The Effect of Customer Experience on Customer Satisfaction and Loyalty of Generation Z at Coffee Shops in Bengkulu City

Authors

  • Fadhillah Firdha Annisa Department of Management, Faculty of Economics and Business, University of Bengkulu, 38119 Kota Bengkulu, Bengkulu, Indonesia
  • Lizar Alfansi Department of Management, Faculty of Economics and Business, University of Bengkulu, 38119 Kota Bengkulu, Bengkulu, Indonesia
  • Akram Harmoni Wiardi Department of Management, Faculty of Economics and Business, University of Bengkulu, 38119 Kota Bengkulu, Bengkulu, Indonesia
  • M Iqbal Daulay Department of Management, Faculty of Economics and Business, University of Bengkulu, 38119 Kota Bengkulu, Bengkulu, Indonesia
  • Afrima Widianti Department of Management, Faculty of Economics and Business, University of Bengkulu, 38119 Kota Bengkulu, Bengkulu, Indonesia

DOI:

https://doi.org/10.56225/finbe.v2i3.293

Keywords:

Customer Experience, Customer Satisfaction, Customer Loyalty

Abstract

In recent years, the global coffee industry has witnessed a remarkable surge in the preferences and behaviours of Generation Z consumers, born roughly between the mid-1990s and early 2010s. With their distinctive characteristics and preferences, Generation Z has become a significant demographic segment shaping consumer trends, particularly coffee shops. This study examines the effect of customer experience on the satisfaction and loyalty of Generation Z at coffee shops in Bengkulu City, Indonesia. This study is designed using a quantitative approach through a survey questionnaire. A total of 360 Generation Z in Bengkulu City participated and collected purposively. The data were analyzed using the SEM-PLS. The results of this study show that customer experience has a positive and significant effect on customer satisfaction and loyalty. Customer Satisfaction has a positive and significant effect on loyalty. This study concludes that the relationship between customer experience, satisfaction, and loyalty is pivotal in understanding consumer behaviour and fostering enduring customer relationships. It indicates that customer experience is crucial in influencing customer satisfaction and loyalty. When customers have positive experiences with a brand or business, they are more likely to be satisfied with their interactions and develop a sense of loyalty towards the brand. Also, customer satisfaction itself has been shown to have a direct and positive impact on customer loyalty. Satisfied customers are more inclined to continue patronizing and recommending a business to others, thus contributing to long-term loyalty and profitability. Recognizing the significance of enhancing customer experience and satisfaction can lead to stronger customer loyalty and sustainable business growth.

References

Ali, F. (2016). A study on holistic customer experience in selected resort hotels in China: Supervisors: Associate Professor Dr. Rosmini Binti Omar Institution awarding the Ph. D. Degree: Universiti Teknologi Malaysia, International Business School (Malaysia) Date of defence: 15/04/2015. European Journal of Tourism Research, 12, 212–215.

Ariffin, R. N. R., & Zahari, R. K. (2013). Perceptions of the Urban Walking Environments. Procedia - Social and Behavioral Sciences, 105, 589–597. https://doi.org/10.1016/j.sbspro.2013.11.062

Arnold, M. J., & Reynolds, K. E. (2003). Hedonic shopping motivations. Journal of Retailing, 79(2), 77–95. https://doi.org/10.1016/S0022-4359(03)00007-1

Ayuni, R. F. (2019). The online shopping habits and e-loyalty of Gen Z as natives in the digital era. Journal of Indonesian Economy and Business, 34(2), 168. https://doi.org/10.22146/jieb.39848

Babin, B. J., Darden, W. R., & Griffin, M. (1994). Work and/or Fun: Measuring Hedonic and Utilitarian Shopping Value. Journal of Consumer Research, 20(4), 644–656. https://doi.org/10.1086/209376

Badan Pusat Statistik Indonesia. (2020). The 2020 Population Census (pp. 1–5). The.

Bitner, M. J. (1992). Servicescapes: The Impact of Physical Surroundings on Customers and Employees. Journal of Marketing, 56(2), 57–71. https://doi.org/10.2307/1252042

Brown, A. (2020). Everything you’ve wanted to know about Gen Z but were afraid to ask. Forbes Business, from https://www. forbes. com/sites/abrambrown/2020/09/23 ….

Chilkoti, A. (2016). Indonesia’s aspiring coffee kings.

Dagustani, D. (2011). Analisis Hubungan Customer Experience Terhadap Loyalitas Pelanggan Pada Café Gossip. In InSearch, Universitas Informatika dan Bisnis Indonesia-1 of (Vol. 9, pp. 16–27).

e Sá, P. M., & Amorim, M. (2020). Opportunities and challenges raised by Customer-to-Customer Interaction to service operations management: a quality management perspective. In Emerging Topics in Management Studies. Imprensa da Universidade de Coimbra.

Fakharyan, M., Omidvar, S., Khodadadian, M. R., Jalilvand, M. R., & Nasrolahi Vosta, L. (2014). Retracted Article: Examining the Effect of Customer-to-Customer Interactions on Satisfaction, Loyalty, and Word-of-Mouth Behaviors in the Hospitality Industry: The Mediating Role of Personal Interaction Quality and Service Atmospherics. Journal of Travel & Tourism Marketing, 31(5), 610–626. https://doi.org/10.1080/10548408.2014.884964

Fornell, C. (1992). A National Customer Satisfaction Barometer: The Swedish Experience. Journal of Marketing, 56(1), 6–21. https://doi.org/10.2307/1252129

Francis, T., & Hoefel, F. (2018). True Gen’: Generation Z and its implications for companies. McKinsey & Company, 10, 2–10.

Gentile, C., Spiller, N., & Noci, G. (2007). How to Sustain the Customer Experience: European Management Journal, 25(5), 395–410. https://doi.org/10.1016/j.emj.2007.08.005

Grewal, D., Levy, M., & Kumar, V. (2009). Customer Experience Management in Retailing: An Organizing Framework. Journal of Retailing, 85(1), 1–14. https://doi.org/10.1016/j.jretai.2009.01.001

Gruen, T. W., Osmonbekov, T., & Czaplewski, A. J. (2006). eWOM: The impact of customer-to-customer online know-how exchange on customer value and loyalty. Journal of Business Research, 59(4), 449–456. https://doi.org/10.1016/j.jbusres.2005.10.004

Gupta, S., & Zeithaml, V. (2006). Customer Metrics and Their Impact on Financial Performance. Marketing Science, 25(6), 718–739. https://doi.org/10.1287/mksc.1060.0221

Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203

Hijir, P. (2016). Efek Customer Customer Interaction Terhadap Satisfaction Dan Word of Mouth Pada Hotel Mandarin Oriental. Jurnal Manajemen Dan Pemasaran Jasa, 8(2), 101–114. https://doi.org/10.25105/jmpj.v8i2.1594

Hsu, C. H. C. (2006). Tourist Behaviour: Themes and Conceptual Schemes. Annals of Tourism Research, 33(3), 874–875. https://doi.org/10.1016/j.annals.2006.03.004

Kandampully, J. (2000). The impact of demand fluctuation on the quality of service: a tourism industry example. Managing Service Quality: An International Journal, 10(1), 10–19. https://doi.org/10.1108/09604520010307012

Kao, Y.-F., Huang, L.-S., & Wu, C.-H. (2008). Effects of Theatrical Elements on Experiential Quality and Loyalty Intentions for Theme Parks. Asia Pacific Journal of Tourism Research, 13(2), 163–174. https://doi.org/10.1080/10941660802048480

Kariyasa, K., & Dewi, Y. A. (2013). Analysis of factors affecting adoption of integrated crop management farmer field school (ICM-FFS) in swampy areas. International Journal of Food and Agricultural Economics (IJFAEC), 1(2), 29–38.

Kaur, H., & Soch, H. (2018). Satisfaction, trust and loyalty: investigating the mediating effects of commitment, switching costs and corporate image. Journal of Asia Business Studies, 12(4), 361–380. https://doi.org/10.1108/JABS-08-2015-0119

Kotler, P. (2009). Marketing management: A south Asian perspective. Pearson Education India.

Lenaini, I. (2021). Teknik pengambilan sampel purposive dan snowball sampling. Historis: Jurnal Kajian, Penelitian Dan Pengembangan Pendidikan Sejarah, 6(1), 33–39.

Linnes, C., & Metcalf, B. (2017). iGeneration And Their Acceptance of Technology. International Journal of Management & Information Systems (IJMIS), 21(2), 11–26. https://doi.org/10.19030/ijmis.v21i2.10073

Loureiro, S. M. C. (2010). Satisfying and Delighting the Rural Tourists. Journal of Travel & Tourism Marketing, 27(4), 396–408. https://doi.org/10.1080/10548408.2010.481580

Margono, S. S., Subahar, R., Hamid, A., Wandra, T., Sudewi, S. S. R., Sutisna, P., & Ito, A. (2001). Cysticercosis in Indonesia: epidemiological aspects. Southeast Asian Journal of Tropical Medicine and Public Health, 32(2), 79–84.

Meyer, C., & Schwager, A. (2007). Understanding customer experience. Harvard Business Review, 85(2), 116.

Novitasari, S. (2012). Pengaruh Customer Experience Terhadap Loyalitas Konsumen Pengguna Handphone Blackberry Pada Mahasiswa Universitas Jember.

Nugroho, R., & Japarianto, E. (2013). Pengaruh people, physical evidence, product, promotion, price dan place terhadap tingkat kunjungan di kafe coffee cozies Surabaya. Jurnal Manajemen Pemasaran Petra, 1(2), 1–9.

Oeyono, J. T. (2013). Analisa pengaruh experiential marketing terhadap loyalitas konsumen melalui kepuasan sebagai intervening variabel di tator cafe surabaya town square. Jurnal Strategi Pemasaran, 1(2), 1–9.

Pareigis, J., Edvardsson, B., & Enquist, B. (2011). Exploring the role of the service environment in forming customer’s service experience. International Journal of Quality and Service Sciences, 3(1), 110–124. https://doi.org/10.1108/17566691111115117

Peng, C., & Kim, Y. G. (2014). Application of the Stimuli-Organism-Response (S-O-R) Framework to Online Shopping Behavior. Journal of Internet Commerce, 13(3–4), 159–176. https://doi.org/10.1080/15332861.2014.944437

Purwadi, Y. S., & Manurung, E. M. (2020). Cafes: New Learning and Knowledge Production Space for Millennial Students. Journal of Economics and Business, 3(1), 1–8. https://doi.org/10.31014/aior.1992.03.01.194

Puspasari, A. (2014). Pengaruh kualitas produk terhadap word of mouth melalui kepuasan pelanggan. Sumber, 2(4), 1737–1748.

Rahi, S. (2017). Research Design and Methods: A Systematic Review of Research Paradigms, Sampling Issues and Instruments Development. International Journal of Economics & Management Sciences, 06(02), 1–5. https://doi.org/10.4172/2162-6359.1000403

Ryu, K., & Jang, S. S. (2007). The Effect of Environmental Perceptions on Behavioral Intentions Through Emotions: The Case of Upscale Restaurants. Journal of Hospitality & Tourism Research, 31(1), 56–72. https://doi.org/10.1177/1096348006295506

Santosa, E. T. (2015). Raising children in digital era. Elex Media Komputindo.

Schmitt, B. (1999). Experiential Marketing. Journal of Marketing Management, 15(1–3), 53–67. https://doi.org/10.1362/026725799784870496

Sholihin, M., & Ratmono, D. (2013). Analysis of SEM-PLS with WarpPLS 3.0 for nonlinear relations in social and business research. In Yogyakarta: Andi Publisher.

Slåtten, T., Svensson, G., & Sværi, S. (2011). Empowering leadership and the influence of a humorous work climate on service employees’ creativity and innovative behaviour in frontline service jobs. International Journal of Quality and Service Sciences, 3(3), 267–284. https://doi.org/10.1108/17566691111182834

Steven, A. B., Dong, Y., & Dresner, M. (2012). Linkages between customer service, customer satisfaction and performance in the airline industry: Investigation of non-linearities and moderating effects. Transportation Research Part E: Logistics and Transportation Review, 48(4), 743–754. https://doi.org/10.1016/j.tre.2011.12.006

Sudaryono, B. (2012). Analisis Manajemen Risiko Perusahaan (Enterprise Risk Management) Dan Kepatuhan (Compliance) Terhadap Kinerja Perusahaaan. Media Riset Bisnis & Manajemen, 12(3), 180–198. https://doi.org/10.25105/mrbm.v12i3.1113

Summers, J. O. (2001). Guidelines for Conducting Research and Publishing in Marketing: From Conceptualization through the Review Process. Journal of the Academy of Marketing Science, 29(4), 405–415. https://doi.org/10.1177/03079450094243

Surajiyo, S. E., Nasruddin, S. E., & Herman Paleni, S. H. I. (2020). Penelitian Sumber Daya Manusia, Pengertian, Teori Dan Aplikasi (Menggunakan IBM SPSS 22 For Windows). Deepublish.

Susanty, A., & Kenny, E. (2015). The Relationship between Brand Equity, Customer Satisfaction, and Brand Loyalty on Coffee Shop: Study of Excelso and Starbucks. ASEAN Marketing Journal, 7(1), 14–27. https://doi.org/10.21002/amj.v7i1.4481

Sweetman, D., Badiee, M., & Creswell, J. W. (2010). Use of the Transformative Framework in Mixed Methods Studies. Qualitative Inquiry, 16(6), 441–454. https://doi.org/10.1177/1077800410364610

Tonge, J., Moore, S., Ryan, M., & Beckley, L. (2013). Using Photo‑Elicitation to Explore Place Attachment in a Remote Setting. Electronic Journal of Business Research Methods, 11(1), 41–50.

Tu Yu-Te Hsiao-Chien Chang. (2012). Corporate Brand Image and Customer Satisfaction on Loyalty: An Empirical Study of Starbucks Coffee in Taiwan. Journal of Social and Development Sciences, 3(1), 24–32. https://doi.org/10.22610/jsds.v3i1.682

Verhoef, P. C., Lemon, K. N., Parasuraman, A., Roggeveen, A., Tsiros, M., & Schlesinger, L. A. (2009). Customer Experience Creation: Determinants, Dynamics and Management Strategies. Journal of Retailing, 85(1), 31–41. https://doi.org/10.1016/j.jretai.2008.11.001

Walls, A. R., Okumus, F., Wang, Y. R., & Kwun, D. J.-W. (2011). An epistemological view of consumer experiences. International Journal of Hospitality Management, 30(1), 10–21. https://doi.org/10.1016/j.ijhm.2010.03.008

Wardhana, R. E. (2016). Pengaruh Customer Experience Terhadap Loyalitas Pelanggan Dengan Kepuasan Pelanggan Sebagai Variabel Intervening (Studi Pada Konsumen Mie Rampok Tahanan Surabaya). Jurnal Ilmu Manajemen, 4(3), 1–9.

Wijaya, L., & Rizka, L. A. (2021). Studi Brand Positioning Toko Kopi Kekinian di Indonesia. Eqien-Jurnal Ekonomi Dan Bisnis, 8(1), 78–85.

Wood, J., James, W., & Santrock, R. (2010). Arthroscopic Ankle Arthrodesis With Bimalleolar External Fixation. Techniques in Foot & Ankle Surgery, 9(3), 142–146. https://doi.org/10.1097/BTF.0b013e3181ecb0ed

Zeithaml, V. A. (2009). Marketing de servicios. Biblioteca Hernán Malo González.

Downloads

Published

2023-12-31

How to Cite

Annisa, F. F., Alfansi, L., Wiardi, A. H., Daulay, M. I., & Widianti, A. . (2023). The Effect of Customer Experience on Customer Satisfaction and Loyalty of Generation Z at Coffee Shops in Bengkulu City. Frontiers in Business and Economics, 2(3), 154–163. https://doi.org/10.56225/finbe.v2i3.293
Abstract viewed = 324 times