Nitami, Devi Andri
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The Influence of Product Quality and Service Speed on Purchasing Decisions for Coffee Carts on Gen Z in Medan City Siregar, Onan Marakali; Rossanty, Yossie; Yuliani, Dara; Sembiring, Natalin Pepayosa; Nitami, Devi Andri
JURNAL STUDI MANAJEMEN ORGANISASI Vol 22, No 2 (2025): 2025
Publisher : Faculty of Economics and Business | Universitas Diponegoro

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.14710/jsmo.v22i2.74865

Abstract

Coffee consumption trends among Generation Z have shown a significant increase, along with the proliferation of coffee cart businesses that offer practical products at affordable prices. However, amid increasingly fierce competition, business actors face challenges in maintaining the purchasing decisions of young consumers, especially among Gen Z. This study aims to analyze the effect of product quality and service speed on purchasing decisions for Gen Z consumers in Medan City. The approach used is quantitative with the Structural Equation Modeling-Partial Least Squares (SEM-PLS) method. Data were obtained from 100 respondents, namely Gen Z who live in Medan City, and were collected through questionnaires and analyzed using SmartPLS. The results of the outer model evaluation show that all variable indicators are valid and reliable. The inner model evaluation also shows an R² value of 0.446, which means that product quality and service speed simultaneously explain 44.6% of the variability in purchasing decisions. The relationship between the independent and dependent variables partially and simultaneously both have a significant effect. The Q² value of 0.231 also indicates that the model has sufficient predictive relevance. The findings suggest that coffee cart businesses need to prioritize improving product quality and service speed to drive purchasing decisions among Generation Z Medan City.