The Effect of the Four Marketing Mix Factors on Customer Loyalty (Case Study: Consumers of Boots Café Makassar

Abstract

Aims: The development of restaurants and cafes today has been offered with various kinds of competition in all fields. Seeing these conditions, café and restaurant managers are increasingly required to act quickly and precisely so as not to lose the competition. Winning this competition can be done by displaying the best products and can meet consumer tastes that are always developing and changing, as well as with satisfying services. Companies are required to consider market customers who are increasingly focused on customer loyalty. This study aims to determine the partial and simultaneous effects of marketing mix components, namely product, price, place, and promotion on customer loyalty and which variable has the dominant influence on customer loyalty at the Boots Café Makassar. Methodology: This research is a descriptive quantitative study conducted from July to December 2022. Sampling using purposive sampling method. The total sample in this research are 210 customers (78 male, 132 female, age range 15-35 years) during 2022 who made more than two purchases. Data collection uses a questionnaire with a Likert scale, which will be tested for validity and reliability. The classical assumptions used include normality, heteroscedasticity and multicollinearity.  Data processing uses SPSS application. Results: Data is normally distributed, there is no multicollinearity problem and no heteroscedasticity problem in the regression model. Based on T test, it is found that the promotion variable has the strongest influence on customer loyalty. All independent variables simultaneously affect customer loyalty The R-Square value is 0.752, this means that the ability of Product, Price, Place, and Promotion to explain the customer loyalty variable is 75.2% while the rest (100% - 75.2% = 24.8%) is explained by other variables that are not in this study. Conclusion: Customer loyalty is positively and significantly impacted by the marketing mix, which consists of product, price, place, and promotion. The promotion variable has the highest value when compared to other variables, despite the fact that all independent variables have an impact on customer loyalty. The results of this study's theoretical contribution suggest that customer loyalty may be partially and simultaneously influenced by product, price, place, and promotion. Regarding the managerial contribution, this study contends that in order to keep their clientele loyal, business owners and policymakers must evaluate and enhance the marketing mix.