ANALYZING THE INFLUENCE OF CUSTOMER SATISFACTION AS A MEDIATING VARIABLE ON A LOCAL LUXURY MUSLIM BRAND TOWARD BRAND LOYALTY
Ladya Lutfia Qurratuain Giffari (a), Nurrani Kusumawati (b)

(a)(b) Institut Teknologi Bandung

Abstract

The luxury goods industry has garnered global attention as a symbol of status and pride in people^s lives. This is particularly evident in the Asia-Pacific region, which boasts the largest consumer base for personal luxury goods. To capitalize on this immense opportunity, numerous prominent fashion houses are striving to establish their presence in the region. Indonesia, in particular, has witnessed significant growth in luxury goods consumption among the upper-middle-class segment. Several Muslim local brands have entered the market, offering luxurious and exclusive products characterized by high-quality fabrics and premium pricing, similar to established luxury brands. However, dissatisfaction among customers regarding the quality of these Muslim local brand products has emerged as a concern. Such dissatisfaction jeopardizes the brand^s public image and impacts brand loyalty. Consequently, this study explores the relationship between brand image, customers perceived value, customers perceived quality, and brand loyalty, with customer satisfaction as the mediating variable. Through a survey targeting Muslim wear consumers, data was analyzed using PLS-SEM. Remarkably, the research reveals that brand image significantly influences brand loyalty, even when customers are dissatisfied. Therefore, it is recommended that Muslim wear brands strengthen their brand image in alignment with the desired values they seek to represent.

Keywords: brand loyalty, customer satisfaction, luxury brand, Muslim fashion, PLS-SEM

Topic: Marketing