Analysis of the Effect of Service Quality on Customer Loyalty Mediated by Brand Image A Theory of Planned Behavior Perspective

Abstract

This study aims to examine the effect of service quality on customer loyalty mediated by brand image in the context of coffee shop businesses in Yogyakarta. A quantitative approach was applied using a survey of 150 respondents who are customers of Koat Kopi UMY. Data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS). The findings indicate that service quality has a significant positive effect on both brand image and customer loyalty. Moreover, brand image positively influences customer loyalty and significantly mediates the relationship between service quality and loyalty. Theoretically, this study reinforces the Theory of Planned Behavior (TPB) by demonstrating that service quality and brand image shape customer attitudes and behavioral intentions that foster loyalty. Practically, the results provide insights for coffee shop managers to enhance service quality as a strategic means to build a strong brand image and achieve long-term customer loyalty. The novelty of this study lies in testing the mediating role of brand image in the coffee shop industry within emerging markets, particularly Indonesia, which has received limited scholarly attention.