Abstract

The level of coffee consumption is on a raging level, making the coffee shop business is also increasingly emerging in the form of both local coffee shops and international coffee shops. Coffee Corner is the first coffee shop in Langsa city that combines traditional and modern aspects in its presentation. To ensure business continuity, Kedai Coffee Corner has to create a strategy so that it can boost their customer satisfaction and loyalty by providing experience that can be formed through five dimensions of sense, feel, think, act and relate. This study aims to analyze the influence of experiential marketing on customer satisfaction and loyalty. Corner coffee shop customers of which criteria is above than 17 years old and willing to be respondents are taken and as many as 180 respondents are selected using accidental sampling technique, then the respondents fill out a questionnaire that contains a statement about the variables studied so that the data obtained will then be processed using Structural Equation Modeling (SEM). The result of the research shows that experiential marketing has a significant effect on customer satisfaction and loyalty either directly or indirectly. Experiential marketing is reflected by two dimensions that have the greatest contribution and those are sense and relate. Better quality and aroma of the coffee, as well as superiority in fragrant than other coffee shops, is the indicator that contributes the most to the sensory dimension. An excellent coffee image and quality of the presentation are the indicators that contribute the most to the relative dimension.

Highlights

  • The increasing level of coffee consumption in Indonesia has made the coffee shop business progressively emerging in the form of local coffee shops and foreign/ international outlets (USDA, 2015). Holbrook (2000) argues that today's business world is entering a new era called "experience marketing"

  • The results showed that respondents that are in the premises of this research which is Corner coffee shop is male and is equal to 88% or as many as 159 respondents and female consumers are only by 12% or as many as 21 respondents

  • The application of experiential marketing by Corner coffee shop has been excellent and able to be felt by the consumers

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Summary

Introduction

The increasing level of coffee consumption in Indonesia has made the coffee shop business progressively emerging in the form of local coffee shops and foreign/ international outlets (USDA, 2015). Holbrook (2000) argues that today's business world is entering a new era called "experience marketing". Experiential marketing is a marketing strategy that is utilized to influence one's emotions by creating an experience that consumers can feel when consuming a product or service that leads to a sense of satisfaction. The high consumer demand for ready-to-eat products and the culture of enjoying coffee that has become a lifestyle for the people of Aceh has become one of the reasons coffee shop business opportunities continue to progressively increase. This can be seen by the jolting number of new coffee shops emerging in the city of Langsa, to this day there are more than 17 names of new coffee shops and certainly are competitor for Corner coffee shop. This study would like to see the application of experiential marketing that has been applied by the Corner coffee shop and whether it can provide satisfaction and affected into loyalty to the consumers as a pioneer of the first coffee shop (in Langsa) does not lose their customers

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