SERVICE QUALITY AND STORE ATMOSPHERE EFFECTS TOWARDS CUSTOMER PURCHASING DECISION (A STUDY CASE AT COFFEE PALACE JABABEKA)

Abstract

This research is done to solve the anomalies that occurred in Coffee Palace regarding the difference in monthly visitors and monthly sales where monthly visitors keep decreasing but somehow it didn‟t influence the monthly sales. This research focuses on the decreasing of monthly visitors and thus using the service quality and store atmosphere. There are 9 variables that will be used in this research are service quality (tangible, empathy, responsiveness, reliable, assurance) and store atmosphere (exterior, general interior, store layout, display) towards the customer purchasing decision from the perspective of majority customer in there which is the students of President University. For this purpose, the questionnaire as the tool of this research is created to measure those aspects and ensure the quality of research that also bring valid outcome to public. From the results, there are only 2 (two) variables from 9 (nine) that significantly influence customer purchasing decision which are assurance from service quality and store layout from store atmosphere. When all variables measured altogether, it has value of 0.000 which means all of the variables influence the dependant variable; while when they measured one by one, assurance has value of 0.021 and store layout has value of 0.000 which shown that they significantly influence the dependant variables compare to other variables. The independent variables have strong correlation with the dependant variables that shown in the model summary where the R value is 0.729. The result of this research shows that service quality and store atmosphere has 53.2% influence power towards President University students purchasing decision with the conclusion that the comfortable and secure place (assurance) and the wide atmosphere and not too crowded (store layout) have the most significant influence towards their customer purchasing decision.