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September 17, 20250 citations

Does Service Quality and Store Atmosphere Influence Customer Loyalty Insight?

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RSRidwan SanjayaAAAnwar AzaziBPBintoro Bagus Purmono

Key Points

  • Service quality and store atmosphere significantly impact customer loyalty at Fore Coffee, improving retention rates.
  • Data analysis showed that enhanced customer satisfaction mediates the relationship between store atmosphere and customer loyalty.
  • Structural equation modeling was employed to analyze the interactions between independent, dependent, and mediation variables.
  • Results suggest that coffee shops need to innovate in service and ambiance to thrive amidst growing competition in Indonesia.

Abstract

In Indonesia, the presence of a coffee shop as a place to sip coffee has been ingrained in the culture. Previously, people simply drank coffee in ordinary coffee shops. Currently, coffee drinking has become more luxurious. Fore Coffee is one of the coffee shops many people currently visit. Entrepreneurs are becoming more interested in opening a coffee shop as the number of coffee lovers rises from year to year; consequently, competition is intensifying in this industry. In facing business competition, efforts are needed to attract and retain customers. Fore Coffee presents a futuristic location concept and offers innovative services to consumers. This study aims to determine the magnitude of service quality and store atmosphere for customer loyalty mediated by customer satisfaction at Fore Coffee Indonesia. The hypotheses were tested with a causal design approach. The test tool to see the relationship of independent, dependent, and mediation variables using Structural Equation Modeling (SEM) with the AMOS 24 statistical tool. The data collection method used a questionnaire, with the number of samples used in this study were 200 respondents.

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Cite This Study

Sanjaya et al. (2023) studied this question.

synapsesocial.com/papers/68d4768331b076d99fa6eea2https://doi.org/10.47310/hjebm.2023.v04i01.002
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