Impact of Service Value to the Customer Retention of Selected Milk Tea Shops Along Valenzuela City

Vol.4, No.1

Abstract

The increasing competition in the milk tea business has many factors to consider, especially in
providing a service specifically to the price and quality of milk tea products; the consumers are
after the prices offered by the different milk tea shops and also with the marketing strategy
they impose for every product they launch. The purpose of the study is to determine the
impact of service value on the customer retention of selected Milk Tea shops along
Valenzuela City in terms of age, gender, and socio-economic status.

The result of the study revealed that the impact of service value on customer retention in milk
tea shops is “strongly agree” in terms of reliability, assurance, tangibles, empathy, and
responsiveness. However, the biggest problems encountered by the customers of milk tea
shops for service that they experience are long wait times and broken promises. Furthermore,
there is no significant relationship between the service value effect and demographic profile.

Overall, the study recommends that Milk Tea Shop should improve their service in terms of
providing fast service to the customer; they should conduct an evaluation from customers’
feedback at least once a month to decide what kind of action are they going to perform; they
must always be conscious regarding to the quality of their products and equipment; and must
have physical store that can give comfortable waiting area to the customers.