THE ROLE OF PERCEIVED QUALITY, PERCEIVED VALUE, AND PERCEIVED RISK IN INCRASING CONSUMER SATISFACTION AT LOCAL COFFEE SHOPS

• Main Author: Dwi Prasetyo, Juvianto
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/61694
• Institution: Institut Teknologi Bandung

Coffee is one of the leading commodities in the plantation sub-sector. In line with the increasing number of coffee production, the level of coffee consumption in Indonesia also increases. This situation is an opportunity for entrepreneurs to establish coffee shops as an effort to meet the needs of coffee consumption. A coffee shop is a place that provides coffee products and their derivatives as the main drink and various other side drinks. Bogor region as a culinary tourism destination is a strategic location for the coffee shop business. Some coffee shops that survive their existence in Bogor region, among others, Kopi Lain Hati, Janji Jiwa, and Kopi Kenangan. Kopi Kenangan and Janji Jiwa coffee shops have stiff competition from other coffee shops in maintaining their existence as a local coffee shop brand. Lain Hati coffee shop needs to improve its existence based on the parameters of brand awareness (Top of Mind), last use (Last Usage), and repurchase intention (Future Intention). The increasing number of local coffee shops in the Bogor region raises a fairly tight competition. The increasingly fierce competition makes local coffee shop entrepreneurs need to increase their competitive advantage. Various coffee shops that offer various types of coffee beverage products make consumers have a variety of choices. Consumers tend to compare the coffee drinks offered by each coffee shop and choose a coffee shop that is able to meet the needs and desires of consumers. Coffee shop entrepreneurs need to carry out proper management in order to be able to adapt to other coffee shops by paying attention to the concept of customer satisfaction. The consumer satisfaction model was initially influenced by the dimensions of consumer expectations and perceived value, then the dimensions of perceived quality were added which could affect consumer satisfaction. This study has several dimensions that serve as constructs that affect consumer satisfaction. These dimensions consist of perceived quality, perceived value, and perceived risk. Perceived quality shows the quality of a product or service received by consumers in accordance with the needs and desires of consumers intrinsically and extrinsically when compared to other alternatives. Perceived quality dimensions are reflected by indicators of product taste, product aroma, product color, product packaging, service, advertising understanding, and advertising visualization. Perceived value shows consumers' subjective perceptions of a product or service when using the service or service based on their experience and knowledge so that it affects their attitudes and behavior. The indicators used to reflect perceived value consist of quality values, price values, emotional values, social values, and environmental values. Perceived risk is an estimate of the risk experienced by consumers in the form of negative consequences when making the wrong decision to use a product or service so that the product or service does not meet consumer expectations. Indicators that reflect perceived risk consist of financial risk, psychological risk, social risk, and time risk. This study aims to analyze the role of perceived quality, perceived value, and perceived risk dimensions on consumer satisfaction and the role of perceived risk on perceived quality and perceived value in a case study of a local coffee shop. This study uses 210 respondents who are consumers of local coffee shops in Bogor region since 2020 taken online and offline. The results of data collection obtained through questionnaires were then processed using Partial Least Square-Structural Equation Modeling (PLS-SEM). The results showed that perceived quality and perceived value had a significant positive effect on local coffee shop consumer satisfaction. Perceived value has the largest role in the consumer satisfaction model, which is indicated by a value of 0.498 in a case study of a local coffee shop in Bogor region. Perceived risk has an indirect effect on consumer satisfaction through perceived value. Perceived risk has a significant negative impact on perceived value so risk minimization is needed to increase consumers' subjective perceptions of local coffee shops. This study uses indicators that best reflect each dimension in the consumer satisfaction model. Quality indicators offered by companies providing products or services are indicators that best reflect the dimensions of customer satisfaction. The product color indicator is the indicator that best reflects the perceived quality dimension. The emotional value indicator is the indicator that best reflects the perceived value dimension. Psychological risk indicators are the indicators that best reflect the dimensions of perceived risk. The managerial implications given to local coffee shop entrepreneurs suggest a model of consumer satisfaction in this study, namely making promotions with the meaning of refreshing the mind and easy to understand, spreading promotions in strategic locations and social media, giving promos or discounts to consumers on certain dates and hours on several types of coffee drinks, making product development strategies, and do endorsements to promote local coffee shops.