The impact of servicescape on customer loyalty in branded coffee chains in Ho Chi Minh city (HCMC)

Abstract

Customer Loyalty is an important factor in the secret of success for any industry. Having a good level of understanding customer’s buying decision and repurchasing intention is a critical advantage to become a successful business. There are many factors that impact customer loyalty but this research will only focus on some main components included in Servicescape Model. This study aims to measure the customer loyalty of customers toward Ho Chi Minh City branded coffee chains based on the elements including in physical environment. The main issue addressed is the level of loyalty and the Servicescape factors affecting customer loyalty. The findings of this research are useful for any branded coffee chains’ managers who want to develop their performance to not only maintain existing customers but also attract new customers. The quantitative approach is mainly used in this study. The questionnaire utilized is based on Servicescape instrument that identifies several dimensions in the store environment. The findings indicate that the level of influence in each factor is quite different from the others. There are not only physical aspects but also social aspect that can affect directly to customer loyalty. Generally, the study implies that HCMC branded coffee chains’ managers should improve both their settings with several items and the staff knowledge to best serve the customers and get their belief. It will definitely affect their revisit decision.