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Understanding customer loyalty in the coffee shop industry (A survey in Jakarta, Indonesia)

Prameswari Purnamadewi Dhisasmito (Department of Business, President University, Bekasi, Indonesia)
Suresh Kumar (Department of Business, President University, Bekasi, Indonesia)

British Food Journal

ISSN: 0007-070X

Article publication date: 6 April 2020

Issue publication date: 11 June 2020

2857

Abstract

Purpose

The purpose of this study is to identify the drivers of loyalty model in the coffee shop industry in Indonesia based on service quality, store atmosphere and price fairness mediated by customer satisfaction.

Design/methodology/approach

The sample size used for this study was 384 customers from 16 most comfortable coffee shops in Jakarta based on Nibble's survey. Confirmatory factor analysis was employed to confirm the attributes of each factor and to assess the validity and reliability, average variance extracted and composite reliability was applied. Further hypothesis testing was performed using structural equation modeling.

Findings

The result shows that customer loyalty is affected by service quality – comprising 5 subdimensions: tangible, reliability, responsiveness, assurance and empathy – and price fairness mediated by customer satisfaction. It was found that service quality plays a significant role in the coffee shop industry in Indonesia. However, the store atmosphere was found rejected.

Originality/value

This is the first study integrating service quality, store atmosphere, price fairness and customer satisfaction to study the customer loyalty model in the coffee shop industry in Jakarta.

Keywords

Citation

Dhisasmito, P.P. and Kumar, S. (2020), "Understanding customer loyalty in the coffee shop industry (A survey in Jakarta, Indonesia)", British Food Journal, Vol. 122 No. 7, pp. 2253-2271. https://doi.org/10.1108/BFJ-10-2019-0763

Publisher

:

Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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