Analysis of Millennial Loyalty in Makmur Jaya Coffee Consumers: A SEM-PLS Based Mediation Study

Abstract

Millennials represent a significant consumer segment in the coffee shop industry, yet their loyalty is often challenged by diverse preferences and intense market competition. This study investigates the determinants of millennial consumer loyalty at Kopi Makmur Jaya by examining the roles of service quality, customer satisfaction, and consumer trust. The research aims to analyze both the direct and indirect effects of service quality on loyalty, while testing the mediating influence of satisfaction and trust. A quantitative survey method was employed, targeting active millennial consumers, and data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) to assess validity, reliability, and inter-variable relationships. The findings reveal that service quality has a significant positive impact on both satisfaction and trust, which subsequently enhance consumer loyalty. Moreover, satisfaction and trust serve as critical mediators, reinforcing the pathway between service quality and loyalty. These results highlight that loyalty among millennial consumers is not only driven by service performance but also by emotional and relational factors. The study provides practical implications for coffee shop managers, suggesting the need to prioritize service excellence while fostering satisfaction and trust as strategic levers for building long-term customer engagement and competitivenes.