The Linked Factor of Customer Satisfaction and Loyalty in F&B Industry: A Study of Operational Performance Factor

Yen Er Cheng; Yun Yee Cheah; Dana Valentina Rojas Jimenez; Yuxin Chen; Yifei Chen

doi:10.32535/ijthap.v7i1.2167

The Linked Factor of Customer Satisfaction and Loyalty in F&B Industry: A Study of Operational Performance Factor

Yen Er Cheng, Yun Yee Cheah, Dana Valentina Rojas Jimenez, Yuxin Chen, Yifei Chen

Abstract

The focus of this research is to investigate how operational performance affects customer satisfaction and loyalty in the food and beverage industry. Starbucks has been selected as this research object. Conducting a survey and referring to other studies of journals and articles to support the assisting data are the research methods employed. According to the research results, 71 % of respondents are pleased with current Starbucks services and products. The studies also revealed that the majority of customers had heard of Starbucks on social media. The study’s findings reveal that operation success is significantly linked to customer satisfaction. Customer satisfaction has been described as a significant mediator between service quality and customer loyalty. Having a clear understanding of the hypothesized relationship in the study encourages Starbucks to figure out the best action to gain or increase customer loyalty by providing good service quality to build a loyal customer base and customer satisfaction.

Keywords

Customer Loyalty; Customer Satisfaction; Food and Beverage Industry; Operation Performance

Full Text:

PDF

References

Azim, M. D., Ahmed, H., & Khan, A. S. (2015). Operational performance and profitability: An empirical study on the Bangladeshi Ceramic companies. International Journal of Entrepreneurship and Development Studies, 3(1), 63-74.

Brunner, T. A., Stöcklin, M., & Opwis, K. (2008). Satisfaction, image and loyalty: New versus experienced customers. European Journal of Marketing, 42(9/10), 1095- 1105. https://doi.org/10.1108/03090560810891163

Carter, B. (2020, February 6). What is the definition of Customer Loyalty? https://blog.accessdevelopment.com/what-is-the-definition-of- customer-loyalty

Cook, T., & Blackiston, H. (2021, June 15). The Secrets of Starbucks’ Success at the Drive-Thru.QSR Magazine. https://www.qsrmagazine.com/operations/drive- thru/secrets-starbucks-success-drive-thru/#:~:text=Innovation%20is%20a%20key%20mantra,inch%20digital%20order%20confirmation%20screen.

Chodzaza, G. E., & Gombachika, H. S. (2013). Service quality, customer satisfaction and loyalty among industrial customers of a public electricity utility in Malawi. International Journal of Energy Sector Management, 7(2), 269-282. https://doi.org/10.1108/ijesm-02-2013-0003

Ellinger, A., Shin, H., Magnus Northington, W., Adams, F. G., Hofman, D., & O'Marah, K. (2012). The influence of supply chain management competency on customer satisfaction and shareholder value. Supply Chain Management: An International Journal, 17(3), 249-262.https://doi.org/10.1108/13598541211227090

Gelade, G. A., & Young, S. (2005). Test of a service profit chain model in the retail banking sector. Journal of Occupational and Organizational Psychology, 78(1), 1-22. https://doi.org/10.1348/096317904x22926

Goetsch, D. L., & Davis, S. (2020). Quality Management for Organizational Excellence: Introduction to Total Quality (9th ed.). Pearson Education.

Juliana, J., Beanardo, M. F., Hering, J. N., Jennifer, I., & Ricky, R. (2021). Integration expectation confirmation theory and AISAS model in coffee shop repurchase intention. Jurnal Manajemen Bisnis, 8(2), 255-267. https://doi.org/10.33096/jmb.v8i2.788

Kee, D. M. H., Murthy, R., Ganasen, R., Lingam, R. R., & Chandran, R. (2021). The Impact of Marketing on Customer Loyalty: A Study of Dutch Lady in Malaysia. International Journal of Accounting & Finance in Asia Pasific, 4(3), 31-41. https://doi.org/10.32535/ijafap.v4i3.1203

Khaddam, A. A., Irtaimeh, H. J., & Bader, B. S. (2020). The effect of supply chain management on competitive advantage: The mediating role of information technology. Uncertain Supply Chain Management, 547-562. https://doi.org/10.5267/j.uscm.2020.3.001

Kotler, P. (2003). Marketing Management (5th ed.). Pearson Education, Inc.

Kotler, P., & Keller, K. L. (2008). Marketing Management (13th ed.). Penerbit Erlangga. Ku, E. C., Wu, W., & Chen, Y. J. (2015). The relationships among supply chain partnerships, customer orientation, and operational performance: The effect of flexibility. Information Systems and e-Business Management, 14(2), 415-441.https://doi.org/10.1007/s10257-015-0289-0

Lu, D., Ding, Y., Asian, S., & Paul, S. K. (2017). From supply chain integration to operational performance: The moderating effect of market uncertainty. Global Journal of Flexible Systems Management, 19(S1), 3-20. https://doi.org/10.1007/s40171-017-0161-9

Irawan, H. (2008). Membedah Strategi Kepuasan Pelanggan. PT Gramedia.

Maladi, M., Nirwanto, N., & Firdiansjah, A. (2019). The impact of service quality, company image and switching barrier on customer retention: Mediating role of customer satisfaction. International Journal of Applied Business and International Management, 4(2), 57-64. https://doi.org/10.32535/ijabim.v4i2.567

Pérez-Morón, J., Madan, S., Cheu, J. Y., Kee, D. M. H., Cheong, L. C., Chin, R., & García, A. P. M. (2022). Effect of service quality and customer satisfaction on customer loyalty: A case study of Starbucks in Malaysia. International journal of tourism and hospitality in Asia Pasific, 5(1), 62-74. https://doi.org/10.32535/ijthap.v5i1.1402

Rahim, A. G., Ignatius, I. U., & Adeoti, O. E. (2012). Is customer satisfaction an indicator of customer loyalty?. Australian Journal of Business and Management Research, 2(7), 14-20.

Rama, R. (1996). Empirical study on sources of innovation in international food and beverage industry. Agribusiness: An International Journal, 12(2), 123-134. https://doi.org/10.1002/(SICI)1520-6297(199603/04)12:2%3C123::AID- AGR2%3E3. 0.CO;2-4

Saryatmo, M. A., & Sukhotu, V. (2021). The influence of the digital supply chain on operational performance: A study of the food and beverage industry in Indonesia. Sustainability, 13(9), 5109. https://doi.org/10.3390/su13095109

Shobayo, P. B. (2017). Supply chain management and operational performance in Nigeria: A panel regression model approach. International Journal of Entrepreneurial Knowledge, 5(2). https://doi.org/10.37335/ijek.v5i2.60

Silvestro, R., & Cross, S. (2000). Applying the service profit chain in a retail environment. International Journal of Service Industry Management, 11(3), 244-268. https://doi.org/10.1108/09564230010340760

Tendur, S. T. T., Hutabarat, V. V., & Tumbelaka, S. S. (2021). Price perception, service quality and customer satisfaction (Empirical study on cafes at Tondano City). International Journal of Tourism and Hospitality in Asia Pasific, 4(3), 19-31. https://doi.org/10.32535/ijthap.v4i3.1196

Torok, A., Mizik, T., & Jambor, A. (2018). The competitiveness of global coffee trade. International Journal of Economics and Financial Issues, 8(5), 1-6.

Wong, C. Y., Boon-itt, S., & Wong, C. W. (2011). The contingency effects of environmental uncertainty on the relationship between supply chain integration and operational performance. Journal of Operations Management, 29(6), 604- 615. https://doi.org/10.1016/j.jom.2011.01.003

Wahyudi, A., Wulandari, S., Aunillah, A., & Alouw, J. C. (2020). Sustainability certification as a pillar to promote Indonesian coffee competitiveness. IOP Conference Series: Earth and Environmental Science, 418(1), 012009. https://doi.org/10.1088/1755-1315/418/1/012009

Wongkar, E. V., Saerang, D. P., & Tumewu, F. J. (2020). Product performance and servicescape comparison between Starbucks and coffee bean in Manado Town Square. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi, 8(1). https://doi.org/10.35794/emba.v8i1.27502

DOI: https://doi.org/10.32535/ijthap.v7i1.2167