Local Coffee Shop Use of Sensory Marketing to Maintain Customer Loyalty: The Mediating Role of Customer Satisfaction

Abstract

Indonesia boasts the world's fourth-highest coffee consumption, with demand steadily rising. Interestingly, nearly 25% of coffee drinkers are social drinkers, which means they enjoy coffee primarily when catching up with friends at cafes. However, the coffee shop market is saturated, leading to fierce competition among coffee shops struggling to retain customers. Loyalty is scarce, with most customers flitting between cafes. This study explores whether customer satisfaction mediates the impact between sensory marketing and loyalty. This study aims to analyze and test this connection within the Indonesian coffee shop landscape. This research focuses on loyal customers of the chosen cafes, targeting those who have visited more than once. The method used in this study is quantitative with the technique of distributing questionnaires, then the results will be calculated using SMART PLS ver. 3.9 accompanied by descriptive analysis for explanation. The study indicates that sensory marketing strategies can boost customer satisfaction, which in turn contributes to loyalty. The research recommends that businesses focus on sensory marketing as it is vital for building lasting connections with customers and retaining their loyalty.