An Analysis of Factors that Influence Customer Satisfaction and Loyalty In Local Coffee Shops

Abstract

The purpose of this research is to analyze the influence of the atmosphere, service quality, product quality, price on customer satisfaction, and customer satisfaction on customer loyalty at local coffee shops that embrace the culture of third-wave coffee shops. Data was collected through online questionnaires given to people who came to local coffee shops at least 3 times in the last 3 months. Out of 172 people who filled in the questionnaires, 114 people met the criteria as respondents. A data analysis was conducted using a Partial Least Squares - Structural Equation Model (PLS-SEM). The results of this research indicate that the atmosphere, service quality, and product quality have a positive influence on customer satisfaction. Also, customer satisfaction has a positive influence on customer loyalty. This research has value for organizations that want to maintain customer satisfaction and loyalty for their coffee shop management.