Decoding Gen Z loyalty in the photo booth industry: The interplay of price, digital marketing, and satisfaction

Abstract

Purpose: This study aims to investigate the determinants of customer loyalty within this context, specifically examining the influence of price and digital marketing, with customer satisfaction serving as a mediating variable.

Design/methodology/approach: This quantitative study used purposive sampling to select respondents. A correlational research strategy was employed, and hypotheses were tested using path analysis in Jamovi 2.6.19.

Findings: The results reveal that both price and customer satisfaction have a significant positive direct effect on customer loyalty. However, digital marketing does not exhibit a significant direct influence on loyalty. Furthermore, price and digital marketing are found to have a significant effect on customer satisfaction. Critically, the findings confirm that customer satisfaction serves as a significant mediator in the relationship between (a) price and customer loyalty, and (b) digital marketing and customer loyalty.

Originality/value: This research provides novel insights into the drivers of loyalty within the niche but rapidly growing photo booth service industry. It underscores the pivotal mediating role of customer satisfaction, offering valuable implications for marketers and business owners targeting Gen Z consumers in experiential service sectors.