Implementation of Digital Marketing to Increase Customer Trust and Customer Loyalty of MSME Coffee Shops in Badung Regency

Ida Ayu Putri Widiasuari Riyasa (), Nyoman Indah Kusuma Dewi, Gede Pradiva Adiningrat and Putu Adriani Prayustika
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Ida Ayu Putri Widiasuari Riyasa: Politeknik Negeri Bali
Nyoman Indah Kusuma Dewi: Politeknik Negeri Bali
Gede Pradiva Adiningrat: Politeknik Negeri Bali
Putu Adriani Prayustika: Politeknik Negeri Bali

A chapter in Proceedings of the International Conference on Sustainable Green Tourism Applied Science - Social Applied Science 2024 (ICoSTAS-SAS 2024), 2024, pp 239-246 from Springer

Abstract: Abstract Indonesia ranks third globally in coffee production, with a total output of 794.8 thousand tonnes in 2022, representing a 1.1 percent growth over the previous year. Over time, the growing number of MSMEs in the trade sector in Badung Regency has led to an increase in coffee shop competitors. This study aims to implement digital marketing strategies to enhance customer confidence and loyalty towards MSME coffee shops located in Badung Regency. The sample was selected using a non-probability selection technique called purposive sampling. The participants in the study were individuals who frequented coffee shops, with a sample size of 104 individuals. The data were analyzed using the Structural Equation Modeling-Partial Least Squares (SEM-PLS) approach. The findings of this study indicate that digital marketing exerts a favorable and substantial influence on client loyalty and trust. Customer trust exerts a beneficial and significant impact on customer loyalty. Moreover, customer trust mediates the relationship between digital marketing and client loyalty. The research findings have theoretical implications as they contribute empirically to understanding the relationship between digital marketing characteristics, customer trust, and customer loyalty in management science marketing.

Keywords: Digital Marketing; Customer Trust; Customer Loyalty; Coffee Shop (search for similar items in EconPapers)
Date: 2024
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DOI: 10.2991/978-94-6463-622-2_27

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