FACTORS AFFECTING CUSTOMER RETENTION AND SATISFACTION IN SELECTED MILKTEA SHOPS IN BAGONG SILANG CALOOCAN CITY

Abstract

This research explores the increasing popularity of the milk tea industry. Milk tea refers to various types of teas and tea-based drinks enjoyed worldwide. This growing demand has created significant opportunities for entrepreneurs to enter the industry, increase their income, and develop innovative products from traditional offerings. The study was conducted in response to the observed rise in consumer enthusiasm for milk tea. The researchers utilized a descriptive research design with a quantitative approach. This study requires sixty (60) respondents, who will be customers of three (3) milk tea shops in Bagong Silang, Caloocan City. These respondents possess the necessary knowledge to address the issues examined in the study. The findings indicate that an appealing and contemporary decor significantly enhances customer satisfaction, fostering trust and loyalty, with an overall weighted mean of 3.88. Promptly addressing customer inquiries is also highly valued, with an overall weighted mean of 3.83. Additionally, quality packaging plays a crucial role in product perception and safety, greatly impacting customer satisfaction, with an overall weighted mean of 3.96.  The study also identifies the criteria respondents use to measure customer satisfaction. Brand satisfaction is achieved when the business logo is both memorable and relevant, with an overall weighted mean of 3.78. Price satisfaction is attained when stores offer affordable add-ons, also with an overall weighted mean of 3.78. Product satisfaction is realized when stores consistently provide a standard quantity of food, with an overall weighted mean of 3.73.  The primary challenge regarding pricing was the lack of discounts on bulk orders. In terms of delivery, the most notable issue was delays in product delivery. Regarding communication, the main challenge was the disregard for customer feedback. Recommendations include considering various demographic factors such as age, gender, and customer status when developing the research. Milk tea shop owners should enhance their product offerings and undergo proper training to effectively address customer feedback and ensure satisfaction. Creating a captivating tagline, assessing affordability, and maintaining quality standards are essential for customer engagement. Lastly, the researchers proposed an output model to address the factors affecting customer retention and satisfaction in the milk tea shop business.