The Influence of Price and Service Quality on Repurchase Intention at Ara Coffee in Pontianak City

Electronic Journal of Education, Social Economics and Technology Vol. 6, No. 2, (2025), pp. 1~9, Article ID: 1171 ISSN 2723-6250 (online) DOI: https://doi.org/10.33122/ejeset.v6i2.1171 Research Article The Influence of Price and Service Quality on Repurchase Intention at Ara Coffee in Pontianak City Rendi*, and Ananda Archie Faculty of Economics and Business, Universitas Muhammadiyah Pontianak, Pontianak, Indonesia, 78124 *Corresponding Author: | Phone: +62 857-5257-7256 ABSTRACT This study aims to analyze the influence of price and service quality on consumer repurchase intention at Ara Coffee, Pontianak. A quantitative approach using multiple linear regression was employed to analyze data obtained from 150 respondents selected through purposive sampling. Data were collected via questionnaires distributed to Ara Coffee customers. The results show that price and service quality have a positive and significant influence on repurchase intention, with a coefficient of determination (R²) of 47.9%, indicating that these two variables explain nearly half of the variation in repurchase intention. These findings suggest that affordable pricing and responsive, consistent service quality play a crucial role in increasing customer loyalty. This research contributes to the development of consumer behavior and service management theory and provides practical insights for Ara Coffee in formulating more effective pricing and service strategies to enhance customer satisfaction and loyalty. Keywords: Price; Service Quality; Repurchase Intention 1. INTRODUCTION The rapid growth of the industrial sector has intensified competition across various business fields. Every company now has the same opportunity to capture target markets, attract customers, and maintain its presence amid increasingly fierce competition. This phenomenon is also evident in the coffee shop business sector, which has shown significant growth in line with the rise of economic activities in Indonesia. Both traditional and modern coffee shops have become an essential part of people’s lifestyles, especially in major and developing cities, including Pontianak in West Kalimantan Province. The increasing number of coffee shops provides consumers with more choices to enjoy coffee, relax, or have discussions with friends. In Pontianak, coffee houses, cafés, and coffee shops have grown rapidly, offering various concepts, atmospheres, and price ranges. According to the Kamus Besar Bahasa Indonesia (KBBI), a warung is a place where customers can order beverages such as coffee, tea, or snacks, and enjoy additional entertainment such as music or Wi-Fi facilities. This illustrates a shift in consumer perception from merely a place to drink coffee into a social space designed with aesthetic and comfortable concepts, supported by attractive interior designs that create a pleasant experience for visitors. Based on data from the Investment, Manpower, and One-Stop Integrated Services Office (PTSP) of Pontianak City in 2024, there are 706 registered coffee shop businesses spread across the city. In the Pontianak Barat District, particularly in Sungai Jawi Luar Subdistrict, there are 11 active coffee shops owned by local entrepreneurs such as Yasmin Nila Sari, Wahyuni, Tiara Alaska Putra, Hui Ngo, Achmad Rafiqi Azka, Olvy Ghea Andaresta, Gunawan Perajogo, Iwan Setiawan, Havigar, Mariana Wina Megawati, and Ari Argianto. One of the well-developed businesses in this area is Ara Coffee, which operates in the small café category and is owned by Ari Argianto. Ara Coffee was founded in 2020 by Ari Argianto along with his two colleagues, Riko and Aliong. The idea came from their habit of spending time at coffee shops during college to relax or complete assignments together. From this routine emerged the initiative to open their own coffee shop, named “Ara Coffee,” which is derived from the initials of the founders’ first names. Having been in operation for four years, Ara Coffee offers various types of beverages and snacks priced between Rp6,000 and Rp13,000. The variety of products and price options reflects an effort to adjust to the purchasing power of diverse consumers, ranging from students and young workers to the general public. In the beverage business such as coffee shops, price plays a crucial role in influencing purchasing decisions. Price functions not only as a medium of exchange but also as a reflection of perceived value and product quality in the minds of consumers. Mardia et al. (2021) define price as the amount of money consumers must pay to obtain the benefits of a product or service. Indrasari (2019) states that price represents the monetary value paid by consumers to acquire a desired product. Meanwhile, Kotler and Armstrong (2021) explain that price is the amount of money charged for a product or service, or more Page 1 of 9 Rendi & archie Electronic Journal of Education, Social Economic and Technology, Vol. 6, No. 2, (2025), pp.1~9, Article ID: 1171 broadly, the total value that customers give up in exchange for the benefits of owning or using a product. For Ara Coffee, implementing a competitive pricing strategy is essential since its main market segment consists of middle to lower-income consumers. Price affordability is a major factor in attracting and retaining customers, especially amid tight competition with other coffee shops offering similar price ranges. However, competitive prices must still correspond to product and service quality so that customers feel the value they receive is equivalent to the price they pay. In addition to price, service quality is a fundamental element in shaping customer satisfaction and influencing repurchase decisions. Manengal et al. (2021) state that service quality is a dynamic condition closely related to products, services, human resources, processes, and environments that can meet or even exceed customer expectations. Dzikra (2020) adds that service quality is a strategic system involving all organizational components, from management to employees, aimed at fulfilling customer needs and expectations. Pertiwi (2021) also explains that service quality is a dynamic condition associated with products, services, and human resources, including the control of excellence levels to meet consumer expectations. Furthermore, Anggoman et al. (2020) define service quality as the level of excellence expected and the control over that level to fulfill customer needs. Field observations at Ara Coffee indicate that the overall service quality is fairly good, as shown by the friendliness and communicative behavior of the staff. However, inconsistencies were found in terms of serving time and order handling during certain hours. Some customers experienced longer waiting times, while others were served faster. This condition suggests the need for improvements in reliability and responsiveness to enhance consistency and efficiency in service delivery. According to the SERVQUAL model, service (...truncated)