Influence of Menu Variety and Price on Gen Z Customer Loyalty at Belawan Coffee Shop: Purchase Decision as a Mediating Variable

Nurfadillah; Muhammad Badar; Sri Ernawati

doi:10.63922/ijebir.v5i04.4396

Nurfadillah Sekolah Tinggi Ilmu Ekonomi Bima (STIE)
Muhammad Badar Sekolah Tinggi Ilmu Ekonomi Bima (STIE)
Sri Ernawati Sekolah Tinggi Ilmu Ekonomi Bima (STIE)

DOI: https://doi.org/10.63922/ijebir.v5i04.4396

Keywords: Menu Variety, Price, Purchase Decision, Customer Loyalty, Gen Z.

Abstract

The coffee shop industry in Bima City has experienced significant growth, turning into a lifestyle hub for Generation Z. Consequently, coffee shops encounter extreme competition in maintaining customer retention. This study aims to analyze the empirical effects of menu variety and price on Gen Z customer loyalty, with purchase decisions serving as a mediating variable at Belawan Coffee Shop, Bima City. Utilizing a quantitative associative approach, data were gathered from 85 Gen Z respondents via accidental sampling using a 5-point Likert scale questionnaire. Path analysis and the Sobel test were performed using SPSS 27.0 to analyze direct and indirect pathways. The validity and reliability tests confirmed that all instruments were highly robust. The findings demonstrate that Menu Variety has a significant negative effect on Purchase Decisions (t = -2.117, p = 0.037) and a non-significant effect on Customer Loyalty (t = -1.597, p = 0.114). Conversely, Price exerts a highly significant positive effect on both Purchase Decisions (t = 10.514, p = 0.000) and Customer Loyalty (t = 7.057, p = 0.000). Furthermore, Purchase Decisions significantly affect Customer Loyalty (t = 4.829, p = 0.000). The Sobel test establishes that Purchase Decisions fail to mediate the relationship between Menu Variety and Customer Loyalty (Z = -1.3847, p = 0.1661), but successfully and significantly mediate the impact of Price on Customer Loyalty (Z = 3.7942, p = 0.0001). Therefore, optimizing pricing strategy and focusing on trendy menu quality rather than raw volume are pivotal recommendations to sustain Gen Z customer lifetime loyalty.

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