The Effect of Service Quality and Atmosphere Quality on Customer Loyalty on Domestic Cafes in Addis Ababa
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Date
2024-07-02
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A.A.U
Abstract
This study sought to investigate the effect of service quality and atmosphere quality on customer loyalty in case of domestic cafes located in Addis Ababa, Ethiopia. 200 café customers were selected through a convenience sampling technique and data collected were examined using statistical software (spss version 20).Both primary and secondary data sources were used in the study to obtain pertinent information. The service quality dimensions responsiveness, reliability, empathy, and assurance were used to analyze the relationship between service quality & customer satisfaction and loyalty where the study found that service quality dimensions of responsiveness, reliability, empathy, and assurance all had significant positive relationships with customer satisfaction, but only responsiveness, reliability, and empathy also had positive relationships with customer loyalty, while assurance did not directly impact loyalty despite its link to satisfaction. The atmosphere quality dimensions lighting, music & sound, cleanliness, and layout & design were similarly used to analyze the relationship between service quality & customer satisfaction and loyalty where the study found that lighting and music had significant positive relationships with customer loyalty, but layout/design and cleanliness did not. Further, lighting, sound, and cleanliness all had significant positive relationships with customer satisfaction, though layout and design did not. According to the report by prioritizing improvements in these areas and catering to the preferences and needs of customers, café establishments can enhance customer satisfaction, foster long-term loyalty, and ultimately achieve success in a competitive market.