Related Literature

This review explores the existing literature on café, digitalization, and marketing

strategies to provide a comprehensive understanding of the factors influencing customer

behavior and business success in the modern café industry.

Coffee Shops.

Coffee shops have grown into major social gathering place that serve an array of

customer preferences and reflect a larger changes in culture and lifestyle adjustments. Cafes are

growing rapidly because of the rise of specialty coffee and the growing need for one-of-a-kind

experiences, mostly in cities where people place a high value on social interaction (Pandiangan

et al., 2023). Coffee shops now need to use digital marketing tactics, particularly on social media

platforms, to increase brand awareness, interact with consumers more successfully, increase

sales, and build customer loyalty (Tambunan et al., 2024). Studies show that a strong online

presence can have a big impact on consumer behavior since people are attract to interactive

marketing and visually appealing material (Sihombing et al., 2024). Moreover, the increased

well-being and environmental awareness of customers creates an opportunity for cafes that focus

on a sustainable sourcing and offer quality, ethically produced beverages (Yoppy et al., 2023).

Overall, the study highlights how important it is to leverage modern technologies and adapt to

shifting consumer trends in order to be successful in the ever-changing coffee shop business.

The study on coffee shops shows their important role in culinary entrepreneurship, in

particular in Indonesia, where growth in this industry has been driven by government backing

through initiatives like the MSMEs Empowerment Program (Nugroho, 2019). Study indicates

that a well-crafted promotional strategy may improve customer relationships and drive business
success that is why cafes need to apply successful marketing communication strategies, mostly

through social media platforms like Instagram, to establish a distinctive brand identity and

engage with consumers (Hidayat & Alifah, 2022). In addition, according to demographic trends,

younger customers—especially those between the ages of 18 and 34—are becoming more and

more attract to coffee shops and their social media presence. As a result, customized marketing

methods are needed to attract and keep this customer (Harmayani et al., 2019).

References:

Achmad, G. N., Elizabeth, E., Ridwan, M., Noorfitri, K. C. P., & Sofiansyah, A. (2024b).

Analysis of Coffee Shop Digital Marketing Strategy through Social Media to Increase Product

Sales. International Journal of Education Social Studies and Management (IJESSM), 4(2), 805–

811. https://doi.org/10.52121/ijessm.v4i2.377

Hidayat, A. R., Institute for Islamic Religion, Bunga Bangsa Cirebon, Alifah, N., &

Institute for Language Education in Cirebon. (2022). Marketing Communication Strategy for

Coffee Through Digital Marketing. In Return: Study of Management, Economic and Business

(Vol. 1, Issue No 04, p. 140) [Journal-article]. https://jurnalreturn.staiku.ac.id

Digitalization

Social media was started out to be a platform for social networking, but in recent years, it

has turned into a device for digital marketing. In fact, it has changed into a form that allows

business to interact with their customers nearly straight away and participate directly in the

creation of marketing plans (Cham et al. 2021; Iankova et al. 2019). Customers can work with

businesses as co-creators in nearly every part of the company process, including value creation,

product/service development, and marketing strategy development, particularly in digital

marketing (Li et al. 2021; Olson et al. 2021). Customers can take on the role of "broadcasters"

and stop listening to advertisers by bringing user-generated content into digital marketing, in

contrast to in the past (Cham et al. 2022; Cheung et al. 2021). Digital marketing is definitely one

of the most favored platforms for advertisers because to its advantages and strong return on

investment (digitalthirdcoast.com 2022).

References:

Cham, T., Cheah, J., Memon, M. A., Fam, K., & László, J. (2022). Digitalization and its impact

on contemporary marketing strategies and practices. Journal of Marketing Analytics, 10(2), 103–

105. https://doi.org/10.1057/s41270-022-00167-6

Marketing Strategy

A important factors for companies looking to improve the sales and develop their market

presence is their marketing strategy. It involves a detailed plan that combines several marketing

initiatives to accomplish particular goals, such boosting sales and gaining market share (Mariani

et al., 2023; Pandiangan, 2024). The rise of digital marketing and social media has changed the

traditional marketing strategies, allowing business to develop their customer base and improve

customer engagement (Tambunan et al., 2024).

A business's marketing strategy is matter if it wants to gain a competitive edge and keep

the customers. Digital marketing frameworks, according to Kannan and Li (2017), have

developed to include a range of online platforms that enable direct customer connection,

improving brand visibility and engagement. Based on Setiaboedi et al. (2018), small businesses

should concentrate on personalized internet marketing methods, in particular in hard times like
the COVID-19 epidemic when creative ways to contact customer who are unable to visit

physical establishments are required. SMEs have to implement these strategies in order to

survive in an increasingly digital setting, since studies highlights that the use of digital marketing

tools can have a major influence on sales and lower marketing expenses.

References:

Achmad, G. N., Elizabeth, E., Ridwan, M., Noorfitri, K. C. P., & Sofiansyah, A. (2024b).

Analysis of Coffee Shop Digital Marketing Strategy through Social Media to Increase Product

Sales. International Journal of Education Social Studies and Management (IJESSM), 4(2), 805–

811. https://doi.org/10.52121/ijessm.v4i2.377

Bermeo-Giraldo, M. C., Valencia-Arias, A., De Rosas, J. D. R., Benjumea-Arias, M., &

Calderón, J. a. V. (2022). Factors Influencing the Use of Digital Marketing by Small and

Medium-Sized Enterprises during COVID-19. Informatics, 9(4), 86.

https://doi.org/10.3390/informatics9040086

Decision making

Several psychological and social factors influence customer behavior decision-making,

especially when it comes to marketing methods. Studies reveal that customers go through several

phases in their decision-making processes, such as identifying the problem, looking for

information, weighing their options, and evaluating their choices after making a purchase. With

the methodical approach the customers may make well-informed decisions that suit their needs

and preferences. According to a study on customer behavior, marketing efforts are important in

forming a customer' views, and emotional and cognitive factors have a big influence on buying

decisions (Nguyen, T. 2021).

 Customer decision-making are changing as a result of the digitalization of marketing

strategy, mostly when it comes to local cafes. The studies shows way customers' decision-

making processes have been improved by digital devices such as social networking sites, mobile

apps, and online reviews. Customers can read product reviews, compare prices, and obtain real-

time information through these online platforms, which shapes their preferences and purchasing

decisions. For example, a study by Bergman, J. (2022) shows the important the pricing methods

and digital marketing are in influencing customer choices in the hospitality sector.

Additionally, according to a study in Chopra, A. & GD Goenka world school. (2024),

personalized digital marketing greatly increase customer happiness and keeping when it comes to

digital engagement. Local cafés can gain a competitive edge in the market by implementing

these digital methods to better interact with tech-savvy customers.

References:

Nguyen, T. (2021). THE IMPACT OF SOCIAL MEDIA ON CONSUMER PURCHASING

DECISION PROCESS [Thesis]. https://www.theseus.fi/bitstream/handle/10024/508528/Thesis

%20-%20Thao%20Nguyen.pdf?sequence=2#:~:text=There%20is%20%20plenty%20of

%20%20research,media%20when%20%20deciding%20on%20%20purchasing.

Bergman, J. (2022). The impact of pricing strategies on consumer decision-making

[Bachelor’s Thesis]. In Aalto University School of Business & Department of Marketing, Aalto

University School of Business, Department of Marketing (p. 31).

https://aaltodoc.aalto.fi/server/api/core/bitstreams/33125fcd-3ec5-4e2a-a1d8-d654394a90b1/

content
 Chopra, A. & GD Goenka world school. (2024). The Effects of Digital Marketing on

Consumer Behavior. In IJNRD, International Journal of Novel Research and Development (Vol.

9, Issue 2, pp. b285–b287) [Journal-article]. https://www.ijnrd.org/papers/IJNRD2402138.pdf

The reviewed literature underscores the importance of integrating digitalization and

innovative marketing strategies in café operations. However, gaps remain in understanding the

long-term impact of these strategies on small-scale cafés, which this study aims to address.

Relevant Theories

AIDA Model Theory. The categories of AIDA model are Attention, Interest, Desire, and

Action. Montazeribarforoushi, S. et. al., (2017) recently conducted a research that the AIDA

model theory supports the customers in making the final purchase. They said that although the

model was developed a century ago, the basic principle of the model is still relevant wherein the

cognitive level in which the customers’ attention can be drawn, the effective level that refers to a

stage in which the customer have an interest in the product offered that leads to the desire to

purchase the product, and the behavior level in which the action takes place. This theory is used

in this study to understand how the marketing strategy of the business affect the customers’

decision making.

Marketing Mix Theory. This theory emphasizes the dynamic and complexity of marketing,

obligating a business to do an in-depth market study in order to meet the customer’s expectations
and requests (Cao, Y. 2024). The 4Ps in Marketing Mix Theory are the Product, Price, Place,

And Promotion. Sabri, N. et. al., (2020) recently conducted a research that marketing is the

process of planning and executing the concept of 4Ps to create something that will satisfy the

needs of the customers. Their research said that marketing mix framework as the marketing

management is dominant as it can identify the trends, changes in environment, and market

development. The marketing mix theory is used in this study to understand how it helps the

business owners to make a strategic decision on how to market and manage their products.

Hierarchy of Effects Model Theory. This theory

Chakravarty, R. and Sarma, N.N. (2022)

References

Cao, Y. (2024). Analysis of Li Auto’s Marketing Strategy Based on Marketing Mix Theory.

https://www.researchgate.net/publication/380849907_Analysis_of_Li_Auto's_Marketing_Strate

gy_Based_on_Marketing_Mix_Theory

Chakravarty, R. and Sarma, N.N. (2022), "Evolutionary framework of hierarchy of effects

models: exploring relevance in the shifting of customer path", Vilakshan - XIMB Journal of

Management, Vol. 19 No. 1, pp. 59-68. https://doi.org/10.1108/XJM-09-2020-0151

Montazeribarforoushi, S., Keshavarzsaleh, A., Ramsøy, T. Z., & Briesemeister, B. (2017). On

the hierarchy of choice: An applied neuroscience perspective on the AIDA model. Cogent

Psychology, 4(1). https://doi.org/10.1080/23311908.2017.1363343

Sabri, N., Wahyudiyono, J., Nugroho, H., Hartanti, R. (2020). Four P Marketing Mix to Increase

Understanding Marketing For Business Students. Journal of Critical Reviews ISSN-2394-5125

Vol 7, Issue 12, 2020.

https://www.researchgate.net/publication/382147619_FOUR_P_MARKETING_MIX_TO_INC

REASE_UNDERSTANDING_MARKETING_FOR_BUSINESS_STUDENTS