A path analysis of customer loyalty of homegrown coffee shops in Davao region

Received: 8 June 2018 Accepted: 11 July 2018 Published: 2 August 2018 Themain purpose of the study is to determine the factors that lead to customer loyalty of homegrown coffee shops. This studywas also conducted to investigate the relationship ofmarketingmix, customer expectation, customer experience, customer satisfaction and customer loyalty among homegrown coffee shops. Quantitative study utilized descriptive correlational and causal comparative approach as the research design was utilized in this study. The study employed path analysis to allow the testing of hypothesis based on a proposed causal model. The data were obtained from the 580 homegrown coffee shop customers in Davao Region, Philippines. Sets of questionnaires were used as instruments. Pearson product moment correlation was used to determine the interrelationships between the marketing mix, customer expectation, customer experience, and customer satisfaction to customer loyalty. Multiple linear regression was performed to determine the signi􀅭icant predictor of customer loyalty. Path analysis was utilized in order to analyze the path relationships among the variables. The 􀅭indings of the study revealed that the level of marketing mix, the level of customer expectation, the level of customer experience, the level of customer satisfaction, and the level of customer loyalty as perceived by the customers of homegrown coffee shopswere all ratedhigh. Thismeans that there is a high customer satisfaction and customer loyalty in homegrown coffee shops inDavaoRegion. Moreover,marketingmix, customer expectation, customer experience, and customer satisfaction were highly correlated to customer loyalty. This indicates that the effect to marketing mix, customer expectation, customer experience and customer satisfaction would have a direct effect to customer loyalty. Meanwhile, all exogenous variables have signi􀅭icant direct in􀅭luence to customer loyalty. Furthermore, the 􀅭inal model passed all the goodness of 􀅭it indices criteria CMIN/DF, p-value, TLI, CFI, GFI, RMSEA, PCLOSE.