1

SERVICE QUALITY AND CUSTOMER SATISFACTION AS DETERMINANTS

OF CUSTOMER RETENTION AMONG COFFEE BEAN AND TEA LEAF
DRINKERS IN BACOOR CITY, CAVITE

VIVIAN C. DESPE
MONICA LAURENCE R. GONZALES
JERA MAE B. SUMOOK

An undergraduate thesis manuscript submitted to the faculty of the Department of

Management Studies, Cavite State University – Bacoor City Campus, City of Bacoor,
Cavite in partial fulfillment of the requirements for the degree of Bachelor of Science
in Business Management with Contribution No.__________. Prepared under the
supervision of Ms. Janice A. Nealega

INTRODUCTION

Coffee is one of the world’s most popular beverages. Some claim it is the

most widely consumed liquid in the world aside from water. Coffee is more than a

beverage, however. It is a memory, an anticipation, a lifetime of consoling moments

of modest pleasure woven into our lives. Coffee’s success as a beverage

undoubtedly is owing both to the caffeine it harbors and to its sensory pleasure.

Coffee lovers come to associate the energizing lift of the caffeine with the richness

and aroma of the beverage that delivers it.

Coffee shops largely serves as center of social interaction wherein they

provide a good venue to conduct office meetings and friends hang out. In other

words, coffee shops provide social members with a place to congregate, talk, write,

read, entertain one another or make it as a pass time whether individually or in a

small group. Coffee culture is now in a growing trend where there are more coffee

drinkers enjoying having a cup of coffee in the coffee shop.

The consumers nowadays contributed more by the younger generations as

they perceive coffee not just a beverage, but a self-ego. This is where socialization

plays an important role for them. They tend to have gathering or study discussion
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with their friends in those coffee shops that provide a comfortable environment.

Choosing a coffee shop for these coffee drinkers do not only look into the quality of

coffee, but also takes into consideration of other factors such as servicescape and

service quality provided by the coffee shop..

Customer satisfaction is defined as "the number of customers, or percentage

of total customers, whose reported experience with a firm, its products,oritsservices

(ratings) exceeds specified satisfaction goals. Customer satisfaction as noted by

Tahir, Waggett and Hoffman (2014), is “a customer's perspective based on

expectation and then subsequent post purchase experience”. In other words, it is an

evaluation of products or services‟ quality level that meets or exceeds the customer

expectations.

The present’s competitive setting of businesses exploits customer retention in

order to ensure the company’s fortification against penetrative competition (Fluss

2010). Retention of the customer is the approach in which organizations emphasize

their exertions on current customers with the aim to carry on business with them

(Mostert et.al, 2010).

Service quality is considered as customer’s assessment and satisfaction

regarding the services they receive from their organizations. Therefore, success of

any service related organization is actually based on the service quality and the

satisfaction of their customers with the services provided to them (Makanyeza &

Chikazhe, 2017).

The first relevant scientific contribution of this study is to provide a deeper

understanding on how consumer can reveal customer retention on product and

services provided by coffee shop. The study was intended to help in reaching a more

informative decision making in patronizing product and services. The study

determined the service quality and customer satisfaction as determinants of

customer retention among coffee bean and tea leaf drinkesr.

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Statement of the Problem

The study was used to determine the service quality and customer

satisfaction as determinants of customer retention among Coffee Bean and Tea Leaf

drinkers.

The study specifically aimed to give answers to the following questions:

1. What is the socio- demographic profile of the respondents in terms of :

a.Age

b. Sex

c. Monthly Income

d.Educational Attainment

2. What is the determinants of customer retention onservice quality dimension

in terms of:

a. Tangible

b. Reliability

c. Assurance

d. Responsiveness

e. Empathy

3. What is the level of customer satisfaction in terms of:

a. Value of service quality or product quality

b. Customer emotion

c. Perception of equality and fair treatment

4. What is the extent of customer retention among coffee bean and tea leaf

drinkers?

5. Is there a significant relationship between service quality and customer

retention among coffee bean and tea leaf drinkers in Bacoor?

6. Is there a significant relationship between customer satisfaction and customer

retention among coffee bean and tea leaf drinkers in Bacoor?

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Objectives of the Study

Generally, the study aimed to determine the service quality and customer

satisfaction as determinants of customer retention among coffee bean and tea leaf

drinkers.

Specifically, it also aimed to:

1.Identify the socio-demographic profile of the respondents

2.Identify the determinants of customer retention on service quality dimensions

3.Determine the level of customer satisfaction

4. Determine theextent of customer retention

5. Evaluate the relationship between service quality and customer retention among

coffee bean and tea leaf drinkers in bacoor

6. Evaluate the relationship between customer satisfaction and customer retention

among coffee bean and tea leaf drinkers in Bacoor,

Hypothesis

H0. There is no significant relationship between service quality and customer

retention among coffee bean and tea leaf drinkers in Bacoor City, Cavite.

H0. There is no significant relationship between customer satisfaction and

customer retention among coffee bean and tea leaf drinkers in Bacoor City, Cavite.

Conceptual Framework of the Study

In this part, IPO model is being used. The input–process–output (IPO) model,

or input-process-output pattern, is a widely used approach in systems analysis

and software engineering for describing the structure of an information processing

program or other process.

For the input of the study it includes the socio-demographic profile of the

customer, determinants of the customer satisfactions and service quality dimensions

.Socio-demographic profile consist of age, gender, monthly income/allowance, and

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educational attainment. Determinants of customer satisfaction such as; value of

service quality or product quality, customer emotion, and perception of equality and

fair treatment. Service quality dimension includes tangible, reliability, assurance,

responsiveness, and empathy.

Through survey and interviews the researcher used it to gather and collect

information needed.

For the output of the study as the result being collected, the data was the final

output or the answer to the problem.

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INPUT PROCESS OUTPUT

Socio-demographic
profile

 age
 gender
 monthly
income
 educational
attainment
Determinants of
customer satisfaction Survey
Customer Retention
 value of service Questionnaire
quality or on Coffee Bean and
product
quality Tea Leaf
 customers
emotion
 perception of
equality and
fair treatment
Service Quality

 tangible
 reliability
 assurance
 responsiveness
 empathy

Figure 1. Conceptual Framework shows the service quality and customer satisfaction
as determinants of customer retention among coffee bean and tea leaf
drinkers in Bacoor City,Cavite.
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Significance of the Study

The study would be beneficial and be significant to a number of individuals,

some of whom would include the following:

To the Coffee Bean and Tea Leaf Management. They would make use of

the study to measure the impact of a customer in offering their products.

To the Customers. The study would make them be aware to choose coffee

shops prior to purchase.

To the Future Researchers. The study would benefit and help the future

researchers as their guide on conducting research related to the topic. The study

can also open in development of this study.

Time and Place of the Study

The study was conducted at Coffee Bean and Tea Leaf Bacoor City, Cavite

from November 2018 to April 2019.

Scope and Limitation of the Study

The study mainly focused on service quality and customer satisfaction as

determinants of customer retention among Coffee Bean and Tea Leaf customers.

Customer satisfaction in terms of value of service or product quality, customer

emotion, and perception of equality. Determinants of customer retention on service

quality dimension such as tangible, reliability, assurance, responsiveness, and

empathy.
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Defintion of Terms

To understand the study, the following terms were defined and used in the

study:

Age. It refers to the time period a person or a thing survived until date.

Assurance. The term refers to financial coverage that provides remuneration

for an event that is certain to happen.

Customer Retention. It refers to the ability of a company or product to retain

its customer over some specified period.

Customer’s Emotion. It is being used to measure emotions and why

emotional intelligence is increasingly valuable attribute for employees.

Customer Satisfaction. It is a measure of how products and services

supplied by a company meet or surprass customer expectation.

Education. The term used to know the level of educational attainment of the

respondents.

Empathy. The term refers to the ability to share another person's feelings and

emotion.

Income. The term refers to the increase usually measured in money that

comes from labour, business, or property.

Perceived Switching Barriers. It refers the any factor which makes it difficult

or costly for consumer to change provider.

Perception of Equality and Fair Treatment. The term refers the

offering equal opportunities to employees for training and career developmentand

making any reasonable adjustments for disabilities should they arise.

Reliability. The term refers to the quality or state of being fit to be trusted or

relied on. Quality assurance means developing operational controls to ensure that

the results match the desired outcomes. Customer service operations are designed

to keep customers satisfied while protecting the organization. To make sure

customer service achieves these goals in your small business, the person
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responsible for quality assurance must define the quality functions as they apply on

how to serve customers.

Responsiveness. The term refers to the react of people or events and to

show emotions such as pleasure and affection.

Service Quality. It is a product of the effort that every member of the

organization invests in satisfying customers. In its broadest sense service quality is

defined as superiority or excellence as perceived by the customer.

Sex. The term refers to know who the respondents is.

Tangible. The refers to having physical substance and intrinsic monetary

value.

Trust. It is seen as an expression of security between partners when making

an exchange, or in another type of relationship.

Value of Service Quality or Product Quality. It refers to the perception of

the degree to which the product or service meets the customer's expectations.
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REVIEW OF RELATED LITERATURE

This chapter contained the compilation of related literatures and studies. it

would support and provide background and analysis of data gathered. The studies

where taken from several journals, articles, and books from different local and foreign

authors to provide a clear concept of the study.

Demographic profile

Age

Age is considered a critical factor as it helps the marketer to determine how

desires and needs change and evolve

when the individual grows (Stafford, 1996). Studies based on the analysis of

the effect of age reveal significant differences between various age groups whether it

is at the perception level or at the degree of importance given to service quality.

Sex

Sex difference at service encounter may lead to different customer service

outcomes. The effects of gender difference have been studied on the job satisfaction

and customer satisfaction from the employee’s point of view during a service

encounter.

Whereas the studies also present effects of sex differences on customer satisfaction,

from the customer’s point of view during a service encounter.

Income

Hasty and Reardon (2014), stated that if people have more income, they

need to spend more. It leads to higher sales and more profits for retailer. Several
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studies suggest that there was a link between income and loyalty. it could be partly

explained by the fact that the income of a person has a strong impact on choice

decisions.

Education

Education influences what one can purchase by partially determining one’s

income and occupation. It also influencing how one thinks, make decisions, and

relates to others. Those with limited education are generally at a disadvantage (Pike,

2016).

Service Quality

Service quality characteristics such as reliability, responsiveness, assurance

and emphaty increase individual’s perceive value about the quality features. As a

result, it leads to an increased customer satisfaction (Juca, 2010).

Service quality has been viewed as a determinants of customer satisfaction. In

today’s world of global competition, rendering quality service is a key for success and

it has been linked with increased profitability.

Factors Affecting Customer Retention in Service Quality

Service quality is about customer’s perception of specific dimensions of

services such as reliability, responsiveness, assurance, empathy, and tangibility

(Parasuraman et al., 1988).

Tangible. Since services are tangible, customers derive their perception of

service quality by comparing the tangible associated with these services provided. It

is the appearance of the physical facilities, equipment, personnel and communication

materials. In this survey, on the questionnaire designed, the customers respond to

the questions about the physical layout and the facilities that FFR offers to its

customers.
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The appearance of physical facilities, equipment, personnel, and written

materials in stores to attract their customers. The concept of physical aspects is

defined as the retail store appearance and store layout

Tangibles are the physical appearance of the facilities, tools, personnel and

material used to provide services to the customer (Alex & Thomas, 2011). Tangibles

include the elements such as hygiene, interspace, atmosphere and location of an

entity and the physical attractiveness of the salesperson which included their facial

attractiveness and style of dress)

As compared to other elements in SERVQUAL dimension, tangible has the

lowest dimension in evaluating service quality (Witkowska & Lakstutiene, 2014).

Besides, according to Mosahab et al. (2013), tangible has the least relation

with satisfaction and loyalty, but it is still important and has positive significant

relation with satisfaction and loyalty, hence, it can be considered as health factors.

However, tangible has the highest ranking within SERVQUAL dimension in

service industry (Haksik et al., 2013).

Reliability. It is the ability to perform the promised service dependably and

accurately. Reliability means that the company delivers on its promises-promises

about delivery, sevice provision, problem resolutions and pricing. Customers want to

do business with companies that keep their promises, particularly their promises

about the service outcomes and core service attributes. All companies need to be

aware of customer expectation of reliability. Firms that do not provide the core

service that customers think they are buying fail their customers in the most direct

way.

Reliability denotes the firm’s ability to provide the promised service

consistently in a perfect manner (Hensley & Utley 2011), reliability is important

element in determining service quality.

According to Huang, Yen, Liu, and Huang (2014), in the convenience store

perspective, reliability refers to the correct execution of the promised service content
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where the store can fulfill commitments to the customers, provide appropriate

services within the promised time and provide reliable service. It is important to give

customers the perception of a convenience store as they can provide service when

needed by the customers.

Similarly, the additional explanation on reliability dimension of service quality

identified by Witkowska et al. (2014) is the ability of employees to solve problems of

every customer.

Assurance. It means to inspire trust and confidence. Assurance is defined as

employees’ knowledge of courtesy and the ability of the firm and its employees to

inspire trust and confidence.

This dimension is likely to be particularly important for the services that the

customers perceives as involving high rising and/or about which they feel uncertain

about the ability to evaluate.

In addition, Witkowska et al. (2014) described responsiveness as how the

employees respond to the customers’ request or their willingness to help and the

ability to provide services efficiently and on time.

Trust and confidence may be embodied in the person who links the customer

to the company, for example, the marketing department. Thus, employees are aware

of the importance to create trust and confidence from the customers to gain

competitive advantage and for customers’ loyalty.

Responsiveness. Willingness to help customers and provide prompt service.

It means to inspire trust and confidence. Assurance is defined as employees’

knowledge of courtesy and the ability of the firm and its employees to inspire trust

and confidence. This dimension is likely to be particularly important for the services

that the customers perceives as involving high rising and/or about which they feel

uncertain about the ability to evaluate.

Trust and confidence may be embodied in the person who links the customer

to the company, for example, the marketing department. Thus, employees are aware
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of the importance to create trust and confidence from the customers to gain

competitive advantage and for customers’ loyalty.

Assurance was ranked as the second most important dimensions in the four

cases (bank, credit card company, repair and maintenance company, long-distance

telephone company) in the study. However, assurance was the most important

dimension in various fields including insurance services (Witkowska et al., 2014).

Empathy. It means to provide caring individualized attention the firm provide

its customers. In some countries, it is essential to provide individual attention to show

to the customer that the company does best to satisfy his needs. Empathy is an

additional plus that the trust and confidence of the customers and at the same time

increase the loyalty. In this competitive world, the customer’s requirements are rising

day after day and it is the companies’ duties to their maximum to meet the demands

of customers, else customers who do not receive individual attention will search

elsewhere.

A review of the recent literature pertaining to workplace quality published in

the 21st century highlights that tangible, reliability, responsiveness, assurance and

empathy are generic service quality components that are applicable to be used by

researchers and practitioners to assess the effectiveness of service quality (Kranias

& Bourlessa 2013).

Customer Retention

Ahmed et.al (2008) expressed that the overwhelming argument for customer

retention is that it is cheaper to retain that to acquire new customers. The authors

claimed that a 5 percent increase in retention rate leads to an increase in the net

present value of customers between 25 and 85 percent.

Winer (2007) argued that in building successful relational exchanges with the

customers, there is a need to understand customer behaviors and to focus on those

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customers who can deliver long-term profits to the firm. However, no firm can hold on

to all its customers and aim at full Customer retention (Egan, 2008).

Eriksson and Vaghult (2007) argued that in order for firms to benefit from

customers relationships, they need to understand the mechanisms behind it by

studying already retained customers. The authors further argued that however,

studying already retained customer is not an easy task as customer retention is

relative to a firm’s specific context. For instance, it is complicated for a firm to know

when a customer should be considered as being “retained”. In some cases, a

customer is considered as retained when the customer makes repeated purchase

however, it then becomes complicated to evaluate how often this customer is then

expected to purchase the product or services.

The present competitive setting of businesses exploits customer retention in

order to ensure the company’s fortification against penetrative competition (Fluss

2010).

Retention of the customer is the approach in which organizations emphasize

their exertions on current customers with the aim to carry on business with them

(Mostert et.al, 2009). Ramakrishna (2009) defined customer retention as the

objective of marketing that bars customers from joining the competition.

Indicators of Customer Retention

Ranaweera and Prabhu (2003) drafted a holistic approach that examines the

combined effects of satisfaction, trust and switching barriers on customer retention.

The authors define customer retention as the prosperity for customers to stay with

their services providers. The framework provided its function to examine the main

effects of the three variables on customer retention.

Customer Satisfaction. Customer satisfaction is conceptualized by the

authors as the evaluation of the emotion and proclaims that the higher is the

satisfaction,the higher is the level of retention (Ranaweera & Prabhu 2003). Several

studies indicated that the more they remain loyal to the firm. Hence, firms have
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devoted lots of effort on managing and increasing customer satisfaction (Ranaweera

& Prabhu, 2003).

Trust. Trust is conceptualize as existing when one party has confidence in

the others party’s reliability and integrity. The authors argued in the article that

several studies have recognized that even though firms manage to properly satisfy

their customers, they may be unable to retain them. Hence, satisfaction alone is

inadequate to ensure long-term customer commitment to a single provider. Due to

costs related to the termination of the relationship. Once trust has built, the

probability of ecah party ending the relationship decreases (Ranaweera & Prabhu

2003).

Perceived Switching Barriers. The perceived switching barriers are

conceptualized as the consumers evaluation of the resources and opportunities

needed to perform the act of switching as well as the constraints preventing it

(Ranaweera & Prabhu 2003). Hence, the authors argued that the higher the level of

perceived cost is, the higher is the probability for the customer to retain.

Customer Satisfaction

Hooley et,al (2015), customer satisfaction is an important outcome of career

guidance. Public services have a duty to attend to their customers and to ensure that

they are happy with the services they receive. Measuring customer satisfaction offers

one way to do this.

Customers are more satisfied when they receive new information which is

directly useful to their career building. Consequently, careers advisers need to be

good at both finding information and employing it in ways that are relevant to their

clients.

On the other hand, customer satisfaction is an important issue in today

organizations because many cases of success or failure are defined based on

customer satisfaction with the products or services that the organizations provide to

customers (Hanzaee & Nasimi, 2012).

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The formation process of customer satisfaction starts with the purchase goal

setting. As a rule, this goal is to meet varying customer needs. After the problem

appearance the customer starts to check the information and compares analogues in

order to choose the best one (Kotler et al. 2012).

After selecting a product, the customer forms his/her expectations for the

service that will subsequently be compared with the results of service provided

consumption, after which the customer creates his/her perception of the service.

Further, an integral image is subsequently measured by the customer. The

final evaluation made by the customer could be affected by two groups of factors:

external and internal, and the final step is the comparison of expectations with the

result of the consumption. Therefore, the customer is satisfied if the expectations

coincide with the outcome (or the result exceeds expectations) or dissatisfied if not

(Szwarc, 2010).

In addition, behavioral intentions are often affected by the level of customer

satisfaction which often as mediating role (Dedic, Pavlovic & Milosevic, 2011).

Generally, when customers are satisfied with the services provided, they will spread

positive word of mouth and repeat visit to the particular coffee shop again without

thinking of changing to another coffee chain. Customers who repeat visit the coffee

chain will tend to be a loyal customer. Meanwhile, if customer has bad experience in

the particular coffee shop, they will not visit the coffee shop anymore and possibly

they will spread negative word of mouth that will affect the reputation of company.

Therefore, in order to avoid damages of reputation, it is important for manager

to find out the way on how to increase the level of customer satisfaction that lead to

behavioral intentions. Thus, a positive behavioral intention is important as it will lead

to increase level of customer retention (Kuo & Tang, 2013).

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Factors Influencing Customer Satisfaction

Customer satisfaction has become an important element in service providing

organizations because for a business to gain more market shares and profitability,

the business must understand the needs and wants of customers and be able to

satisfy them well. Factors influencing customer satisfaction are different from that

influencing customer loyalty because customer satisfaction is an attitude while

customer loyalty is a behavior (Srivastava, 2015).

Determinants of Customer Satisfaction

A company wishing to make their customers satisfied with their services must

know what makes their customers satisfied. Some of the most important elements

influencing customer satisfaction will be discussed below. It is worth noting that one

thing that makes one customer satisfied may leave the other unsatisfied.

Value of Service Quality or Product Quality. Every customer wants the

best reward for money. Before purchasing a goods or service, the customer’s

expectation is generally high. It is for the good of every service providing company to

always leave their customer wanting for more. When the quality of service or product

is far above the expectation of the customer, then the customer is left satisfied but if

the quality of service or product is below expectation, customer is left unsatisfied. It is

for this reason; the value of service or product quality is an important attribute to

customer satisfaction

Customer’s Emotion. Sometimes, it is very difficult for angry person to

appreciate something no matter how good service is provided. When an angry

customer comes

into an organization for their services or product, it is very easy for that customer to

leave unsatisfied because the person is not in good state of mind. It is generally very

difficult to please angry customers.

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Perception of Equality and Fair Treatment. Anybody will be left unsatisfied

if that person is paying same price for service or product but still being treated

differently bycompany staffs from other customers. For example, standing on a line in

a bank to be served and suddenly the customer care officer calls someone from

behind and serve that person before the persons in front. This act will leave the other

customers unsatisfied. It is very important that each customer is treated fairly and

equally (Coutts, 2011).

Service Quality and Customer Satisfaction on Various Fields

According to Jana and Chandra (2016), customer satisfaction has become an

important aspect of the hotel industry. Unlike other industries, the hotel industry

prospers due to customers’ retention. It is only through customer satisfaction that a

hotel can retain its customers. Basically, customers’ retention is dependent on the

quality of the services that they get in a hotel. Moreover, the hospitality industry has

experienced the entrance of many investors who are willing to meet all the needs of

their customers. Therefore, if customers are not satisfied by the services they receive

in one hotel, they will look for better services elsewhere (Jana & Chandra, 2016).

Mirko Palić, Mirela Maricic, Ivan Kovac (2014)The study explore impact of

personal service on customer satisfaction levels in FMCG retail in Croatia. The

findings of the research indicated that the level and quality of personal service have a

significant impact on customer satisfaction and retention but the impact of non-

personal service on retention is even stronger.

Pepe, Abratt, and Dion (2013), the purpose of this study is to investigate the

influence of private label possessed by a supermarket retailer on shop

Many researches in various fields have proven the relationship between

service quality and customer satisfaction. Good service quality is the cause of

customer satisfaction (Baksi & Parida, 2011; Seth, Momaya, & Gupta, 2008).
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Dharmalingam & Kannan, (2011); Rakesh, (2012), indirectly influencing

customer retention (Kim et al., 2010; Pham D. K., 2007), or directly (Khan, 2010;

Hanzaee & Nasimi, 2012).

In this research, service quality and customer satisfaction are understood as

two different concepts.

Service quality focuses on evaluating functions service provides via different

aspects (factors).Customer satisfaction is evaluated as a separate variable

influenced by dimensions of service quality.

Customer satisfaction has become an important element in service providing

organizations because for a business to gain more market shares and profitability,

the business must understand the needs and wants of customers and be able to

satisfy them well. Factors influencing customer satisfaction are different from that

influencing customer loyalty because customer satisfaction is an attitude while

customer loyalty is a behavior (Srivastava, 2015).

Managers must try to get feedbacks from customers to be able to know the

level of their employees. Hoffmann and Penning (2013) indicated that customer

satisfaction is the most important aspect for any firm’s growth.

Not every satisfied customer will come back to repurchase or make use of the

services of a company. Customer satisfaction cannot really guarantee the coming

back of the customer but can be an important push factor in achieving customer

loyalty (Khan, 2012). It is costlier for a company to serve new customers than serving

old customers (Gallo, 2014). In the hotel industry, everyone tries to keep their

customers thereby having a large market share.

To keep these customers, means a company has to make them satisfied but

satisfaction alone could not keep the customers since satisfaction is seen to be a

passive customer 3 condition; whereas loyalty is a proactive relationship with a

customer (Ganiyu, Uche & Elizabeth, 2012)

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METHODOLOGY

This chapter of the study presents the research design, hypothesis, sources

of data, participants of the study, sampling technique, data to be gathered, and

statistical

Research Design

The study is quantitative and used descriptive and correlation research to

determine if there was significant relationship between service quality and customer

satisfaction as determinants of customer retention among coffee bean and tea leaf

drinkers in Bacoor City, Cavite. The study used survey approach to gather necessary

information for the study.

Descriptive statistics was used to describe the socio-demographic profile of

the respondents.

Participants of the Study

The participants of the study were selected Coffee Bean and Tea Leaf

customers in Bacoor. The researchers collected both primary and secondary sources

of information. The survey questionnaire were distributed to the respondents which

served as the primary sources of data.

Data that were gathered through the use of survey questionnaire was used to

calculate the relationship between service quality and customer satisfaction as

determinants of customer retention. The secondary sources were the information

gathered from the books, internet and unpublished theses that are relevant to the

study.
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Sampling Technique

A total of 100 respondents and resarchers used purposive sampling

technique in selecting the participants of the study in order for them to get the desired

number of participants in the area. The total number of respondents of the study was

composed of the Coffee Bean and Tea Leaf drinkers in Bacoor City, Cavite.

Data Gathering Procedure

The researchers used survey questionnaire as their primary source of data.

The secondary data used by the researchers were books and internet.

A self-made questionnaire was validated by the members of the panelists and

it will undergo with reliability test by a statistician. The research instrument composed

of 3 parts. Part 1 determined the socio-demographic profile of the respondents, part 2

determined the service quality dimensions, Part 3 determined the customer

satisfaction and part 4 determined the extent of customer retention.

The researchers directly asked permission to conduct a study on Coffee Bean

drinkers in Bacoor. Researchers decided to distribute surveys and conduct interviews

to the respondents of the said study. They also decided how they would collect data.

The researchers personally distributed the survey questionnaires to Coffee Bean and

Tea Leaf customers.

Statistical Treatment of Data

The researchers employed descriptive method using the survey approach.

Descriptive statistical tools such as percentage, weighted mean, Pearson-r and Likert

scale was used to assess relevant information to serve the purpose of the study.

For the purpose of the study, the collected data will be subjected to statistical

computation through computerization.

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1. Percentage. It was used to determine the socio-demographic profile of the

respondents.

Formula:

f
P= x 100%
n

Where:

P = percentage

f = frequency

n = total number of respondents

2. Weighted Mean. It was used to determine the determinants ofcustomer retention

on service quality dimension..

Formula:

∑ wx
W.M. =
n

Where:

WM = weighted mean

x = frequency

w = rating of the respondents

n = total number of respondent

3. Likert Scale. It was used to interpret the determinants of relationship between

service quality and customer satisfaction among Coffee Bean and Tea Leaf drinkers.
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Table 1.The Four-Point likert scale used in rating the determinants of customer
retention on service quality
CATEGORICAL VERBAL
RATE EQUIVALENT
RESPONSE INTERPRETATION
4 3.26 - 4.00 Strongly Agree Very Satisfied

3 2.51 - 3.25 Agree Satisfied

2 1.76 - 2.50 Disagree Dissatisfied

1 1.00 - 1.75 Strongly Disagree Very Dissatisfied

Table 2. Four-Point likert scale used in rating the level of customer satisfaction
CATEGORICAL VERBAL
RATE EQUIVALENT
RESPONSE INTERPRETATION
4 3.26 - 4.00 Strongly Agree Very Satisfied

3 2.51 - 3.25 Agree Satisfied

2 1.76 - 2.50 Disagree Dissatisfied

1 1.00 - 1.75 Strongly Disagree Very Dissatisfied

4. Pearson r - The statistical tool was used to test therelationship betweencustomer

satisfaction and customer retention among coffee bean and tea leaf drinkers.

Formula:

n ∑ xy - (∑ x) (∑ y)
r=
√[ n ∑ x2 - (∑ x)2 ][n ∑ y2 - (∑ y)2 ]

Where:

r = Pearson r correlation coefficient

n = number of value in each data set

∑ xy = sum of the products of paired scores

∑x = sum of x scores

∑y = sum of y scores

∑ x2 = sum of squared x scores

∑ y2 = sum of squared y scores

 25

Table 3. The Pearson r correlation interpretation

RANGE VERBAL INTERPRETATION

± 1.00 Perfect Correlation

± 0.80 - ± 0.99 High Correlation

± 0.60 - ± 0.79 Moderate High Correlation

± 0.40 - ± 0.59 Moderate Correlation

± 0.30 - ± 0.39 Low Correlation

± 0.01 - ± 0.29 Negligible Correlation

 26

RESULTS AND DISCUSSION

This chapters contains the analysis, presentation, interpretations and

implications of the findings provided by the respondents of the study. The problem

raised in the study were sequentially answered in this chapter.

Socio-Demographic Profile of the Respondents

The demographic profile of the respondents includes the age, the sex,

monthly income/ allowance and the educational attainment as presented in the tables

below.

Table 4. Socio-demographic profile of the respondents in terms of age

AGE FREQUENCY PERCENTAGE
18 - 25 years old 65 65
26 - 30 years old 15 15
31 - 35 years old 7 7
36 - 40 years old 6 6
41years old and above 7 7

TOTAL 100 100

Age

Table 1 shows the distribution of respondents in terms of age which ranged

from 18 to 40 years old and above. The highest number of respondents was from

age 18-25 years old which comprised (65%) of the total number of respondents; 26-

30 years old which comprised (15%); 31-35 years old

which comprised (7%); 36-40 years old which comprised (6%); and 41 years old and

above which comprised (7%).

Results showed that the largest numbers of respondents surveyed were from

ages 18-25 years old. It was supported, the national sales manager for Counter

Culture Coffee, even if younger years were not consuming more coffee than other
 27

age groups, they were spending more for coffee as opposed to others. Unlike the

older generation who spent their money on other needs such as transportation and

clothes, younger years were free to spend their money on a “better food and

beverage experience,” (Gay, 2016).

It implied that most of the Coffee Bean and Tea Leaf drinkers are those

people whose ranged from 18-25 years old. It was because younger years were free

to spend their money on the things they want.

Table 5. Socio-demographic profile of the respondents in terms of sex

SEX FREQUENCY PERCENTAGE

Male 40 40
Female 60 60

TOTAL 100 100

Sex

There were 100 Coffee Bean and Tea Leaf drinkers were classified as

respondents of the study. Among them, (60%) were female and for (40 %) were

male.

Results showed that most of the Coffee Bean and Tea Leaf drinkers were

female. This is supported by Jeavons (2015), that more men drank coffee than

women. However, it was the women who were more willing to pay for coffee.

It implied that a woman had a greater drinker of coffee because women are

the one willing to pay for coffee. It also helps them to aid fat burning, and it less

depression in women.
 28

Table 6. Socio-demographic profile of the respondents in terms of Monthly Income

MONTHLY INCOME FREQUENCY PERCENTAGE

Below 5,000 54 54
5,001 - 10,000 22 22
10,001 - 15,000 12 12
15,001 - 20,000 4 4
20,001 and above 8 8
TOTAL 100 100

Monthly Income/Allowance

Out of (100) respondents of the study, (54%) of the total respondents had an

average monthly income/allowance ranged below Php 5,000 (22%) had an average

monthly income/allowance of (Php 5,001-10,000), (12%) had an average monthly

income/allowance of (Php 10,001-15,000), (4%) had an average monthly

income/allowance of fifteen thousand one to twenty thousand (Php 15,001-20,000);

and (8%) had an average monthly income/allowance (20,001 and above).

Results showed that most of the Coffee Bean and Tea Leaf drinkers were

individuals whose average monthly income of (below Php 5,000). According to a

research, students (or 18-24 years old) might not be the age group with the most

pocket money but they are really avid spenders. This age group is very important for

several reasons, they hold a huge buying power and they are very influential among

other age groups. Moreover, students are also more likely to go out more and

socialize, leading them to purchase beverages (coffee, tea, soft drinks, etc) while out,

as well as grab snacks and ready meals from their local cafes and restaurant (Loyalli,

2013).

It implied that customers of Coffee Bean and Tea Leaf had enough

income/allowance buy coffee in the coffee shop, they would able to buy in coffee

shop because of their capacity due to the income/allowance they have.

 29

Table 7. Socio-demographic profile of the respondents in terms of educational

attainment
EDUCATIONAL ATTAINMENT FREQUENCY PERCENTAGE

Secondary level 24 24
College Undergraduate 28 28
College Level 44 44
Master’s Degree with Units 3 3
Master’s Degree 1 1

TOTAL 100 100

Educational Attainment

Out of one hundred 100 respondents of the study, (44%) were college level;

(28%) were college undergraduate; (24%) were secondary level; three percent (3%)

were master’s degree with units and (1%) were master’s degree.

Ramirez, (2012) stated International Coffee Chain is where students like to

pay a visit the most nowadays as stated previously because studying and

socialization get done there. Visitation to these International Coffee Chains has

become one of their daily schedules. As mentioned previously, it is more likely to

become their norm of visiting to the coffee chains even late evening of the day.

It implied that most of the Coffee Bean and Tea Leaf drinkers are students

who choose to visit coffee shops because coffee bean and tea leaf offer a more laid

back atmosphere to students, that they enjoy running into people they know, they

find perfect place for studying and meeting friends or hanging out with workmates.
 30

Determinants of Customer Retention on Service Quality Dimension

Table 8. Determinants of customer retention on service quality dimension in terms of

tangible
VERBAL
INDICATORS WEIGHTED MEAN
INTERPRETATION
1. Availability of clean physical
3.71 Strongly Agree
facilities (tables, lounges etc.)

2. Staff dressed presentable 3.71 Strongly Agree

3. Strategically located in a good

environment 3.60 Strongly Agree

GENERAL WEIGHTED MEAN 3.67 STRONGLY AGREE

Tangible

The respondents strongly agreed with determinants of customer retention on

service quality in terms of tangible with a general weighted mean of 3.67. It had a

verbal interpretation of strongly agree. The computed weighted mean for the indicator

“Availability of clean physical facilities (tables, lounges etc.)” and “Staff dressed

presentable” got the highest weighted mean of 3.71. On the other hand, the third

indicator “Strategically located in a good environment” had the lowest weighted mean

of 3.60.

It was supported Wilson et al, (2008) stated that representing the service

physically. Companies should provide physical representations or images of their

service that customers will use to evaluate quality, to enhance image and provide

continuity and signal quality. Most companies would however, combine this

dimension with another dimension to create a service quality strategy.

Place and convenient to travel. It is very important. According to research by

Somsakul Nirandonchai (BE2554), the behavior of choosing stand-alone

coffee shop in Bangkok metropolitan area. Chiang Mai found that the place featured

a high level of respect. The suitability of the location and the ease of travel.
 31

It implied that coffee shop drinkers tend to patronage Coffee Bean and Tea

Leaf because of its physical facilities and strategically location. Customers may tend

to go back when they feel comfortable environment.

Table 9. Summary distribution on the determinants of customer retention on service

quality dimension in terms of tangible
LEVEL OF AGREEMENT FREQUENCY PERCENTAGE

Strongly Agree 92 92
Agree 8 8

TOTAL 100 100

Table 9 shows the summary distribution on the determinants of customer

retention on service quality dimension in terms of tangible. For Coffee Bean and Tea

Leaf, out of 100 respondents 92 percent were strongly agreed which had the highest

frequency and 8 percent.

As stated Parasuraman et al (1988). The appropriate and attractive physical

facilities and the equipment of an organization will attract customers as customers

will feel comfortable and willing to spend more on a place that can provide a good

ambience. Meanwhile, appearance of personnel is important because employees are

the people who represent the whole organization to provide services directly to

customers

It implied customer physical facilities and the equipment of Coffee Bean

and Tea Leaf are very essential to attract customer. Customers tend to spend more

time when they feel comfortable on the place. Also, customer tend to come back

when they see the staffs dressed presentably.

 32

Table 10. Determinants of customer retention on service quality dimension in terms

of reliability
VERBAL
INDICATORS WEIGHTED MEAN
INTERPRETATION
1. Service is completed as
3.51 Strongly Agree
promise time

2. Accuracy of billing (payment) 3.35 Strongly Agree

3. Correct record keeping 3.39 Strongly Agree

GENERAL WEIGHTED MEAN 3.42 STRONGLY AGREE

Reliability

In terms of reliability as shown in table 10, the determinants of customer

retention on service quality has a verbal interpretation of strongly agree and a

general weighted mean of 3.42. The indicator “Service is completed as promise time”

has the highest weighted mean of 3.51 and the indicator “Accuracy of billing

(payment) has the lowest weighted mean of 3.35.

As stated by (Ahmad et al., 2008), the key concept behind reliability includes

dependability and accuracy of the service provided. As what the employees promise

to deliver, the service has to be delivered to meet the expectation of customers. It is

difficult to determine whether or not the service is reliable, unless the customer

relationship extends over some period of time.

It implied that an exact product or service serve and timely response to

customers are important because it determine the reliability of service quality

provided by Coffee Bean and Tea Leaf.

 33

Table 11. Summary distribution on the determinants of customer retention on service

quality dimension in terms of Reliability

LEVEL OF AGREEMENT FREQUENCY PERCENTAGE

Strongly Agree 74 74
Agree 26 26

TOTAL 100 100

Table 11 shows the summary distribution on the determinants of customer

retention on service quality dimension in terms of reliability. For Coffee Bean and Tea

Leaf, out of 100 respondents, 74 percent were strongly agreed and 26 percent

agreed.

As stated Armstrong, (2012), providing a good service, a company and its

staff should be ready to respond the consumer’s queries about products and services

offered, timely responses to request, is one of the customer’s expectation.

It implied that the ability to perform the promised service dependably and

accurately or delivering on its promises by the Coffee Bean and Tea Leaf.

Table 12. Determinants of customer retention on service quality dimension in terms

of assurance
WEIGHTED VERBAL
INDICATORS
MEAN INTERPRETATION

1. Courtesy of service staff 3.60 Strongly Agree

2. Provides customer feedback on

3.41 Strongly Agree
services
3. Operates on the best time scale
3.41 Strongly Agree
for customers

GENERAL WEIGHTED MEAN 3.47 STRONGLY AGREE

 34

Assurance

In terms of assurance as shown in table 12, the determinants of customer

retention on service quality had a verbal interpretation of strongly agree and a

general weighted mean of 3.47. The indicator “courtesy of service staff” had the

highest weighted mean of 3.60 and the indicator “provides customer feedback on

service” and “Operates on the best time scale” had the same weighted mean of 3.41.

Trust is important to build relationship over time. With trust, this will build

customers’ loyalty as they are satisfied on the services and lead to continuous

purchase intention. When employees promise to serve the beverage to customer in

three minutes, workers should hold their promise and serve it at the right time. Some

customers are impatient, if the beverage that they order does not serve on time,

customers will just cancel their order and leave the coffee shop. Thus, assurance is

important in service quality. (Tan, Oriade & Fallon 2014).

In addition, Assurance dimension in service quality is also defined as the

service personnel with professional knowledge and etiquette to make the customers

feel trust and calm (Huang et al., 2014). It is the responsibility of the employees to

make the customers to trust them and make them calm without giving much trouble

or problem to customers. Likewise, assurance is the politeness, respect and

friendliness of employees, feeling of delight and satisfaction, ability for action at

critical time and trustworthiness and honesty of the service provider (Vijayadurai,

2008). It is important to fulfill the needs of customers and make them to have a sense

of belonging having business contact with the service provider

It implied that Coffee Bean and Tea Leaf staff must possess adequate

knowledge especially the knowledge on coffee itself as well as understand

customer’s needs and wants as customers might have different taste and preference

from each other. Also making a customer satisfaction and meet the standards Coffee

Bean and Tea Leaf can built customers trust and loyalty to the store. It also important
 35

to built a strong relationship between the staffs and the customers for them also to

feel like they always welcome.

Table 13. Summary distribution on the determinants of customer retention on service

quality dimension in terms of Assurance

LEVEL OF AGREEMENT FREQUENCY PERCENTAGE

Strongly Agree 81 81
Agree 19 19

TOTAL 100 100

Table 13 shows the summary distribution on the determinants of

customer retention on service quality dimension in terms of assurance. For Coffee

Bean and Tea, out of 100 respondents, 81 percent strongly agreed and 19 percent

agreed.

Assurance is basically courtesy, competence, credibility; security of the

firm employees gives to its customer. Parasuraman et al. (1985) interpreted (AS) as

ionformation to have cordiality of workers and their capability to motivate confidence

and trust. If company’s representatives provide genuine and caring service,

customers would want to do business (Zekiri & Angelova, 2011).

It implied that customer tend to come back if they are satisfied with the

courtesy of the services staffs and when they feel that to provide customers

feedbacks and inquiries towards services and products is the top priority of Coffee

Bean and Tea Leaf. Also they always assured that they do the services well so that

customers may feel that the store take care the customers of Coffee Bean and Tea

Leaf.
 36

Table 14. Determinants of customer retention on service quality dimension in terms

of responsiveness
WEIGHTED VERBAL
INDICATORS
MEAN INTERPRETATION
1. Timely response to customer
3.34 Strongly Agree
inquiry (online, telephone)
2. Have the standard on services
3.52 Strongly Agree
offered
3. The staffs could be able to solve
the customer’s complaint(s) 3.41 Strongly Agree
immediately

GENERAL WEIGHTED MEAN 3.42 STRONGLY AGREE

Responsiveness

In terms of responsiveness as shown in table 14, the determinants of

customer retention on service quality had a verbal interpretation of strongly agree

and a general weighted mean of 3.42. The indicator “Have the standard on services

offered” had the highest weighted mean of 3.52 and the indicator “Timely response to

customer inquiry (online, telephone)” had the lowest weighted mean of 3.34.

Witkowska et al. (2014) described responsiveness as how the employees

respond to the customers’ request or their willingness to help and the ability to

provide services efficiently and on time. The additional explanations on

responsiveness include the employees telling customers exactly when the services

will be performed and give customers the shortest waiting time or fastest service

turnaround (Ahmad et al., 2008). The promise given to the customers will eventually

make them happy and they tend to be more willing to wait.

It implied that the importance of responsiveness in solving the customers’

problems is to turn angry customers into satisfied ones. Giving them extra services

so that while waiting for their service they will not get bored.
 37

Table 15. Summary distribution on the determinants of customer retention on service

quality dimension in terms of responsiveness

LEVEL OF AGREEMENT FREQUENCY PERCENTAGE

Strongly Agree 79 79
Agree 19 19
Disagree 2 2

TOTAL 100 100

Table 15 shows the summary distribution on the determinants of customer

retention on service quality dimension in terms of responsiveness. For Coffee Bean

and Tea Leaf, out of 100 respondents, 79 percent were strongly agreed, 19 percent

agreed and 2 percent disagreed.

Armstrong (2012), the readiness or willingness of workers to give benefits or

immediate response to the customer need. Offer quick service and willingness to

give assistance to the customer, to provide service in a timely manner.

It implied that customer tend to come back of Coffee Bean and Tea Leaf

staffs able to response with the customers complaints, meet the standard services

and they needs and wants of the customers so that they able to give the product on

their promise time. Responding on time to customers inquiry and needs are very

essential to retain customers

 38

Table 16. Determinants of customer retention on service quality dimension in terms

of empathy
WEIGHTED VERBAL
INDICATORS
MEAN INTERPRETATION
1. Creating a strong relationship to
3.58 Strongly Agree
the customers

2. Friendly coffee bean staffs 3.62 Strongly Agree

3. Understanding customer’s wants 3.50 Strongly Agree

GENERAL WEIGHTED MEAN 3.57 STRONGLY AGREE

Empathy

In terms of empathy as shown in table 16, the determinants of customer

retention on service quality had a verbal interpretation of strongly agree and a

general weighted mean of 3.57. The indicator “Friendly coffee bean staffs” had the

highest weighted mean of 3.62 and the indicator “Understanding customer’s wants”

had the lowest weighted of 3.50

Based on Irshad (2012) described empathy as employees treating

customers individually by stepping into their shoes. The idea behind is to truly

understand how customers feel and what they really need. Empathy regards to

attention given by employees to customers and ability of employees to handle and

offer services that indicate good quality of service.

It implied that Coffee Bean and Tea Leaf must give full attention when

customers are placing their orders and be sympathetic and reassure if something

goes wrong so that problems can be solved as quickly as possible without hearing

complaints and negatives feedback to Coffee Bean and Tea Leaf.

 39

Table 17. Summary distribution on the determinants of customer retention on service

quality dimension in terms of empathy
LEVEL OF AGREEMENT FREQUENCY PERCENTAGE

Strongly Agree 87 87
Agree 13 13
TOTAL 100 100

Table 17 shows the summary distribution on the determinants of customer

retention on service quality dimension in terms of empathy. For Coffee Bean and Tea

Leaf, out of 100 respondents, 87 percent were stongly agreed and 13 percent

agreed.

As stated Parasaruman et al., (2000),the staffs pay attention to the customer

and make sure they treat each customer confidentially and provide relevant answers

when they inquire anything. It provides individual attention and care to their

customer.

It implied that building relationship with the customer are very essential in

Coffee Bean and Tea Teaf. Customer are into how coffee shop treat their customers

right and how they provide customer’s wants so that the customers may feel that the

staffs are giving their full attention to the customers of Coffee Bean and Tea Leaf.
 40

Table 18. Summary of service quality dimension of Coffee Bean and Tea Leaf
drinkers in Bacoor City, Cavite.
WEIGHTED
INDICATOR VERBAL INTERPRETION
MEAN
Tangible 3.67 Strongly Agree

Reliability 3.42 Strongly Agree

Assurance 3.47 Strongly Agree

Responsiveness 3.42 Strongly Agree

Empathy 3.57 Strongly Agree

Table 18 shows the summary of service quality dimension of Coffee Bean

and Tea Leaf drinkers in Bacoor City. Among the five service quality dimension,

tangible had only a significance relationship between service quality dimesion among

coffee bean and tea leaf drinkers with weighted mean of 3.67. It revealed that

tangible was a strong motivator of customer choice on service quality dimension.

Level of Customer Satisfaction

Table 19. Level of customer satisfaction in terms of value of service quality or

product quality
VERBAL
INDICATORS WEIGHTED MEAN
INTERPRETATION

1. Provides efficient service. 3.56 Very Satisfied

2. Service is worthy of the price 3.51 Very Satisfied

3. Competitive customer service. 3.41 Very Satisfied

GENERAL WEIGHTED MEAN 3.49 VERY SATISFIED

Value of Service Quality or Product Quality

Table 18 presents assessment on the level of customer satisfaction in terms

of value of service or product quality with a general weighted mean of 3.49 and
 41

verbal interpretation of very satisfied. It means that the Coffee Bean and Tea Leaf

drinkers were very highly satisfied in terms of value of service or product quality

given by the coffee bean and tea leaf. Result revealed that Coffee Bean and Tea

Leaf drinkers purchase Coffee Bean and Tea Leaf because it provided efficient

service. The indicator have a general weighted mean of 3.56. This is much higher

than the second and third indicator’s weighted mean of 3.51 and 3.41.

According to Ksenia, (2013) they emphasized on the leading role of customer

satisfaction and productivity for the company’s success. Their research probably

stresses that “companies need to excel in both customer satisfaction and

productivity.” In other words, which is in “quality” and “quantity”, in order to gain

business growth, positive word of mouth about the company, and as an increase in

the company’s overall profitability and image). Ultimately, Kornik (2006) mentioned

that companies are established to serve customers. Nevertheless, Bakti and

Sumaedi (2013); Clemes (2008); Shin and Elliott (2001), five of these researchers

agreed that a business must satisfy customers in order to be successful and

profitable in the future because this is a general accepted philosophy.

It implied that in accordance to satisfy customers, Coffee Bean and Tea Leaf

must maintain the value of service and quality of products they offer. Customers are

into the efficiency of services that Coffee Bean provides.

Table 20. Summary distribution on the level of customer satisfaction in terms of

value of service quality or product quality
SATISFACTION LEVEL FREQUENCY PERCENTAGE

Very Satisfied 91 91
Satisfied 8 8
Dissatisfied 1 1

TOTAL 100 100

 42

Tables 19 shows the summary distribution on the level of customer

satisfaction in terms of value of service quality or product quality. For Coffee Bean

and Tea Leaf, out of 100 respondents, 91 percent were very satisfied which had the

highest, 8 percent satisfied and 1 percent dissatisfied.

As mentioned by Wu et al. (2014), if the service quality is good, customers

tend to have a favourable behavioral intention, and vice versa. Without a

intermediaries, the quality of the service can influence the intention of customers

coming back.

It implies that customers are into the quality of services and product provided

by coffee bean and tea leaf. Customers tend to come back if they are satisfied with

the services and product quality.

Table 21.Level of customer satisfaction in terms of customer emotion

VERBAL
INDICATORS WEIGHTED MEAN
INTERPRETATION
1. Pleasing customers is their
3.52 Very Satisfied
top priority.
2. Coffee Bean personnel are
3.53 Very Satisfied
courteous.
3. Ambiance of the store is
3.62 Very Satisfied
relaxing.

GENERAL WEIGHTED MEAN 3.56 VERY SATISFIED

Customer emotion

In terms of customer emotion as stated at table 20, the level of customer

satisfaction had a verbal interpretation of very satisfied and had a general weighted

mean of 3.56. The first indicator “Pleasing customer is their top priority” had the

lowest weighted mean of 3.52. The highest weighted mean of 3.62 was “Ambiance of

the store is relaxing”.

 43

The elements that can be discussed in ambience are colors, background

music, aroma and temperature. Some of the marketers overlook on providing a good

ambience to customers in coffee shop. They might apply unsuitable color concept in

painting their coffee shop or unmatched background music. Furthermore, in order to

cut cost, they may not switch on all the air conditioner and lead to increase

temperature in coffee shop. Customers will feel uncomfortable with the surrounding

and will just leave the coffee shop. Therefore, all elements that are related to

ambience plays important role in satisfying customers (Ryu & Jang, 2007).

However, coffee quality or flavors are no longer the most important factor in

attracting customers anymore. Many people are now choosing the coffee shop

because of the ambience and people are less likely to enjoy a cup of coffee in a

crowded local coffee shop. As what Ponte (2002) said, the coffee chains nowadays

sell an ambience and a social positioning more than just good coffee.

It implied that coffee shop provides a good environment that customers feel

relaxed and comfortable, customers would be satisfied andwouldl always want to visit

the same coffee shop again.

Table 22. Summary distribution on the level of customer satisfaction in terms of

customer emotion
SATISFACTION LEVEL FREQUENCY PERCENTAGE

Very Satisfied 91 91
Satisfied 9 9

TOTAL 100 100

Table 21 shows the summary distribution on the level of customer

satisfaction in terms of customer emotion. For Coffee Bean and Tea Leaf, out of 100

respondents, 91 percent were very satisfied and 9 percent satisfied.

Stated Wall and Berry (2007) pointed out the longer the customer spent time

in the coffee shop, the more influential the environment would be. For instance the
 44

time spending of the customer in particular store would influence their purchasing

and satisfaction level with the store.

It implied that customer tend to come back to repurcahased if they are

satisfied with the products and services redered by the business. Coffee Bean and

Tea Leaf personnel make sure that their customer is their top priority and also they

are satisfied with the surroundings or the ambiance to make them comfortable.

Table 23. Level of customer satisfaction in terms of Perception of equality and fair
treatment
VERBAL
INDICATORS WEIGHTED MEAN
INTERPRETATION
1. Shows equal treatment to their
3.59 Very Satisfied
customers
2. Speedy response to customers
3.48 Very Satisfied
complaint and needs

3. Gender sensitive. 3.47 Very Satisfied

GENERAL WEIGHTED MEAN 3.51 VERY SATISFIED

Perception of Equality and Fair Treatment

In terms of perception of equality and fair treatment as stated at table 22, the

level of customer satisfaction had a verbal interpretation of very satisfied and had a

general weighted mean of 3.51. The highest weighted mean of 3.59 was “Shows

equal treatment to their customer”. The third indicator “Gender sensitive” had the

lowest weighted mean of 3.47

Most of the coffee shops offer self-service where customers have to approach

to counter and place order before they find their seats. Hence, there is no service tax

charge on customers. However, it is still responsible for an employee to serve their

customers well. Some employees focus more on taking order from customer, but

overlook on other job scope. For example, they will be unwilling when customers ask

to clean the table. This will make customers feel disappointed on the service

provided by the particular coffee shop. Moreover, when customers enter the coffee
 45

shop and the tables are left unclean for some times, some of customers will just

leave and go to another coffee shop, (Shaikh & Khan ,2011)

It implied that fair and equal treatment towards customers are very essential

factor in considering customer satisfaction. Customers must be treated equally and

no gender bias.

Table 24. Summary distribution on the level of customer satisfaction in terms of

perception of equality and fair treatment
SATISFACTION LEVEL FREQUENCY PERCENTAGE

Very Satisfied 85 85
Satisfied 15 15

TOTAL 100 100

Table 23 shows the summary distribution on the level of customer satisfaction

in terms of perception of equality and fair treatment. For Coffee Bean and Tea Leaf,

out of 100 respondents, 85 percent were very satisfied and 15 percent satisfied.

As stated by Tao (2014), provide company benefits like customer loyalty,

extending the life cycle of a customer expanding the life merchandise the customer

purchase and increases customer positive of mouth communication. When the

customer is satisfied with the product or service of the company, it can make the

customer to purchase frequently and to recommend products or services to potential

customer.

It implied that customers are into how Coffee bean and Tea Leaf staffs treat

each customers right. It is very essential in every business to have fair and equal

treatment towards the customers. Customers could retain if they are satisfied with the

products and services provided by Coffee Bean and Tea Leaf.

 46

Extent of Customer Retention Among Coffee Bean and Tea Leaf Drinkers

Table 25. Extent of customer retention among coffee bean and tea leaf drinkers
WEIGHTED VERBAL
INDICATORS
MEAN INTERPRETATION
1. I am satisfied with the product
and service of Coffee Bean and 3.75 Strongly Agree
Tea Leaf.
2. I consider Coffee Bean and Tea
leaf because of its reliability and 3.56 Strongly Agree
integrity.
3. I find their products and services
3.43 Strongly Agree
worthy of its price.
4. I have no plan of switching to
3.19 Strongly Agree
other coffee shops.

5. I intend to stay as loyal customer 3.30 Strongly Agree

of Coffee Bean and Tea Leaf.
GENERAL WEIGHTED MEAN 3.45 STRONGLY AGREE

Presented in table 24 is the respondent’s assessment on the extent of

customer retention among Coffee Bean and Tea Leaf drinkers with a general

weighted mean of 3.45 and verbal interpretation of strongly agree. It means that the

Coffee Bean and Tea Leaf drinkers were very highly satisfied in terms of extent of

customer retention given by the Coffee Bean and Tea Leaf. Result reveal that Coffee

Bean and Tea Leaf drinkers purchase because they were satisfied with the product

and service. The indicator had a general weighted mean of 3.75. It was much higher

than the remaining indicators.

Customers are important in the business world in any industries. Customer

satisfaction plays a critical role in any markets. The moment when customers are

happy and satisfied, most probably they will repeat their purchase or visit the coffee

shop again. It is because they do not have to worry that the particular product or

service will disappoint them as they have confidence towards it and believe that the

coffee shop will still provide the same standard of quality to customers. When

customer expectation is met, customer will continue to visit the coffee chain and this
 47

will help to increase profitability of company. Thus, customer satisfaction plays an

important role in purchase intention as satisfaction affect future purchase

probabilities (Oliver, 2010).

It implied the customers of Coffee Bean and Tea Leaf is satisfied with the

product and services the customers be intend to stay as loyal customer.

Table 26. Summary distribution on the extent of customer retention among Coffee
Bean and Tea Leaf

LEVEL OF AGREEMENT FREQUENCY PERCENTAGE

Strongly Agree 73 73
Agree 27 27

TOTAL 100 100

Table 25 shows the summary distribution on the extent of customer retention

among coffee bean and tea leaf drinkers. For Coffee Bean and Tea Leaf, out of 100

respondents, 73 percent are strongly agreed and 27 percent agreed.

Ranaweera and Prabhu (2003), drafted a holistic approach examine the

combined effects of satisfaction, trust and swithing barriers on custome retention.

The authors defined customer retention as the for customer to stay with their

services providers.

It implied that customers are into satisfaction with the product and service

quality rendered by Coffee Bean and Tea Leaf to be able to retain customers and

vice versa. It is very essential in meeting customer satisfaction, trust, and to know the

potention switching barriers.

 48

Relationship between service quality and customer retention among coffee

bean and tea leaf drinkers in Bacoor City, Cavite

Table 27. Relationship between service quality and customer retention among Coffee
Bean and Tea Leaf drinkers in Bacoor City, Cavite
SERVICE
R-STATISTIC P-VALUE DECISION INTERPRETATION
QUALITY
Tangible 0.269 0.007 Reject Ho Significant

Reliability 0.090 0.372 Accept Ho Not Significant

Assurance 0.052 0.608 Accept Ho Not Significant

Responsiveness -0.078 0.439 Accept Ho Not Significant

Empathy 0.091 0.368 Accept Ho Not Significant

Note: Level of significance (α=0.05)

Decision: If p-value <0.05, then Reject the null hypothesis (Ho), otherwise, accept Ho.

Data analysis showed that the R-Statistics of 0.269 for the relationship

between service quality and customer retention among Coffee Bean and Tea Leaf

drinkers in Bacoor City, Cavite in terms of tangible with the probability value of 0.007

which was less than 0.05 level of significance. Thus, the null hypothesis had a

significant relationship between service quality and customer retention among Coffee

Bean and Tea Leaf drinkers in bacoor city, cavite was rejected. Therefore, there was

significant relationship between service quality and customer retention in terms of

tangible.

Among the five service quality dimension, tangible was the only significant

relationship among Coffee Bean and Tea Leaf. Data showed that reliability, empathy,

assurance and responsiveness has no significant relationship between service

quality and customer retention among Coffee Bean and Tea Leaf.

As stated by Parasuman et,al (1999), the appropriate and attractive physical

facilities and the equipment of an organization will attract customers as customers

will feel comfortable and willing to spend more on a place that can provide a good
 49

ambience. Meanwhile, appearance of personnel is important because employees are

the people who represent the whole organization to provide services directly to

customers. They are in the front line and thus, professional attire is required to give a

good impression to customers,

It implied that there was a relationship between service quality and customer

retention in terms of tangible. Thus, in the study appearance of Coffee Bean and Tea

Leaf staffs, physical facilities and equipment and strategically located in a good

environment were very much important to gain customer retention.

Significant Relationship between customer satisfaction and customer retention

among Coffee Bean and Tea Leaf Drinkers in Bacoor City, Cavite

Table 27. Relationship between customer satisfaction and customer retention among
Coffee Bean and Tea Leaf drinkers in Bacoor City, Cavite
CUSTOMER
R-STATISTIC P-VALUE DECISION INTERPRETATION
SATISFACTION
Value of service
-0.047 0.643 Accept Ho Not Significant
quality
Customer
-0.046 0.648 Accept Ho Not Significant
emotion
Perception of
equality and fair 0.097 0.339 Accept Ho Not Significant
treatment
Note: Level of significance (α=0.05)
Decision: If p-value <0.05, then Reject the null hypothesis (Ho), otherwise, accept Ho.

Value of Service or Product Quality

Data analysis showed that the R-Statistic of -0.047 for the relationship

between customer satisfaction and customer retention among Coffee Bean and Tea

Leaf drinkers in Bacoor City, Cavite in terms of value of service or product quality

with the probability value of 0.643 which was greater than 0.05 level of significance.

Thus, the null hypothesis had a significant relationship between customer satisfaction

and customer retention among Coffee Bean and Tea Leaf drinkers in Bacoor City,

Cavite was accepted. Therefore, there was no relationship between customer

satifaction and customer retention in terms of value of service or product value.

 50

Customers will be satisfied if the product or service above demands or

expectation. On the other hand, if the product or service below demands or

expection,customer will be dissatified (Schmitt 2003). One certain product or service

may satisfy a customer may not satisfy another customer.

The difference in product quality level causes consumers to be diverse in

purchasing choices (Farris, Neil, Bendle, Pfeife, & Reibstein, 2010; Slotegraaf &

Inman, 2004). In contrast, regardless of cost, poor quality makes consumers dislike

the product (Campbell & Frei, 2010; Clark, 1996; Terpstra & Verbeeten, 2014).

Hence, high product quality is inseparable from benefits associated with product

costs that do not minimize product safety attributes to consumer satisfaction

associated with product safety (Golderet et al., 2012). On the topic of unsafe product,

McManus (2009) posited that firms assume that the problems of defective products

are the root cause of unsafe conditions as opposed to unsafe production processes.

Producers become cynical enough to think that consumers have no significant role in

affecting the quality of the products (Saleh, 2008; Venters, 2004)

It implied that there was no significant relationship between customer

satisfaction and customer retention among Coffee Bean and Tea Leaf in terms of

value of service and product quality. If the customers were not satisfied with the

service or product quality, customer would not retain to that specific coffee shop.

Customer Emotion

Data analysis showed that the R-Statistic of -0.046 for the relationship

between customer satisfaction and customer retention among Coffee Bean and Tea

Leaf drinkers in Bacoor City, Cavite in terms of customer emotion was less than the

probability value of 0.648 at 5 percent level of significance. Thus, the null hypothesis

had a significant relationship between customer satisfaction and customer retention

among Coffee Bean and Tea Leaf drinkers in Bacoor City, Cavite was accepted.
 51

Therefore, there was no relationship between customer satifaction and customer

retention in terms of customer emotion.

They were willing to spend an amount of time if they were satisfied of the

physical surroundings as well as it can influence positively in post-purchase

intentions. However, Wakefield and Blodgett (2010) mentioned that customers may

not come back to the particular restaurant or coffee shop if they were not satisfied

with the ambient conditions.

It implied that there was no significant relationship between customer

satisfation and customer retention among Coffee Bean and Tea Leaf drinkers in

terms of customer emotion. Customers are into physical factors such as ambiance of

the store so if they are not satisfied with it, customer might not revisit or repurchased

product or services.

Perception of Equality and Fair Treatment

Data analysis showed that the R-Statistic of 0.097 for the relationship

between customer satisfaction and customer retention among Coffee Bean and Tea

leaf drinkers in Bacoor City, Cavite in terms of perception of equality and fair

treatment was less than the probability value of 0.339 at 5 percent level of

significance. Thus, the null hypothesis had a significant relationship between

customer satisfaction and customer retention among Coffee Bean and Tea Leaf

drinkers in Bacoor City, Cavite was accepted. Therefore, there was no relationship

between customer satifaction and scustomer retention in terms of perception of

equality and fair treatment.

Customers will be satisfied if the product or service above demands or

expectation. On the other hand, if the product or service below demands or

expection,customer will be dissatified (Schmitt, 2013). One certain product or service

may satisfy a customer may not satisfy another customer.

 52

It implied that there was no significant relationship between customer

satisfaction and customer retention among Coffee Bean and Tea Leaf drinkers in

terms of perceptionof equality and fair treatment. If the customers were not satisfied

with the service or product quality, customer would not retain to that specific coffee

shop.
 53

SUMMARY, CONCLUSION, AND RECOMMENDATION

Summary

This chapter summarizes the study undertaken by the researchers, included

in this chapter are the summary, conclusion, and recommendations formulated by the

researchers.

This research was conducted to determine the service quality and customer

satisfaction as determinants of customer retention among Coffee Bean and Tea Leaf

drinkers in Bacoor City, Cavite. Specially, it aimed to determine the socio-

demographic profile of the respondents, determinants of customer retention on

service quality dimension; level of customer satisfaction; extent of customer

retention among Coffee Bean and Tea Leaf drinkers. The study also aimed to find

out the significant relationship between service quality and customer retention

among Coffee Bean and Tea Leaf drinkers in Bacoor and significant relationship

between customer satisfaction and customer retention among Coffee Bean and Tea

Leaf drinkers in Bacoor.

The researchers identified100 respondents which were the Coffee Bean and

Tea Leaf drinkers are utilized descriptive survey method. The study conducted from

January- March 2019 was limited to the Coffee Bean and Tea Leaf drinkers. The

researchers employed purposive method in the respondents.The researchers made

use of the percentage to describe the demographic profile of respondents in terms of

age, sex, monthly income/ allowance, and educational attainment. The weighted

mean was used to determine the categorical responses of the respondents of the five

service quality in terms of tangible, reliability, assurance, responsiveness, and

empathy. The three customer satisfaction level in terms of value of service quality or

product quality, customer emotion, perception of equality and fair treatment. The

pearson r was used to determine the significant relationships of service quality and
 54

customer satisfaction and customer retention among Coffee Bean and Tea Leaf

drinkers

The study revealed the following:

The socio-demographic profile of respondents in terms of age, revealed that

the age of Coffee Bean and Tea Leaf drinkers were 18-25 equal to (65%) of the

respondents. Also, 26-30 had (15%), 31-35 had (7%), 36-40 (6%), and 41 and above

had (7%). It implied that younger years were free to spend their money on the things

they wanted. In terms of sex, study revealed the percentage of female are 60

percentand male were 40 percent. It implied that majority of the respondents of

coffee bean and tea leaf drinkers are female. In terms of monthly income/allowance,

the study revealed the monthly income/allowance of Coffee Bean and Tea Leaf

drinkers were below Php 5,000 with (54%), Php 5,001- 10,000 with (22%), Php

10,001- 15,000 with (12%), Php 15,001- 20,000 with (4%), and Php 20,001 and

above were (8%). It implied that respondents had enough income to purchase coffee

in coffee bean and tea leaf. In terms of educational attainment, the study revealed

the educational attainment of coffee bean and tea leaf drinkers were college level

with (44%), college undergraduate with (28%), secondary level with (24%), masters

degree with units with (3%), and masters degree with (1%).

Determinants of customer retention on service quality dimensions among

Coffee Bean and Tea Leaf drinkers in terms of tangible, the study revealed that

determinants of customer retention on service quality among Coffee Bean and Tea

Leaf drinkers with a general weighted mean of 3.67 interpreted as “Strongly Agree”. It

implied that Coffee Bean and Tea Leaf drinkers were into physical facilities and

strategically location.

In terms of reliability, the study revealed that the determinants of customer

retention on service quality among Coffee Bean and Tea Leaf with a general

weighted mean of 3.42 interpreted as “Strongly Agree”. It implied that Coffee Bean

and Tea Leaf drinkers were into the service completed as promise time.
 55

In terms of assurance, the study revealed that the determinants of customer

retention on service quality among Coffee Bean and Tea Leaf with a general

weighted mean of 3.47 interpreted as “Strongly Agree”. It implied that Coffee Bean

and Tea Leaf drinkers are into the courtesy of service staff.

In terms of responsiveness, the study revealed that the determinants of

customer retention on service quality among Coffee Bean and Tea Leaf drinkers with

a general weighted mean of 3.42 interpreted as “Strongly Agree”. It implied that

Coffee Bean and Tea Leaf drinkers were into the standard on services offered.

In terms of empathy, the study revealed that the determinants of customer

retention on service quality among Coffee Bean and Tea Leaf with a general

weighted mean of 3.57 interpreted as “Strongly Agree”. It implied that Coffee Bean

and Tea Leaf drinkers were into friendly coffee bean staffs.

Level of customer satisfaction in terms of value of service or product quality,

the study revealed that the highest level under value of service or product quality

provided efficient service with a weighted mean of 3.56 respectively and verbal

interpretation of “Very Satisfied”. It also showed indicators like service was worthy of

the price and competitive customer service with weighted mean 3.51 and 3.41

respectively with verbal interpretation of ‘Very Satisfied”. It implied that efficiency of

service had a strong impact on the level of customer satisfaction in Coffee Bean and

Tea Leaf drinkers it was because customers wanted a high quality of service and

product itself.

In terms of customer emotion, the study revealed that the level of satisfaction

among Coffee Bean and Tea Leaf drinkers in terms of customer emotion was

generally interpreted as “Very satisfied” with composite weighted mean of 3.56. The

highest indicator under customer emotion were ambiance of the store were relaxing

with a weighted mean of 3.56 and verbal interpretation of “Very Satisfied”. It implied

that Coffee Bean and Tea Leaf drinkers were into good environment wherein they

can feel relax and comfortable.

 56

In terms of perception of quality and fair treatment, the study revealed that the

level of satisfaction in terms of perception of equality and fair treatment was generally

interpreted as “Very Satissfied” with compasite weighted mean of 3.51. the highest

indicator showed equal treatment to their customers with a weighted mean of 3.59

and verbal interpretation of “Very Satisfied”. Coffee Bean and Tea Leaf drinkers.

It implied that coffee bean and tea leaf drinkers were into equality of treatment

towards customers and staffs.

In terms of extent of customer retention among Coffee Bean and Tea Leaf

drinkers, study revealed that the highest indicator under extent of customer retention

were” I am satisfied with the product and service of Coffee Bean and Tea Leaf” with a

weighted mean of 3.75 respectively and verbal interpretation of “Strongly Agree”. It

also showed that I am satisfied with the product and service of Coffee Bean and Tea

Leaf, “I consider Coffee Bean anf Tea Lea because of its reliability and integrity”, “I

find their products and services worthy of its price”, “I intend to stay as loyal customer

of Coffee Bean and Tea Leaf”, “I have no plan to switching to other coffee shops. It

implied that they were satisfied with the product and servicesof the coffee bean and

tea leaf.

The study showed that the relationship between customer retention in service

quality in terms of tangible was greater than the probability of 0.007 at 5 percent level

of significance. Thus,the null hypothesis there had significant relationship between

service quality and customer retention in terms of tangible. On the other hand, data

analysis showed that the R-statistic of 0.090 for the relationship between service

quality and customer retention in terms of reliability was less than the probability

value of 0.372 at 5 percent level of significance. Thus, the null hypothesis had no

significant relationship between service quality and customer retention in terms of

reliability. Data analysis showed that the R-Statistic of 0.052 for the relationship

between service quality and customer retention among Coffee Bean and Tea Leaf

drinkers in Bacoor city, Cavite in terms of assurance was less than the probability
 57

value of 0.608 at 5 percent level of significance. Thus, the null hypothesis had a

significant relationship between service quality and customer retention among Coffee

Bean and Tea leaf drinkers in Bacoor City, Cavite was accepted. Therefore, there

was no relationship between service quality and customer retention in terms of

assurance. Data analysis showed that the R-Statistic of -0.078 for the relationship

between service quality and customer retention among Coffee Bean and Tea Leaf

drinkers in Bacoor City, Cavite in terms of responsiveness was less than the

probability value of 0.439 at 5 percent level of significance. Thus, the null hypothesis

had a significant relationship between service quality and customer retention among

Coffee Bean and Tea Leaf drinkers in Bacoor City, Cavite was accepted. Therefore,

there was no relationship between service quality and customer retention in terms of

responsiveness. Data analysis showed that the R-Statistic of 0.091 for the

relationship between service quality and customer retention among Coffee Bean and

Tea leaf drinkers in Bacoor City, Cavite in terms of empathy was less than the

probability value of 0.368 at 5 percent level of significance. Thus, the null hypothesis

had a significant relationship between service quality and customer retention among

Coffee Bean and Tea Leaf drinkers in Bacoor City, Cavite was accepted. Therefore,

there was no relationship between service quality and customer retention in terms of

empathy. It implied that assurance, reliability, responsiveness and empathy did not

have a significant relationship between service quality and customer retention among

Coffee Bean and Tea Leaf drinkers.

Study showed the relationship between customer satisfaction and customer

retention in terms of tangible showed that the R-Statistic of -0.047 for the

relationship between customer satisfaction and customer retention among Coffee

Bean and Tea Leaf drinkers in Bacoor City, Cavite in terms of value of service or

product quality was less than the probability value of 0.643 at 5 percent level of

significance. Thus, the null hypothesis had a significant relationship between

customer satisfaction and customer retention among Coffee Bean and Tea Leaf
 58

drinkers in Bacoor City, Cavite was accepted. Therefore there was no relationship

between customer satifaction and customer retention in terms of value of service or

product value. Data analysis showed that the R-Statistic of -0.046 for the relationship

between customer satisfaction and customer retention among Coffee Bean and Tea

Leaf drinkers in Bacoor City, Cavite in terms of customer emotion is less than the

probability value of 0.648 at 5 percent level of significance. Thus, the null hypothesis

had a significant relationship between customer satisfaction and customer retention

among Coffee Bean and Tea Leaf drinkers in Bacoor City, Cavite was accepted.

Therefore there was no relationship between customer satifaction and customer

retention in terms of customer emotion. Data analysis showed that the R-Statistic of

0.097 for the relationship between customer satisfaction and customer retention

among Coffee Bean and Tea Leaf drinkers in Bacoor City, Cavite in terms of

perception of equality and fair treatment was less than the prbability value of 0.339 at

5 percent level of significance. Thus, the null hypothesis had a significant relationship

between customer satisfaction and customer retention among Coffee Bean and Tea

Leaf drinkers in Bacoor City, Cavite was accepted. Therefore there was no

relationship between customer satifaction and customer retention in terms of

perception of equality and fair treatment. It implied that value of service or product

quality, customer emotion and perception of equality and fair treatment did not have

a significant relationship between customer satisfaction and customer retention

among Coffee Bean and Tea Leaf drinkers.

Conclusion

Based on the result of the study, the following conclusions were made:

1. The study showed the socio-demographical profile of the respondents and

their percentage. Most of the consumers that went in coffee bean and tea leaf

were female with age of 18-25 and with a monthly income of below 5,000
 59

pesos. It means that female with age of 18-25 enjoyed to have their coffee in

Coffee Bean and Tea Leaf than in their own houses.

2. The study also showed that the main factor that affected the determinants of

customer retention on service quality dimension among Coffee Bean and Tea

Leaf drinkers because the other indicators were not important to the customer

because they were the only place they want. Also, they are into physical

facilities, strategical location, and also they have a good service and a friendly

coffee bean staff.

3. The study showed that there was no significant relationship between

customer satisfaction and customer retention among Coffee Bean and Tea

Leaf drinkers in terms of value of perception or product quality because the

customer is not satisfied with the service or product quality it also shows that

there was no significant relatuonship between customer satisfaction and

customer retention among Coffee Bean and Tea Leaf drinkers in terms of

customer emotion because customers were into strategical location such as

ambiance of the store . If they were not satisfied with it, customer might not

revisit or repurchased product or services. It also showed that there was no

significant relationship between customer satisfaction and customer retention

among Coffee Bean and Tea Leaf drinkers in terms of perception of equality

and fair treatment, because the customer was not satisfied with the service or

product quality, the customer would not retain to Coffee Bean and Tea Leaf.

4. The study showed that the extent of customer retention was satisfied because

of the product and services of Coffee Bean and Tea Leaf drinkers.

5. It also showed that the relationship between customer retention in service

quality in term of tangible had a significant relationships towards customer

retention because they were in strategical location. Also, it showed that the

relationship between customer retention in service quality in terms of

reliability, assurance, responsiveness, and empathy was not significant in

 60

customer retention because the customer was not satisfied in the service in

promised time, and the standard of service they offered.

6. The study also showed that there is no significant relationship between

customer satisfaction and customer retention in terms of: value of service or

product value, customer emotion, and perception of equality and fair

treatment, because they are not satisfied of the product and services that’s

why the customer is not loyal in Coffee Bean and Tea Leaf drinkers.

Recommendations

In view of the research findings, dicussion and conclusion the following

recommendation were forwarded.

The socio-demographic profile of the respondents in terms of: age, sex,

monthly income/allowance, and educational attainment. The researchers

recommended that in accordance to know the service quality and customer

satisfaction as determinants of customer retention among Coffee Bean and Tea Leaf

drinkers in Bacoor City, Cavite must add other socio-demographic profile of the

respondents like occupation and marital status.

Based on the study, among the four service quality dimensions: tangibility,

reliability, assurance, responsiveness, empathy was the lowest R-statistcs based in

the result of the study so the researchers also recommended that the Coffee Bean

and Tea Leaf need to be open on all customers comments and suggestions, and

build a strong relationship with them. Coffee Bean and Tea Leaf needed to maintain

their service quality idea to give their customer the eagerness to continuously

patronage and retain them.

Based on the study the researchers suggested that the three level of

customer satisfaction such as; value of service quality or product quality, perception
 61

of equality and fair treatment, customer emotion, customer emotion was the lowest

R-statistics. The researchers recommended that they should expand store for the

good ambiance and for the relaxation of customers to go Coffee Bean and Tea Leaf.

The researchers also recommended to the Coffee Bean and Tea Leaf to improve

their ambiance by adding lightning, color scheme, sounds/musics, and some

paintings to look cosy and relaxing.

The study could help the future researchers by providing the information

about the topic. The study would be a basis for further improvement and

development of the Coffee Bean and Tea Leaf, on how to cope with problems that

they encountered in raising their company, and how to retain and attract more

customer
 62

REFERENCES

Abu-El Samen, A. A., Akroush, M. N., & Abu-Lail, B. N. (2013). Mobile SERVQUAL:
A comparative analysis of customer’ and manager’ perceptions.International
Journal of Quality & Reliability Management. Retrieved from
emeraldinsight.com/doi/fu/10.1108/026567113113083394?mobileUi=0

Ahmad, A.A.(2015). The Effect of Service and Food Quality on Customer Satisfaction
and Hence Customer Retention.Candian Centre of Science and Education.
Retrivedfrom: http://www.csenet.org/journal/index.php/ass/article/view/53412

CBS Los Angeles, (May 17, 2013). “Coffee Bean Looking To Hire More Than 250
Across California,” Retrived from https://www.coffeebean.com.ph/our-story/
careers/

Kotler Philip, Armstrong Gary, (2010), Principles of Marketing with MyMarketingLab

customer perceptions of quality and customer satisfaction. Retrived from
https://www.amazon.com/Principles-Marketing-MyMarketingLab.../dp/013397
3107

Kotler, P. dan Keller, K. (2016).Marketing Management, 15th Edition, PearsonEduca

tion, Inc. Retrived from http://www.academia.edu/34621802/Kotler_and_Kelle
r_Marketing_Management_15th_Global_Ed._2016_

Kotler Philip, Armstrong Gary, (2010), Principles of Marketing with MyMarketingLab

Zeithaml V. A., Bitner M. J., Gremler D. D. (2013) Services marketing, 4th
edition, McGraw-Hill. Retrived from https://www.amazon.com/Principles-of-
Marketing-with-MyMarketingLab/dp/140825915X

NSHA Coffee House and Healthy Treats AUGUST 2015 “A new model of production
combining Restaurant Services and Food and Nutrition services” BUSINESS
PLAN. Retrived from http://nsgeu.ca/filemanager/pdf/FinalProposalAugust28
pdf

Petzer DJ, (2014). Customer retention management for hotel industry in Gauteng.pot
chefstroom: North-WestUniversity (Ph.D thesis). Retrived from https://reser
ch.thea.ie/.../A%20PROFILE%20OF%20THE20%HOTEL%20INDUSTRY...

Tiffany Hsu, Los Angeles Times, January 30, 2013. “Coffee Bean & Tea Leaf marks
50th anniversary with free drinks,” Retrived from http://articles.latimes.com/2
013/jan/30/business/la-fi-mo-coffee -bean-tea-leaf-anniversary-freebies-201
30130
 63

APPENDICES
 64

Appendix 1. Survey Questionnaire

65
66
67
 68

Appendix 2. Request for Adviser and Technical Critic

 69

Appendix 3. Title Approval Sheet

 70

Appendix 4. Outline Approval Sheet

 71

Appendix 5. Certificate from Statistician

 72

Appendix 6. Certificate from English Critic

 73

Appendix 7. Compliance Sheet

74
75
 76

Appendix 8. Routing Slip

 77

Appendix 9. Recommendation for Thesis Manuscript Approval

 78

Appendix 10. Certificate of Completion

 79

Appendix 11. Curriculum Vitae

VIVIAN COLEGADO DESPE

Blk 9 Lot 1 Don Macario St. Springville Heights Bacoor,
Cavite
Contact No.:09501142232
Viviandespe18@yahoo.com

Objective:
To be able to work for a great company that will give me the experience to
improve my skills and to be given proper compensation for my services.

Personal Information

Age : 22 years old

Gender : Female
Birth Date : April 15, 1996
Place of Birth : Silay City, Negros Occidental
Citizenship : Filipino
Civil Status : Single

Educational Attainment

Tertiary: Cavite State University- Bacoor City Campus

Phase II, Soldiers Hills IV, Molino IV, Bacoor City, Cavite
Bachelor of Science in Business Management major in Marketing
2015-Present

Secondary: Enrique B. Magalona National High School

Negros Occidental
2009-2012

Primary: Tomongtong Elementary School

Negros Occidental
2004-2009

Skills and Abilities

Computer Literate (Microsoft Word, PowerPoint) Responsible

Language Skills: Filipino (Fluent) Flexible
English Time Management
 80

Internship

ANRABI Incorporated - Las Piñas City July 2018

Supermarket/Warehouse Department

Awards/Achievement

Best Methods of Research

Varsity Players – (Bacoor- Campus)

Seminar and Training Attended

“Success is a Habit” Makati, City October 24, 2018

Financial Coaching Seminar-

Step by Step in Saving and Investment Imus, Cavite September 20.2018

Modern Business Model Integrated

Marketing Career In Marketing Las Piñas City October 13,2018
October 13, 2018

Character References
Maria Angeles Lopena Conception Delos Angeles
Client Services Analyst Custom- Broker
09179062514 09167726652

I hereby certify that the above information is true and correct to the best of my
knowledge and belief.

____________________
Vivian C. Despe
 81

MONICA LAURENCE R. GONZALES

Block 8 lot 2 Casimiro Town Homes
Queens’Row East, City of Bacoor, Cavite
Contact no.: 09073169389
Email Address: monicagonzales0208@gmail.com

OBJECTIVES
To accept any position that is fit to me, willing to learn where I can develop myself
professionally and to sustain my basic needs.

WORK EXPERIENCE
June 28 – August 3, 2018 ANRABI INC. (Avon Las Piñas)
Internship at EMC Building, EMC Drive corner
Zapote–Alabang, Pamplona 1, Las Piñas City
Position: Invoice, Assisting Customer

SEMINAR ATTENDED

September 20, 2018 Financial Coaching Seminar- A step by step

guide in savings and investing

October 13, 2018 The Greatest Marketing Show

Robinson’s Place Movieworld Las Pinas City

October 24, 2018 Success is a Habit

Unit 503, One Corporate Plaza 845 Arnaiz
Ave.,Legaspi Village, Makati City

October 25, 2018 Financial Statements Highlights

Multi Purpose Hall, Soldiers Hills 4, Bacoor City

EDUCATIONAL BACKGROUND

Tertiary: Cavite State University- Bacoor City Campus 2015-2019

Bachelor of Science in Business Management

City University of Pasay 2014-2015

Secondary: Golden Acres National High School 2010-2014

Primary: Queens’Row Elementary School 2004-2010

 82

PERSONAL REFERENCES

Yenilyn Galvez
Teacher
Norquins Living Legacy Academy
09481727334
Block 5 Lot 22 Green St. Camella Springville

Ela Ria Clarice Jebunan

Service Crew
Greenwich
09208105387
Block 40 Lot 7 Queens Sarah St. Queens Row East Molino II City of Bacoor, Cavite

LilibethLabadan
Business Woman
Block 8 Lot 1Casimiro Town Homes Queens Row East City of Bacoor, Cavite

PERSONAL DATA

Nickname : Monic
Date of Birth : August 2,1997
Age : 21 years old
Place of Birth : Taguig City
Citizenship : Filipino
Height : 5’0
Weight : 40 kg
Religion : Roman Catholic
Language/ Dialect : Tagalog, Bicol & English

I hereby certify that the above information are true and correct to the best of my
knowledge and conscious.

MONICA LAURENCE R. GONZALES

Applicant
 83

SUMOOK, JERA MAE B.

Brgy. Zapote V City of Bacoor, Cavite
jeramaesumook4@gmail.com
Mobile Number: 09264922088

Objectives:
To obtain a position that will enable me to use my strong organizational skills,
and ability to work well with people.

Education:

2015 – Present Cavite State University Bacoor Campus

Phase 2 Soldiers Hills 4 City of Bacoor
Bachelor of Science in Business Management
Major in Marketing Management

2011 – 20145 Las Pinas National High School (Main)

Las Pinas City

2005 – 2011 Las Pinas Elementary School Central

Las Piñas City

Seminars and Trainings

 Breaking Boundaries Through Selling

 Mathematic Seminar
 Millentrepreneurship
 BSBM 2016 Seminar: a glimpse to our future

Certificates and Awards:

 National Service Training Program Civil Welfare

Skills:

 Aesthetic sensibility
 Work fast and error-free under pressure
 Time management
 Fast learner with a positive attitude
 84

Personal Data:
Date of Birth : May 21, 1998
Place of Birth : Las Pinas City
Gender : Female
Civil Status : Single
Citizenship : Filipino
Height : 5’
Weight : 50kg

Character References:

Jenny Rose Boqueo Magno

Office Staff
09094641566

Alexander Gernalin
SG- OIC, Bacoor City
09214367044

Cindy Montuerto
Admin Secretary, The Manila Hotel
09954106315

I hereby certify that the above information is true and correct.

JERA MAE B. SUMOOK