The Effect of Marketing Strategies of Luixing Coffee on Consumer Satisfaction and Brand Switch

Abstract

This study investigated customers why they purchase Luixing Coffee by analyzing effectiveness of product, price, distribution channel, promotion, and packaging as independent variables, and customer satisfaction and brand-switching behavior as dependent variables. The purpose was to verify the impact of Luixing's five marketing strategies on customer satisfaction and brand-switching behavior. Luixing Coffee has achieved a successful marketing strategy in countering Starbucks. This study aims to examine how the brand transformation occurred through the analysis of each marketing strategy. A survey was conducted with consumers who have purchased Luixing Coffee in Shanghai, China, through online over one week. Finally, data were collected for analysis, with a sample size of 400. Data analysis was performed using SPSS. The results of this study indicated that the five marketing strategies of product, price, distribution channel, promotion, and packaging had a positive impact on customer satisfaction and brand-switching behavior. The most impactful element among the marketing strategies for brand switching was the promotional strategy. The factor that had the greatest impact on satisfaction was the pricing strategy.