Economic growth in Indonesia encourages the growth of many industries. Specifically, the food and beverage industry has grown significantly in Indonesian economics.  Coffee shops with foreign or local brands are growing and competing for having customer loyalty. Many research has been conducted to examine customer loyalty in a particular coffee shop. However, little research has been focused on comparing both local and foreign brand names of the coffee shop. The comparative study is needed to understand whether foreign or local brand names matter in predicting both customer satisfaction and loyalty. This research uses a quantitative paradigm using descriptive research type. The object of research is Starbucks (foreign brand) and Djournal Coffee  (local brand). Data were collected through questionnaires distributed by applying judgemental sampling. Data analysis was conducted by using structural equation model (SEM). In this study, there are two unsupported hypotheses namely (1)  the relationship between the ideal self-congruence and customer satisfaction, and (2) the relationship between brand identification and customer satisfaction. The study also provides theoretical contributions, managerial implications and suggestions for further research. Keywords: brand equity, customer satisfaction, brand loyalty, SEM Pengaruh Ekuitas Merek Berbasis Konsumen dan Kepuasan terhadap Loyalitas: Sebuah Studi Empiris Abstrak: Pertumbuhan ekonomi di Indonesia mendorong pertumbuhan banyak industri. Secara khusus, industri makanan dan minuman telah tumbuh secara signifikan dalam ekonomi Indonesia. Kedai kopi dengan merek asing atau lokal tumbuh dan bersaing untuk memiliki loyalitas pelanggan. Banyak penelitian telah dilakukan untuk menguji loyalitas pelanggan di coffee shop tertentu. Namun, sedikit penelitian yang difokuskan untuk membandingkan nama merek lokal dan asing dari coffee shop. Studi perbandingan diperlukan untuk memahami apakah nama merek asing atau lokal penting dalam memprediksi kepuasan dan loyalitas pelanggan. Penelitian ini menggunakan paradigma kuantitatif dengan menggunakan tipe penelitian deskriptif. Objek penelitian adalah Starbucks (merek asing) dan Djournal Coffee (merek lokal). Data dikumpulkan melalui kuesioner yang didistribusikan dengan menggunakan judgemental sampling. Analisis data dilakukan dengan menggunakan pemodelan persamaan struktural (SEM). Dalam penelitian ini ada dua hipotesis yang tidak didukung yaitu (1) hubungan antara kongruensi diri yang ideal dan kepuasan pelanggan dan (2) hubungan antara identifikasi merek dan kepuasan pelanggan. Studi ini juga memberikan kontribusi teoritis, implikasi manajerial dan saran untuk penelitian lebih lanjut. Kata kunci: ekuitas merek, kepuasan konsumen, loyalitas merek, SEM

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The Effect of Consumer-Based Brand Equity and Satisfaction on Loyalty: An Empirical Study

In this study, the conceptual framework of brand equity is a combination of antecedents that create differential effects to customer response on customer-based brand equity in the banking and financial industry in Batam. By constructing a conceptual framework of the factors affecting brand equity, company will build a competitive advantage in the banking and financial industry that will increase their long-term sustainability in Batam. The recent trends of banking industry have changed tremendously, and studies of a brand equity in the banking industry at Batam and Indonesia is increasingly becoming considerable to keep pace with this change. In this conceptual paper, we have summarized the literatures on currently prevailing concepts and approaches on brand equity that will allow us to identify the conceptual framework of brand equity including all the factors affecting the customer response namely brand image, brand loyalty, brand awareness, and perceived quality and therefore will facilitate banking and financial firms to enhance their marketing efficiency and effectiveness in Batam.

https://online-journal.unja.ac.id/jbsmr/article/download/9146/5668

A conceptual framework to examines brand equity in bank and financial firms

Purpose: The objective of this paper is to understand the role that perceived justice plays in the insurance industry, as well as its relational outcomes. Thus, the purpose is to help the insurance companies to understand the effects of service recovery rendered when service failure happens. This study seeks to propose and test a framework in the insurance sector for examining the role that perceived justice, with three dimensions: distributive, procedural and interactional, plays in car insurances. Design/methodology/approach : This investigation proposes a theoretical model tested using structural equation modelling (SEM). A questionnaire survey was developed to explore the relationships between perceived justice, satisfaction, trust, commitment, loyalty and worth-of mouth in the insurance industry. For this study, 744 valid questionnaires were collected from a sample of Portuguese car insurance holders. Findings: The results show that all three justice dimensions affect satisfaction, with procedural justice showing the strongest relative influence. In turn, satisfaction influences directly loyalty and worth-of-mouth and indirectly through trust and commitment. Satisfaction influences trust. Trust has a direct influence on commitment and has an indirectly impact on loyalty and word-of-mouth, via commitment. Commitment influences loyalty and word-of-mouth. Finally, loyalty affects word-of-mouth. Originality/Value: In order to address gaps in the literature, the present study developed an integrative model through which three dimensions of perceived justice operate in affecting loyalty and word-of-mouth, via satisfaction, trust and relational commitment. There is a lack of research on the direct and indirect effects of perceived justice on loyalty and word-of-mouth. Therefore, this investigation examines the importance of perceived justice in the car insurance industry, due to being a type of insurance where problems can occur after an accident. We investigate the influence of a good conflict resolution on satisfaction, trust, commitment, and loyalty and word-of-mouth. Keywords: perceived justice; relational outcomes; insurance industry.

Relational outcomes of perceived justice in the insurance industry

IntroductionThe service sector has enjoyed considerable growth in recent years, so that the highest share of gross national product GNP in developed countries is related to the services sector. In Iran, the current share of the service sector in the economy is 48 percent, and over ten million people are employed in this sector (Jalali, Khairi, and Khadem, 1390). The researchers believe that as some inherent characteristics of services, such as being intangible, variability, inseparability and mortality, the concept of branding in marketing services is much more important than physical goods because it had changed the virtual nature of services and presented this nature more truly and more tangible. A powerful brand increases the trust and the power of customers in visualizing and a better understanding of the characteristics of intangible services (Hosseini et al., 1393). On the other hand, many organizations (especially service organizations) come to believe this, for achieving competitive advantage and long term survival in the market they should establish and develop powerful brands(as one of the key success factors) (GilaniNia, and Mousavian, 1389). A strong brand creates the value for both the customer and the organization. On the other hand Brands provide the concise and useful tools to simplify the selection process for purchasing the products or services for the customers, and in the process of data and information analysis make it easier and faster and in this way it creates value for customers. On the other hand, production processes and product designs may be simply are able to copy, but the image effectuation which remains in the minds of individuals and organizations based on several years of marketing and brand experience, are not easily replaced and cannot be replicated (Keller, 2008 ). As a result, companies based on a powerful brand, can set a higher price for their products, and establish a better trade leverage; they also could increase the contribution margin and profitability and reduce their vulnerability against competitors (Aaker and Joachimsthaler, 2000). Hence many sectors of service businesses are looking for brand development opportunities, in order to achieve greater advantage in their current brands, so this issue is been determined in this study by measuring the brand equity in the company. In this study researcher used the five dimensions as following, ideal selfconcept, fit lifestyle, quality of service, employee behavior and brand awareness for measuring brand equity in the study, and also colleagues (2011) were taken into consideration.On the other hand consumer's satisfaction is essential for long term success in the business, and it is one of the most important topics in marketing (Bourhim, 2010). Since consumer satisfaction is one of the main factors that determine the long-term success in the business, for this reason, those satisfied consumers are less sensitive to the prices, so they are less affected by the competitors, and they show more loyalty than the dissatisfied customers. When the marketing team statistics are regarded, this issue needs doubled necessity of consideration. Researchers believe that the cost of attracting new customers is usually more than the maintaining the old customers. Research has shown that the five percent reduction in the number of the customers could cause the loss of 85 percent of all corporate profits and meanwhile five percent increase in the customer retention causes25 percent to 125 percent growth in the profits of company (Salari, 1383). On the other hand in any organization - whether manufacturing or service organization - the most important factor for the preservation of the organization is its customers, so that if companies succeed in satisfying and especially getting their loyalty, they could prepare growth and long-term survival for themselves. In other words, the most important issue in the companies (especially service companies), is the customer's satisfaction and if this satisfaction continues it could create loyalty and by causing the more loyalty between clients that could gain more profits (GilaniNia and Mousavian, 1389). …

Mousa Shahraki

Papers

Checking the Level of Brand Equity's Impact on the Customers 'Satisfaction and Loyalty in the Iran Insurance Company