The Influence of Atmospheric Conditions on Brand Equity: A Partial Least Squares Structural Equation Modeling (PLS-SEM) Study of Coffee Shop Customers

This study examines the effect of Atmospheric Conditions on Brand Equity in the coffee shop industry. A quantitative survey of coffee shop customers was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Atmospheric Conditions were modeled as a higher-order construct comprising facility aesthetics, ambience, lighting, and table layout, while Brand Equity comprised brand awareness, brand association, perceived quality, and brand loyalty. Atmospheric Conditions positively and significantly influenced Brand Equity (β = 0.543, p < 0.001; R² = 0.295). Facility Aesthetics was the strongest dimension, whereas Perceived Quality contributed most to Brand Equity. The study validates a multidimensional higher-order model and highlights the strategic role of store atmosphere in strengthening brand equity and long-term competitiveness.