THE INFLUENCE OF RETAIL SERVICE QUALITY AND INNOVATION ON CUSTOMER SATISFACTION AND ITS IMPLICATION ON BRAND LOYALTY: A CASE OF EXCELSO IN JABODETABEK, 2014

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.