Brewing Loyalty: The Mediating Role of Customer Retention between Experience, Product Quality, and Sustainable Patronage in Premium Coffee Shops
DOI:
https://doi.org/10.47747/fmiic.vi2.2962Abstract
This study investigates how customer experience and product quality shape sustainable patronage in the premium coffee shop industry, with a specific focus on the mediating effect of customer retention. Drawing on Relationship Marketing and Service-Dominant Logic, the research uses a quantitative approach and surveys 173 repeat customers from premium coffee shops in Makassar, Indonesia. Data analysis employing SEM-PLS demonstrates that both customer experience and product quality significantly influence customer retention, which in turn has a strong and significant impact on customer loyalty. Importantly, customer retention fully mediates the relationship between experience, product quality, and loyalty, revealing a unique pathway for sustainable competitive advantage. These findings offer actionable guidance for managers and contribute new theoretical insights for understanding loyalty formation in emerging market contexts.
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