This study aims to analyze the impact of product differentiation and physical evidence on customer satisfaction at Bean Spot, a coffee shop located in Palembang City. Product differentiation includes innovation in coffee flavor variations, while physical evidence encompasses elements that shape the ambiance and comfort at the venue, such as layout design, facilities, and cleanliness. This research employs a quantitative approach, with primary data gathered from 107 respondents who have consumed Bean Spot products at least twice. Data analysis was performed using SPSS version 25. The findings indicate that both product differentiation and physical evidence have a positive and significant impact on customer satisfaction. These results emphasize that product innovation and a comfortable physical environment play essential roles in enhancing customer satisfaction and loyalty. This study is beneficial for Bean Spot’s management in developing more effective marketing strategies and can serve as a reference for other coffee shops aiming to strengthen competitiveness through innovation and improved customer experience.
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