Page 923 - MARSIUM'21 COMP OF PAPER

FINAL YEAR PROJECT

AHIBS UTM SKUDAI JAN 2022

FACTORS INFLUENCING CUSTOMER SATISFACTION AT DAILY HAPPY OTAK

OTAK

TEE KELLY, DR MAZILAH BINTI ABDULLAH

Azman Hashim International Business School, Universiti Teknologi Malaysia, Johor Bahru
*Corresponding author: kelly98.kt@gmail.com, mazilah@utm.my

Abstract
In the food industry, the relationship between four independent variables (quality of food, quality of service, quality of setting, price and value) and overall
customer satisfaction is close. Overall, customers satisfaction is important for a company because of this link to customer loyalty towards the company and
also the company's sales and reputation. Therefore, many companies pay attention to customer satisfaction and find ways to solve the problem of dissatisfaction
and manage customer satisfaction for building reputation and positive world-of-mouth. The research objective is to examine the influence of independent
variables on customers' overall satisfaction. Thus, Daily Happy Otak Otak can know customer satisfaction towards their company to improve their weakness
and plan for the future. This study uses questionnaires by distributing questionnaires to Daily Happy Otak Otak. The sampling method used in this study was
quantitative, and the sample size is 137 respondents based on purposive sampling. The result showed that food quality, service, price, and value significantly
influence customers' overall satisfaction. Therefore, these variables are the company's need to focus and improve to increase customer satisfaction.

Keywords: Quality of food, Price and Value, Quality of Setting, Quality of Service, Customer Satisfaction

■ 1.0 INTRODUCTION

Food plays an important role in our lives, which is why the methods of growing, processing and transporting it are valued to us to understand
it and try to improve it. The food industry consists of compound activities related to the availability, consumption, and catering of food and
services worldwide.

Today's food industry has become highly competitive and quite growing rapidly. In the global market, Malagie et al., (1998) stated that world
food exports totalled 290 billion U.S. dollars in 1989, 30% over 1981. Countries with industrialised market economies account for 67% of
exports. There has been substantial growth because of increased demand for food and drinks. This also means that the world's food production
will continue to increase. The rapid development of technology in the food industry is partly driven by population pressure, uneven
distribution of agricultural resources, and the need to keep food fresh for better distribution. Rapid economic development and enormous
marketing pressure allow the industry to continuously deliver new, different and attractive products. In order for the population's needs to be
met, the industry not only needs to produce enough food to satisfy the huge population, but it also needs to adhere to strict hygiene controls,
in this way to ensure and maintain the quality required for community health.

Therefore, the rapid development in the food industry also affects the economy of the global market. According the The Business Research
Company website (2020), the global food market value in 2019 is close to $5,943.6 billion and has grown at a compound annual growth rate
(CAGR) of 5.7% since 2015. In addition, according to the business research company's website, the global food market is expected to grow
from $5,383.8 billion in 2020 to $619.615 billion in 2021, with a compound annual growth rate (CAGR) of 6.1%. This shows that the
food industry has greatly contributed to the global economy.

According to Food & Beverage Industry Report Malaysia 2020, Malaysia's food industry is the major contributor to the national accounts
because it is a rapidly growing market in this industry. Its 2018 revenue was around 22.12 billion euros, an annual growth rate of 7.6%.
Referring to the same report, Malaysia is a diverse food industry that offers processed foods in a variety of Asian-preferred dietary tastes,
but also many recipes of Western. The industry is dominated by small and medium enterprises (SMEs). Besides, the food distribution market
is highly fragmented because there are many substitute products and participants in the market. Distribution channels include hawkers,
convenience stores, market stalls, supermarkets, hypermarkets, and shopping centres. In addition, e-commerce platforms are platforms of
online shopping. Online shopping platforms are becoming more and more popular, especially in COVID-19.

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