INTRODUCTION

The Hospitality Industry is an industry that offers services as its primary product.

The industry is comprising of different sectors including lodging and accommodation, travel

and tours, meetings, events and food and beverage. Food and beverage businesses are broad as

it is comprised of fast-food restaurants, fine-dining, cafeterias, cafes, and milk tea shops are

popular in the country and became a daily habit of Filipinos to be visited for a quick dine-in or

take-out. The food and beverage businesses offers different food and beverages that are loved

to be experienced by different target market.

In the Philippines, milk tea shops became popular and different businesses take risks

in investing and opening their own milk tea shops. Milk tea shop provide service and products

that are loved and patronized by milk tea lovers. There are numbers of milk tea shops that have

expand their businesses and branching out across the country as they provide service quality

and guarantees the satisfaction of their customers. Milk tea shops are developing strategies that

creates an impact towards the whole operation of the business. It gives the business more

potential in continuously generating profit and having its edge on its broad market

competition.

Dakasi Milk Tea Shop was established in Taiwan since 1990 and founded by the

brilliant and visionary Mr. Lou. He devoted himself in leading the Dakasi Tea Drink Idustry to

adapt to the worldwide trend and developing unique products. Dakasi Milk Tea Shop is now a

tremendously influential brands and become the number one brand among its competitors. The

business upholds their principle of ‘customer first’ and ‘service first’ and ensuring the quality,

improvement and innovation to attain the satisfaction of the customers.

The study will only focus on the Customer Satisfaction and Service Quality of

Dakasi Milk Tea Shop in Pavilion, Binan City Laguna. The study will take place on the
 Municipality of Carmona, Cavite. The researchers conducted this study to feed their curiosity

about the average gaps of customers’ satisfaction and if the current service quality of the

establishment needs major improvement.

Therefore, studying the Customer’s Satisfaction and Service Quality of Dakasi Milk

Tea Shop in Pavilion, Binan City Laguna is beneficial for both the customers who purcahe the

products and services of the shop and the establishment itself for this study will enable them to

know the customer satisfaction and service quality and help them to improve their service.

Objectives of the Study

This study aims to determine and answer the following:

1. The customer satisfaction of the participants in Dakasi Milk Tea

Shop Pavilion, Binan City Laguna.

2. The level of service quality in Dakasi Milk Tea Shop Pavilion, Binan

City Laguna in terms of:

2.1 assurance;

2.2 empathy;

2.3 reliability;

2.4 responsiveness; and

2.5 tangibility.

REVIEW OF RELATED LITERATURE

This chapter shows a retrospective presentation of previously written

material: research literature and conceptual that has relevance and significance to

the research under consideration.

Dakasi
 People are more experimental, and they like trying new tastes and experimenting with new

flavors. They are drawn to anything new, interesting, and helpful to them. Since the milk tea sector

was on trend and new in the market, there has been a consistent demand for it. Milk tea is a popular

tea-based beverage that first appeared in Taiwan in the 1980s. It was created by Liu Han-Chieh, a

Taiwanese tea business owner, and Lin Hsiu Hui, his product project coordinator. Different

components like as fruits, syrups, and tapioca pearls were added to various tea with milk drinks to

create the milk tea that we currently know (Lee, 2019).

According to the article of Pinoyentre (2014), Dakasi has been offering fresh tea drinks in

Taiwan since 1990. It launched outlets in Guangzhou, China, in 1999 and subsequently established

its headquarters there. Outlets have grown across China and Southeast Asia after more than a

decade of effort. It's currently a very prominent brand in China, and it's the most popular among its

competitors. Dakasi adheres to the "customer first" and "service first" principles. It upholds the

business concept of quality, continuous improvement, and innovation with the goal of achieving

100 percent customer satisfaction and increasing the business's economic efficiency, in which it has

achieved outstanding results and received praise from all sectors of society, making Dakasi a one-

of-a-kind tea drink enterprise. Taiwanese people's favorite beverage is pearl milk tea or bubble tea,

as well as distinctive Taiwanese style fresh tea beverages. These delicious, refreshing beverages

have taken the globe by storm. Mr. Luo, Dakasi's intelligent and visionary creator, has dedicated

himself to guiding the Dakasi Tea Drink Industry toward this global trend, producing its own

distinctive goods, offering authentic and high-quality products, and instituting a cooperative

working model. The goal of Dakasi Philippines is to create a countrywide chain of gourmet

beverages. Dakasi's beverages are created with fresh ingredients and include minimal to no

artificial flavors or additives. We take pleasure in our own tea, pearls, and sugar cooking recipes,

which ensure a unique flavor. We aspire to make milk teas an integral part of Filipinos' everyday

life with our fresh, innovative, and convenient beverages. Today, Dakasi is constantly creating new

goods to meet market demand. Every new product that enters the market is the result of the people
of Dakasi's hard work and brilliant ideas. Each product is subjected to Mr. Luo's thorough

ingredient selection, technical expertise, and refined taste. Every invention is born from the desire

to create a unique drink for a particular friend or loved one.

Customer Satisfaction

Customer satisfaction measures how successfully you, as a product or service provider,

meet your customers' requirements and expectations. This rule should apply to all interactions

before, throughout, and after the transaction. Customer satisfaction refers to how people behave

while making choices about how to spend their money on products and services. Because these

habits are so flexible and change so quickly in such a short period of time, they are typically

unmanageable by marketers. Four key elements influence buyer characteristics: cultural, social,

personal, and psychological considerations. The customers' culture and subculture are included in

cultural factors. It encompasses a person's underlying beliefs, perceptions, preferences, and

behaviors that they learn through their families and other important institutions. A buyer's behavior

is also influenced by social variables. Product and brand selections are heavily influenced by a

person's reference groups, which include family, friends, service groups, and professional

connections. Furthermore, psychological aspects like as motivation, perception, learning, and

beliefs and attitudes give a unique perspective on the buyer's thinking. Finally, the buyer's age,

stage in life, employment, education, and financial situation are all personal aspects that impact his

or her purchasing choices. Understanding consumer behavior is complex; as a result, marketers

must comprehend these differences and adjust their products and marketing programs to meet the

demands of consumers in order to achieve long-term success, because long-term success is

achieved by generating satisfactions by knowing and appreciating the needs and wants of

customers (Lee & Sardina, 2014).

Service quality: assurance, empathy, reliability, responsiveness, tangibility

 According to Pakurar et al. (2019), a detailed customer review of a given service and the

amount to which it fulfills their expectations and offers satisfaction is referred to as service quality.

The SERVQUAL model, which includes the dimensions of reliability, empathy, responsiveness,

assurance, and tangibility, is primarily utilized as a multi-dimensional research method for

customer satisfaction. Employees' civility and expertise, as well as their ability to impart

confidence and trust to consumers, have been termed as assurance. Researchers have differing

views on how assurance should be ranked among service quality aspects. Assurance entails

informing and listening to clients in their local language, regardless of their educational level, age,

or ethnicity. Employee attitudes and conduct, as well as the staff's capacity to deliver pleasant,

discreet, polite, and competent services, are all indicators of assurance. Customers must believe

that the entity delivering services prioritizes them. Caring, giving personal attention, and delivering

services to consumers are all examples of empathy. Empathy is defined as the ability to transmit

the sense that the consumer is unique and special. The term "reliability" refers to an organization's

ability to provide a service accurately the first time. Furthermore, it demonstrates that businesses

attempt to keep their commitments and pay attention to the outcomes. The SERVQUAL service

quality model classifies reliability as the first dimension. The first component of the service quality

model is reliability. According to willing workers, customer responsiveness entails informing

consumers when things will be completed, providing them with uninterrupted attention, advertising

services, and reacting in line with their wishes. Tangibles in the sense of physical facilities

(equipment, personnel, and communications materials). Customers will evaluate the quality of a

service based on the physical appearance of the service. Material things are those that can be

touched or felt such as actual buildings, tools, and machinery that are utilized to supply the service,

as well as representations of the services such as statements, cards (debit and credit), transaction

speed, and efficiency. A number of advantages are included in tangibles, such as the outward look

of the bank, the presence of bank counters, the availability of overdraft facilities, the hours of

operation, and the speed and efficiency of operations.

Statistical Treatment

The researchers used statistical tools such as frequency count, weighted

mean, and standard deviation in analyzing the data of the study.

Weighted mean and standard deviation was used to measure the

customer satisfaction; the level of service quality in terms of assurance, empathy,

reliability, responsiveness, and tangibility of the participants.

SCORE INTERPRETATION VERBAL INTERPRETATION

This shows that the participants
are expecting very high
expectations towards the service
3.26 - 4.00 Very High
quality in the Fast-food chain
restaurant.

This shows that the participants

are expecting high expectations
2.51 - 3.25 High
towards the service quality in the
Fast-food chain restaurant.

This shows that the participants

are expecting moderately high
Very Low expectations towards the service
1.76 - 2.50
quality in the Fast-food chain
restaurant.

This shows that the participants

are not expecting high
expectations towards the service
1.00 - 1.75 Low
quality in the Fast-food chain
restaurant.
 Table 1. Descriptive interpretation of customer satisfaction

Table 2. Descriptive interpretation of service quality in terms of the assurance.

SCORE INTERPRETATION VERBAL INTERPRETATION

This demonstrates that the
participants are extremely
3.26 - 4.00 Very High satisfied with the assurance of the
personnel. Personnel were very
knowledgeable, confident, and
provide safety for the customers.
This demonstrates that the
2.51 - 3.25 High participants are satisfied with the
assurance of the personnel.
Personnel were knowledgeable,
confident, and provide safety for
the customers.
This demonstrates that the
1.76 - 2.50 Very Low participants are slightly satisfied
with the assurance of the
personnel. Personnel were
slightly knowledgeable,
confident, and provide safety for
the customers.
This demonstrates that the
1.00 - 1.75 Low participants are not satisfied with
the assurance of the personnel.
Personnel were not
knowledgeable, confident, and
did not provide safety for the
customers.

Table 3. Descriptive interpretation of service quality in terms of empathy.

SCORE INTERPRETATION VERBAL INTERPRETATION
This demonstrates that the
participants are very satisfied
with the employees' empathy for
consumers. The employees had
definitely proved their ability to
3.26 - 4.00 Very High provide personalized service,
customer care, and understanding
of the customer's demands, as
well as being convenient.
This demonstrates that the
participants are satisfied with the
employees' empathy for
consumers. The employees had
2.51 - 3.25 High proved their ability to provide
 personalized service, customer
care, and understanding of the
customer's demands, as well as
being convenient.
This demonstrates that the
participants are very satisfied
with the employees' empathy for
consumers. The employees had
1.76 - 2.50 Very Low slightly proved their ability to
provide personalized service,
customer care, and understanding
of the customer's demands, as
well as being convenient.
This demonstrates that the
participants are very satisfied
with the employees' empathy for
consumers. The employees did
not prove their ability to provide
1.00 - 1.75 Low
personalized service, customer
care, and understanding of the
customer's demands, as well as
not
being convenient.
Table 4. Descriptive interpretation of service quality in terms of reliability.

SCORE INTERPRETATION VERBAL INTERPRETATION

This demonstrates that the
participants are highly satisfied
with the personnel's reliability
toward customers. The employees
3.26 - 4.00 Very High have definitely proven a flawless
track record by delivering the
service on time and beyond the
customers' expectations.
This demonstrates that the
participants are satisfied with the
personnel's reliability toward
customers. The employees
2.51 - 3.25 High moderately proved a flawless
track record by delivering the
service on time and beyond the
customers' expectations.

This demonstrates that the

participants are slightly satisfied
with the personnel's reliability
toward customers. The employees
1.76 - 2.50 Very Low have slightly proven a flawless
track record by delivering the
service on time and beyond the
customers' expectations.

This demonstrates that the

participants are not satisfied with
the personnel's reliability toward
customers. The employees did
1.00 - 1.75 Low not prove a flawless track record
by not delivering the service on
time and not beyond the
customers'
expectations.
Table 5. Descriptive interpretation of service quality in terms of responsiveness.
SCORE INTERPRETATION VERBAL INTERPRETATION
This shows that the participants
are definitely desiring prompt,
responsive, willing, and quick
3.26 - 4.00 Very High personnel to meet the service
quality of a Fast-food chain
restaurant.
This shows that the participants
are moderately desiring prompt,
responsive, willing, and quick
2.51 - 3.25 High personnel to meet the service
quality of a Fast-food chain
restaurant.
This shows that the participants
are somehow desiring prompt,
responsive, willing, and quick
1.76 - 2.50 Very Low personnel to meet the service
quality of a Fast-food chain
restaurant.
This shows that the participants
are not desiring prompt,
responsive, willing, and quick
1.00 - 1.75 Low personnel to meet the service
quality of a Fast-food chain
restaurant.

Table 6. Descriptive interpretation of service quality in terms of tangibility.

SCORE INTERPRETATION VERBAL INTERPRETATION
This demonstrates that the
participants are very satisfied
with the tangible products as well
as the appearance and layout of
the Fast- food establishment. The
3.26 - 4.00 Very High establishment had current
equipment, aesthetically attractive
surroundings, and cleanliness of
the facility.
 This demonstrates that the
participants are satisfied with the
tangible products as well as the
appearance and layout of the
2.51 - 3.25 High Fast- food establishment. The
establishment had current
equipment, aesthetically attractive
surroundings, and cleanliness of
the facility.
This demonstrates that the
participants are slightly satisfied
with the tangible products as well
as the appearance and layout of
1.76 - 2.50 Very Low the Fast-food establishment. The
establishment had the least
current equipment, least
aesthetically attractive
surroundings, and was
slightly clean of the facility.
This demonstrates that the
participants are not satisfied with
the tangible products as well as
the appearance and layout of the
Fast- food establishment. The
1.00 - 1.75 Low establishment does not have
current equipment, not
aesthetically attractive
surroundings, and the facility was
not clean.

RESULTS AND DISCUSSIONS

This chapter assists the readers to comprehend the results of this study. It was discussed

with the reference of objective of the study that also included determining the level of service
quality and the level of customers’ satisfaction of the selected Dakasi Milk Tea Shop in Pavilion,

Binan City Laguna.

Level of Service Quality

The level of service quality in Dakasi Milk Tea Shop Pavilion, Binan City Laguna in terms of

assurance, empathy, reliability, responsiveness and tangibility was presented bellow in Table 7.

Table 7. Descriptive interpretation of customer satisfaction.

CUSTOMER WEIGHTED STANDARD INTERPRETATION
SATISFACTION MEAN DEVIATION
Assurance
3.21 0.54 High

Empathy
3.11 0.56 High

Reliability
3.11 0.54 High
Responsiveness
3.11 0.51 High

Tangibility

3.23 0.53 High

GRAND MEAN 3.29 0.74 High

Assurance. The study revealed that the Dakasi Milk Tea Shop Pavilion got a total of 3.29 weighted

mean and 0.74 standard deviation which was interpreted as high. This shows that Dakasi Milk Tea

Shop have successfully met the expectations of the customers in terms of assurance. It means that

the customers was feel safe and satisfied to the services of the milk tea shop in terms of assurance

in the services.

In the study of Parasuraman (1988) the assurance dimension in SERVQUAL refers to the

knowledge and courtesy of employees and their ability to inspire trust and confidence and also

indicates all the attitude of a personnel on a certain establishment. Providing customer assistance in

a courteous manner, accuracy in completing orders, easy access to account details, convenience

within the bank, maintaining precise records and quotations, employing an experienced
professional team, and fulfilling promised services will have a positive impact on customer

satisfaction (Sadek, D.M Zainal, N.S.; Taher, M.S.I.M.;Yahya, A.F. Shaharudin, M.R.; Noordin,

N.; Zakaria, Z.; Jusoff, K.).

Empathy. The study revealed that the Dakasi Milk Tea Shop Pavilion got a total of 3.11 weighted

mean and 0.56 standard deviation which was interpreted as good. This shows that Dakasi Milk Tea

Shop have moderately met the expectations of the customers in terms of empathy. It means that the

employees in the Dakasi Milk Tea Shop has taking good care their customers and they meet their

customers’ needs.

Empathy is one of the crucial part of a business Enew.C (2013) stated that empathy means being

attentive in communicative situations, understanding customer needs, showing friendly behavior,

and taking care of a customer's needs individually. Empathy is important to a business because

understanding customer expectations better than competitors and the provision of care and

customized attention to customers strongly influences the level of customer satisfaction Pasuraman

(1988).

Reliability. The study revealed that the Dakasi Milk Tea Shop Pavilion got a total of 3.11 weighted

mean and 0.54 standard deviation which was interpreted as good. This shows that Dakasi Milk Tea

Shop have moderately met the expectations of the customers in terms of Reliability. It means that

that the Dakasi Milk Tea Shop Pavilion providing and follow the right quality of services as they

promised to their customers.

It was proven that reliability is important on a business Parasuraman (1988) has defined

reliability as the organization's capability to tool up the service, dependently and independently. As

a standard of service quality, reliability has a significant impact on customer satisfaction. Taking

actions to solve problems, performing the required services right from the first occasion, or

providing services at the proper time are critical. Maintaining an error-free record is the paradigm
of reliability in terms of service quality, and has an important impact on customer satisfaction.

Responsiveness. The study revealed that the Dakasi Milk Tea Shop Pavilion got a total of 3.11

weighted mean and 0.51 standard deviation which was interpreted as good. This shows that Dakasi

Milk Tea Shop have moderately met the expectations of the customers in terms of Responsiveness.

It means that the Dakasi Milk Tea Shop Pavilion has provided a quick action on customers’ needs

and wants.

Responsiveness has a huge influence on a business growth. Responsiveness is related to the

organization’s willingness and ability to help customers, and to provide quick service with proper

timeliness Parasuraman (1988). (Kant, Krishnamurthy, Selvakumar, Lau) stated that we can state

that the responsiveness dimension of service quality will strongly influence customer satisfaction in

banking and therefore, the research proposes the following hypothesis.

Tangibility. The study revealed that the Dakasi Milk Tea Shop Pavilion got a total of 3.23

weighted mean and 0.53 standard deviation which was interpreted as good. This shows that Dakasi

Milk Tea Shop have moderately met the expectations of the customers in terms of Tangibility. It

means that the customers were satisfied on the product that provided and the appearance of the

establishment.

Tangibility is important in a business Pasuraman (1988) have defined tangibility as the

appearance of physical facilities, equipment, personnel, and communication materials. It may also

be defined as the clear visibility of resources necessary for providing a service to customers, the

appearance of the management team and professional employees, brochures and booklets, which

will have an effect on customer satisfaction. And Anath(2010) found that attractiveness, physical

facility, and visual appeal could be considered positive indicators of tangibility on customer

satisfaction.

Level of Customers Satisfaction

 The level of customers’ satisfaction in Dakasi Milk Tea Shop Pavilion was presented below

in Table 8.

CUSTOMER WEIGHTED MEAN INTERPRETATION

SATISFACTION

Level of Customer
Satisfaction 3.04 High

Level of Customers Satisfaction. The study revealed that Dakasi Milk Tea Shop Pavilion got a

total of 3.11 and a 0.55 standard deviation which was interpreted as satisfied. This shows that the

participants feel that they are happy and satisfied dining in Dakasi Milk Tea Pavilion. It means that

the Dakasi Milk Tea Shop Pavilion has meet the customers’ expectations and needs on buying a

product in the establishment.

The business needs to maintain the customers’ satisfaction in their establishment because it

one of the critical part of a business. Coldwell (2001) stated that satisfied customers form the

foundation of any successful business as customer satisfaction leads to repeat purchase, brand

loyalty, and positive word of mouth. Satisfied customers are most likely to share their experiences

with other people to the order of perhaps five or six people. Equally well, dissatisfied customers are

more likely to tell another ten people of their unfortunate experience Zairi (2000).
 CONCLUSIONS

After gathering all the data from the online survey, the researchers concluded that the study

successfully achieved its objectives.

This study measured the level of service quality and level of customer satisfaction toward

the selected milk tea shop. It was identified that service quality is needed to be consider for

customers of Dakasi Milk Tea Shop Pavilion when it comes to providence if quality service. In line

with this, the milk tea shop could provide the needs of customers when it comes to service quality

and handling complaints that may arise.

The level of service quality is important to be considered as customers must be satisfied

from the milk tea shop. If the service quality goes inconsistently, customers might find the milk tea

shop unreliable and might lose regular customers. As a result of the study, the participants were

satisfied in terms of the level of satisfaction. A significant relationship between the level of service

quality and level of satisfaction was found. There is a connection between the level of service

quality and level of satisfaction.

 RECOMMENDATIONS

Most recommendations were derived from the results of the study, wherein milk tea shops,

employer, employee, future researcher, marketer, investors and entrepreneurs can use the study

findings as sources as this also accept improvements.

First, the company of Dakasi Milk Tea Shop Pavilion, the researchers recommended that

the company must pay attention to what customers satisfaction from them in terms of service

quality, especially since they are one of the leading brand of tea drinks in selected countries.

It is important to be consistent in providing good quality while serving their customers at

all times because, according to the results, customers are satisfied with the provision of high-

quality service. The personal involvement of customers during service consumption has a

significant impact on how customers perceive the service. This will contribute to their post-

consumption evaluation of the company's service. If they received excellent service and their

expectations were met or exceeded, they may decide to make a repeat purchase in the future.

The company must also be aware of any discrepancies that may exist between the

company and their employees, between the company and their customers, or between their

employees and their customers. Having discrepancies in the business puts it at a disadvantage

against competitors, especially if they are not addressed quickly.

Furthermore, the researchers advised the company to properly train their employees in

order to ensure that they handled customers appropriately and professionally and that the

company's services were delivered well to the customers. It is essential for the company to value

its employees because they are the ones who represent the entire company to customers, which

means that their performance has an impact on how customers assess the company.
 Moreover, they should keep proving their reliability in providing services and

responsiveness in satisfying their needs. They should also prove that they genuinely understand

their customer, and that no matter what the situation is, they must always show empathy towards

them. It is also advisable to provide more tangibility so that they feel valued as a customer. This

will also entice them to return to the business. And lastly, it is suggested that the company always

provide assurance to their customers, assuring them that the company will do their best to provide

the best quality service that they can offer.

There are numerous factors that a company should consider in order to achieve and

maintain success in the industry. One of the most important things to remember is to maintain

Total Quality Management. The company and each employee must always strive to provide the

highest level of service to their customers at all times.

Lastly, the customers, it is recommended that they continue to express their expectations

from the company so that they can gain a better understanding of their customer's perspective on

the business. It is also advisable to be more open- minded and honest when criticizing their

services, as this will eventually help the company see what needs to be improved in their business

and also for them to understand their needs as a customer. Honest communication between the two

parties will benefit in the creation of a better understanding and a healthy business environment.
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 LIST OF APPENDICES

Appendix 1

Survey Questionnaire

CUSTOMER SATISFACTION AND SERVICE QUALITY

OF DAKASI MILK TEA SHOP PAVILION BINAN CITY, LAGUNA

Good day!
We are Alexa Mae S. Capillo, Louchelle A. Cacatihan, Jose Joshua G. Mazo,
Hospitality Management students of the Cavite State University – Carmona Campus.
We are conducting a research study titled “Customer Satisfaction and Service Quality
of Dakasi Milk Tea Shop Pavilion Binan City, Laguna”.
In line with this, we have chosen you as our participants to answer the
prepared questionnaire. Any information obtained from this study that can be
identified with you will remain confidential.
Thank you for your participation!