Service Quality and Employee Welfare Effects on Customer Satisfaction: Evidence from Indonesian Coffee Chain
Keywords:
Service quality, Employee welfare, Customer satisfaction, Coffee shop industry, Hospitality managementAbstract
The intensifying competition in the specialty coffee industry demands comprehensive understanding of customer satisfaction determinants beyond product quality alone. Despite theoretical expectations that both service quality and employee welfare positively influence customer satisfaction, prior empirical findings remain inconsistent regarding their relative contributions and pathways. This study examines the direct and simultaneous effects of service quality and employee welfare on customer satisfaction in coffee shop settings. Employing a quantitative cross-sectional design, primary data were collected through structured questionnaires administered to baristas at Dua Coffee establishments across five branch locations in Greater Jakarta, Indonesia. The findings reveal asymmetric effects: service quality demonstrates a significant positive influence on customer satisfaction, whereas employee welfare exhibits a positive but insignificant direct effect. However, both variables jointly explain meaningful variation in customer satisfaction when examined simultaneously. These results advance service management theory by clarifying that service quality operates as a proximate satisfaction determinant while employee welfare exhibits a positive but statistically insignificant direct effect, suggesting potential indirect mechanisms warranting future mediation analysis. These results offer practitioners preliminary evidence that service quality improvements may yield more immediate satisfaction gains, though balanced attention to both factors remains advisable.
References
Adams, B. (2016). Does organizational form drive competition? Evidence from the coffee shop industry (NBER Working Paper No. 22548). National Bureau of Economic Research. https://www.nber.org/system/files/working_papers/w22548/w22548.pdf
Anderson, E. W., & Sullivan, M. W. (1993). The antecedents and consequences of customer satisfaction for firms. Marketing Science, 12(2), 125–143. https://doi.org/10.1287/mksc.12.2.125
Baruch, Y., & Holtom, B. C. (2008). Survey response rate levels and trends in organizational research. Human Relations, 61(8), 1139–1160. https://doi.org/10.1177/0018726708094863
Chi, C. G., & Gursoy, D. (2009). Employee satisfaction, customer satisfaction, and financial performance: An empirical examination. International Journal of Hospitality Management, 28(2), 245–253. https://doi.org/10.1016/j.ijhm.2008.08.003
Cronbach, L. J. (1951). Coefficient alpha and the internal structure of tests. Psychometrika, 16(3), 297–334. https://doi.org/10.1007/BF02310555
Cronin, J. J., Jr., & Taylor, S. A. (1992). Measuring service quality: A reexamination and extension. Journal of Marketing, 56(3), 55–68. https://doi.org/10.1177/002224299205600304
Creswell, J. W., & Creswell, J. D. (2018). Research design: Qualitative, quantitative, and mixed methods approaches (5th ed.). SAGE Publications.
Deloitte. (2024). Deloitte Coffee Study 2024. https://www.deloitte.com/ch/en/Industries/consumer/perspectives/coffee-study.html
Dillman, D. A., Smyth, J. D., & Christian, L. M. (2014). Internet, phone, mail, and mixed-mode surveys: The tailored design method (4th ed.). Wiley. https://doi.org/10.1002/9781118456149
Dimock, M. (2019, January 17). Where millennials end and Generation Z begins. Pew Research Center. https://www.pewresearch.org/short-reads/2019/01/17/where-millennials-end-and-generation-z-begins/
Duman, F. (2020). Effects of coffee shops’ food quality, service quality and ambience quality on customer satisfaction and loyalty in Batman, Turkey. International Journal of Innovative Approaches in Social Sciences, 4(3), 54–68. https://doi.org/10.29329/ijiasos.2020.278.1
Eisenberger, R., Huntington, R., Hutchison, S., & Sowa, D. (1986). Perceived organizational support. Journal of Applied Psychology, 71(3), 500–507. https://doi.org/10.1037/0021-9010.71.3.500
Gakovic, A., & Tetrick, L. E. (2003). Perceived organizational support and work status: A comparison of the employment relationships of part-time and full-time employees attending university classes. Journal of Organizational Behavior, 24(5), 649–666. https://doi.org/10.1002/job.206
Glejser, H. (1969). A new test for heteroskedasticity. Journal of the American Statistical Association, 64(325), 316–323. https://doi.org/10.1080/01621459.1969.10500976
Green, S. B. (1991). How many subjects does it take to do a regression analysis? Multivariate Behavioral Research, 26(3), 499–510. https://doi.org/10.1207/s15327906mbr2603_7
Hallowell, R. (1996). The relationships of customer satisfaction, customer loyalty, and profitability: An empirical study. International Journal of Service Industry Management, 7(4), 27–42. https://doi.org/10.1108/09564239610129931
Heskett, J. L., Jones, T. O., Loveman, G. W., Sasser, W. E., Jr., & Schlesinger, L. A. (1994). Putting the service-profit chain to work. Harvard Business Review, 72(2), 164–174. https://hbr.org/1994/03/putting-the-service-profit-chain-to-work-2
Hogreve, J., Iseke, A., Derfuss, K., & Eller, T. (2017). The service–profit chain: A meta-analytic test of a comprehensive theoretical framework. Journal of Marketing, 81(3), 41–61. https://doi.org/10.1509/jm.15.0395
Hwang, J., Choe, J. Y. J., Kim, H. M., & Kim, J. J. (2021). Human baristas and robot baristas: How does brand experience affect brand satisfaction, brand attitude, brand attachment, and brand loyalty? International Journal of Hospitality Management, 99, 103050. https://doi.org/10.1016/j.ijhm.2021.103050
Kurtessis, J. N., Eisenberger, R., Ford, M. T., Buffardi, L. C., Stewart, K. A., & Adis, C. S. (2017). Perceived organizational support: A meta-analytic evaluation of organizational support theory. Journal of Management, 43(6), 1854–1884. https://doi.org/10.1177/0149206315575554
Likert, R. (1932). A technique for the measurement of attitudes. Archives of Psychology. https://legacy.voteview.com/pdf/Likert_1932.pdf
Loveman, G. W. (1998). Employee satisfaction, customer loyalty, and financial performance: An empirical examination of the service profit chain in retail banking. Journal of Service Research, 1(1), 18–31. https://doi.org/10.1177/109467059800100103
Meeprom, S. (2025). Customer experience and satisfaction in coffee consumption: An experiential marketing perspective. Cogent Business & Management, 12(1). https://doi.org/10.1080/23311975.2025.2450296
Mulyana, A., Hidayat, R., & Suryani, T. (2022). Competitive strategies in Indonesia's specialty coffee industry: A multiple case study. Journal of Indonesian Economy and Business, 37(2), 145–162. https://doi.org/10.22146/jieb.v37i2.3254
O’Brien, R. M. (2007). A caution regarding rules of thumb for variance inflation factors. Quality & Quantity, 41(5), 673–690. https://doi.org/10.1007/s11135-006-9018-6
Oliver, R. L. (1980). A cognitive model of the antecedents and consequences of satisfaction decisions. Journal of Marketing Research, 17(4), 460–469. https://doi.org/10.1177/002224378001700405
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12–40. https://www.marketeurexpert.fr/wp-content/uploads/2023/12/servqual.pdf
Pine, B. J., II, & Gilmore, J. H. (1998). Welcome to the experience economy. Harvard Business Review, 76(4), 97–105. https://hbr.org/1998/07/welcome-to-the-experience-economy
Podsakoff, P. M., MacKenzie, S. B., Lee, J.-Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879–903. https://doi.org/10.1037/0021-9010.88.5.879
Purnomo, M., Yuliati, Y., Shinta, A., & Riana, F. D. (2021). Developing coffee culture among Indonesia’s middle-class: A case study in a coffee-producing country. Cogent Social Sciences, 7(1). https://doi.org/10.1080/23311886.2021.1949808
Razali, N. M., & Wah, Y. B. (2011). Power comparisons of Shapiro–Wilk, Kolmogorov–Smirnov, Lilliefors and Anderson–Darling tests. Journal of Statistical Modeling and Analytics, 2(1), 21–33. https://www.researchgate.net/publication/267205556
Rhoades, L., & Eisenberger, R. (2002). Perceived organizational support: A review of the literature. Journal of Applied Psychology, 87(4), 698–714. https://doi.org/10.1037/0021-9010.87.4.698
Schneider, B., Ehrhart, M. G., Mayer, D. M., Saltz, J. L., & Niles-Jolly, K. (2005). Understanding organization-customer links in service settings. Academy of Management Journal, 48(6), 1017–1032. https://doi.org/10.5465/amj.2005.19573107
Spector, P. E. (1985). Measurement of human service staff satisfaction: Development of the Job Satisfaction Survey. American Journal of Community Psychology, 13(6), 693–713. https://doi.org/10.1007/BF00929796
Statista. (2024). Coffee market in Indonesia. Statista Market Insights. https://www.statista.com/outlook/cmo/hot-drinks/coffee/indonesia
Tavakol, M., & Dennick, R. (2011). Making sense of Cronbach’s alpha. International Journal of Medical Education, 2, 53–55. https://doi.org/10.5116/ijme.4dfb.8dfd
Waxman, L. (2006). The coffee shop: Social and physical factors influencing place attachment. Journal of Interior Design, 31(3), 35–53. https://doi.org/10.1111/j.1939-1668.2006.tb00530.x
Winowatan, W. J., Suarta, I. P., & Sukarana, M. (2021). Customer satisfaction on barista service. Journal of Applied Management Research and Emerging Studies (JAMREMS), 2(4), 33–38. https://doi.org/10.47616/jamrems.v2i4.182
Yee, R. W. Y., Yeung, A. C. L., & Cheng, T. C. E. (2011). The service-profit chain: An empirical analysis in high-contact service industries. International Journal of Production Economics, 130(2), 236–245. https://doi.org/10.1016/j.ijpe.2011.01.001
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Watriningsih, Verza Setyono, Yudhistira Adwimurti, Fransisca Hanita Rusgowanto
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
