Forging Loyalty in the Experience Economy
The Mediating Role of Satisfaction between CX, CRM, and Loyalty in the Coffee Shop Industry
Keywords:
Customer Experience, Customer Relationship Management, Customer Loyalty, Customer SatisfactionAbstract
This study aims to investigate a comprehensive mediation model that links customer experience (CX) and customer relationship management (CRM) to customer loyalty through the mechanism of customer satisfaction, specifically within the highly competitive coffee shop industry. A quantitative survey was conducted, gathering data from 170 coffee shop patrons in North Central Timor Regency, Indonesia. The conceptual model and its hypotheses were tested using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results confirm that both CX and CRM have a significant positive influence on customer satisfaction and customer loyalty. Furthermore, customer satisfaction was found to be a significant mediator for the effect of both CX on loyalty (t-statistic = 2.269, p-value = 0.023) and CRM on loyalty (t-statistic = 1.982, p-value = 0.048). The model explained 29.7% of the variance in customer loyalty and 21.9% in customer satisfaction. Theoretically, this study reinforces the Theory of Planned Behavior by demonstrating that satisfaction (a positive attitude) is a crucial mechanism translating firm strategies (CX and CRM) into behavioral intentions (loyalty). Practically, managers in the service sector are advised to orchestrate a holistic customer experience and integrate it with relationship management strategies to foster genuine satisfaction, which is a key driver of loyalty. This research contributes by simultaneously testing the effects of both CX and CRM within a unified mediation framework, providing a more holistic understanding of the drivers of loyalty in the burgeoning and highly competitive coffee shop sector.
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