ABSTRACT

This study examines the effect of Western culture on Starbucks customer loyalty. Two moderators were introduced in this study to gain more understanding on the loyalty phenomenon. The researchers conducted a survey of 400 Starbuck’s customers. A questionnaire method was used to gather data from respondents in Penang, Malaysia using purposive and convenience sampling methods. From the survey, 295 questionnaires were returned and used in the analysis. Statistical tests including Partial Least Square—Structure Equation Modeling and MODPROBE were utilized. The results indicate that Western culture does influence customer loyalty. Furthermore, spending moderates the relationship between culture and loyalty while age has no moderation effect. Although there are many studies in the field of customer loyalty, this study provides another perspective on customer’s loyalty based on culture as a driving factor. The findings may attract Western MNCs investing in Malaysia as Western culture could be the source of competitive advantage, at least against local competitors.