CUSTOMER RETENTION THROUGH BRANDING AND SERVICE EXCELLENCE IN LOCAL COFFEE SHOPS IN YOGYAKARTA
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Abstract
The relationship between customers and local coffee shops in Yogyakarta is a critical determinant of business sustainability in an increasingly competitive market. This study examines how customer retention is shaped by two primary factors: branding efforts and the provision of service excellence. Effective branding enables coffee shops to establish a distinctive and memorable image in the minds of customers, thereby fostering emotional connections and brand loyalty. Simultaneously, delivering high-quality service ensures customer satisfaction and positive experiences, which are essential for encouraging repeat visits. Importantly, this research identifies customer satisfaction as a moderating variable that can either strengthen or weaken the impact of branding and service excellence on customer retention. When satisfaction is high, the positive effects of branding and service excellence on retention are amplified; conversely, low satisfaction can diminish these effects. The proposed conceptual model thus positions branding and service excellence as direct antecedents of customer retention, with customer satisfaction moderating these relationships. The findings of this study are intended to provide practical insights for local coffee shop managers in Yogyakarta, enabling them to design more effective strategies to enhance customer loyalty and ensure the long-term sustainability of their businesses. By understanding these dynamics, coffee shop owners can better meet customer expectations and maintain a loyal customer base in a dynamic marketplace.
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