Measuring Brand Loyalty of Coffee Shop Visitors in Jakarta · Indonesia is one of the major coffee...

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Shin, Kim, & Yoon, 2012; Yu & Fang, 2009) and intention to revisit (G. J. Kim & Lee, 2009; Son, 2010), and loyalty (Chen & Hu, 2010; Ki & Lee, 2008). Other researchers focused on the brand and its attributes, such as brand image, brand affect, self-image congruity, and functional congruity (Saleki, Saki, & Nekooei, 2013; Sirgy, Grewal, & Mangleburg, 2000; Yu- sof, Musa, & Rahman, 2011). The objective of this study is to examine a model that can be used to predict brand loyalty of coffee shop visitors in Jakarta. To predict brand loyalty, coffee shops’ frequent visitors are invited to participate. The authors select predictor variables including brand trust, brand affect, self-image congruity, and functional congruity. The authors found limited study in this particular area employing these variables in Indonesian settings. Therefore, the authors used literature from various settings related to tour- ism and hospitality, retail, and service business- es. By presenting these findings, the authors ex- pect to contribute to the literature, particularly related to consumer behavior in service indus- try and coffee shop brands. Faculty of Economics, Universitas Negeri Jakarta, Indo- nesia * [email protected] ** [email protected] *** [email protected] Introduction Indonesia is one of the major coffee produc- ing countries after Brazil, Vietnam, and Colum- bia with total of 540 kilograms coffee beans pro- duced in 2014 (Szenthe, 2015). There are many varieties growing in this archipelago including Java, Luwak, Sumatera, Sulawesi, Aceh Gayo, Bali Kintamani, Papua Wamena, and Flores Bajuwa coffee (Treisna, 2015). Every year, ap- proximately 20% of the total production was consumed by Indonesians, both at home and at coffee shops (Rubiyo, Martono, & Dani, 1987). There are two different groups of coffee shops in Indonesia. First, the modern coffee shops, both owned by locals and foreigners, including franchises. Second, the traditional coffee shops, which is managed in a conventional way and becoming typical of a certain place or city. Cof- fee shops in Indonesia should be considered as a showcase of the country’s coffee industry. To win a competition in attracting more cus- tomers to visit and keep visiting their point- of-sales, coffee shop managements and own- ers consider enhancing many factors, such as product quality, service quality, perceived val- ue, price, promotions, and store atmosphere. By prior researchers, these factors have been chosen for their studies and reported that these factors significantly influence intention to visit (Jeon & Jo, 2011; H. S. Lee & Yeu, 2010; J. Measuring Brand Loyalty of Coffee Shop Visitors in Jakarta Usep Suhud*, Cattleya Dewi Puter**, and Setyo Ferry Wibowo*** This study is intended to investigate the impact of brand trust, brand affect, self-image congruity, and functional congruity toward brand loyalty of coffee shop visitors. Participants were approached conveniently in several modern coffee shops in August-September 2014 in southern Jakarta. In total, there are four hypotheses to be tested using 200 usable valid questionnaires. As a result, three hypoth- eses were accepted – the links between brand trust and brand loyalty, self-image congruity and func- tional congruity, and functional congruity and brand loyalty. This study suggests an alternative model in order to have all hypotheses significant and positive. Brand affect and self-image congruity should not be directly linked to brand loyalty concurrently. Coffee shop managements should consider brand trust and functional congruity as two important factors in maintaining brand loyalty. Keywords: coffee shop, brand loyalty, brand trust, brand affect, self-image congruity, functional congruity ASEAN MARKETING JOURNAL June 2017 - Vol.IX - No. 1- 28-39 28

Transcript of Measuring Brand Loyalty of Coffee Shop Visitors in Jakarta · Indonesia is one of the major coffee...

Page 1: Measuring Brand Loyalty of Coffee Shop Visitors in Jakarta · Indonesia is one of the major coffee produc-ing countries after Brazil, Vietnam, and Colum-bia with total of 540 kilograms

Shin, Kim, & Yoon, 2012; Yu & Fang, 2009) and intention to revisit (G. J. Kim & Lee, 2009; Son, 2010), and loyalty (Chen & Hu, 2010; Ki & Lee, 2008). Other researchers focused on the brand and its attributes, such as brand image, brand affect, self-image congruity, and functional congruity (Saleki, Saki, & Nekooei, 2013; Sirgy, Grewal, & Mangleburg, 2000; Yu-sof, Musa, & Rahman, 2011).

The objective of this study is to examine a model that can be used to predict brand loyalty of coffee shop visitors in Jakarta. To predict brand loyalty, coffee shops’ frequent visitors are invited to participate. The authors select predictor variables including brand trust, brand affect, self-image congruity, and functional congruity. The authors found limited study in this particular area employing these variables in Indonesian settings. Therefore, the authors used literature from various settings related to tour-ism and hospitality, retail, and service business-es. By presenting these findings, the authors ex-pect to contribute to the literature, particularly related to consumer behavior in service indus-try and coffee shop brands.

Faculty of Economics, Universitas Negeri Jakarta, Indo-nesia* [email protected]** [email protected] *** [email protected]

Introduction

Indonesia is one of the major coffee produc-ing countries after Brazil, Vietnam, and Colum-bia with total of 540 kilograms coffee beans pro-duced in 2014 (Szenthe, 2015). There are many varieties growing in this archipelago including Java, Luwak, Sumatera, Sulawesi, Aceh Gayo, Bali Kintamani, Papua Wamena, and Flores Bajuwa coffee (Treisna, 2015). Every year, ap-proximately 20% of the total production was consumed by Indonesians, both at home and at coffee shops (Rubiyo, Martono, & Dani, 1987). There are two different groups of coffee shops in Indonesia. First, the modern coffee shops, both owned by locals and foreigners, including franchises. Second, the traditional coffee shops, which is managed in a conventional way and becoming typical of a certain place or city. Cof-fee shops in Indonesia should be considered as a showcase of the country’s coffee industry.

To win a competition in attracting more cus-tomers to visit and keep visiting their point-of-sales, coffee shop managements and own-ers consider enhancing many factors, such as product quality, service quality, perceived val-ue, price, promotions, and store atmosphere. By prior researchers, these factors have been chosen for their studies and reported that these factors significantly influence intention to visit (Jeon & Jo, 2011; H. S. Lee & Yeu, 2010; J.

Measuring Brand Loyalty of Coffee Shop Visitors in Jakarta

Usep Suhud*, Cattleya Dewi Puter**, and Setyo Ferry Wibowo***

This study is intended to investigate the impact of brand trust, brand affect, self-image congruity, and functional congruity toward brand loyalty of coffee shop visitors. Participants were approached conveniently in several modern coffee shops in August-September 2014 in southern Jakarta. In total, there are four hypotheses to be tested using 200 usable valid questionnaires. As a result, three hypoth-eses were accepted – the links between brand trust and brand loyalty, self-image congruity and func-tional congruity, and functional congruity and brand loyalty. This study suggests an alternative model in order to have all hypotheses significant and positive. Brand affect and self-image congruity should not be directly linked to brand loyalty concurrently. Coffee shop managements should consider brand trust and functional congruity as two important factors in maintaining brand loyalty.

Keywords: coffee shop, brand loyalty, brand trust, brand affect, self-image congruity, functional congruity

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Figure 1. The Proposed Model

Literature Review

Conceptual Framework

Prior studies employed service quality, cor-porate brand, brand experience, value, atmo-spherics, satisfaction, and price to examine coffee shop brand loyalty (Musikapart, 2013; Purwanto, 2015; C.-S. Shin, Hwang, Lee, & Cho, 2015; Susanty & Kenny, 2015; Tu, Wang, & Chang, 2012). The authors distinguish this study from others by using the figure below as the proposed model to be tested. This installa-tion is built based on the conceptual background discussed below involving four predictor vari-ables: brand trust, brand affect, self-image con-gruity, and functional congruity. The authors consider that this proposed model is appropri-ate for Indonesia’s business situation for two main reasons: some modern chains of coffee shops are foreign brands and are associated with North America and Israel. In effect, some Indonesians believe that these two countries are ‘enemies’. Second, for Indonesian customers, modern coffee shops are seen as a hedonic des-tination instead of a utilitarian one.

In total there are four hypotheses includ-ing the influences between brand trust towards brand loyalty, brand affect towards brand loy-alty, self-image congruity towards functional congruity, and functional congruity towards brand loyalty.

Conceptual Background

Brand Loyalty

Companies expect as many customers as possible having loyalty to their brands so that

they would keep purchasing and use what the companies offered. Studies on customer loy-alty grow significantly in marketing. One of the prominent and most cited literature on brand loyalty is a study conducted by Chaudhuri and Holbrook (2001). In the study, there were two types of loyalty mentioned – attitudinal loyalty to represent consumers’ physiological com-mitment and behavioral loyalty when consum-ers act to show their loyalty. These findings inspired other scholars, including Geçti and Zengin (2013) and Matzler, Grabner-Kräuter, and Bidmon (2006) to test the attitudinal loy-alty and behavioral loyalty. Furthermore, Hus-sein, Ismail, and Hapsari (2015) mentioned that attitudinal loyalty has three dimensions includ-ing cognitive, affective, and conative. Accord-ing to the scholars, attitudinal and behavioral loyalties were significantly influenced by brand trust and brand affect.

Although many studies employed the two types of loyalty, in this study the authors con-sider brand loyalty as a single variable without seeing it as attitudinal behavioral relating to loyalty. Studies demonstrated that brand loy-alty can be influenced by many factors, such as brand trusts, brand affect, self-image congruity, and functional congruity.

Brand Trust

Chaudhuri and Holbrook (2001, p. 82) de-fined brand trust as “the willingness of the aver-age consumer to rely on the ability of the brand to perform its stated function”. According to Chaudhuri and Holbrook (2001) and Matzler et al. (2006), loyalty is divided into attitudinal loyalty and behavioral loyalty. These schol-ars showed that brand trust significantly influ-

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ence attitudinal loyalty and behavioral loyalty whereas brand trust was influenced by hedonic value and utilitarian value.

Kabadayi and Alan (2012) also agreed that brand trust is one of the important keys to in-fluence brand loyalty. They surveyed 98 under-graduate and postgraduate students who experi-enced visiting a coffee store. Geçti and Zengin (2013) employed brand trust and brand affect to predict attitudinal loyalty and behavioral roy-alty. In their proposed research model, they also linked attitudinal loyalty to behavioral loyalty. In this study, brand affect insignificantly influ-enced behavioral loyalty whereas other links were significant.

Ahmed, Rizwan, Ahmad, and Haq (2014) in-cluded brand trust to predict brand loyalty and proved that brand trust significantly influenced brand loyalty. In their study, brand loyalty was treated as a single variable. Another study, con-ducted by Soong, Kao, and Juang (2011), treat-ed brand loyalty as a single variable, too. The findings from this study indicated that brand trust significantly influenced brand loyalty. H1:Thereisapositiveandsignificantlinkbe-

tween brand trust and brand loyalty.

Brand Affect

Brand affect is “the willingness of the aver-age consumer to rely on the ability of the brand to perform its stated function” (Chaudhuri & Holbrook, 2001, p. 82). Afif, Sutiksno, Hardi-yanto, and Shiratina (2015) used brand trust and brand affect to predict brand loyalty. These scholars conducted the study by involving par-ticipants of English courses in Kediri, Indone-sia. Anwar, Gulzar, Sohail, and Akram (2011) selected 200 female shoppers who experienced purchasing products with particular brands in Pakistan. In the proposed model, there were three predictor variables including brand trust, brand affect, and brand image to measure brand loyalty. These two studies demonstrated that all these predictor variables significantly influ-enced brand loyalty. Another study that showed that brand affect as an important key for brand loyalty is the one that conducted by R. B. Kim and Zhao (2014).

While many studies showed a significant in-fluence of brand affect brand loyalty, Geçti and

Zengin (2013) documented otherwise. They tested and found that brand affect was insignifi-cant to influence brand loyalty. H2:Thereisapositiveandsignificantlinkbe-

tweenbrandaffectandbrandloyalty.

Self-image Congruity

Self-image congruity is defined as “the match between the product’s value-expressive attributes (product-user image) and the audi-ence’s self-concept” (Johar & Sirgy, 1991, p. 24). In his study, Sirgy (1985) mentioned that self-image congruity might have four dimen-sions including actual self-congruity, ideal self-congruity, social self-congruity, and ideal social self-congruity. Later, this concept was applied by this author in different settings, such as in travel behavior (Sirgy & Su, 2000) and retail business (Sirgy et al., 2000). Saleki et al. (2013) employed these four dimensions to predict functional congruity and found that self-image was one of the important variables to influence functional congruity.

Mahjoub, Kordnaeij, and Moayad (2015) selected only two dimensions of self-image in-cluding actual self-image and ideal self-image and treated them as two different variables to predict brand loyalty. This study involved 470 mobile phone users in Tehran. According to the findings, these two variables had a significant and positive influence towards brand loyalty.

Kang, Tang, and Bosselman (2011) docu-mented that self-image had a significant influ-ence on functional congruity. Some other re-searchers such as Hung and Petrick (2012), M. Kim (2004), Kressmann et al. (2006), Kumar and Nayak (2014), and Yusof et al. (2011) also support that self-image congruity significantly influence functional congruity. H3:Thereisapositiveandsignificantlinkbe-

tweenself-imagecongruityandfunctionalcongruity.

Functional Congruity

Sirgy and Johar (1999, p. para 4) defined functional congruity as “the match between the consumer’s beliefs about brand utilitarian attributes (performance) and the consumer’s referent attributes”. According to Yusof et al.

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Table 1. List of Coffee Shop the Most Visited by RespondentsCoffee shop brand Visitors %Starbucks 57 28.5J.Co 46 23.0Monolog 9 4.5Cafe Kopi Luwak 7 3.5Dome 3 1.5Djournal 13 6.5Anomali 14 7.0Coffee Bean and Tea Leaf 4 2.0Gloria Jean's Coffee 2 1.0Black Canyon 11 5.5Killiney Kopitiam 4 2.0Excelso 15 7.5Bakoel Coffee 3 1.5Coffee Toffee 8 4.0Bengawan Solo 4 2.0Total 200 100.0

(2011), self-image congruity had a positive and significant influence on functional image congruity and functional image congruity had a positive and significant influence on brand loyalty. Three dimensions of self-image con-gruity retained in their study, namely ideal con-gruity, social congruity, and actual congruity. Furthermore, the four dimensions of functional congruity retained were salespersons, price, atmosphere, and location. According to the findings, self-image congruity had a positive and significant influence towards on functional congruity as well as the influence of functional congruity on brand royalty. In the study carried out by Kressmann et al. (2006), self-image con-gruity was put to influence functional congru-ity and functional congruity was to influence brand loyalty. Hohenstein, Sirgy, Herrmann, and Heitmann (2007b) measured the influence of functional congruity on brand royalty. These two studies documented that self-image con-gruity had a positive and significant influence on brand loyalty. H4:Thereisapositiveandsignificantlinkbe-

tweenfunctionalcongruityandbrandloy-alty.

Methods

Sample Profile

Respondents were chosen purposively to participate in this study in the area of coffee shops where the authors distributed the instru-ments. As this study is addressed to measure

loyalty, the selected respondents were only those who have had prior experience visiting the same coffee shop for more than three times in the last three months. The data collection was conducted during August-September 2014 in southern Jakarta.

In total, there were 200 respondents com-pleting the research instrument and all were useable. The authors found that 109 respon-dents (54.5%) were male and were predomi-nantly (48%) in the age range of 20-25. The rest of respondents were female (39%) and in similar age range with the males. Apparently, the number of male and female visitors was al-most equal.

Looking at the level of education, more than 40% respondents claimed that they held a bach-elor degree. It indicated that the frequent coffee shop visitors were well educated. In term of oc-cupation, more than 65% of them were employ-ees. Additionally, predominant respondents (41.5%) spent less than USD400 for monthly consumption. By this fact, the visitors showed that they had purchasing power and fund allo-cation for a cup of coffee on a regular basis. Furthermore, the data showed that marital sta-tus was not a constraint for respondents to re-visit a coffee shop although most of them were single (55.5%) and only 42.5% were married.

As assumed by the authors, not all coffee shop visitors were coffee enthusiasts. Almost 25% of the respondents visited coffee shops not to order coffee. When they were asked about the most frequently visited coffee shop, almost 30% of them mentioned Starbucks and about

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25% mentioned J.Co. The table below showed modern coffee shops which the respondents visited the most. Although the profile of respon-dents is presented here, the authors do not apply this as predictor variable.

Instrument Development

To develop the instrument for this study, the authors adapted indicators that have been used in prior studies. This action was taken as part of the instrument validation as they have been tested and validated. To measure brand trust, the authors adapted indictors from Manjunath and Aluregowda (2013). Indicators for brand af-fect were adapted from the indicators tested by Manjunath and Aluregowda (2013). Self-image congruity was measured using indicators tested by M. Kim (2004). Functional congruity was measured by indicators used by prior studies including Benitez, Martín, and Román (2007) and M. Kim (2004).To measure brand loyalty, the author chose indicators examined by Halim (2006) and Artuger and Çetinsöz (2013).

Data analysis

The data was analyzed in two stages. In the first stage, the authors conducted exploratory factor analysis as a way of data validation, also as a way to find dimensions if any and retain only indicators with loadings of 0.4 and greater (Hair Jr., Black, Babin, Anderson, & Tatham, 2006; Holmes-Smith, 2010). This calculation was followed by a reliability test. In this study, only construct with a score of 0.7 and greater was included for further analysis (Hair Jr. et al., 2006).

In the second stage, confirmatory factor analysis (structural equation model) was used

to measure the conceptual framework. A fit-ted framework should have a probability score of 0.05 (Schermelleh-Engel, Moosbrugger, & Müller, 2003), CMIN/DF score of ≤ 2 (Tabach-nick & Fidell, 2007), CFI score of ≥ 0.97 (Hu & Bentler, 1995), and RMSEA score of ≤ 0.05 (Hu & Bentler, 1999).

Results and Discussion

Exploratory and Confirmatory Factor Analysis

This section presents results of exploratory and confirmatory factor analysis of each vari-able.

Brand Trust

There are three dimensions of brand trust – trust, quality, and hedonic – developed by factor analysis. The first dimension has four indicators with factor loadings ranging from 0.621 to 0.784. The second dimension retains two indicators with factor loadings of 0.778 and 0.770. The last dimension owns two indicators too with factor loadings of 0.731 and 0.644. Cronbach’s alpha scores of the dimensions are 0.679, 0.528, and 0.349 respectively. Only the first dimension is considered reliable however all of the dimensions are still included in the model testing.

Brand Affect

The result of exploratory factor analysis in-dicated that brand affect has four dimensions namely availability (two indicators), hedonic (three indicators), quality (two indicators), and

Table 2. Factor Analysis of Brand TrustTrust α= 0.679

BT9 I believe that the name coffee shop that I visit often to suit my needs. 0.784BT8 I believe the name of the product from coffee shop that I visit often, has a special character that is not owned by the

product of the name of another coffee shop.0.695

BT6 I think the coffee shop that I visit often has a value of honesty. 0.690BT5 I have enough knowledge or information about the name of the coffee shop I visit often. 0.621

Quality α= 0.528BT7 I believe the name coffee shop that I visit often have a good quality. 0.778BT4 Name of the coffee shop that I visit often is a coffee shop that is consistent with the quality of its products. 0.770

Hedonic α= 0.349BT1 I believe the name coffee shop that I visit often will make me happy. 0.731BT3 I believe the name coffee shop that I visit often will give me satisfaction. 0.644

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utilitarian (two indicators) with Cronbach’s al-pha scores of 0.569, 0.622, 0.764, and 0487 re-spectively.

Self-image Congruity

Self-image congruity has four dimensions, i.e. actual self-image (three indicators), ideal social self-image (three indicators), self-image towards brand image (three indicators), and im-pression of the brand (two indicators). These

dimensions have Cronbach’s alpha scores of 0.720, 0.720, 0555, and 0.445 respectively.

Functional Congruity

For functional congruity variable, the au-thors obtain two dimensions including ideal congruity (six indicators) with a Cronbach’s al-pha score of 0.771 and actual congruity (two in-dicators) with a Cronbach alpha score of 0.576.

Table 3. Factor Analysis Result of Brand AffectAvailability α= 0.569

BA10 Name of coffee shop that I visit often available in many places so it is easy to reach 0.857BA9 Name of the coffee shop that I visit often available in many places makes me want to visit again and again. 0.629

Hedonic α= 0.622BA3 The coffee shop that I visit often makes me feel impressed. 0.828BA12 Name of the coffee shop that I visit often gives me satisfaction. 0.718BA7 The coffee shop that I visit often makes me feel good. 0.650

Quality α= 0.764BA1 Name of the coffee shop that I visit often has the most excellent quality, so it makes me want to consume it constantly. -0.914BA11 Name of the coffee shop that I visit often have special characters, so it makes me want to visit again and again. -0.911

Utilitarian α= 0.487BA5 I feel good when I consume products from name coffee shop that I visit often. 0.886BA8 Name of the coffee shop that I go to meet my need for coffee. 0.663

Cronbach’s alpha

Table 4. Factor Analysis of Self-image CongruityActual self-image α= 0.720

SIC3 The image of the typical visitor of the coffee shop that I visit often very consistent with how I see myself 0.824SIC1 The image of people who visited the coffee shop that I visit often than at other coffee shops is similar to how I see

myself0.791

SIC2 People who prefer the coffee shop that I visit often than other coffee shops are similar to my self-image today 0.747Ideal social self-image α= 0.720

SIC6 People who prefer the coffee shop that I visit often than other coffee shops are similar to the ideal image of how I am perceived by others

-0.783

SIC4 The image of the typical visitors of the coffee shop that I visit often very consistent with how I am perceived by others -0.775SIC5 The image of people who visited the coffee shop that I visit often than other coffee shops is similar to how I want to be

seen by others-0.744

Self-image toward the brand α= 0.555SIC11 The image of the coffee shop that I visit often corresponds with my self-image in many ways 0.795

SIC12 Part of myself is defined by the coffee shop that I visit often, which is important in my life brand 0.751SIC10 The image of the name of the coffee shop that I visit often is quite similar like myself 0.500

Impression of the brand α= 0.445SIC9 There is a relationship between the coffee shop that I choose for my visit with how I see myself 0.863SIC7 Through the coffee shop that I visit often, I can express the important things that I have found in life 0.583

Table 5. Factor Analysis Result of Functional CongruityIdeal congruity α= 0.771

FC3 The prices of drinks and food from the coffee shop that I visit often are in accordance with its values 0.780FC2 The drinks and food from the coffee shop that I visit often are environmentally friendly 0.742FC7 The coffee shop that I visit often are reliable 0.691FC1 The services of the coffee shop that I visit often are timely. 0.628FC8 The employees at the coffee shop that I visit often are friendly to customers 0.627FC5 The atmosphere of the coffee shop that I visit is often comfortable 0.571

Actual congruity α= 0.576FC6 I think the cleanliness in the coffee shop that I visit often is good 0.840FC4 I think the drinks and main meal from the coffee shop that I visit often are good 0.806

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Brand Loyalty

There are four dimensions – recommended, first choice, committed, and high value purchas-es – resulted by factor analysis of brand loy-alty. The first dimension (recommended) owns three indicators with factor loadings ranging from 0.617 to 0.841 with a Cronbach’s alpha of 0.682. The second dimension (first choice) has three indicators with factor loadings rang-ing from 0.458 to 0.806. This dimension has a Cronbach’s alpha of 0.606. Furthermore, the third dimension – committed retains three indi-cators with factor loading from 0.464 to 0.847

and Cronbach’s alpha of 0.623. The last dimen-sion retains two indicators with factor loadings ranging from 0.795 to 0.810 and a Cronbach’s alpha of 0.565.

The Proposed Model Testing

The proposed model had been examined and produced a fitted model with probability score of 0.163, CMIN/DF of 1.100, CFI of 0.976, and RMSEA of 0.022.

Based on the structural calculation, three hy-potheses were accepted including H1, H3, and H4. The links between brand trust and brand

Table 6. Factor Analysis Result of Brand LoyaltyRecommended α= 0.682

BL2 I would recommend the coffee shop that I visit often to anyone who asks for my advice 0.841BL3 I would say positive things about the coffee shop that I visit often to others 0.765BL1 I would recommend the coffee shop that I visit often to friends and relatives 0.617

First choice α= 0.606BL10 If I wanted to visit the coffee shop, my first choice is a coffee shop that I visit often 0.806BL11 I have the possibility to come back to the coffee shop that I visit often 0.803BL8 The coffee shop that I visit often would be the first choice in the future. 0.458

Committed α= 0.623BL4 I would not switch to other coffee shops although there are many options of other coffee shops 0.847BL6 I'm not going to make a purchase when the coffee shop that I visit often is not available where I am 0.762BL5 When I have a need to visit a coffee shop, I will only visit the coffee shop that I visit often 0.464

High value purchases α= 0.565BL9 Although there are many options of other coffee shops, I will continue to buy the product from the coffee shop that I visit

often0.810

BL7 I am willing to pay more to get the product from the coffee shop that I visit often 0.795

Criteria Probability CMIN/DF CFI RMSEAResults 0.163 1.100 0.976 0.022Cut-off >0.05 <3.0 >0.95 <0.05

Figure 2. The Result of Confirmatory Factor Analysis

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loyalty, self-image congruity and functional congruity, and functional congruity and brand loyalty had t-values of 2.214, 4.147, and 2.451 respectively demonstrating that they are higher than 2.0 and significant (Holmes-Smith, 2010).

The link between brand affect and brand loy-alty had t-value of -1.028 that was insignificant. Besides, this second hypothesis had a nega-tive direction. Therefore, it was rejected. Fur-thermore, among the links, the ones between self-image congruity and functional congruity and between brand trust and brand loyalty had standardized total effects of 0.988 and 0.899 respectively. They were considered very strong effects.

Although the proposed model produced sat-isfying findings, the authors proposed and test-ed an alternative model as discussed below.

The Alternative Model Testing

The alternative full model achieved a fitted model with probability score of 0.075, CMIN/

DF of 1.148, CFI of 0.964, and RMSEA of 0.027. As seen on the figure below, all links have a positive direction.

Summary of the results are presented in the table below. According to the findings, brand trust significantly influences brand loyalty. This statement is based on the score of t-value (3.950) resulted by structural equation model analysis. This finding supports prior stud-ies conducted by Anwar et al. (2011), Chaud-huri and Holbrook (2001), Kabadayi and Alan (2012), Manjunath and Aluregowda (2013), and Matzler et al. (2006). Furthermore, the link has standardized total effect of 0.792 showing that brand trust has a strong effect on brand loyalty.

The influence of brand trust towards brand affect is also documented. The authors looked at the studies undertaken by Anwar et al. (2011); Kabadayi and Alan (2012). The find-ings showed that t-value for this link of 3.822 and is significant according to Holmes-Smith (2010). The link owns a score of standardized total effect of 0.698 and is considered to have a

Table 7. Summary of the Proposed Model TestingHypothesis Independent variable Dependent variable t-value Results Standardized

total effect Interpretation

H1 Brand trust Brand loyalty 2.214 Accepted 0.899 Very strong H2 Brand affect Brand loyalty -1.028 Rejected -0.518 Strong H3 Self-image congruity Functional congruity 4.147 Accepted 0.988 Very strong H4 Functional congruity Brand loyalty 2.451 Accepted 0.627 Strong

Criteria Probability CMIN/DF CFI RMSEAResults 0.075 1.148 0.964 0.027Cut-off >0.05 <3.0 >0.95 <0.05

Figure 3. The result of structural equation model of the proposed model testing

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strong effect. The third link has t-value of 3.31 depicting

that brand affect has a significant influence to-wards self-image congruity. This finding sup-ports the studies conducted by Hohenstein et al. (2007b). In addition, the link has standardized total effect of 0.730 suggesting that it has strong effect.

To examine the influence of self-image con-gruity towards functional congruity, the authors looked at studies conducted by Hohenstein et al. (2007), Kang et al. (2011), M. Kim (2004), and J. Y. Lee, Kang, and Tang (2011). As a result, this link has t-value of 4.136 indicating that the link is significant. Among other links, the link between self-image congruity and functional congruity is considered possessing the stron-gest effect as it has a standardized total effect of 0.998.

Lastly, the influence of functional congru-ity towards brand loyalty is proven and is sig-nificant with t-value of 4.136. This finding was similar with the findings reported by prior re-searchers, such as Hohenstein et al. (2007b). The other score such as the standardized total effect is considered moderately strong.

Conclusions and Recommendations

The main objective of this study is to exam-ine a model that is used to predict customers’ brand loyalty related to coffee shop brands in Jakarta. The study involved variables including brand trust, brand affect, self-image congruity, functional congruity, and brand loyalty. In the proposed model testing, three hypotheses are

accepted: the influence of brand trust to brand loyalty, self-image congruity to functional con-gruity, and functional congruity to brand loy-alty. One hypothesis – the influence of brand affect towards brand loyalty – was rejected due to insignificance.

This study however has some limitations as it applied convenience sampling method. Be-sides, this study measured only coffee shops visitors at a shopping mall. Therefore, this study was not intended to generalize the result.

For practitioners, the findings of this study suggest growing their coffee shop brands as an important aspect to develop brand trust, brand affect, self-image congruity and functional con-gruity. As demonstrated in many studies, these variables lead to customer satisfaction and brand loyalty (Jamal & Goode, 2001; Kress-mann et al., 2006; Sirgy, Lee, Johar, & Tidwell, 2008) directly or indirectly.

This study also offered an alternative model. On this alternative model, in total, there were five links to be tested. Based on the exploratory and confirmatory factor analyses, all links were significant as each of the links owned a t-value greater than 2.0. Future research might con-sider using this suggested research model be-low. This model, an alternative model from the one presented above, includes five variables – brand trust, brand effect, self-image congruity, functional congruity, and brand loyalty. Brand trust is linked directly to brand loyalty (Geçti & Zengin, 2013; Kabadayi & Alan, 2012; Riz-wan, Umair, Bilal, Akhtar, & Bhatti, 2014) and brand affect. In addition, self-image congru-ity is linked to functional congruity as many

Table 8. Summary of the Alternative Model Testing ResultsIndependent

variableDependent

variable t-value Hypothesis result

Standardized regression weights

Standardized total effect Interpretation

Brand trust Brand loyalty 3.950 Significant 0.598 0.792 Strong effectBrand trust Brand affect 3.822 Significant 0.698 0.698 Strong effect Brand affect Self-image congruity 3.321 Significant 0.730 0.730 Strong effect

Self-image congruity Functional congruity 4.136 Significant 0.998 0.998 Extremely strong effectsFunctional congruity Brand loyalty 3.117 Significant 0.382 0.382 Moderately strong effect

Figure 4. The Model Suggestion for Future Research

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studies also suggested (Hung & Petrick, 2012; Kang et al., 2011; Kressmann et al., 2006; Ku-mar & Nayak, 2014; Yusof et al., 2011) and functional congruity is linked to brand loyalty (Hohenstein, Sirgy, Herrmann, & Heitmann, 2007a; Kressmann et al., 2006). In this sug-

gested model, there is also a direct link between brand affect and self-image congruity. Some of the constructs are unsupported by existing stud-ies to date and this model is not only intended to measure brand loyalty of coffee shop visitors, but also for other services and goods.

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