Halal company identity and halal restaurant loyalty: the role of customer satisfaction, customer trust and customer-company identification

Abstract

Purpose This study aims to examine the effect of halal company identity includes halal identity similarity, halal identity distinctiveness and halal identity prestige on customer satisfaction and customer trust. Furthermore, it verifies the influence of customer satisfaction and customer trust on customer-company identification. Finally, it explores the effect of customer-company identification on halal restaurant loyalty. Design/methodology/approach This study selected a sample of halal restaurants in the area of Semarang City, Indonesia, using a purposive sampling method with a total of 520 respondents. The data analysis uses confirmatory factor analysis to identify discriminant and convergent validity and then structural equation modeling is used to validate the hypotheses. Findings The result showed that all aspects of halal company identity, namely, halal identity similarity, halal identity distinctiveness and halal identity prestige, significantly affect customer satisfaction. Halal identity similarity and halal identity distinctiveness insignificantly affect customer trust; however, halal identity prestige successfully affects customer trust. Both customer satisfaction and customer trust positively impact customer-company identification and, in turn, customer-company identification impacts halal restaurant loyalty. Originality/value This study contributes to the theory of halal tourism based on social identity theory and the theory of relationship quality in achieving customer loyalty of halal restaurants.