THE INFLUENCE OF EXPERIENTIAL MARKETING ON CUSTOMER LOYALTY MEDIATED WITH CUSTOMER SATISFACTION

 

Beda Bramantoko1, Herry Maridjo2

Universitas Sanata Dharma, Yogyakarta, Indonesia

 

[email protected]1 , [email protected]2

 


ABSTRACT

The research aims to analyze the influence of Sense, feel, think, and act and relate to customer loyalty mediated by customer satisfaction. The research sample was 412 Uniqlo fast fashion customers using non-probability sampling techniques. The data collection technique uses a questionnaire. The data analysis technique uses Structural Equation Modeling (SEM) with the SmartPLS Version 4 application. The research results found that (1) sense and relate directly have a positive effect on customer loyalty, (2) feel, think, and act do not directly have an effect on customer loyalty, (3) sense and relate affect loyalty, partially mediated by job satisfaction, and (4) feel, think, and act have no effect on customer loyalty and are fully mediated by customer satisfaction. The influence of experiential marketing on customer loyalty mediated by customer satisfaction can predict success by more than ninety percent. This research has implications for understanding the factors that influence customer loyalty in the context of fast fashion, especially for Uniqlo. The research findings emphasize the significant direct influence of Sense and relate to customer loyalty, providing insight into the aspects that play an essential role in building and maintaining customer loyalty. Additionally, the mediating role of job satisfaction and customer satisfaction provides insight into the mechanisms underlying the relationship of experimental marketing elements with loyalty. Practically, these insights can guide marketers and managers in designing strategies to increase customer loyalty through targeted experimental marketing efforts.

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Keywords: Customer Satisfaction, Customer Loyalty, Experiential Marketing.

 



Corresponding Author: Beda Bramantoko

Email: [email protected]

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INTRODUCTION

Customer loyalty is a topic that is always interesting to discuss. According to (Wilson et al., 2021), companies can increase market share and position in an industry with customer loyalty. Loyalty can be evidence that indicates that customers will regularly repurchase the goods and services they like in the future (Setiawan et al., 2020). Suppose the company succeeds in increasing the number of loyal customers. In that case, the company will gain and increase its profits (Wilson et al., 2021). Therefore, customer loyalty plays a vital role in gaining a competitive advantage for companies (Alshurideh et al., 2017).

According to Piotr, three characteristics show that customers have loyalty. First, customers spend more money to purchase a product or service from a company. Second, customers will influence and invite other people to buy goods or services provided by the company. Lastly, customers feel that the company's goods and services are essential to obtain (Zena & Hadisumarto, 2012).

Customer loyalty is the tendency of customers to consistently choose a particular brand or company over others, often due to positive experiences, satisfaction, trust, or perceived value associated with the brand or company's products or services.Customer loyalty can have an influence, namely experiential marketing (Basuki & Tyastuti, 2020); (Karuniatama et al., 2020); (Paulose & Shakeel, 2022); (Zena & Hadisumarto, 2012). The second factor that influences customer loyalty is service quality (Alshurideh et al., 2017); (Arianto, 2017); (Budiarta & Fachira, 2017); (Rashid, 2013) ; (Paulose & Shakeel, 2022); (Pragunadi et al., 2018); (Pramuditha et al., 2021); (Rahman et al., 2022); �(Siddiqi, 2011). The third factor that influences customer loyalty is customer satisfaction (Arianto, 2017); (Rashid, 2013); (Paulose & Shakeel, 2022); (Pragunadi et al., 2018); (Pramuditha et al., 2021); (Rahman et al., 2022); (Setiawan et al., 2020); (Siddiqi, 2011); (Wilson et al., 2021); (Zena & Hadisumarto, 2012).

According to (Wilson et al., 2021), customer loyalty is a commitment customers make to buy a product or service offered by the company in the future. Customer loyalty occurs when customers intend to repurchase similar products or services from a company, maintain an optimistic attitude toward the company, and recommend its services to others (Islam et al., 2021). (Budiarta & Fachira, 2017) . This is in line with what (Zena & Hadisumarto, 2012) said(Zena & Hadisumarto, 2012), namely, customer loyalty can make customers show an attitude of intention that can make them buy products produced by the company and create a relationship between customers and the company. A company's success as a whole, not only from a financial perspective, is a result of customer loyalty to the company (Wilson et al., 2021). For this reason, customer loyalty is essential for companies.

The study of previous research on customer loyalty was the basis for conducting experiential marketing research using Sense, feel, think, act, and relate as independent variables on customer loyalty through customer satisfaction in one of the fast fashion businesses, Uniqlo. According to (DetaNatasya & Maridjo, 2022), Uniqlo is a fashion brand that is well known in Indonesia and is in demand because it sells products at low prices but with high quality. Researchers want to study fast fashion because, according to (Ni Kadek, 2021), fast fashion is currently able to develop rapidly globally because it is designed quickly to follow trends in each season. Fast fashion also gets excellent attention from the public because it can produce fashion-trend products at affordable prices (Ni Kadek, 2021). In 2019, the fashion industry experienced enormous development, which ultimately significantly influenced the birth of fast fashion in Indonesia (Kornelis, 2022). (Kornelis, 2022) also added that the increase in the fast fashion market must be distinct from the tastes of today's young people. Some of the famous fast fashion brands currently are Zara (Spain), H&M (Sweden), Uniqlo (Japan), and others. The reason researchers chose Uniqlo is because Uniqlo is a retail business from Japan that is not only developing well in Japan and Indonesia but is also spread across several regions in Asia and is the largest retail network in Asia (DetaNatasya & Maridjo, 2022).

Based on the background above, this research aims to determine and analyze the influence of experiential marketing (Sense, relate, feel, think, and act) on customer loyalty mediated by Fast Fashion Uniqlo customer satisfaction. So, the benefit of this research is an in-depth understanding of how experiential marketing elements, such as Sense, relate, feel, and think. The act can influence customer loyalty in the context of the Fast Fashion industry, especially for the Uniqlo brand. This research can be a valuable guide for marketing practitioners to design more effective strategies, increase customer satisfaction, and strengthen customer bonds with the brand.

 


 

METHOD

The philosophy of positivism aligns closely with the research objectives in this quantitative study, particularly in its emphasis on empirical evidence and the use of systematic data collection techniques. Positivism asserts that knowledge is derived from observable phenomena and emphasizes the importance of quantifiable data in understanding the world. In this context, the use of quantitative research methods, such as surveys or questionnaires, resonates with positivist principles by providing structured, measurable data that can be analyzed statistically. By employing a questionnaire as a data collection technique, researchers aim to gather specific, standardized information from a sample or population, consistent with the positivist approach of seeking objective truths through systematic observation and analysis. Therefore, the alignment between the philosophy of positivism and the research objectives underscores the commitment to rigorous empirical inquiry and the systematic examination of quantifiable data to address research questions and hypotheses.

The research population is Uniqlo fast fashion customers. The sample uses non-probability sampling (Hadiwidjaja, 2014). The consideration for the criteria used in the research is that Uniqlo fast fashion customers are willing to complete the Google form. The total sample was 412 people.

The research instrument uses a questionnaire sheet. The Likert scale questionnaire scoring details are score 1 (STS), score 2 (T.S.), score 3 (R.R.), score 4 (S), finally score 5 (S.S.).

Structural Equation Modeling (SEM) analysis, which is data analysis, provides a structural picture expressed by a set of equations, with the SmartPLS 4 application consisting of an outer model test and an inner model test for hypothesis testing (Ghozali & Latan, 2015).

Figure 1. Conceptual Framework

Information:

:

The influence is directly exogenous to endogenous.

:

Exogenous influences on mediation.

:

The influence of mediation on endogenous.

 


 

RESULTS AND DISCUSSION

Respondent Description

Table 1. Respondent Description

Respondent description

f

%

Gender:

Man

Woman

 

187

225

 

45.4 %

54.6 %

Age:

< 20 years

20 - 30 years

31 - 40 years old

41 - 50 years old

> 50 years

 

48

195

166

3

0

 

11.7 %

47.3 %

40.3 %

0 %

8.0 %

Education:

Elementary School

Junior High School

Senior High School

D1/D2/D3

D4/S1

S2

S3

 

1

2

71

172

147

19

0

 

0.2 %

0.5 %

17.2 %

41.7 %

35.7 %

4.6 %

0 %

Total

412

100%

Table 1, based on the characteristics of respondents, shows that of the 412 Uniqlo fast fashion customers, the majority of them are women, with a total of 225 (54.6%), while based on age, 195 (47.3%) are between 20 and 30 years old. Most respondents' last education was D1/D2/D3, with 172 people (41.7%).

Evaluation of the Measurement Model (Outer Model)

Validity test

The validity test can be called outer models with reflective indicators evaluated with convergent and discriminant validity. The results of validity testing are as follows :

1)    Convergent validity testing

A screenshot of a computer

Description automatically generated

Figure 2. Outer Model

Figure 2 explains the results of the validity analysis of exogenous and endogenous outer loading variable indicators. The results of each outer model have a loading factor value above 0.6, so all indicators are declared valid.

2)    Average Variance Extracted (AVE) Testing

Table 2. Results of Average Variance Extracted

Variables

Average variance extracted

air conditioning

0.776

RE

0.776

K P

0.658

L O

0.673

S.E.

0.975

Source: Premier Data Processed in 2023

Based on the good results, the AVE value of the indicator shows >0.5 so that the entire construct can be declared valid.

3)    Discriminant Validity Testing

Table 3. Discriminant Validity Results

AC

RE

FE

KP

LO

SE

TH

AC1

0.883

0.724

0.598

0,786

0,779

0,754

0,558

AC2

0,878

0,676

0,656

0,778

0,755

0,749

0,604

RE1

0,691

0,885

0,655

0,799

0,792

0,751

0,614

RE2

0,711

0,878

0,642

0,775

0,772

0,729

0,658

FE1

0,711

0.736

1,000

0.795

0,769

0.682

0.543

KP1

0.747

0,720

0.653

0.842

0.805

0.774

0.651

KP10

0,692

0.723

0.673

0.814

0.754

0,693

0.609

KP2

0,706

0.707

0.671

0.801

0.765

0.717

0.597

KP3

0.727

0.744

0.641

0.805

0,780

0.726

0.624

KP4

0.721

0.696

0.649

0.794

0.776

0.743

0.607

KP5

0.689

0.727

0.646

0.791

0.765

0.718

0.611

KP6

0.740

0.755

0.632

0.825

0.792

0.775

0.656

KP7

0.721

0.731

0.617

0.814

0.778

0.736

0.625

KP8

0.733

0.724

0.655

0.808

0.778

0.736

0.619

KP9

0.724

0,720

0.618

0.818

0.778

0.757

0.641

LO1

0,700

0.718

0.624

0,781

0.824

0.723

0.618

LO2

0.724

0.734

0.637

0.782

0.806

0.735

0.637

LO3

0,719

0.751

0.638

0,800

0.817

0.766

0.615

LO4

0.715

0,709

0.622

0,781

0.834

0.712

0,600

SE1

0.727

0.728

0.636

0.792

0.784

0.871

0.635

SE2

0.757

0.734

0.550

0.790

0.774

0.869

0.609

T H 1

0.660

0.721

0.543

0.769

0.753

0.715

1,000

Source: Premier Data Processed in 2023

The results found that the AVE root was > 0.5, and it could be concluded that the outer model was said to be valid.

a.    Reliability Test

Cronbach's Alpha and Composite Reliability test.

Table 4. Results of Cronbach's Alpha and Composite Reliability

Cronbach's alpha

Composite reliability (rho_c)

AC

0.711

0.874

RE

0.712

0.951

KP

0.942

0.892

LO

0.838

0.862

S.E.

0.679

0.874

Source: Premier Data Processed in 2023

Research shows that Cronbach's alpha ˃ 0.6, Composite Reliability ˃ 0.7 has a satisfactory value. This means that the consistency and stability of the instruments used are high; in conclusion, the reliability of the instruments is stated to be good.

Structural Model Evaluation (Inner Model)

Structural or inner model testing is hypothesis testing with bootstrapping steps, namely as follows:

A screenshot of a computer

Description automatically generated

Figure 3. Inner Model

Table 5. Inner Model

Original sample (O)

Sample mean (M)

Standard deviation (STDEV)

T statistics (|O/STDEV|)

P values

AC -> KP

0.232

0.232

0.032

7,159

0,000

AC -> LO

0.078

0.083

0.046

1,719

0.086

RE -> KP

0.211

0.210

0.037

5,715

0,000

RE -> LO

0.133

0.136

0.038

3,549

0,000

FE -> KP

0.192

0.192

0.020

9,597

0,000

FE -> LO

0.025

0.027

0.029

0.861

0.389

KP -> LO

0.634

0.620

0.104

6,094

0.000

SE -> KP

0.299

0.300

0.039

7,735

0.000

IF -> LO

0.100

0.104

0.042

2,386

0.017

TH -> KP

0.146

0.147

0.023

6,380

0.000

TH -> LO

0.033

0.035

0.025

1,299

0.194

Source: Premier Data Processed in 2023


 

Meaning of R2, Structural Model Testing (Inner Model)

1.    R-value2

Prediction R 2 measures the level of variation of the independent variable relative to the endogenous one, presented as follows to measure the value of change variation:

Table 6. R2 value

Variables

R-square

Customer satisfaction

0.931

Customer loyalty

0.927

Source: Premier Data Processed in 2023

The prediction of Sense, feel, think, act, and relate to customer satisfaction is R2 ( 93.1%), while customer loyalty is R 2 ( 93.1%). Variables outside the research explain the rest.

2.    Hypothesis testing

A screenshot of a computer

Description automatically generated

Figure 4. Hypothesis Testing

Table 7. Direct Estimation Results Effect and Indirect Effect

Original samples

Sample mean

Standard deviation

T statistics

P values

AC -> LO

0.078

0.083

0.046

1,719

0.086

RE -> LO

0.133

0.136

0.038

3,549

0.000

FAITH -> LO

0.025

0.027

0.029

0.861

0.389

SE -> LO

0.100

0.104

0.042

2,386

0.017

T H -> LO

0.033

0.035

0.025

1,299

0.194

AC -> KP ->LO

0.147

0.143

0.025

5,831

0.000

D -> KP -> LO

0.134

0.131

0.033

4,109

0.000

FE -> KP -> LO

0.122

0.119

0.024

5,069

0.000

S E -> KP -> LO

0.189

0.186

0.043

4,441

0.000

T H -> KP -> LO

0.093

0.091

0.020

4,600

0,000

Premier Data Source Processed in 2023

Sense Directly Has A Positive Effect On Customer Loyalty

Sense has a positive effect on customer loyalty. In line with research by Dharmayanti (Hadiwidjaja, 2014), it is known that the sense variable has a positive effect on customer loyalty. (Schmitt, 1999) states that Sensory experience (Sense) is an effort to create experiences using the five senses such as sight, sound, touch, taste, and smell to differentiate the products or services provided. This means better customer sense and loyalty. Conversely, the worse the Sense, the lower customer loyalty.

Feelings Do Not Directly Affect Customer Loyalty

�dial does not affect customer loyalty, which is different from previous research conducted by Dharmayanti (Hadiwidjaja, 2014), which showed that the feel variable had a positive effect on customer loyalty. (Schmitt, 1999) states that Affective experience (feel) arises through the emergence of feelings and emotions due to contact and interactions that develop over time. Affective experience (feel) can also arise using ideas, pleasure, reputation, and services provided to consumers (Molinillo et al., 2022). Feeling bad will not increase or decrease customer loyalty.

Thinking Directly Does Not Affect Customer Loyalty

Think has no positive effect on customer loyalty. This research differs from previous research (Hadiwidjaja, 2014), which showed that the think variable positively affected customer loyalty. (Schmitt, 1999) states that the goal of creative cognition (thinking) is to produce a re-evaluation of the company and brand by encouraging consumers to be interested and think creatively. Getting worse will not increase or decrease customer loyalty.

The Act Has No Direct Effect On Customer Loyalty

The act does not affect customer loyalty. This is different from previous research conducted by Dharmayanti (Hadiwidjaja, 2014), which showed that the act variable positively affected customer loyalty. (Schmitt, 1999) states that Physical experience (act) is a marketing technique related to the physical body, behavioral patterns, and long-term lifestyle, as well as experiences that occur from interactions with other people to create a consumer experience. Evil actions will not improve or reduce customer loyalty.

Relating Directly Has A Positive Effect On Customer Loyalty

Relate has a positive effect on customer loyalty. So, the results of this research are different from previous research conducted by Dharmayanti (Hadiwidjaja, 2014), which showed that the act variable did not positively affect customer loyalty. (Schmitt, 1999) states that connecting consumers with the culture and social environment reflected by the brand of a product is the goal of Association experience (relate) because, in general, Association experience (relate) shows relationships with people, groups, or other wider social communities. And abstract. This means that the more appropriate the relation, the higher the customer loyalty. On the other hand, if the relationship is appropriate, customer loyalty is higher.

Sense Influences Customer Loyalty, Partially Mediated By Customer Satisfaction

Sense has a positive effect on customer loyalty mediated by customer satisfaction. So, the results of this research align with previous research conducted by (Karuniatama et al., 2020), which showed that the variable Sense had a positive effect on customer loyalty, mediated by customer satisfaction. (Setiawan et al., 2020) States that customer satisfaction is a customer's feeling of happiness or disappointment resulting from comparing customers' perceived performance and expectations with the finished product or results an organization achieves. Another theory states that a person's feelings of joy or disappointment can arise after comparing the performance expectations (results) of the product they are thinking about with the reality of the resulting performance (Kotler & Keller, 2009). (Schmitt, 1999) states that Sensory experience (Sense) is an effort to create experiences using the five senses such as sight, sound, touch, taste, and smell to differentiate the products or services provided. Sound Sense: The higher customer satisfaction, the higher customer loyalty. Conversely, the worse the Sense, the lower the customer satisfaction and the lower the customer loyalty.

Feeling Influences Customer Loyalty And Is Fully Mediated By Customer Satisfaction

Feel has a positive effect on customer loyalty, mediated by customer satisfaction. So, the results of this research align with previous research conducted by (Karuniatama et al., 2020); the feel variable has a positive effect on customer loyalty, mediated by customer satisfaction. (Setiawan et al., 2020) States that customer satisfaction is a customer's feeling of happiness or disappointment resulting from comparing customers' perceived performance and expectations with the finished product or results an organization achieves. The theory states that a person's feelings of joy or disappointment can arise after comparing the performance expectations (results) of the product they are thinking about with the reality of the resulting performance (Kotler & Keller, 2009). (Schmitt, 1999) states that Affective experience (feel) arises from feelings and emotions due to contact and interactions that develop over time. Apart from that, Affective experience (feel) can also emerge using ideas, pleasure, reputation, and services provided to consumers. The better the feel, the higher the customer satisfaction and loyalty. On the other hand, the worse the feeling, the lower the customer satisfaction, and the lower the customer loyalty.

Think Affects Customer Loyalty, Which Is Fully Mediated By Customer Satisfaction

Think has a positive effect on customer loyalty mediated by customer satisfaction. So, the results of this research align with previous research conducted by (Karuniatama et al., 2020), which showed that the think variable had a positive effect on customer loyalty, mediated by customer satisfaction. (Setiawan et al., 2020) States that customer satisfaction is a customer's feeling of happiness or disappointment resulting from comparing customers' perceived performance and expectations with the finished product or results an organization achieves. Another theory states that a person's feelings of joy or disappointment can arise after comparing the performance expectations (results) of the product they are thinking about with the reality of the resulting performance (Kotler & Keller, 2009). (Schmitt, 1999) states that the aim of creative cognition (thinking) is to produce a re-evaluation of companies and brands by encouraging consumers to be interested and think creatively. In the context of this research, this means that the better the thinking, the higher the customer satisfaction and the higher the customer loyalty. On the contrary, it is not good to think that the lower the satisfaction, the lower the customer loyalty.

Act Affects Customer Loyalty, Which Is Fully Mediated By Customer Satisfaction

Act has a positive effect on customer loyalty mediated by customer satisfaction. So, the results of this research align with previous research conducted by (Karuniatama et al., 2020), which showed that the act variable had a positive effect on customer loyalty, mediated by customer satisfaction. (Setiawan et al., 2020) States that customer satisfaction is a customer's feeling of happiness or disappointment resulting from comparing customers' perceived performance and expectations with the finished product or results an organization achieves. Another theory states that a person's feelings of joy or disappointment can arise after comparing the performance expectations (results) of the product they are thinking about with the reality of the resulting performance (Kotler & Keller, 2009). (Schmitt, 1999) states that physical experience (act) is a marketing technique related to the physical body, behavioral patterns, long-term lifestyle, and experiences that occur from interactions with other people to create consumer experiences. In the context of this research, this means that the better the act, the higher the customer satisfaction and the higher the loyalty. On the other hand, the worse the act, the lower the satisfaction and the lower the customer loyalty. The customer's interest in repurchasing a product and the customer's interest in coming because of the website, and the higher the customer satisfaction, the higher the loyalty.

Relate Affects Customer Loyalty, Partially Mediated By Customer Satisfaction

Relate has a positive effect on customer loyalty mediated by customer satisfaction. So the results of this research align with previous research conducted by (Karuniatama et al., 2020), which shows that the variable related has a positive effect on customer loyalty, mediated by customer satisfaction. (Setiawan et al., 2020) States that customer satisfaction is a customer's feeling of happiness or disappointment resulting from comparing customers' perceived performance and expectations with the finished product or results an organization achieves. Another theory states that a person's feelings of joy or disappointment can arise after comparing the performance expectations (results) of the product they are thinking about with the reality of the resulting performance (Kotler & Keller, 2009). (Schmitt, 1999) states that connecting consumers with the culture and social environment reflected by the brand of a product is the goal of Association experience (relate) because, in general, Association experience (relate) shows relationships with people, groups, or other wider social communities. And abstract. In the context of this research, this means that the more appropriate the relation, the higher the customer satisfaction and the higher the customer loyalty. Conversely, the more inappropriate the relationship, the lower the satisfaction and customer loyalty.

 

CONCLUSION

The research findings are as follows: (1) Sense directly affects customer loyalty (2) Feel has no direct effect on customer loyalty (3) Think has no direct effect on customer loyalty (4) Act has no direct effect on customer loyalty (5) Relate has a direct effect on customer loyalty (6) Sense affects customer loyalty which is partially mediated by customer satisfaction (7) Feel affects customer loyalty which is fully mediated by customer satisfaction (8) Think affects customer loyalty which is fully mediated by customer satisfaction (9) Act affects customer loyalty, partially mediated by customer satisfaction (10) Relate affects customer loyalty, partially mediated by customer satisfaction. The further research is expected to provide deeper insights into the factors influencing customer loyalty and assist companies in developing more effective strategies to maintain and enhance customer loyalty. The implications of this research indicate that in building customer loyalty, it is important to consider different aspects of the customer experience. Although the factors of Sense and Relate have significant direct influences, it is also crucial to pay attention to customer satisfaction as a mediator in the relationship between other aspects and loyalty. This highlights the necessity for companies to focus on enhancing customer experiences that foster emotional connection and strong relationships with the brand, while ensuring that customer satisfaction remains a priority to effectively maintain and increase customer loyalty.

 


 

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