A path analysis of customer loyalty of homegrown coffee shops in Davao region

Abstract

The main purpose of the study is to determine the factors that lead to customer loyalty of homegrown coffee shops. This study was also conducted to investigate the relationship of marketing mix, customer expectation, customer experience, customer satisfaction and customer loyalty among homegrown coffee shops. Quantitative study utilized descriptive correlational and causal comparative approach as the research design was utilized in this study. The study employed path analysis to allow the testing of hypothesis based on a proposed causal model. The data were obtained from the 580 homegrown coffee shop customers in Davao Region, Philippines. Sets of questionnaires were used as instruments. Pearson product moment correlation was used to determine the interrelationships between the marketing mix, customer expectation, customer experience, and customer satisfaction to customer loyalty. Multiple linear regression was performed to determine the signi icant predictor of customer loyalty. Path analysis was utilized in order to analyze the path relationships among the variables. The indings of the study revealed that the level of marketing mix, the level of customer expectation, the level of customer experience, the level of customer satisfaction, and the level of customer loyalty as perceived by the customers of homegrown coffee shops were all rated high. This means that there is a high customer satisfaction and customer loyalty in homegrown coffee shops in Davao Region. Moreover, marketing mix, customer expectation, customer experience, and customer satisfaction were highly correlated to customer loyalty. This indicates that the effect to marketing mix, customer expectation, customer experience and customer satisfaction would have a direct effect to customer loyalty. Meanwhile, all exogenous variables have signi icant direct in luence to customer loyalty. Furthermore, the inal model passed all the goodness of it indices criteria CMIN/DF, p-value, TLI, CFI, GFI, RMSEA, PCLOSE.

Positive emotions as underlying mechanism between customer gratitude and behavioural intentions

“…Customers of all regions tend to shop at the places where they 􀅫ind some recreational and pleasing activities along with buying of products (El-Adly & Eid, 2016). In almost all business sectors including shopping malls, customer retention is becoming prime focus, and this can only be done by facilitating the customers in multiple ways (El-Adly & Eid, 2016;Recamadas, 2018). Therefore, the places which provides more entertainment, and create more value to the customers are considered to be more value driven and result into satis􀅫ied and loyal customers (El-Adly & Eid, 2016).…”

Structure and Measurement of Customer Experience Management

“…Positive as well as negative experiences related to purchase activities reflects the satisfaction level of the consumers (Meyer & Schwager, 2007), whereas, a customer's decision making process for purchase of any product or service is largely based on these experiences (Wilson, Zeithaml, Bitner, & Gremler, 2012). The sets of interactions among customers and organizations are very important for the types of experiences customers encounter, being directly impacting customer' emotional, spiritual and reactional levels (Hoffman & Novak, 2018;Gentile et al, 2007;Recamadas, 2018) and customers evaluate those experiences with fulfilment of their expectations as compared to organizational offerings (Gentile et al, 2007;LaSalle & Britton, 2003;Mansoor, Awan, & Syed, 2020). Multiple conceptualizations that exist in literature stated that it connects customers with originations emotionally, as it is entirely an internal feeling/thought of consumers based on the moments of interaction between consumers and organizations.…”

The Role of Methods of Service Encounter and Surprise in Customer Delight and Customer Loyalty in Indonesian Supermarkets

“…Subsequently, a surprise is crucial in inducing delight (Crotts, Magnini, et al, 2011), which precedes customer loyalty (Arnold, Reynolds, Ponder, & Lueg, 2005;Recamadas, 2018). Technology can be used by both customers and employees; in this paper, the usage of technology by customers, in particular, coined SSTs (Meuter, Ostrom, Roundtree, & Bitner, 2000), was explored.…”