THE EFFECT OF BRAND EQUITY TOWARDS CUSTOMER LOYALTY IN FAST FOOD RESTAURANTS OF INDONESIA. CUSTOMER SATISFACTION AS MEDIATOR

The purpose of this study is to investigate the relationship between the role of brand equity towards customer loyalty in the fast food industry. Customer satisfaction being used as a control variable in between the relationship of both brand equity and customer loyalty. This study is used a quantitative method thus it uses a questionnaire survey form to collect data from respondents. This study used a convenience sampling technique where data were collected and administered by the respondents who visited the fact food restaurants during specific time at various days in a month that being selected. Altogether the data collections took 14 days to complete. A total of 700 questionnaires were distributed and 565 were returned (81 percent response rate). Data analysis were done using the structural equation modelling. The results indicate that relationship between brand equity towards customer loyalty is higher than the indirect relationship between the brand equity towards customer satisfaction and customer satisfaction towards customer loyalty. The findings invite new normal in the customer satisfaction and customer loyalty areas as there must be a strong reason behind the services that strengthening the direct roles rather than a common practice where customer satisfaction as mediator.