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

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.