American
Journal of Economic and Management Business
p-ISSN: XXXX-XXXX
e-ISSN: 2835-5199
Vol. 3 No. 7 July 2024
The Influence of Brand Image and Service Quality on
Customer Loyalty with Customer Satisfaction as a Mediation Variable
(Case Study: Scarlett Whitening Consumer in Malang
City)
Nor Nabila Syafikah1*, Nur Asnawi2
Maulana Malik Ibrahim State Islamic
University Malang, East Java, Indonesia1,2
Email: [email protected]1*,
[email protected]2
Abstract
In the modern era,
marketing has undergone significant developments. Maintaining a business in a
competitive environment poses challenges for business owners. Intense
competition often leads many to give up. However, by employing various
strategies to foster consumer loyalty, businesses can thrive amidst fierce
competition. This study aims to examine the influence of brand image and
service quality on customer loyalty, with customer satisfaction as a mediating
variable. Utilizing a quantitative research method with a descriptive approach,
the study surveyed 150 consumers of Scarlett Whitening in Malang City using
questionnaires distributed via Google Forms. Data were analyzed
using SmartPLS software version 4.0. The findings
indicate that brand image and customer satisfaction significantly impact
customer loyalty of Scarlett Whitening consumers in Malang City. Conversely,
service quality does not have a significant effect on customer loyalty.
Customer satisfaction mediates the relationship between service quality and
customer loyalty, but it does not mediate the relationship between brand image
and customer loyalty.
Keywords:
Brand Image, Service Quality, Customer
Satisfaction, Customer Loyalty.
INTRODUCTION
A
business or business needs to maintain a sense of loyalty that each of its
consumers has. Consumer Loyalty is a situation where consumers make repeated
purchases on a company or product consistently
Brand
Image itself can describe the nature of a product and can be seen and evaluated
by consumers even before the product is used
Brand
Image itself is said to be one of the factors that can form Customer Loyalty,
this is evidenced by research from Kittur and
Chatterjee
In
addition to Brand Image, there is also Service Quality which is one of the
shapers of Customer Loyalty, Juan and Yan Dalam
Service
Quality as one of the factors that form Customer Loyalty, this is evidenced
through research from Purnomo et al.
Customer
Satisfaction is also considered an attitude that can be known after consumers
have experience with a product or company, either after the consumer consumes
the product or service or even just on its service
Figure
1. Scarlett Whitening's Muri Record Reception
Source
: Antara, 2023
The aims of the
research are to investigate how Brand Image, Service Quality, and Customer
Satisfaction influence consumer loyalty, particularly for Scarlett Whitening
products. The researcher hopes the findings will provide valuable insights for
maintaining and enhancing consumer loyalty to Scarlett Whitening by focusing on
these key factors.
RESEARCH METHODS
This study uses a quantitative research method in
the form of descriptive, this aims to describe a phenomenon or event that is
factual, systematic, and accurate using concrete data. This is also justified
by Sugiyono
Research Location
In this study, the researcher chose a research
location in Malang City. This is determined because Malang City is the second
most populous city after Surabaya in East Java. In addition, the density of the
city of Malang is mostly filled by residents in the age range of 12 years to 30
years. Where, this age is a group of Scarlett Whitening's target market which
is in the age range of 12 years to 40 years. Therefore, the researcher chose
Malang City as the research location also in order to save the energy and time
of the limited researcher.
Population and Sample
In this study, the researcher used a probability
sampling technique and used simple random sampling. This is because this
research is conducted in a simple way and is carried out randomly without
looking at the strata in the population
Primary data is original data collected directly by researchers to
answer problems from research, usually in the form of interviews or filling out
questionnaires
Scarlett Whitening
Scarlett Whitening is a
local brand engaged in beauty care. Scarlett Whitening itself was founded in
2017 by an Indonesian celebrity, Felicya Angelista.
Scarlett Whitening products have been tested regularly to ensure that the
products are safe and free from compounds that have the potential to stimulate
sensitive reactions on the user's skin. Scarlett Whitening products are not
tested on animals, which proves that all Scarlett Whitening products have been
clinically tested. This can create confidence in its users that Scarlett
products are not harmful to their skin. Scarlett puts out a wide range of
beauty products that focus on brightening the skin. In addition, Scarlett also
focuses on maintaining the health of the skin of its users (Scarlett Whitening 2024b).
Figure
2. Felicya Angelista; Owner Scarlett Whitening
Source : Scarlett Whitening 2024
With the slogan "Reveal Your Beauty" which means "reveal your beauty", Scarlett Whitening invites and provides solutions to its users to increase their confidence and be more daring to express beauty in different versions (Scarlett Whitening 2024b). Scarlett Whitening products have also been tested and have gone through the certification process and passed the test at the Food and Drug Supervisory Agency (BPOM), halal certification, and dermatologically tested (Scarlett Whitening 2024b). Therefore, Scarlett Whitening products are guaranteed to be halal and safe, so that users do not feel hesitant and afraid when using the product. Scarlett Whitening has three types of products, namely body care, face care, hair care and the latest product launched by Scarlett, namely perfume.
Figure
3. Scarlett Products
Source : Scarlett Whitening 2024
Scarlett Whitening products contain glutathione
and vitamin E which are good for the skin to look brighter and healthier. This
Scarlett Whitening product is also said to be safe because it does not contain
harmful substances such as mercury and hydroquinine
which can cause the appearance of dark spots on the skin, allergies, irritation
and so on. Therefore, this product is still safe if used by pregnant women or
breastfeeding mothers
Gender of
Respondents
The gender needed in this study is two types,
namely women and men. The Scarlett Whitening consumers who live in the city of
Malang are presented as follows:
Table 1.
Gender of Respondents
Gender |
Sum |
Percentage |
Woman |
122 |
81,3% |
Man |
28 |
18,7% |
Total |
150 |
100% |
Source : data processed by researchers, 2024
Based on the data in table 1. It can be seen
that the gender distribution in this study shows that there are as many as 122
or equal to 81.3% of respondents who are female. Meanwhile, as many as 28 oor equal to 18.7% are respondents with a male gender.
Through these results, it can be concluded that Sacrlett
Whitening users in Malang City are more dominant in female users than men.
Age of
Respondents
The age criteria of the respondents needed by
the researcher are at the minimum age limit of 17 years to the maximum limit at
the age of 35 years. The data of Scarlett Whitening consumers domiciled in
Malang City by age is presented as follows:
Table 2.
Age of Respondents
Age |
Sum |
Percentage |
17-21 Years |
46 |
30,7% |
22-26 Years |
79 |
52,7% |
27-31 Years |
20 |
13,3% |
32-35 Years |
5 |
3,3% |
Total |
150 |
100% |
Source : data processed by researchers, 2024
Table 2. showed the age distribution of respondents who included
Scarlett Whitening consumers who were domiciled in Malang City. A total of 79
respondents or equal to 52.7% are in the age group of 22-26 years. Meanwhile,
the second age group with the most number of 46 or equal to 30.7% is in the age
group of 17-21 years. The respondents as many as 20 or equal to 13.3% are in
the age group of 27-31 years, and the last age group with the least number and
percentage level is the age group of 32-35 years with a number of 5 or equal to
3.3% of the total. Therefore, it can be concluded that users of Scarlett
Whitening products are dominant in the age group of 17 years to 26 years.
Domicile
In this study, the selected area is the city of
Malang with six sub-districts, namely Dinoyo, Lowokwaru, Klojen, Blimbing, Sukun and Kedungkandang. The distribution results from the domicile
area are as follows:
Table 3.
Domicile
Domicile |
Sum |
Percentage |
Dinoyo |
34 |
22,7% |
Lowokwaru |
35 |
23,3% |
Klojen |
20 |
13,3% |
Blimbing |
20 |
13,3% |
Breadfruit |
21 |
14% |
Kedungcage |
20 |
13,3% |
Total |
150 |
100% |
Source : data processed by researchers, 2024
Based on table 4.3 presented above, of the six sub-districts that were used
as the research site, there were Dinoyo and Lowokwaru areas with a difference of 1%, namely with
details of Dinoyo as many as 34 people or equal to
22.7% while Lowokwaru with 35 people or equal to
23.3%. There are three sub-districts with the same number, namely 20 or equal
to 13.3% which occur in Klojen, Blimbing,
and also Kedungkandang. Meanwhile, Sukun has a difference of 1% more than the three
sub-districts that have the same number, namely with 21 people or equal to 14%
of the percentage.
The
Influence of Brand Image on Customer Loyalty
Brand Image has a direct influence on Customer Loyalty. The results of this
variable test show an original sample value of 0.236 with a t-statistical value
of 2.230 which is greater than 1.96. Meanwhile, the p- value in the results of
this test is 0.026. These results show that the relationship between Brand
Image and Customer Loyalty has a direct and significant influence. The story of
this study is in line with the theory of
The
Influence of Brand Image on Customer Satisfaction
Brand Image has a direct influence on Customer Satisfaction. This is
evidenced by the results of the original sample of 0.280 with a t-statistic of
2.230 which is a value greater than 1.96. Meanwhile, the p-value yields a
number of 0.026 which meets the criteria less than 0.05. Therefore, the results
of testing this hypothesis are said to be significant. So it can be concluded
that Brand Image significantly affects Customer Satisfaction. This is in line
with previous research conducted by Welsa, Cahyani, and Riyana
The
Influence of Service Quality on Customer Loyalty
Service Quality has no direct effect on customer loyalty. With an original
sample value of -0.19 with a t-statistic of 1.311 which is a smaller number
than 1.96. Then the p-value shows a value of 0.190 which is a number greater
than 0.05. In this case, the results show that there is no significant
influence between Service Quality and Customer Loyalty. This is contrary to the
theory put forward by Agung Wicaksono
The
Effect of Service Quality on Customer Satisfaction
Service Quality has a significant influence on Customer Satisfaction. This
is shown by the results of the original sample of 0.519 with a t-statistical
value of 4.585 which means greater than 1.96. Then the p-value is 0.000 which
is smaller than 0.05. Therefore, the results of this test are declared
significant and accepted because they are in accordance with the existing
criteria. The results of this study are in line with research conducted by
Antara and Rastini
The
Effect of Customer Satisfaction on Customer Loyalty
Customer Satisfaction significantly affects Customer Loyalty. This is shown
by the results of the original sample of 0.782 with a t-statistic of 8.661
which is greater than 1.96. The value of the p-value of 0.000 is smaller than
0.05. Therefore, it can be stated that Customer Satisfaction has a significant
effect on Customer Loyalty. The results of this study are in line with the fact
that the factor that forms customer loyalty in addition to brand image and
service quality is customer satisfaction
The
Influence of Brand Image on Customer Loyalty with Customer Satisfaction as a
Mediation Variable
In order to answer the research question and also the hypothesis that
customer satisfaction can act as a mediator between brand image and customer
loyalty, research on how brand image affects customer loyalty by being mediated
by customer satisfaction has been conducted. In this study, the test produced
an original sample of 0.219 with a t-statistic of 1.824 which is a lower number
than 1.96. Then the resulting p-value is 0.068 which is also a value greater
than 0.05. So with these results, it can be stated that customer satisfaction
is not successful in mediating the relationship between brand image and
customer loyalty. Although brand image significantly affects customer loyalty
directly, the results of the mediation test between the three variables prove
that mediation is not successful. Then it can be concluded that brand image can
affect customer loyalty without the need to be mediated by customer
satisfaction.
The
Effect of Service Quality on Customer Loyalty with Customer Satisfaction as a
Mediation Variable
To answer the questions asked previously and answer the hypothesis in this
study regarding customer satisfaction which has succeeded in becoming a
mediator for the relationship between service quality and customer loyalty.
After testing in this study, it was found that the results of the original
sample was 0.405 with a t-statistic of 4.078 which was in accordance with the
criteria, which was greater than 1.96. And there is also a p-value of 0.000
which is also in accordance with the criteria of the mediation test, which is
smaller than 0.05. In this case, it can be concluded and stated that customer
satisfaction has succeeded in becoming a mediator for the relationship between
service quality and customer loyalty.
The results of this study are in line with previous research conducted by
Agarwal and Dhingra (2023) and
CONCLUSION
The results of this study show that Brand Image has a significant effect on Customer Loyalty in Scarlett Whitening products. Every change in the brand image is stated to increase customer loyalty with a significance value that meets the criteria (< 0.05). This study shows that Service Quality does not have a significant effect on Customer Loyalty. This can be seen in the results of the significance test that was carried out not in accordance with the required criteria (> 0.05). The results of this study show that Brand Image has a significant influence on Customer Satisfaction. This is evidenced by the significance test value that is in accordance with the requirements (< 0.05). This study also shows that Service Quality has a significant effect on Customer Satisfaction. This is evidenced by the value of the hypothesis test results that are in accordance with the conditions (< 0.05). The results of the relationship between Customer Satisfaction and Customer Loyalty are stated to have a significant effect. With the value of the test results in accordance with the provisions (< 0.05), this significant result was declared.
The mediation role of
Customer Satisfaction on the influence of Brand Image on Customer Loyalty shows
an insignificant mediation role. This is shown by results that do not match the
significance criteria of the mediation test. The mediation role of Customer
Satisfaction on the influence of Service Quality on Customer Loyalty shows a
significant mediation role. Customer Satsifaction has
succeeded directly in connecting service quality with customer loyalty.
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Copyright holders:
Nor Nabila Syafikah, Nur Asnawi (2024)
First publication right:
AJEMB – American Journal of Economic
and Management Business