Abstract
The aim of this research is to examine the positive influence of brand awareness, brand image, and brand trust on brand loyalty. The coffee shop business in big cities in Indonesia is growing rapidly. Each coffee shop strives to show its uniqueness. This competition has resulted in them competing to increase competitiveness by using logos, symbols, unique names – or what is usually called a brand to become a differentiator among the competitors. This study was done in a quantitative manner. The data was collected by using a questionnaire distributed using a survey method. Using a snowball sampling, a total of 436 samples were used and analyzed statistically using the partial least square – structural equation modeling (PLS-SEM) approach using SmartPls 3.0 program. The results show that brand awareness and brand trust had a positive effect on brand loyalty. However, the brand image did not have a positive effect on brand loyalty. This study is expected to provide input to the coffee shop management on how to increase their brand loyalty which can be done by increasing their brand awareness, brand image, and brand trust.
Highlights
In Indonesia, franchises of cofee shop business have been the current trend
The target population was all customers of coffee shops in Indonesia
The results reveal that the requirement for variance inflation factor (VIF) value to be below 5 can be met
Summary
In Indonesia, franchises of cofee shop business have been the current trend. In 2016, more than ten thousand cafés were open in Indonesia, and the total revenue increased from USD 3.4 billion to USD 4.16 billion in 2013-2018. This condition is predicted to continue to grow up to 30% (“Potensi bisnis kafe sentuh USD 4,16 milliar“, 2016)
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