 2014). Brand image and commitment are positive factors that affect customer loyalty (Neupane, 2015). Brand image is a picture or view of a customer towards a brand/product and is one of the positive factors that influence customer loyalty.

Another influencing factor is the quality of service. Service qualityis also something that affects customer loyalty, since customers who do not experience problems in service have a high loyalty value (Ghotbabadi et al., 2012; Pena et al., 2013). Service quality is a critical element of consumer perceptions of the products or services they receive (Tjoanoto, 2013). Particularly in a purely service product, service quality will be the dominant element in consumer evaluation. In achieving and producing a good service quality, a service company must understand and implement all dimensions of service quality appropriately. This is because consumers use their perceptions in assessing the quality of a company's services, namely by seeing and feeling the dimensions of service quality offered by a company. Service quality is defined as the perception of how well the service meets or exceeds consumer expectations (Tan et al., 2014).

A preliminary survey was conducted to find out more deeply and see what variables affect customer loyalty. This survey involved 38 people who had purchased coffee memories. The question is about the variable customer loyalty.

 

Table 2. Pre-survey results

No

Statement

“YES” percentage

1

Have you ever consumed Kopi Kenangan?

100.00%

2

Do you buy Kopi Kenangan because the price is quite affordable?

97.37%

3

Do you buy Kopi Kenangan because the quality of the product is quite good?

86.84%

4

Do you buy Kopi Kenangan because the brand is famous?

94.74%

5

Do you buy Kopi Kenangan because the store's atmosphere is comfortable for work?

81.58%

6

Did you buy a Kopi Kenangan because you saw a promo on the website/instagram?

57.89%

7

Do you buy  Kopi Kenangan because the service is pretty good?

92.11%

8

Are you satisfied with the Kopi Kenangan?

94.74%

9

Are you going to repurchase Kopi Kenangan products?

89.74%

10

Have you ever consumed Kopi Kenangan?

100.00%

Source: Researcher (2021)

 

Based on the respondents' answers in table 2, only the largest value (> 85%) will be taken which will then be examined as a phenomenon. From the table, there are 9 statements representing the customer loyalty variable with the largest answer value being on questions related to service quality and brand image variables as well as consumer satisfaction.

As many as 86.84% of respondents made a purchase because the product quality was quite good and 94.74% because the brand was well known. Both of these questions relate to brand image variables. Brand image is what consumers think and feel when they hear or see a brand and what consumers learn about the brand (Indrawati & Amalia, 2020). It can be concluded that brand image is a set of brand associations that consumers can feel and think about that are created and maintained by business people to form in the minds of consumers. A strong brand image will be directly related to strong customer loyalty as well (Upamannyu & Sankpal, 2014).

As many as 97.37% of respondents made a purchase because the price was quite affordable. Price is the amount of money billed for a product or service (Kotler & Armstrong, 2018). More broadly, price is the sum of all the values ​​that customers provide for the benefits of having or using a product or service. In this case the price will greatly affect customer loyalty.

As many as 92.11% of respondents stated that they were quite satisfied with Memories Coffee. Consumer satisfaction is an emotional response to evaluating the experience of consuming a product or service (Christina & Hartini, 2020). Consumer satisfaction with a product or service is actually something that is difficult to obtain if the service company or industry does not really understand what consumers expect. For products or services with the same quality, it can provide different levels of satisfaction for different consumers.

As many as 92.11% of respondents stated that the service provided by Kopi Memories was quite good. Customer loyalty is a tendency to buy and/or use a product or service again (Ishak & Abd Ghani, 2013). The most important thing that must be done to win the competition is to satisfy consumers. Because the consumer is the center of all efforts made by the company. Analyzing consumer loyalty will be more successful if you are able to understand human psychological aspects. Perception is one of these aspects and before consumer perceptions are formed towards an object, in this case service quality and brand image are factors that motivate consumers in a product.

Loyalty is a function of the psychological processes of decision makers over time, in the presence of one or more alternatives and behavioral responses based on prejudice (Sharma et al., 2013). The deep commitment created for repeat purchase behavior or to become a customer continuously in the future will have an impact on customer loyalty. Consumer loyalty is consumer loyalty to a brand that is influenced by: trust, emotional attachment and experience of the brand. Brands are no longer considered only as an object but have certain characteristics. Over time, the brand has turned into a symbol for consumers where certain brands are considered as a status, self-identification, and life style that represents consumers or what consumers want to achieve.

Based on the preliminary survey and the phenomena above, this study will discuss how brand image, service quality, and price influence customer loyalty moderated by consumer satisfaction. In depth will be explored again regarding the relationship between these variables on customer loyalty and consumer satisfaction. Based on the formulation of the problem posed, the objectives of this study are:

1)      To find out and analyze the influence of brand image on customer satisfaction Kopi Kenangan.

2)      To find out and analyze the effect of service quality on customer satisfaction Kopi Kenangan.

3)      To find out and analyze the effect of price on customer satisfaction Kopi Kenangan.

4)      To find out and analyze the effect of consumer satisfaction on Kopi Kenangan customer loyalty.

5)      To find out and analyze the effect of brand image on Kopi Kenangan consumer loyalty.

6)      To find out and analyze the effect of service quality on Kopi Kenangan consumer loyalty.

7)      To find out and analyze the effect of price on the loyalty of Kopi Kenangan consumers.

8)      To find out and analyze brand image through consumer satisfaction on Kopi Kenangan consumer loyalty.

9)      To find out and analyze the quality of service through customer satisfaction on Kopi Kenangan customer loyalty.

10)   To find out and analyze prices through consumer satisfaction on Kopi Kenangan consumer loyalty.

 

METHODS

Research design

This study uses a quantitative descriptive method. Quantitative descriptive studies are designed to collect data that describe people, events, or situations. The quantitative research method is one of the research methods whose specifications are systematic, planned and clearly structured from the start to the creation of the research design. Quantitative research methods are used to examine populations or certain samples, sampling techniques are generally carried out randomly, data collection uses research instruments, data analysis is quantitative/statistical in nature with the aim of testing predetermined hypotheses (Sugiyono, 2019). The research will be conducted using a descriptive approach with the aim of describing the research object and research results. Descriptive means a method that functions to describe or give an overview of the object under study through data or samples that have been collected as they are, without conducting analysis and making generally accepted conclusions (Sugiyono, 2019). This study used an explanatory survey method with a questionnaire.

Data collection technique

The method used by researchers in collecting data in this study was carried out by compiling an instrument in the form of a questionnaire and then distributing it to respondents so that they could fill in their answers. Questionnaires will be directly distributed by researchers to Kopi Kenangan consumers. In research to find out the respondents' opinions, the researcher uses a Likert scale that can be used to measure the attitudes, opinions and perceptions of respondents regarding the research being carried out by the researcher.

Data Analysis Method

In researching, the researcher uses the Partial Least Square (PLS) approach which can be used on both reflective and formative forms. The PLS approach method is used because there are several assumptions, namely, a data analysis method based on the assumption that the number of samples is less than 300 respondents, can be used for predictions, the assumption is that all variance measures can be used to explain and can be used to find out the overall picture of a model. The analysis technique in this study used the PLS technique which was carried out in 2 stages include Test the Measurement Model or Outer Model and Structural Model Test or Inner Model

 

 

RESULTS

This study uses the PLS (Partial Least Square) method using SmartPLS 3.0 to analyze the data. PLS can be applied to all data scales and the sample size in PLS does not have to be large. PLS can be used to confirm the theory, PLS can also be used to explain whether or not there is a relationship between latent variables (Jaya, 2008). In this study, researchers used 150 respondents. Following are the results of data processing using SmartPLS 3.0.

 

Test the Measurement Model or Outer Model

The measurement model or outer model is to test the construct validity and reliability of each indicator. Evaluation of the measurement model through confirmatory factor analysis is to use the MTMM (Multi Trait-Multi Method) approach by testing convergent validity and discriminant validity. While the reliability test is carried out in two ways, namely by Cronbach's Alpha and Composite Reliability (Ghozali & Latan, 2015).

Based on the PLS method, testing the validity of reflexive indicators is carried out in 2 stages. The first stage is testing convergent validity, namely testing validity based on the loading factor value of each construct and the next stage is testing discriminant validity, namely testing validity based on comparisons.

Convergent Validity

Convergent validity from the measurement model with reflexive indicators in the study, it can be seen from the correlation between the item score/indicator and the construct score. Individual reflective measure is said to be high if it correlates more than 0.70 with the construct you want to measure. However, at the scale development stage research, loading 0.50 to 0.60 is still acceptable (Ghozali & Latan, 2015). Following are the results of convergent validity using the SmartPLS 3.0 software:

Figure 1.  Convergent Validity Test

Source: Data processed using Smart PLS 3 (2022)

 

Table 3. Loading Factor Value

Variable

Code

Outer Loading

Condition

Information

Brand Image

CM. 1

0.858

0.7

Valid

CM. 2

0.819

0.7

Valid

CM. 3

0.845

0.7

Valid

CM. 4

0.845

0.7

Valid

CM. 5

0.878

0.7

Valid

CM. 6

0.850

0.7

Valid

CM. 7

0.857

0.7

Valid

Service quality

KP. 1

0.883

0.7

Valid

KP. 2

0.868

0.7

Valid

KP. 3

0.886

0.7

Valid

KP. 4

0.890

0.7

Valid

KP. 5

0.843

0.7

Valid

KP. 6

0.861

0.7

Valid

KP. 7

0.857

0.7

Valid

KP. 8

0.840

0.7

Valid

KP. 9

0.892

0.7

Valid

KP. 10

0.845

0.7

Valid

KP. 11

0.864

0.7

Valid

KP. 12

0.852

0.7

Valid

Price

H.1

0.852

0.7

Valid

H.2

0.861

0.7

Valid

H.3

0.856

0.7

Valid

H.4

0.855

0.7

Valid

H.5

0.770

0.7

Valid

Consumer Satisfaction

KK. 1

0.756

0.7

Valid

KK. 2

0.955

0.7

Valid

KK. 3

0.916

0.7

Valid

Consumer Loyalty

LK.1

0.831

0.7

Valid

LK.2

0.880

0.7

Valid

LK.3

0.844

0.7

Valid

Source: Data processed using Smart PLS 3 (2022)

Based on Table 3 above, it can be seen that all loading factor values ​​for each variable are above 0.6. This proves that all variable indicators used in this study are valid and meet convergent validity.

 

Discriminant Validity

Discriminant validity indicator can be seen in the cross loading between the indicator and the construct. If the correlation between constructs and indicators is higher than the correlation between indicators and other constructs, this indicates that latent constructs predict indicators in their block better than indicators in other blocks. Another method for assessing discriminant validity is to compare the square root of the average variance extracted (√AVE) for each construct with a correlation between constructs and other constructs with models. This test displays the calculation results of Cross Loadings, Fornell-Lacker Criterion &Average Variance Extracted (√AVE).

Following are the results of discriminant validity using the Cross Loading method, Fornell-Lacker Criterion and Average Variance Extracted (√AVE) using SmartPLS 3.0 software:

 

Table 4. Discriminant Validity Test Results (Cross Loading)

Variable

Code

X1

X2

X3

Y1

Z1

Brand Image

CM. 1

0.858

0.802

0.443

0.389

0.404

CM. 2

0.819

0.734

0.526

0.414

0.541

CM. 3

0.845

0.761

0.631

0.489

0.492

CM. 4

0.845

0.749

0.568

0.506

0.479

CM. 5

0.878

0.779

0.535

0.460

0.566

CM. 6

0.850

0.721

0.602

0.467

0.551

CM. 7

0.857

0.800

0.445

0.390

0.405

Service quality

KP. 1

0.804

0.883

0.422

0.370

0.397

KP. 2

0.808

0.868

0.520

0.416

0.553

KP. 3

0.800

0.886

0.594

0.444

0.474

KP. 4

0.815

0.890

0.544

0.460

0.467

KP. 5

0.797

0.843

0.468

0.460

0.437

KP. 6

0.823

0.861

0.554

0.393

0.474

KP. 7

0.703

0.857

0.493

0.342

0.342

KP. 8

0.726

0.840

0.358

0.310

0.331

KP. 9

0.756

0.892

0.548

0.394

0.434

KP. 10

0.717

0.845

0.541

0.428

0.493

KP. 11

0.734

0.864

0.467

0.314

0.390

KP. 12

0.779

0.852

0.537

0.477

0.566

Price

H.1

0.560

0.515

0.852

0.504

0.435

H.2

0.509

0.438

0.861

0.522

0.476

H.3

0.589

0.532

0.856

0.641

0.715

H.4

0.529

0.515

0.855

0.540

0.524

H.5

0.472

0.461

0.770

0.655

0.444

Consumer Satisfaction

KK. 1

0.340

0.323

0.506

0.756

0.333

KK. 2

0.481

0.421

0.650

0.955

0.564

KK. 3

0.542

0.479

0.651

0.916

0.667

Consumer Loyalty

LK.1

0.385

0.355

0.461

0.538

0.831

LK.2

0.501

0.457

0.517

0.533

0.880

LK.3

0.588

0.519

0.624

0.502

0.844

Source: Data processed using Smart PLS 3 (2022)

Based on Table 11 above, the construct correlation value with the indicator is greater than the other construct correlation values. Then, it can be concluded that all latent constructs show good discriminant validity and are considered reliable. Latent contracts predict indicators in their block better than indicators in other blocks.

Another method is to look at discriminant validity by looking at the Square root of average extracted (AVE) value for each construct with a correlation between other constructs in the model.

 

Table 5.  Discriminant Validity Test Results (Fornell-Larcker Criterion)

Variable

X1

X2

X3

Y1

Z1

Brand Image

0.896

 

 

 

 

Service quality

0.850

0.865

 

 

 

Price

0.637

0.589

0.839

 

 

Consumer Satisfaction

0.528

0.471

0.690

0.880

 

Consumer Loyalty

0.585

0.527

0.633

0.614

0.852

Source: Data processed using Smart PLS 3 (2022)

Based on Table 5 above, the AVE value of each construct is greater than the correlation between one construct and another. Then, it can be said to have good discriminant validity. Furthermore, discriminant validity testing is carried out by looking at the AVE (Average Variance Extraced) value. The AVE value is good if the value is greater than 0.50 (Ghozali & Latan, 2015). The following are the values ​​in the AVE table.

 

Table 6. AVE (Average Variance Extracted) Test Results

Variable

AVE

Brand Image

0.723

Service quality

0.749

Price

0.704

Consumer Satisfaction

0.775

Consumer Loyalty

0.726

Source: Data processed using Smart PLS 3 (2022)

Based on Table 12 above, the AVE construct value for all variables of Brand Image, Service Quality, Price, and Consumer Loyalty is above 0.50. Then, it can be concluded that there are no more problems in Convergent Validity.

 

Reliability Test

Testing reliability aims to prove the accuracy, consistency and precision of the instrument in measuring constructs. If the value of the latent variable has a composite reliability value or Cronbach's alpha > 0.7. It means that the construct has good reliability or the questionnaire used as a tool in this study is reliable or consistent (Ghozali & Latan, 2015).

 

 

Table 7. Composite Reliability Test Results and Cronbach's Alpha

Variable

Cronbach's Alpha

Composite Reliability

Information

Brand Image

0.936

0.948

Reliable

Service quality

0.970

0.973

Reliable

Price

0.895

0.922

Reliable

Consumer Satisfaction

0.853

0.911

Reliable

Consumer Loyalty

0.812

0.888

Reliable

Source: Data processed using Smart PLS 3 (2022)

Based on Table 7 above, the composite reliability and Cronbach's alpha values ​​have met the requirements, namely having a value of > 0.7 so that it can be said that the variables Brand Image, Service Quality, Price, Consumer Satisfaction and Consumer Loyalty are reliable or considered reliable.

 

Structural Model Test or Inner Model

The structural model or inner model is used to determine whether there is influence between variables/correlation between constructs as measured using the t test of the PLS itself. This test consists of 3 stages, namely the R-Square test (R2) to test each endogenous latent variable as the predictive power of the structural model, Q-Square to measure how well the observed values ​​are generated by the model and also its parameter estimates, and hypothesis testing which is a test to determine the significance of the influence between constructs.

 

Test Results for the Coefficient of Determination / R Square (R2)

R Square (R2) is a goodness-fit model test for endogenous latent variables of 0.75, 0.50 and 0.25 in the structural model identifying that the model is "strong", "moderate", "weak" (Ghozali & Latan, 2015). The coefficient of determination R Square (R2) shows how much the independent variable explains the dependent variable. The value of R Square (R2) is zero to one.

If the value of R Square (R2) gets closer to one, then the independent variables provide all the information needed to predict the dependent variable. Conversely, if the smaller the value of R Square (R2), the ability of the independent variables to explain variations in the dependent variable is increasingly limited.

 

Table 8. R Square Test Results (R2)

Construct

R Square (R2)

R Square Adjusted

Consumer Satisfaction (Y1)

0.491

0.480

Consumer Loyalty (Z1)

0.501

0.487

Source: Data processed using Smart PLS 3 (2022)

 

Based on Table 8 above, the relationship between constructs based on the R Square value (R2) of the Consumer Satisfaction variable (Y1) and the Consumer Loyalty variable (Z1) is 0.491 and 0.501. This shows that 49.1% of the Consumer Satisfaction variable (Y1) and 50.1% of the Consumer Loyalty variable (Z1) can be influenced by the Brand Image (X1), Service Quality (X2) and Price (X3) variables while the remaining is 50. 9% and 49.9% are influenced by other variables outside those studied.

 

Results of Predictive Relenance Value (Q2)

Predictive Relenance (Q2) a structural model to measure how well the observed values ​​are generated by the model and also its parameter estimates. Predictive Relenance (Q2) value is greater than 0, Predictive Relenance (Q2) with 0 or a negative value indicates the model is not relevant to the given endogenous prediction.

 

Table 9. Construct Cross-Validation Redundancy Test Results

Construct

SSO

SSE

Q² = (1-SSE/SSO)

Consumer Satisfaction (Y1)

450,000

286,658

0.363

Consumer Loyalty (Z1)

450,000

294,823

0.345

Source: Data processed using Smart PLS 3 (2022)

 

Based on Table 9 the results of the calculation of Predictive Relenance (Q2) Consumer Satisfaction (Y1) produces a value of 0.363 and Consumer Loyalty (Z1) produces a value of 0.345, where the value indicates a value greater than 0, so it can be said that the model has a predictive value that is considered relevant and powerful. This means that the observed value generated by the model can be said to be good.

 

Hypothesis Test Results

The hypothesis was tested based on the value of the path coefficient to determine the significance of the effect between constructs by using a comparison of the t-table and t-statistic values. The significance of the hypothesis by looking at the parameter coefficient values ​​and the t-statistical significance value in the algorithm bootstrapping report, the t-statistical significance value must be greater than 1.96 (Ghozali & Latan, 2015). The way of decision making is as follows:

1)   If P-Values ​​> 0.05 or t-count < t-table then H0 is accepted and Ha is rejected.

2)   If P-Values ​​< 0.05 or t-count > t-table then H0 is rejected and Ha is accepted.

Figure 2. Hypothesis Testing

Source: Data processed using Smart PLS 3 (2022)

 

Testing the Hypothesis of the Direct Effect of Independent Variables on Dependent Variables

Table 10. Hypothesis Test Results for the Direct Effect of Independent Variables on Dependent Variables

Relations Between Constructs

Original Sample (O)

T Statistics (|O/STDEV|)

P Values

Brand Image -> Consumer Satisfaction

0.205

1,250

0.212

Service quality-> Consumer Satisfaction

-0.065

0.390

0.697

Price -> Consumer Satisfaction

0.598

7,475

0.000

Brand Image -> Consumer Loyalty

0.267

1,667

0.096

Service quality-> Consumer Loyalty

-0.006

0.041

0.967

Price -> Consumer Loyalty

0.264

2,386

0.017

Consumer Satisfaction-> Consumer Loyalty

0.294

3,235

0.001

Source: Data processed using Smart PLS 3 (2022)

 

Based on Table 10 above, testing the hypothesis of the direct influence of the independent variables on the dependent variable in this study is as follows:

The Effect of Brand Image on Consumer Satisfaction

Based on Table 10, it is known that the t-statistic value of 1.250 is smaller than the t-table of 1.96 and the P-Value of 0.212 is greater than 0.05. The original sample value is positive, which is equal to 0.205. That is, the Brand Image variable (X1) has a positive and insignificant effect on the Consumer Satisfaction variable (Y1), the hypothesis in this study states that H0 is accepted and Ha is rejected.

The Effect of Service Quality on Consumer Satisfaction

Based on Table 10, it is known that the t-statistic value is 0.390 which is smaller than the t-table of 1.96 and the P-Value of 0.697 is greater than 0.05. The original sample value is negative, which is -0.065. That is, the variable Service Quality (X2) has a negative and insignificant effect on the Consumer Satisfaction variable (Y1), the hypothesis in this study states that H0 is accepted and Ha is rejected.

Effect of Price on Consumer Satisfaction

Based on Table 10, it is known that the t-statistic value is 7.475 which is greater than the t-table of 1.96 and the P-Value of 0.000 is less than 0.05. The original sample value is positive, which is equal to 0.598. That is, the price variable (X3) has a positive and significant effect on the consumer satisfaction variable (Y1). The hypothesis in this study states that Ha is accepted and H0 is rejected.

The Effect of Brand Image on Consumer Loyalty

Based on Table 10, it is known that the t-statistic value is 1.667 which is smaller than the t-table of 1.96 and the P-Value of 0.096 is greater than 0.05. The original sample value is positive, which is equal to 0.267. That is, the Brand Image variable (X1) has a positive and insignificant effect on the Consumer Loyalty variable (Z1). The hypothesis in this study states that H0 is accepted and Ha is rejected.

The Effect of Service Quality on Consumer Loyalty

Based on Table 10, it is known that the t-statistic value is 0.041 which is smaller than the t-table 1.96 and the P-Value is 0.967 which is greater than 0.05. The original sample value is negative, which is -0.006. That is, the variable Service Quality (X2) has a negative and significant effect on the Consumer Loyalty variable (Z1). The hypothesis in this study states that H0 is accepted and Ha is rejected.

Effect of Price on Consumer Loyalty

Based on Table 10, it is known that the t-statistic value is 2.386 which is greater than the t-table of 1.96 and the P-Value of 0.017 is less than 0.05. The original sample value is positive, which is equal to 0.264. That is, the price variable (X3) has a positive and significant effect on the consumer loyalty variable (Z1). The hypothesis in this study states that Ha is accepted and H0 is rejected.

Effect of Consumer Satisfaction on Consumer Loyalty

Based on Table 10, it is known that the t-statistic value is 3.235 which is greater than the t-table of 1.96 and the P-Value of 0.001 is less than 0.05. The original sample value is positive, which is equal to 0.294. That is, the price variable (X3) has a positive and significant effect on the consumer loyalty variable (Y). The hypothesis in this study states that Ha is accepted and H0 is rejected.

 

Hypothesis Testing Indirect Effect of Independent Variables on Dependent Variables

Table 11. Mediation Test Results

No.

Relations Between Constructs

Original Sample (O)

T Statistics (|O/STDEV|)

P Values

1

Brand Image -> Consumer Satisfaction -> Consumer Loyalty

0.060

1,120

0.263

2

Service Quality -> Customer Satisfaction -> Consumer Loyalty

-0.019

0.388

0.698

3

Price -> Consumer Satisfaction -> Consumer Loyalty

0.176

2,988

0.003

Source: Data processed using Smart PLS 3 (2022)

 

The Influence of Brand Image through Consumer Satisfaction on Consumer Loyalty

Based on Table 11, it is known that the t-statistic value of 1.120 is smaller than the t-table of 1.96 and the P-Value of 0.263 is greater than 0.05. The original sample value is positive, which is equal to 0.060. That is, the Brand Image variable (X1) through Consumer Satisfaction (Y1) has a positive and insignificant effect on the Consumer Loyalty variable (Z1), the hypothesis in this study states that Ha is accepted and H0 is rejected. This shows that mediation is partially complementary, due to the influence of the Brand Image variable (X1) on Consumer Loyalty (Z1) which has a positive and insignificant effect. Then, the influence of the Brand Image variable (X1) on Consumer Loyalty (Z1) is mediated through the Consumer Satisfaction variable (Y1) which also has a positive and insignificant effect.

The Effect of Service Quality through Consumer Satisfaction on Consumer Loyalty

Based on Table 11 it is known that the t-statistic value is 0.388 which is smaller than the t-table of 1.96 and the P-Value is 0.060 which is smaller than 0.05. The original sample value is negative, which is -0.019. That is, the variable Service Quality (X2) through Consumer Satisfaction (Y1) has a negative and insignificant effect on the Consumer Loyalty variable (Z1), the hypothesis in this study states that H0 is accepted and Ha is rejected. This indicates that mediation is partially complementary, due to the influence of the variable Service Quality (X2) on Consumer Loyalty (Z1) which has a negative and insignificant effect. Then, the effect of the variable Service Quality (X2) on Consumer Loyalty (Z1) is mediated through the Consumer Satisfaction variable (Y1) which also has a negative and insignificant effect.

Effect of Price through Consumer Satisfaction on Consumer Loyalty

Based on Table 11 it is known that the t-statistic value is 2.988 which is greater than the t-table of 1.96 and the P-Value of 0.003 is less than 0.05. The original sample value is positive, which is equal to 0.176. That is, the variable Price (X3) through Consumer Satisfaction (Y1) has a positive and significant effect on the Consumer Loyalty variable (Y), the hypothesis in this study states that Ha is accepted and H0 is rejected. This shows that mediation is partially complementary, due to the influence of the Price variable (X3) on Consumer Loyalty (Z1) which has a positive and significant effect. Then, the influence of the Price variable (X3) on Consumer Loyalty (Z1) is mediated through the Consumer Satisfaction variable (Y1) which also has a positive and significant effect.

 

DISCUSSION

The Effect of Brand Image on Consumer Satisfaction

Based on the results of calculations by testing the hypothesis with a t-statistic value of 1.25 <1.96 with a significance level of 0.21 > 0.05. Thus, it can be concluded that Brand Image has a positive and insignificant effect on Consumer Satisfaction of Kopi Kenangan, Jakarta. The brand image of Kopi Kenangan does not affect consumer satisfaction, which means that the brand image in Kopi Kenangan that is easy to remember, easy to pronounce and easy to recognize is not enough to increase consumer satisfaction. Kopi Kenangan has a good brand image among consumers, a good brand image will get a positive response from consumers, and vice versa. Kopi Kenangan's brand image cannot provide satisfaction to consumers, it is felt that the brand image of Kopi Kenangan is widely known by the public and can only be remembered by consumers as an alternative or choice to enjoy coffee, but brand image is not one of the factors that can increase consumer satisfaction. For consumers, whatever coffee brand has a logo, symbol or term is not a problem, the most important thing for consumers is how the taste image of Kopi Kenangan itself. The results of this study identified that brand image on Kopi Kenangan did not increase consumer satisfaction. the most important thing for consumers is how the image tastes rather than the Memories coffee itself. The results of this study identified that brand image on Kopi Kenangan did not increase consumer satisfaction. the most important thing for consumers is how the image tastes rather than the Memories coffee itself. The results of this study identified that brand image on Kopi Kenangan did not increase consumer satisfaction.

This is in accordance with research conducted by Sondakh et al. (2015) and Gunardi and Erdiansyah (2019), the results of the study can be concluded that brand image has a positive and insignificant effect on consumer satisfaction.

 

The Effect of Service Quality on Consumer Satisfaction

Based on the results of calculations by testing the hypothesis with a t-statistic value of 0.39 <1.96 with a significance level of 0.69 > 0.05. Thus, it can be concluded that Service Quality has a negative and insignificant effect on Consumer Satisfaction of Kopi Kenangan, Jakarta. The quality of service at Kopi Kenangan cannot provide satisfaction to consumers, this is because the quality of service at Kopi Kenangan has not been fully assessed as good by consumers, there are still some services that are considered lacking for consumers, such as several Kopi Kenangan outlets not providing seats or waiting rooms. for consumers or a place to enjoy coffee dine in and limited parking space, consumers feel uncomfortable with the services provided, so it can not increase customer satisfaction. Consumers are also dissatisfied with the waiters at Kopi Kenangan, they think that the coffee maids serve not fast, and do not understand what the customer's complaints are. The results of this study identify that service quality cannot increase customer satisfaction.

This is in accordance with research conducted by Safavi and Hawignyo (2021), Andalusi (2018), Kasturi et al. (2019), the results of the study can be concluded that service quality has a negative and insignificant effect on customer satisfaction.

 

Effect of Price on Consumer Satisfaction

Based on the results of calculations by testing the hypothesis with a t-statistic value of 7.47 > 1.96 with a significance level of 0.00 <0.05. Thus, it can be concluded that the price has a positive and significant effect on Consumer Satisfaction of Kopi Kenangan, Jakarta.

Prices can increase consumer satisfaction with Kopi Kenangan, consumers assess the price offered by Kopi Kenangan in accordance with the quality of the product, the price offered can also be affordable by consumers, thereby increasing consumer satisfaction. Setting the right price can increase consumer satisfaction, Kopi Kenangan sets the right price, which means it is proportional to the quality and taste provided to consumers, because it is not just a matter of low prices that is the basis for consumers to buy, low prices will create bad perceptions for consumers that the products sold are not of good quality. Of course, with this the company can determine the right and appropriate price for consumers by considering the quality of the products offered so that it creates a feeling of satisfaction for consumers. The results of this study identified that, the more appropriate, cheap and affordable prices, the higher consumer satisfaction.

This is in accordance with research conducted by Darmawan et al. (2020), Andalusi (2018), Thungasal and Siagian (2019), the results of the research can be concluded that price has a positive and significant effect on consumer satisfaction.

 

The Effect of Brand Image on Consumer Loyalty

Based on the results of calculations with hypothesis testing with a t-statistical value of 1.66 < 1.96 with a significance level of 0.09 > 0.05. Thus, it can be concluded that Brand Image has a positive and insignificant effect on Consumer Loyalty of Kopi Kenangan, Jakarta.

The brand image of Kenangan coffee does not affect consumer loyalty, which means that the brand image in Kenangan coffee that is easy to remember, easy to pronounce and easy to recognize is not enough to cause consumer loyalty. The brand image of Kenangan coffee is well known by the wider community and many other coffee brands are also well known by the wider community. However, the brand image cannot create loyalty to consumers. Consumers think that, they can enjoy various familiar coffee brands, consumers do not only buy products on one coffee brand, but buy coffee on another brand, this makes the brand image unable to create consumer loyalty. A successful brand image is one that makes it easier for consumers to remember and identify, so that it can meet consumer needs, and consumers can also compare it with other brands. To get consumers is no longer limited to product attributes only, such as packaging, and labels, but must also be able to provide product benefits for consumption and be able to provide a special picture or different characteristics for users such as strong positioning on the product. The results of this study identified that, brand image cannot create or increase consumer loyalty.

This is in accordance with research conducted by Dimyati and Subagio (2016), Firanazulah et al. (2021), Ramadhani and Nurhadi (2022), Kasturi et al. (2019), and Wahyudi et al. (2022) the results of the study can be concluded that brand image has a positive and insignificant effect on consumer loyalty.

 

The Effect of Service Quality on Consumer Loyalty

Based on the results of calculations by hypothesis testing with a t-statistical value of 0.04 < 1.96 with a significance level of 0.96 > 0.05. Thus, it can be concluded that Service Quality has a positive and insignificant effect on Consumer Loyalty of Kopi Kenangan, Jakarta.

The quality of service does not always have an influence on consumers to continue to buy Kenangan coffee and be loyal. This shows that when consumers get good service, it does not always make consumers loyal. Consumers may feel satisfied with the service, but it does not rule out the possibility of consumers becoming loyal, consumers are likely to enjoy other coffee brands, because the quality of service received by each customer is different, therefore in this study the quality of service is not always the determining factor that makes customers loyal to Kopi Kenangan. Consumer loyalty is obtained from the achievement of service quality, and the company pays attention to aspects of service quality, there are some things that are still felt to be lacking for Kenangan coffee consumers such as waiters who are less responsive in serving consumers and the speed of waiters to serve orders, the quality of service in Kenangan coffee is not entirely able to create consumer loyalty. Consumers will evaluate the quality of service they receive, if consumers feel satisfaction, there will be a desire to use and buy products in the future. Customers who are satisfied with the service will take action by having an interest in repurchasing the product, in this study the quality of service does not exceed what consumers expect, so it cannot improve the quality of consumers. The results of this study identified that, the quality of services provided, does not always increase consumer loyalty.

This is in accordance with research conducted by Agiesta et al. (2021) and Kasturi et al. (2019), the results of the study can be concluded that the quality of service has a negative and insignificant effect on consumer loyalty.

 

The Effect of Price on Consumer Loyalty

Based on the results of calculations by hypothesis testing with a t-statistical value of 2.38 > 1.96 with a significance level of 0.01 < 0.05. Thus, it can be concluded that the price has a positive and significant effect on consumer satisfaction of Kopi Kenangan, Jakarta.

Prices can create consumer loyalty to Kopi Kenangan, product price offers on Kenangan coffee are in accordance with the needs, benefits and quality received by customers, consumers will buy products repeatedly because the prices offered can be affordable. The price of Kenangan coffee is appropriate among consumers, and increases consumer loyalty, on the other hand, if the price offered is not appropriate, it will reduce consumer loyalty. Appropriate and reasonable prices can directly create consumer loyalty. In this study, the price of Kenangan coffee was appropriate, affordable and exceeded the benefits provided to consumers.  The results of this study identified that, the cheaper the price and can be reached by consumers, the more it will increase customer loyalty.

This is in accordance with research conducted by Bulan (2016), Kumala and Widodo (2019), the results of the study can be concluded that price has a positive and significant effect on consumer loyalty.

 

The Effect of Consumer Satisfaction on Consumer Loyalty

Based on the results of calculations with hypothesis testing with a t-statistical value of 3.23 > 1.96 with a significance level of 0.00 < 0.05. Thus, it can be concluded that Consumer Satisfaction has a positive and significant effect on Consumer Loyalty of Kopi Kenangan, Jakarta.

Consumer satisfaction can create consumer loyalty, if consumers are satisfied with Kopi Kenangan, it will cause loyalty to consumers, consumers will make purchases repeatedly. This is one of the factors that affect consumer loyalty, so it has a considerable impact on consumer loyalty to Kopi Kenangan. The greater the sense of consumer satisfaction obtained, the more loyal consumers will be. This is because Kenangan coffee provides satisfaction in accordance with consumer expectations, consumers are satisfied with Kenangan coffee products, such as attractive packaging and a good and delicious taste image can provide a sense of pleasure for coffee connoisseurs, so consumers make Kenangan coffee the preferred choice to buy coffee and they are willing to come back to buy Kenangan coffee. Kenangan coffee products have exceeded what consumers expect, in terms of taste, packaging and available variants, this is what makes consumers feel satisfied with Kenangan coffee products, thus causing post-purchase behavior of Kenangan coffee who are willing to repurchase products and create consumer loyalty. The results of this study identified that, the more satisfied consumers are with Kopi Kenangan, the more it will increase consumer loyalty.

This is in accordance with research conducted by Thungasal and Siagian (2019), Bulan (2016), Supartini et al. (2020), and Pramesti and Chasanah (2021), the results of the study can be concluded that consumer satisfaction has a positive and significant effect on consumer loyalty.

 

The Effect of Brand Image through Consumer Satisfaction on Consumer Loyalty

Based on the results of calculations by hypothesis testing with a t-statistical value of 1.12 < 1.96 with a significance level of 0.26 > 0.05. Thus, it can be concluded that Brand Image through Consumer Satisfaction has a positive and insignificant effect on Consumer Loyalty of Kopi Kenangan, Jakarta.

The brand image of Kenangan coffee has been widely known by the public, many other coffee brands are also known by the wider community, but in this study the brand image of Kenangan coffee does not fully provide satisfaction to consumers, because coffee consumers do not only buy at Kenangan coffee, but also at other brands, so consumer satisfaction cannot mediate consumer loyalty. Coffee consumers not only buy coffee with one brand, but also buy coffee at other brands, current brand competition, making Kenangan coffee can strengthen its brand in addition to product attributes also through positioning or providing more benefits, so that consumers can remember and identify the existence of the Kenangan coffee brand, and further increase consumer satisfaction and create consumer loyalty. Although the brand image of Kenangan coffee has a good reputation so that it causes a positive perception and can make customers believe in the brand, but to encourage and increase consumer loyalty, it is necessary to have a feeling of satisfaction from consumers, customers judge that brand image is not one of the factors that affect satisfaction and create loyalty, because consumers can choose and buy other coffee brands.

This research is in line with research conducted by Supriyadi and Marlien (2011) and Kasturi et al. (2019), the results of the study can be concluded that Brand Image through Consumer Satisfaction has a positive and insignificant influence on Consumer Loyalty.

 

The Effect of Service Quality through Customer Satisfaction on Consumer Loyalty

Based on the calculation results by hypothesis testing with a t-statistical value of 0.38 < 1.96 with a significance level of 0.69 > 0.05. Thus, it can be concluded that the Quality of Service through Consumer Satisfaction has a negative and insignificant effect on Consumer Loyalty of Kopi Kenangan, Jakarta.

The quality of service at Kenangan coffee is felt to be lacking by consumers, such as the provision of waiting rooms, seats that are not available at Kenangan coffee outlets, the service provided also seems slow and consumer complaints cannot be fully handled properly by Kenangan coffee waiters, so it cannot increase satisfaction with consumers and does not create consumer loyalty. To generate loyalty to consumers, a sense of satisfaction is needed based on the quality of service, if consumers are not satisfied with the quality of the services provided, and do not match their expectations, then consumers will find it easy to find other alternatives as an option. The quality of service received by the customer is not in accordance with customer expectations, so customers only need to buy Kenangan coffee as a fulfillment of their wishes, but not to make them loyal consumers and make repeated purchases.  In this study, the quality of service did not meet consumer expectations, so satisfaction could not mediate consumer loyalty.

This research is in line with research conducted by Supriyadi and Marlien (2011) and Kasturi et al. (2019), the results of the study can be concluded that Service Quality through Consumer Satisfaction has a positive and insignificant influence on Consumer Loyalty.

 

The Effect of Price through Consumer Satisfaction on Consumer Loyalty

Based on the results of calculations by hypothesis testing with a t-statistical value of 2.98 > 1.96 with a significance level of 0.00 < 0.05. Thus, it can be concluded that Price through Consumer Satisfaction has a positive and significant effect on Consumer Loyalty of Kopi Kenangan, Jakarta.

Appropriate pricing can increase satisfaction with consumers, price flexibility in addition to increasing satisfaction with consumers as well as to create consumer loyalty, consumers will make purchases repeatedly if the price offered at Kenangan coffee can be reached. Consumers feel that the price offered is in accordance with their purchasing power, it will make consumers feel satisfied, so as to make consumers make their choice to Kopi Kenangan, an affordable and competitive price, consumers will get what is expected, then tend to make repeated purchases. The price on Kenangan coffee is felt to be in accordance with consumer needs, and can be affordable by consumers, consumers feel satisfied and happy because the price is straight with the benefits of the product they receive, from this satisfaction of course consumers will act post-purchase with an interest in making purchases in the future and they are willing to recommend Kenangan coffee to others, thus creating loyalty to consumers. This means that consumers will consider the price to buy, and generate a sense of satisfaction for them, as well as be loyal to be willing to make repurchases. In this study, price can increase consumer satisfaction so that it can mediate consumer loyalty.

This research is in line with research conducted by Aldiona and Djoko (2018), and Thungasal and Siagian (2019),  the results of the study can be concluded that Price through Consumer Satisfaction has a positive and significant influence on Consumer Loyalty.

 

CONCLUSION

Brand Image has a positive and insignificant effect on Consumer Satisfaction. The brand image in Kopi Kenangan is easy to remember, a good brand image will get a positive response from consumers, and vice versa. However, brand image is not one of the factors that can increase consumer satisfaction.

Service Quality has a negative and insignificant effect on Customer Satisfaction. The quality of service at Kopi Kenangan does not provide satisfaction to consumers, this is because the quality of service at Kopi Kenangan has not been fully assessed as good by consumers, so it cannot increase customer satisfaction.

Price has a positive and significant effect on consumer satisfaction. Consumers consider that the price offered by Kopi Kenangan is in accordance with the quality of its products, the price offered can also be affordable by consumers, thereby increasing consumer satisfaction.

Brand Image has a positive and insignificant effect on Consumer Loyalty. The brand image of Kenangan coffee is well known by the wider community. However, the brand image cannot create loyalty to consumers.

Service Quality has a negative and insignificant effect on Consumer Loyalty. The quality of service does not always have an influence on consumers to continue to buy Kenangan coffee and be loyal. When consumers get good service, it does not always make consumers loyal. Consumers may feel satisfied with the service, but it does not rule out the possibility of consumers becoming loyal.

Price has a positive and significant effect on Consumer Loyalty. Prices can create consumer loyalty to Kopi Kenangan, product price offers on Kenangan coffee are in accordance with the needs, benefits and quality received by customers, consumers will buy products repeatedly because the prices offered can be affordable.

Consumer Satisfaction has a positive and significant effect on Consumer Loyalty. If consumers are satisfied with Kopi Kenangan, it will cause loyalty to consumers, consumers will make purchases repeatedly. The greater the sense of consumer satisfaction obtained, the more loyal consumers will be.

Brand Image through Consumer Satisfaction has a positive and insignificant effect on Consumer Loyalty. The brand image of Kenangan coffee has a good reputation so that it causes a positive perception and can make customers believe in the brand, but to encourage and increase consumer loyalty, it is necessary to have a feeling of satisfaction from consumers, customers assess that brand image is not one of the factors that affect satisfaction and create loyalty

Service Quality through Customer Satisfaction has a negative and insignificant effect on Consumer Loyalty. The quality of service received by the customer is not in accordance with customer expectations, so customers only need to buy Kenangan coffee as a fulfillment of their wishes, but not to make them loyal consumers and make repeat purchases.

Price through Consumer Satisfaction has a positive and significant effect on Consumer Loyalty. Appropriate pricing can increase satisfaction with consumers, price flexibility in addition to increasing satisfaction with consumers is also to create consumer loyalty, consumers will make purchases repeatedly. The prices offered on Kenangan coffee are reachable. Consumers feel that the price offered is in accordance with their purchasing power, it will make consumers feel satisfied, thus making consumers make their choice to Kenangan coffee and tend to make repeated purchases.

 

 

 

 

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