How Corporate Social Responsibility Practices Affect Brand Loyalty Through Perceived Ethicality in Corporate Services Brands - A Study on Coffee Shop Retails in Indonesia
With almost 3000 coffee shop retailers and the long supply chain of the sector, coffee in Indonesia are subject to ethicality and sustainability issues. The trends in the sector and the changing consumer behaviors are seen by marketers as an opportunity to capture more consumers with the use of ethical or CSR (Corporate Social Responsibility) practices. This creates a variety of practices done by corporation that often leaves close to zero effect on consumers, or those practices are not as expected in the consumer’s mind. Conducting the right and appropriate ethical practices is the key to attract consumers, and retain them through brand loyalty. This study aims to analyze the effect CSR and ethical practices have on creating brand loyalty in the coffee shop retail sector in Indonesia. The research utilized a secondary qualitative research and collect data from reliable sources. This study finds that ethical or CSR practices have a significant positive effect on brand loyalty, and these practices can be done in Indonesia. This study has also identified the key factors that would influence brand loyalty in this sector, namely, customer satisfaction, product quality, service quality, and consumer’s perceived ethicality. With these in mind, companies might be able to succeed in the sector.
Keywords - Brand Loyalty, Coffee, Coffee Shop Retail, Corporate Social Responsibility, Ethics.