The Impact of Price, Service Quality, and Store Atmosphere on Customer Loyalty: A Starbucks Reserve Study
DOI:
https://doi.org/10.61978/commercium.v3i2.510Keywords:
Price Perception, Service Quality, Store Atmosphere, Customer LoyaltyAbstract
This study analyzes the influence of Price Perception, Service Quality, and Store Atmosphere on Customer Satisfaction and Customer Loyalty at Starbucks Reserve Plaza Senayan Jakarta. This study applied a quantitative research design, and the data were collected through structured questionnaires to 290 respondents. This study employed Structural Equation Modeling- Partial Least Squares (SEM-PLS) to test hypotheses empirically. Empirical findings confirm that Service Quality and Price Perception positively and significantly affect Customer Satisfaction, a key driver of Customer Loyalty. Store Atmosphere directly improves customer satisfaction, though with an uncertain statistical correlation with Customer Loyalty. These results emphasize pricing and service differentiation as the most critical factors in keeping a customer, particularly for the rival coffee shop market. This study contributes to the literature by offering implications of consumer behavior in the luxury coffee shop market and supplying managerial recommendations for Starbucks and other luxury coffee brands. The results suggest that firms should focus on value-based pricing and services to promote customer loyalty. The study also indicates the need to conduct further research on the indirect effect of store atmosphere on customer engagement in the long term.
References
Almanwari, H. S. A., Saad, N. H. M., & Zainal, S. R. M. (2024). The influence of environment & location, personal motivation, and fee & price on satisfaction, attituding and behavioural loyalty among international students in Oman. Journal of Open Innovation.
Balinado, J. R., Prasetyo, Y. T., Young, M. N., Persada, S. F., Miraja, B. A., & Redi, A. A. N. P. (2021). The effect of service quality on customer satisfaction in an automotive after-sales service. Journal of Open Innovation: Technology, Market, and Complexity, 7(2), 116.
Bankuoru Egala, S., Boateng, D., & Aboagye Mensah, S. (2021). To leave or retain? An interplay between quality digital banking services and customer satisfaction. International Journal of Bank Marketing, 39(7), 1420–1445.
Beaumais, O., & Sourd, R. (2024). Modeling Quality and Price Perception in the Choice of Drinking Water in France: A Hybrid Choice Model Approach. Water Resources Research, 60(2), 2023 034803.
Borishade, T. T., Ogunnaike, O. O., Salau, O., Motilewa, B. D., & Dirisu, J. I. (2021). Assessing the relationship among service quality, student satisfaction and loyalty: the NIGERIAN higher education experience. Heliyon, 7(7).
Bruckberger, G., Fuchs, C., Schreier, M., & Osselaer, S. M. (2023). Retailing Groundedness: How to improve customer experience, brand perceptions, and customer loyalty through feelings of groundedness. Journal of Retailing, 99(4), 594–604.
Cankül, D., Kaya, S., & Kızıltaş, M. Ç. (2024). The effect of gastronomic experience on restaurant image, customer perceived value, customer satisfaction and customer loyalty. International Journal of Gastronomy and Food Science, 36, 100908.
Chao, S.-L., Yu, M.-M., & Sun, Y.-H. (2023). Ascertaining the effects of service quality on customer loyalty in the context of ocean freight forwarders: An integration of structural equation modeling and network data envelopment analysis. Research in Transportation Business & Management, 47, 100955.
Chen, Q., Lu, Y., Gong, Y., & Xiong, J. (2023). Can AI chatbots help retain customers? Impact of AI service quality on customer loyalty. Internet Research, 33(6), 2205–2243.
Cheung, A. K.-L. (2021). Structured questionnaires. In Encyclopedia of quality of life and well-being research (pp. 1–3). Springer.
Cui, L., He, S., Deng, H., & Wang, X. (2023). Sustaining customer loyalty of fresh food e-tailers: an empirical study in China. Asia Pacific Journal of Marketing and Logistics, 35(3), 669–686.
Dam, S. M., & Dam, T. C. (2021). Relationships between service quality, brand image, customer satisfaction, and customer loyalty. The Journal of Asian Finance, Economics and Business, 8(3), 585–593.
Fida, B. A., Ahmed, U., Al-Balushi, Y., & Singh, D. (2020). Impact of service quality on customer loyalty and satisfaction in Islamic banks in the Sultanate of Oman. Sage Open, 10(2), 2158244020919517.
Francioni, B., Savelli, E., & Cioppi, M. (2018). Store satisfaction and store loyalty: The moderating role of store atmosphere. Journal of Retailing and Consumer Services, 43, 333–341.
Freitas, V. V, Borges, L. L. R., Vidigal, M. C. T. R., Santos, M. H., & Stringheta, P. C. (2024). Coffee: A comprehensive overview of origin, market, and the quality process. Trends in Food Science & Technology, 104411.
Hride, F. T., Ferdousi, F., & Jasimuddin, S. M. (2022). Linking perceived price fairness, customer satisfaction, trust, and loyalty: A structural equation modeling of Facebook‐based e‐commerce in Bangladesh. Global Business and Organizational Excellence, 41(3), 41–54.
Jeaheng, Y., Al-Ansi, A., & Han, H. (2020). Impacts of Halal-friendly services, facilities, and food and Beverages on Muslim travelers’ perceptions of service quality attributes, perceived price, satisfaction, trust, and loyalty. Journal of Hospitality Marketing & Management, 29(7), 787–811.
Joy, A., Wang, J. J., Orazi, D. C., Yoon, S., LaTour, K., & Peña, C. (2023). Co-creating affective atmospheres in retail experience. Journal of Retailing, 99(2), 297–317.
Jullien, B., Pavan, A., & Rysman, M. (2021). Two-sided markets, pricing, and network effects. In Handbook of industrial organization (Vol. 4, pp. 485–592). Elsevier.
Liu-Thompkins, Y., Khoshghadam, L., Shoushtari, A. A., & Zal, S. (2022). What drives retailer loyalty? A meta-analysis of the role of cognitive, affective, and social factors across five decades. Journal of Retailing, 98(1), 92–110.
Mittal, V., Han, K., Frennea, C., Blut, M., Shaik, M., Bosukonda, N., & Sridhar, S. (2023). Customer satisfaction, loyalty behaviors, and firm financial performance: what 40 years of research tells us. Marketing Letters, 34(2), 171–187.
Ndengane, R. M., Mason, R. B., & Mutize, M. (2021). The influence of store atmospherics on customers’ satisfaction at selected South African retail outlets. Innovative Marketing, 17(1), 26.
Sarstedt, M., Ringle, C. M., & Hair, J. F. (2021). Partial least squares structural equation modeling. In Handbook of market research (pp. 587–632). Springer.
Shen, C., & Yahya, Y. (2021). The impact of service quality and price on passengers’ loyalty towards low-cost airlines: The Southeast Asia perspective. Journal of Air Transport Management, 91, 101966.
Slack, N., Singh, G., & Sharma, S. (2020). The effect of supermarket service quality dimensions and customer satisfaction on customer loyalty and disloyalty dimensions. International Journal of Quality and Service Sciences, 12(3), 297–318.
Supriyanto, A., Wiyono, B. B., & Burhanuddin, B. (2021). Effects of service quality and customer satisfaction on loyalty of bank customers. Cogent Business & Management, 8(1), 1937847.
Vilnai-Yavetz, I., Gilboa, S., & Mitchell, V. (2021). Experiencing atmospherics: The moderating effect of mall experiences on the impact of individual store atmospherics on spending behavior and mall loyalty. Journal of Retailing and Consumer Services, 63, 102704.
Wu, Y., & Huang, H. (2023). Influence of perceived value on consumers’ continuous purchase intention in live-streaming e-commerce—mediated by consumer trust. Sustainability, 15(5), 4432.
Zhong, Y., & Moon, H. C. (2020). What drives customer satisfaction, loyalty, and happiness in fast-food restaurants in China? Perceived price, service quality, food quality, physical environment quality, and the moderating role of gender. Foods, 9(4), 460.
Zygiaris, S., Hameed, Z., Ayidh Alsubaie, M., & Ur Rehman, S. (2022). Service quality and customer satisfaction in the post-pandemic world: A study of the Saudi auto care industry. Frontiers in Psychology, 13, 842141.
