Abstract :

Customer loyalty is a crucial factor for achieving long-term profitability by fostering strong relationships with customers. Loyal customer exhibit behaviors such as repeat purchases, willingness to recommend the company’s products, and resistance to competitor offerings. The level of satisfaction with the services provided by a company is initial predictor of customer loyalty behavior. Nestle Indonesia’s new strategy of opening online stores through major e-commerce platforms in Indonesia has increased opportunities for customers to access the company’s products. However, Nestle’s customers have faced issues in their online shopping experience due to a significant gap between their expectations and the actual performance of Nestle’s service quality. This study aims to examine the relationship between service quality, customer satisfaction, customer perception, and brand loyalty using a path analysis approach based on Partial Least Square (PLS). Data was collected by distributing questionnaires to 400 customers, determined using the Slovin formula. The sampling technique used for these 400 customers was purposive sampling. The results of this study indicate that Nestle’s service quality is perceived as suboptimal, particularly in terms of reliability and responsiveness. This has led to low customer satisfaction, poor customer perception of Nestle, and consequently low customer loyalty. The influence of service quality, customer satisfaction, and customer perception on customer loyalty is 90.9%, and customer perception shows as a mediating variable between service quality and brand loyalty.

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Keywords :

Brand Loyalty, Customer perception, Customer Satisfaction, Service Quality

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