Examining the Factors that Influence Consumer Willingness to Pay of Bubble Tea among Generation Z in Bandung, Indonesia


  • Raden Aswin Rahadi School of Business and Management, Institut Teknologi Bandung, Indonesia
  • Candice Iswara School of Business and Management, Institut Teknologi Bandung, Indonesia
  • Kurnia Fajar Afgani School of Business and Management, Institut Teknologi Bandung, Indonesia
  • Alfred Boediman School of Business and Management, Institut Teknologi Bandung, Indonesia




price, taste, product design;, brand image, location accessibility, willingness to pay, bubble tea, generation Z


Bubble tea is a popular drink among Generation Z in Indonesia. However, the quality of bubble tea varies depending on intrinsic and extrinsic factors to make it more appealing. On the basis of consumers' final economic activity, it is crucial to examine what factors influence consumer purchase decision behavior. Due to the bubble tea shop, owners will effectively meet customer expectations for bubble tea beverages. This study examines factors that may influence the consumer purchase decision (willingness to pay) of bubble tea and analyzes the price limit disparities. The research uses a quantitative approach by distributing questionnaires to 300 Generation Z domiciled at Bandung, Indonesia. This study examines several aspects, including price, taste, product design, brand influence, and location accessibility. Also, it analyzes whether the consumers' purchase decision factor and the price limit of the respondents are different when it is divided based on demographic factors. The data were analyzed using multiple linear regression (MLR). This study found that taste, price, product design, brand image, and location accessibility individually and simultaneously affect the willingness to pay among Generation Z in Bandung City. Also, this study found differences in decision factors and price limits on bubble tea based on demographic factors. In conclusion, the current study has successfully examined the factors influencing consumer purchase decisions (willingness to pay) and analyzed the price limit disparities of bubble tea in Bandung, Indonesia.


Akpoyomare, O. Ben, Adeosun, L. P. K., & Ganiyu, R. A. (2013). The Influence of Product Attributes on Consumer Purchase Decision in the Nigerian Food and Beverages Industry: A Study of Lagos Metropolis. American Journal of Business and Management, 2(1), 196–201. https://doi.org/10.11634/216796061706211

Arya, N. A., & DineshBabu, S. (2021). Influence of Colour Identity and Brand Recognition on Consumer Purchasing Behaviour: A Special Reference to Packaging of Cadbury Chocolates. Annals of the Romanian Society for Cell Biology, 25(6), 11212–11218.

Bhatia, M., & Jain, A. (2014). Green Marketing: A Study of Consumer Perception and Preferences in India. Electronic Green Journal, 1(36). https://doi.org/10.5070/G313618392

Bussara, B., & Barrett, N. (2019). A study of consumer behavior and selection criteria in purchasing bubble tea for females in Bangkok. Thammasat University.

Chen, L.-F., & Tsai, C.-T. (2016). Data mining framework based on rough set theory to improve location selection decisions: A case study of a restaurant chain. Tourism Management, 53, 197–206. https://doi.org/10.1016/j.tourman.2015.10.001

Cooper, A., Turney, C. S. M., Palmer, J., Hogg, A., McGlone, M., Wilmshurst, J., Lorrey, A. M., Heaton, T. J., Russell, J. M., McCracken, K., Anet, J. G., Rozanov, E., Friedel, M., Suter, I., Peter, T., Muscheler, R., Adolphi, F., Dosseto, A., Faith, J. T., … Zech, R. (2021). A global environmental crisis 42,000 years ago. Science, 371(6531), 811–818. https://doi.org/10.1126/science.abb8677

De Pelsmacker, P., DRIESEN, L., & RAYP, G. (2005). Do Consumers Care about Ethics? Willingness to Pay for Fair-Trade Coffee. Journal of Consumer Affairs, 39(2), 363–385. https://doi.org/10.1111/j.1745-6606.2005.00019.x

Djumena, E. (2020). Dampak Pandemi Covid-19, Pemerintah Akui Daya Beli Masyarakat Melemah. Kompas.

Durmaz, Y., & Diyarbakirlioglu, I. (2011). A Theoritical Approach To The Role Of Perceptıon On The Consumer Buyıng Decısıon Process. Business Management Dynamics, 1(3), 17.

Font-i-Furnols, M., & Guerrero, L. (2014). Consumer preference, behavior and perception about meat and meat products: An overview. Meat Science, 98(3), 361–371. https://doi.org/10.1016/j.meatsci.2014.06.025

Gautama Himawan, A., & Rahadi, R. A. (2020). Customer Preferences On Coffee Shop Consumptions: A Conceptual Model. Advanced International Journal of Business, Entrepreneurship and SMEs, 2(3), 19–32. https://doi.org/10.35631/AIJBES.23003

Hakim, N., Suwandari, L., & Nawarini, A. T. (2020). The Influence of Quality Perception, Price Fairness, Brand Experience, and Accessibility to Repurchase Interest (Study on Consumer Chatime in Purwokerto). Soedirman Economics Education Journal, 22(1), 28–38. https://doi.org/10.32424/1.jame.2020.22.1.2818

Hanaysha, J. (2016). Restaurant Location and Price Fairness as Key Determinants of Brand Equity: A Study on Fast Food Restaurant Industry. Business and Economic Research, 6(1), 310. https://doi.org/10.5296/ber.v6i1.9352

Hasibuan, J. S., & Silvya, B. (2019). Pengaruh Disiplin Kerja dan Motivasi Terhadap Kinerja Karyawan. Prosiding Seminar Nasional USM, 2(1), 134–147.

Hassan, M., Hassan, S., Nawaz, M. S., & Aksel, I. (2013). Measuring customer satisfaction and loyalty through service fairness, service quality and price fairness perception: an empirical study of Pakistan Mobile telecommunication sector. Science International, 25(4), 971–980.

Iswara, C., & Rahadi, R. A. (2021). Consumer Preferences And Pricing Model On Bubble Tea Purchase In Bandung, Indonesia. Advanced International Journal of Business, Entrepreneurship and SMEs, 3(7), 111–119. https://doi.org/10.35631/AIJBES.37009

Kampfer, K., Leischnig, A., Ivens, B. S., & Spence, C. (2017). Touch-flavor transference: Assessing the effect of packaging weight on gustatory evaluations, desire for food and beverages, and willingness to pay. PLOS ONE, 12(10), e0186121. https://doi.org/10.1371/journal.pone.0186121

Kharisma, S., Arifin, Z., & Wilopo, W. (2017). Pengaruh International Brand Image Dan Kualitas Produk Terhadap Keputusan Pembelian (Survei Pada Pemilik Smartphone Lenovo Di Kawasan Asia Tenggara) (pp. 91–97). Brawijaya University.

Khawali, C., Ferraz, M. B., Zanella, M. T., & Ferreira, S. R. G. (2014). Willingness to pay as patient preference to bariatric surgery. Health Expectations, 17(1), 73–81. https://doi.org/10.1111/j.1369-7625.2011.00738.x

Krishna, A. (1991). Effect of Dealing Patterns on Consumer Perceptions of Deal Frequency and Willingness to Pay. Journal of Marketing Research, 28(4), 441. https://doi.org/10.2307/3172784

Kristanti, M., Jokom, R., & Widjaja, D. C. (2019). Culinary Experience of Domestic Tourists in Indonesia: A Study on Denpasar and Yogyakarta Tourist Destinations. Proceedings of the International Conference on Tourism, Economics, Accounting, Management, and Social Science (TEAMS 2018), 132–135. https://doi.org/10.2991/teams-18.2019.23

Lyly, M., Roininen, K., Honkapää, K., Poutanen, K., & Lähteenmäki, L. (2007). Factors influencing consumers’ willingness to use beverages and ready-to-eat frozen soups containing oat β-glucan in Finland, France and Sweden. Food Quality and Preference, 18(2), 242–255. https://doi.org/10.1016/j.foodqual.2005.12.001

Makkar, H. P. S., Aderibigbe, A. O., & Becker, K. (1998). Comparative evaluation of non-toxic and toxic varieties of Jatropha curcas for chemical composition, digestibility, protein degradability and toxic factors. Food Chemistry, 62(2), 207–215. https://doi.org/10.1016/S0308-8146(97)00183-0

Myung Soo Kang, 이한석, & 이정훈. (2008). A Study of the Relationship Between Customer Satisfaction and Repurchase Price. Productivity Review, 22(4), 75–98. https://doi.org/10.15843/kpapr.22.4.200812.75

Nguyen, D. (2019). Generation Z motivates Vietnamese entrepreneurs to open bubble tea shops. Retrieved July, 11, 2019.

Octaviany, V., & Ervina, E. (2017). The Creation of Visitor Satisfaction Through Quality of Experience In The Gastronomic Tourism at The City of Bandung, Indonesia. Journal of Business on Hospitality and Tourism, 2(1), 44. https://doi.org/10.22334/jbhost.v2i1.40

Pattarakitham, A. (2015). The Factors Influence Customer Satisfaction and Loyalty: A Study of Tea Beverage in Bangkok. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2593883

Putri, R. A., & Jumhur, H. M. (2019). Peminat Aplikasi Blibli. com dengan Menggunakan Model Unified Theory Of Acceptance And Use Of Technology (UTAUT). Jurnal Riset Bisnis Dan Manajemen, 12(1), 16. https://doi.org/10.23969/jrbm.v12i1.762

Ransulangi, G. S. T., Waney, N. F. L., & Dumais, J. N. K. (2017). Pengaruh Komponen Citra Merek (Brand Image) Terhadap Loyalitas Konsumen Produk Minuman Share Tea di Kota Manado. AGRI-SOSIOEKONOMI, 13(2), 79. https://doi.org/10.35791/agrsosek.13.2.2017.16380

Ratnasari, R. T., Gunawan, S., Mawardi, I., & Kirana, K. C. (2021). Emotional experience on behavioral intention for halal tourism. Journal of Islamic Marketing, 12(4), 864–881. https://doi.org/10.1108/JIMA-12-2019-0256

Sangwai, V., & Deshmukh, R. (2020). Bubble Tea Market by Base Ingredient, Flavor and Component: Global Opportunity Analysis and Industry Forecast, 2020-2027. Portland, United States: Allied Market Research, 261.

Simangunsong, E. (2018). Generation-Z Buying Behaviour In Indonesia: Opportunities For Retail Businesses. Mix: Jurnal Ilmiah Manajemen, 8(2), 243–253. https://doi.org/10.22441/mix.2018.v8i2.004

Singh, A. P., & Dangmei, J. (2016). Understanding the generation Z: the future workforce. South-Asian Journal of Multidisciplinary Studies, 3(3), 1–5.

Sörqvist, P., Hedblom, D., Holmgren, M., Haga, A., Langeborg, L., Nöstl, A., & Kågström, J. (2013). Who needs cream and sugar when there is eco-labeling? Taste and willingness to pay for “eco-friendly” coffee. PloS One, 8(12), e80719.

Tee, J., Erdiansyah, R., & Aulia, S. (2020). Pengaruh Word Of Mouth dan Brand Awareness terhadap Keputusan Pembelian Xing Fu Tang di Indonesia. Prologia, 4(1), 18. https://doi.org/10.24912/pr.v4i1.6420

Teo, T. W., & Khoh, R. L. (2014). Teaching science in culturally relevant ways: Ideas from Singapore teachers. World Scientific.

Wang, L. W., Tran, T. T., & Nguyen, N. T. (2014). Analyzing factors to improve service quality of local specialties restaurants: A comparison with fast food restaurants in southern Vietnam. Asian Economic and Financial Review, 4(11), 1592–1606.




How to Cite

Rahadi, R. A., Iswara, C., Afgani, K. F., & Boediman, A. (2023). Examining the Factors that Influence Consumer Willingness to Pay of Bubble Tea among Generation Z in Bandung, Indonesia. International Journal of Global Optimization and Its Application, 2(1), 74–83. https://doi.org/10.56225/ijgoia.v2i1.162