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ANALYSIS OF BRAND EXPERIENCE, BRAND LOVE AND; BRAND
LOYALTY TO WILLINGNESS TO PAY PREMIUM PRICE TO STARBUCKS
INDONESIA CONSUMERS IN JAKARTA
Syifa Ni’matun Nida
1*
, I Made Sukresna
2
Faculty of Economic and Business, Diponegoro University, Indonesia
1,2
syifanimatunn@gmail.com
1
ABSTRACT
This study was conducted with the aim to analyze the factors that influence brand loyalty and willingness
to pay premium price in Starbucks Indonesia consumers in Jakarta. The development of consumer
relationships with brands has become a focus for every business. Through brand-related communication,
the brand acts as a system that engages buyers and sellers. Not only limited to the relationship between
consumers and brands, but also related to greater sales, price vulnerabilities, better loyalty, and higher
margins. SEM (Structural Equation Modeling) analysis was used as a data analysis method in this study.
The research model used in this study is second order. The use of SEM with PLS (Partial Least Square)
approach was chosen because it can be used effectively with small sample sizes and complex models
The sample of this study amounted to 114 Indonesian Starbuks consumers in Jakarta. The results showed
that brand experience has a positive and significant effect on brand love, brand experience has a positive
and significant effect on brand loyalty, brand love does not have a significant effect on willingness to
pay premium price, love for brand has a positive and significant effect on brand loyalty, brand experience
does not have a significant effect on brand loyalty.Willingness to pay premium price, as well as brand
loyalty have a positive and significant effect on willingness to pay premium price.
Keywords: Brand Experience, Brand Love, Brand Loyalty, Willingness To Pay Premium Price
INTRODUCTION
The development of relationships between consumers and brands has become a focus for
every business actor (Ford & Håkansson, 2013). Through brand-related communication, the brand
acts as a mechanism that engages buyers and sellers. Not only limited to the relationship between
consumers and brands, but also related to greater sales, price vulnerabilities, better loyalty, and
higher margins.
Starbucks is becoming the most recognizable international coffee shop brand and has taken
the coffee industry by storm and changed the dynamism of coffee shops. Starbucks claims to be
a brand that sells lifestyle by prioritizing experience above all other aspects (Michelli, 2007).
Starbucks is positioning itself as "the retail coffee experience" by making outlets the third place
(after home and office) that everyone goes to (Nurcholis, 2023).
The experience involves aroma, tranquility, affordable luxury, a sense of sociality, and
some of the self-expression benefits of the enjoyment of coffee. This is also evidenced by
Starbucks Indonesia's victory of 2 (two) awards obtained from the Experiential Marketing
category (experience-based marketing) and 3 (three) awards from other categories at the
"Marketing Excellence Awards 2022" organized by Marketing-Interactive Asia (Haig-Ferguson
et al., 2019).
Starbucks has also become a brand adept at setting value-based prices to maximize profits
by formulating price increases using consumer research and analysis aimed at getting the largest
amount consumers are willing to pay. Profit maximization is a process for a company to determine
the price and amount of output with the aim of generating the most profit. Companies are
interested in a very high market because in that market there are categories of interest and vitality
(David, 2004). It can also create a more loyal consumer base, by directly targeting consumers
who have a willingness to pay premium prices.
Companies are willing to invest in premium markets because too often their core business
faces pressure on its prices and margins. At the same time, margins in premium sectors where
there is real innovation, differentiation and energy can be astounding. Accessing these margin
sources is often more than just interesting, it can be imperative. Brand experience (Brand
Analysis Of Brand Experience, Brand Love And; Brand Loyalty To Willingness To Pay Premium Price To
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Experience) and brand love (Brand Love) are two factors that can play a role in premium brand
consumption. After all, consumers tend to develop greater love in hedonic product categories than
in utilitarian product categories (Carroll & Ahuvia, 2006). Consumers seek functional benefits but
also focus on the brand's inherent experience (Singh et al., 2021).
Previous research has been conducted by (Santos & Schlesinger, 2021), testing four brand
variables in the same model in the context of television streaming novels and with leading creator
brands such as Netflix. The results showed that Brand Experience and Brand Love have a
significant direct influence on Brand Loyalty and willingness to pay premium prices in streaming
TV services. In addition, the influence of brand experience on brand loyalty and willingness to
pay premium prices is partly mediated by a love of the brand.
Studies conducted (Dwivedi et al., 2018) develop and empirically validate conceptual
models that investigate how brand experience can influence consumers' willingness to pay (WTP)
at a premium, as mediated by brand credibility and perceived uniqueness. Based on data collected
from 405 new car buyers, the analysis revealed that brand experience influences consumers' WTP
at a premium price directly or indirectly through brand credibility and perceived uniqueness
(Dwivedi et al., 2018).
To support the research problem, based on the results of pre-survey interviews conducted
by researchers to 5 (five) Starbucks Indonesia consumers that have been conducted, it is known
that the five Starbucks consumers have loyalty, emotional connection, and even commitment to
the Starbucks brand. This is supported by the results of interviews that show that the five
consumers stay with the brand in a matter of months and even years. Consumers also register
themselves as Starbucks members to get rewards or levels. All five consumers also said they could
visit or buy Starbucks products on a recurring basis even more than 10 times a year.
One interesting phenomenon, although the income of the five consumers varies from
income below UMR to far above UMR stated that Starbucks prices are fairly expensive when
compared to other coffee brands. However, most said they would stick to the Starbucks brand and
a small percentage would look for other options but would buy Starbucks. Some consumers also
complained about inconsistent concoctions of beverage products and the cleanliness of shop
facilities such as toilets.
The increase in coffee shop establishments makes this industry have to survive with very
fierce competition, the ability of coffee shops to retain consumers by prioritizing consumer
experience is important. A statement that requires further exploration. Focusing on dynamic
coffee brands, researchers made Starbucks the locus of research because the brand is a well-
known brand that serves as a role model for the coffee shop industry. This research study is a
researcher's attempt to examine the influence of brand experience on brand love, brand loyalty,
and willingness to pay premium price in the coffee shop industry.
RESEARCH METHOD
SEM (Structural Equation Modeling) analysis was used as a data analysis method in this
study. The use of SEM with PLS approach was chosen because it can be used effectively with
small sample sizes and complex models (Hair et al, 2017). The research model used in this study
is second order. SEM analysis has two stages, namely measurement model analysis (outer model)
and structural model analysis (inner model). Analysis of measurement models includes validity
tests and reliability tests. While structural model analysis includes structural model tests related
to relationships between variables (Hair et al, 2017). In this study, the selected population was
Starbucks consumers with a total of 114 people. The sample that will be used as respondents is
Starbucks consumers with criteria:
1. Make a purchase at least 2 times
2. Minimum age of 15 years (already working or having worked)
3. Have your own income.
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RESULT AND DISCUSSION
Measurement Model Analysis (Outer Model)
Convergent Validity Test
To meet convergent validity, the outer loading value > 0.7 and the AVE (Average Variance
Extracted) value > 0.5 (Hair et al, 2017). The outer loading values can be seen in Table 1 and
Table 2 below.
Table 1 Outer Loading (First Order)
Outer loadings
Information
AF1
0,829
Valid
AF2
0,829
Valid
AF3
0,831
Valid
AF4
0,858
Valid
AT1
0,837
Valid
AT2
0,871
Valid
AT3
0,886
Valid
B1
0,884
Valid
B2
0,805
Valid
B3
0,896
Valid
B4
0,921
Valid
PA1
0,832
Valid
PA2
0,867
Valid
PA3
0,843
Valid
PAS1
0,807
Valid
PAS2
0,862
Valid
PAS3
0,811
Valid
PAS4
0,794
Valid
PAS5
0,729
Valid
PAS6
0,846
Valid
PI1
0,864
Valid
PI2
0,802
Valid
PI3
0,899
Valid
PP1
0,805
Valid
PP2
0,772
Valid
PP3
0,860
Valid
PS1
0,767
Valid
PS2
0,820
Valid
PS3
0,841
Valid
WTPP1
0,893
Valid
WTPP2
0,845
Valid
WTPP3
0,938
Valid
Source: processed research data (2023)
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Table 2 Outer Loading (Second Order)
Brand Love
Brand
Loyalty
Brand
Experience
WTPP
Information
Afektif
0,894
Valid
Affection
0,944
Valid
Attitudinal
0,963
Valid
Behavioural
0,968
Valid
Intelektual
0,888
Valid
Passion
0,919
Valid
Behaviour
0,774
Valid
Sensors
0,828
Valid
WTPP1
0,893
Valid
WTPP2
0,845
Valid
WTPP3
0,938
Valid
Source: processed research data (2023)
Based on Table 1 and Table 2, the outer loading value of all indicators > 0.7, so the data
is said to meet the first condition of convergent validity. While the AVE value can be seen in
Table 3 and 4.
Table 3 Nilai Average Variance Extracted (First Order)
Average variance extracted (AVE)
Afektif
0,718
Affection
0,700
Attitudinal
0,748
Behavioural
0,770
Intelektual
0,732
Passion
0,655
Behaviour
0,661
Sensors
0,656
WTPP
0,797
Source: processed research data (2023)
Table 4 Nilai Average Variance Extracted (Second Order)
Average variance extracted (AVE)
Brand Love
0,867
Brand Loyalty
0,932
Brand Experience
0,718
WTPP
0,797
Source: processed research data (2023)
Based on Table 3 and Table 4 it is known that all AVE values > 0.5, so the data meet the
second requirement of convergent validity. With the fulfillment of these two conditions, the data
is declared to meet convergent validity.
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Discriminant Validity Test
Hair et al (2017) Explains that a construct can be said to pass the discriminant validity test if it
has greater loading values of the construct itself compared to other constructs. The validity of the
discriminant will be seen when the AVE value can describe its own construct.
Table 5 Square Root Value Average Variance Extracted (First Order)
Afektif
Affection
Attitudinal
Behavioural
Intelektual
Passion
Perilaku
Sensorik
WTPP
Afektif
0,847
Affection
0,748
0,837
Attitudinal
0,683
0,708
0,865
Behavioural
0,699
0,753
0,864
0,877
Intelektual
0,763
0,792
0,690
0,688
0,856
Passion
0,613
0,736
0,602
0,669
0,589
0,809
Perilaku
0,568
0,641
0,638
0,718
0,536
0,527
0,813
Sensorik
0,673
0,563
0,599
0,591
0,692
0,368
0,501
0,810
WTPP
0,586
0,611
0,694
0,755
0,552
0,554
0,610
0,461
0,893
Source: processed research data (2023)
Table 6 Square Root Value Average Variance Extracted (Second Order)
Brand Love
Brand Loyalty
Brand
Experience
WTPP
Brand Love
0,931
Brand Loyalty
0,765
0,965
Brand Experience
0,785
0,815
0,847
WTPP
0,628
0,752
0,657
0,893
Source: processed research data (2023)
Table 5 and Table 6 show that the AVE square value for each variable is greater than the
correlation value of other variables. This study also used cross loading values to see the validity
of discrimination. The results of the cross loading calculation can be seen in Table 7.
Table 7 Cross Loading (First Order)
Afektif
Affection
Attitudinal
Behavioural
Intelectual
Passion
Behaviour
Sensorik
WTPP
AF1
0,687
0,829
0,707
0,683
0,746
0,565
0,446
0,536
0,507
AF1
0,687
0,829
0,707
0,683
0,746
0,565
0,446
0,536
0,507
AF2
0,658
0,829
0,568
0,608
0,655
0,612
0,563
0,446
0,454
AF2
0,658
0,829
0,568
0,608
0,655
0,612
0,563
0,446
0,454
AF3
0,583
0,831
0,495
0,577
0,641
0,574
0,539
0,406
0,547
AF3
0,583
0,831
0,495
0,577
0,641
0,574
0,539
0,406
0,547
AF4
0,579
0,858
0,602
0,653
0,616
0,704
0,589
0,496
0,537
AF4
0,579
0,858
0,602
0,653
0,616
0,704
0,589
0,496
0,537
AT1
0,624
0,596
0,837
0,770
0,570
0,621
0,555
0,453
0,598
AT1
0,624
0,596
0,837
0,770
0,570
0,621
0,555
0,453
0,598
AT2
0,572
0,610
0,871
0,694
0,615
0,463
0,514
0,547
0,603
AT2
0,572
0,610
0,871
0,694
0,615
0,463
0,514
0,547
0,603
AT3
0,575
0,632
0,886
0,775
0,606
0,477
0,585
0,555
0,599
AT3
0,575
0,632
0,886
0,775
0,606
0,477
0,585
0,555
0,599
B1
0,622
0,696
0,795
0,884
0,611
0,670
0,556
0,511
0,676
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B1
0,622
0,696
0,795
0,884
0,611
0,670
0,556
0,511
0,676
B2
0,581
0,703
0,632
0,805
0,572
0,701
0,653
0,411
0,594
B2
0,581
0,703
0,632
0,805
0,572
0,701
0,653
0,411
0,594
B3
0,621
0,612
0,779
0,896
0,598
0,487
0,644
0,566
0,677
B3
0,621
0,612
0,779
0,896
0,598
0,487
0,644
0,566
0,677
B4
0,628
0,644
0,813
0,921
0,631
0,513
0,674
0,574
0,699
B4
0,628
0,644
0,813
0,921
0,631
0,513
0,674
0,574
0,699
PA1
0,832
0,719
0,582
0,652
0,627
0,537
0,585
0,602
0,507
PA1
0,832
0,719
0,582
0,652
0,627
0,537
0,585
0,602
0,507
PA2
0,867
0,604
0,567
0,573
0,614
0,506
0,481
0,532
0,494
PA2
0,867
0,604
0,567
0,573
0,614
0,506
0,481
0,532
0,494
PA3
0,843
0,572
0,585
0,547
0,698
0,514
0,373
0,574
0,488
PA3
0,843
0,572
0,585
0,547
0,698
0,514
0,373
0,574
0,488
PAS1
0,608
0,604
0,565
0,592
0,597
0,807
0,433
0,422
0,454
PAS1
0,608
0,604
0,565
0,592
0,597
0,807
0,433
0,422
0,454
PAS2
0,451
0,661
0,437
0,509
0,499
0,862
0,490
0,200
0,437
PAS2
0,451
0,661
0,437
0,509
0,499
0,862
0,490
0,200
0,437
PAS3
0,529
0,537
0,441
0,487
0,473
0,811
0,289
0,303
0,423
PAS3
0,529
0,537
0,441
0,487
0,473
0,811
0,289
0,303
0,423
PAS4
0,408
0,523
0,357
0,408
0,359
0,794
0,371
0,188
0,314
PAS4
0,408
0,523
0,357
0,408
0,359
0,794
0,371
0,188
0,314
PAS5
0,504
0,614
0,632
0,686
0,486
0,729
0,522
0,375
0,614
PAS5
0,504
0,614
0,632
0,686
0,486
0,729
0,522
0,375
0,614
PAS6
0,479
0,625
0,491
0,566
0,438
0,846
0,444
0,302
0,448
PAS6
0,479
0,625
0,491
0,566
0,438
0,846
0,444
0,302
0,448
PI1
0,638
0,613
0,644
0,618
0,864
0,406
0,455
0,654
0,533
PI1
0,638
0,613
0,644
0,618
0,864
0,406
0,455
0,654
0,533
PI2
0,673
0,749
0,502
0,552
0,802
0,642
0,479
0,494
0,412
PI2
0,673
0,749
0,502
0,552
0,802
0,642
0,479
0,494
0,412
PI3
0,649
0,677
0,620
0,594
0,899
0,472
0,446
0,623
0,469
PI3
0,649
0,677
0,620
0,594
0,899
0,472
0,446
0,623
0,469
PP1
0,425
0,463
0,560
0,564
0,407
0,331
0,805
0,401
0,449
PP1
0,425
0,463
0,560
0,564
0,407
0,331
0,805
0,401
0,449
PP2
0,479
0,520
0,489
0,588
0,453
0,427
0,772
0,449
0,450
PP2
0,479
0,520
0,489
0,588
0,453
0,427
0,772
0,449
0,450
PP3
0,479
0,575
0,508
0,598
0,447
0,521
0,860
0,373
0,585
PP3
0,479
0,575
0,508
0,598
0,447
0,521
0,860
0,373
0,585
PS1
0,450
0,417
0,487
0,462
0,523
0,210
0,302
0,767
0,395
PS1
0,450
0,417
0,487
0,462
0,523
0,210
0,302
0,767
0,395
PS2
0,574
0,575
0,426
0,473
0,580
0,404
0,469
0,820
0,306
PS2
0,574
0,575
0,426
0,473
0,580
0,404
0,469
0,820
0,306
PS3
0,598
0,373
0,546
0,501
0,575
0,267
0,433
0,841
0,426
PS3
0,598
0,373
0,546
0,501
0,575
0,267
0,433
0,841
0,426
WTPP1
0,516
0,546
0,612
0,658
0,508
0,493
0,519
0,418
0,893
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WTPP2
0,479
0,476
0,514
0,603
0,455
0,498
0,540
0,400
0,845
WTPP3
0,569
0,605
0,714
0,751
0,513
0,497
0,575
0,419
0,938
Source: processed research data (2023)
Table 8 Cross Loading (Second Order)
Brand Love
Brand Loyalty
Brand Experience
WTPP
Afektif
0,736
0,716
0,894
0,586
Affection
0,944
0,758
0,818
0,611
Attitudinal
0,708
0,963
0,773
0,694
Behavioural
0,767
0,968
0,800
0,756
Intellectual
0,750
0,714
0,888
0,552
Passion
0,919
0,660
0,629
0,554
Behaviour
0,631
0,704
0,774
0,610
Sensors
0,509
0,616
0,828
0,461
WTPP1
0,560
0,659
0,583
0,893
WTPP2
0,521
0,580
0,556
0,845
WTPP3
0,596
0,760
0,618
0,938
Source: processed research data (2023)
Based on Table 7 and Table 8 it can be seen that the resulting cross loading value
consistently produces a higher value than the loading factor value produced by the same
statement item on another variable, therefore it can be interpreted that the data meets the
discriminatory validity.
Reliability Test
Reliability tests in this study used Cronbach's alpha and composite reliability. A good
Cronbach's alpha value is recommended to reach 0.7 or more than 0.7. The closer the number 1
is, the better. Meanwhile, the required composite reliability value is at least 0.7. The results of
reliability tests in this study are shown in Table 9 and Table 10.
Table 9 Reliability Test (First Order)
Cronbach's alpha
Composite reliability
Information
Afektif
0,804
0,884
Reliable
Affection
0,857
0,903
Reliable
Attitudinal
0,832
0,899
Reliable
Behavioural
0,900
0,930
Reliable
Intellectual property
0,816
0,891
Reliable
Passion
0,894
0,919
Reliable
Behaviour
0,743
0,854
Reliable
Sensors
0,738
0,851
Reliable
WTPP
0,872
0,922
Reliable
Source: processed research data (2023)
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Table 10 Reliability Test (Second Order)
Cronbach's alpha
Composite reliability
Keterangan
Brand Love
0,848
0,929
Reliable
Brand Loyalty
0,927
0,965
Reliable
Brand Experience
0,868
0,910
Reliable
WTPP
0,872
0,922
Reliable
Source: processed research data (2023)
Tables 9 and 10 show variable gauges having Cronbach's alpha and composite
reliability values > 0.7. So it is concluded that all measuring instruments of this research
have good reliability.
Multicollinearity test
The multicollinearity test can be known by looking at the magnitude of the correlation
coefficient between independent variables, namely based on the value of VIF (Variance Inflation
Factor). Data is declared free of multicollinearity if the VIF value < 5 (Hair et al, 2017). The
results of the multicollinearity test in this study are shown in the following Table 11.
Table 11 Multicollinearity Test
Brand
Experience
Brand Love
Brand
Loyalty
WTP
P
Brand Experience
1,000
2,604
3,665
Brand Love
2,604
2,964
Brand Loyalty
3,392
WTPP
Source: processed research data (2023)
Based on Table 11, it can be seen that the VIF value between variables < 5 means that there is no
multicollinearity in this study.
Structural Model Analysis (Inner Model)
Model Conformity Test
The model suitability test in this study shows how well the hypothesized model structure
against empirical data. The model suitability test in this study used NFI (Normed Fit Index) values
and SRMR (Standardized Root Mean Square Residual) values. The results of the model
conformity test are shown in Table 12.
Table 12 Model Conformity Test
Saturated model
SRMR
0,068
d_ULS
0,309
d_G
0,304
Chi-square
201,414
NFI
0,816
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Source: processed research data (2023)
Table 12 shows that the NFI value is 0.816 which is close to number 1, meaning that the
model fit value in this study is 86.1%. To make up for the lack of expected NFI value of > 0.9, an
SRMR value of 0.068 is used which indicates that the SRMR value < 0.080, meaning that this
model is considered acceptable (Kock, 2018).
Path Coefficient Test
Path coefficients (β) show the influence between construct variables through bootstrapping
procedures. The path coefficient (β) is expected to be in the range of –1 to 1. A positive (+) or
negative (-) sign describes the type of influence of one variable with another. The significance
value is obtained from the t-statistical test value using a two-tailed test with a significance level
of 5% or ≥1.96. The p-value was tested with a significance level of 5% or lower than 0.05. Here
are the test results of the path coefficient test in Table 13.
Table 13 Path Coefficient Test
Original sample
(O)
Sample mean
(M)
Standard deviation
(STDEV)
T statistics
(|O/STDEV|)
P values
KTM → LM
0,326
0,332
0,099
3,298
0,001
KTM → WTPP
0,093
0,098
0,114
0,815
0,415
LM → WTPP
0,610
0,608
0,146
4,188
0,000
PM → KTM
0,785
0,788
0,044
17,671
0,000
PM → LM
0,559
0,553
0,086
6,485
0,000
PM → WTPP
0,087
0,083
0,126
0,688
0,491
KTM: Brand Love, LM: Brand Loyalty, PM: Brand Experience, WTPP: Willingness to Pay
Premium Price
Source: processed research data (2023)
Based on Table 13 it can be found that:
1) Brand experience has a significant effect on brand love with a path coefficient (0.785) and
t statistic (17.671 > 1.96) or p value (0.000 < 0.05).
2) Brand experience has a significant effect on brand loyalty with path coefficients (0.559)
and t statistics (6.485 > 1.96) or p value (0.000 < 0.05).
3) Brand experience had no significant effect on WTPP with path coefficients (0.087) and t
statisticians (0.688 < 1.96) or p values (0.491 > 0.05).
4) Brand love has a significant effect on brand loyalty with path coefficients (0.326) and t
statistics (3.298 > 1.96) or p value (0.001 < 0.05).
5) Brand love has no significant effect on WTPP with path coefficient (0.093) and t statistic
(0.815 < 1.96) or p value (0.415 > 0.05).
6) Brand loyalty has a significant effect on WTPP with path coefficient (0,610) dan t statistic
(4,188 > 1,96) atau p value (0,000 < 0,05).
fFsquare Test
F quare (0.02 low), (0.15 moderate), (0.35 high) (Hair et al., 2017).
Table 14 F Square Test
Brand Love
Brand Loyalty
WTPP
Brand Experience
1,604
0,408
0,005
Brand Love
0,138
0,007
Brand Loyalty
0,257
Source: processed research data (2023)
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Table 14 shows that:
1) Brand experience has a high influence on brand love with an f square of (1.604), has a high
influence on brand loyalty with an f square of (0.408) and has a low influence on WTPP
with an f square of (0,005).
2) Brand love has a moderate influence on f square brand loyalty of (0.138) and has a low
influence on f square WTPP of (0,007).
3) Brand Loyalty has a high influence on WTPP f square (0,257).
Coefficient of Determination Test
The coefficient of determination test (R-Square) serves to determine the percentage of
influence of other variables on the dependent variable. The coefficient of determination test in
this study uses the R-square Adjusted value. A strong effect is shown when the value of the
coefficient of determination is 0.75, moderate if the value of the coefficient of determination is
0.50 and weak if the value of the coefficient of determination is 0.25 (Hair et al., 2017). The results
of the coefficient of determination test are shown in Table 15.
Table 15 Test coefficient of determination
R-square
R-square adjusted
Brand Love
0,616
0,613
Brand Loyalty
0,705
0,700
WTPP
0,574
0,562
Source: processed research data (2023)
Table 15 shows that:
1) The magnitude of the influence of brand experience, brand loyalty and WTPP on brand
love is 61.6%. In (Hair et al., 2017) including moderate influence.
2) The magnitude of the influence of brand experience, love for the brand and WTPP on
brand loyalty is 70.5%. In (Hair et al., 2017) including moderate influence.
3) The magnitude of the influence of brand experience, love for the brand and brand loyalty
to WTPP is 70.5%. In (Hair et al., 2017) including moderate influence.
Predictive Relevance Test (Q-square)
The predictive relevance test (Q-square) is a test conducted with a blindfolding procedure
to show that certain variables used in the research model have predictive relationships with other
variables in the research model. The predictive relevance test in this study uses a Q-square value
with an expected value greater than zero. According to (Hair et al., 2017), Q-square > 0 (low) >
0.25 (low) > 0.50 (high). The results of predictive relevance can be seen in the following Table
16.
Table 16 Predictive Relevance Test (Q-square)
Q²predict
Brand Love
0,603
Brand Loyalty
0,659
WTPP
0,418
Source: processed research data (2023)
Table 16 shows that the Q-Square value of the brand love variable is 0.603 (high); the Q-
Square value of the brand loyalty variable is 0.659 (high); and the Q-Square value of the WTPP
Analysis Of Brand Experience, Brand Love And; Brand Loyalty To Willingness To Pay Premium Price To
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variable is 0.418 (low). So, it can be concluded that the Q-Square value is greater than expected,
which is > 0. This shows the model has predictive relevance.
Hypothesis Testing
1. Test the Hypothesis
This study tested 6 hypotheses on the inner model. To find out whether a hypothesis
is accepted or rejected can be done by paying attention to the significance value of t values,
and p values. In the bootstrapping method in this study, the hypothesis is accepted if the
significant value of t values > 1.96 and or p values < 0.05.
The following hypotheses are proposed in this study:
H
1
: Brand experience positively influences brand love
H
2
: Brand experience positively affects brand loyalty
H
3
: Love for the brand has a positive effect on willingness
to pay premium price
H
4
: Brand love positively affects brand loyalty
H
5
: Brand experience positively affects willingness to pay premium price
H
6
: Brand loyalty has a positive effect on willingness to pay premium price
Figure 1 Research Model Testing
Source: processed research data (2023)
Based on the results of hypothesis testing, it can be concluded as follows.
Table 17 Hypothesis Conclusion
Hypothesis
Path
Coefficient
T statistic
(|O/STDEV|)
P value
Test
Results
H1
Brand Experience positively
influences Brand Love
0,785
17,671
0,000
Accepted
H2
Brand Experience positively affects
Brand Loyalty
0,559
6,485
0,000
Accepted
H3
Love for Brand has a positive effect
on Willingness to pay premium
price
0,093
0,815
0,415
Rejected
H4
Brand Love positively affects
Brand Loyalty
0,326
3,298
0,001
Accepted
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H5
Brand Experience positively affects
Willingness to pay premium price
0,087
0,688
0,491
Rejected
H6
Brand Loyalty has a positive effect
on Willingness to pay premium
price
0,610
4,188
0,000
Accepted
Source: processed research data (2023)
2. Test Mediation
The effect of intervening on the model can be done by testing the effect of mediation
on relationships between constructs through intervening. In the bootstrapping method in this
study, the mediation relationship is considered significant if the t-value > 1.96 and or the p-
value < 0.05.
Table 18 Test mediation
Original sample
(O)
Sample mean
(M)
Standard deviation
(STDEV)
T statistics
(|O/STDEV|)
P
values
PM → KTM → WTPP
0,073
0,079
0,092
0,793
0,428
PM → KTM → LM
0,256
0,263
0,084
3,062
0,002
KTM → LM → WTPP
0,199
0,199
0,070
2,819
0,005
PM → KTM → LM → WTPP
0,156
0,157
0,058
2,685
0,007
PM → LM → WTPP
0,341
0,340
0,108
3,165
0,002
KTM: Brand Love, LM: Brand Loyalty, PM: Brand Experience, WTPP: Willingness to Pay
Premium Price
Source: processed research data (2023)
Based on Table 4.23 it can be seen that:
1) Brand love did not significantly mediate the influence of brand experience on WTPP
by (0.073) with t statistic (0.793 < 1.96) or p value (0.428 > 0.05).
2) Brand love significantly mediates the influence of brand experience on brand loyalty
by (0.256) with a t statistic (3.062 > 1.96) or p value (0.002 < 0.05).
3) Significant brand loyalty mediated the influence of brand love on WTPP by (0.199)
with t statistic (2.819 > 1.96) or p value (0.005 < 0.05).
4) Brand love and brand loyalty significantly mediated the influence of brand
experience on WTPP by (0.156) with t statistic (2.685 > 1.96).
5) Significant brand loyalty mediated the effect of brand experience on WTPP (0.341)
with a t statistic (3.165 > 1.96) or p value (0.002 < 0.05).
3. Influence Analysis
Influence analysis aims to identify the strength of influence between constructs both
direct, indirect and total influence. The analysis produces total effects values that can show
direct, indirect, and total effects in the following table 19:
Table 19 Total Effects Value
Total effects
Brand Love -> Brand Loyalty
0,326
Brand Love -> WTPP
0,292
Brand Loyalty -> WTPP
0,610
Brand Experience -> Brand Love
0,785
Brand Experience -> Brand Loyalty
0,815
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Brand Experience -> WTPP
0,657
Source: Processed research data (2023)
Table 19 shows that there is a total effect of brand love on brand loyalty of 0.326;
brand love for WTPP of 0.292; brand loyalty to WTPP of 0.610; brand experience of brand
love of 0.785; brand experience to brand loyalty of 0.815; and brand experience of WTPP of
0.657.
Discussion
The Effect of Brand Experience on Brand Love
The value of the variable path coefficient of brand experience towards brand love is 0.785
which means that the value of the path coefficient has a positive value. A positive sign illustrates
that brand experience variables have a positive influence on brand love. That is, as the brand
experience increases, the love for the brand will also increase. Furthermore, the t-statistic value
of the brand experience variable towards the brand love variable is 17.671 which means the t
value > 1.96, while the resulting p value is 0.0000 which means the p value is smaller than α =
0.05. This shows that the influence of brand experience on brand love is proving significant. With
the fulfillment of all requirements in hypothesis testing, it can be concluded that H1 is accepted.
The results of this study are in line with research conducted by (Junaid et al., 2019; Singh et
al., 2021). Brand Experience influences Brand Love because there is an emotional side to the Brand
Experience construct. Because Love for Brand is the level of emotional attachment of consumers
and hedonic emotions trigger Love for Brand (Ferreira et al., 2019).
The Effect of Brand Experience on Brand Loyalty
The value of the variable path coefficient of brand experience to brand loyalty is 0.559
which means that the value of the path coefficient has a positive value. A positive sign illustrates
that brand experience variables have a positive influence on brand loyalty. That is, as the brand
experience improves, brand loyalty will also increase. Furthermore, the t-statistic value of the
brand experience variable to the brand loyalty variable is 6.485 which means the t value > 1.96,
while the resulting p value is 0.0000 which means the p value is smaller than α = 0.05. This
suggests that the influence of brand experience on brand loyalty is proving significant. With the
fulfillment of all requirements in hypothesis testing, it can be concluded that H2 is accepted.
The results of this study are in line with research conducted by (Brakus et al., 2009) which
shows that brand experience has a direct and indirect effect on brand loyalty. The study of Mathew
& Thomas, (2018) shows the direct influence of brand experience on brand loyalty was found to
be greater than its indirect effects, the contribution of brand experience is more than brand
credibility and affective commitment. Similar findings also reported by Brakus et al. (2009),
brand experience is a stronger predictor of brand loyalty than brand personality and satisfaction.
The Effect of Brand Love on Willingness to pay premium price
The value of the variable path coefficient of brand love for WTPP is 0.093, which means
that the value of the path coefficient has a positive value. A positive sign illustrates that the
variable of love for the brand has a positive influence on WTPP. That is, when the love for the
brand increases, WTPP will also increase. Furthermore, the t-statistic value of the brand love
variable for the WTPP variable is 0.815 which means the t value < 1.96, while the resulting p
value is 0.415 which means the p value is greater than α = 0.05. This shows that the influence of
brand love on WTPP proved insignificant. By not meeting all the requirements in hypothesis
testing, it can be concluded that H3 is rejected.
The Effect of Brand Love on Brand Loyalty
The value of the variable path coefficient of brand love for brand loyalty is 0.326, which
means that the value of the path coefficient has a positive value. A positive sign illustrates that
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the variable of love for the brand has a positive influence on brand loyalty. That is, when love for
the brand increases, brand loyalty will also increase. Furthermore, the t-statistic value of the brand
love variable for the brand loyalty variable is 3.298 which means the t value > 1.96, while the
resulting p value is 0.0001 which means the p value is smaller than α = 0.05. This shows that the
influence of brand love on brand loyalty is proving significant. With all the requirements in
hypothesis testing met, it can be concluded that H4 is accepted.
The results of this study are in line with the research conducted by (Fortes et al., 2019)
which showing love for the brand positively affects brand loyalty. This positive and significant
relationship between brand love and loyalty has been empirically proven in research (Bairrada et
al., 2019); According to (Bairrada et al., 2019) A passionate love for a brand is a strong indicator of
brand loyalty, translated into behavioral intent, such as continuing to buy the same brand to the
detriment of competing brands.
In addition to these findings, research (Bairrada et al., 2019) discover the important
connection between consumers' love of clothing brands and positive word-of-mouth. These
results drive the huge potential of brand love, leading consumers to recommend their beloved
brands to friends and others, as well as accentuating positive aspects. So, it seems reasonable that
if consumers cultivate strong feelings such as love for a particular brand, it is expected that they
will say positive things about that brand.
The effect of brand experience on Willingness to pay premium price
The value of the brand experience variable path coefficient against WTPP is 0.087 which
means that the path coefficient value has a positive value. A positive sign illustrates that brand
experience variables have a positive influence on WTPP. That is, as the brand experience
improves, so will WTPP. Furthermore, the t-statistic value of the brand experience variable
against the WTPP variable is 0.688 which means the t-value < 1.96, while the resulting p value
is 0.491 which means the p value is greater than α = 0.05. This suggests that the influence of brand
experience on WTPP proved insignificant. By not meeting all the requirements in hypothesis
testing, it can be concluded that H5 is rejected.
The Effect of Brand Loyalty on Willingness to pay premium price
The value of the variable path coefficient of brand loyalty to WTPP is 0.610, which means
that the value of the path coefficient has a positive value. A positive sign illustrates that the brand
loyalty variable has a positive influence on WTPP. That is, when brand loyalty increases, WTPP
will also increase. Furthermore, the t-statistic value of the brand loyalty variable to the WTPP
variable is 4.188 which means the t value > 1.96, while the resulting p value is 0.0000 which
means the p value is smaller than α = 0.05. This shows that the influence of brand loyalty on
WTPP proved significant. With the fulfillment of all requirements in hypothesis testing, it can be
concluded that H6 is accepted.
The results of this study are in line with research conducted by (Soedarto et al., 2019) Finding
that loyalty affects willingness to pay a consistently premium price predicted that when consumers
feel loyalty for a particular brand, they will not switch to another competing brand even if
marketers set a premium price. According to (Narteh, 2018), Brand loyalty affects the willingness
to pay a premium price because brand loyalty is strongly linked to purchase intent. In this notion,
consumers who are deeply emotionally attached to a brand feel that the brand is irreplaceable,
thus displaying certain behaviors such as a willingness to make financial sacrifices, including
paying a higher price to acquire a particular brand.
Brand love mediates the influence of brand experience on willingness to pay premium price
The results of the mediation test stated that brand love mediated the influence of brand
experience on willingness to pay premium price of (0.073) which means that this influence is
positive. However, the role of brand love did not significantly mediate the effect of brand
experience on brand loyalty with a statistical t value (0.793 < 1.96) or p value (0.428 > 0.05).
Analysis Of Brand Experience, Brand Love And; Brand Loyalty To Willingness To Pay Premium Price To
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Love of the brand mediates the influence of brand experience on brand loyalty
The results of the mediation test stated that brand love mediated the influence of brand
experience on brand loyalty by (0.256). Brand love plays a significant role in mediating the
influence of brand experience on brand loyalty with t statistics (3.062 > 1.96) or p value (0.002 <
0.05). Based on the mediation analysis procedure using the method (Hair et al., 2017) this study
shows that love for brands mediates partially (partial mediation).
Brand loyalty mediates the influence of brand love on willingness to pay premium price
The results of the mediation test stated that significant brand loyalty mediated the influence
of brand love on the willingness to pay premium price of (0.199). Brand loyalty has a significant
role in mediating the influence of brand love on the Willingness to Pay Premium Price with t
statistic (2.819 > 1.96) or p value (0.005 < 0.05). Based on the mediation analysis procedure using
the method (Hair et al., 2017) this study shows that brand loyalty mediates full mediation.
Brand love and brand loyalty mediate the influence of brand experience on willingness to
pay premium price
The results of the mediation test stated that brand love and brand loyalty mediated the
influence of brand experience on the willingness to pay premium price of (0.156). Brand love and
brand loyalty significantly mediated the influence of brand experience on willingness to pay
premium price by (0.156) with t statistic (2.685 > 1.96).
Brand loyalty mediates the influence of brand experience on willingness to pay premium
price
The results of the mediation test stated that significant brand loyalty mediated the effect of
brand experience on willingness to pay premium price of (0.341). Brand loyalty has a significant
role to mediate the influence of brand experience on willingness to pay premium price with t
statistic (3.165 > 1.96) or p value (0.002 < 0.05). Based on the mediation analysis procedure using
the method (Hair et al., 2017) this study shows that brand loyalty mediates full mediation.
CONCLUSION
The results of the findings of this study prove and provide conclusions to answer these
problems. This provides answers and an overview of a constructive mechanism and process on
how to increase purchase volume by achieving the willingness to pay premium price as expected
in this study:
First, based on the results of data analysis depicted on the analysis graph, the research
model shows that brand loyalty is the dominant variable that influences the realization of
willingness to pay premium price. Brand loyalty is an important construct for Starbucks because
of its ability to retain and increase consumers or customers with a willingness to pay premium
price.
Second, based on the total effects value, the path of brand experience to brand loyalty is
the path with the highest value. Supported by the results of data analysis depicted on the model
analysis graph, it can be shown that brand experience is the second variable that influences the
realization of willingness to pay premium price through the role of brand loyalty. So it is very
suitable to be used as a tool for Starbucks Indonesia to increase purchase volume. Because
experiences result from stimuli and lead to pleasurable outcomes, it is expected that consumers
will want to repeat those experiences.
Third, the results of data analysis depicted on the model analysis graph can be shown that
brand love is the third variable that influences the realization of willingness to pay premium price
through the role of brand loyalty. It can be interpreted that, love for the brand can be used to
achieve a willingness to pay premium price. The greater the love for the brand, the greater the
brand loyalty, the right direction to achieve the willingness to pay premium price for consumers.
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