The Impact of Brand Image, Pricing Strategies, and Product Quality on Consumer Loyalty in the Coffee Industry: An Empirical Study Using Structural Equation Modeling

Gabriel Pebadja; Siti  Kholifah

doi:10.51903/jmi.v2i2.134

Authors

Gabriel Pebadja Universitas Sains dan Teknologi Komputer, Kota Semarang, Indonesia
Siti Kholifah Universitas Sains dan Teknologi Komputer, Kota Semarang, Indonesia https://orcid.org/0000-0001-8407-5007

DOI:

https://doi.org/10.51903/jmi.v2i2.134

Keywords:

Brand image, coffee industry, consumer loyalty, pricing strategies, product quality, structural equation modeling

Abstract

The coffee industry has grown increasingly competitive, making it essential to understand the key drivers of consumer loyalty. This study investigates the influence of brand image, pricing strategies, and product quality on consumer loyalty within the coffee sector. Specifically, it examines how these factors interact and assesses their relative impact on customer retention. A quantitative research design was adopted, employing a cross-sectional survey of 400 coffee consumers in Indonesia. Data were collected through a structured questionnaire and analyzed using Structural Equation Modeling (SEM) in SmartPLS 4.0. The findings indicate that brand image significantly positively affects consumer loyalty (β = 0.35, t = 3.64, p < 0.05), suggesting that a well-established and consistent brand identity enhances customer retention. Pricing strategies also demonstrate a notable influence (β = 0.42, t = 6.63, p < 0.05), highlighting that fair and transparent pricing fosters brand trust. Furthermore, product quality emerges as the strongest predictor of consumer loyalty (β = 0.66, t = 5.35, p < 0.05), emphasizing the importance of sensory attributes such as taste and aroma in driving repeat purchases. Additionally, product quality is found to mediate the relationship between brand image, pricing strategies, and consumer loyalty, reinforcing the necessity of maintaining high product standards. This study contributes to the existing literature on consumer behavior by integrating these three key factors into a unified framework, addressing gaps in previous research. The findings offer practical implications for coffee brands, underscoring the importance of a balanced approach that combines strong branding, strategic pricing, and superior product quality to enhance customer loyalty.

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