Effects of Traditional Coffee Shop (Kopitiam) Service Quality On Customer Satisfaction and Customer Loyalty: A Study On Malaysian Youth
Effects of Traditional Coffee Shop (Kopitiam) Service Quality On Customer Satisfaction and Customer Loyalty: A Study On Malaysian Youth
Effects of Traditional Coffee Shop (Kopitiam) Service Quality On Customer Satisfaction and Customer Loyalty: A Study On Malaysian Youth
Tze-Yin Lim
Faculty of Business, Design and Arts, Swinburne University of Technology Sarawak Campus,
Malaysia
Email: tzlim@swinburne.edu.my
Choi-Meng Leong
Graduate Business School, UCSI University, Malaysia
Email: leongcm@ucsiuniversity.edu.my
*Corresponding author
Abstract
Purpose: This study employs a service quality model (reliability, assurance, tangible,
empathy, and responsiveness) to assess youth satisfaction and loyalty to Malaysia’s traditional
coffee shops (Kopitiams).
Design/methodology/approach: This study applied a quantitative approach, and a self-
administered questionnaire was used to collect the data from 250 respondents online.
Findings: The current study suggested reliability, assurance, empathy, and responsiveness
have a positive relationship with customer satisfaction. On the contrary, this study revealed
that tangible items such as the ambience of a kopitiam had no significant effect on customer
satisfaction. In addition, customer satisfaction is positively related to customer loyalty toward
traditional coffee shops among young Malaysians.
Originality/value: The study outcome is significant to the theoretical aspect, where the results
further strengthen the Service Quality Model in the Malaysian kopitiam context. In the
practical aspect, the outcome of the study provides new insights to business owners and
operators to enhance youth satisfaction and loyalty from the dimension of service quality.
Keywords: Service Quality Model, Traditional Coffee Shops, Youth, Customer Satisfaction,
Customer Loyalty, Malaysia
Introduction
The Malaysian lifestyle has changed throughout the years because of the accelerated phase of
urbanisation. This has influenced food and beverage consumption, including coffee (Aprilia
& Suryani, 2020; Langgat, Pawan, Fabeil & Pazim, 2020). Today, traditional coffee shops
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such as cafés, with a well-designed and straightforward menu (Andrews, 2009), rapidly
developing in the food and beverage sector (Muhammad, 2015). For this reason, coffee
drinking is the current routine for people, especially the younger generation, to be consumed
outside their households (Lee, Rajaratnam & Konar, 2018; Samoggia & Riedel, 2019).
Hirschmann (2020) indicated that Malaysians consumed about six hundred thousand 60kg
bags (36 million kg) of coffee in 2018 alone. Cafés might offer a relatively cheaper option
than other restaurants, bars, or clubs (Chow, 2019), especially for young consumers.
Before the trendy and high demands of modern cafés, kopitiams were the pioneer coffee shops
among Malaysian adults (Khoo, 2009). The expression Kopitiam originated from the English
term coffee, and the Hokkien dialect word for a shop, which usually means a shop that offers
a regular place to drink and social activities (Aprilia & Suryani, 2020; Langgat et al., 2020).
Typically, locals will meet together daily to exchange talks on different topics (Rahman,
2010). Nowadays, Western-style coffee giants such as Starbucks thrive greatly in Malaysia
with their artistic and technological-sophisticated services (Rahardjo, Hasbullah & Taqi,
2019). This offering attracts more customers by offering high-quality services, free internet
access, and a full menu such as cakes, pasta, and ice creams. There is also greater interest from
different groups of people, from family gatherings to business people having professional
meetings and youths spending time together (Davis, Lockwood & Pantelidis, 2012). The
classic years of kopitiams have now faded since customers, especially the younger generation,
have changed their views on food, drink, and stylish surroundings (Langgat et al., 2020). There
is also a social change with various Western culture alternatives (Rahman, 2010). Plus, most
youths have a rising income, increasing purchasing power, and growing consumption of coffee
beverages (Ponte, 2002).
The relationship with consumers is the most crucial achievement in the service sector. This
relationship is an important achievement in the service sector (Krisnamoorthy &
Balasubramanian, 2019). Previous studies demonstrate that service quality, customer
satisfaction, and customer loyalty have had a significant relationship (Aprilia & Suryani,
2020). Therefore, there is a need to comprehend service quality factors to create satisfaction
and loyalty in kopitiams among Malaysian young people.
Malaysian purchasing power and social activities are rising, showing a demand for food
services such as coffee shops (Lee et al., 2018). Khoo (2009) stated that kopitiams represented
an image of Malaysian civic national identity. Other food services, such as fast food and fine
dining restaurants, have been researched continuously (Azim et al., 2014; Chow, 2019; Lee et
al., 2018). Kopitiams then need to improve the satisfaction attribute by obtaining their
customers’ trust, which leads to loyalty after their expectations are fully satisfied (Langgat et
al., 2020). Past and current studies have involved loyalty implications in the service-related
industry (Asuncion, Martin & Quintana, 2004). These studies substantiated the argument that
service can potentially influence a company's sustainable competitive growth (Lee et al., 2018;
Lee & Kim, 2021).
Previous literature has integrated the SERVQUAL model with other concepts in the food and
beverages industry to explore customers' perceptions of visiting a restaurant. Nevertheless, the
study which focuses on predicting customer satisfaction and loyalty among youths in
Malaysian Kopitiam is limited at its best (Namin, 2017; Tuncer, Unusan & Cobanoglu, 2021).
Also, there has been an inconsistency in service quality outcomes, focusing on various service
industries different from the food-service sector. For instance, five service quality dimensions
reacted differently to customer satisfaction and customer loyalty (Yap, 2020). Several earlier
research studies specified that only some of the five dimensions have a meaningful impact on
the satisfaction and loyalty of the people (Tan, Oriade & Fallon, 2014; Mee, Ariffin &
Rahman, 2014 and Moorthy et al., 2017). Inversely, some analyses used the theory of planned
behaviour to measure customer intention in visiting restaurants (Jang, Chung & Kim, 2015).
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Additionally, service quality can mediate service climate on perceived value and behavioural
purposes (Mokhtaran et al., 2015; Lee et al., 2021).
Therefore, this paper aims to fill the research gap by utilising the service quality model to
assess the relationship between satisfaction and youth loyalty, which is also an infrequent
practice for the target audience, within the proposed quantitative approach in the case of
Malaysian kopitiams. Firstly, this study seeks to measure youth expectations and perceptions
of service quality in kopitiams based on SERVQUAL’s five dimensions: reliability, assurance,
tangibles, empathy, and responsiveness. Secondly, the study will examine service quality
dimensions in predicting customer satisfaction and loyalty among youths in Malaysian
kopitiams. To sum up, this paper introduces the essence of service quality that can impact
customer satisfaction and loyalty towards the downturn preferences of Malaysian kopitiams.
Literature Review
The subject of service quality measurement has attracted wide academic and industrial
attention and practical focus (Yuan et al., 2015). SERVQUAL is a multi-item scale obtained
to weigh the gap between customer expectation and the actual performance of the service
offered (Parasuraman, Zeithaml & Berry, 1985; Yap, 2020). Besides, since people have
different stances on particular services, every firm needs to deliver consistent service quality
(Lee et al., 2018). This model was designed for several service and retail corporations to
measure clients’ opinions on service quality (Kang & James, 2004; Parasuraman et al., 1985;
Tuncer, Unusan & Cobanoglu, 2021). From this onwards, scholars and experts have generated
much interest in examining disputes about service quality. This recognition happened because
there is a belief that superior service quality would advance a company's overall execution
(Yap, 2020).
Countries including Malaysia and Singapore are unique because of their racially-influenced
and traditional coffeeshops called kopitiams. Coffee has become an essential beverage
globally (Aprilia & Suryani, 2020; Yuan et al., 2015). The kopitiams have become part of the
country’s intangible cultural assets that represent the population that must protect their
heritage cuisine (Santilli, 2015). This protection showcases the actual identity and conveys the
history of traditional coffeehouses to the new generation (Turmo, 2012). Traditionally,
kopitiams have existed for an extended period, owned chiefly by Foochow and Hainanese
refugees, who lived in towns and urban areas throughout the British colonial period (Aprilia
& Suryani, 2020). Another unique characteristic of kopitiams is that several business owners
will rent out stall spaces to various vendors to sell different kinds of foods, which is dissimilar
from the culture of the European market Cafés (Duruz & Khoo, 2014). The United Nations
indicates youth as those aged from15 to 24 years old (Robertson & Parry, 2013). In Malaysia,
the National Youth Development Policy (NYDP) 1997 and Youth Societies and Youth
Development Act (YSADA) 2007 defined youth as an individual who is not less than 15 years
old and not more than 40 years old (Youth Policy, 2021).
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Figure 1 above shows the hypothesised relationships between several variables. From the
service quality factor perspective, customer satisfaction will assist in accomplishing customer
loyalty (Yuan, Chang & Tzeng, 2015). Several researchers in past studies have supported the
relationship between service quality and customer satisfaction (Fornell et al. 1996; Spreng &
Macky, 1996; Lee & Kim, 2021).
This paper offers six hypotheses concerning the relationships between various service quality
variables in the context of youth loyalty and Malaysian kopitiams.
The assurance of an organisation's service quality can attract more customers (Parasuraman
et al., 1993). This factor includes the guarantee of competence where employees do their task
proficiently, security that can avoid the uncertainty of customers, courtesy of the business in
respecting all consumers, and credibility arising from a team's honesty (Hirmukhe, 2012;
Yuan et al.,2015). Due to this, this study suggested that:
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Another service quality dimension is tangibility. In this paper, the physical appearance of
kopitiams will be accessible for customers to assess, affecting service quality (Krishnamurthy,
SivaKumar & Sellamuthu, 2010). This factor comprises attractive interior physical facilities
such as tables, chairs, and lights or the building’s exterior designs to attract more patrons (Lee
& Kim, 2021; Lee, et al., 2021; Park, 2019). Therefore, the next hypothesis that can be posited
is as follows:
The empathy dimension occurs when a company is thoughtful towards its customers. In the
case of kopitiams, the waiters provide personal attention to each consumer by communicating
with them when needed (Yuan, Chang & Tzeng, 2015). Besides, the employees to take
reasonable care in listening and understanding the particular needs of customers (Lee & Kim,
2021). This factor also recognises the client's needs by offering protection, availability, and
determination (Ko & Chou, 2020; Yap, 2020). As kopitiams are recognised as a place of
interaction, convenient operation hours are also an empathy element (Ananth, Ramesh &
Prabaharan, 2010). So, being observant, mindful, and sociable with a purchaser's needs and
expectations are vital (Ennew, Waite & Waite, 2013). As such, this study proposed that:
The last dimension of service quality for this study is responsiveness. For kopitiams, this factor
will show customers that the business is ready to assist any person by means of fast service
and proper timeliness (Parasuraman et al., 1985). This dimension is a key component as it
defines promptness and exactness of service quality, showing the speediness and time taken
for service delivery (Kandampully, Mok & Sparks, 2001). Here, kopitiams, are willing to offer
their capability to help customers (Wen et al., 2012; Leong et al., 2015) by providing help
with the menu and other appropriate responses (Tan, Oriade & Fallon, 2014). Hence, this
study suggested that:
H2: There is a positive relationship between customer satisfaction and customer loyalty.
Methodology
Purposive sampling was used in recruiting participants, where a self-administered online
questionnaire involving the five dimensions of SERVQUAL was administered. A five-point
Likert scale was used in the instrument, as it saves time, results in a higher response rate,
controls bias, and attains honest answers from unknown respondents (Mitchell & Jolley,
2012). An online questionnaire involved every person answering identical questions in a fixed
sequence (Saunders, Lewis & Thornhill, 2012). The respondents voluntarily participated in
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the survey, spending 10 to 15 minutes completing it. The target population was young
Malaysians (18 to 40 years old) to evaluate their nearby kopitiams. A sample size of 200 to
500 respondents is considered sufficient to achieve accurate estimation (Hill & Alexander,
2000), and most research papers can appropriately attain 30 to 500 samples when conducting
a quantitative approach (Guthrie, 2010). Furthermore, by applying effect size of 0.15, power
of 0.80 and number predictors of 5, the minimum sample size suggested by G*Power was 92
repsondents. 250 out of 263 completed questionnaires were deemed suitable for the data
analyses.
The study made use of the SPSS statistical analysis software. There were four steps to the
analytical procedure. Firstly, the data and inferential analyses encompassing descriptive
analysis of the participants’ sociodemographic characteristics were conducted. Next, scale
measurement to assess the normality and reliability tests to ensure the validity and reliability
of the items were conducted. Thirdly, inferential analysis was used to test the relationships
between SERVQUAL's five dimensions and customer satisfaction and loyalty using Multiple
Linear Regression Analyses. Lastly, the theoretical and practical implications of the results
were considered. As direct relationships are tested for each of the proposed hypotheses,
Multiple Linear Regressions Analyses was used.
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The results of the multiple regression indicated that reliability (i.e., β = .245, p = .000),
assurance (i.e., β = .132, p = .010), empathy (i.e., β = .146, p = .014), and responsiveness (i.e.,
β = .294, p = .000) significantly and positively affected youth satisfaction with kopitiams. On
the other hand, the tangible factor (i.e., β = .028, p = .411) was found to be not a factor
considered by youths while patronising kopitiams. Thus, the results of the multiple regression
analyses supported all hypotheses apart from H1c. In addition, the results of the analyses
indicated that the relationship between customer satisfaction and customer loyalty was
positively significant (i.e., β = .759, p = .000) in the context of youth visiting kopitiams.
Therefore, the results of the multiple regression analysis supported H2 as well.
Conclusion
The purpose of this study was to develop a measurement scale to assess service quality
dimensions in predicting customer satisfaction and loyalty among youths in Malaysian
kopitiams. The empirical outcomes of this study provide sound evidence that service quality
is associated with customer satisfaction, alongside customer loyalty. Reliability, assureance,
empathy and responsiveness were found significantly related to customer satisfaction while
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Practical Implications
From the perspective of business practitioners, this study provides essential marketing
strategies to deliver values that customers can remember, strengthening and benefitting their
relationship with businesses to stay competitive in the market (Aprilia & Suryani, 2020; Lee
& Kim, 2021; Park, 2019; Langgat et al., 2020). For instance, From the perspectives of
responsiveness and reliability dimensions, kopitiam owners and operators should consider the
timeliness of their service by improving their reliable delivery services while responding to
the customers' needs. The ability to respond accurately to customers’ complaints and address
the issues with dependability could attract more customers, particularly the youth. In the
dimensions of assurance and empathy, kopitiam owners and operators could create a
commitment to promise their goods and services offered to the customers. Furthermore, they
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