INVESTIGATING THE CONSUMERS’ LOYALTY IN MILK TEA PRODUCTION:

THE CASE STUDY OF TOOBUSY MILK TEA SHOP

Bulacan State University - Bustos Campus, Bustos, Bulacan 3007

Abaco, Vincent M., Macaorog, Angela DL., Policina, Gerald Angelo U., Vigonte, Florinda G.

Email Address: vincent.abaco.m@bulsu.edu.ph, angela.macaorog.dl@bulsu.edu.ph,

geraldangelo.policina.u@bulsu.edu.ph, florinda.vigonte@bulsu.edu.ph

ABSTRACT loyalty based on the information obtained.

The researchers also discovered that this
Milk tea is a well-known beverage
investigation might help the Toobusy milk
that has been popular since 2011. The study
tea business improve its designs, tapioca
investigates the factors that affect the
pearl preparation and cooking procedures,
consumer’s loyalty wherein consumer
strategy, equipment quality, and meet client
satisfaction and service quality are involved.
requests.
Including the designs, tastes of milk tea, right
measurement of ingredients, quality
equipment, and awareness in the workplace
Keywords: Case study, consumers’ loyalty,
can satisfy customers’ demand, not only from
customer satisfaction, milk tea production,
getting favorite flavors and filling add-ons
Toobusy shop, service quality
but also from the quality product they can
purchase to gratify customers’ cravings. This
study made use of descriptive research. INTRODUCTION
Online questionnaires and in-depth
Dr. Juliet D. Herrera-Chen and Peter
interviews were used to gather information
L. Chen first introduced milk tea to the
about consumers' satisfaction and service
Philippines in December of 2008. They had a
quality in the Toobusy milk tea shop. The
vision that Filipinos would enjoy it, and they
researchers found that the taste of milk tea is
were right. In 2009, milk tea made its way
the essential factor in achieving consumer
into universities, kicking off a growing

Electronic copy available at: https://ssrn.com/abstract=4028776

industry. It started competing with other excellent approach to customers by asking
market trends, such as coffee shops. Gong their wants and needs. It is also essential to
Cha and Cha time, two multinational milk tea have food safety. Excellent products and
companies, arrived in our country in 2011 services from the company build customer
and rapidly soared to the peak of the milk tea loyalty or repurchasing behavior. Customers
industry. The milk tea market reached its with a solid idea of brand loyalty are more
climax in 2013. After the stores were likely to recommend the products to others.
stabilized, several issues arose, such as some When people have to acquire things from a
shops serving poisoned milk tea to their different company, they also think twice.
customers, resulting in their deaths. Because Repurchasing products might increase sales
of a new milk tea firm that comes with new and profits for the company (S. A. Sudari et
tastes and marketing methods that catch the al., 2019).
millennial market, the milk tea business has
been revived since 2017. (yummy.ph 2017).
Considering the components of milk
tea, its sweet and unique flavor served as a
This study is about the consumers’ selling feature in many places. It won
loyalty to Toobusy milk tea. In 2019, the shop people's hearts with its sweet flavor and
was established in Taguig City, Manila. The finally made its way into the beverage
primary goal of this examination is to look business. Milk tea businesses eventually
into the customer satisfaction and service grew in popularity and can now be found in
quality in milk tea production in service malls, parks, and communities. As a result,
industries, specifically in terms of the design, there has been a considerable increase in milk
strategies, material, and tools used, the tea stores worldwide. Shops from various
approach, venue, laborer’s awareness in the Asian locations capitalized on the trend and
work process, and especially the ingredients created their brands due to these brands'
used in milk tea production. Many things are international success. Boba Loca Inc.,
must be considered in doing good quality Lollicup USA, Inc., and Kung Fu Tea were
service and satisfying customers. It includes featured in Fortune Business Insight.
quality control on making smooth and (yummy.ph 2017).
delicious milk tea. It is also a must to have an

Electronic copy available at: https://ssrn.com/abstract=4028776

 Despite good quality control, there is is a nutritious beverage, and consumers are
a challenge in Toobusy milk tea shop to reach always aware of the advantages of drinking
their goals such as not properly cooking and it. Green tea bottles or canned items, used as
preparing the tapioca pearls, poor tasting a healthy beverage, are the most popular.
drink, misuse of the measurement system in Thais have begun to drink green tea in
making milk tea, not purchasing good quality addition to milk tea (Yamamoto T., 1997).
equipment, and poor management system in
place. Once customers find out that
something is wrong with the product and LITERATURE REVIEW

service, low sales may experience and disrupt Kotler, Armstrong, Wong, and
production. According to K-Research by Saunders (2008) stated that a pleased
Kasikorn bank, 2012. According to reports, consumer is more likely to promote positive
pearl milk tea was first released about 12 word of mouth about the company and its
years ago, and it appeared that pearl milk tea product, giving them control of the bulk of
was a flop at the time. Nevertheless, pearl the marketing share. A positive brand image
milk tea became a well-known and popular greatly influences customers' thoughts and
beverage in 2012, according to K-Research behavior. When a product or service meets or
by Kasikorn bank (2012). exceeds the customer's expectations,
customer satisfaction is more likely to be
attained.
The study may benefit customers'
needs and wants and for milk tea businesses
to engage with their quality services and According to (Weiner 2009), people
know more marketing strategies. This are more adventurous and love to try new
investigation can help the Toobusy milk tea tastes and test new flavors. They are drawn to
shop improve the designs, tastes of milk tea, anything new, interesting, and helpful to
approach, and awareness in the workplace. It them. Since the milk tea sector was on-trend
also can satisfy customers’ demand, not only and new in the market, there has been a
from getting favorite flavors and filling add- consistent demand for it.
ons but also from the quality product they can
purchase, to gratify customers’ cravings. Tea

Electronic copy available at: https://ssrn.com/abstract=4028776

 The researcher discovered that cheese, and the amount of ice were all
convenience and speed of service, quality evaluated. (Ong, A. K. S., Prasetyo, Y. T.,
ingredients, and devoted consumers are the Libiran, M. A. D. C., Lontoc, Y. M. A.,
most important factors to consider in the milk Lunaria, J. A., Chuenyindee, T., Persada, S.
tea sector. The strength of a milk tea shop's F., & Redi, 2021).
business is the easy and quick service, high-
quality ingredients, and loyal consumers
(Fhrizz De Jesus, 2020). METHODOLOGY

The key objective of this case study

was to identify problems from the shop,
The study (Jongpradit, 2020) reveals
analyze the customers' perspective, and come
new information on the elements that
up with a better system for the customers,
influence purchasing behavior. It turns out
employees, and the shop itself. This section
that pricing isn't the most important element
discusses the research design, instruments,
in driving customers to purchase this type of
and data gathering procedures.
beverage. Significant reasons that drive
people to buy, on the other hand, include a
promotion, the flavor and taste of the drink Research Design
itself, the effect of social media, and the urge
In this case study, the researchers
to please themselves. Furthermore, health-
used descriptive research to identify,
related concerns such as obesity or food
examine, and investigate the customer’s
additives have little influence on their
satisfaction and the service quality in milk tea
purchase decisions.
production of Toobusy shop. Questionnaires
are used to generate information that can be

The Conjoint Analysis Approach was transformed into usable statistics regardless

used in this study to determine the most of the different factors that affect the

favored combination of milk tea qualities customer and the shop.

among customers utilizing an orthogonal

design. The size of the tapioca pearls, the
The researchers used online surveys
amount of sugar, the price range, the brand,
with the help of their staff and their
the kind of milk tea, the inclusion of cream

Electronic copy available at: https://ssrn.com/abstract=4028776

observation to obtain and analyze the gathering the needed information was a
subject’s feedback concerning the product, success. The researchers chose the Toobusy
the shop’s customer service, and their overall Milk tea shop because it was established only
performance. The staff is also open to in 2019, yet it has a lot of branches now. The
whatever the customer’s feedback outcome fact that their improvement was fast, they
will be, whether positive or negative, and also tend to face a lot of problems in
they do not pressure them to get the precise improving.
information. To expand and interpret the
information gathered, the researchers
considered having multiple views to the Instrument

information gathered because it allows the This study utilized descriptive

researcher to see the world through the eyes research to determine customers satisfaction
of the participants, which is called and service quality in Milk Tea Production of
interpretivism. Toobusy Shop. This method used mixed
quantitative and qualitative data to describe
specific details. It was through an online
With a lot of daily customers, the
questionnaire that contains 15 questions. The
researchers notice that Toobusy shop still
first section was about the respondent’s
faces a problem in preparation, ingredients,
profile; The second section was about the
management, and some of the customers that
product; The third section was about the
need to be solved. The researchers'
quality service of the shop. The researchers
information from the customer and personal
also put a suggestion section at the end of the
might hold the solution to these problems.
questionnaire to gather more information that
can be used to improve or solve existing
problems.
Research Locale

The research was conducted inside

the shop of Toobusy Milk tea, located in Data gathering
Taguig City, Manila. Although the
The researchers first communicate to
researchers were not there physically, with
the Toobusy Milk tea shop manager through
the manager and the staff's collaboration,
messenger and zoom meetings. The manager

Electronic copy available at: https://ssrn.com/abstract=4028776

was asked about the current situation of the There are challenges in achieving the
shop and its customer; the researchers then customer’s loyalty in the milk tea shop. These
gave the set of questions used in the survey include not properly cooking and preparing
for the customers. With staff collaboration, the tapioca pearls, poor tasting drink, misuse
the subjects were asked first if they would of the measurement system in making milk
agree to be a part of the study and the tea, not purchasing good quality ingredients,
instructions were explained to them. The and a poor management system. Many will be
researchers also made sure that any personal affected by these problems not only the
information from the subjects would be customer’s loyalty but also the consumer’s
protected and confidential. health. Researchers must investigate
potential solutions to address these problems.
Based on surveys and interviews with some
After gathering all survey customers, staff, and owners of Toobusy milk
questionnaires, all data must go through a tea shop, they have the quality to have a
series of preparation processes. Data repeat customer. However, there are
processing involved questionnaire checking, hindrances in achieving these goals.
editing, coding, data transcribing, and data
cleaning. These processes are essential
because the main purpose is to enhance the Bubble tea or milk tea is traditionally
quality of the results and provide the study made using tapioca pearl, also known as
with a more precise result by making a lesser boba. After all, it's the pearls at the bottom of
error. the cup that distinguish the bubble tea.
Tapioca pearls are not harmful to your health.
They are made entirely of starch and might
RESULT help you feel more energized. ‘Incorrect

Through interviews and surveys, tapioca pearls, on the other hand, can induce

researchers employed case study methods cyanide poisoning and allergies in some

and descriptive study designs to describe, people’, medically reviewed by Katherine

explore, and identify subject experiences and Marengo LDN, R.D., Nutrition (health line

difficulties connected to the event or process. update 2021). Based on the survey results, 20
out of 30 customers say that overcooked and

Electronic copy available at: https://ssrn.com/abstract=4028776

half-cooked tapioca pearls are one of the enjoy a product. After many milk tea tastings
customer’s rants. The unique aspect that boba and the progress to the customer remains,
delivers is the sweet taste of the tea combined repeat purchases will produce loyal
with the chewy tapioca pearls. Besides flavor, customers who are essential to your product's
it gives more excitement and combination in success. The taste of the milk tea products
drinking milk tea. The best way to have affects the willingness of consumer’s
almost perfect chewy tapioca pearls are; (1) purchase than the packaging designs.
making a test of exact time-schedule for Although that is included, it has nothing to do
cooking and preparing, including the right with the product's taste. Packaging themes
measure of uncooked tapioca pearls, sugar, can also give more life, especially in today’s
and water, (2) taking list down notes to be a generation aesthetic theme is the catchiest by
reminder, and (3) use timer in every cooking young people. Based on the survey result, the
session of tapioca pearls. usual customers are rages from 15 to 25 years
old. The aesthetic theme in packaging is also
a possible recommendation.
The measurement of ingredients was
the most important factor influencing
customer preferences for milk tea in this Investing in more high-quality
study. Since customers are becoming more equipment is also a brilliant idea. It is not
health concerned, the sweetness level of milk required for a firm to invest in expensive
tea should be examined. Based on the equipment to have perfect milk tea. On the
findings, the investigators recommend that other hand, it still preferred to employ costlier
milk tea shops incorporate these equipment since it adds to the novelty of the
characteristics into their product drink. A plastic shaker or a stainless-steel
development and innovation to boost shaker can be used instead of the shaker
consumer satisfaction with milk tea products. machine. The plastic shaker is a popular
The Too busy milk tea shop be stricter in the choice because it does not change
proportions of the sugar level, add-ons, temperature with the liquid put in. Some
flavor, and tea. That is where product tasting firms prefer the stainless-steel shaker because
will enter. Taste is the most crucial aspect for of the "classy" aesthetic; however, the metal
customers when deciding whether or not they gets quite chilly to grip or occasionally

Electronic copy available at: https://ssrn.com/abstract=4028776

heated enough to require "hot pads or always aware of the advantages of drinking
warming gloves." However, some people it. Green tea bottle or can items, which can be
prefer the plastic shaker since the used as a healthy beverage, are the most
measurements are already printed on the cup. popular.
Another proposal, to save room on the
counter and keep your powders organized,
store the flavored powder in a tiny airtight The findings of this study can assist in

container. As much moisture as possible the development of a strategic marketing plan

should be kept out of the containers. A to combat rising competition in the beverage

blender is frequently utilized, although the business, particularly in the milk tea sector.

business owner cannot use one. Fruits may be When it comes to the tailoring their drinks,

added to your bubble tea, and it has a businesses in the milk tea market should

beautiful mushy feel given by the blender. prioritize their customers' choices and
preferences. Furthermore, having a diverse
milk tea menu can assist a business attract
CONCLUSION more customers. Marketers in the beverage
industry should demonstrate to customers
Based on the data gathered, the
how their goods differ from those of rivals.
researchers conclude that the taste of milk tea
Because pricing and quality of a drink are
is the most important aspect of achieving
important to customers, marketers may
consumer loyalty. The researchers also found
emphasize the advantages, affordability, and
out that this investigation may assist the
distinctive attributes of their beverages.
Toobusy milk tea shop in improving its
designs, a procedure in preparing and
cooking tapioca pearls, approach, and quality
REFERENCES
of equipment used, as well as satisfying
customers' demands, not only by providing ASTV. (29 July 2012). Overall, Pearl milk

their favorite flavors and filling add-ons, but tea business.Bangkok.

also by providing a high-quality product to http://journalgrad.ssru.ac.th/index.php/iss

satiate their appetites, and that will be a ue14/article/view/752

benefit to customer’s needs and wants. Tea is Bubble Tea Market - Get Exclusive Report
a nutritious beverage, and consumers are on Trends, Size, and Revenue Analysis

Electronic copy available at: https://ssrn.com/abstract=4028776

 with Forecast to 2025. (2019, May 15). preference analysis on attributes of milk
Retrieved from tea: A conjoint analysis approach. Foods,
https://www.bharatbook.com/marketrepor 10(6).
ts/global-bubble-tea-market-size-study- https://doi.org/10.3390/foods10061382
by-enduser-kids-10-years-teenagers-25-
Thaitrakulpanich, A. (2019, July 12). Most
years-adults-type-original-bubbl/1533360.
Bubble Tea in Thailand Exceeds Daily
Field, J. (n.d.) Target Market Project. Sugar Intake:Consumer Foundation.
Retrieved from Retrieved from
http://static1.squarespace.com/static/56e8 http://www.khaosodenglish.com/life/food/
5bd540261db9be8c125b/t/56eba2a827d4 2019/07/12/most-bubble-tea-in-thailand-
bdff1f excee ds-daily-sugar-intake-consumer-
7e3083/1458283178494/Target+Market+ foundation/.
Project+-+Final+-+Jon+Field.pd
Thitawan, N. (2019, February 9).
Jenet Manyi Agbor. (2011). The Relationship สำรวจจักรวำลควำมหวำนผำ่
between Customer Satisfaction and นชำนมไขม่ก. Retrieved from
Service Quality: a study of three service
http://lab.sal.mn/2019/02/bubble-tea-
sectors in Umeå. http://www.diva-
data/61533/?fbclid=IwAR2ZH-
portal.org/smash/get/diva2:448657/FULL
fveMCZBY66Nz52
TEXT02.pd
aOvfEqkVJwhoGLPQQP-
Kotler, P., Armstrong, G., Wong., V., & l71UjDnhWIDo5W_zEFpU. Truc, N. H.
Saunders, J. (2008). Principle of T. (n.d.).
Marketing, 5th ed. London: Library of
Factors Affecting Consumers' Buying
Congress.
Behavior on Selected Milk Tea Stores
http://www.naturalspublishing.com/files/p
Towards Obtaining Sustainability.
ublished/98215j42pp8u4h.pdf
Retrieved from
Ong, A. K. S., Prasetyo, Y. T., Libiran, M. A. https://www.academia.edu/30356082/Fact
D. C., Lontoc, Y. M. A., Lunaria, J. A. v., ors_Affecting_Consumers_Buying_Beha
Manalo, A. M., Miraja, B. A., Young, M. vior_on_Selected_Milk_Tea_Stores_Tow
N., Chuenyindee, T., Persada, S. F., & ards_Obtaining_Sustainability.
Redi, A. A. N. P. (2021). Consumer

Electronic copy available at: https://ssrn.com/abstract=4028776

Weil, A. (2019, April 18). Is Boba Tea now taking up Lean Six Sigma Yellow Belt. She
is also a member of Philippine Society of
Healthy or Unhealthy: Food Safety:
Industrial Engineers.
Andrew Weil, M.D. Retrieved from
https://www.drweil.com/diet-
nutrition/food-safety/is-boba-tea-bad/. Gerald Angelo U.
Policina is from
Wu, Y., & Ding, Y., & Tanaka, Y., & Zhang, Tangos, Baliuag,
W. (2014). Risk Factors Contributing to Bulacan, Philippines.
He is currently a 3rd
Type 2 Diabetes and Recent Advances in
Year Student in
the Treatment and Prevention. Bachelor of Science in
International Journal of Medical Sciences, Industrial Engineering. He is also a member of
PSIE (Philippine Society of Industrial Engineers)
11(11), 1185-1200. doi: in Bulacan State University.
10.7150/ijms.10001

Florinda G. Vigonte is
from Tambubong, San
About the Authors
Rafael, Bulacan,
Philippines 3008. She is
a Doctor of Philosophy
Vincent M. Abaco is in Educational
from Bintog, Plaridel, Leadership and
Bulacan, Philippines. He Management with Specialization in Management
is 3rd year Industrial Research at La Consolacion University,
Engineering student of Philippines; currently pursuing her second
Bulacan State University, doctoral in Ph.D. -Business Administration;
Bustos-Campus. He was earned units in Online Distance Learning (ODL)
also a member of Philippine Society of Industrial course at De La Salle University, Manila (2020);
Engineers Organization in their University. and an Instructor I at Bulacan State University
(BulSU), Malolos City, Bulacan, Philippines. She
authored different books in Jimczyville
Angela DL. Macaorog is Publications and Jo-Deh Publishing. An
from San Jose, Plaridel, Associate Member of the National Research
Bulacan Philippines Council of the Philippines (NRCP); a member of
3004. She is third year the Philippine Association of Researchers and
college student Bachelor Statistical Software Users (PARSSU), and a
of Science in Industrial Scopus author.
Engineering at Bulacan
State University, Bustos Campus. Certified Lean
Six Sigma White Belt at Ask Lex PH Academy,

Electronic copy available at: https://ssrn.com/abstract=4028776