Contributions of Product Quality, Service Quality, Store Ambiance, and Promotion on Customer Loyalty: The Mediating Role of Brand Identity in Convenience Store Coffee Chains in Bangkok

Authors

  • Akaraphun Ratasuk -

Keywords:

Product Quality, Service Quality, Store Ambiance, Promotion, Customer Loyalty, Brand Image, Brand Identity

Abstract

Branding is an essential function enabling businesses to achieve their goals, particularly brand identity, differentiating their products and services from others, and brand loyalty, which is a key to sustainable success. This study investigated the roles of product quality, service quality, store ambiance, and promotion on customer loyalty and the mediating role of brand identity in convenience store coffee chains in Bangkok. Survey data were collected using self-administrative questionnaires from 410 customers using PLS-SEM. The results showed that all four variables, product quality, service quality, store ambiance, and promotion, promote brand identity while only three variables, product quality, service quality, and store ambiance, promote customer loyalty. In addition, brand identity promotes brand loyalty. The mediation test result indicated that brand identity only empirically mediates between promotion and customer loyalty.

References

Abimnwi, N. P., & Njuguna, R. K. (2015). An Analysis of in-Store Environment Ambiance Factor Influence on Consumer Behaviour. International Journal of Sales, Retailing and Marketing, 4(6), 31-44.

Acharya, A. S., Prakash, A., Saxena, P., & Nigam, A. (2013). Sampling: Why and how of it. Indian Journal of Medical Specialties, 4(2), 330-333.

Ahmad, H., & Halim, H. (2017). Determining Sample Size for Research Activities. Selangor Business Review, 2(1), 20-34.

Akram, U., Hui, P., Khan, M. K., Hashim, M., & Rasheed, S. (2016). Impact of Store Atmosphere on Impulse Buying Behaviour: Moderating Effect of Demographic Variables. International Journal of U-and E-Service, Science and Technology, 9(7), 43-60.

Aldebi, H., & Aljboory, N. (2018). The Impact of the Tourism Promotion-Mix Elements on the Foreign Tourists’ Mental Images of the Jordanian Tourist Destinations (A Field Study). International Business Research, 11(1), 74-86.

Allender, W. J., & Richards, T. J. (2012). Brand Loyalty and Price Promotion Strategies: An Empirical Analysis. Journal of Retailing, 88(3), 323-342.

Ariffin, S. , Yusof, J. M., Putit, L., & Shah, M. I. A. (2016). Factors Influencing Perceived Quality and Repurchase Intention Towards Green Products. Procedia Economics and Finance, 37, 391-396.

Barros, L. B. L., Petroll, M. D. L. M., Damacena, C., & Knoppe, M. (2019). Store Atmosphere and Impulse: A Cross-Cultural Study. International Journal of Retail & Distribution Management, 47(8), 817-835.

Beard, F. (2017). 3 Reasons why Convenience Stores are the New Coffee Shops. Retrieved February 20, 2022, from Https://Citly.Me/XPN5C

Billionmindset. (2018). CP-and-their-Coffee-Brands. Retrieved February 20, 2022, from Https://Citly.Me/5irnk

Bryman, A., & Bell, E. (2015). Business Research Methods. Oxford: Oxford University Press.

Burt, S., & Carralero-Encinas, J. (2000). The Role of Store Image in Retail Internationalisation. International Marketing Review, 17(4), 433-453.

Casais, B., & Monteiro, P. (2019). Residents’ Involvement in City Brand Co-Creation and Their Perceptions of City Brand Identity: A Case Study in Porto. Place Branding and Public Diplomacy, 15(4), 229-237.

Casidy, R., Prentice, C., & Wymer, W. (2019). The Effects of Brand Identity on Brand Performance in the Service Sector. Journal of Strategic Marketing, 27(8), 651-665.

Chung, S.-Y. A., & Byrom, J. (2020). Co-Creating Consistent Brand Identity with Employees in the Hotel Industry. Journal of Product & Brand Management, 30(1), 74-89.

Cloete, S., & Semente, E. M. M. (2022). The Influence of in-Store Ambience on Consumer Purchasing Behaviour: A Namibian Retail Apparel Store Case Study. International Journal of Applied Management Sciences and Engineering, 9(1), 1-10.

Coelho, P. S., Rita, P., & Santos, Z. R. (2018). On the Relationship between Consumer-Brand Identification, Brand Community, and Brand Loyalty. Journal of Retailing and Consumer Services, 43(7), 101-110.

Cook, K. S. (2013). Handbook of Social Psychology. Berlin/Heidelberg: Springer.

Cropanzano, R., Anthony, E. L., Daniels, S. R., & Hall, A. V. (2017). Social Exchange Theory: A Critical Review with Theoretical Remedies. Academy of Management Annals, 11(1), 479-516.

Cropanzano, R., & Mitchell, M. S. (2005). Social Exchange Theory: An Interdisciplinary Review. Journal of Management, 31(6), 874-900.

De Chernatony, L. (1999). Brand Management Through Narrowing the Gap between Brand Identity and Brand Reputation. Journal of Marketing Management, 15(1-3), 157-179.

Deka, P. K. (2019). Store Ambience and Consumer Choice of Retail Store Format. Journal of Management in Practice, 4(1), 1-14.

Dhisasmito, P. P., & Kumar, S. (2020). Understanding Customer Loyalty in the Coffee Shop Industry (A Survey in Jakarta, Indonesia). British Food Journal, 122(7), 2253-2271.

El-Adly, M. I. (2019). Modelling the Relationship between Hotel Perceived Value, Customer Satisfaction, and Customer Loyalty. Journal of Retailing and Consumer Services, 50, 322-332.

Esmaeilpour, M., & Hoseini, M. (2017). Explaining the Impact of Service Quality on Identity and Brand Personality. Polish Journal of Management Studies, 16(2), 88-98.

Essamri, A., Mckechnie, S., & Winklhofer, H. (2019). Co-Creating Corporate Brand Identity with Online Brand Communities: A Managerial Perspective. Journal of Business Research, 96(3), 366-375.

Fatima, T., Malik, S. A., & Shabbir, A. (2018). Hospital Healthcare Service Quality, Patient Satisfaction and Loyalty. International Journal of Quality & Reliability Management, 25(6), 1195-1214.

Filbert, A., & Anthony, W. (2018). The Impact of Marketing Mix of 4Ps (Product, Price, Place, and Promotion) Towards Repurchase Intention with Customer Satisfaction as the Mediator: In The Case of Uniqlo. Ibuss Management, 6(2), 1-15.

Fornell, C., & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18(1), 39-50.

Furoida, F., & Maftukhah, I. (2018). The Influence of Service Quality and Store Atmosphere on Customer Loyalty Through Customer Satisfaction. Management Analysis Journal, 7(2), 163-170.

Ghezelbash, S., & Khodadadi, H. (2017). Evaluating the Impact of Promotion Price, Product Quality, Service Quality, Customer Satisfaction, and Repeating Purchase Incentives (Case Study: Amiran Chain Stores). Journal of Internet Banking and Commerce, 22(S8), 1-17.

Ghodeswar, B. M. (2008). Building Brand Identity In Competitive Markets: A Conceptual Model. Journal of Product & Brand Management, 17(1), 4-12.

Hair Jr, F. J. (2014). Partial Least Squares Structural Equation Modeling (PLS-SEM) an Emerging Tool in Business Research. European Business Review, 26(2), 106-121.

Hair Jr, J. F., Howard, M. C., & Nitzl, C. (2020). Assessing Measurement Model Quality in PLS-SEM using Confirmatory Composite Analysis. Journal of Business Research, 109, 101-110.

Havidz, H. B. H., & Mahaputra, M. R. (2020). Brand Image and Purchasing Decision: Analysis of Price Perception and Promotion (Literature Review of Marketing Management). Dinasti International Journal of Economics, Finance & Accounting, 1(4), 727-741.

He, H., & Li, Y. (2011). CSR and Service Brand: The Mediating Effect of Brand Identification and Moderating Effect of Service Quality. Journal of Business Ethics, 100(4), 673-688.

He, H., Li, Y., & Harris, L. (2012). Social Identity Perspective on Brand Loyalty. Journal of Business Research, 65(5), 648-657.

Hermiyenti, S., & Wardi, Y. (2019). A Literature Review on the Influence of Promotion, Price and Brand Image to Purchase Decision. The 2nd Padang International Conference on Education, Economics,

Business and Accounting (PICEEBA-2 2018) (pp. 538-545). 2-18 April 2019. Dordrecht: Atlantis Press.

Hew, J.-J., Badaruddin, M. N. B. A., & Moorthy, M. K. (2017). Crafting a Smartphone Repurchase Decision Making Process: Do Brand Attachment and Gender Matter? Telematics and Informatics, 34(4), 34-56.

Hsu, C.-L., Chen, Y.-C., Yang, T.-N., Lin, W.-K., & Liu, Y.-H. (2018). Does Product Design Matter? Exploring its Influences in Consumers’ Psychological Responses and Brand Loyalty. Information Technology & People, 31(3), 886-907.

Huang, Z., Nie, J., & Zhang, J. (2018). Dynamic Cooperative Promotion Models with Competing Retailers and Negative Promotional Effects on Brand Image. Computers & Industrial Engineering, 118, 291-308.

Ilmi, Z., Darma, D. C., & Wijayanti, T. C. (2020). Can SERVQUAL Mediate from the Store Atmosphere and Customer Satisfaction? Management Theory and Studies for Rural Business and Infrastructure Development, 42(3), 359-368.

Islam, T., Ahmed, I., Ali, G., & Ahmer, Z. (2019). Emerging Trend of Coffee Cafe in Pakistan: Factors Affecting Revisit Intention. British Food Journal, 121(9), 2132-2147.

Islam, T., Islam, R., Pitafi, A. H., Xiaobei, L., Rehmani, M., Irfan, M., & Mubarak, M. S. (2021). The Impact of Corporate Social Responsibility on Customer Loyalty: The Mediating Role of Corporate Reputation, Customer Satisfaction, and Trust. Sustainable Production and Consumption, 25, 123-135.

Jani, D., & Han, H. (2011). Investigating the Key Factors Affecting Behavioral Intentions: Evidence from a Full-Service Restaurant Setting. International Journal of Contemporary Hospitality Management, 23(7), 1000-1018.

Jasmani, J., & Sunarsi, D. (2020). The Influence of Product Mix, Promotion Mix and Brand Image on Consumer Purchasing Decisions of Sari Roti Products in South Tangerang. PINISI Discretion Review, 1(1), 165-174.

Jin, C., Yoon, M., & Lee, J. (2019). The Influence of Brand Color Identity on Brand Association and Loyalty. Journal of Product & Brand Management, 28(1), 50-62.

Karnadi, G. (2021). E-Commerce Presents Opportunities for Southeast Asian Coffee Market. Retrieved April 26, 2022, from Https://Www.Euromonitor.Com/Article/E-Commerce-Presents-Opportunities-For-Southeast-Asian-Coffee-Market

Kasiri, L. A., Cheng, K. T. G., Sambasivan, M., & Sidin, S. M. (2017). Integration of Standardization and Customization: Impact on Service Quality, Customer Satisfaction, and Loyalty. Journal of Retailing and Consumer Services, 35, 91-97.

Keshtidar, M., Sahebkaran, M., Talebpour, M., & Kalashi, M. (2018). Investigating the Effect of Brand Identity and Character on Brand Loyalty of Football Team Fans. International Journal of Sport Management And Marketing, 18(1), 105-115.

Kock, N. (2017). Warppls User Manual: Version 6.0. Taxas: Scriptwarp Systems.

Konuk, F. A. (2018). The Role of Store Image, Perceived Quality, Trust and Perceived Value in Predicting Consumers’ Purchase Intentions Towards Organic Private Label Food. Journal of Retailing and Consumer Services, 43(7), 304-310.

Kristanto, J., Soleh, A. K., Al Idrus, S., & Raya, M. K. F. (2021). Promotion Mix Nahdlatul Ulama University of Surabaya to Increase New Student’s Interest. Al-Tanzim: Jurnal Manajemen Pendidikan Islam, 5(2), 1-14.

Kwon, J.-H., Jung, S.-H., Choi, H.-J., & Kim, J. (2020). Antecedent Factors that Affect Restaurant Brand Trust and Brand Loyalty: Focusing on US and Korean Consumers. Journal of Product & Brand Management, 30(7), 990-1015.

Larsson, A., & Broström, E. (2019). Ensuring Customer Retention: Insurers’ Perception of Customer Loyalty. Marketing Intelligence & Plannin, 38(2), 151-166.

Le, N. Q., & Supphellen, M. (2017). Determinants of Repurchase Intentions of Real Estate Agent Services: Direct and Indirect Effects of Perceived Ethicality. Journal of Retailing and Consumer Services, 35, 84-90.

Luntungan, C. A., Pangemanan, S. S., & Rumokoy, F. S. (2019). Comparative Analysis of Repurchase Intention Based on Brand Trust and Brand Commitment of Starbucks in Manado between Male and Female. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis Dan Akuntansi, 6(1), 161-170.

Morrison, M., Gan, S., Dubelaar, C., & Oppewal, H. (2011). In-Store Music and Aroma Influences on Shopper Behavior and Satisfaction. Journal of Business Research, 64(6), 558-564.

Nacass, A. S. (2018). In-Store Customer Experience and Customer Emotional State in the Retail Industry. Journal of Research For Consumers, (32), 110-141.

Nandan, S. (2005). An Exploration of the Brand Identity–Brand Image Linkage: A Communications Perspective. Journal of Brand Management, 12(4), 264-278.

Nikhashemi, S., Valaei, N., & Tarofder, A. K. (2017). Does Brand Personality and Perceived Product Quality Play a Major Role in Mobile Phone Consumers’ Switching Behaviour? Global Business Review, 18(3_Suppl), S108-S127.

Oladepo, O. I., & Abimbola, O. S. (2015). The Influence of Brand Image and Promotional Mix on Consumer Buying Decision-A Study of Beverage Consumers in Lagos State, Nigeria. British Journal of Marketing Studies, 3(4), 97-109.

Pamungkas, A., & Pramesti, D. A. (2021). The Effect of the Atmosphere Store, Brand Identity, and Social Media Marketing on Purchase Decisions with Buying Interest as a Mediasi Variables (Empirical Study at Janji Jiwa Coffee Shop). Borobudur Management Review, 1(1), 12-32.

Panjaitan, J. E., & Yuliati, A. L. (2016). Pengaruh Kualitas Pelayanan Terhadap Kepuasan Pelanggan Pada JNE Cabang Bandung [The Influence of Service Quality on Customer Satisfaction at JNE Branch in Bandung]. Derema (Development Research of Management): Jurnal Manajemen, 11(2), 265-289.

Park, J., & Kim, R. B. (2022). Importance of Offline Service Quality In Building Loyalty of OC Service Brand. Journal of Retailing and Consumer Services, 65(3), 102493.

Petty, R. D. (2016). A History of Brand Identity Protection and Brand Marketing. New York: Routledge.

Preacher, K. J., & Hayes, A. F. (2004). SPSS and SAS Procedures for Estimating Indirect Effects in Simple Mediation Models. Behavior Research Methods, Instruments, & Computers, 36(4), 717-731.

Prianggoro, N. F., & Sitio, A. (2019). Effect of Service Quality and Promotion on Purchase Decisions and Their Implications on Customer Satisfaction. International Journal of Engineering Technologies and Management Research, 6(6), 51-62.

Rahmawati, R., & Sentana, I. (2021). The Effect of Product Quality on Customer Loyalty with the Mediation of Customer Satisfaction. International Journal of Managerial Studies and Research (IJMSR), 9(2), 2349-0349.

Ratasuk, A. (2020). Contribution of Cultural Intelligence to Job Performance of Domestic Hotel Employees in Thailand: The Mediating Roles of Communication Effectiveness and Job Stress. Thammasat Review, 23(2), 170-191.

Ratasuk, A. (2021). The Impact of the No-Plastic-Bag Campaign on Customer Repurchase Intentions and Its Mechanism in the Modern Trade Business in Bangkok. Asia Social Issues, 15(2), 1-17.

Ratasuk, A., & Buranasompob, A. (2021). Contributions of Marketing Factors on Customer Repurchase Intentions in Convenience Store Coffee Shops in Bangkok and Mediating Role of Brand Image. Asian Administration and Management Review, 4(2), 11-21.

Ratasuk, A., & Charoensukmongkol, P. (2019). The Role of Team Trust and Team Conflict on Innovative Performance of Multicultural Teams in the Restaurant. Thammasat Review, 22(2), 1-18.

Ratasuk, A., & Charoensukmongkol, P. (2020). Does Cultural Intelligence Promote Cross-Cultural Teams Knowledge Sharing and Innovation in the Restaurant Business? Asia-Pacific Journal of Business Administration, 12(2), 183-203.

Ratasuk, A., & Gajesanand, S. (2020). Factors Influencing Brand Image and Customer Repurchase Intention: The Case of Coffee Chain Shops Located in Gas Service Stations in Bangkok. University of the Thai Chamber of Commerce Journal Humanities and Social Sciences, 40(3), 171-188.

Richter, N. F., Cepeda, G., Roldán, J. L., & Ringle, C. M. (2015). European Management Research Using Partial Least Squares Structural Equation Modeling (PLS-SEM). European Management Journal, 33(1), 1-3.

Roy, D., & Banerjee, S. (2007). CARE‐Ing Strategy for Integration of Brand Identity with Brand Image. International Journal of Commerce and Management, 17(1), 140-148.

Saleem, A., Ghafar, A., Ibrahim, M., Yousuf, M., & Ahmed, N. (2015). Product Perceived Quality and Purchase Intention with Consumer Satisfaction. Global Journal of Management and Business Research, 15(1), 21-28.

Sari, D. A. T., & Giantari, I. (2020). Role of Consumer Satisfaction In Mediating Effect of Product Quality on Repurchase Intention. International Research Journal of Management, IT and Social Sciences, 7(1), 217-226.

Setiawan, D. V. (2018). The Impact of Brand Image, Service Quality, and Sales Promotion on Customer Repurchase Intention Through Customer Satisfaction at Tokopedia in Surabaya. Undergraduate, Widya Mandala Catholic University Surabaya.

Shankar, A., & Jebarajakirthy, C. (2019). The Influence of E-Banking Service Quality on Customer Loyalty. International Journal of Bank Marketing, 37(5), 1119-1142.

Sharma, R., & Patra, J. (2021). Building Store Equity: Role of Store Image, Consumer Satisfaction, and Store Loyalty in the Indian Retail Market. Jindal Journal of Business Research, 10(1), 128-140.

Singkran, N., & Kandasamy, J. (2016). Developing a Strategic Flood Risk Management Framework for Bangkok, Thailand. Natural Hazards, 84(2), 933-957.

Sripolnork, S. (2018). Service Quality and Attitudes Influencing Consumer Loyalty of Amazon Chian Coffee in Bangkok. (Master Thesis). Bangkok Univeersity.

Srivastava, M., & Rai, A. K. (2018). Mechanics of Engendering Customer Loyalty: A Conceptual Framework. IIMB Management Review, 30(3), 207-218.

Statista. (2019). Roast Coffee Thailand. Retrieved April 26, 2022, from Https:Citly.Me/V60QM

Stompff, G. (2003). The Forgotten Bond: Brand Identity and Product Design. Design Management Journal (Former Series), 14(1), 26-32.

Suartina, I., Wimba, I., Astrama, I., Wulandari, N., Rahmayanti, P., Yasa, N., & Sujana, I. (2022). The Role of Brand Love in Mediating the Effect of Intensive Distribution and Social Media Promotion on Brand Loyalty and E-WOM. International Journal of Data and Network Science, 6(2), 335-346.

Sugiono, E., Nurwulandari, A., & Khairina, F. (2021). The Effect of Promotion Mix on Sales Performance Mediated by Customer Loyalty at Paul Bakery Kota Kasablanka Jakarta. ENDLESS: International Journal of Future Studies, 4(1), 93-111.

Sullivan, Y. W., & Kim, D. J. (2018). Assessing The Effects of Consumers’ Product Evaluations and Trust on Repurchase Intention in E-Commerce Environments. International Journal of Information Management, 39, 199-219.

Taufik, A., Santoso, S., Fahmi, M. I., Restuanto, F., & Yamin, S. (2022). The Role of Service and Product Quality on Customer Loyalty. Journal of Consumer Sciences, 7(1), 68-82.

Underwood, R. L. (2003). The Communicative Power of Product Packaging: Creating Brand Identity Via Lived and Mediated Experience. Journal of Marketing Theory and Practice, 11(1), 62-76.

Wang, W., Qiu, L., Kim, D., & Benbasat, I. (2016). Effects of Rational and Social Appeals of Online Recommendation Agents on Cognition-and Affect-Based Trust. Decision Support Systems, 86, 48-60.

Worldpopulation, R. (2018). Bangkok Population 2019. Retrieved April 27, 2022, from https://Worldpopulationreview.Com/World-Cities/Bangkok-Population/

Xhema, J., Metin, H., & Groumpos, P. (2018). Switching-Costs, Corporate Image and Product Quality Effect on Customer Loyalty: Kosovo Retail Market. IFAC-Papers Online, 51(30), 287-292.

Yoo, B., Donthu, N., & Lee, S. (2000). An Examination of Selected Marketing Mix Elements and Brand Equity. Journal of the Academy of Marketing Science, 28(2), 195-211.

Yoon, S., & Park, J. E. (2018). Tests of In-Store Experience and Socially Embedded Measures as Predictors of Retail Store Loyalty. Journal of Retailing and Consumer Services, 45(11), 111-119.

Yuan, R., Liu, M. J., Luo, J., & Yen, D. A. (2016). Reciprocal Transfer of Brand Identity and Image Associations Arising from Higher Education Brand Extensions. Journal of Business Research, 69(8), 3069-3076.

Zarei, A., Feiz, D., & Moradi, H. (2020). Promoting Consumer Loyalty and Resilience to Negative Information Through Brand Identity Sub-Components: An Empirical Investigation in the Luxury Electronics Goods. Journal of Islamic Marketing, 12(9), 1820-1834.

Downloads

Published

2022-07-01

How to Cite

Ratasuk, A. (2022). Contributions of Product Quality, Service Quality, Store Ambiance, and Promotion on Customer Loyalty: The Mediating Role of Brand Identity in Convenience Store Coffee Chains in Bangkok. Journal of ASEAN PLUS Studies, 3(1), 11–28. Retrieved from https://so06.tci-thaijo.org/index.php/aseanplus/article/view/257327