The consumption of bubble tea experienced a meteoric rise in popularity in Malaysia following the opening of Chatime's first store in 2010. This event marked the beginning of a bubble tea craze, with numerous brands such as Tealive and Gong Cha quickly entering the market, leading to fierce competition. Today, bubble tea shops are ubiquitous across the country, and it is common to see long lines of eager customers waiting to get their hands on a cup. Social media has played an instrumental role in fueling this trend, as people love to share photos of their bubble tea, often featuring the drink's vibrant colours and creative toppings. Recognising this, many bubble tea shops have invested heavily in creating aesthetically pleasing interiors and serving their drinks in eye-catching cups. The aim is to encourage customers to share their positive experiences online, which, in turn, serves as free marketing for the business. In such a competitive environment, bubble tea stores must differentiate themselves to attract and retain customers. Understanding the need for innovation in this crowded market, Associate Professor Dr Koay Kian Yeik and his colleagues conducted a study to explore how the physical environment, or servicescape, of bubble tea stores, influences consumer behaviour. The research specifically looked at how aspects of the servicescape affect electronic word-of-mouth (eWOM), revisit intentions, and the willingness to pay a premium for the product. The study is rooted in the Stimulus-Organism-Response (SOR) theory, a well-established psychological framework that explains how external stimuli impact human behaviour.

According to the SOR theory, external stimuli—in this case, the servicescape of a bubble tea store—can significantly shape consumers' perceptions, attitudes, and behaviours. The SOR model comprises three key components: Stimulus, Organism, and Response. The Stimulus refers to the external environment that consumers are exposed to, which is represented by the store’s servicescape, including factors like layout accessibility, facility aesthetics, seating comfort, signage, and cleanliness. The Organism component represents the internal processes of the consumer, specifically their experiential value, which is the perceived benefit derived from the environment. Finally, the Response is the consumer's reaction to the Stimulus, manifested through behaviours such as eWOM, intentions to revisit, and willingness to pay a price premium.

To test the research model, the researchers surveyed 289 consumers who had recently visited bubble tea shops. The respondents answered a series of questions related to the variables under study, and the data was analysed using partial least squares structural equation modelling. The results were telling: among the various elements of the servicescape, three stood out—facility aesthetics, seating comfort, and cleanliness. These three factors had a significant and positive influence on the consumers' experiential value, which, in turn, strongly influenced their likelihood to engage in eWOM, return to the store, and pay a higher price for their bubble tea drinks. On the other hand, layout accessibility and signage were found to have no significant impact on experiential value.

The implications of this study are clear for bubble tea shop owners and managers. In a highly competitive market, it is essential to focus on the elements of the servicescape that genuinely enhance the customer experience. Facility aesthetics, seating comfort, and cleanliness are particularly critical, as they contribute directly to a positive experiential value, which drives consumer loyalty and word-of-mouth marketing. Given that bubble tea shops often serve as social gathering spots, providing a comfortable and inviting environment where customers feel encouraged to linger is of utmost importance. By prioritising these aspects, bubble tea stores can stand out in a crowded marketplace and build a loyal customer base willing to pay a premium for a superior experience.

This study highlights the importance of the physical environment in shaping consumer behaviour, particularly in markets like bubble tea, where competition is fierce and customer experience can make or break a business. The full details of the research can be found in the complete paper. 

Associate Professor Dr Koay Kian Yeik
Sunway Business School
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Dr Suzanne Tan Ser Zian
Sunway Business School
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Assoc. Prof. Dr Izian Idris
Sunway Business School 
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