The Effect of Brand Image on Customer Loyalty: A Comparative Study of Modern and Conventional Pharmacies in Kendari
Keywords:
Brand Image, Conventional Pharmacy, Customer Loyalty, Modern PharmacyAbstract
Many pharmacies are opening up in Indonesia, especially in Kendari City. It makes competing harder, so it is even more important to have good branding strategies to keep customers returning. This study examines the impact of brand image on customer loyalty in two types of pharmacies: modern (K) and traditional (P). We employed the SmartPLS software to conduct Structural Equation Modelling-Partial Least Squares (SEM-PLS) to interpret the numerical data. There were 200 people in the study, 100 of whom were customers of P Pharmacy and 100 of whom were customers of K Pharmacy. The results show that how people feel about a brand significantly and positively affects how loyal customers are to both pharmacies. The path coefficient for K Pharmacy was 0.662, and the F-squared was 0.781, which means it had a significant effect. However, P Pharmacy had a path coefficient of 0.852 and an F-squared of 2.645, meaning it had an even bigger effect. The R-square study shows that 43.9% of the changes in customer loyalty are due to K Pharmacy's brand image, while 72.6% are due to P Pharmacy's brand image. These results show that P Pharmacy's branding strategies work better to make customers feel like they belong to the store and want to return. The survey says that pharmacies today should care more about the quality of their products and how their customers feel about them. On the other hand, traditional pharmacies should work on their business image and emotional ties to keep customers returning.
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