Assessing Customer Trust, Satisfaction, and Loyalty in the Malaysian Ice Cream and Milk Tea Industry

Hala Najwan, Oh ZI Jian, Wen Kai Goh, Yong Teng Foo, Fatimah Az Zahraa` Azali, Xi Gao, Arya Tripathi, Daisy Mui Hung Kee

Abstract


This study investigates customer satisfaction, trust, and loyalty within Malaysia's ice cream and milk tea industry, focusing on Mixue Ice Cream & Tea. While previous research has predominantly examined how factors such as taste, perceived price, and service quality impact customer satisfaction, this study aims to bridge the gap by exploring the transition from customer loyalty to brand loyalty and its subsequent effect on brand competitiveness. Utilizing a quantitative approach, online surveys were administered to milk tea consumers across Malaysia. The analysis reveals that customer satisfaction and customer loyalty have a positive association, supporting Hypothesis H1, while customer trust significantly influences customer loyalty, confirming Hypothesis H2. However, the analysis rejects Hypotheses H4 and H5, indicating no substantial positive association between customer satisfaction and trust with brand loyalty. Notably, customer loyalty shows a strong positive relationship with brand loyalty, thus supporting Hypothesis H3. These findings contribute to the existing literature by detailing how customer satisfaction and trust evolve into strong brand loyalty and provide strategic recommendations to enhance Mixue Ice Cream & Tea's competitiveness in the F&B sector


Keywords


Brand Loyalty; Competitiveness; Customer Loyalty; Customer Satisfaction; Customer Trust.

Full Text:

PDF

References


Abbas, U., Islam, K. M. A., Hussain, S., Baqir, M., & Muhammad, N. (2021). Impact of brand image on customer loyalty with the mediating role of customer satisfaction and brand awareness. International Journal of Marketing Research Innovation, 5(1), 1–15. https://doi.org/10.46281/ijmri.v5i1.987

Abdullah, M. A., & Abdullah, N. (2020). An initial attempt: A synthesis of cultural adaptation and representation in animation. International Journal of Academic Research in Business and Social Sciences, 10(12), 546-557. https://doi.org/10.6007/ijarbss/v10-i12/8354

Alalwan, A. A., Rana, N. P., Algharabat, R., & Tarhini, A. (2016). A systematic review of extant literature in social media in the marketing perspective. In Social Media: The Good, the Bad, and the Ugly: 15th IFIP WG 6.11 Conference on e-Business, e-Services, and e-Society, I3E 2016, Swansea, UK, September 13–15, 2016, Proceedings 15 (pp. 79-89). Springer International Publishing. https://doi.org/10.1007/978-3-319-45234-0_8

Anderson, E. W., & Mittal, V. (2000). Strengthening the satisfaction-profit chain. Journal of Service research, 3(2), 107-120. https://doi.org/10.1177/109467050032001

Arshad, M. R., Yoon, K. H., & Manaf, A. A. (2018). Character pleasantness in Malaysian animated cartoon characters. In SHS Web of Conferences (Vol. 53, p. 02004). EDP Sciences. https://doi.org/10.1051/shsconf/20185302004

Arslan, K. (2020). The importance of creating customer loyalty in achieving sustainable

competitive advantage. Eurasian Journal of Business and Management, 8(1), 11–20. https://doi.org/10.15604/ejbm.2020.08.01.002

Azizan, N. S., & Yusr, M. M. (2019). The influence of customer satisfaction, brand trust, and brand image towards customer loyalty. International Journal of Entrepreneurship and Management Practices, 2(7), 93–108. https://doi.org/10.35631/ijemp.270010

Ball, D., Coelho, P. S., & Vilares, M. J. (2006). Service personalization and loyalty. Journal of Services Marketing, 20(6), 391–403. https://doi.org/10.1108/08876040610691284

Bendall?Lyon, D., & Powers, T. L. (2003). The influence of mass communication and time on satisfaction and loyalty. Journal of Services Marketing, 17(6), 589–608. https://doi.org/10.1108/08876040310495627

Bishop, C. (2021, November 15). Customer Trust: Definition, Importance & 5 Ways to Gain It. Zendesk. https://www.zendesk.com/blog/customer-trust/

Bowen, J. T., & Chen, S. (2001). The relationship between customer loyalty and customer satisfaction. International Journal of Contemporary Hospitality Management, 13(5), 213–217.

Chen, S.-C. (2012). The customer satisfaction–loyalty relation in an interactive e-service setting: The mediators. Journal of Retailing and Consumer Services, 19(2), 202–210. https://doi.org/10.1016/j.jretconser.2012.01.001

Cho, J. (2006). The mechanism of trust and distrust formation and their relational outcomes. Journal of Retailing, 82(1), 25–35. https://doi.org/10.1016/j.jretai.2005.11.002

De Jesus, F. S. (2020). Milk tea industry: An exploratory study. International Journal of Advanced Engineering, Management and Science, 6(2), 66–73. https://doi.org/10.22161/ijaems.62.1

Ehigie, B. O. (2006). Correlates of customer loyalty to their bank: A case study in Nigeria. International Journal of Bank Marketing, 24(7), 494–508. https://doi.org/10.1108/02652320610712102

Fan, Y., & Yan, K. (2022). Opportunities and challenges for the development of new-style milk tea drinking industry in China-take sexy tea as an example. In 2022 2nd International Conference on Management Science and Industrial Economy Development (MSIED 2022) (pp. 442-452). CSP. https://doi.org/10.23977/MSIED2022.057

Fe?iková, I. (2004). An index method for measurement of customer satisfaction. The TQM Magazine, 16(1), 57–66. https://doi.org/10.1108/09544780410511498

Fortune Business Insights. (2024, August). Bubble Tea Market Size, Analysis & Regional Forecast 2026. Fortune Business Insights. https://www.fortunebusinessinsights.com/industry-reports/bubble-tea-market-101564

Gustafsson, A., Johnson, M. D., & Roos, I. (2005). The effects of customer satisfaction, relationship commitment dimensions, and triggers on customer retention. Journal of Marketing, 69(4), 210–218. https://doi.org/10.1509/jmkg.2005.69.4.210

Hallowell, R. (1996). The relationships of customer satisfaction, customer loyalty, and profitability: An empirical study. International Journal of Service Industry Management, 7(4), 27–42. https://doi.org/10.1108/09564239610129931

Han, H., & Ryu, K. (2009). The roles of the physical environment, price perception, and customer satisfaction in determining customer loyalty in the restaurant industry. Journal of Hospitality & Tourism Research, 33(4), 487–510. https://doi.org/10.1177/1096348009344212

Han, Y. (2018). Study on consumption behavior of milk tea based on the customer value theory--taking" A Little Tea" in Shenzhen as an example. In 2018 International Conference on Management, Economics, Education and Social Sciences (MEESS 2018) (pp. 498-505). Atlantis Press. https://doi.org/10.2991/meess-18.2018.93

Hayuni, H. Z., & Sharif, O. O. (2023). The effects of brand image, brand satisfaction, and brand trust on loyalty formation: The moderation role of brand love and brand respect of Mixue ice cream & tea. Jurnal Ekonomi, 12(04), 642–658.

Hu, N., Liu, X., Mu, K., Shen, Y., & Zhang, M. (2023). The blue ocean strategy of mixue ice cream and tea during market saturation crisis in the milk tea industry. In Proceedings of the 6th International Conference on Economic Management and Green Development (pp. 1117–1127). Springer Nature Singapore. https://doi.org/10.1007/978-981-19-7826-5_107

Hùng, V. N. (2023, April 7). Mixue: From a small house selling “Bing chilling” to a chain of 22,000 stores worldwide Malu Design - Branding Agency. MALU. https://maludesign.vn/en/news/case-study-mixue-from-a-small-house-selling-bing-chilling-to-a-chain-of-22000-stores-worldwide/

Iqbal, M. S., Ul Hassan, M., & Habibah, U. (2018). Impact of self-service technology (SST) service quality on customer loyalty and behavioral intention: The mediating role of customer satisfaction. Cogent Business & Management, 5(1). https://doi.org/10.1080/23311975.2018.1423770

INQUIRER.NET. (2020, July 10). Milk Tea Madness, Equilibrium Offers Tea-Rrific Discounts for July. INQUIRER.NET. https://business.inquirer.net/302191/milk-tea-madness-equilibrium-offers-tea-rrific-discounts-for-july

Islam, T., Islam, R., Pitafi, A. H., Xiaobei, L., Rehmani, M., Irfan, M., & Mubarak, M. S. (2021). The impact of corporate social responsibility on customer loyalty: The mediating role of corporate reputation, customer satisfaction, and trust. Sustainable Production and Consumption, 25, 123-135. https://doi.org/10.1016/j.spc.2020.07.019

Ji, J. (2023a). Analysis on the marketing of MIXUE Ice Cream & Tea. Advances in Economics Management and Political Sciences, 43(1), 151–155. http://dx.doi.org/10.54254/2754-1169/43/20232148

Ji, Y. (2023b). “Snow King” counterattack: Mixue Ice Cream & Tea brand marketing upgrade strategy. Highlights in Business, Economics and Management, 19, 620–624. https://doi.org/10.54097/hbem.v19i.12094

Jung, J., Kim, S. J., & Kim, K. H. (2020). Sustainable marketing activities of traditional fashion market and brand loyalty. Journal of Business Research, 120(4), 294–301. https://doi.org/10.1016/j.jbusres.2020.04.019

Kee, D. M. H., Gan, Z. W., Chan, Y. Q., Lee, H. T., Tan, X. Y., & Lee, S. W. (2021a). Customer satisfaction and brand loyalty: A case study of Nestlé. Advances in Global Economics and Business Journal, 2(1), 13-26.

Kee, D. M. H., Veeraselvam, V. R. A., Vayapuri, V. A., Aisyah, U., A’ishah, T. A., Enakhifo, E., & Edeh, F. O. (2022). Contributing factors to customer satisfaction during the pandemic: A study of Foodpanda of Malaysia and Nigeria. International Journal of Tourism and Hospitality in Asia Pasific, 5(1), 21–33. https://doi.org/10.32535/ijthap.v5i1.1399

Kee, D. M. H., Zakiah, S. N. S., Nadhirah, A., Shamsuri, N. B., Syazana, N. A., & Nadia, N. I. (2021b). The impact of Covid-19 pandemic on customer satisfaction and business performance of Foodpanda. Advances in Global Economics and Business Journal, 2(1), 27-38.

Koh, B. (2024, February 20). Celebrating Mixue’s Phenomenal Success in Southeast Asia: A Story of Innovation and Influence. Medium. https://medium.com/@Bernard_Koh/celebrating-mixues-phenomenal-success-in-southeast-asia-a-story-of-innovation-and-influence-3210ae25a260

Kotler, P., & Armstrong, G. (2018). Principles of Marketing (17th ed.). Pearson Education Limited.

Kotler, P., Keller, K. L., Brady, M., Goodman, M., & Hansen, T. (2019). Marketing Management (4th ed.). Pearson Education Limited.

Kumar, V., Pozza, I. D., & Ganesh, J. (2013). Revisiting the satisfaction–loyalty relationship: Empirical generalizations and directions for future research. Journal of Retailing, 89(3), 246–262. https://doi.org/10.1016/j.jretai.2013.02.001

Lam, R., & Burton, S. (2006). SME banking loyalty (and disloyalty): A qualitative study in Hong Kong. International Journal of Bank Marketing, 24(1), 37–52. https://doi.org/10.1108/02652320610642335

Lau, K. C. (2023, December 27). Mixue’s Mastery: A Bubble Tea Empire’s Rise to Dominance – KCLau.com. KCLau.com. https://kclau.com/investment/mixues-mastery-a-bubble-tea-empires-rise-to-dominance/

Leninkumar, V. (2017). The relationship between customer satisfaction and customer trust on customer loyalty. International Journal of Academic Research in Business and Social Sciences, 7(4), 450-465. https://doi.org/10.6007/ijarbss/v7-i4/2821

Lim, Y. H., Kee, D. M. H., Lai, X. Y., Lee, Z. M., Low, M. Q., Sariya, S., & Sharma, S. (2020). Organizational culture and customer loyalty: A case of Harvey Norman. Asia Pacific Journal of Management and Education, 3(1), 47–62. https://doi.org/10.32535/apjme.v3i1.743

Martínez, P., & Del Bosque, I. R. (2013). CSR and customer loyalty: The roles of trust, customer identification with the company and satisfaction. International Journal of Hospitality Management, 35, 89-99. https://doi.org/10.1016/j.ijhm.2013.05.009

Min, J. E., Green, D. B., & Kim, L. (2016). Calories and sugars in boba milk tea: implications for obesity risk in Asian Pacific Islanders. Food Science & Nutrition, 5(1), 38–45. https://doi.org/10.1002/fsn3.362

Minta, Y. (2018). Link between satisfaction and customer loyalty in the insurance industry: Moderating effect of trust and commitment. Journal of Marketing Management, 6(2), 25-33. American Research Institute for Policy Development. https://doi.org/10.15640/jmm.v6n2a3

Nurfitriana, R., Surachman, S., & Hussein, A. S. (2020). The influence of brand image and brand love on customer loyalty mediated by customer engagement: Study on consumers of Wardah Cosmetics. Management and Economic Journal, 4(2), 105–116. https://doi.org/10.18860/mec-j.v4i2.6251

Nursalim, H., & Setianingsih, R. E. (2023). The influence of viral marketing and brand awareness on consumers purchase intention of Mixue Beverage Products in Jakarta. Journal of International Conference Proceedings, 6(1), 100–111. https://doi.org/10.32535/jicp.v6i1.2258

Pawle, J., & Cooper, P. (2006). Measuring emotion—lovemarks, the future beyond brands. Journal of Advertising Research, 46(1), 38–48. https://doi.org/10.2501/s0021849906060053

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

PR Newswire, V. (2021, October 21). 43% of Consumers Are Loyal to at Least One Food and Beverage Company, Encouraging Emotive and Sensory Branding Strategies. PR Newswire. https://www.prnewswire.com/news-releases/43-of-consumers-are-loyal-to-at-least-one-food-and-beverage-company-encouraging-emotive-and-sensory-branding-strategies-301404992.html

Putra, J. S., & Cokki, C. (2023). Factors influencing customer loyalty toward Mixue Ice Cream and Tea shop in Jakarta. International Journal of Application on Economics and Business, 1(3), 1669–1680. https://doi.org/10.24912/ijaeb.v1i3.1669-1680

Ramaswami, R. (2020, December 1). Brand Strategies Focused on Dependability Score Highest on Customer Trust. Gartner. https://www.gartner.com/en/marketing/insights/articles/brand-strategies-focused-dependability-score-highest

Rasheed, F. A., & Abadi, M. F. (2014). Impact of service quality, trust, and perceived value on customer loyalty in Malaysia services industries. Procedia - Social and Behavioral Sciences, 164, 298–304. https://doi.org/10.1016/j.sbspro.2014.11.080

Reichheld, F. F. (2014a, August). Learning from Customer Defections. Harvard Business Review. https://hbr.org/1996/03/learning-from-customer-defections

Reichheld, F. F. (2014b, August). Loyalty-Based Management. Harvard Business Review. https://hbr.org/1993/03/loyalty-based-management

Ren, S. (2021, June 25). Bloomberg - Are you a robot? Bloomberg. https://www.bloomberg.com/opinion/articles/2021-06-24/luckin-coffee-failed-to-convert-china-to-coffee-now-bubble-tea-wants-a-chance?srnd=premium&sref=pqQBM94V

Ruiz, E. H., Restrepo, C. A. P., Lopez, C. A., Jegathesan, K. A., Kee, D. M. H., Ganasan, K. A., ..., & Rao, P. A. N. (2020). Samsung: Customer Loyalty Strategy in Malaysia and Colombia. International Journal of Accounting & Finance in Asia Pasific, 3(2), 57–67. https://doi.org/10.32535/ijafap.v3i2.835

Sangwai, V., & Deshmukh, R. (2023). Bubble Tea Market by Flavor, by Base Ingredient, by Component: Global Opportunity Analysis and Industry Forecast, 2023-2032. Research and Markets. https://www.researchandmarkets.com/reports/5118779/bubble-tea-market-by-flavor-by-base-ingredient

Sener, H., & Behdio?lu, H. Y. (2013). Customer Perceived Value, Satisfaction and Cost of Switching to Competitor Business: Statistical Application in a Sports Center. Acarindex. https://www.acarindex.com/selcuk-universitesi-sosyal-bilimler-enstitusu-dergisi/musteri-sadakati-olusturmada-musterinin-algiladigi-deger-memnuniyet-ve-rakip-isletmeye-gecme-maliyeti-bir-spor-merkezinde-istatiksel-uygulama-362681

Shi, W., Yang, C., & Yu, P. (2021, December). Brand new milk tea market: Chinese milk tea development and brand analysis. In 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021) (pp. 2639-2647). Atlantis Press. https://doi.org/10.2991/assehr.k.211209.429

Song, H., Wang, J., & Han, H. (2019). Effect of image, satisfaction, trust, love, and respect on loyalty formation for name-brand coffee shops. International Journal of Hospitality Management, 79, 50–59. https://doi.org/10.1016/j.ijhm.2018.12.011

Sulibhavi, B., & Shivashankar, K. (2017). Brand image and trust on customers loyalty: a study on private label brands in Hubli-Dharwad Conglomerate City of Karnataka. International Journal of Engineering Research and Application, 7(9), 1-6. https://doi.org/10.9790/9622-0709060106

Tan, H. H. (2019, July 23). Milk Tea Craze Bubbles Up in Southeast Asia. Mintel. https://www.mintel.com/insights/food-and-drink/milk-tea-craze-bubbles-up-in-southeast-asia/

Ting, Y. H. (2022, August 16). S-E Asia Spends US$3.7b on Bubble Tea in 2021, Indonesia Tops List: Report. The Business Times. https://www.businesstimes.com.sg/international/asean/s-e-asia-spends-us37b-bubble-tea-2021-indonesia-tops-list-report

Voss, G. B., Godfrey, A., & Seiders, K. (2010). How complementarity and substitution alter the customer satisfaction–repurchase link. Journal of Marketing, 74(6), 111-127. https://doi.org/10.1509/jmkg.74.6.111

Wang, X. (2023). Brand marketing strategy analysis of the tea beverage industry taking Mixue Ice Cream & Tea as an example. Advances in Economics Management and Political Sciences, 23(1), 71–75. https://doi.org/10.54254/2754-1169/23/20230355

Wijaya, J., & Putra, S. D. (2023). Relationships between service quality, brand image, customer satisfaction, and customer loyalty of UC Makassar. Jurnal Entrepreneur Dan Entrepreneurship, 12(2), 107-120. https://doi.org/10.37715/jee.v12i2.4084

Wreden, N. (2007). Profit Brand: How to Increase the Profitability, Accountability & Sustainability of Your Brand. Kogan Page.

Xu, J., Sukpasjaroen, K., & Chankoson, T. (2024). The research on M milk tea brand: market positioning, consumer insights, and future strategic outlook. Migration Letters, 21(4), 277–293.

Yap, B. W., Ramayah, T., & Nushazelin Wan Shahidan, W. (2012). Satisfaction and trust on customer loyalty: a PLS approach. Business Strategy Series, 13(4), 154–167. https://doi.org/10.1108/17515631211246221

Yo, P. W., Kee, D. M. H., Yu, J. W., Hu, M. K., Jong, Y. C., Ahmed, Z., …, & Nair, R. K. (2021). The influencing factors of customer satisfaction: A case study of Shopee in Malaysia. Studies of Applied Economics, 39(12). https://doi.org/10.25115/eea.v39i12.6839

Zhu, Y.-Q., & Chen, H.-G. (2015). Social media and human need satisfaction: Implications for social media marketing. Business Horizons, 58(3), 335–345. https://doi.org/10.1016/j.bushor.2015.01.006




DOI: https://doi.org/10.32535/jcda.v7i3.3504

Refbacks

  • There are currently no refbacks.




Copyright (c) 2024 Hala Najwan, Oh ZI Jian, Wen Kai Goh, Yong Teng Foo, Fatimah Az Zahraa` Azali, Xi Gao, Arya Tripathi, Daisy Mui Hung Kee

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Journal of The Community Development in Asia (JCDA)

ISSN 2685-8819 (Print) | ISSN 2654-7279 (Online)

DOI Prefix: 10.32535 by CrossRef

Published by AIBPM Publisher

JL. Kahuripan No. 9, Hotel Sahid Montana, Malang, Indonesia

Email: journal.jcda@gmail.com

Phone: +62 341 366222

Website: https://aibpmpublisher.com/

Governed by

Association of International Business and Professional Management

Email: admin@aibpm.org

Website: https://www.aibpm.org/

Visitor Statistics

Flag Counter

Web Analytics

View JCDA Stats

Follow Us: