The effect of brand equity towards customer satisfaction on brand loyalty of zara brand in Surabaya

Budianto, Adrian Renaldi (2019) The effect of brand equity towards customer satisfaction on brand loyalty of zara brand in Surabaya. Bachelor thesis, Universtitas Pelita Harapan.

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Abstract

Starting from the need for fashion, one of the famous brands from Spain, namely Zara, is one of the fashion icons in the upper middle class. Although Zara's position still under well-known brands like Dolce & Gabana and LV, but Zara can position itself as a fashion icon that is has similar value compared with that two brands. This Spanish fashion brand also opened a branch in Indonesia since 2005 and its reputation is not doubt. Amancio Ortega Gaona is Zara’s founder and designer behind Zara's success. Ortega is positioned by the London Times at the top of the 25 most dynamic people in the fashion industry, opened the first Zara store in La Coruna in 1975. After more than three decades passed, Zara spread to 64 countries and had 3,000 outlets worldwide. Based on the report, Inditex is actually the holding company that manages Zara and seven other brands, until 2005 Zara's turnover was 8.7 billion dollars US. Nearly 60 percent of this value comes from outside sales Spanish. The purpose of this research is to reveal which factors between Product Quality, Staff Behavior, Self Congruence, Brand Identification, Lifestyle Congruence has the biggest effect on Brand Loyalty through Customer Satisfaction on Zara, which is aimed to use 6 variables to identify the Brand Loyalty. This study uses a quantitative approach to the analysis technique of IBM SPSS 22.0 software. The questionnaire distributed to 145 respondents in the sample in which the characteristics of respondents that consists of men and women in the age range 17-65 years, who had visited and purchased Zara product in the past 1 year. The sampling method used in this research that is non - probability sampling. Based on the result of linear regression, it shows that the effect of Customer Satisfaction on Brand Loyalty has the biggest effect which is 1.126. Then the second biggest effect is Staff Behavior on Customer Satisfaction of Zara which showed a significant positive result with the standardized coefficient beta of 0.237. The third biggest effect is Product Quality on Customer Satisfaction showed significant positive results with the standardized coefficient beta of 0.230. The fourth biggest effect is Life Style Congruence on Customer Satisfaction of Zara showed significant positive results with the standardized coefficient beta of 0.228. the fifth biggest effect is Brand Identification on Customer Satisfaction of Zara that showed a significant positive results with the standardized coefficient beta of 0.156. The last variable who has the least effect is Self Congruence which showed a insignificant positive result with the standardized coefficient beta of 0.112

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