Abstract:

The rapid growth of coffee shops in Makassar has raised environmental concerns, shifting consumer attitudes toward sustainability. However, a gap remains between attitudes and behavior, where high environmental awareness does not always translate into loyalty. This study aims to analyze the determinants of customer loyalty by integrating Environmental Awareness and Sustainability Practices, and positioning Brand Image as a mediating variable. Using a quantitative approach, data were collected from 260 specialty coffee shop consumers in Makassar and analyzed using PLS-SEM. The research results reveal different mechanisms in the formation of loyalty. Although both independent variables had a significant direct influence on loyalty, the mediation analysis showed contrasting results. Sustainability practices were shown to have a significant effect on loyalty through brand image, while environmental awareness had no effect on customer loyalty through brand image, indicating green skepticism. This suggests that for consumers in Eastern Indonesia, operational actions taken by companies are effective in building a credible image rather than mere awareness, which is susceptible to suspicions of greenwashing. These findings provide strategic insight for coffee shop businesses to prioritize tangible evidence of sustainability over superficial branding to gain customer loyalty.