Coffee Shop Atmosphere Significantly Influences Brand Equity According to PLS-SEM Study

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FORMOSA NEWS

Recent research published in July 2026 reveals that atmospheric conditions or the physical environment of coffee shops have a positive and significant influence on the formation of brand equity. This research was conducted by Yhani Mardani from Universitas Informatika Dan Bisnis Indonesia, Bandung, highlighting how the physical environment not only visually captivates visitors but also serves as an essential strategy to build long-term loyalty and competitive advantage in the coffee shop industry.

Over the past decade, the global coffee shop industry has experienced rapid growth driven by changing consumer lifestyles seeking experiences and comfortable social spaces. Coffee shops are no longer just places to buy beverages, but spaces for interaction and comfort. Amid intensifying market competition, operators are challenged to differentiate themselves beyond product quality and pricing alone by creating distinctive physical environments.

To examine this phenomenon, the study applied a quantitative survey approach involving 210 customers who had visited and purchased products at coffee shops within the previous six months. Data collection was conducted using a structured questionnaire with a rating scale, while data analysis utilized advanced statistical modeling techniques to test the relationship between physical environment elements and brand value. Atmospheric conditions were modeled through four main dimensions (facility aesthetics, ambience, lighting, and table layout), while brand equity was measured through brand awareness, brand association, perceived quality, and brand loyalty.

Based on data analysis, this research found several key findings:

• Atmospheric conditions were proven to exert a positive and significant influence on brand equity with a path coefficient of 0.543 and a high significance value ($p < 0.001$), where the physical environment accounted for 29.5% of the variance in brand equity.
• Facility aesthetics emerged as the most dominant dimension forming the coffee shop atmosphere with an indicator loading of 0.948, indicating that interior visual appeal and cleanliness are highly valued by consumers.
• From the brand equity perspective, perceived quality became the strongest dimension contributing to brand value with a value of 0.972, confirming that a good physical environment directly boosts consumer evaluations of service excellence.

These findings carry strong strategic implications for business and retail management. Yhani Mardani from Universitas Informatika Dan Bisnis Indonesia emphasizes that investment in the physical environment of coffee shops should not be viewed merely as operational expenditure, but as a strategic investment in brand development. Coffee shop managers are advised to prioritize interior aesthetics, warm lighting design, comfortable table layouts, and pleasant aromas and music to create memorable emotional experiences for consumers. This approach is proven effective in building brand awareness, positive associations, and customer loyalty amidst tight competition in the culinary creative industry.

Author Profile

• Full Name: Yhani Mardani
• University Affiliation: Universitas Informatika Dan Bisnis Indonesia, Bandung, Indonesia
• Field of Expertise: Retail Marketing, Consumer Behavior, and Brand Management

Research Source:

• Article Title: The Influence of Atmospheric Conditions on Brand Equity: A Partial Least Squares Structural Equation Modeling (PLS-SEM) Study of Coffee Shop Customers
• Journal Name: Contemporary Journal of Applied Sciences (CJAS), Vol. 4, No. 7, July 2026
• DOI: https://doi.org/10.55927/cjas.v4i7.203