THE FORMATION OF BRAND LOYALTY IN IDONESIAN RESTAURANT INDUSTRY

This study aimed to investigate the structure and dimensions of restaurant brand loyalty and determine its predictors. Partial Least Squares were applied in this study to analyse the data collected from one hundred and twenty respondents. Before testing the hypotheses, inner and outer model evaluations were performed and the results showed that the measures and model are robust. Hypotheses testings indicated that brand loyalty consists of both behavioural and attitudinal loyalty, in which the attitudinal loyalty is formed in a hierarchical structure with cognitive, affective, and conative which are recognised as primary dimensions. In addition, this study determined that customer satisfaction and brand experience are the predictors of attitudinal loyalty, while brand identity does not have any significant role in influencing loyalty. In terms of customer satisfaction, this study found that brand experience and brand identity play an important role in shaping customer satisfaction. This study contributes to both theoretical and practical perspective. For theoretical contribution, this study provides a comprehensive model to explain the structure and formation of Indonesian restaurant brand loyalty. In practical contribution, this study can represent the guidelines for restaurant managers in creating customer loyalty.