Journal of Administrative and Business Studies
Details
Journal ISSN: 2414-309X
Article DOI: https://doi.org/10.20474/jabs-4.4.1
Received: 8 June 2018
Accepted: 11 July 2018
Published: 2 August 2018
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  • A path analysis of customer loyalty of homegrown coffee shops in Davao region


Hinlayagan Kymwell Recamadas

Abstract

The study's main purpose is to determine the factors that lead to customer loyalty to homegrown coffee shops. This study was also conducted to investigate the relationship of the marketing mix, customer expectation, customer experience, customer satisfaction, and customer loyalty among homegrown coffee shops. The quantitative study utilized a descriptive correlational and causal-comparative approach as the research design was utilized in this study. The study employed path analysis to allow the testing of a hypothesis based on a proposed causal model. The data were obtained from the 580 homegrown coffee shop customers in Davao Region, Philippines. Sets of questionnaires were used as instruments. Pearson product-moment correlation was used to determine the inter-relationships between the marketing mix, customer expectation, customer experience, and customer satisfaction to customer loyalty. Multiple linear regression was performed to determine the significant predictor of customer loyalty. Path analysis was utilized to analyze the path relationships among the variables. The study's findings revealed that the level of the marketing mix, the level of customer expectation, the level of customer experience, the level of customer satisfaction, and customer loyalty as perceived by the customers of homegrown coffee shops were all rated highly. This means high customer satisfaction and customer loyalty in homegrown coffee shops in Davao Region. Moreover, marketing mix, customer expectation, customer experience, and customer satisfaction were highly correlated to customer loyalty. This indicates that marketing mix, customer expectation, customer experience, and customer satisfaction would directly affect customer loyalty. Meanwhile, all exogenous variables have a significant direct influence on customer loyalty. Furthermore, the final model passed all the goodness of fit indices criteria CMIN/DF, p-value, TLI, CFI, GFI, RMSEA, PCLOSE.