Building Loyalty in Organic Restaurants among Indonesian Gen Z: The Interplay of Brand Image, Service Quality, and Self-Congruity via Customer Satisfaction

Abstract

This study aims to examine the influence of Brand Image, Service Quality, and Self-Congruity on Customer Loyalty, with Customer Satisfaction serving as a mediating variable, specifically within the context of organic restaurants. As consumer awareness and preferences shift toward healthier and more sustainable dining options, understanding the factors that drive customer loyalty becomes increasingly important for organic food businesses. A quantitative research design was employed, utilizing a non-probability convenience sampling technique. Data were collected through a structured questionnaire distributed to a total of 267 respondents who had prior experience dining at organic restaurants. The data collected were then analyzed using SmartPLS 3.0, a statistical software based on Partial Least Squares Structural Equation Modeling (PLS-SEM), which is well-suited for exploring complex relationships among latent variables. The study tested three hypotheses concerning the direct and indirect effects of the independent variables on customer loyalty through the mediating role of customer satisfaction. The findings indicate that Service Quality and Self-Congruity have positive and significant effects on Customer Loyalty, and that these relationships are mediated by Customer Satisfaction. This suggests that customers who perceive high service quality and feel a personal alignment with the brand are more likely to be satisfied and, in turn, more loyal. However, the hypothesis related to Brand Image did not receive statistical support, indicating that in the context of organic restaurants, brand image alone may not be sufficient to drive loyalty unless it is supported by quality service and self-congruity. Overall, the results highlight the critical role of Customer Satisfaction as a mediating factor in building long-term loyalty among organic restaurant customers. These insights can help organic restaurant managers and marketers focus on enhancing service experiences and fostering a brand identity that aligns with their target customers’ self-image.