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- Title
Predictors of customer loyalty towards South African independent coffee shops: A mixed-method approach.
- Authors
Kühn, Stefanie
- Abstract
With the increased customer demand for and reduced price sensitivity towards premium coffee beverages, the number of South African independent coffee shops has surged over the past ten years. Yet most independent coffee shops close their doors within five years from opening. Although customer loyalty is key to ensure business survival and longevity, studies focusing on the predictors of customer loyalty are limited in the South African independent coffee shop context. Drawing from the stimulus-organismresponse (S-O-R) framework and Bitner's servicescape model, this study used a two-phase exploratory mixedmethod research design to determine the predictors of customer loyalty towards South African independent coffee shops. The results from the qualitative research phase (Study 1) revealed several predictors of customer loyalty, namely coffee quality, aesthetics, staff interaction, location, and facilities for customers to work, which in turn can lead to customer satisfaction and loyalty. A hypothesised model to obtain customer loyalty was developed and then tested in the quantitative research phase (Study 2), using partial least square structural equation modelling (PLS-SEM). The model revealed the presence of several direct and conditional effects on customers' loyalty. Independent coffee shop owners/managers can use this study's findings to prioritise their strategic resources and to secure customer loyalty.
- Subjects
CUSTOMER loyalty; COFFEE shops; CUSTOMER satisfaction; STRUCTURAL equation modeling; PRICE sensitivity; COFFEE
- Publication
Management Dynamics / Bestuursdinamika, 2021, Vol 30, Issue 1, p16
- ISSN
1019-567X
- Publication type
Article