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BIREV: Business and Investment Review Jurnal manajemen dan ekonomi terbaik
Articles
DOI: 10.61292/birev.217
Published: 2025-10-20

The Innovation–Loyalty Nexus: Unpacking the Role of Perceived Quality in the Automotive Industry

Universitas Pembangunan Nasional "Veteran" Jawa Timur
Universitas Pembangunan Nasional “Veteran” Jawa Timur
Universitas Pembangunan Nasional “Veteran” Jawa Timur
Brand Innovativeness Brand Loyalty Perceived Quality

Abstract

This study investigates the effect of brand innovativeness on brand loyalty, with perceived quality as a mediating variable, in the context of Hyundai car consumers in West Java. Motivated by the highly competitive Indonesian automotive market where innovation is a key driver of customer retention, the research applies a quantitative design with purposive sampling of 120 respondents. Data were collected through an online survey and analyzed using Structural Equation Modeling with Partial Least Squares (SmartPLS). The results demonstrate that brand innovativeness significantly enhances both perceived quality and brand loyalty, while perceived quality exerts a positive effect on loyalty and mediates the relationship between innovativeness and loyalty. These findings underscore the strategic importance of continuous innovation complemented by improvements in after-sales service quality to reinforce Hyundai’s market position in an increasingly competitive environment.

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How to Cite

Nabila, Dermawan, R., & Azhar, R. M. (2025). The Innovation–Loyalty Nexus: Unpacking the Role of Perceived Quality in the Automotive Industry. Business and Investment Review, 3(6). https://doi.org/10.61292/birev.217