ASSESSMENT OF SERVICE QUALITY TOWARDS CUSTOMER LOYALTY: CASE STUDY OF TENTREM

• Main Author: Kurniawan, William
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/40762
• Institution: Institut Teknologi Bandung

increasing number of coffee shops as well, from local to foreign branch that expand their market. A local coffee shop in Bandung known as Tentrem Kopi & Kesegaran was established in 2016 located in Cisitu. Cisitu is a small neighborhood inhibited by local people and students from ITB (Institut Teknologi Bandung). Tentrem offers free Wi-Fi and wide variety of drinks, yet it does not provide customers with sofa and air conditioning. Based on the modern coffee shop characteristics, Tentrem has not met the criteria of modern coffee shop. This indicates a gap between customers’ expectation of a coffee shop and what Tentrem actually provides for its customers, this may result in struggles of retaining customers because according to interviews with university students which are also the targeted segment of Tentrem, they are moving from one coffee shop to another to find one with the best services. As the competition gets tougher, delivering quality service can be seen as an essential strategy in order to survive and success (Dawkins and Reichheld, 1990; Parasuraman, ZeithamI, and Berry, 1985; Reichheld and Sasser, 1990; ZeithamI, Parasuraman, and Berry, 1990). Service quality is pivotal in maintaining customer satisfaction and customer loyalty which can increase profitability of Tentrem, therefore researcher conducted an analysis to see the relationship between service quality, customer satisfaction and customer loyalty. The findings are service quality has significant impact on both satisfaction and loyalty, however satisfaction does not act as mediator between service quality and loyalty. Customer satisfaction is also significant for customer loyalty. Data shows that the dimension Tangibles it score the lowest compared to other dimensions. Since Tentrem’s market are university student, Tentrem need to fulfill their expectation by providing latest equipment, clean and appealing facilities, also proper apparel for its barista. As for keeping up with the competition, Tentrem might want to adapt to their market expectation by providing air conditioning since Tentrem has not been able to fully capture the market during noon. Tentrem may also need to improve the aspect of Responsiveness as it has the second lowest score. Tentrem needs to perform quicker service and train the barista to serve what the customers want and respond to customers’ requests.