Surya Putra Asy'ari (1), Sumainah Fauziah (2)
General Background Customer loyalty is essential for modern food and beverage businesses because it supports repeat purchases, recommendations, and resistance to competitor offers. Specific Background In Indonesia’s growing beverage industry, Suweger Rungkut Branch faces competitive pressure and sales realization that remained below the monthly target during January–October 2025. Knowledge Gap Previous studies have discussed product quality, service quality, and customer satisfaction in relation to loyalty, but empirical evidence is still needed to identify the dominant factor in a modern beverage branch context. Aims This study examines the simultaneous and partial relationships between product quality, service quality, customer satisfaction, and customer loyalty at Suweger Rungkut Branch. Results Using a quantitative approach with 100 accidental sampling respondents and multiple linear regression through SPSS, the findings show that product quality, service quality, and customer satisfaction simultaneously relate significantly to customer loyalty, with F = 26.385, sig. = 0.000, and R² = 0.452. Partially, product quality is not significant, with t = 1.730 and sig. = 0.087, and service quality is also not significant, with t = 1.636 and sig. = 0.105. Customer satisfaction is significant and dominant, with t = 4.976, sig. = 0.000, and coefficient = 0.454. Novelty This study identifies customer satisfaction as the strongest loyalty factor in Suweger Rungkut’s modern beverage business. Implications Management should prioritize holistic satisfaction strategies while consistently improving product and service quality.
Highlights:
Keywords: Customer Loyalty, Customer Satisfaction, Food and Beverage, Product Quality, Service Quality
The Food and Beverage (F&B) industry in Indonesia continues to show consistent growth and has become one of the most dynamic business sectors in 2025. The Association of Indonesian Food and Beverage Entrepreneurs (Gapmmi) projects that the national food and beverage industry can achieve 6% growth in 2025, an increase of approximately 0.5%–1% compared to the 2024 target of 5%–5.5%. This growth is supported by a large domestic population, a rising middle class, and lifestyle changes that increasingly prioritize convenience, quality, and culinary experiences.
Statistics Indonesia (BPS) data through the March 2024 National Socioeconomic Survey (Susenas) shows that in East Java Province, household expenditure on the food group reached approximately 50.79%, higher than non-food expenditure at 49.21%. This indicates that food consumption remains the primary priority for the community, giving the F&B sector a strong and sustainable market base [1].
Customer loyalty is not only reflected in repurchase frequency, but also in the willingness to recommend products, resistance to competitor offers, and brand attachment. According to Effendy et al. [2], loyal consumers are customers who are highly satisfied with a product or service and are motivated to introduce it to others. Building customer loyalty is a long-term investment that affects business continuity and development.
Product quality is a collection of properties and characteristics that make a product superior to others [3]. In the modern beverage industry, the use of high-quality ingredients such as fresh milk, premium tea, and quality coffee is an important factor in increasing product value. Several studies have confirmed the influence of product quality on customer loyalty [4], [5].
Service quality is the level of quality expected by customers to meet their desires [6]. Responsive, friendly, and consistent service creates positive experiences that make customers feel valued. Research by Febryanti et al. [4] states that the better the service quality, the higher the level of customer loyalty.
Customer satisfaction is the feeling of satisfaction or dissatisfaction that arises after customers compare the performance of the received product or service with previously held expectations [7]. Research by Fadillah and Tanjung [8] proves that customer satisfaction has a positive and significant effect on customer loyalty in the Food and Beverage industry.
Suweger is a modern beverage brand operating in the F&B industry with milk, tea, and chocolate-based products targeting young to adult consumers in Indonesian urban areas. This brand is managed by PT Sinergitas Indonesia Muda, founded in August 2019 in Surabaya, with approximately 30 outlets in various locations. Suweger Rungkut Branch is located in a strategic area of Surabaya surrounded by residential areas, campuses, shopping centers, and offices.
During the January–October 2025 period, the sales target at Suweger Rungkut Branch was set at 15,500 cups per month. The lowest achievement percentage occurred in January at 27.56%, while the highest was in September at 82.09%, with cumulative total sales of 87,971 cups. The data in Table 1 indicates that sales performance still needs to be improved.
Based on this background, this study aims to: (1) analyze the simultaneous effect of product quality, service quality, and customer satisfaction on customer loyalty at Suweger Rungkut Branch; (2) analyze the partial effect of each variable on customer loyalty; and (3) determine which variable has the most dominant influence on customer loyalty.
Table 1. Sales Target and Realization of Suweger Rungkut Branch (January–October 2025)
1. Product Quality
Product quality is a set of properties and characteristics that make a product superior to others [3]. According to Assauri in Nugroho [9], product quality is an assessment that arises from the consumer's perspective regarding the extent to which a brand or product can provide satisfaction through its performance in carrying out functions according to expected expectations. Product quality indicators in this study include: presentation appearance, menu diversity, taste, health/hygiene, freshness, and temperature.
2. Service Quality
Service quality is the level of quality expected by customers to meet their desires [6]. According to the SERVQUAL model, service quality dimensions include: tangibles, reliability, responsiveness, assurance, and empathy. These dimensions form the basis for measuring service quality in this study [10].
3. Customer Satisfaction
Customer satisfaction is the feeling of satisfaction or dissatisfaction that arises after customers compare the performance of the received product or service with previously held expectations [7]. Customer satisfaction indicators include: conformity of product performance with expectations, overall satisfaction, pleasure after purchase, ability of products to exceed expectations, conformity of service experience, price conformity with quality, and perceived value from purchase.
4. Customer Loyalty
According to Oliver in Mahanani and Alam [11], customer loyalty is defined as the consumer's commitment to continuously repurchase products or services in the future, despite situational influences or marketing efforts that could change behavior. Customer loyalty indicators include: intention to repurchase, routine repurchase, willingness to recommend, willingness to share positive experiences, willingness to provide positive reviews, and difficulty switching to competitor products.
Hypothesis Development
Based on the theoretical framework and previous studies, the hypotheses in this study are formulated as follows: H1: Product quality, service quality, and customer satisfaction simultaneously have a significant effect on customer loyalty; H2: Product quality has a significant partial effect on customer loyalty; H3: Service quality has a significant partial effect on customer loyalty; H4: Customer satisfaction has a significant partial effect on customer loyalty.
This study uses a quantitative research approach with multiple linear regression analysis. The population of this study is all customers of Suweger Rungkut Branch. The sampling technique used is accidental sampling with a total sample of 100 respondents. Data collection was carried out through a Likert scale questionnaire (scale 1–5).
The variables in this study consist of three independent variables, namely: Product Quality (X1), Service Quality (X2), and Customer Satisfaction (X3), as well as one dependent variable, namely Customer Loyalty (Y). Data analysis techniques include validity tests, reliability tests, classical assumption tests (normality, multicollinearity, heteroscedasticity), multiple linear regression analysis, F-test, t-test, and coefficient of determination (R²). The operational definitions and indicators for each variable are presented in Table 2.
Table 2. Operational Definition of Variables
1. Respondent Characteristics
Based on questionnaire data collected from 100 respondents, the characteristics of respondents at Suweger Rungkut Branch can be seen in Table 3. The majority of respondents were aged 21–24 years (44%), female (53%), domiciled in South Surabaya (30%), working as students/college students (55%), with a purchase frequency of 4–5 times (27%). This indicates that Suweger's consumer base is predominantly young people with moderate to high purchase frequency.
Table 3. Respondent Characteristics
2. Descriptive Statistical Analysis
Descriptive statistical analysis was conducted on 100 respondents. Based on the interval calculation using Sturges Formula with an interval class of 0.8, the grand mean of Product Quality (X1) is 3.84, Service Quality (X2) is 3.65, Customer Satisfaction (X3) is 3.85, and Customer Loyalty (Y) is 3.78. All variables are in the "High" category (range 3.4–4.2), indicating that respondents gave positive assessments of all dimensions studied.
3. Validity and Reliability Test Results
The validity test results show that all statement items for each variable have a correlation value greater than 0.3, so all items are declared valid. The reliability test using Cronbach's Alpha shows that Product Quality (α = 0.940), Service Quality (α = 0.929), Customer Satisfaction (α = 0.895), and Customer Loyalty (α = 0.907) all have values above 0.60, indicating that all instruments are reliable and can be used for data collection.
4. Classical Assumption Test Results
The normality test using the One-Sample Kolmogorov-Smirnov test produces a significance value of 0.200 > 0.05, meaning the residuals are normally distributed. The multicollinearity test shows that all variables have Tolerance > 0.10 and VIF < 10 (X1: Tolerance 0.690, VIF 1.449; X2: Tolerance 0.621, VIF 1.609; X3: Tolerance 0.633, VIF 1.580), so there is no multicollinearity. The heteroscedasticity test using scatterplot shows that data points are spread randomly above and below 0 on the Y axis without forming a specific pattern, meaning heteroscedasticity does not occur.
5. Multiple Linear Regression Analysis
Based on the multiple linear regression analysis, the regression equation obtained is as follows:
Y = 3.488 + 0.084X1 + 0.083X2 + 0.454X3 + e
This equation indicates that: (1) the constant value of 3.488 shows the customer loyalty value when all independent variables equal zero; (2) each one-unit increase in product quality will increase customer loyalty by 0.084; (3) each one-unit increase in service quality will increase customer loyalty by 0.083; and (4) each one-unit increase in customer satisfaction will increase customer loyalty by 0.454, indicating customer satisfaction is the dominant variable. The complete results of the multiple linear regression analysis are presented in Table 4.
Table 4. Multiple Linear Regression Analysis Results
6. Hypothesis Testing
a. F-Test (Simultaneous)
The F-test results show that F-count = 26.385 > F-table = 2.67 with a significance value of 0.000 < 0.05. Therefore, H0 is rejected and Ha is accepted, meaning product quality, service quality, and customer satisfaction simultaneously have a significant effect on customer loyalty at Suweger Rungkut Branch. The coefficient of determination (R²) of 0.452 indicates that these three variables explain 45.2% of the variation in customer loyalty.
b. t-Test (Partial)
Based on the t-test results: (1) Product Quality (X1): t-count = 1.730 < t-table = 1.985 with sig. 0.087 > 0.05, so H2 is rejected, meaning product quality does not have a significant partial effect on customer loyalty. (2) Service Quality (X2): t-count = 1.636 < t-table = 1.985 with sig. 0.105 > 0.05, so H3 is rejected, meaning service quality does not have a significant partial effect on customer loyalty. (3) Customer Satisfaction (X3): t-count = 4.976 > t-table = 1.985 with sig. 0.000 < 0.05, so H4 is accepted, meaning customer satisfaction has a significant positive effect on customer loyalty.
1. Simultaneous Effect of Product Quality, Service Quality, and Customer Satisfaction on Customer Loyalty
The simultaneous test results prove that product quality, service quality, and customer satisfaction together have a significant effect on customer loyalty at Suweger Rungkut Branch, as evidenced by an F-count value of 26.385 which exceeds the F-table value of 2.67 with a significance value of 0.000 < 0.05, thus H0 is rejected and Ha is accepted. The coefficient of determination (R²) of 0.452 indicates that the three variables collectively explain 45.2% of the variation in customer loyalty, while the remaining 54.8% is influenced by other variables outside this research model. In the context of Suweger Rungkut Branch, product quality serves as the primary foundation reflecting the standards of taste, appearance, and freshness of beverages offered, service quality reflects the quality of customer interaction with employees, and customer satisfaction represents a comprehensive evaluation of the overall consumption experience — when these three variables interact optimally, they synergistically drive the formation of customer loyalty. This finding is consistent with the theory proposed by Oliver in Mahanani and Alam [11], which explains that customer loyalty is simultaneously influenced by various consumption experience factors including product quality, service quality, and customer satisfaction. This is also supported by Nilamanda and Prabowo [12] and Gunawan and Widoadmodjo [13], both of whom confirmed that the combination of these three variables contributes significantly to customer loyalty in the modern beverage industry.
2. Effect of Product Quality on Customer Loyalty
The partial test results show that product quality does not have a significant effect on customer loyalty at Suweger Rungkut Branch, with a t-count value of 1.730 < t-table of 1.985 and a significance value of 0.087 > 0.05, thus H2 is rejected. Descriptive statistical results show that product quality received a “High” rating with a grand mean of 3.84 measured through fourteen indicators such as beverage appearance, presentation standards, menu variety, taste consistency, product safety, presentation cleanliness, ingredient freshness, and temperature appropriateness. The highest mean value was shown by the product variety indicator at 3.91, while the lowest was the freshness of presentation indicator at 3.72, indicating that although customers generally assess product quality positively, some aspects still need improvement. This finding is inconsistent with studies by Sanjaya [4] and Febryanti et al. [5] who found that product quality has a significant effect on customer loyalty, suggesting that the influence of product quality may differ depending on the business context and customer characteristics. According to Agustin [14], product variations, price, and taste are factors that can influence customer loyalty, indicating that price perception may function as a more dominant factor for Suweger Rungkut customers than product quality alone. It can therefore be concluded that although product quality at Suweger Rungkut Branch is already good, it does not significantly influence customer loyalty because other variables outside this study play a stronger role in shaping loyalty decisions.
3. Effect of Service Quality on Customer Loyalty
Service quality partially does not have a significant effect on customer loyalty at Suweger Rungkut Branch, with a t-count value of 1.636 < t-table of 1.985 and a significance value of 0.105 > 0.05, thus H3 is rejected. Descriptive statistical analysis shows that service quality measured through fifteen indicators such as facility cleanliness, equipment adequacy, employee appearance, service reliability, service speed, employee responsiveness, knowledge and courtesy assurance, and individual attention to customers received a grand mean of 3.65 in the “High” category. The highest mean values were shown by service consistency and employee politeness at 3.73 each, while the lowest was employee knowledge about products and services at 3.51, indicating there are still aspects of service quality that require improvement. This result does not align with findings from Sanjaya [4] and Febryanti et al. [5] who found that service quality has a significant positive effect on customer loyalty, suggesting the relationship between service quality and loyalty is context-dependent. In the context of Suweger Rungkut Branch which operates with a grab-and-go concept, customers tend to focus more on the efficiency of the ordering process and overall satisfaction rather than evaluating individual service quality dimensions in detail. According to Ramadhan et al. [15], price and customer satisfaction are the dominant factors influencing customer loyalty, which aligns with this study where customer satisfaction emerged as the most significant variable while service quality did not show a direct significant partial effect. It can therefore be concluded that although service quality at Suweger Rungkut Branch is already good, it does not significantly influence customer loyalty because other variables, particularly customer satisfaction, play a more dominant role in shaping loyalty behavior.
4. Effect of Customer Satisfaction on Customer Loyalty
Customer satisfaction has a significant positive effect on customer loyalty at Suweger Rungkut Branch, with a regression coefficient (β) of 0.454, a t-count value of 4.976 > t-table of 1.985, and a significance value of 0.000 < 0.05, thus H4 is accepted, confirming that customer satisfaction is the most dominant variable influencing customer loyalty in this study. Descriptive statistical analysis shows that customer satisfaction measured through eight indicators such as conformity of product performance with expectations, overall satisfaction, pleasure after purchase, product ability to exceed expectations, service experience conformity, price conformity with quality, and perceived value from purchase received a grand mean of 3.85 in the “High” category. The highest mean was shown by the overall satisfaction indicator at 3.97, while the loyalty variable received a grand mean of 3.78 with the highest loyalty indicator being resistance to switching to competitor products at 3.90, reflecting strong customer commitment to the Suweger brand. Customer satisfaction functions as a comprehensive evaluation that integrates the entire consumption experience — product, service, price, and perceived value — making it the most complete construct that directly captures what drives a customer to remain loyal. The regression coefficient of 0.454 is significantly larger than those of product quality (0.084) and service quality (0.083), further reinforcing that customer satisfaction is not only statistically significant but also practically the most impactful variable in this model. This result is consistent with the theory proposed by Kotler and Keller [7], and is supported by Nilamanda and Prabowo [12] and Fadillah and Tanjung [8], both of whom confirmed that customer satisfaction has a positive and significant effect on customer loyalty in the Food and Beverage industry.
This study concludes that product quality, service quality, and customer satisfaction simultaneously have a significant effect on customer loyalty at Suweger Rungkut Branch (F-count = 26.385, sig. = 0.000, R² = 45.2%). Partially, product quality (sig. 0.087 > 0.05) and service quality (sig. 0.105 > 0.05) do not have a significant effect on customer loyalty, while customer satisfaction (β = 0.454, sig. 0.000 < 0.05) is proven to be the dominant variable that most directly and significantly influences customer loyalty. These findings indicate that although product quality and service quality have been rated positively by customers, they function more as baseline expectations rather than direct loyalty drivers in this context. Customer satisfaction, which integrates the totality of the consumption experience including product, service, and perceived value, is the key determinant of loyalty at Suweger Rungkut Branch. Management should therefore prioritize comprehensive strategies to enhance customer satisfaction, supported by consistent improvements in product quality and service responsiveness, to build and sustain loyalty in the competitive modern beverage market. Future research is recommended to include additional variables such as price perception and brand image using broader samples across multiple branches.
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