Marketing Mix on Customer Loyalty at Coffee Shop in Bandung

Coffee shop business growing rapidly in Bandung. Not just enjoying a cup of coffee, coffee shops are now transformed into places to socialize and gather together with friends and relatives. This trend makes existing coffee shops compete with one another by providing differentiation in product, price, place, promotion, service, atmosphere, and presentation process. This research tries to explore the marketing mix at coffee shop in Bandung and its effect on customer loyalty. With quantitative research methods taken from 80 respondents, it is known that the physical evidence factor is the main factor, on the other hand the price factor is the lowest factor that has impact on customer loyalty. This research underlines the importance of the components of the marketing mix in order to increase customer loyalty in the coffee shop business.

■ 90 ATM Vol 5 No.1 January 2021 : 89-96 the success of a business. Having loyal customers is the main goal for business. No wonder the company will always provide the best for its consumers.
Along with the times, human needs are also increasingly diverse. To meet all these needs, business must be able to provide the best product or service possible. Consumers are also increasingly selective in deciding to make purchases. Many factors can affect customer loyalty to a product. Even though it looks simple, the marketing mix concept is able to create customer loyalty. With the marketing mix concept, it is hoped that business people will be able to manage their strategy well, so that they can increase profitability [5].
One of the studies conducted by Sylvia Tjan entitled "The Impact of Marketing Mix On Customer Loyalty Towards Plaza Indonesia Shopping Center" discusses the effect of the marketing mix on customer loyalty at Plaza Indonesia. Based on these results, there are 3 points in the 4Ps marketing mix that have a significant effect on customer loyalty. Significantly, product, place, and promotion have influence on customer loyalty at Plaza Indonesia. This proves that the marketing mix affects customer loyalty [6].
Another studies state the importance of marketing-mix variables on companies' revenues and value growth has been empirically demonstrated in consumer goods industries. A company's marketing mix decisions may depend on various generic factors (e.g. business model and goals, competition, the product life cycle, etc.). The marketing efforts and activities corresponding to the marketing mix elements, when combined and implemented adequately, are positively associated with financial and operational business performance in the lodging sector [7].
In addition, another study conducted by Tantra B. & Marcelina [8] concluded that there are 5 elements of 7Ps that influence purchasing decisions at guest houses in Surabaya. The five elements are price, promotion, place, people, and physical evidence. However, the element that most influences the purchase decision is price.
Establishing a loyal customer base is an important goal for any industry and so they put considerable efforts into understanding which elements in marketing mix have a significant impact on customer loyalty. Oliver defines customer loyalty as a deeply held commitment to rebuy or repatronize a preferred product/service consistently in the future, thereby causing repetitive samebrand or same brand-set purchasing despite situational influences and marketing efforts having the potential to cause switching behavior [9]. Having loyal customers is a key for a business and required option for various companies based on its important role in creating sustainable competitive advantages [10].

Marketing Mix
Marketing mix describes the tools used by management that can affect sales. This tool can be used as a long-term or short-term strategy. Marketing mix is defined as a basic concept in modern marketing theory that can significantly attract customer interest [11]. Another definition states that a marketing mix is a combination of several marketing elements in order to meet consumer needs and expectations. Another goal is as a means for companies to build good relationships with their customers. Marketing mix activities constitute firm capabilities through which businesses transform available resources into valuable outputs and enabling them to deliver superior financial performance and enhance competitive advantages.
The marketing mix traditionally consists of the 4Ps, namely product, price, place and promotion. In the 4Ps marketing mix, usually the four elements are used for product oriented only. Then it developed and expanded from 4Ps to 7Ps consisting of product, price, place, promotion, people, physical evidence, and process. The 7Ps marketing mix concept is usually used when referring to services. The goal is to create customer-oriented services so that they can gain a sustainable competitive advantage. All elements in the marketing mix are interconnected in order to achieve company goals. Marketing mix is considered as a solution to problems in the marketing field. So, understanding the marketing mix conceptually is important for business practitioners before deciding to enter the market [12]. Marketing mix decisions in service firms are pivotal to build customer relationships and attain business objectives. Until now, marketing mix is still evolving and developing according to needs [13].
Marketing mix allows a business to make profitable marketing decisions at every level. 7P marketing mix strategy can provide company outcomes as an input in the future. For a business to be successful, it is important tool to pays attention of each element in marketing mix [14].

Customer Loyalty
Customer loyalty can be interpreted as taking sides with a particular product/service from time to time. Loyalty refers to the highest level of acceptance of a brand by customers, which is usually seen in customer buying behavior. Customer loyalty tends to be closer to the attitudes and behavior of consumers. Loyal customers can be measured through purchasing attitudes or behaviors, such as purchasing levels and recommending the brand to others. When a person is a loyal customer, he or she will exhibit buying behavior which is defined as non-random purchases. Customer loyalty can also be interpreted as continuous positive buying behavior from customers for certain brands or products. This can be influenced by customer satisfaction [15].
Nowadays, customer loyalty is becoming increasingly important. Many organizations adopt marketing mix focused on delivering customer satisfaction, believing that customer satisfaction gives rise to customer loyalty and increased profitability [16]. Customer loyalty emphasize that loyalty is a feature of people, rather than something inherent in brands [17]. Therefore, loyal consumers are considered an asset to an organization. From the behavioral perceptive, customer loyalty can be understood as the frequency of using particular services in a specific category compared with the total services. While, the attitudinal perspective, customer loyalty can be understood as customer tendency to do a relationship with a service provider [18]. [11], [15], [19], [20]  We want analyze the factors in marketing mix that can affect customer loyalty at Kopi Q.

Table 1. Previous Research
Based on problem identification, the hypothesis that can be taken as follows: H0: There is no effect of the marketing mix on customer loyalty at Kopi Q H1: The marketing mix influences customer loyalty at Kopi Q

Research Method
In the first part, the research identification will be carried out. The research design process begins with the preparation of problem identification. The aim is to define the problem and scope of the research. Followed by the preparation of the background to the problem, research objectives, and research benefits. Then proceed with a literature review that discusses the theory of variables, previous research results, and research hypotheses.
In the second part, the research implementation process will be carried out. This section begins with the preparation of a research method consisting of a research design, population and sample, measurement and research instruments, data collection, and data analysis.
In the third stage, a research report was written. The results and discussion of the research will be compiled to discuss in-depth detail the marketing mix relationship to customer loyalty of Kopi Q. Closed with conclusions and suggestions from the research results. Kopi Q was chosen because this coffee shop is well established since 2012. In addition, this coffee shop is still fulfilled by visitors during the COVID-19 pandemic, so we are interested to explore further the keys success of Kopi Q, in this study focused on marketing mix and customer loyalty.

Figure 1. Research Model
We use quantitative methods with purposive data collection techniques. Purposive data collection was selected to fit the criteria for the research topic in determining suitable respondents [21]. Data were collected through questionnaires and processed using SPSS software to get an overview of the influence of the marketing mix on customer loyalty at Kopi Q. The sample in this study are 80 respondents. Respondents are customers who have visited and purchased products from Kopi Q. All questions items used in the research questionnaire are valid and reliable, so that can provide a complete picture of the marketing mix and customer loyalty at Kopi Q.

Results and Analysis
Based on the research results, Table 3 shows the respondent's demographic profile data. Kopi Q customers are dominated by women (56.67%), aged 15-24 years old (54.55%), single (65.56%), work as students (45.56%), have Senior High School level of education (51.11%), has an income per month of Rp 2,000,000 -Rp 5,000,000 (30%), has an expense of Rp 1,000,000 -Rp 2,000,000 (33.33%). Based on marketing mix indicators, T3 has the highest score when compared to other indicators. Meanwhile, the H2 indicator has the lowest score. The research indicator T3 talks about "the atmosphere of the Kopi Q room is comfortable" representing physical evidence, while the research indicator H2 underlines "Kopi Q products have an affordable price" representing price. Meanwhile, from the customer loyalty indicator, L1 made a large contribution, namely "I believe in the quality of Kopi Q products" and the lowest on the L3 indicator with the statement "I will not switch to another restaurant/café". The value of α is a constant number in the unstandardized coefficient 2.608, which means that if there is no customer loyalty, the consistent value of the marketing mix (X) is 26,608. whereas, the value of b is the number of regression coefficients. A figure of 0.406 means that for every 1-point increase in customer loyalty (Y), the marketing mix (X) will increase by 0.406. Results Sig. obtained is 0.000 and is smaller than the probability of 0.05, so it can be concluded that H0 is rejected, which means there is an effect of marketing mix (X) on customer loyalty (Y).

Conclusion
Marketing mix proved impacted customer loyalty in certain points. Price have the lowest score. Djumarno, Anjani, & Djamaluddin [22] also highlighted prices of products proven significant positive effect on customer loyalty. Kopi Q need to be consider, since customers feel Kopi Q not yet providing affordable prices. Kopi Q can create promos with special prices, especially during weekdays or hours that are relatively quiet, so that customers that sensitive with price can visit at the specified time. Meanwhile, physical evidence has the highest score. This means that the atmosphere of the Kopi Q provides comfort atmosphere through the cleanliness of a comfortable place. Thus, physical evidence contributes as a factor that can maintain and increase customer loyalty. This results also supported by Rachman [23] that physical evidence and assurance services have a positive and significant impact on customer satisfaction and customer loyalty.
To increase customer loyalty, Kopi Q can improve several strategies in marketing mix, especially in price. Promoting discounted prices or food and beverage packages at a more affordable price can be done to attract more customer interest in order. Also, this pricing strategy can create customer satisfaction and gain customer loyalty eventually. The comfort and cleanliness of Kopi Q is one of the important factors that Kopi Q must pay attention in order to maintain and increase customer loyalty. In addition, the procurement of loyalty cards in the form of stamps with minimum amount of purchase can be done by Kopi Q to attract customers, so that they can continue to come and increase product consumption at Kopi Q. The quality of Kopi Q products needs to be maintained and continuously improved to maintaining customer loyalty.