Final Copy March 16

For Additional Information, Contact Dr. Dennis R. Wubbena
Evangel University – wubbenad@evangel.edu
Product + Service = Value
Quality products are only half the value equation.
Meeting customers’ expectations will make them happy.
Exceeding their expectations will make them loyal.
Mystery Shopping Report
March 2015
Research conducted University on local Springfield Coffee Shops: Big Momma’s, Brick & Mortar, Classic Rock, Coffee
Ethic, Dancing Mule, Hebrews, Heroes, Kingdom, Mudhouse, Potter’s House and Starbucks
Research conducted by Marketing students of Evangel University: Brandon Anderson, Emily Bye, Zachariah Johnson,
Ryan Kowalski, Taylor Peissner, Victoria Pursell, Trevor Schmidt, Brandon Smith, Jordyn Vickers

L
Table of Contents
Marketing Team ………….…………………………………………………………………………………………………..3
Research Objectives & Design ………………………………………………………………………………….…..4
Sample Profile ……………………………………………………………………………………………………….5
Survey Results by Objectives ……………………………………………………………………………………….5 - 11
 To determine Top-of-Mind awareness of local Coffee Shops
 To measure student perceptions of local Coffee Shops
 To identify Coffee Shop ‘experience’ expectations and the impact of ‘Service’
to perceptions and overall satisfaction.
Mystery Shopping Scores …………………………………………………………………………….…………….…. 12
Literature Review –
 What others are saying …………………………..…………………..…………………..………………….13
 Competitive Advantage …………………………..…………………..…………………..………………….16
 Consumer Decision Process ………………………..…………………..…………………..………………….17
Appendices –
 A Campus Survey Form …………………………..…………………..…………………..………………….18
 B Mystery Shopping Form ……………………..…………………..…………………..………………….20
 C Related Campus Research ………………………..…………………..…………………..………………….22

** Special Recognition
** Photography ** Data analysis
** Documentation
Marketing Research Team
Brandon Anderson Emily Bye Zachariah Johnson
Victoria PursellTaylor Peissner
Trevor Schmidt Brandon Smith Jordyn Vickers
Ryan Kowalski

Because of other campus survey activities the decision was made to collect data from a
convenience sample of students that currently purchase coffee from local Coffee Shops. A filter
question was used to eliminate students that do not. It is understood that the results of this
research effort are not statistically ‘representative’ of the Evangel campus as a whole; however,
we believe there is value and our findings do reflect the general perceptions and interests of this
potential market. Service definition and Coffee Shop assessment were our primary objectives,
which this research design fulfilled.
Research Objectives
What started as a simple discussion quickly evolved into a community based
project to examine the current perceptions of Evangel University students toward local Coffee
Shops. A research team was established, a composite listing of local Coffee Shops was developed
and a research design created. The project and resulting design included the following objectives.
 Survey a convenient sampling of Evangel University students
 To identify Coffee Shop expectations and the impact of ‘Service’ to
market perceptions and overall satisfaction.
 Conduct an evaluation of the customer service provided by each local Coffee Shop
 To assess the level and types of service offered
 To make a comparison of the service relative to market expectations and
to other local Coffee Shops
 To make recommendations to local Coffee Shops based on market expectations,
shopping experience and industry ‘Service’ standards
.
Research Design …..

We surveyed only student’s that said they DID purchase coffee off campus from a
local Coffee Shop. A total of one hundred eighteen (118) students were surveyed.
66 (55.9%) were female students - 52 (45.1%) were male students
41 (34.7%) freshman - 36 (30.5%) sophomore - 20 (16.9%) junior - 21 (17.7%) senior
Overall, the average number of visits to a local Coffee Shop was 8.07 visits per month.
Subgroups were created based on visit frequency for data analysis.
 “Heavy Users” 41 students (34.7%) visit 10 or more times per month with an average of
14.68 visits per month with a median of 12 visits and a mode of 10 visits.
 “Mid Users” 37 students (31.3%) visit 5 to 9 times per month with an average of 6.48 visits
per month with a median of 6 visits and a mode of 5 visits.
 “Light Users” 40 students (33.9%) visit 4 or less times per month with an average of 2.75
visits per month with a median of 3 visits and a mode of 3 visits.
Survey respondents were asked to identify the local Coffee Shops they considered to be the
‘best’ followed up with a question asking them which Coffee Shops they frequented the
most. Responders were asked to name the Coffee Shops without the aid of a list to refer to.
Their response was a measure of Top-of-Mind awareness. [Questionnaire can be found in
the appendix]
 Mudhouse (62 times mentioned); Potters House (50 times) and Starbucks (48 times)
were the clear winners when the ‘best’ Coffee Shops in the market were identified.
 It is interesting to see that Starbucks was mentioned 48 times as a top-of-Mind ‘best’
best coffee shop and 68 times when asked which Coffee Shop is most frequented.
Later in the survey, Starbucks was identified as the ‘convenient’ Coffee Shop which
could account for the increase in frequency over perception of ‘best.’
 Brand equity is made up of awareness and image. Without awareness, growth will
not happen. However, awareness by itself is not enough; there must be an effort to
create a positive image and encourage trial (visitation) to build loyalties.
Sample Profile …..
Survey Results by Objective …..

Question #4: Respondents were asked to name two ‘best’ Coffee Shops in the
area and two that they ‘frequented’ most often without the assistance of a list to
refer to. (unaided/top of mind) [ Example of how to read the following; 5/3 – first row –
this coffee shop was mentioned as one of the two ‘best’ local coffee shops (5) five times and as
one of two most frequently visited (3) three times; For Heavy Users, it was 2 / 1, etc]
Total Heavy Mid Light Coffee Shop names
Sample Users Users Users
5/3 2/1 2/1 1/1 ……Brick & Mortar
23/19 10/9 8/6 5/4 ……Coffee Ethic
10/8 7/5 2/2 1/1 ……European Café
9/2 3/1 4/1 2/0 ……Hebrews
14/12 5/3 5/5 4/4 ……Kingdom
62/56 22/18 15/16 24/22 ……Mudhouse
50/45 14/15 13/12 23/19 ……Potters House
48/68 15/24 15/22 18/22 ……Starbucks
4/3 1/1 3/2 0/0 ……Classic Rock
4/1 3/0 1/1 0/0 ……Dancing Mule
1/0 0/0 0/0 1/0 ……Heroes
8/13 3/5 5/6 0/2 ……Other
0/0 0/0 0/0 0/0 ……Big Mommas
Question 19-30: Respondents were asked to look at a listing of Coffee Shops to
identify which they had heard of each and which they have visited within the past 3
months. If they had visited, they were then asked if they would they go back again.
[ Example of how to read the following: 43.9% / 9.7% / 0 – first row – for this coffee shop, 43.9% of the
heavy users were aware it existed, 9.7% of the heavy users had visited it in the past 3 months and 0 of
those that had visited it said the would not go back. Etc for Mid and Light users. ]
Total Heavy Mid Light Coffee Shop names
Users Users Users Users
38.9%/8.4%/0 43.9% / 9.7% / 0 40.5% / 10.8% / 0 32.5% / 5% / 0 ……Brick & Mortar
73.7%/42.3%/2 78.0% / 58.5% / 2 72.9% / 37.8% / 0 70% / 30% / 0 ……Coffee Ethic
72.0%/22.0%/5 70.7% / 31.7% / 5 72.9% / 24.3% / 0 72.5% / 10% / 0 ……Hebrews
61.8%/36.4%/1 60.9% / 36.5% / 1 62.1% / 40.5% / 0 62.5% / 32.5% / 0 ……Kingdom
97.4%/88.1%/7 100% / 100% / 3 91.8% / 78.3% / 0 100% / 85% / 4 ……Mudhouse
97.4%/80.5%/6 100% / 88% / 2 94.5% / 72.9% / 4 97.5% / 77.5% / 0 ……Potters House
100%/93.2%/5 100% / 100% / 2 100% / 100% / 0 100% / 80% / 3 ……Starbucks
55.9%/15.2%/4 58.5% / 19.5% / 2 67.5% / 16.2% / 2 42.5% / 10% / 0 ……Classic Rock
44.0%/10.1%/4 63.4% / 17.0% / 3 40.5% / 8.1% / 0 27.5% / 5% / 1 ……Dancing Mule
38.9%/5.9%/0 48.7% / 9.7% / 0 37.8% / 5.4% / 0 30% / 2.5% / 0 ……Heroes
62.7%/20.3%/5 71.6% / 26.8% / 2 51.3% / 21.6% / 1 60% / 12.5% / 2 ……Big Mommas
European Café was unintentionally left off our list - but when asked if there are “other’ Coffee
Shops they visited, 11 (9.3%) mentioned European Café and all would go back. Had this Coffee
Shop been on the listing, it is likely that more would have heard of it.

Survey respondents were asked how they felt about the McDonalds coffee compared to the
coffee offered by local Coffee Shops. Clearly, McDonalds is not an equivalent coffee provider.
However, based on the comments made by a few responders, the difference is more about
atmosphere and variety than it is based on the quality of coffee. One light user responder even
said the McDonald’s coffee was as good as Starbucks.
Question #2: Respondents were asked how McDonalds compared to local Coffee Shops. A
rating of 1 would indicate that McDonalds’ coffee is the same as local shops and a 7 would
mean the Coffee Shop coffee is much better. [ Example of how to read the following; Average 5.92 –the
rating depended on usage rates. Heavy users were more discriminating in favor of Coffee Shops than light users
were. The fact that the Median (7) is higher than the Average (5.92) tells us that there are some extremely low
scores included in the calculations. ]
Total Heavy Mid Light
Sample Users Users Users How does McDonalds compare to local Coffee Shops
Average 5.92 6.07 5.89 5.78 [The same 1 2 3 4 5 6 7 Coffee Shops are better]
Median 7.00 7.00 7.00 6.00
Mode 7.00 7.00 7.00 7.00
The comparison with McDonalds was also measured with customers that would return to each local Coffee House.
Potters Mudhouse Starbucks C Ethic Kingdom Big Momma Classic R D Mule Heros Hebrews Brick/Mortar
How does McDonalds compare? 6.1 6.1 5.9 6.2 6.0 5.3 6.3 6.2 7.0 6.0 6.4
Question #5: Respondents were asked to identify their primary purposes for visiting a Coffee
Shop beyond the obvious of wanting to drink coffee. Each was asked to divide 100% points
among four purposes in an effort to determine the primary drive to vist a Coffee Shop. Overall,
Socialization (46%) was the dominant reason that respondents visited a Coffee Shop followed
by studying (33%). [ Example of how to read the following; Total 46% – of the participants indicated
socialization was the dominant reason for visiting a Coffee Shop. However, this motive was much stronger among
the Light Users while Studying was a stronger motive the Heavy users. ]
Primary reason for going to a Coffee Shop, other than coffee. (Constant sum analysis)
46% 38% 45% 56% Socialization
33% 44% 29% 25% To Study
15% 12% 18% 16% ‘Hang Loose’
06% 06% 08% 03% Other

Question #6: Respondents were asked if local Coffee Shops were better suited
for different purposes. The majority (81.3%) of all respondents indicated YES,
that several locations were better suited for different purposes. Heavy users
(75.6%), mid users (86.4%) and light users (82.5%) varied. [ Example of how to read
the following; 5/3 – first listing – this Coffee Shop was mentioned as one of the best 5 times
and as one most frequented in past 3 months 3 times; both heavy and mid users mentioned the
quality of coffee as the biggest descriptor and light users mentioned studying as the best
descriptor of this Coffee Shop]
81.3% 75.6% 86.4% 82.5% YES
Coffee Shop names Heavy Users Mid Users Light Users
Best/Most Freq
5/3 Brick & Mortar Quality Quality Study
23/29 Coffee Ethic Study -3 Study-3/Social-2/Atmos-2 Study-2
10/8 European Café Study - 2 Study/bakery/quality Variety
9/2 Hebrews Study - 2 Study-2
14/12 Kingdom Social – 2 Quality Social-3/Study/Atmos
62/56 Mudhouse Social-3/Study-5 Social-7/Atmos-5 Social-3/Atmos
50/45 Potters House Social – 11 Social-7/Atmos-2 Social-11/Study/Atmos-2
48/68 Starbucks Conv-2/Study-4/Social-3 Conv-2/Study/Social Study-7/Conv
4/3 Classic Rock Quality Social
0/0 Big Mommas Study - 2 Live Shows
If we combine the above charts to blend the market usage and perception of local Coffee
Shops to the respondent’s primary motivation (beyond coffee) to visit a Coffee Shop, the
follow observations are made.
o Socialization is highest non-coffee motivation among light users and Potters
House, Mudhouse and Kingdom have a compatible social market perception.
Only 10% (4) of the low usage respondents identified Kingdom as a frequently
visited Coffee Shop – this could be a reflection of a lack of promotion or social
media gatherings. It could also be that the high frequency for Starbucks by
light users is a result of convenience.
o Socialization is important to heavy users but not as important as having a
place to study. Potters House is clearly the social hangout but Coffee Ethic is
the favored Study Coffee Shop, followed by European and Hebrews.

 To identify Coffee Shop ‘experience’ expectations and the
impact of ‘Service’ to perceptions and overall satisfaction.
 It is interesting that the importance average, median and mode for heavy users is
significantly lower than mid and light users. This could be a reflection of
socialization being less important to them than studying.
 Overall Quality is the most important with Value high in importance by all user
groups, albeit in different intensity. Price was more important to heavy and light
users while Service Quality was more important to the Mid user.
One student provided the following insight as to the definition of ‘Overall Quality.”
“I think that Starbucks is great quality and I also think that Hebrews has great quality but they both have
completely separate tastes. Starbucks is more of what I like, it’s sweet and the espresso drinks aren’t bitter tasting,
but at Hebrews the same drink would have more of a bitter and unsweetened taste. Just because I don’t like it as
much, doesn’t mean I don’t recognize there is good quality there.”
Question #7: Respondents were asked how important service was to a
satisfactory experience at a local Coffee Shop. [ Example of how to read the following;
Average 5.58 –with heavy users less concerned about service than mid and light users. The fact
that the Median (6) is higher than the Average (5.58) tells us that there are some low scores
included in the calculations. ]
Rating………… ….how important is service in choosing the coffee shop you go to?
Average 5.58 5.37 5.78 5.60 [Not Important 1 2 3 4 5 6 7 Very Important]
Median 6.00 5.00 6.00 6.00
Mode 7.00 5.00 7.00 7.00
 Question 7 also asked how respondents defined ‘Good Service’. It was an open
ended question asking them to provide their own descriptive words. Quick, capable
and friendly were descriptive terms used by all three usage groupings.
How do you define ‘Good Service’ (unaided/top of mind)
Total: Heavy Mid Light
Users Users Users Users
Quick-17 Quick-9 Quick-3 Quick-5
Friendly-14 Friendly-6 Friendly-2 Friendly-6
Capable-11 Capable-4 Capable-3 Capable-4
Knowledgeable-5 Knowledgeable-3 Knowledgeable-1 Knowledgeable-1
Clean-4 Clean-2 Clean-1 Clean-1
Polite-2 Makes me happy Remembers Me-1
Welcoming-1 Calm Atmosphere-1 Efficient-1
Consistent-1

Question 11-18: Respondents were asked to rate the importance of the eight
attributes on a 7 point scale with (1) as not important, (2) important and (7)
very important. [ Example of how to read the following: Average 5.25 – first row – Easy
location was among the top four qualities for only the light user. Overall Quality is number
one for all user categories.] The second chart shows the rating for those that have visited
each coffee shop and would go back (which could be an indication of what they liked most
about that particular location)
Rating………… Not very Important …….…… Important………….. Very Important
1 2 3 4 5 6 7
Total Sample Heavy User Mid User Light User
Average Avg Med Mode Avg Med Mode Avg Med Mode
Easy Location 5.25 (5) (5) 5.20 5.00 5.00 (5) 5.30 6.00 6.00 (4) 5.25 5.00 5.00
Price 5.29 (4) (3) 5.59 6.00 6.00 (4) 5.51 6.00 6.00 (2) 5.68 6.00 6.00
Value 5.58 (2) (2) 5.71 6.00 6.00 (3) 5.59 6.00 6.00 (3) 5.43 6.00 6.00
Experience/fun 5.19 5.24 5.00 6.00 5.14 5.00 4.00 5.18 5.00 5.00
Overall Quality 5.92 (1) (1) 5.80 6.00 5.00 (1) 6.03 6.00 6.00 (1) 5.93 6.00 7.00
Specialty Drinks 4.60 4.29 5.00 5.00 5.08 5.00 6.00 4.48 5.00 5.00
Ethically Sound 4.80 4.78 5.00 6.00 4.81 5.00 6.00 4.80 5.00 6.00
Service Quality 5.36 (3) (4) 5.27 5.00 5.00 (2) 5.62 6.00 6.00 (5) 5.23 5.00 6.00
Potters Mudhouse Starbucks C Ethic Kingdom Big Momma Classic R D Mule Heros Hebrews Brick/Mortar
Easy Location 5.3 5.2 5.2 5.1 5.1 5.1 5.4 5.3(3) 4.6 4.9 5.0
Price 5.7 (2) 5.5 (3) 5.6(2.5) 5.5(3) 5.4(3) 5.5(2) 5.1 5.0 5.6 5.4(3.5) 4.9
Value 5.5 (3) 5.6 (2) 5.6(2.5) 5.8(2) 5.8(2) 5.4(3) 5.5(3) 5.3(3) 5.4 5.8(2) 5.7(2)
Experience/fun 5.3 5.3 5.2 5.2 5.2 4.9 5.2 5.1 5.9(3) 5.3 5.6(3.5)
Overall Quality 5.9 (1) 5.9 (1) 5.9(1) 6.2(1) 6.2(1) 5.9(1) 6.0(1) 5.3(3) 6.0(2) 6.3(1) 6.2(1)
Specialty Drinks 4.6 4.5 4.7 4.5 4.3 4.6 4.8 4.4 5.0 4.8 4.0
Ethically Sound 4.7 4.8 4.8 4.5 4.6 4.5 5.1 4.8 4.9 5.0 5.0
Service Quality 5.3 5.4 5.4 5.3 5.2 5.2 5.6(2) 5.4(1) 6.1(1) 5.4(3,5) 5.6(3.5)
 OTHER... questions asked
Question #9: Respondents were asked what it would take to get them to try a
new location. It was an open ended question to solicit their top of mind response.
[ Example of how to read the following; The response of providing quality coffee was
mentioned 31 times by different respondents; one person mentioned games.]
Environment/Atmosphere/Theme - 33
Quality Coffee - 31
Reputation - 27
Coupons/advertising - 23
Free Drinks - 20
Affordable - 19
Non-coffee products - 12
Will try just because it is new - 11
Invitation – 8
Variety - 6
Friendly/Experienced Workers - 4
Location/convenient - 3
Good Prices/College Discounts - 2
Reward Programs - 1
Good music -1
Games - 1
Samples - 1
Frozen/Iced Drinks - 1
Specialty drinks - 1

Question #10: Respondents were asked if they would sign up to
receive email coupons from a Coffee Shop.
A total of 62% said they would sign up for coupons.
- 75.6% of the heavy users said they would sign up to receive email coupons
- 51,3% of the mid users said they would sign up to receive email coupons
- 60% of the light users said they would sign up to receive email coupons
Question #11: Respondents were asked if they follow any Coffee Shops
on social media. Those listed were most often ‘other’ coffee shops (many
times outside the Springfield market)
- 39% of the heavy users said they do
- 32.4% of the mid users said they do
- 25% of the light users said they do
Question #31: We asked the students how interested they would be in having a Coffee Shop
on the Evangel campus. Using a 7 point scale where 7 represents the strongest interest, the
average response was 6.33. Over 81% (96 students) chose a rating of 7 or 6 which would
appear to be a significant interest in having a Coffee Shop on campus. [79 chose the response
of 7].
 We then asked what had to be present for them to consider buying coffee
from the Evangel Coffee Shop. There response was:
Variety, affordable, quick service, use
crusader bucks, location
Variety, quick service, use crusader bucks
Use crusader bucks (3)
Coupons
Open late, friendly Atmosphere
Convenience
Be like Potter's House (2)
Be like Mudhouse/European Café
Nothing, I would just go! (26)
Quality coffee, affordable
Quality coffee, variety, affordable
Affordable, social-friendly atmosphere
Affordable, reputation
Affordable, quality coffee, quality tea
Affordable, quality coffee
Quality Coffee, Good Prices, Atmosphere
Quality Coffee (8)
Quality coffee, atmosphere, music
Study-Friendly Atmosphere
Convenient location
Affordable, atmosphere
Affordable, sell ground coffee
Quality coffee, friendly workers
Quality Coffee, Committed Workers
Atmosphere, Creativity
Use crusader bucks, quality coffee, social
Atmosphere (2)
Affordable, Quality coffee
Affordable, Quality coffee
Use crusader bucks
Privacy
Open late, affordable
Convenient, Speciality drinks
Comfortable Seating
Quality coffee, Affordable, student workers
Quality coffee, variety, affordable, study-
friendly atmosphere
Affordable (9)
Professionalism
Study-friendly Atmosphere, Quality coffee,
Affordable, variety
Quality coffee, capable workers
Affordable, quality, unique atmosphere
Quality Black Coffee
Variety, quality coffee
Study-friendly atmosphere, rewards program,
Affordable, study friendly atmosphere
Affordable, comfortable Atmosphere
Friendly workers, study-friendly environment,
Quality Coffee, Atmosphere
Non-coffee Products
Quality coffee, variety, affordable
Quality Coffee, quality employees
Affordable, quality coffee
Not crowded, open late
Quality Coffee
Iced Drinks
Quality coffee, affordable, use crusader bucks
Quite Atmosphere
Not in joust
Affordable, variety
Study-friendly Atmosphere, Quality coffee,
Not crowded, Not in joust
Open late
Specialty drinks, atmosphere
Quality coffee, non-coffee products
Privacy
Atmosphere, Affordable
Allow alumni to use (2)
Study friendly atmopshere, quality coffee,
Atmosphere for Socializing
In library, affordable
Knowledgeable workers, quality Coffee,
Not crowded, open late
Social Atmosphere, Affordable

Overall Rating on a 6 point scale (6=best rating) Listed in order of ‘weighted score’
Weighted
(Score) x1 x1 x2 x3 x4
(Friendly) Drink
(Weighted Score) Exterior Interior Greeting Knowledge Quality
1. **Potters House (61) 5 5 6 5 6
2. Heroes (59.5) 3.5 5 5.5 6 5.5
3. Brick & Mortar (59.4) 4.6 5.6 5 6 5.3
4. Hebrews (58) 5 5.6 5.6 5 5.3
5. Classic Rock (55.5) 4 6 3.6 5.3 5.6
6. Coffee Ethic (52.7) 5 5.25 4.5 4.5 5
7. Kingdom (52.2) 5.3 5.5 2 5 5.6
8. Dancing Mule(51.9) 3.3 5 4.3 4.6 5.3
9. **Starbucks (49.7) 4.6 5.6 2.6 5.3 4.6
10. **Mudhouse (45.4) 3 4 1 6 4.6
11. Big Mommas(33) 3 3 3 3 3
OBSERVATION: Only one of the three** Coffee Houses identified (top of mind) as ‘Best’ and
‘Frequented Most’ are rated in top 50% of the local Coffee Houses….. This could mean that the other
Coffee Houses have an opportunity to gain significant market share.
Customer Service
Mystery Shopping Experience
Now that we defined what it was that students liked in a Coffee
shop, we decided to visit the local Coffee Shops to see what type
of experience it would be.
Three separate visits were made by three different individuals
at three different times to each of the local Coffee Shops to
conduct an assessment of the experience. An evaluation form
was developed and completed for each visit.
A summary for each location experience is available

http://www.crimsoncup.com/whats-new/woo-coffee-shop-customers-with-wow-service
Try these tips from Crimson Cup Founder and President Greg Ubert’s book,
Seven Steps to Success in the Specialty Coffee Industry.
1. Start with exceptional products. Specialty coffee customers have refined tastes.
2. Set positive expectations. A little enthusiasm goes a long way toward creating a positive experience. Tell
customers about the special qualities that set your drinks apart.
3. Hire friendly, outgoing people. Friendly people make a good first impression as customers walk in your door.
4. Become an expert at what you do. Product knowledge is crucial to customer satisfaction.
5. Greet every customer. Acknowledging your customers as soon as they walk in the door makes them feel
welcome.
6. Know your customers. The key to repeat business is to know what your customer wants as they walk in the
door.
http://www.forbes.com/sites/quora/2012/12/20/whats-the-secret-to-a-successful-coffee-shop/
What's The Secret To A Successful Coffee Shop? Answer by Peter Baskerville, Founder of 20 Cafes and Food Businesses,
1. Consistently serving the finest espresso –
2. Ergonomics is vital – Make sure the coffee workstation and layout is such that the barista hardly moves
their feet in performing all their coffee making duties, and they are not competing for the space with
other staff members.
3. Use loyalty cards –. Make sure it is a quality card that will last the wear and tear and look good in a
customer’s wallet.
4. Promote multiple sales –
5. Limit the assortment –
6. Merchandise your margins – Price according to perceived customer value, not according to accounting
determined markups.
7. Get your beachhead strategies right – Getting traction in a competitive marketplace like coffee shops is
vital, and you will need to have a clear understanding of how to get customers to initially give you a go
and a plan for keeping them returning and referring you to their friends. [See Below ** … What are some
Biz Dev best practices for startups?.]
8. Counter service –
9. Pre-make as much (food) as possible –
Customer Service
What are others saying ….
http://communicateskills.com/2013/02/04/cust
omer-service-good-to-great/
7 steps to move your customer service from good to great
1. Greet every customer the minute he enters the door.
2. Remember each customer’s order so you can offer him what he had last.
3. Chit-chat with your customers and add certain things they tell you in your memory. Ask them about it next time.
4. When talking to the customers over the counter, try to involve them in conversations with each other. People
appreciate to be introduced to new interesting persons.
5. Trust people. If you don’t accept credit cards and someone’s out of cash, tell him to pay you next time.
6. Banish the queue! Take every customer’s order when he walks in, and let him pay only after you served him.
7. Offer your customers to run a bar tab and pay afterwards on agreed time

10. Understand what you are really selling – Too many businesses, including coffee shop owners, don’t fully
understand the need they are really satisfying for their customers, and so they often concentrate on the
wrong parts of their offer. Customers frequent a coffee shop for many more reasons than just hunger and
thirst. There is the escape from a stressful office, the chance to maintain or grow a relationship, a place to
get away to do some reflective work, a chance to engage with familiar coffee shop staff at a particularly
lonely time, or as a place to do business and reach an agreement. Understanding the needs you are really
catering to will help you better construct your offer and make decisions that keep your customers
returning and so maintaining the coffee shop’s success.
11. Target TGT +0.87% takeaways – I know all your friends will tell you to get comfortable lounges, free Wi-
Fi, table service, and lots of in-house entertainment … but customers sitting on one cup of coffee for
hours enjoying all these benefits won’t pay your rent. My most financially successful coffee shops had a
limited number of not-so-comfortable bench & bar stools to make the coffee shop look lived in and loved,
but I concentrated on building the takeaway business. Takeaway customers pay the same price as the sit-
down customer, but without any of the occupancy costs, and you will serve ten of them by the time your
sit down customer has finished sipping on their first cup of coffee as they enjoy a chat with their friends
on Facebook Facebook using your free Wi-Fi.
12. Serve on the front line - Customers expect it, and staff are far more enlivened when the owner in on
hand taking orders or making coffee or is generally hovering in active care of the business.
Probably worth mentioning why I haven’t included high traffic location on the list. Coffee is a destination
rather than an impulse purchase and too much traffic can mean that people are more focused on getting
somewhere else rather than stopping to enjoy your offer.
http://www.quora.com/What-are-some-Biz-Dev-best-practices-for-startups
** What are some Biz Dev best practices for startups?
Build Momentum - i.e. taking actions that make the business appear successful from the customer’s point of
view and so create a desire by them to engage. Offer lost leaders and opening specials, create a fun-loving
buzz about your offer/enterprise, encourage 'ownership' by staff and partners, focus on winning over the
internal staff, technicians and suppliers first and exude confidence as a relaxed winner who has faith in their
offer and strategy.
Become the topic of conversation - i.e. taking actions designed to get your target market talking about you in
a positive way. The goal is to gatecrash their everyday conversations. Be a little quirky and unusual at the
start, get in the news with press releases and friendly PR, give early customers a post-sale benefit, offer
outstanding quality on some products to elicit the customer's ‘To die for’ response, create theater with
technology, machinery and/or people skills in the supply of your product/service.
Work with your champions - i.e. these are people (usually early adopters) who take great delight in giving
referrals for your offer that will reflect positively on themselves as opinion leaders, cutting edge switched-on
and with-it observers or simply being acknowledged by their friends as possessing good judgment. Acknowledge
them as 'friends of the business' - get their names and use it always, reward them with praise, 'love the one your
with' by spending no time being anxious about customers that you don’t have, treat their customer referrals like
royalty.
Create memorable experiences - i.e. taking actions to create experiences that are way beyond what your
customer would expect from your competitors in the same situation. Turn transactions into a fun and
enjoyable experience, take the opportunity to trust your potential customer if ever offered the chance, let
them try before they buy, give them some useful/important information about the product that your
competitors have never told them.

Create addictions - i.e. taking actions to promote products or services that your customers could become
highly addicted to. Create a loyalty reward scheme, don't drop any of your initial offer no matter how slow
the sales (keep the faith with the customers), if the cash flow can afford it – make the first three uses free,
organize your assortment at the start to sell a splattering of highly addictive products.
Break habits and break through - i.e. taking actions to break the habit of your target market who have
habitually gone to your competitor ... but do so without starting a war with the competitors. Outflank your
competitors by being open for business when your competitor is closed, offer products that are not offered by
your competitors , if cashflow and expertise are sufficient, then secure your business via a difficult route that
few competitors would be comfortable to follow, engage the spies (champion customers and supportive
suppliers) to understand your competitors actions/reactions, stay under the radar with your competitors
(Don’t do things or make statements that directly threaten your competitors and force them to react)
Remove barriers - i.e. taking actions that make it easy for the customer to engage with you and your products,
without them feeling the pressure of commitment. ‘Blood the business’ by making the first sales of your
business to non-core customers in non-core times to relax you and your stakeholders, create a public
commons where customers can feel belongs to them, make sure you are easily found and identified by
making your signage clear and significant, use music, TV or specific sounds to create the easy to enter
environment, encourage the uninterrupted browse, initially include and make highly visible brands that your
customer is very familiar with, present professionally, present with permanency, legitimize, be associated
with established authorities, make the transition from public-space to your-space as smooth as possible.
Linkup with the locals - i.e. taking actions that support those activities that are conducted by other businesses
and community groups in your target area. Create as many allies as possible with surrounding businesses,
create a notice board that allows your community groups and other businesses to advertise special events,
design giveaways that make them look good to their customers by offering a freebee at your business, aim to
keep the customer in the local area for all their needs.
Concentrate on the main event - i.e. taking actions to commit all your resources to achieving a few high level
objectives and to simply ignore all lower level objectives. See your business only through your customer’s
eyes, make sure your offer to try (promotion) is activated after your capacity (staff ability, packaging, product)
has been established, prioritize the establishment of a customer base not to make a profit, accept your
mistakes quickly, learn from them and move on. Focus on the goal not on your causalities, promote products
initially that have ready market acceptance and keep your innovation as second stage to what’s normal and
understood by the target market. Forget about what the competition is doing. Become customer obsessed not
rivals obsessed. Don’t make control you aim.
Exploit the unforeseen opportunities - i.e. taking actions to exploit the unforeseen opportunities that
materialize during the implementation phase. Identify the winners in the assortment early and back them
fully. Find a micro niche that may have no established competitor loyalty and win this niche quickly. Keep an
open mind to everything. Serve on the front line. Look, listen, observe customer behavior, their reactions to
price, products and systems. Respond quickly to any negatives, exploit the positives. Seek feedback. Don’t be
defensive and protective. Be the general and make sure there is a clear authority in the beachhead phase with
full rights and responsibility to exploit opportunities as they arise and to guide the business through to the
breakeven point.

Competitive Advantage
 Excellent customer service builds
relationships with customers and
ultimately increases Lowe’s share
of mind when a potential customer
is looking for inspiration for a
project or a solution to a problem
Why Focus on Customer Service?
 Excellent customer service
cannot be easily imitated
by competitors unlike
products and prices
What Makes Customer Service Excellent?
 Through positive attitudes, extensive
knowledge of products, sound advice to
customers, and creating an overall
convenient experience, a Coffee Shop
can achieve excellent customer service
 Exceeding expectations satisfies the customers’
delight need. When delight needs are met, it
gives the customer the urge to share about
their experience. Outlets include friends, social
media, and possibly an online review
 Employees in a Coffee Shop are more than just
sales associates – they’re consultants
3
 Convenience
o The ease of finding and
selecting a product
 Communication
o Positive interactions with
employees
 Solutions
o Ultimately selecting the
correct item to fill the
customers’ need

How customers think …
Consumer Decision Process
Need Recognition
Information Search
Purchase
Post Purchase
Evaluation
Evaluation of
Alternatives
Students have a variety of options to fulfill their need for
coffee (functional need), peer acceptance (symbolic need),
and entertainment/socialization (experiential need)
 Coffee Shops represent one option.
What are they aware of; what have their past
experiences been; what do peers think; how do they
reduce their risk of a poor choice?
 Do they understand all options – is their perception
accurate – how do we change their perception?
Students consider information when fulfilling their
recognized (functional, symbolic, experiential) need…
first internally and then externally if more input is needed
 Is a Coffee Shop – at this time, a good option?
 Which Coffee Shop is the best choice?
Points of Difference between options are important
based on primary needs to be met.
 Does the student feel appreciated during the purchasing
process?
The customer uses the product to fill the need
 Does the purchased product meet the primary need?
 If not, the next time the student may:
o Return to the store to reevaluate options
o Go to the competition
Brand Equity
(awareness +
image)
Relationship
Equity
(loyalties)
Value Equity
(benefits -
costs)

Appendix A Campus Interview/Survey form
Campus Marketing Research Group:
1. Do you buy coffee from a (off campus) coffee shop? YES - NO
IF NO = What would it take to get you to buy coffee from a coffee shop?
IF YES: Your name will be entered once in a drawing for a $25 gift card if you
do a survey for us.
Your opinions are important – please be honest in your responses.
2. How does the coffee from a place like McDonalds / restaurants compare with the coffee
from a Coffee Shop?
The same 1 2 3 4 5 6 7 Coffee Shops are better (capture comments
made)
3. In the past month, how many times have you gone off campus to buy coffee at a coffee
shop?_______
4. List the TWO Coffee Shops in Springfield area that you consider to be the best / Which
two do you frequent most often. (if the list is different, find out why). Why are they the
best / most frequented?
Best #1:____________________________________ Best
#2:__________________________________________
Frequent #1:_________________________________ Frequent
#2:__________________________________________
5. Generally, there are three reasons to go to a Coffee Shop (Listed below) do you agree?
Is there another reason?
Given these reasons, which represent reasons why you go to an off campus coffee shop?
(Allocate 100 %)
a. Socialize with group of friends = what % of the time?__________%
b. To go and study = what % of the time?__________%
c. Just to get away from campus – some ‘hang loose’ time = what % of the time?
__________%
d. Other: (please specify % and reason)
6. Are some coffee shops better for different purposes (e.g. to socialize, etc). Yes – No
(if YES, examples – name shops and reasons……)
Interviewer Name
Respondent (DRAWING)
Gender: M F
Class: F S J Sr
Commuter: Yes - No
Be sure to ask if they have already
been surveyed.

7. Define “good service”….how important is it in choosing the coffee shop you go to?
Not Important 1 2 3 4 5 6 7 Very Important
(capture comments made)
8. If I owned a coffee shop that you have not yet tired, what would it take to get you to
come?
9. Would you sign up to receive email coupons from a Coffee Shop? Yes - No (if yes, which
ones)
10. Do you follow any coffee shops on social media? Yes - No (if yes, which ones)
How important at the following
Not very Important …….…… Important………….. Very Important
11. Easy Location 1 2 3 4 5 6 7
12. Price 1 2 3 4 5 6 7
13. Value 1 2 3 4 5 6 7
14. Experience/fun 1 2 3 4 5 6 7
15. Overall Quality 1 2 3 4 5 6 7
16. Speciality Drinks 1 2 3 4 5 6 7
17. Ethically Sound 1 2 3 4 5 6 7
18. Service Quality 1 2 3 4 5 6 7
Please Review the Coffee Shops below:
a. Have you heard b.Have you visited ….if visited
of this Shop in past 3 Months? …..Would you go back…. Why
19.Potter’s House……………….Yes – No Yes – No Yes – Maybe - No
20.Mudhouse………………Yes – No Yes – No Yes – Maybe - No
21.Starbucks……………….Yes – No Yes – No Yes – Maybe - No
22.The Coffee Ethic………..Yes – No Yes – No Yes – Maybe - No
23.Kingdom Coffee Yes – No Yes – No Yes – Maybe – No
24.Big Momma’s Yes – No Yes – No Yes – Maybe - No
25.Classic Rock … Yes – No Yes – No Yes – Maybe - No
26.Dancing Mule Yes – No Yes – No Yes – Maybe - No
27.Heroes Coffee …… Yes – No Yes – No Yes – Maybe – No
28.Hebrews Coffee……… Yes – No Yes – No Yes – Maybe - No
29.Brick and Mortar…… Yes – No Yes – No Yes – Maybe – No
30.Other____________..... Yes – No Yes – No Yes – Maybe - No
31. How interested would you be in a coffee shop on campus? (get details)
Not at all 1 2 3 4 5 6 7 Very
If there was a Coffee Shop on campus – what would it have to be/have to do …to get you to use it? Comments.
Do not
circle more
than two
‘7’s’

Appendix B Mystery Shopping Form
Date of Visit: ____________ Day of the week: ______________ Evaluator: __________________________
Time In: ___________ Time Out: _____________ Item Requested: __________________________
Who helped you: __________________ Where did you visit: _____________________________
Arrival / Greeting
What was your impression of the exterior of the business?
A few bad things. It’s pretty good.
Exceptional.
1 2 3 4 5 6
Comments:
What was your impression of the interior of the business?
Exceptional.
1 2 3 4 5 6
Comments:
Were you greeted upon arrival?
 No
 Yes
If no, what prevented a greeting?
If yes, how did the employee greet you?
(Check all that apply)
 Sincerity
 Smile
 Clear voice
 Eye contact
 None of the above
Were you greeted within 2 minutes of entering the shop?
 No
 Yes
How would you rate the greeting overall?
Exceptional.
1 2 3 4 5 6
Comments:
Visit & Product Information
What time of day was your visit?
 Morning (5am-10am)
 Lunch/Early Afternoon (11am-3pm)
 Dinner (4pm-6pm)
 Nighttime (7pm-12am)
How many other customers were at the business?
 1-5
 5-10
 10-15
 More than 15
Does the business sell any products other than coffee?
(Check all that apply)
 Doughnuts
 Pastries
 Brownies
 Light lunch items
 Meals
 Other drink options (smoothie, juice, soda, etc.)
 Bagged coffee or tea
 Other items, please specify below
If a business sells other products, in front of an employee,
mention being hungry. Does the employee suggest an
item? What is their first suggestion?
Does the business feature a specialty drink? If yes, what is
it? Did the employee offer that specific drink to you?
Request information about a specific drink. Did the
employee have good product knowledge?
Exceptional.
1 2 3 4 5 6
Comments:
Did the employee ask if you were interested in any other
items after you ordered your drink?

How did you receive your drink?
 They called my name
 Brought it out to my table
 Got it by myself
 Set it out on the counter
 Personally hand it to you
What was an issue with how your received your drink?
Was the drink the temperature it needed to be?
 Colder than it should have been
 Too hot
 Perfect temperature
How would you rate the quality of the drink?
Exceptional.
1 2 3 4 5 6
Comment on Taste:
Do you believe the drink fit the description given?
 No
 Yes
Do you think the employees could be better trained on
offering other products or upsells that would cause
customers to be more likely to make a purchase?
 No
 Yes
Does this business offer a rewards program?
 No
 Yes
Please obtain reward materials/card/brochure.
Comments:
General Impressions
What words describe your impression of this business:
(circle)
Clean Friendly Organized Professional Helpful
Considerate Well Informed Easy To Work With
Creative Unique Your Word:_______________
Dirty Rude Disorganized Chaotic Rushed
Confusing Loud I’m Not A Priority Un-informed
Your Word:________________
Was this business more geared towards relaxing, hanging out with
friends, or studying?
What do you believe caused it to be geared towards that specific
activity?
Write one to two sentences to describe your experience:
What positive thing stood out most in your visit?
What negative thing stood out most in your visit?
Did this experience make you want to shop at this
business again?
Was there something that stood out to you about this
business?

Appendix C: Related Evangel Campus Coffee Research
Enactus Club memebers conducted a market feasibility study to assist the Evangel University in evaluating the potential
to develop an on-campus coffee shop The following conclusions based on an analysis of the survey results:
 There is a sufficient number of students who regularly purchase coffee off campus to make a coffee shop financially
feasible. The 606 students who responded make over 6,200 visits to off campus coffee shops each month. 53% visit
5-14 times per month and another 21% 15-30 times. The average number of visits is 10.9.
 The primary reason for choosing a coffee shop is not related to a particular brand image (7%). The primary reasons
for visiting off-campus coffee shops are good quality beverage (46%) and preferred social atmosphere (40%).
 The size, atmosphere, and services would have to be competitive with off-campus sites to meet the students’ desire
to socialize and study at a coffee shop. Out of every 10 visits, students said their primary purpose is to socialize
(37%), grab & go (31%), and study (30%). 73% of these visits are “sit-down” with 36% being for 2+ hours. The
Mudhouse and Potter’s House are the competitors most often visited for study and socialization on weekday and
weekend nights. Starbucks is getting nearly 50% of the weekday “day” visits, 19% of the weekday “night” visits, and
only 5% of the weekend night visits.
How long do you stay? When do you most frequently visit coffee shops?

Main reasons for choosing that Coffee Shop
Out of every 10 visits to an off campus coffee shop, how many times do you go for each of the following purposes?
Students responded that 67% of the time their purpose for visiting a coffee
shop is to socialize or study. “Grab & go” is identified as the purpose 31% of the
time
Answer
Average
Value
Percent
Study 2.87 30%
Socialize 3.52 37%
Grab and Go 2.93 31%
Other 0.19 2%
Total 100%

Brick & Mortar Coffee Ethic Dancing Mule
Potters House Starbucks Hebrews
Classic Rock Big Momma’s Heros
Kingdom Mudhouse
,
Research conducted by
Marketing students of
Evangel University on local
Coffee Shops – Spring 2015
Big Momma’s, Brick & Mortar,
Classic Rock, Coffee Ethic, Dancing
Mule, Hebrews, Heroes, Kingdom,
Mudhouse, Potter’s House and
Starbucks

Final Copy March 16

Recommended

Recommended

More Related Content

Similar to Final Copy March 16

Similar to Final Copy March 16 (20)

Final Copy March 16