Understanding the digital customer journey of Indonesian full service restaurants in sourcing food suppliers

This study aims to provide a comprehensive understanding of the needs, preferences, and behaviors of its target market in the Indonesian full-service restaurant (FSR) sector. Firstly, it seeks to map the customer journey of FSRs in the food supplies purchasing process, identifying key touchpoints, brand awareness levels, information sources, and factors influencing brand choice. Secondly, it evaluates the effectiveness of various digital marketing channels, such as social media advertising, search engine marketing, and email marketing, by analyzing cost-per-lead and conversion rates to identify the most efficient channels for acquiring new FSR customers for PT MBI. Finally, the research intends to develop a data-driven digital marketing strategy that optimizes customer interactions, enhance brand visibility, and improve lead generation at each decision-making stage to drive sales conversions and increase customer lifetime value. The results of this study show that the current focus of PTXYZin the FSR segment lies between two segments: Relationship-Driven Traditionalists and Hybrid Decision-Makers. This is an open access article under the CC BY-SA license.


INTRODUCTION
Indonesian food service market is mainly composed of independent businesses, which has majority amount over street vendors and small-scale restaurants.According to statistics in 2023 from Mordor Intelligence independent outlets take 62.94 % of market share.This varied and scattered array offers a big potential market for flavoring producers, meaning there is ever-burgeoning ways to expand one's business.
While well-recognized international chains with a formidable presence, including McDonald's and KFC, operate on the local fast food market, the Independent restaurants sub-segment, such as Wiro Sableng in Jakarta, are the backbone of the Indonesian food service industry.Therefore, in view of the above, as part of the acquisition and retention strategies, consumer goods companies will customize products and its offer to the specific requirements of the core player in the Indonesian foodservice industry.Such establishments prioritize lower cost, higher product quality and continuous supply.As such, condiments suppliers will offer competitive price points and costs per cubic centimeters or weight, bulk procurement options, and established delivery infrastructure.
The food service market is an excellent opportunity for consumer goods companies specializing in condiments and sauces (Badriyah et al., 2023;Dini & Laneri, 2021;Diva et al., 2023;Gričar & Šugar, 2021;Moon & Park, 2021).Since restaurants and other food vendors purchase larger quantities of the product than individual consumers, the sales volume potential is significantly larger.Food service businesses are also more susceptible to marketing strategies which creates opportunities for high rates of return on marketing investments (Aaker & Moorman, 2023;Han et al., 2023;Hecht et al., 2020;Wood et al., 2021;Yost et al., 2021).By partnering with a diverse range of food service organizations, a business can increase brand awareness and preference for their products in the retail market (Cho et al., 2021;Ghantous & Christodoulides, 2020;Jeon & Yoo, 2021;Lang et al., 2022;Roy & Ballantine, 2020).
Indonesia is home to a dynamic culinary landscape which encourages product innovation and development and helps businesses meet diverse consumer tastes and equally diverse special needs of food service professionals.Establishing good business relationships with food service organizations can also lead to long term supply contracts (Faruquee et al., 2021;Hobbs, 2020;Lees et al., 2020;Manning, 2020;Thomé et al., 2021).Business owners are always looking to build long term relationships with suppliers in order to streamline their supply chain (Blanchard, 2021;De Vass et al., 2021;Hugos, 2024;Manfredi & Capik, 2022;Pérez-Mesa et al., 2021).Bookings can be scheduled in advance and minimum orders can be placed depending on the business strength.
Selling products to reputable and renowned food businesses also acts as a big name promotion which keeps attracting more clients to the product (Aqila et al., 2022;Hanaysha, 2021;Kraus et al., 2022;Melovic et al., 2020;Milanesi et al., 2020).Business also needs to establish good business relationships with wholesalers, and distributors dealing with the food service industry in order to access a larger market and to maintain a good supply chain (Paciarotti & Torregiani, 2021;Pérez-Mesa et al., 2021;Reklitis et al., 2021).Wholesalers and distributors have access to a wide variety of customers and can easily streamline supply channels easily (Ailawadi & Farris, 2020;Czinkota et al., 2021).Helping businesses understand consumer needs and preferences thus condiment supplying companies can develop the appropriate brand message targeting food services.Business owners can then use those channels to increase sales directly to consumers or through the food service organization channel.
PT.cXYZ is a leading supplier of groceries with a long-established track record.A subsidiary of the reputable global company Blue Red International, it has over 20 brands that produce and supply groceries such as sauces and condiments, drinks, and canned items.The main office is located in DKI Jakarta; however, the production and distribution facilities are located in a strategic position in Jakarta, Karawang, and Surabaya.
PT. XYZ not only strives to produce only top-quality goods but is also committed to ensuring its practices positively impact the communities.All elements of the business and all interactions with the custumers, partners, suppliers, stakeholders, and local communities are impacted by it.
PT. XYZ has an extensive product portfolio that includes the following key categories: Whose leading product is soy sauce which gave big influence on total sales.In the chili sauce category, the company is also a leader where it has more than 50% of market share directly under its command.Other notable categories would be tomato sauce, condiment sauces (sesame oil, Worchester sauce, Oyster Sauce), and canned fish & syrup.It is worth to remember that canned fish and syrup also has its own seasonal sales peak during the biggest festivity of Indonesian customers, Ramadan and Eid al-Fitr period.
PT. XYZ's products have been part of Indonesian family tradition as a market leader in condiments and sauces.Apart from being a staple in many households, the company's products are common ingredients on menus across Indonesia's restaurants and food service businessesranging from street vendors to catering services, all the way up to five star hotels.Not surprisingly, the ubiquity of this brand has endeared it to many Indonesian families.
The research aims to achieve three main objectives.Firstly, it seeks to map the customer journey of fullservice restaurants (FSRs) in the food supplies purchasing process, identifying key touchpoints, brand awareness, information sources, and factors influencing brand choice.Secondly, it evaluates the effectiveness of various digital marketing channels, such as social media advertising, search engine marketing, and email marketing, by analyzing cost-per-lead and conversion rates to identify the most efficient channels for acquiring new FSR customers for PT.XYZ's.Lastly, the research intends to develop a data-driven digital marketing strategy that optimizes touchpoints throughout the FSR customer journey, enhancing brand visibility, customer education, and lead generation at each decision-making stage to drive sales conversions and increase customer lifetime value.
The research contributes by providing a comprehensive understanding of the full-service restaurant (FSR) customer journey in the food supplies purchasing process, identifying critical touchpoints, brand awareness levels, information sources, and decision-making factors.It also evaluates the effectiveness of various digital marketing channels, offering insights into cost efficiency and conversion rates, which can guide marketing investments.Furthermore, the research delivers a data-driven digital marketing strategy tailored to optimize customer interactions, enhance brand visibility, and improve lead generation throughout the customer journey, ultimately aiming to increase sales conversions and customer lifetime value for PT.XYZ's.

METHOD
This study is carried out using qualitative methodology.Primary data will be collected through interviews with selected customers who classify as Full Service Restaurants -Independent (FSR with one or two locations) and Full Service Restaurants -Chain (FSR with more than two locations).The secondary data will collect from the market and industry report.
Primary data were collected using semi-structured interviews that strike a balance between focused investigation and following up new ideas.Twelve handpicked participants (6 per respective FSR Independent & Chain).This approach is targeted at individuals who are experts on the subject matter of research.To facilitate detailed analysis, interviews were transcribed verbatim (where permission has been granted by the participant) and audio-recorded.The researchers thematically treat the transcripts and highlight recurrent phrases, trends and themes that expose insights from the data.color assessment for coffee.He relies heavily on Google for supplier discovery and brand research, while YouTube and social media are used to follow trends and gather recommendations.The buying process starts with need recognition for new products or alternative suppliers, followed by extensive research using digital tools and sampling from potential suppliers.Challenges include incomplete online information and skepticism towards product demos on company websites.Fadel expects responsive customer service, accurate online information, transparent communication about availability and pricing, and values the convenience of physical stores for urgent purchases.
F (initial), the barista at XYZ Coffee in Bali, operates under Petra's primary decision-making authority with influence from experienced baristas like Dede.Quality is the top priority for decision-makers, followed by price, while proactive service and trust are crucial, fostered through personal interactions and community engagement.Digital engagement includes WhatsApp and Facebook groups for community connections, Instagram and TikTok for trend research and supplier discovery, and Tokopedia for purchasing and price comparisons.The buying process begins with identifying needs for menu development or ingredient replacement, followed by gathering information from community networks, social media, and online marketplaces.Challenges include balancing quality with price and concerns about data privacy.Expectations emphasize proactive marketing, relationship-building, consistent product quality, efficient delivery, and personalized service tailored to each cafe's needs and preferences.R (initial), owner of XYZ Burger in Bandung, acts as the primary decision-maker, prioritizing quality and taste over price considerations, with input from trusted employees and individuals for feedback on product quality.Consistency of supply and responsiveness from suppliers are also crucial.Digital engagement involves using Tokopedia and Shopee for brand discovery and price comparisons, while Instagram and TikTok inform trend research and supplier searches.Google is occasionally used for finding local distributors, but supplier websites are less preferred due to potential communication challenges.The buying process starts with identifying menu needs, followed by online research on e-commerce platforms and social media for brand selection.Rei prefers direct contact with local distributors for negotiation and relationship-building, prioritizing suppliers who offer quality, consistency, and responsive communication.Key challenges include difficulty finding accurate local distributor contact information online and preference for direct communication channels to ensure efficient interactions.Expectations focus on improved online presence for local distributors, proactive digital marketing strategies, and maintaining high standards of quality and consistency in product supply.
QR (initial), owner of XYZ Cafe in Jakarta, operates with the chef, who also serves as CEO, as the primary decision-maker, focusing on balancing taste and affordability in purchasing decisions.Influenced by all four co-founders, QR (initial) emphasizes efficiency and convenience in the buying process, seeking streamlined methods for sourcing and purchasing products.Digital engagement includes using marketplaces like Tokopedia for initial research and price comparisons, while Instagram, TikTok, and YouTube Shorts are utilized for discovering trends and new products.Supplier websites are consulted for contact details and product information, although they often lack sufficient detail.The buying process starts with identifying menu needs, followed by thorough online research and product sampling to ensure quality and suitability.Challenges include finding specific or rare products, incomplete online information from suppliers, and occasional unresponsiveness.Expectations include transparent and detailed product information on supplier websites, proactive communication, and convenient purchasing options either online or in physical stores.R (initial), the purchasing manager of XYZ Coffee in Bali, operates under the primary decision-making of the owner and is influenced by the chef in sourcing decisions.Emphasizing quality as a priority, with a focus on premium ingredients, Riska also considers price and taste crucial for final approval.Digital touch points include starting research with Google Search, using Instagram for supplier discovery through street advertisements, and occasionally referring to Facebook for past ads.Additionally, word-of-mouth recommendations from industry colleagues are valued.The buying process begins with identifying menu needs or replacing products, followed by extensive research and sampling from multiple suppliers to ensure quality, price, and product availability align.Challenges include balancing premium quality with affordable pricing, inconsistent product availability, and limited comprehensive online information about suppliers, especially local distributors.Expectations include transparent pricing and product details on supplier websites, responsive communication, consistent supply, and accessible information on local distributors to maintain smooth cafe operations.D (initial), the manager of XYZ Restaurant in Bali, operates under the primary decision-making of the owner, with influence from the head chef in purchasing decisions.Emphasizing quality as a top priority, Dian seeks premium ingredients at reasonable prices while prioritizing cost savings.Digital touch points include using Google Search as the main tool for supplier discovery, leveraging Instagram for visual cues from advertisements, occasionally referring to Facebook for past ads, and relying heavily on word-of-mouth recommendations within the hotel industry.The buying process starts with identifying menu needs or replacing products, followed by extensive research on Google and social media.Suppliers are contacted for price lists and samples, which are evaluated by Dian, the chef, and the owner.Challenges include balancing premium quality with cost, and difficulty in finding comprehensive online information about local suppliers.Expectations focus on transparent pricing, consistent product quality and availability, strong supplier relationships with open communication, and proactive outreach from suppliers with new products or promotions.
Though the original separation of FSR Independent and FSR Chain does provide a foundation for understanding restaurant size, it does not adequately elaborate or quantify the variety in how these subsegments each approach supplier sourcing and digital engagement.A more careful examination of the interviews shows that there is huge variance in the types of behaviors, preferences and decision-making processes within each of these categories.The digital reach of many independent restaurants in looking for info and engaging with suppliers online is strong-much stronger than chains, some of whom are stuck using traditional offline means.These variations must be acknowledged to design an effective digital marketing strategy.Consequently, a deeper segment targeting based on the recorded features, digital touchpoints, and customer journeys can allow PT XYZ advance to establish much more precise and apposite digital marketing strategies for each individual group: Segment 1: Relationship-Driven Traditionalists.This is where established relationships and word-ofmouth referrals are the primary focus for such FSRs.Without a one-stop shop like Amazon, they have built up decades-long relationships with suppliers who rely on personal connections to distribute products.They are not so skilled at digital and like the offline way.FSRs in this Segment: Bambang (Parit 9 Seafood), Tiwi (Sativa Restaurant), Dian (Selada Restaurant) Segment 2: Digitally Engaged Trend Seekers.These FSRs employ actively digital channels to investigate latest styles, find new goods and sourcing partners.The community who has grown up with digital touch and realizes the value from a responsive and convenience communication perspective.FSRs in this Segment: F (JK), F(TPC), R (EB), R (SC) Segment 3: Hybrid Decision-Makers.These FSRs utilize both online and offline channels for supplier sourcing.They value quality, price, and convenience.They rely on both personal connections and digital tools to make informed decisions.FSRs in this Segment: GP (PC), Y (MS), Y (BS), QR (LC), A (RHG).

Thematic Analysis
The interviews were qualitative in nature, hence thematic analysis emerged as the most appropriate method to explore the underlying structure, patterns and translations of lived experiences described by FSR representatives.Qualitative methods are much more about experiences and feelings, whereas quantitative methodologists hold to the discipline of number.Thematic analysis drills down into human experience and perception in a way almost impossible through numbers.These themes can provide an insight into factors influencing FSRs in their decisions, the digital touch-points they prefer and what are they expecting from a supplier like PT MBI.This is important to develop digital marketing campaigns that are tailored and more personable with regards to the relevant differentiator of each segment.

Active Online Research:
"Initially, we looked for the cheapest price in the market, but as we went along, we searched for distributors to see if there were other brands that were similar but also affordable."(Fadel) "Usually directly to Tokopedia.I search for barbecue sauce, and it shows all the brands.I look at the prices and choose one to try." (Rei) 1. Mixed Approach: "So, I usually handle the key products because I have to negotiate with the supplier."(Adit) "We definitely try to search on websites or their Instagram.We try to contact their contact person and ask for their price list if we want to collaborate."(Qolby)

Offline Preference:
"We always search for stores offline.We never search online."(Bambang)

Quality and Price:
"First, it's the price, then the quality, because it has to be fresh."(Bambang) "The difficult part is that the owner wants delicious, premium ingredients but at lower prices."(Dian)

Information-Seeking Behavior:
"The important thing is information, actually.If the information is fast and not delayed, it's good."(Riska)

Quality and Price Balance:
"The number one factor for me is quality.Second is price."(Yudha) "We prioritize effectiveness and efficiency.When it comes to effectiveness, we can't choose just one factor.Taste and price are both important."(Qolby) 4. Limited Digital Literacy: "I don't trust it...There are so many social media platforms now, so where do we search?"(Dian) "We don't really compare food products online.We mostly compare other products like cleaning supplies on marketplaces like Shopee and Tokopedia."(Tiwi)

Visual Appeal and Content:
"In terms of visuals, we definitely prioritize color.We have a reference brand, so we look at the color."(Fadel) "We search on YouTube or social media for brands that are closest to the good ones but with affordable prices."(Fadel)

Proactive Digital Exploration:
This segment actively utilizes various digital platforms (Google, social media, marketplaces) to research trends, compare products, and discover new suppliers.

Multi-Channel Approach:
This segment utilizes both online and offline channels for supplier sourcing and product research.They leverage personal connections as well as digital tools to gather information.Limited Digital Engagement: They have minimal interaction with digital channels for supplier discovery or product research.Their online activity is mostly reactive, responding to ads or searching for specific information when needed.

Trend-Driven Decision
Making: They are highly influenced by current trends and seek out unique or innovative products to differentiate their offerings.

Pragmatic Decision Making:
They consider a combination of factors, including product quality, price, supplier relationship, and convenience, in their decision-making process.

Value-Driven Decision Making:
While price is a consideration, they also prioritize quality and freshness.They are willing to pay more for products they trust and that meet their specific needs.

Information-Seeking
Behavior: They value clear, easily accessible information about products, prices, and suppliers.They are willing to engage with brands that provide educational content or demonstrate expertise.

Value for Convenience and
Information: They appreciate suppliers who offer both personalized service and easy access to information online.

Source: Compiled by Author
Analysis Result of Segment 1: Relationship-Driven Traditionalists.Relationship-Driven Traditionalists are loyal consumers who place high importance on loyalty, trust, personal relationships and quality goods.They are much less likely to have involved in an active search for new supplier via online platform and they

Interdisciplinary Social Studies
Understanding the digital customer journey of Indonesian full service restaurants in sourcing food suppliers 7 prefer to stick with the network that connects them and word of mouth.For this target group, PT XYZ should not only continue building strong relationships using personalized outreach, offline events, and excellent customer service.
Analysis Result of Segment 2: Digitally-Engaged Trend Seekers.This group of digitally engaged people is a bit different: They're very much about getting the latest thing; they view tech as fun; and they trust each other to inform them what's trending.They want transparent, convenient and interesting content.For the sake of attracting this segment, PT XYZwill need a strong online presence offering informative and visual appealing content with the help of social media marketing and influencer marketing.
Analysis Result of Segment 3: Hybrid Decision-Makers.Hybrid Decision-Makers are adaptable customers who use several channels and seek quality in balance with price and convenience.PT XYZmust take an omni-channel approach by providing personalized touch-points, while also building online market outreach to access this segment.Similarly, it is essential to ensure that prospects can easily and conveniently access the right information about what the company offers -both online and offline.

Customer Journey Mapping (Organization Buying Behavior Model)
In order to better inform and design digital marketing strategies that are tailored for the specifics of each segment, we will use a broad framework using the OBB (Organization Buying Behavior) model combined with the 5As customer journey model.The OBB model allows for a deeper dive into the FSR decision-making process, highlighting major players and their functions.In stark contrast, the 5As model (Aware, Appeal, Ask, Act, Advocate) breaks down each stage customers go through during their journey from initial awareness to post-purchase advocacy.With the above framework in place, what we then did is map the customer journey of every segment via digital touch-points so that PT XYZcan be present in those moment and truly address this need and convert it to higher conversion rate.To enhance the effect of PT XYZdigital marketing effort, it is essential for PT XYZto understand the different customer journey in each segment that will enable them to provide right message, through right channel with accurate timing.• Initiator: Owner/Chef (Identifies the need for a new product or service)

Segment 1: Relationship-Driven Traditionalists
• Users: Kitchen staff/Baristas (Will be using the products) • Influencers: Limited external influence; may consult trusted colleagues or friends in the industry.• Users: Kitchen staff/Baristas (Will be using the products) • Influencers: Food bloggers, influencers, online communities.
• Deciders: Owner (Heavily influenced by the opinions of users and influencers) • Buyers: Owner or designated staff member (Handles the actual purchasing process) • Gatekeepers: Less prominent, as information flows freely through digital channels.
• Deciders: Owner (Final decision, but heavily influenced by chef and purchasing staff) • Buyers: Purchasing staff (Handles negotiation and ordering) • Gatekeepers: Less defined, but owner may have final say on budget and suppliers choices.

CONCLUSION
The Indonesian food supply and restaurant (FSR) market is a dynamic market with a wide variety of products and services.PT XYZ has been working on the improvement of its segmentation, targeting, and positioning (STP) process.This study aims to provide a comprehensive understanding of the needs, preferences, and behaviors of its target market in the Indonesian FSR sector.Through in-depth interviews with twelve FSR owners and managers, this study identifies the organization buying process that differentiates two distinct customer segments: FSR Independent (single-location establishments) and FSR Chain (multi-located establishments).The OBB (Organization Buying Behavior) model combined with the 5As customer journey model is used to analyze the digital touch-point preferences of FSRs.The results of this study show that the current focus of PTXYZ in the FSR segment lies between two segments: Relationship-Driven Traditionalists and Hybrid Decision-Makers.Moreover, the wide range of one-to-one method and its customer focus in selection of suppliers, both from point of view for quality as well as convenience is extremely suitable with the existing capability and also go align with its potentiality to consistently can leverage digital marketing.Future research could explore emerging technologies like AI-driven customer service and personalized marketing, compare PT MBI's segmentation strategies with other leading companies, explore supplier relationship management, map the customer journey for FSR chains, analyze the "Hybrid Decision-Maker" segment, and track the evolution of digital marketing strategies in the FSR sector.

•
Deciders: Owner (Makes the final purchasing decision) • Buyers: Owner or designated staff member (Handles the actual purchasing process) • Gatekeepers: Owner or manager (Controls access to information and potential suppliers) Segment 2: Digitally-Engaged Trend Seekers

Table 1 .
Coding for Thematic Analysis of 3 Customer Segments

Table 2 .
Defining Theme in Thematic Analysis of 3 Customer Segments

Table 3 .
The Customer Journey Mapping of Segment 1 by Using OBB & 5As Framework

Table 4 .
The Customer Journey Mapping of Segment 2 by Using OBB & 5As Framework

Table 5 .
The Customer Journey Mapping of Segment 3 by Using OBB & 5As Framework