The Effect of the New Logo and Brand Image Towards the Customer Loyalty of Starbuck, Jakarta

The Effect of the New Logo and Brand Image Towards the Customer Loyalty of Starbuck, Jakarta

Author		: DINI TURIPANAM ALAMANDA; ARIF PARTONO PRASETIO; Dila Aprilia
Published on	: International Conference on Global Trends in Academic Research

Abstract

The changes in people’s lifestyles and the development of a coffee shop business happened rapidly. These affect the Starbucks to continuously transform their business to meet the customer???s needs. On March 2011, Starbucks launched their program with the introduction of a new logo to welcome the new era of Starbucks Corporation. The logo change led the protests from their fanatic customer. The protest not only happened in Indonesia but also worldwide. This negative perception can affect the Starbucks brand image and can lower the customer loyalty. Starbucks should communicate the logo changes as a new corporate identity so that the new brand image can be formed on the public perception. The research analyzed the response of Starbucks customers in Jakarta towards the new logo and brand image, and finally to determine how much the new logo and brand image Starbucks influence the Starbucks customer loyalty in Jakarta. The method used in the research was an explanatory survey method with 400 Starbucks customers in Jakarta as respondents. We analyzed the data using scoring technique to measure the response of the respondents. The Structural Equation Modeling used to describe the direct and indirect influence of the logos and brand image. The results showed that the customer perceived the new Starbucks logo as dissatisfactory (68%), the new Starbucks brand image perceived as in the high category (78.73%), and the Starbuck customer loyalty in Jakarta was at 77.8%. The logo changes positively affect the customer loyalty in the amount of 15.4% and the brand image positively affects the customer loyalty at 125.5%.