IMPACT OF CUSTOMER SATISFACTION, TRUST AND LOYALTY IN COFFEE SHOPS Abstract
This study examines the beneficial factors affecting customer loyalty through trust
and satisfaction, thereby improving operations and services, as well as product quality for
consumers in today's increasingly challenging and volatile coffee shop business market.
The study is mainly based on the customer's experience of the process of using the
services and products of coffee brands. Utilitarian, hedonic, and symbolic values play an
important role in determining the satisfaction and trust of the product to the user. The
opinion is that satisfaction and belief in high product quality and experience will foster
customer loyalty. Therefore, this study uses social exchange theory and PLS_SEM to
assess coffee brand benefits, including pragmatic, symbolic, and hedonistic, and how they
affect customer satisfaction, trust, and loyalty. From there, the results show that in order
to retain customers, coffee shop brands enhance symbolic values and should unify service
criteria to improve customer trust. In addition, training staff attitudes about service
delivery and communication increases customer satisfaction. Research supports the view
that effectiveness comes from customer experience. The benefits must therefore be
aligned with the key services and goods that coffee shops offer to enhance satisfaction
and trust. Hedonic benefits strongly influence consumer satisfaction, and pragmatic and
symbolic rewards also have different effects on their loyalty. 1. Introduction
1.1. Background of study
The coffee shop business is becoming increasingly volatile and difficult, so it is
not easy to grow and meet these challenges. Coffee shop operations are unique in that
they combine production and farming, or services, necessitating a range of disciplines to
fuel study and alteration (Kim et al., 2016). Consumers are less price-sensitive and less
likely to be swayed by competitors' moves when they have strong brand loyalty (Kim et
al., 2016). According to Wu (2017), the coffee shop chain separated businesses affected
by the experience economy. The size of the coffee market is getting bigger and bigger and
there is fierce competition among coffee firms. The coffeehouse experience is primarily
seen as a kind of immersive consumerism (Wu, 2017). As a result, instead of the services
provided by the coffee company, customers' perceptions of the coffee firm's quality are
more closely tied to their experience of eating (Wu, 2017). Enhancing customer
experience loyalty has become a crucial problem in order to entice clients to go back to
chain cafes (Wu, 2017). Wu et al. (2018) argue that experience quality affects experience
satisfaction, that ultimately results in experienced loyalty. It has been suggested that
perceived value acts as a mediator between the quality and enjoyment of an experience;
the better the experience's quality, the greater it is regarded as having value, and the
higher the perceived value, the higher the satisfaction with the experience. Wu et al.,
(2018) propose that a high-quality offering is necessary to develop and nurture trust,
which in turn, leads to satisfaction. Wu et al. (2018) found that trust strongly affects loyalty.
A number of studies examine the quality of experience for the coffee industry,
cover a wide range of neurological and physical characteristics between experience
quality, satisfaction experience, perceived value, experience belief, etc. Experience, and
loyalty experiences from the point of view of the coffee chain customer (P. T. Chen &
Hu, 2010a). Previous research on customer loyalty has concentrated on relationship
advantage as a relationship marketing strategy towards customer loyalty (P. T. Chen &
Hu, 2010b), as well as service standards and customer satisfaction (P. T. Chen & Hu, 2010c). 1.2. Research gap
In a workforces’ research, Turkyilmaz et al. (2011) argued that customer
satisfaction will increase if employees are held accountable. In addition, according to Yee
et al. (2008), who conducted a study on employees and store managers, employees have a
great influence on consumer satisfaction. However, the survey relies on managers'
assessment of customer satisfaction rather than a survey of customer satisfaction.
Consumer satisfaction is influenced by our research on consumer perceptions and our actual data collection.
In addition, previous research also selected price, service quality, and product
quality to foresee consumer satisfaction. These predictors are thought about as "inputs" or
"perceptions" that can change "process" or "influence". To better understand how one
variable affects another, the authors of this study constructed three additional models that
were adjusted by varying the variables involved. Price, product quality, and service
quality, in turn, translate into utilitarian, symbolic, and hedonistic rewards for these
efforts. Other variables are processed when one is used as input (Suhud et al., 2020). 1.3. Research objective
Research objective 1: Examing of the various benefits associated with coffee
brands, including utilitarian benefits such as discounts, coupons, hedonic entertainment,
and symbolic benefits like special treatment.
Research objective 2: Assessing how these benefits impact relationship outcomes
such as customer satisfaction, brand trust, and store loyalty are key research objectives of
this study (Stathopoulou & Balabanis, 2016). 1.4. Research question
Question 1: What benefits determine consumer behavior in the experience of a coffee shop?
Question 2: What factors affect the relationship between consumer behavior and coffee shops? 1.5. Scope of study
This study includes potential and loyal customers, to differentiate and understand
well how it works to build high-level customers. The findings describe how upscale
coffee businesses can align their interests as opposed to budget options coffee brands in
order to retain customer trust (Stathopoulou & Balabanis, 2016). 1.6. Contribution
The findings demonstrate the various ways in which coffee brands have an impact
on consumers. Researchers also offer advice to shop managers on how to spend resources
more effectively for structuring, organizing, and servicing customers (Stathopoulou & Balabanis, 2016).
2. Literature review and hypothesis development 2.1. Utilitarian Value
Utilitarian value, also known as functional value, refers to the practical advantages
that a client derives from a product. When a buyer buys and using a service or product
that has utilitarian value for them, it essentially indicates that they are receiving some
practical advantages from that specific product (Stathopoulou & Balabanis, 2016). An
overall assessment of utility and functional sacrifice is what pragmatic value means
(Stathopoulou & Balabanis, 2016).
For use in a specific task of purchasing a product or using a service, such as
consider buying (Overby & Lee, 2006). According to this literature, buyers may gain
value from LPs in three different ways: hedonic, symbolic, and utilitarian gains
(Stathopoulou & Balabanis, 2016). Utilitarian benefits are financial savings provided to
customers in the form of coupons, points, and vouchers (Stathopoulou & Balabanis,
2016). According to Stathopoulou & Balabanis (2016) because they are principally
economic in character, utilitarian benefits (such as coupons and discounts) are "hard"
features of rewards that are primarily cognitive in nature. Saving money is one of the
important things that makes customers return to the store or buy that item to comprehend
the process of consumption, the hedonic and utilitarian values have been extensively
studied. The informational concentration of utilitarian value emphasizes the consumption
process (S. Lee & Kim, 2018). The majority of prior research concentrated on the
utilitarian view of purchasing. Consumer behavior that is functional or task-related is
referred to as utilitarian, and it can be considered to be work (S. Lee & Kim, 2018).
Utilitarian value refers to assessments of a product's overall usefulness that are based on a
comparison of what the customer must forgo and what the customer receives (Djelassi et
al., 2018). This concept demonstrates how utilitarian value is a trade-off between "get"
(such as benefits, quality) and "give" (such as time, price) components of a good or
service. Utilitarian values encompass mental components of behavior, such as the notion
of "value for the money" in the economy (Djelassi et al., 2018). Consumers that are
utilitarian in their purchasing tend to want more value for their money. The perceived
benefit of utilitarian shopping value depends on whether the mission is accomplished
successfully during the process after beginning with a mission or assignment (Kesari & Atulkar, 2016).
When a customer's aim relating to the purchase and use of goods and services is
met satisfactorily, this is a reaction to an evaluation procedure and signifies success. The
customer assesses the product's performance and experiences after purchasing and using
it in juxtaposition with their expectations (Kesari & Atulkar, 2016b). Several scholars
describe the relationship between and impacts of hedonic and utilitarian shopping value
on consumer pleasure (Kesari & Atulkar, 2016c). Several scholars describe the
relationship between and impacts of hedonic and utilitarian shopping value on consumer
pleasure. Customers who are utilitarians sense more value and utility (Kesari & Atulkar, 2016d).
Customer trust is one of the most important factors in the development and
success of a working relationship with each other (Han, Lee, et al., 2018). Without trust,
all interpersonal interactions would either fall apart or behave improperly. Trust is
described as a generalized expectation held by a person that they can rely on the thoughts,
feelings, and emotions of others (Bozic & Kuppelwieser, 2019).
Therefore, this study presents the following hypothesis:
H1a: The utilitarian has a positive impact on customer satisfaction
H2b: The utilitarian has a positive impact on customer trust 2.2. Hedonic Value
The customer's perceived value of a product is considered to be one of the most
important elements in a marketing strategy to differentiate and maintain a brand's
competitive advantage (Ravald & Grönroos, 1996). The more tangible characteristics of
goods and services are said to be “two-factor satisfaction” or characteristics that can
satisfy and displease consumers. Divalent satisfied people provide input to cognitive
processes (e.g., expect-don't confirm) and basic satisfaction and should be closely related
to assessments. value in terms of practical value. The more abstract, higher-order
properties of goods and services perceived as “single value satisfaction” or “additional”
can only contribute to satisfaction – not dissatisfaction. satisfied - emotionally and
psychologically (Zeqiri et al., 2023). Therefore, hedonic values should be closely related
to those that satisfy the customer's emotional value. Emotions and feelings that customers
get from trusting a brand. When customers trust a coffee chain, they experience positive
emotions, a sense of security, and a sense of trust in their interactions with the brand.
Customer emotions are built on the belief that the brand will act in the best interests of
the customer, delivering on its promises(Mayer et al., 1995). Feelings connect
emotionally and to customer satisfaction, resulting in pleasure value.
The value of customer trust can be observed in many different ways. Customers
feel secure and reduce their perceived risk, customers who trust a brand feel confident
that their personal information will be kept secure, and are responsible for handling
personal information. Their transactions will be confidential and taken care of. They will
be protected (Gefen et al., n.d.). Trust enhances the overall customer experience.
Customers believe that a company is more likely to have positive interactions, feel
valued, and receive personalized services (Morgan & Hunt, 1994). Trust fosters a sense
of trust and consistency in a company's customer relationships, leading to higher levels of
satisfaction and enjoyment. Customers contribute to brand formation. When customers
trust a brand, they are more likely to develop a long-term relationship with the brand,
repeat and recommend the brand to others (Chaudhuri & Holbrook, 2001). Satisfaction
becomes an important factor in forming customer attachment and loyalty to a brand.In
short, the joy value of customer trust stems from the positive emotions, security
perceptions, and enhanced customer experiences that come from trusting a company or
brand. Trust forms the foundation for customer satisfaction, loyalty, and exciting engagement with the brand.
The hedonistic value of customer trust, it is important to explore how trust
contributes to customers' emotional well-being and the pleasurable aspects of their
relationship with the brand. The hedonic value of customer trust can be observed in the following ways:
Affective Satisfaction: Customer trust leads to feelings of satisfaction and
emotional satisfaction. Trusted customers feel comfortable, confident, and emotionally
positive when interacting with trusted brands (Van Der Heijden, 2004). This emotional
connection enhances the overall experience and contributes to the hedonic value of a
trusted brand. Reduces clients' anxiety and stress related to decision-making and potential
negative outcomes (Bart et al., 2005). Customers trust a company to experience a sense
of relief and relaxation, knowing they can rely on the brand to deliver on their promises and meet their expectations.
Enjoyable Interactions: Trust drives enjoyable interactions between customers and
the company. Trusted customers are more likely to engage in positive and meaningful
interactions, such as seeking advice, providing feedback, or participating in brand
communities (Bart et al., 2005). These interactions provide an opportunity for clients to
derive hedonic value through social connections and shared experiences.
H2a: The hedonic value have a positive impact on customer satisfaction
H2b: The hedonic value have a positive impact on customer trust
Customers who like fun and enjoy the shopping process see retail stores as a place
of entertainment and discovery (Bloch et al., 1994); These customers like to consume
because they like the process of using and the experience. Bloch et al. (1994) identified
the self-satisfaction benefits of experiencing, make shoppers feel better by reduce stress.
Researchers Arnold & Reynolds (2003) showed that some customers prefer to socialize,
make choices and demands (Scarpi et al., 2014), with others while that experience gives
them an opportunity engage with other buyers (Swiny Ard, 1993). Optimism value is
perception that a customer feels during the experience, creating greater value by
eliminating distractions and helping customers focus on their emotional values (Arnold & Reynolds, 2003). 2.3. Symbolie Value
The acknowledgment and social benefits that a loyalty program offers to
customers are known as symbolic benefits. These include social standing, a sense of
belonging, special treatment, social acceptance, and firm recognition (Stathopoulou &
Balabanis, 2016a). J. Li et al. (2019) has been said that symbolic value, not use value or
exchange value, is the main ingredient in the conflict. The fundamental conflict of things,
and that consumption is intended to express personal value and social status. In
Baudrillard's view, researchers have demonstrated that the symbolic value of a product
has an important influence on how people consume it, such as "conspicuous
consumption". Help clients feel valued and appreciated. Consequently, businesses that
seek to build lasting partnerships and enduring client loyalty should give considerable
thought to hedonic and symbolic rewards while designing their loyalty programs.
Retailers make an investment in their customers' psychological connections by
combining valuable interests, setting up expectations of reciprocity, and boosting
dependability. When a business invests in a connection with its customers, consumers see
rewards, and this fosters trust. Consumers' desire to do business with a firm, despite the
dangers, is based on their trust in that company's dependability and honesty
(Stathopoulou & Balabanis, 2016). A consumer's level of faith in a business's
dependability and integrity, as well as their willingness to work with it despite the
dangers, is known as trust(Stathopoulou & Balabanis, 2016b). Investing in dyadic buyer-
seller relationships is regarded to have significant benefits, including the establishment of
trust. We define trust as the consumer's belief in the dependability and integrity of a store,
drawing on the body of current research. According to some academics, perceived
trustworthiness and trusting behaviors are two separates but connected facets of trust. In
contrast to trustworthiness, which relates to a conviction or level of assurance, trusting
actions are connected to a willingness to take risks and demonstrate dependence on a
relationship (Simion & Willard-Kyle, 2023). While some researchers (Moorman et al.,
n.d.) combine both elements into one definition of trust. These include the intangible
qualities, emotions and experiences associated with a coffee shop, such as atmosphere,
attractive lifestyle, social aspects, cultural traditions, relaxation factors, and facilities.
opportunity to personalize and express yourself. These iconic values play an important
role in attracting and retaining customers in the competitive coffee shop market.
H3a: The symbolic value have a positive impact on customer satisfaction.
H3b: The symbolic value have a positive impact on customer trust.
2.4. Customer satisfaction
According to Kotler ( 2011), satisfaction is the degree of a person's feeling state
from comparing the perception of a product with his or her expectations. Customer
satisfaction is a comprehensive evaluation of all purchases and consumption activities,
comparing the perceived benefits to the costs incurred (Pedraja Iglesias & Jesus Yagüe
Guillén, 2004). Customer satisfaction is a general term that covers opinions about both
the product and the service (Leem & Yoon, 2004). When a business can reduce the
number of problems customers encounter and successfully handle inquiries and issues
that emerge, customer satisfaction is maximized (Broetzmann et al., 1995). According to
Sheng & Liu (2010), customer satisfaction in traditional markets is defined as follows:
their pledge to stick to the original product or service when making a second purchase of
a good or service, leading to repeat purchases of the identical item without being affected
by the surroundings or marketing plan praising an online retailer, which prompts the
customers to make a second buy.
Mai & Ness, (1999) showed that the goal of customer satisfaction is not to make
them happy; rather, it is to understand their behavior in the future. Typically, satisfaction
is measured as a general impression or as satisfaction with specific aspects of the
transaction (Mai & Ness, 1999). Customer satisfaction is viewed in the marketing
literature as a changing feature of consumer behavior (Davis & Vollmann, n.d,1990). The
connection between the service manager's operational choices of today and upcoming
earnings due to recurring business is customer happiness (Davis & Vollmann, n.d,1990).
Customers who are happy will stay loyal to a business, whereas those who are not happy
will eventually choose a competitor (Davis & Vollmann, n.d,1990).
H4: Customer loyalty associates positively with satisfaction
According to Bowen & Chen (2001), even a little improvement in customer
satisfaction can result in increased customer loyalty and retention. Customers who are
satisfied with a business's quality will indicate their satisfaction by continuing to do
business with that business and not switching to another one (Bowen & Chen, 2001).
Anderson & Sullivan (1993) believed that customer satisfaction positively influences repurchase. 2.5. Customer trust
Trust is defined as customers' belief in a firm's dependability and integrity and it is
associated with their desire to conduct business with that organization (Stathopoulou &
Balabanis, 2016). Customers' views and beliefs that companies will not let them down
and will do their best to achieve their interests are key factors. Customers evaluate a
seller's performance beyond meeting them in person to determine if it makes sense and
whether it meets their needs (Mansouri et al., 2022a). Simion & Willard-Kyle (2023)
showed that building consumer trust is important for businesses because, according to
social penetration theory, self-disclosure improves trust between two people. It acts as a
bridge between the brand and the customer. According to social exchange theory,
consumer trust can also be seen as a valuable intangible resource for interpersonal
interaction. According to Gokmenoglu & Amir (2021) the importance of trust in
developing customer connections in the coffee shop sector is emphasized by the fact that
it is seen as a guarantee of social exchange partners to fulfill their commitments in a
timely manner. timely and correct. Their findings demonstrate the importance of trust
drivers for creating value, which in turn aids the maintenance of long-term customer relationships.
The idea of trust includes an estimation depending on an object's consistency in
fulfilling its obligations as well as the relationship between its expenses and its
advantages. Five factors—benevolence, honesty, competency, identity, and care—are
used to assess it. The findings show that gender and age differences exist in user
judgments of authenticity, which represent a person's moral and ethical convictions
(Ebrahim, 2020). As a result, Naspetti & Zanoli (2014) discovered that female and
teenage clients have high standards for honesty. Affective trust, which includes dealing
with one's feelings for and caring for the welfare of others, is tied to and evaluated using
this element of trust. While trust in thought gives benefits the upper hand over drawbacks (Ebrahim, 2020).
On the other hand, the reliability of a coffee company is also assessed by the
deliciousness of the product. Previous research has confirmed the impact of flavor
perception on quality perception. Organic products sold regularly are said to be healthy
and more delicious than non-organic products (Naspetti & Zanoli, 2014). Consequently, it
may be concluded that better-quality food ratings can increase consumer confidence. In
addition, brand attitudes affect purchases, and willingness to pay is motivated by trust in
coffee brands (Norberg et al., 2011). Previous studies have recorded that brand trust
drives product repurchase probability (Chae et al., 2020). Greater trust in Buyers has a
greater probability of being influenced by a brand to purchase products bearing that brand (Konuk, 2021).
There has been research on the connection between client loyalty and client trust
by a previous analyzer. According to Veloutsou (2015) customer loyalty is influenced by
consumer trust. According to Huang (2017a), consumers who have confidence in a brand
are more likely to become brand loyalists. According to Palacios-Florencio et al. (2018),
customer trust and loyalty are closely related. The foundation and core of developing the
connection between enterprises and customers is trust. This is one of the characteristics
that influence brand loyalty, which increases organizational commitment and
effectiveness. Also, having trusted customers makes them more loyal in the long run.
(Mansouri et al., 2022b) further demonstrate that trust-based connection improves brand
loyalty. The results discussed above imply that brand loyalty is underpinned by consumer
trust (M. W. Li et al., 2020). Therefore, we hypothesize:
H5. Customer loyalty associates positively with customer trust 2.6. Customer Loyalty
Brand loyalty is frequently described as an inconsistent and prejudiced behavioral
reaction exhibited by a consumer toward one or more preferred brands over time,
influenced by psychiatric procedures (Han, Lee, et al., 2018). outlines six factors,
including intent to repurchase, degree of satisfaction, brand choice, and readiness to
invest a premium, that are connected to brand loyalty, switching costs, and brand
commitment. Brand loyalty is a key focus for marketing strategies employed by
companies, particularly in the service industry, where markets are highly competitive and
difficult to differentiate (Fournier & Yao, 1997). Companies that successfully cultivate a
larger base of loyal customers are often able to reap several benefits. These include the
ability to increase their market share, achieve improved rates of return on expenditures,
more negotiating leverage with vendors as well as distribution methods, and favorable
word-of-mouth publicity (Veloutsou, 2015).
Previous research has consistently demonstrated the significant impact of
relationship commitment on customer loyalty (Vicente et al., 2020). Specifically, the
foundation of continuance commitment fosters consumer reliance on a particular brand's
superior unique products and services compared to competitors, ultimately leading to
brand loyalty (K.-Y. Lee et al., 2007). It suggests that when customers stick with a coffee
business because it consistently provides functional benefits that surpass This dedication
progressively forges a lasting bond with customers that drives repeat business and brand
loyalty, unlike its rivals, who could offer considered excellent coffee or great customer
support (Evanschitzky et al., 2006), repeatedly finding that psychological attachment has
a favorable effect for loyalty to a company. According to Evanschitzky et al. (2006)
emotional dedication has a stronger influence on loyalty than continuation devotion and
can actually cause behavioral loyalty. In other words, customers who feel a connection to
a coffee brand emotionally exhibit loyal behaviors such as repeat purchases, positive
word-of-mouth, and avoidance of competitor stores.
For service suppliers and customers to develop solid connections, client trust is
essential. Customers develop devoted and long-lasting connections with the brand as a
result (So et al., 2016). According to the social exchange theory, which contends that
shoppers are inclined to engage with companies that they trust (Huang, 2017). Customers
with a high level of trust are more likely to form strong connections with the company.
Customer participation improves both beneficial and reciprocal interactions between
consumers and suppliers of services, boosting trust(Huang, 2017). The link between
customer trust and brand loyalty has also been explored by researchers. According to
research by (Veloutsou, 2015) and (Huang, 2017a) brand loyalty is positively influenced
by consumer trust. Buyers who believe a brand are also more likely to display stronger
brand loyalty. Customer loyalty and trust are positively correlated (Huang, 2017). These
findings lead to the conclusion that customer interaction promotes consumer trust, which
then turn boosts brand loyalty. Furthermore, prior research has validated the mediation
function of customer trust in the link between consumer engagement and brand results (Huang, 2017b). Utilitarian Value H1(a) H1(b) Customer Satisfaction H2(a) H4 Hedonic Value Customer Loyalty H2(b) H3(a) H5 Customer Trust Symbolic Value H3(b)