ANALYZING FACTORS INFLUENCING BRAND LOYALTY WITH CUSTOMER SATISFACTION AS MEDIATING VARIABLE ON A LOCAL LUXURY BRAND (A CASE OF BUTTONSCARVES)

• Main Author: Lutfia Q. Giffari, Ladya
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/73003
• Institution: Institut Teknologi Bandung

The luxury goods industry has gained global recognition as a symbol of status and pride, particularly in the Asia-Pacific region with its large consumer base. Indonesia has experienced substantial growth in luxury goods consumption among the upper-middle-class segment, attracting both established fashion houses and local luxury brands. Buttonscarves, established in 2016, has become a prominent brand for Muslim women, offering luxurious printed scarves. However, concerns have arisen regarding customer dissatisfaction with the product quality, posing risk to the brand’s reputation and loyalty. To address it, this study is conducted to explore the factors influencing Brand Loyalty with Customer Satisfaction as a mediating variable. This study employed a quantitative approach using online survey, specifically utilizing a judgmental sampling method focused only on Buttonscarves customers with total of 210 respondents. The data itself was analyzed using PLS-SEM. The findings indicate that Brand Image, Customers' Perceived Value, and Customers' Perceived Quality has a significant positive influence on Customer Satisfaction. However, only Customers' Perceived Value that has a significant positive influence on Brand Loyalty, while Brand Image and Customers' Perceived Quality do not show a significant impact. This study contributes to the literature by examining the relationships among these variables within the context of Indonesian luxury brands, providing valuable insights for branding and marketing professionals, especially in the realm of local luxury brands, and advancing knowledge in these fields.