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International Journal of Tourism & Hospitality in Asia Pasific
(IJTHAP) Vol. 5 No. 2, pp.20-37, June, 2022
E-ISSN: 2654-7945 P-ISSN: 2685-8800
https://www.ejournal.aibpmjournals.com/index.php/IJTHAP
INTRODUCTION
Nestle is the world’s largest fast-moving consumer goods company and has set
factories all around the world including Asia, America, Africa, Europe, and
Oceania. Nestles’ popularity is shown in the diversity of customers around the
world and because of that, they’re aware of the significance of customer
satisfaction can lead to brand loyalty. Among the most relevant and good
marketing strategies, customer satisfaction is the main key to creating customer
and brand loyalty. Ruiz et al. (2020) say that Brand loyalty is one of the key
elements of success in any organization, in the context of high international
competition and consumer awareness. Hence, in this study, the relationship
between customer satisfaction and brand loyalty will be analyzed with a few
variables that also create dependent variables, which are perceived value,
perceived quality, marketing, brand image, and customer expectation. Customers
that have high expectations will be happy and willing to pay more for the
advantages and consistency of their trusted company which will lead to profitability
for the company (Shahroodi, 2015). The fact is customers will buy and consider
buying goods that fulfill their needs and wants to be based on money, therefore
Nestle has set their prices on the standard of a commodity that can retain the
customer and make a long-term connection with them. Moreover, loyal customers
can continue to be potential consumers by providing and sharing information about
Nestle goods and services (Khadka & Maharjan, 2017). Furthermore, the faith of
each customer will stay if the perceived value and quality are comparatively better
than the competitor’s products.
In 2019 when the world’s economy becomes uncertain and there are climate
challenges, the chairman of Nestle Malaysia managed to push through to report a
further year of progress and build more potential products for long-term growth.
Nestle has committed to developing a sustainable, polite, and eco-friendly way
(Nestlé Malaysia, 2019b). However, a few major projects in the enhancement of
raw materials that won’t let Nestle gains more achievement included the
construction that set up the largest MILO processing site globally and successfully
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implemented the divestment of the Chilled Dairy Company. Also, for financial
performance, Nestle delivered revenue of RM5.5 billion at the same time as the
prior year, with a net profit of RM 673 million in 2019 (Nestlé, 2019a). Moreover,
the recent Recovery Movement Control Order has announced and dragged down
the business operations as people were asked and must stay home for the safety
of Malaysia. This situation has made Nestle announce the program called Rose
with Nestle which is held to support local coffee shops and small restaurants that
are impacted by Covid-19.
Furthermore, Nestle has adapted and set out emerging patterns by increasing
home consumption and taking care of their customers’ well-being. Nestle also
organizes health campaigns annually in 2020 and this event underlines the
importance of the walk towards heart health initiated
by Nestlé Omega plus (Hassandarvish, 2020). Brand loyalty is the basis of human
survival in buying goods regularly. However, customer purchasing decision-
making is often considered a Nestle brand of customer sales, such as perceived
value, perceived quality, marketing, brand image, and customer satisfaction.
Nevertheless, this academic literature will continue to investigate the effect of the
antecedents of satisfaction on overall customer satisfaction. Therefore, the main
goal of this article is to analyze the relationship between the main antecedents of
customer satisfaction and brand loyalty in Nestle namely perceived value,
perceived quality, marketing, brand image, and customer satisfaction.
Understanding how all the variables influence the formation of consumer
satisfaction and brand loyalty is crucially important in gaining more shares and
profits.
LITERATURE REVIEW
Perceived Value
Perceived value is the customer's evaluation of the advantages of a product or
service, and its capacity to meet their demands and expectations, particularly in
comparison with its equals. Marketing professionals attempt to affect customers'
perceived value of a product by describing the properties that make it excellent to
the competition. Perceived value has been considered one of the most important
concepts for understanding customers in the service industry (Ostrom & Iacobucci,
1995; Jensen, 1996). Among the various dimensions of value, those most utilized
in recent marketing literature are hedonic and utilitarian values (Babin, Darden, &
Griffin, 1994; Jones, Reynolds, & Arnold, 2006; Park, 2004; Voss, Spangenberg,
& Grohmann, 2003). The pricing of products takes perceived value into items. In
some examples, the price of a product or service may have more extra to do with
its passionate interest than with the original cost of production. Recent research
related to ethnic restaurants has merely paid attention to customers’ perceptions
about the ethnic food or the ethnic restaurant itself (Chen & Bowen, 2001; Jang,
Ha, & Silkes, 2009; Josiam & Monteiro, 2004).
Perceived Quality
The advantage of a product, quality, how fresh it matches the expectations of
customers, and its price for other comparable products are important parts of
perceived value. Customers are quick to give their impression of a product or
service based on how great it has satisfied them and how worth it cost. A restaurant
is a place where customers satisfy their hunger as well as experience excitement,
pleasure, and a sense of personal well-being (Finkelstein, 1989). Therefore, the
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International Journal of Tourism & Hospitality in Asia Pasific
(IJTHAP) Vol. 5 No. 2, pp.20-37, June, 2022
E-ISSN: 2654-7945 P-ISSN: 2685-8800
https://www.ejournal.aibpmjournals.com/index.php/IJTHAP
Marketing
Marketing is an action, set of organizations, and processes for planning,
communicating, delivering, and exchanging offerings that have costs for
customers, clients, partners, and society at large. Influencer marketing
concentrates on leveraging individuals who have influence over possible clients
and determining marketing activities around these individuals to encourage a
brand message to the larger market. Relationship marketing commits to plans and
techniques for segmenting users to build loyalty. Association marketing leverages
database marketing, behavioral promotion, and analytics to aim at consumers
specifically and creates loyalty applications. Viral marketing is a marketing
appearance that facilitates and supports people to cross along with a marketing
message because the number of people proved to a message simulates the
process of passing a virus or disease from one person to another. Green marketing
leads to the improvement and marketing of environmentally secure products (i.e.,
designed to reduce negative effects on the physical environment or to improve
their quality). Keyword marketing includes placing a marketing communication in
front of users based on the keywords and phrases they are using to search.
Marketing can help your business in countless ways but let’s look at a few of the
most impactful ones.
1. Raising Brand Awareness
2. Generating Traffic
3. Increasing Revenue
4. Building Trust in Your Brand
5. Tracking Your Metrics
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Brand Image
Brand Image is how clients think of a brand. It can be defined as the understanding
of the brand in the minds of the customers. This image improves over time.
Customers form an image based on their communications and participation with
the brand. This cooperation takes place in many patterns and does not significantly
include the purchase or use of products and services, and so the attitude of the
brand in the mind of the customer. It is an aggregate of beliefs, ideas, and opinions
that a customer holds concerning the brand. Every Company attempts to build a
strong image as it helps in accomplishing their business motives. A powerful brand
image has subsequent advantages.
1. More profits as new clients are pulled to the brand.
2. Easy to interject new products under the same brand.
3. Boosts the confidence of existing customers. Helps in retaining them.
4. Better Business-Customer association.
Customer Satisfaction
The most important part of the business is customer satisfaction. It is a
measurement that defines how glad customers are with a company’s products,
services, and competencies. Client satisfaction information can help a company
determine how to progress or change its products and services, including surveys
and ratings. This element can be applied to industrial firms, retail businesses,
government bodies, service companies, and nonprofit organizations. To achieve
the level of satisfaction, companies have to contemplate the needs and desires of
customers, then supply outstanding products and services to every subgroup
within an organization. Basically, satisfaction is a speedy or quick experience of
the customers after using the product, through which the overall satisfaction can
be assessed (Lam, Shankar, Erramilli, & Murthy, 2004; Tian, 1998; Yang, 2004; Li
& Vogelsong, 2003). A lot of businesses underestimate the price of receiving a
new customer, saying that it is much more cost-effective to invest in retaining
existing customers rather than continually chasing new ones. If you concentrate
on customer satisfaction, then those that buy from you are much more likely to buy
from you again.
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This increases the lifetime cost of that customer, i.e., the amount they spend with
you up to their whole lifetime. Practical studies illustrate that satisfaction is the
predecessor of brand loyalty, intention to repurchase the product, and behavior of
a brand towards its customers (Oliver, 1980; Pritchard et al., 1999; Russell-
Bennett et al., 2007). When customers keep purchasing from you, the return on
investment from their client acquisition cost will be increasing. Satisfied customers
are more loyal and constant customers are more profitable for your company. What
do satisfied customers look like? Everyone will think your store offers an
inexpensive solution and delivers it well. Then, people say nice things about you.
But although they may have some warm feelings for your business, they’re not yet
an advocate for your brand. Unlike a very loyal customer, they will still be proposed
apart. Marketing researchers also distinguish between transaction-specific and
cumulative consumer satisfaction (Johnson et al.,1995; Andreassen, 2000).
Transaction-specific consumer satisfaction is a post-consumption evaluative
judgment of a specific purchase occasion (Oliver, 1980).
Brand Loyalty
Defined as Positive association consumers add to an appropriate product or
brand. Guests who demonstrate brand loyalty are applied to a product or service,
which is demonstrated by their reprise purchases despite challengers' sweats to
bait them down. Pots invest significant quantities of plutocrat in client service and
marketing to produce and maintain brand fidelity for an established product. Coca-
Cola Company is an illustration of an iconic brand that has redounded in guests
demonstrating brand fidelity over the times despite Pepsi's products and
marketing sweats.
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(IJTHAP) Vol. 5 No. 2, pp.20-37, June, 2022
E-ISSN: 2654-7945 P-ISSN: 2685-8800
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RESEARCH METHOD
The goal of this study is to find out how satisfied customers are with Nestles’
products and how loyal they are to the brand. The researchers also investigate
perceived value, perceived quality, marketing, brand image, and customer
satisfaction toward Nestle brand. The researchers have used a Google form to ask
a few questions regarding the Nestle brand as part of this research. The question
was posed in a Google form and was answered by 150 people who participated
and helped fill in the Google form. From friends, family members, and the public,
the researchers gathered data on customer sentiment. The researchers sent a
Google link to them over WhatsApp and Telegram, and they were able to access
it. When it comes to collecting data, online surveys are the most convenient and
effective tool to utilize customer satisfaction and brand loyalty and keep us away
from Covid-19. To begin, the researchers gathered data on customer satisfaction
and brand loyalty for Nestle products using a questionnaire, the results will
represent consumer perceptions, satisfaction, and views towards Nestle brand.
The Google form survey is the researcher’s main source of information, and it has
made important contributions to most of the discussion in this research. The survey
is divided into eight sections, with three to four questions provided below each
segment. According to their opinion of Nestle products, consumers are asked to
score the facts that have been revealed in the survey on a scale ranging from
strongly disagree to strongly agree, with the highest rating being strongly agreed.
For each scale item, the vocal statement 'strong disagree' was used to anchor the
scale item at the number 1, and the verbal statement 'strongly agree' to anchor the
scale item at the numeral 5. Furthermore, the researchers are concentrating on the
Nestle product customer, and the poll was available to people of various genders,
ages, and all sorts of occupations. However, while the researchers did not identify
the country of the respondents, the vast majority of them are Malaysian
consumers.
In the first portion of the Google form survey, the researchers asked respondents
about their demographic information, such as their age, gender, ethnicity, and job
status, which the researchers gathered. Following the demographic portion, the
respondent will be asked to complete the second section, which will include
questions concerning consumer satisfaction with Nestle products in the aspects of
pricing, packaging, and overall satisfaction with the product when it is consumed
by the respondent. Third, the brand loyalty section will gather information regarding
whether or not the customer intends to continue to consume Nestle products and
not switch to another brand, as well as whether or not they would suggest Nestle
products to others.
Next, the section is about perceived values which the questionnaire contains
‘consuming Nestle product makes the consumer happy’ and what they have paid
for are worth with the value of the product they get. Section five will be the
perceived quality, the question is asking the consumer if Nestle provides the quality
product that meets the expectations, do they have a good experience with Nestle
brands, do they view Nestle brand as a quality brand compared to the competitor
brands, and do Nestle brand have the superiority than others brand in the market.
Furthermore, section six will be gathered answers about marketing that is done by
Nestle Company. The questionnaire is asking consumers’ views about Nestle
always having prize giveaways. Do the consumer agree that Nestle is a good
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sponsorship and do Nestle brands have the ability to understand local customers’
preferences. This section is to find out whether there is a correlation between the
variables included.
Customers' satisfaction statistics both good and bad can aid a company in tackling
the issues connected with meeting stated consumer expectations, both positive
and negative. Additional benefits include assisting businesses in detecting and
fulfilling consumer demands and issues regarding the customer's view of the
delivered product or organization, leading to greater customer satisfaction. By
performing the Google form survey, the researchers can discover customers’
perceptions and dissatisfaction which can be utilized to enhance the products in
the future.
RESULTS
Based on the Google form that has been distributed online to the 100 respondents,
this section is to study the outcome of the data and results. The survey contains
eight sections: the respondents’ demographic profile, the results of customer
satisfaction, brand loyalty, the perceived value, the perceived quality, marketing,
brand image, and customer expectations.
Table1 demonstrates the respondents’ demographic profile. The table shows more
than half of the respondents were female 71% and the rest 29% were males. They
were divided into 5 divisions of ages and the highest percentage of them is at 21-
30 above (67%). Most of the respondents are Malays with 44% and most are
students (54%). From the survey, it is clear that most of the respondents are Nestle
consumers (98%). This suggests that 35% of the respondents consume Nestle
every week and 66% of them have been consuming Nestle products for 2 years
and above.
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About the packaging displayed, 62% strongly agreed that it is matched with the
actual one but 2% of them disagreed. Together, the present findings confirm that
Nestle’s products are easy to open the packaging and 67% of respondents strongly
agreed, 21% choose to be agreed and only 1% of them disagreed. Based on
Nestle (2012), “Nestle aims to make its products safe to use, maintain freshness,
provide easy to understand instructions and minimizes waste.” From the results, it
is clear that a plurality is satisfied to purchase the Nestle products (6.3%).
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Table 3 appears as the Nestle Brand Loyalty. 64.3% of the respondents strongly
agree that they trust the Nestle Brand and 64% intended to keep consuming Nestle
products for eternity. Nestle products had been a big company all over the years.
It is also a global company with deep local roots, which gives a unique ability to
understand local consumers and adapt fast to their preferences (Osian, 2019). As
the result, a lot of people today thought and aims the Nestle products is an idea of
a breakfast meal. Next, many respondents strongly agree that they will not switch
to other brands (52%) and 58% of the respondents strongly agreed to recommend
Nestle products to others.
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Table 4 shows the survey on the Nestle Perceived Values from the consumers. As
the result, most of the respondents choose that they strongly agreed Nestle
products make them happy (63.3%). The nutrition in a meal is important because
it is indicating a healthy diet that promotes healthy life and growth. Based on World
Health Organization, better nutrition is related to improving infant, child, and
maternal health (WHO, 2019).
Furthermore, 59.2% strongly agreed that Nestle have the nutrition they needed.
62.2% of respondents also strongly agreed that Nestle products match the value
that they have paid and it is very convenient to prepare and eat (60%).
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The researchers describe the results of Nestle Perceived Quality which shows that
54.1% of the respondents strongly agreed that Nestle’s products provide a quality
that meets their expectations. Besides that, Nestle brand has superiority over any
other brands, 53.1% strongly agree about this statement. Based on Singh and
Alarm (2019), “MILO, Coffee-mate, and Nescafe are the best products sales.
Culinary product like Maggi is the following best sales and most of the Malaysian
favorite drink is MILO”. Next, 58.2% of the respondents strongly agree that they
view Nestle brand as a quality brand compared to other brands and they also have
good experience with Nestle brand (58.2%).
DISCUSSION
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Table 7 shows the survey on the brand image is 62.2%, the respondents choose
to strongly agree that Nestle is known as multinational food and beverage. Based
on Foodnavigator (2019), The food industry must deliver healthier food sustainably
and utilize new technologies that meet consumer expectations. More than half of
the respondents agree that Nestle has the criteria (62.2%). High nutrition is
important in terms of a healthy balanced diet throughout this day. 49% of the
respondents strongly agree that Nestle provides a high nutritious value product,
36.7% choose to be agreed, and 13% were neutral.
Table 8 shows the survey of the customer expectations towards the Nestle
products in the future. Nestle is a big global company product that had been
operated for about 155 years and is known over the world. Most of the respondents
strongly agree that it will continue to produce a quality product (63.3%), 26.5%
choose to be agreed, and 7% were neutral. Furthermore, 52% of respondents
expected that Nestle products remain worth paying for, and 38% choose to be
agreed. Lastly about developing the new product, 67.3% strongly agree that they
will produce new products and 23.5% choose to be agreed. Based on Nestle's
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ambitions, “our purpose is to unlock the power of food to enhance the quality of life
for everyone, today and for generations to come”.
CONCLUSION
The information gathered from the survey has supplied us with a great deal of
important information that the researchers can use in this research. Nestle brand
customer satisfaction and brand loyalty are studied in this research, which is
surveyed the Google docs used a sample of 150 Nestle consumers who willingly
participated. These findings indicate a strong association between customer
satisfaction and brand loyalty. The researchers can state categorically that when
consumer satisfaction increases, brand loyalty will rise as well. The Google Docs
survey also reveals that many respondents are very satisfied with Nestle products
in terms of taste, price, and package, as shown by their rating of ‘strongly agree’
on the form. In addition, customers are delighted with the product's quality and
value for the price they paid. Nestlé’s packaging is likewise widely regarded as
convenient to open by most respondents.
In conclusion, the researchers may infer that if consumers are satisfied with a
Nestle product, they are more likely to be loyal to the Nestle brand. Customers
evaluate a product based on perceived quality, perceived value, marketing, brand
image, and customer expectations. All these factors are considered in determining
whether they are satisfied. The consumer trustworthiness in the product, quality of
the product, and the packaging are what consumers expect for Nestle to continue
to produce a quality product along with serving their needs have the most roles in
satisfying customers'. The greater level of consumer satisfaction with this
characteristic, the greater the level of brand loyalty toward Nestle products. The
findings of this study contribute to the existing literature by providing strong
empirical evidence that customer satisfaction has a substantial link with brand
loyalty. Customers' brand loyalty and Nestlé’s competitive edge may be enhanced
if the company's management continues to boost customer satisfaction. In short,
there is a positive correlation between customer satisfaction and brand loyalty.
REFERENCES
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