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Abstract
Today, the major problem faced in the Tongkat Ali coffee industry is the ease of market entry which is characterized by many new players frequently entering the market. The industry is highly competitive and the producers are faced with the dilemma of whether to continue to produce and sell at low profits or compete with the many players in the fierce environment as they seek to identify and determine the causes and factors that will lead to increased customer retention to guarantee profits. The purpose of this research is to study the relationship between marketing mix and customer retention for Tongkat Ali coffee. In other words, the study will attempt to identify and link the cause and effect relationship between marketing mix and customer retention for Tongkat Ali coffee. Therefore, many questions need to be answered. What are the product's attributes sought by consumers? Who are the people that consume the product? When and where do they consume it? How frequent? What factors affect repurchase decisions? Why do they continue to consume? For answers, a survey was conducted on 200 Tongkat Ali coffee drinkers. The findings revealed that product attributes and promotional activities have a positive relationship with customer retention. Price and place do not have a relationship with customer retention. Customer preference, positive customer experience, satisfaction and lasting customer loyalty are factors that impact the relationship between marketing mix and customer retention.
Keywords: Marketing Mix; Coffee industry; Marketing mix; Customer retention; Malaysia
Introduction
Tongkat Ali is a traditional herb popular among the natives of Southeast Asia valued for its medicinal benefits. It is also known by the scientific name of eurycoma longifolia jack. Classified as a superior herb, it works by stimulating the natural defensive action of the body, making it more resistant to various kinds of infections. Tongkat Ali was first added into coffee in the late nineties and has continued to be a popular drink since then. This study aims to examine the factors that cause and determine its continued preference which leads to customer retention for Tongkat Ali coffee.
Marketing mix refers to the four major areas of decision making (4P's) in the marketing process that are blended and mixed to obtain the results desired by the organization...