High Quality Product, Good Services, and Competitive Pricing of Local Coffee Shop to Increase Consumer Satisfaction and Loyalty

The objective of this work is to analyze the effect of service quality, product quality and price on the consumer satisfaction and loyalty of “Beli Kopi” at Baureno Village. This research used Structural Equation Modeling (SEM) analysis with a sample of 50 respondents. The results show that most customers were highly educated with high income and women as the main consumers. Service quality, product quality and price have a significant contribution to consumer satisfaction and loyalty. The research model is valid with outer loading > 0.706 and reliable with AVE > 0.874 and improving service quality, product quality and prices in line with consumer values will increase consumer satisfaction and loyalty. It is hoped that this research can provide theoretical and practical contributions in increasing consumer satisfaction and loyalty at “Beli Kopi” Baureno Village. The research also showed that service quality, product and price influence consumer satisfaction. Product quality is the strongest factor. Consumer satisfaction also has a strong influence on loyalty. To increase sales, research suggests that “Beli Kopi” improve service, maintain product quality at appropriate prices, and create attractive promotions.


INTRODUCTION
Coffee is one of Indonesia's strategic commodities which not only plays a crucial role in the national economy and the welfare of farmers, but also colors people's lifestyles, especially generation Z.The coffee business is now mushrooming not only in urban areas, but is starting to thrive in rural areas.The existence of coffee shops in various regions is clear evidence of new lifestyle trends.In the midst of the onslaught of generation Z who likes to drink coffee, coffee shops open up promising business opportunities.However, to achieve optimal success, this coffee shop needs to overcome several challenges to achieve business sustainability.
In the last decade, the role of farmers in the initial interactions is the key to close relationships, increasing recognition, quality, price, and long-term relationships (Deina et al., 2021;Edelmann et al., 2022).Farmers need better coordination and skills, and farmers still depend on buyers to achieve sustainable coffee business viability (Anik et al., 2024;Pradana et al., 2020;2022).A communication model is needed to achieve satisfaction and gain loyalty relationships between coffee farmers, coffee business people, and customers (Haryati et al., 2021;Winantara et al., 2014).
The growth of coffee shops in strategic routes such as Pantura (North Java Coast Route), opens up business opportunities amidst the onslaught of generation Z who likes to drink coffee.To maintain business sustainability, coffee shops face several challenges in the aspects of price, product quality and service quality.Consumers are still unsatisfied with the product prices, product quality, and service quality.Poor service quality, inconsistent product quality, and relatively expensive prices are the causes of suboptimal consumer satisfaction, which in turn, lowering consumer loyalty.
The study of (Chua & Tsialias, 2024) on the Australian supermarket data shows that inflation expectations are influenced by price escalations.(Zhang et al., 2023) found concept, structure, measurement, and factors that influence consumer purchasing intentions and environmental sustainability to increase quality of product and service.Retail studies (Zakaria et al., 2014), prove that loyalty and customer satisfaction programs have a encouraging impact on customer loyalty, albeit not all programs have the same impact where rebate coupons and member days do not affect customer satisfaction.(Wahab et al., 2016) found the ability to increase 10% in hijab consumer loyalty (n = 234) with satisfaction as a mediator.Study by Mehrez et al. (2023) on Jazan khawlani coffee value chain and marketing strategies interviewing farmers in 6 regions of Jazan reveal marketing patterns and obstacles faced to increase farmer income.Findings of (Areiza-Padilla et al., 2020) on ethnocentrism in developing countries (Colombia) in global services (Starbucks) show that consumers remain loyal despite local brand preferences (n = 305).Study of Vanharanta et al. (2015) examining customer experiences at Starbucks™ outlets, revealed that 24 students were satisfied with the quality of products.The study of Saputra et al. (2024), found a significant effect of the online shopping experience and product quality on the consumer loyalty.El-Said & Al-Hajri (2022) reported that the speed and innovation of service influences satisfaction (p<0.05),perceived risk and increases repeating purchases (p<0.05).(Naveen & Gurtoo, 2020) revealed that service quality increase consumer satisfaction of a total of 100 respondents with coffee products (p<0.05).
This research aims to analyze the influence of quality of service and product as well as price on the consumer satisfaction at the "Beli Kopi" coffee shop in Baureno Village, as an intuitive basis for designing effective strategies to increase satisfaction and loyalty of the consumers, as well as to increase product sales.The study offers a construct model of service quality, product quality and price as exogenous constructs which are modeled as intervening in consumer loyalty through consumer satisfaction to design sustainable strategies based on intuition.This study is expected to increase consumer satisfaction and consumer loyalty by improving service quality, products and prices.Service quality can be improved through employee training, communication skills, and more effective service.Product quality can be improved through improved production processes, raw materials and more varied product variants.Product prices can be considered and optimized to suit consumer values.

Research Design and Location
The research design used quantitative with statistical measurements using the Structural Equation Modeling (SEM) method (Alqershi et al., 2020;Chuenyindee et al., 2022;Mudjahidin et al., 2021).To achieve this design, the associative research strategy was used, because it measures the impact or relationship based on theory which functions to control the causal symptoms of the construct of service quality, product quality, and price, on the consumer satisfaction and loyalty at the "Beli Kopi" coffee shop in Baureno Village, Babat -Bojonegoro St. No. 305, Bojonegoro Regency.

Population and Sampling
This study uses a population of visitors to the "Beli Kopi" coffee shop.Determination of the sample size is accidental non-probability because it is to facilitate access to visitors without special criteria with a minimum number of respondent is 10 times the number of constructs.In this research 5 constructs were involved including service quality (X1), product quality (X2), price (X3), customer satisfaction (Y1), and loyalty (Y2) as further detailed in Table 1.Thus, 10 × 5 = 50 respondents were used in this study (Nikmah et al., 2021;Widodo, 2022).

Research Instrument
This study implemented three main instruments: an online questionnaire with questions about service quality, product, price, satisfaction, and consumer loyalty.The distribution is carried out directly at the optimal time, 18:00 to 21:00 WIB, to facilitate efficient filling, considering the high number of visitors, around 20 to 50 visits.The questionnaire uses a Likert scale (1 -5) with closed questions, referring to the constructs of service quality (5 indicators), product quality (8 indicators), and price (4 indicators) to measure satisfaction (3 indicators) and consumer loyalty (5 indicators).Closed- 6. Ease of maintenance: speed and ease of product repair.Aesthetics (X2.7) 7. Staff competence: competence and friendliness of staff.(Koech et al., 2023;Silas et al., 2022;Muhammad et al., 2024;Yu et al., 2023) Perceived quality (X2.8) 8. Product appearance: product appearance that can be assessed, such as taste and aroma.Price (X3) Price affordability (X3.1) 1.Consumers able to pay the prices set by the shop owner.(Lusianto et al., 2024;Komari, 2021;Nikmah et al., 2021;Pradana et al., 2022) Price competitiveness (X3.2) 2. Consumers often go with the higher price of goods due to a perception a difference quality.Price conformity with product quality (X3.3) 3. Consumers agree to buy a good if they perceive that benefits are higher than or equal to price paid.Price conformity with benefits (X3.4) 4. Consumers frequently compare the price of similar products, taking into account how cheap a product is.( Iswahyuningsih et al., 2022;Anik et al., 2024;Supana et al.,  Repeating purchase (Y2.1) 1. Post-purchase satisfaction influences subsequent behavior.(Silas et al., 2022;Zhang et al., 2023;Zukhrufani & Ratnasari, 2022) Habits to consume the brand (Y2.2) 2. Buyers usually consume the brand after repeating purchases.Always love the brand (Y2.3) 3. Loyal buyers always love the brand.
door interviews were also conducted to deepen understanding, and direct observations in the shop were carried out to observe consumer behavior and interactions with staff.Interview transcriptions and observation results were then analyzed to gain a more holistic understanding.The operational constructs was detailed in Table 1.

Data Analysis
This research used two data analysis methods, namely quantitative descriptive data analysis and Structural Equation Model (SEM) (Rossi & Rivetti, 2023).Quantitative descriptive data analysis was used to describe research characteristics, such as research location and respondent characteristics, by processing data using available statistical formulas either manually or using a computer.Meanwhile, SEM analysis was used to analyze the influence between latent constructs and their indicators, as well as the relationship among latent constructs, using SmartPLS software.The research model consisted of two parts, namely an outer model (measurement model) and an inner model (structural model) (Yufei et al., 2022).Model evaluation was carried out by paying attention to convergent validity (factor loading ≥ 0.50) and discriminant validity (correlation between constructs > 0.50) (Lidiawan, 2024).Reliability was measured by composite reliability criteria ≥ 0.7 and Cronbach's  ≥ 0.6.In the structural model, R 2 was used with criteria (weak model ≤ 0.25, moderate ≤ 0.45, strong ≥0.70).The criteria for good predictive validity is Q 2 > 0, while full collinearity criteria was concluded if the Variance Inflation Factors (VIF) > 3.3.The effect size criteria (weak > 0.02, medium > 0.15 , strong > 0.35) was also taken into consideration (Komari et al., 2024).Goodness of fit was assessed through criteria such as APC (p-value ≤ 0.05), ARS (p-value ≤ 0.05), RSCR (acceptable if ≥ 0.7, ideal if = 1), and SSR (acceptable if ≥ 0.7) (Purwati et al., 2020).Table 2 detailed parameters and their standard values used in this research.

Theoretical basis
Several works have been reported on the relationship between quality of products and services as well as product price towards satisfaction and loyalty of the customers.Constructive and significant effect of service quality on consumer satisfaction is reported for different products or sectors, including coffee shop (Rizki et al., 2021), "geprek" chicken (Indajang et al., 2023), small holder bank (Tanisah & Maftukhah, 2015), restaurant (Sudarso & Sukiman, 2023), and hospital (Olvin et al., 2023), health center (Oktari et al.2020), public vehicle (Chuenyindee et al., 2022), tourism (Lesmana et al., 2021), laundry (Khair et al., 2023), and many others.Sani et al. (2024), however, found that service quality has no effect on loyalty.Correlation of product price and consumer satisfaction was reported for automobile (Yoristar, 2016), fried chicken (Sudarso & Sukiman, 2023), laundry (Khair et al., 2023).Sudarso & Sukiman (2023) also found that product quality influences satisfaction and loyalty the customers.Meanwhile, (Khair et al., 2023) also found that satisfaction of customers has a significant impact on customer loyalty.
Figure 1.Research conceptual framework (H = hypothesis, number is in accordance to Table 3)

Model Hypothesis
The conceptual framework was presented in Figure 1.Hypothesis decision models with null hypothesis criteria will be rejected if the p-value is ≤0.05 and the T-statistic value is >1.65 and the null hypothesis will be accepted if the p-value is >0.05 and the T-statistic value is <1 .65.There were 7 hypothesis detailed in Table 3.

Respondent Characteristics
Figure 1 summarize the characteristic of respondent who were customer of "Beli Kopi" coffee shop.Based on data from 50 respondents, the customers of "Beli Kopi" have profile which shows that the majority of customers earn more than IDR 2.50 million per month.This is in accordance with Pontoh (2011) where consumption follows income.According to (Vitrianingsih, 2018) marital status and education level influence consumption patterns.In the "Beli Kopi", the majority of respondents are unmarried (64%) and well educated (82% have bachelor degree

Marital status
Marry respondents were at 17-25 year (70%), indicating a trend in coffee consumption among teenagers for relaxation.Women are more dominant (70%) as consumers compared to mans.This is in accordance with the characteristics of women who easily accept recommendations and tend to be purchasing decision makers (Fitriani, 2019).Overall, "Beli Kopi" reaches middle class consumers with a diverse profile, especially young, highly educated women.These findings are important for "Beli Kopi" in formulating appropriate marketing strategies to reach the target market more effectively.

Descriptive Statistics
The quality of "Beli Kopi" service is based on five indicators, namely assurance, empathy, responsiveness, reliability and tangible.Figure 2a summarizes the score of each indicator.The results show that the assurance indicator (X1.4) with an average score of 4.08 is the highest, indicating that "Beli Kopi" consumers choose products based on quality guarantees and employee service.The empathy indicator (X1.5) with an average score of 3.76 is the lowest, indicating that there is still room for increasing employee attention and concern for customers.
Analysis of the product quality construct (X2) shows that the performance indicator (X2.1) with an average score of 4.24 is the highest, indicating consumer satisfaction with the basic benefits of the product (Figure 2b).The reliability indicator (X2.3) with an average score of 3.70 is the lowest, indicating that there are still deficiencies in dealing with technical problems.The results of the price construct analysis (X3) show that the price conformity to product quality indicator (X3.3) with an average score of 4.18 is the highest, indicating that "Beli Kopi" consumers consider the product price to be in accordance with its quality.The price conformity to benefits indicator (X3.4) with an average score of 3.98 is the lowest, indicating that consumers still compare product prices with other products (Figure 2c).
Analysis of the Consumer Satisfaction construct (Y1) shows that the indicators conformity to expectations (Y1.1) and Intention to Revisit (Y1.2) with an average score of 4.08 are the highest, indicating that "Beli Kopi" consumers are satisfied with the product and service (Figure 2d).The indicator Y1.3 (willingness to recommend) with an average score of 3.88 is the lowest, indicating that there is still room for increasing consumer loyalty.Analysis of the consumer loyalty construct (Y2) shows that the indicator always likes the brand (Y2.3) with an average score of 4.08 is the highest, indicating consumer loyalty to the "Beli Kopi" brand (Figure 2e).The brand consuming habits indicator (Y2.2) with an average score of 3.80 is the lowest, indicating that there is still room for increasing consumer purchasing frequency.

Outer Model
The validity and reliability testing model is a research model that examines the impact of service quality, product quality, and product price on the satisfaction and loyalty of consumers of "Beli Kopi".Convergent validity with the outer loading value for each indicator >0.7, shows that the indicators are valid in forming latent constructs.The value of average variance extracted (AVE) >0.5, indicating the construct is able to describe >50% of the indicator variance.There are no significant problems related to the convergent validity of the test model.For discriminant validity, the cross loading value of each indicator is >0.70 and is greater than the cross loading value of other constructs.The composite reliability value for all constructs is >0.70, indicating the measurement model is valid (Figure 3).The Cronbach  value for all constructs >0.60, indicating good internal consistency reliability.This research model is valid and reliable that can be used to analyze the effect of service quality, product quality, and price on consumer satisfaction and loyalty "Beli Kopi".

Inner Model
The determination coefficient R 2 = 0.728 is categorized as a strong model, representing that the model can explain 72.8% of the variation in consumer satisfaction (Figure 4).This implies that quality of product and service, as well as product price contribute significantly to consumer satisfaction.The R 2 value of 0.721 shows that the model explains 72.1% of the variation in consumer loyalty, categorized as a strong model.This means that consumer satisfaction contributes significantly to consumer loyalty.Meanwhile, the relevant prediction coefficient Q-square is that the Q 2 value is 0.711, indicating that the model has good predictive relevance.This infers the model can predict consumer satisfaction well.The Q 2 value of 0.715 concludes that the model has good predictive relevance.This means that the model can predict consumer loyalty well.Both R 2 and Q 2 values show that this research model is strong and has good predictive relevance.This model can be used to elucidate and foresee the satisfaction and loyalty of consumers of "Beli Kopi" based on the quality of product and service, plus product price.Table 4 shows that the research model does not experience multi-collinearity as indicated by the Variance Inflation Factor (VIF) value of less than 3.3 for all constructs, namely product quality (3.083), price (2.090), and consumer satisfaction (1.000).Table 5 shows based on the size effect value, construct of product quality (X2) has the greatest influence (0.608) on consumer satisfaction (Y1), followed by price (X3) (0.298) and service quality (X1) (0.009).Satisfaction of consumers (Y1) has a large influence (0.849) on the loyalty of consumers (Y2).The model of final hypotheses is depicted in Figure 5.The fit model (Table 6) shows good suitability (good fit) with an APC value of 0.305 and ARS 0.724 (p-value ≤ 0.05).No information is available for further evaluation on RSCR and SSR.

Final Hypothesis Model
As summarized in Table 7, this research found that quality of product (X1) and service (X2), as well as product price (X3) positively and significantly influence the satisfaction of consumers (Y1).These three constructs play an important role in increasing satisfaction of the consumers of "Beli Kopi" coffee shop.Furthermore, the satisfaction of consumer (Y1) also has a significant and positive influence on loyalty of consumers (Y2).This means that consumer satisfaction is the main determining factor in building consumer loyalty.Furthermore, this research also found that the three variables, namely quality of service (X1), quality of product (X2), and product price (X3), have a significant indirect influence on the loyalty of consumers (Y2) through satisfaction of consumers (Y1) as summarized in Table 8.This implies that improving the three (quality of service and product, plus prices) will increase the satisfaction of consumers, and ultimately increase the loyalty of consumers.Conversely, a decrease in these three constructs will reduce satisfaction and loyalty of the consumers.

Impact of Quality of Service and Product and Price on Satisfaction
In the modern era of intense competition, the quality of service and product as well as product price are the main key in retaining customers.The research at "Beli Kopi" coffee shop show that the three constructs have a constructive and significant impact on satisfaction of the consumers.The quality of service has an influence of 10.9%, product quality has 60.8%, and price has 29.8%.These findings indicate that "Beli Kopi" needs to advance the quality of its services and products, as well as maintain prices in line with consumers' perceived value to elevate the satisfaction and loyalty of the consumers.Results in Table 7 show that the three independent constructs positively and significantly influence satisfaction of the consumer of "Beli Kopi".The quality of service (X1) has an influence of 10.9% (p-value < 0.001), meaning that high quality of service can proliferate the satisfaction of consumers.The most influential service quality indicators are responsiveness (X1.3) and assurance (X1.4).The majority of consumers (30% and 34%) assess that "Beli Kopi" employees are quick in responding to consumers and trustworthy.The product quality construct (X2) has an influence of 60.8% (p-value < 0.001).This shows that good quality of product can improve the satisfaction of consumers.
The most influential product quality indicators are aesthetics (X2.7) and perception of quality (X2.8).The majority of consumers (40% and 34%) consider that the beauty of the product (cup) is attractive and has good quality.The price construct (X3) has an influence of 29.8% (p-value < 0.001).This shows that prices that are in line with consumers' perceived value can increase consumer satisfaction.The most influential price indicator is the suitability of price to the quality of product.The majority of consumers (30%) think that product price of the "Beli Kopi" commensurate with the quality offered.This research shows that quality of service, quality of product, and product price significantly and constructively influence the satisfaction of consumers at "Beli Kopi" coffee shop in Baureno Village.The "Beli Kopi" needs to advance the quality of its products and services, as well as maintain prices in line with consumers' perceived value to increase satisfaction and loyalty of the consumers.This study is in line with (Sari & Amalia, 2023), the quality of service positively impacts the satisfaction consumers of the "Kopi Kenangan," although quality fail to influence loyalty of the consumers.

The Impact of Satisfaction on Loyalty of Consumers
The satisfaction of consumer is a fundamental conception in research of consumer behaviour and marketing.Consumers who are satisfied with a product, service, or brand tend to repurchase and provide recommendation to others.This research examines the influence of consumer satisfaction on consumer loyalty in "Beli Kopi", Baureno Village, Bojonegoro.Based on Table 7, the analysis results show that satisfaction of the consumer (Y1) has an impact on the loyalty of consumer (Y2) with path coefficient of 0.849 and p-value <0.001.This implies that satisfaction of consumers positively and significantly impact the loyalty of consumers at the "Beli Kopi".The path coefficient value of 0.849 indicates that satisfaction of the consumers contributes 84.9% to the loyalty of consumers.This finding is strengthened by questionnaire data which shows 32% of respondents stated "strongly agree" on the indicator of interest in returning to visit (Y1.2) from the consumer satisfaction construct.This shows that the most consumers of "Beli Kopi" are satisfied with the product and are interested in buying again.This research proves that satisfaction of consumer of "Beli Kopi" has a significant influence on their loyalty.Increasing consumer satisfaction through good quality products and services will encourage consumer loyalty and increase company profits.The result of this tudy is in line with (Wulandari et al., 2016) about tourists in using Booking.comservices where satisfaction of consumers positively and significantly impact the loyalty of tourists with the significance value is 0.011 (less than α = 0.05) and the t-count value (2.593) is larger than t-table value (1.661).These results are in a positive direction, which means that the higher tourist satisfaction, the greater the loyalty of tourists in using the service.

Strategy to Increase Sales at the "Beli Kopi"
A basic complex strategy to increase sales at the "Beli Kopi" shop in Baureno Village, Baureno District, Bojonegoro Regency can be built through a holistic approach.Providing the best service is the main key to attracting and retaining customers by creating a comfortable atmosphere online and offline and optimizing employee performance.High quality products at appropriate prices and attractive promotions will make "Beli Kopi" the main choice for coffee lovers in Baureno.With the right combination of strategies, including improving service, product quality and effective promotions, "Beli Kopi" can compete and become the main choice amidst competition with other local coffee shops.

CONCLUSION
This research analyzes the impact of quality of service and product as well as product price on the satisfaction and loyalty of consumers of the "Beli Kopi" coffee shop in Baureno Village, Bojonegoro.Results show that the three independent variables have a positive and significant influences on the consumer satisfaction, with product quality as the most influential variable.Furthermore, the satisfaction of consumers also has a constructive and significant influence on the loyalty of consumers.This research recommends several strategies to increase sales at "Beli Kopi" coffee shop, such as providing the best service, offering high quality products at appropriate prices, and providing attractive promotions.This research model is valid and reliable, so it can be used to explain and predict consumer satisfaction and consumer loyalty of "Beli Kopi" coffee shop based on service quality, product quality, and price.

Figure 1 .
Figure 1.Summarize of respondent characteristic of the "Beli Kopi" customers

Table 1 .
List of detail operational constructs

Table 2 .
Model evaluation criteria along with their standard values

Table 3 .
Detailed hypothesis about consumer satisfaction and loyalty at "Beli Kopi" coffee shop

Table 4 .
Testing for multi-collinearity

Table 6 .
Model fit measures

Table 81 .
Indirect contribution of the exogenous construct to endogenous construct