EXAMINING THE INFLUENCE OF BRAND EQUITY DIMENSIONS TOWARDS BRAND LOYALTY MEDIATED BY CUSTOMER SATISFACTION A CASE OF “MARTHA TILAAR SHOP” STORE

Abstract

The effort of local cosmetic brand to strengthen its position is not easy referring to the competition from international players. One of the ways for a local cosmetic brand to strengthen its position in domestic market is by having its very own retail store. Martha Tilaar Shop stands as the pioneer of local cosmetic brand to open retail store. However, despite of the performance of Martha Tilaar Shop, the tendency in the market is still foreign oriented. Here is Martha Tilaar wants to be the host in domestic and to understand its brand equity is important. This research applied Customer-Based Brand Equity with the dimensions are Physical Quality, Staff Behavior, Ideal-Self Congruence, Brand Identification, and Lifestyle-Congruence influence Brand Loyalty, mediating by Customer Satisfaction. The data retrieved from a quantitative survey of 300 respondents who have experienced Martha Tilaar Shop before. The sampling method used was convenience and snowball sampling and analyzed through Structural Equation Modeling (SEM). Based on the results, Physical Quality, Staff Behavior, and Ideal Self-Congruence were proven to have significant positive effect on Customer Satisfaction, Customer Satisfaction was also proven to have impact on Brand Loyalty. Whereas Brand Identification and Lifestyle- Congruence were not significantly have effect on Customer Satisfaction.