The Effect of Demographics and Marketing Mix on Purchasing Decisions at Modern and Traditional Coffee Shops in Makassar

 

Arhab Bhirawidha

STIE Harapan Bangsa, Indonesia

Email: abhirawidha@gmail.com

 

Abstract

The rapid growth of the coffee shop industry has led to an increased interest in understanding consumer behavior, particularly in urban areas like Makassar. This study aims to analyze the influence of demographic factors and the marketing mix on purchasing decisions at modern and traditional coffee shops in Makassar. Specifically, it examines the role of age, gender, monthly consumption, product, price, place, and promotion in shaping consumer preferences.The research adopts a quantitative approach, employing logistic regression to assess the relationship between demographic and marketing mix variables (independent variables) and purchasing decisions (dependent variable). Data were collected through questionnaires distributed to 184 respondents who frequently visit coffee shops in Makassar. Prior to analysis, the validity and reliability of the research instruments were thoroughly tested to ensure data accuracy. The findings reveal that demographic factors, including age, gender, and monthly consumption, significantly influence purchasing decisions. Younger consumers tend to prefer modern coffee shops, while those with higher consumption levels are more inclined to choose traditional coffee shops. Interestingly, the marketing mix variables—product, price, place, and promotion—do not show a significant impact on purchasing decisions, diverging from the results of some previous studies. These results have important implications for coffee shop managers in tailoring their strategies to target specific consumer demographics more effectively. Furthermore, the study underscores the need for a deeper exploration of other potential factors beyond the marketing mix that could influence purchasing decisions in the coffee shop industry.

Keywords:

Demographics, Marketing Mix, Purchase Decision, Coffee Shop.

 

Introduction

Coffee is one of the commodities produced from the plantation subsector and contributes greatly to the Indonesian economy, especially as a source of foreign exchange. Indonesia is one of the largest producers of coffee beans in the world after Brazil, Vietnam, and Colombia. Although the value of coffee exports tends to fluctuate, export opportunities remain high. The area of coffee plantations in Indonesia reaches 1.25 million hectares, with the largest contribution from smallholder plantations. Estimated coffee production in 2022 is around 793 thousand tons with productivity of 832 kg/ha.

The coffee industry in Indonesia has very promising opportunities. Demand for coffee continues to increase, and survey results show that coffee consumption per capita has also increased. In 2019, coffee consumption per capita increased by 29.38 percent to 1.171 kg per person per year.

Changes in the consumption patterns of Indonesian society towards more practical consumption patterns have led to changes in coffee drinking behavior. The busyness of working people causes them to look for practical solutions, especially among urban communities. Visiting coffee shops is one of the solutions to fulfill the needs of coffee consumers. In addition, lifestyle changes also contribute to the increasing trend of consuming coffee. All of this creates opportunities for coffee shop businesses (Sudarsono & Rum, 2021).

In some previous studies, coffee shops if interpreted into Indonesian are coffee shops but the embedding of modern and traditional words makes it a different meaning. Modern coffee shops are identified or equated with cafes, namely commercially operated, historical or contemporary locations that are intended to resemble restaurants, and offer beverage and snack services with a choice of drinks that are more than just food (Mohamad Siddeq Husein Ischak et al., 2023).

Meanwhile, traditional coffee shops are identified as coffee shops, coffee shops (warkop, warung kopi) or kopitiam, where simple coffee drinks or the like are offered for consumption by customers. To clarify the differences between modern and traditional coffee shops in this study, the coffee making equipment used is used as an indicator. Modern coffee shops are indicated by the use of espresso machines while Traditional coffee shops are indicated by the use of more traditional coffee making tools such as teapots and filters.

In 2019, the growth of the coffee shop business is predicted to increase to 20%, this is different from the previous year which only reached 10% (Saefudin et al., 2020). The growth of the coffee shop business occurs in various regions, one of which is Makassar City. In 2023 the growth of coffee shops in Makassar City has increased from previous years. The increasing growth of coffee shops in Makassar City has made business actors to innovate and compete with each other in business in Makassar City so that their companies continue to run and are able to compete with several other coffee shops.

There are 119 coffee shops in Makassar by 2023 (Makassar City Tourism Office). As the number of coffee shops in Makassar increases, competition between coffee shops also increases. This competition plays a role in bringing the development of the coffee shop itself from traditional to more modern . coffee shops that used to use simple and traditional tools in making their products, now use more sophisticated and modern tools. Coffee shop owners are willing to spend tens to hundreds of millions to improve product quality as well as the efficiency and effectiveness of their production.

Competition between coffee shops and changes in people's lifestyles encourage changes and developments in the coffee shop business towards a more modern direction to meet market needs. However, it cannot be denied that some traditional coffee shops in Makassar City still exist among the many modern coffee shops. In fact, the existence of these traditional coffee shops cannot be underestimated and some of them are more popular than modern coffee shops.

Figure 1. Traditional Coffee Shop Samples

Source: Researcher Observation Results

Based on Figure 1, the eight traditional coffee shops in Makassar that were established within the span of 2001 to 2018 show that this type of business has survived until today despite being faced with major challenges such as the Covid-19 pandemic. Their operational sustainability reflects that the existence of traditional coffee shops does not solely depend on the ability to adapt to market changes that lead to modernization, but rather on the strength of local cultural appeal and emotional connection with customers. This confirms that traditional coffee shops still have a significant place in the local coffee industry, with their uniqueness and irreplaceable appeal.

The existence of traditional coffee shops refutes the statement that adaptability has a significant impact on the company's competitive advantage (Winata et al., 2016). In this case, of course, there are variables of purchasing decisions that support the sustainability of traditional coffee shops amid competition for modern coffee shops, where consumer behavior influences purchasing decisions (Rasmikayati et al., 2017).

Purchasing decisions are a process in which consumers evaluate various alternative choices and choose one or more alternatives based on certain considerations in purchasing. In choosing a product or service, consumers will sort out all the things that will be used such as product, price, place, and promotion. There are several other things that consumers also consider, namely economic, technological, social, and cultural factors (Rofiq & Hufron, 2018). Purchasing decisions involve consumer judgment and tend to be influenced by personal preferences (Rianto et al., n.d.). Various alternative choices also influence consumer behavior (Joesyiana et al., 2018).

There are several variables that can influence purchasing decisions in customers, especially in the choice of modern and traditional coffee shops, including consumer demographics and marketing mix. Demography is a description of the population. Demography includes the scientific study of the number, geographic distribution, composition of the population, and how these factors change. The dimensions used to measure them include age, population, ethnicity, educational groups, household patterns and others (Suhardi, 2019).

Consumer characteristics based on demographic variables are crucial. Recent research by Rehm et al. (2020)confirms that demographic variables such as age, income, gender, and education level significantly influence consumer purchasing decisions in various types of businesses, including coffeeshops. This finding is important because it proves that not all consumers have similar preferences and consumption patterns and these demographics also serve as the basis for sharper market segmentation.

Marketing mix is a marketing concept that is divided into four interrelated things, called or 4Ps, namely product, price, place, and promotion (Rofiq & Hufron, 2018). Marketing mix is the marketing tools used by companies to achieve their goals in the markets they target in order to achieve sustainability (Gunawan & Melinda, 2021). These variables will underlie a consumer's choice between modern and traditional coffee shops.

In research (Marina et al., 2022) supports that age and gender have an influence on purchasing decisions. In contrast to research (Meitasari et al., 2020) where age and gender have no influence on purchasing decisions. In research (Sunariani & Ardianti, 2023), (Smith & Johnson, 2021), and (Rehm et al., 2020)support that purchasing power affects purchasing decisions. This contradicts research (Furqon et al., 2022) where purchasing power has no influence on purchasing decisions.

In research (Sudrajad & Sutanto, 2020), (Evan & Christian, 2021),(Barcelona et al., 2019),(Ningsih et al., 2021), and (Gunawan & Melinda, 2021) support that all dimensions of the marketing mix affect purchasing decisions. In contrast to research (Buwono, 2022) which found that the price dimension had no effect, then (Nursaid et al., 2022) (Magdalena et al., 2022) and found that product and promotion had no effect, then (Hermawan, 2020) found the Promotion dimension had no effect and (Seprianti et al., 2023) found product, place, and promotion had no effect on purchasing decisions.

The contradictory research results among various researchers indicate that there are differences of opinion regarding the effect of marketing mix and consumer demographics on purchasing decisions. In the case of modern and traditional coffee shops, this is a concern for researchers to find out which variables influence consumer purchasing decisions for modern and traditional coffee shops.

Based on the background, this study aims to analyze the influence of consumer demographics (age, gender, education, and income) and the marketing mix (product, price, place, and promotion) on purchasing decisions at modern and traditional coffee shops in Makassar City, as well as to compare consumer preferences between the two. This research is expected to provide theoretical benefits by enriching the literature on the influence of these variables in the context of coffee shops, practical benefits for business actors in formulating effective business strategies, and policy benefits for the government and business associations to support the sustainability of both traditional and modern coffee shops amidst increasingly fierce competition.

 

Methods

Population, Sample and Sampling Technique

Population

Population is a whole of objects, people / individuals, groups or even cases, from which the research will be generalized (Swarjana, 2022, p. 5). The population in this study were residents of Makassar City.

Sample

The sample is a part taken from the population (Swarjana, 2022, p. 5)The sample used in this study is the citizens of Makassar City who like to do activities in modern or traditional coffee shops.

Data Collection and Analysis Technique

Data were collected using structured questionnaires distributed to respondents. The questionnaire measured demographic factors, marketing mix elements, and purchasing decisions.

To analyze the data, the study applied logistic regression as the primary statistical method. This technique was chosen to identify the relationship and predictive strength of the independent variables (demographics and marketing mix) on the dependent variable (purchase decision). The analysis included the following steps:

1.     Instrument Validation: Ensuring the reliability and validity of the questionnaire items.

2.     Descriptive Statistics: Summarizing demographic and marketing mix characteristics of the sample.

3.     Logistic Regression Analysis: Testing the significance of independent variables on purchasing decisions and identifying key predictors.

 


 

Results and Discussion

Data and Data Processing

In this study, the data used is data obtained from the results of filling out questionnaires through google form by residents of Makassar City who like to move in Coffee Shop. Based on the results of the questionnaire that has been distributed, a total of 184 respondents were obtained. As for all the results of the entire questionnaire in the form of questionnaire content can be seen through the attachment.

Respondent Demographic Data

The following is an attachment of data in the form of a pie chart from the results of a questionnaire via google form and obtained from processing demographic data of Makassar City residents who like to move in Coffee Shops as follows.

Figure 2. Pie Chart Age

Source: Researcher Processing Results

Based on Figure 2, 3% of respondents who filled out the questionnaire were aged 13-17 years with a total of 5 people. Then 39% aged 18-24 years with a total of 72 people, 24% aged 25-34% with a total of 45 people, 30% aged 35-49 with a total of 55 people, and 4% aged 50+ with a total of 7 people.

Figure 3. Pie Chart of Gender

Source: Researcher Processing Results

Based on Figure 3, it is known that the majority of respondents filled out a questionnaire of 58% male with a total of 107 people. While the remaining 42% were women with a total of 77 people.

Figure 4. Pie Chart of Monthly Consumption

Source: Researcher Processing Results

Based on Figure 4, the majority of respondents with consumption in a month of> Rp1,000,000 with a percentage of 38% with a total of 70 people. Then proceed with consumption in a month of Rp.500,000 - Rp.1,000,000 with a percentage of 38% having a total of 67 people and consumption in a month of <Rp.500,000 with a percentage of 26% with a total of 47 people.

Data Tabulation

The results of the questionnaire data from each respondent were collected into one and then converted from google sheets to microsoft excel. Then the overall data in the form of indicators of each variable are separated respectively for calculation. The next step is to add up the indicators for each variable and check again. After completion, the data is transferred into the analysis tool, namely SPSS and data tabulation can be seen in the attachment.

Validity Test

The validity test in this study used the SPSS statistical program. The data results are declared valid if the significance value is <0.01 or r-count (Pearson Correlation)> r-table, and vice versa the data results are declared invalid if the significance value is> 0.01 or r-count (Pearson Correlation) < r-table. To find the r table, the formula is used, namely.

𝑑𝑓 = 𝑛 - 2

𝑑𝑓 = 184 - 2

𝑑𝑓 = 182

Then for the r-table value can be seen using the r table, then for the significance level used at 1% (0.01) and 2 directions so that the results obtained that the r-table is 0.190. The validity test results are as follows.

Table 1. Validity Test Results X1

X1.1

X1.2

X1.3

total_X1

X1.1

Pearson Correlation

1

-0,016

0,061

.742**

Sig. (2-tailed)

0,826

0,409

0,000

N

184

184

184

184

X1.2

Pearson Correlation

-0,016

1

-0,033

.331**

Sig. (2-tailed)

0,826

0,654

0,000

N

184

184

184

184

X1.3

Pearson Correlation

0,061

-0,033

1

.609**

Sig. (2-tailed)

0,409

0,654

0,000

N

184

184

184

184

total_X1

Pearson Correlation

.742**

.331**

.609**

1

Sig. (2-tailed)

0,000

0,000

0,000

N

184

184

184

184

Source: SPSS Data Processing Results

Based on table 1 on the validity test results for variable X1 on the 3 demographic indicators, the significance value is obtained <0.01 (alpha) and the Pearson Correlation value> 0.190 (r-table), it can be concluded that the X1 data is valid.

Table 2. X2 Validity Test Results

X2.1

X2.2

X2.3

X2.4

X2.5

X2.6

X2.7

X2.8

total_X2

X2.1

Pearson Correlation

1

.579**

.287**

.285**

0.039

.475**

.394**

.375**

.647**

Sig. (2-tailed)

0.000

0.000

0.000

0.596

0.000

0.000

0.000

0.000

N

184

184

184

184

184

184

184

184

184

X2.2

Pearson Correlation

.579**

1

.328**

.278**

0.055

.415**

.488**

.444**

.700**

Sig. (2-tailed)

0.000

0.000

0.000

0.462

0.000

0.000

0.000

0.000

N

184

184

184

184

184

184

184

184

184

X2.3

Pearson Correlation

.287**

.328**

1

.392**

-0.007

.212**

.315**

.259**

.567**

Sig. (2-tailed)

0.000

0.000

0.000

0.925

0.004

0.000

0.000

0.000

N

184

184

184

184

184

184

184

184

184

X2.4

Pearson Correlation

.285**

.278**

.392**

1

.288**

.208**

.241**

.227**

.597**

Sig. (2-tailed)

0.000

0.000

0.000

0.000

0.005

0.001

0.002

0.000

N

184

184

184

184

184

184

184

184

184

X2.5

Pearson Correlation

0.039

0.055

-0.007

.288**

1

0.054

0.126

.273**

.412**

Sig. (2-tailed)

0.596

0.462

0.925

0.000

0.466

0.088

0.000

0.000

N

184

184

184

184

184

184

184

184

184

X2.6

Pearson Correlation

.475**

.415**

.212**

.208**

0.054

1

.427**

.459**

.612**

Sig. (2-tailed)

0.000

0.000

0.004

0.005

0.466

0.000

0.000

0.000

N

184

184

184

184

184

184

184

184

184

X2.7

Pearson Correlation

.394**

.488**

.315**

.241**

0.126

.427**

1

.525**

.710**

Sig. (2-tailed)

0.000

0.000

0.000

0.001

0.088

0.000

0.000

0.000

N

184

184

184

184

184

184

184

184

184

X2.8

Pearson Correlation

.375**

.444**

.259**

.227**

.273**

.459**

.525**

1

.728**

Sig. (2-tailed)

0.000

0.000

0.000

0.002

0.000

0.000

0.000

0.000

N

184

184

184

184

184

184

184

184

184

total_X2

Pearson Correlation

.647**

.700**

.567**

.597**

.412**

.612**

.710**

.728**

1

Sig. (2-tailed)

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

N

184

184

184

184

184

184

184

184

184

Source: SPSS Data Processing Results

Based on table 2 on the validity test results for variable X2 on the 8 indicators Marketing Mix , it is known that the significance value is <0.01 (alpha) and the Pearson Correlation value is> 0.190 (r-table), thus proving the X2 data is valid.

Reliability Test

The data results in this study are said to be reliable if the Cronbach's Alpha value> 0.60, on the other hand, if the Cronbach's Alpha value <0.60, it is declared unreliable. The reliability test results are as follows.

Table 3. Reliability Test Results

Cronbach's Alpha

N of Items

0,681

12

Source: SPSS Data Processing Results

Based on table 3, the results of the overall reliability test on variable X1 (demographics) with 3 indicators, variable X2 (Marketing Mix) with 8 indicators, and variable Y (purchasing decisions) with 1 indicator so that a total of 12 indicators, it can be seen that the Cronbach's Alpha value is 0.681> 0.60 so it is stated that the data is reliable.

Multicollinearity Test

   In this test, if the Tolerance Value> 0.1 and the VIF value < 10 then there is no multicollinearity. Meanwhile, if the opposite is the Tolerance Value <0.1 and the VIF value> 10 then multicollinearity occurs. The multicollinearity test results are as follows.

Table 4. Multicollinearity Test Results

Model

Unstandardized Coefficients

Standardized Coefficients

t

Sig.

Collinearity Statistics

B

Std. Error

Beta

Tolerance

VIF

1

(Constant)

1.543

0.229

6.742

0.000

X1

-0.134

0.023

-0.399

-5.831

0.000

0.991

1.009

X2

-0.006

0.012

-0.031

-0.452

0.652

0.991

1.009

Source: SPSS Data Processing Results

Based on table 4, the Tolerance Value owned by X1 (demographics) and X2 (Marketing Mix)> 0.1 and for the VIF value of the three variables is also < 10. So from the results received it can be concluded that the data does not occur multicollinearity.

Hosmer-Lemeshow Test

This test is one of the goodness-of-fit tests used to assess the fit of the logistic regression model to the data. This test compares the observed results with the results predicted by the model for various risk groups. The model is considered to have a good fit if the significance value of the Hosmer-Lemeshow test is greater than 0.05.


 

Table 5. Hosmer-Lemeshow Test Results

Step

Chi-square

df

Sig.

1

3,937

8

0,863

Source: SPSS Data Processing Results

Based on table 5, the results show a significance value of 0.863> 0.05. So it can be concluded that there is no significant difference between the observed and predicted variables, so the model is considered fit or fits the data.

Research Hypothesis Testing

For hypothesis testing, we will use the Wald test and the Likehood Ratio test. There are several hypotheses used in this study, namely.

H1: Demographics affect purchasing decisions.

H2: Marketing Mix affects purchasing decisions.

In the wald test, to see the effect on each variable X on variable Y through a significance value <0.05, which means that the variable has a partial effect. Vice versa, if the significance value> 0.05 then the variable has no partial effect. The Wald test results are as follows.

Table 6. Wald Test Results

B

S.E.

Wald

df

Sig.

age

-0,816

0,205

15,911

1

0,000

Gender.

1,555

0,418

13,840

1

0,000

consumption

-0,546

0,244

5,014

1

0,025

product

-0,054

0,308

0,031

1

0,861

price

-0,334

0,220

2,309

1

0,129

place

-0,052

0,269

0,037

1

0,847

promotion

0,080

0,225

0,126

1

0,723

Constant

5,427

1,441

14,189

1

0,000

Source: SPSS Data Processing Results

Based on table 6, several results are obtained with the hypothesis under study as follows.

a.     Hypothesis Testing on X1 (H1)

Age, gender, and consumption in a month have a significance value below 0.05 (<0.05) so this proves that H1 is accepted, meaning that X1 has an effect on Y.

b.     Hypothesis Testing on X2 (H2)

Product, price, place & promotion has a significance value above 0.05 (>0.05) so this proves that H2 is rejected, meaning that X2 has no effect on Y.

Then the Likehood Ratio Test, used to test the significance of the model as a whole (simultaneously) or to compare two nested models. This test compares the full model (which involves independent variables) with the null model (only constants). If the significance value is <0.05, then the full model is considered better than the null model, and the independent variables together have a significant effect on purchasing decisions. The results of the Likehood Ratio test are as follows.

 

Table 7. Likehood Ratio Test Results

 

Chi-square

df

Sig.

Step

40,034

7

0,000

Block

40,034

7

0,000

Model

40,034

7

0,000

Source: SPSS Data Processing Results

Based on table 7, we can see the significance results of the entire model which is worth <0.05, which means that the independent variables together have a significant effect on purchasing decisions (simultaneously).

After looking at the two test results, we then interpret the results of the logistic regression. These results are usually reported in the form of odds ratio (Exp(B)) where:

a.      Exp(B) > 1: The independent variable increases the probability of a purchase decision at a modern coffeeshop.

b.      Exp(B) < 1: The independent variable decreases the probability of a purchase decision at a modern coffeeshop.

Table 8 Logistic Regression Results

B

S.E.

Wald

df

Sig.

Exp(B)

age

-0,816

0,205

15,911

1

0,000

0,442

Gender.

1,555

0,418

13,840

1

0,000

4,735

consumption

-0,546

0,244

5,014

1

0,025

0,579

product

-0,054

0,308

0,031

1

0,861

0,948

price

-0,334

0,220

2,309

1

0,129

0,716

place

-0,052

0,269

0,037

1

0,847

0,950

promotion

0,080

0,225

0,126

1

0,723

1,083

Constant

5,427

1,441

14,189

1

0,000

227,381

Source: SPSS Data Processing Results

Based on table 8, the interpretation of the logistic regression model built is as follows;

1.     Age (Exp(B) = 0.442)

For every 1 unit increase (e.g. years) in age, the probability of purchasing at a modern coffeeshop decreases by 55.8%.

2.     Gender (Exp(B) = 4.735)

Men have a 4.735 times greater probability of choosing a modern coffeeshop than women.

3.       Consumption (Exp(B) = 0.579, p)

Every 1 unit increase in the consumption variable decreases the probability of purchasing at a modern coffeeshop by 42.1%.

4.     Product (Exp(B) = 0.948)

Every 1 unit increase in the product variable only reduces the probability of purchasing at a modern coffeeshop by 5.2%, but this relationship is not significant (p> 0.05).

5.     Price (Exp(B) = 0.716)

Every 1 unit increase in the price variable decreases the probability of purchasing at a modern coffeeshop by 28.4%, but this relationship is not significant (p> 0.05).

6.     Place (Exp(B) = 0.950)

Every 1 unit increase in the place variable only decreases the probability of purchasing at a modern coffeeshop by 5%, and this relationship is not significant (p> 0.05).

7.     Promotion (Exp(B) = 1.083)

Every 1 unit increase in the promotion variable increases the probability of purchasing at a modern coffeeshop by 8.3%, but this relationship is not significant (p> 0.05).

 

Discussion

H1: Demographics affect purchasing decisions

The results showed that demographics have a significant influence on purchasing decisions at coffeeshops. This is evidenced by the significance value for the variables of age, gender, and monthly consumption which are below 0.05. This finding supports the first hypothesis (H1), which states that consumer demographic factors influence purchasing decisions. In the age indicator, the Exp(B) value of 0.442 indicates that each increase of one unit (year) in age decreases the chance of purchasing at a modern coffeeshop by 55.8%. In the gender indicator, the Exp(B) value is 4.735, this result indicates that men have a 4.735 times greater chance of choosing a modern coffeeshop than women. And in the monthly consumption indicator, the Exp(B) value is 0.579, which shows a decrease in the chance of purchasing a modern coffeeshop by 42.1%.

Research from Rahayu et al. (2020) supports this finding, where age and income factors influence consumer preferences in choosing products or services. In the context of coffeeshops, younger age groups (18-24 years old) are more likely to look for places with a modern atmosphere and additional facilities, such as Wi-Fi and attractive interior design, than older age groups. In addition, Wicaksono and Hermawan's (2021)research shows that gender also plays a role, where men more often choose coffeeshops as a place to socialize than women.

High-spending consumers tend to prefer traditional coffeeshops because they offer a more authentic and culturally valuable experience (Fitriani et al., 2021). This is also reinforced by Hidayat and Santoso (2022), who found that consumers with high purchasing power often seek emotionally relevant experiences rather than just modern facilities. Consumers who have high consumption habits are more selective in choosing a place that suits their economic value and product quality. In this context, traditional coffeeshops are often perceived to be more economical and offer authentic flavors, thus appealing to high consumption consumers.

H2: Marketing Mix affects purchasing decisions

The results of the analysis show that the marketing mix does not have a significant influence on purchasing decisions at coffeeshops, with a significance value greater than 0.05. This finding rejects the second hypothesis (H2) and indicates that elements such as price, product, location, and promotion are not the main considerations for consumers in determining the choice of coffeeshop.

Research conducted by Setyawan and Lestari (2019) supports these findings, where modern coffeeshop customers tend to focus more on the overall experience rather than specific factors such as price or promotion. They tend to choose places that offer a unique atmosphere or a community that supports their social activities. In addition, a study by Pratama and Nugroho (2020) showed that customer loyalty is more influenced by emotional aspects, such as previous positive experiences, than marketing mix elements.

Although the marketing mix does not significantly influence purchasing decisions, these elements are still important for creating initial attraction for new consumers. This is relevant to research by Yulianti and Kartika (2022) who found that although customer loyalty is influenced by emotional experiences, a good marketing strategy still serves to attract the attention of first-time consumers.

Purchasing decisions are influenced more by emotional factors, social status and overall experience than just product quality and price considerations. However, it is important to note that product attributes can become more relevant in the context of intense competition, especially when consumers compare between the quality of modern and traditional products.

Similarly, price is important for coffeeshop owners to maintain a balance of price and value offered to attract a wider market segment. In terms of promotion, the effectiveness of promotions is often influenced by the market context and the suitability of the strategy to the target audience (demographics). In these cases, poorly targeted or non-unique promotions may not have a significant impact on consumers.

 

Conclusion

Based on research on the influence of demographics and marketing mix on purchasing decisions at modern and traditional coffee shops in Makassar, it can be concluded that demographics have a significant influence on purchasing decisions, while marketing mix does not have a significant effect. This study produces several suggestions, especially for entrepreneurs and prospective coffee shop entrepreneurs. Entrepreneurs are advised to pay attention to demographic factors, such as age, gender, and monthly consumption level of consumers. Young consumers tend to prefer modern coffee shops, while consumers with high purchasing power prefer authentic traditional coffee shops. Entrepreneurs also need to create an all-round experience through a cozy atmosphere, friendly service, and additional facilities. In addition, strategies based on local cultural values can strengthen the attractiveness of the business. For future research, it is recommended to examine other factors such as consumer behavior, the influence of social media, lifestyle trends, and psychographic aspects that influence purchasing decisions. Further research can also compare consumer preferences for modern and traditional coffee shops and explore the role of digitalization, such as online ordering applications and digital payment systems, which are increasingly relevant in the digital era.

 

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