Factors Influencing Customer Loyalty on A&W Customers in Jakarta

Abstract

Purpose: The purpose of this study is to determine the effect of price, service quality, food quality, physical environment and customer satisfaction on customer loyalty of A&W customers in Jakarta. Design/methodology/approach: The research design used in this research is descriptive research and causal research. Questionnaires were distributed as an effort to collect data using a 5-point Likert scale to measure variables. The research sample was obtained through a purposive sampling method of 200 respondents. This study used the Structural Equation Modeling (SEM) method with SmartPLS 4.0 as a test tool. Findings: The results of this study indicate that price, service quality, food quality, and physical environment have an effect on customer satisfaction of A&W customers in Jakarta. In addition, customer satisfaction has an effect on customer loyalty of A&W customers in Jakarta. Research limitations/implications: This research only focuses on one object of a fast food restaurant (A&W fast food restaurant); taking a limited number of research samples from A&W fast food restaurant customers in the Jakarta area due to time and cost constraints; and only focuses on the effect of price, service quality, food quality, physical environment and customer satisfaction on customer loyalty. Practical implications: Fast food restaurants can consider the results of this study to ensure and evaluate customer satisfaction and customer loyalty from their fast food restaurants. Thus, when customers are loyal, fast food restaurants can retain their customers and develop their business better in the future. Originality/value: This study will provide a reference for evaluating the business strategy of fast food restaurants related to price, service quality, food quality, physical environment and customer satisfaction in increasing customer loyalty and outperforming its competitors. Paper type: Research paper.