Increasing Customer Loyalty Through Brand Image and Service Innovation with Brand Trust as an Intervening Variable at PT. Nasmoco Group

Abstract

This study aims to analyze the effect of Brand Image and Service Innovation on Customer Loyalty, both directly and indirectly, through Brand Trust as a mediating variable at PT Nasmoco Group. The background of this research is based on the intense competition in the automotive industry, which requires companies not only to excel in product quality but also to build a positive brand image, develop service innovations, and foster customer trust in order to achieve long-term loyalty. This research adopts a quantitative approach with a survey method. Data were collected using questionnaires distributed to PT Nasmoco Group customers who had previously purchased or serviced their vehicles. Measurements were conducted using a 1–10 Likert scale based on the indicators proposed by Biel (1992) for Brand Image, Den Hertog (2000) for Service Innovation, Mayer, Davis, &  hoorman (1995) for Brand Trust, and Zeithaml, Berry, & Parasuraman (1996) for Customer Loyalty. Data analysis employed Path Analysis using SPSS software.The results show that: (1) Brand Image has a positive and significant effect on both Brand Trust and Customer Loyalty; (2) Service Innovation has a positive and significant effect on both Brand Trust and Customer Loyalty; (3) Brand Trust has a positive and significant effect on Customer Loyalty; and (4) Brand Trust mediates the relationship between Brand Image and Customer Loyalty, as well as between Service Innovation and Customer Loyalty. The conclusion of this study is that a positive brand image and consistent service innovation will increase customer trust, which in turn strengthens their loyalty to PT Nasmoco Group. The practical implication of this study is the need for an integrated strategy that combines strengthening Brand Image and developing Service Innovation with a focus on building and maintaining Brand Trust to sustain and enhance Customer Loyalty.