Abstract:
This research arises from the condition where the local modern coffee shops
have very tough competition with the foreign local coffee shops in the country which
produce top quality of coffee bean, Indonesia. Excelso which is the modern local
coffee shop seems quite developed and it has been chosen as the object of the
research. Excelso states that it has grown in terms of service quality and innovation.
Thus, this research is aimed to find out the influence of retail service quality
dimensions (physical aspect, personal interaction, reliability, problem solving, policy)
and innovation on customer satisfaction and its implication on brand loyalty. The
previous researches and theories are used to construct the theoretical framework. The
primary data was collected by spreading the questionnaires through online to the
customers of Excelso in Jabodetabek. The sample size was 330 respondents. The data
was preceded using statistical software. It was found that personal interaction and
policy significantly influence customer satisfaction. In addition, innovation and
customer satisfaction were found significantly influence brand loyalty. Therefore,
researcher recommends Excelso to concern more about the personal interaction and
policy to get more customer satisfaction and create brand loyalty. Moreover,
innovative products also must be noted since it also influence brand loyalty.
