Review of Related Literature and Studies A. Related Literature Milk Tea

Chapter II
REVIEW OF RELATED LITERATURE AND STUDIES
A. Related Literature
Milk Tea
Nowadays, the taste and preferences of customers have become complex.
Because of the belief that if the company can offer a product that patrons will purchase
it, that is why many businesses concentrate on developing and perfecting the product.
There are, however, plenty of other variables that can lead to the success of
performance of the organization.
Milk tea is a famous tea-based drink that originated in Tainan and Taichung,
Taiwan, in the 1980s. It was invented by a Taiwanese tea shop owner, Liu Han-Chieh,
and his product development manager, Lin Hsiu Hui. The milk tea that we know today
was discovered by adding different ingredients such as fruits, syrups, and tapioca pearls
into different tea with milk beverages.
Milk tea first gained popularity in the 1990s throughout Asia and became more
popular in the United States and Europe in the 2000s. The popularity turned into a
global phenomenon due to the versatility and flexibility of the toppings and flavor
combinations that consumers could choose from. With the global phenomenon of milk
tea, it eventually hit the market with a $2.4 billion value in 2019 and is estimated to
reach $4.3 billion by 2027.

According to Colonel Sandpiper Perso (2018), Milk tea is one of the trends and
most purchased beverages at the present. Milk tea is popular not only because of its
health benefits, but also because of its special blend and taste, no wonder why many
customers are addicted to it. New generations of consumers have fallen in love with this
new product trend. It is a combination of milk and tea that comes with various flavors
and ingredients as well.
In addition, according to ShiZuoHua (2013), Milk tea can illustrate the market to a
broad prospect. Milk tea was popular among the young generation because it combined
the taste of tea and milk. According to Supranes (2019), more than 23,000 Twitter and
Instagram posts were analyzed in this study to explain the rivalry between
Pizza
COVID-19 pandemic has spread around the world and affected the development
of economic countries. Some countries and states are under hotspot areas. During the
lockdown period, many organizations were forced to close their businesses, causing
economic recession. In addition, many companies have seen a sharp decline in their
sales and affecting their profits. Due to the COVID-19 pandemic, many restaurants have
started their service with takeaway or delivery, however they still unable to sustain their
business, especially the small and medium-sized enterprises (MSMEs). This study aims
to study the strategies used by pizza shops in sustaining their business during the
COVID-19 pandemic. The results showed the strategies used by pizza company for
business survival during the COVID-19 pandemic are promotions and provided quality
foods and there is a significant relationship between promotions and the preference for
Domino’s Pizza.
Factors Purchasing of Milk Tea and Pizza shops

According to Yang Han (2018), The brand has specialties in ingredients,
sweetness and the regulation of cold and heat; paying attention to the price factor. Milk
tea shops concentrate on picture elements. Milk tea shops attract new customers at a
low price, raising price with the addition of more ingredients to acquire the market
surplus, what’s more, it also beats other rivals with different types of cups in the same
price aspect. Milk tea shops pay more attention to product ingredients, the taste of milk
tea is highly individualized, and it has a distinctive packaging style.
On the other hand, as stated in the study, marketing campaigns are the product
of inquiries into consumer behavior that help advertisers satisfy customers. The 5Ws
and 1H, including who, what, where, when, why and how, were designed to explore the
7 characteristics of customer behavior and to evaluate possible sensitive distribution
and promotion marketing strategies (Wongleedee, 2015).
Place
According to Dawood (2016), the location or place covers topics such as
distribution networks, consumer coverage, product inventory, transportation and
distribution sites. Due to the importance of the product and the consumption occurring
at the same time and at the same place, a company should pay attention to place
decisions; a location that offers all consumer information, competition, promotional
action, and marketing tasks. It should pay attention to how the product can be delivered
at the right time and at the right location, and which channel to deliver the product
should be used.
Also, as found in the study of Manafzadeha et al (2012), place includes the
operations of businesses that make the goods available to target customers and include
distribution networks of goods, coverage of goods, sorting of goods, locations of supply,
inventory and amount of inventory and transport.
Product
Shariff et al (2016) stated that the asserted product attributes (labels, brand,
appearance, functionality, price, and taste) were positively associated with consumer
satisfaction and desired brand retention.
The product is the total bundled advantages that a consumer receives in an
exchange process. Also, products have seven elements, according to Kotler and
Armstrong (2016), namely variety, quality, style, features, brand name, packaging, and
services.
In addition to having good product design, a product needs good packaging to
increase the awareness of a brand by customers. Packaging refers to the product's
packaging or wrapper design (Kotler & Armstrong, 2016).
Price
Kienzler (2018) indicated that the business owner will gain competitive
advantage, raise profits, and ensure customer service and customer loyalty through
more value-based pricing innovation. Offering various price points and product types will
allow the owner of a small business to expand their business.
Maguire (2018), in her study revealed that a successful pricing strategy lets you
assess the price point at which sales of your goods or services will maximize profits. A
business owner must weigh a wide variety of variables, including manufacturing and
delivery costs, competitive deals, positioning strategies and the target consumer base of
the company, when setting prices.
Furthermore, according to Jesnoewski (2018), Nothing in business, like pricing
your goods and services, may cause uncertainty and doubt. Although you don't want to
pay for your value, you don't want to price yourself out of the market, so how would you
know if the price is right? According to Pofeldt (2018), It takes bravery to raise your
rates, but whether you're a freelancer, a solopreneur, or operating a small service
company, it's sometimes the only way to maximize sales. But without losing your
customers, it is possible to do it.
In addition, Zahorsky (2018), pointed out that your small company's pricing policy
will eventually decide your destiny. By paying careful attention to their pricing strategies,
small business owners will ensure sustainability and longevity. The pricing policy has
usually been to be the lowest price supplier on the market in business plans.
Moreover, price plays an important role in shaping the actions of clients and has
been extensively discussed in marketing literature. Price knowledge is a degree that
indicates how often consumers rely on paying lower prices and finding lower prices is
one of the habits that prevails to gain a profit (Rahpeima et al., 2014).
As stated by Sumi and Karir (2018), The price is the monetary value of the
commodity that has a substantial impact on a customer's decision-making process. If all
external factors or advantages of a commodity remain the same, the price is considered
a measure of quality. From the viewpoint of a buyer, something lost or compromised to
achieve a product is the price of the product.
Norfarah, Koo, and Siti-Nabiha (2018) have pointed out that High-priced goods
offer the price-conscious customer an unfavorable impression. It plays both positive and
negative roles in influencing consumer’s behavior.

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Chapter II

REVIEW OF RELATED LITERATURE AND STUDIES

Nowadays, the taste and preferences of customers have become complex.

performance of the organization.

into different tea with milk beverages.

reach $4.3 billion by 2027.

and ingredients as well.

Factors Purchasing of Milk Tea and Pizza shops

tea is highly individualized, and it has a distinctive packaging style.

7 characteristics of customer behavior and to evaluate possible sensitive distribution

and promotion marketing strategies (Wongleedee, 2015).

According to Dawood (2016), the location or place covers topics such as

distribution networks, consumer coverage, product inventory, transportation and

decisions; a location that offers all consumer information, competition, promotional

distribution networks of goods, coverage of goods, sorting of goods, locations of supply,

inventory and amount of inventory and transport.

satisfaction and desired brand retention.

The product is the total bundled advantages that a consumer receives in an

In addition to having good product design, a product needs good packaging to

increase the awareness of a brand by customers. Packaging refers to the product's

packaging or wrapper design (Kotler & Armstrong, 2016).

allow the owner of a small business to expand their business.

the company, when setting prices.

Furthermore, according to Jesnoewski (2018), Nothing in business, like pricing

rates, but whether you're a freelancer, a solopreneur, or operating a small service

customers, it is possible to do it.

been extensively discussed in marketing literature. Price knowledge is a degree that

commodity that has a substantial impact on a customer's decision-making process. If all

a measure of quality. From the viewpoint of a buyer, something lost or compromised to

achieve a product is the price of the product.

negative roles in influencing consumer’s behavior.

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