An Empirical Analysis of Factors Influencing Brand Equity in Coffee Shops: A Study of Jakarta, Indonesia

The rapid growth of the coffee shop industry in Jakarta is a direct consequence of Indonesia’s strong contribution to global coffee production as the world’s fourth-largest coffee producer. The number of coffee shops in Indonesia has reached 10,000 outlets. Due to increased competition among coffee shops, businesses are offering better service quality, innovative products, and improved ambiance and atmosphere to enhance brand loyalty, which eventually contributes to brand equity. However, limited studies have investigated the brand equity factors of coffee shop brands in Jakarta, despite the intense market competition among them. This study investigates how various brand-related factors, such as brand awareness, perceived quality, brand association, and brand loyalty, influence the overall brand equity of coffee shop brands in this highly competitive market. This study adopted a descriptive, explorative, and cross-sectional design with quantitative methods to analyze data collected from a representative sample of coffee shop consumers in Jakarta. Data were collected from 390 respondents from Jakarta city of Indonesia from 390 respondents from Jakarta, Indonesia, and were analyzed using SmartPLS. The statistical analysis confirms that there is a significant relationship between the four factors and brand equity, with perceived quality being the most influential factor among the study variables. This study provides strategic managerial recommendations for coffee shop businesses in Jakarta to enhance brand equity, underscoring the vital role of superior perceived quality while supporting sustainable business growth.