Market Research on consumer behavior towards coffee bars

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Market Research on consumer behavior towards coffee bars

  1. 1. 1 CONSUMERS’ PERCEPTION ABOUT COFFEE BARS Shakshi Jindal (112D17) Ch.Sai Praveen (112D23) AbhinavBhatnagar (112D25) SumitNandal (112D27) UtkarshJaiswal (112D41) MBA CLASS OF 2014 AMITY BUSINESS SCHOOL AMITY UNIVERSITY UTTAR PRADESH SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA 2013 Submitted to: Prof. Dr.S . K. Laroiya
  2. 2. 2 DECLARATION Title of Project Report:Consumers’ perception about Coffee bars We declare - (a) That the work presented for assessment in this Report is our own, that it has not been previously presented for another assessment and that my debts (for words, data, arguments and ideas) have been appropriately acknowledged. (b) That the work conforms to the guidelines for presentation and style set out in the relevant documentation. Date : ……………
  3. 3. 3 C E RT I FI CA T E T h i s i s t o hereby certify that Shakshi Jindal, Ch.Sai Praveen, AbhinavBhatnagar, SumitNandal, UtkarshJaiswal students of Masters of Business Administration at Amity Business School; Amity University Uttar Pradesh have completed the Project Report on “Consumers perception abountCoffee bars” under my guidance. Prof. Dr. S. K. Laroiya
  4. 4. 4 Acknowledgement We take this opportunity to express our profound gratitude and deep regards to our guide Professor Dr. S. K. Laroiya for his exemplary guidance, monitoring and constant encouragement throughout the course of this research project. The blessings, help and guidance given by him from time to time shall carry us a long way in the journey of life on which we are about to embark.. And finally, we are thankful to Almighty, our parents and colleagues for their valuable advice and constant encouragement without which this project would not have been possible.
  5. 5. 5 LETTER OF TRANSMITTAL Prof. S. K. Laroiya Marketing Research March 20th, 2013 SUB -Marketing Research Project on Consumers’ perception about coffee bars Respected Sir, We have the pleasure of submitting the final Report to examine consumer perception about different fast food outlets. The Group has studied the ground realities on ways consumers perceive fast food, advertisements and various brands’ popularity. We have also suggested some recommendations to increase sales, advertisement recall and promotional strategy effectiveness. We thank you for entrusting us with this responsibility. Yours sincerely, Shakshi Jindal Ch.Sai Praveen AbhinavBhatnagar SumitNandal UtkarshJaiswal
  6. 6. 6 Table of Contents S. No. Topic Pg. No. 1 Introduction 7 2 Objective of the research 8 3 Research Methodology 9 3.1 Research Design 10 3.2 Sample Frame 11 3.3 Sample size 11 4 Data analysis and interpretation 4.1 Descriptive Analysis 12 4.2 Regression 34 4.3 Independent t-test 37 4.4 Cross-tabulation 38 4.5 Perceptual Mapping 44 5.1 Conclusion 45 5.2 Limitations 46 5.3 Annexure 48
  7. 7. 7 Introduction Coffee shops are being built at a phenomenal rate in India. Coffee was a prime reason before for people to come to coffee houses. Other factors these days affect the footfall more other than just quality of coffee. Coffee shop customers, by nature, are looking for something special — that’s why they are willing to pay so much for a cup of coffee! The environmental experience and aesthetics is nowadays a major constituent in the way customers perceive about a coffee shop. The coffee will get people to come to a place but the environment will cause them to stay there. India has emerged as one of the favored nations for coffee shops popularly termed as Cafes. The coffee chains market in India has witnessed a tremendous growth so far and is expected to grow at a high pace during 2010-16. Coffee shops are frequented by both the young and old, which makes understanding the local market demographics is all the more important. The service philosophy and the physical environment need to be critically analyzed by national and international chains other than just premium coffee. In order to hold the clientele and maintain economic criteria the coffee outlets need a USP these days i.e. a unique selling proposition like offering quick service, providing loyalty discounts etc. Therefore in order to enhance the coffee culture with the Indian middle class consumers who are ready to spend more and be a part of global lifestyle and culture, coffee houses in the country are on an expansion spree. From small-sized coffee houses to classy coffee lounges leading coffee retailers such as Cafe Coffee Day, Barista and Costa Coffee have all been fighting hard to attract India's growing middle class. The entry of coffee chains like Starbucks in India will change the outlook of the Indian coffee market. Even before the coffee chain revolution, coffee had a strong presence in South Indian homes, with filter coffee. Also before the market entry of Starbucks the various consumption patterns and repeated purchase patterns were studied showing that there is high growth in coffee culture in India.
  8. 8. 8 Objective of Research To provide a clear insight about the customer perception we will have following points as our major objectives for the analysis –  To estimate importance of various factors affecting the choice of coffee outlets by Indian consumers. To study the spending pattern of people from various age group’s income groups and gender on coffee houses.  To find out potential of the coffee house market in India and customer perception towards brand loyalty and entrance of new coffee houses in India.  To analyze effect of age , income and profession and education on the buying decision.  Identify the parameters that play a major role in a consumer’s selection of international chain coffee bars.
  9. 9. 9 Research Methodology Research refers to the search for knowledge. It means re- searching and forming a conclusion about an issue under study. A Research is concerned with converting the problem statement into a testing project. The best design depends on the research questions. Thus research methodology is a scientific and systematic method of searching for pertinent knowledge on a specific subject. It is an art of scientific investigation. It is an academic activity and comprises of the following steps:  Defining and redefining problems  Formulating hypothesis or suggested solutions  Collecting, organizing and evaluating data  Making deductions and reaching on to conclusions  Carefully testing the findings and conclusions to determine whether they fit the formulating hypothesis  Accepting or rejecting the formulated hypothesis based on the conclusions  Providing a significantly confident solution for the pre-defined problem stated above. Research is thus an original contribution and an addition to the existing stock of knowledge to ensure its advancement and application to problem solving. There are various methods and ways in which research can be conducted and are referred to as the research methodology. Thus, Research methodology is the process used to collect information and data for the purpose of making business decisions. It may include publication research, interviews, observations, experiments, surveys and other research techniques. It may also include both present and historical information. It is used to give a clear cut idea as to what is being carried out in the research. It starts right from the selection of the topic and extends up to execution and finally recommendations and conclusions from the final research.
  10. 10. 10 Research Design A research design is a detailed blue print used to guide a research study towards its objectives. It’s a series of decisions taken together comprising of a master plan or a model for the conduct of a research on consonance with the research objectives. The research design has been considered a "blueprint" for research, dealing with at least four problems: what questions to study, what data are relevant, what data to collect, and how to analyze the results.It details the procedures necessary for obtaining the information needed to structure or solve the marketing research problems. A research design is a master plan which specifies the steps and procedures for collecting and analyzing the needed information. The choice of a research design largely depends on the objectives of the research and how much is known about the problem and these objectives prior to the actual conduct of the research by the researcher. The overall research design for any particular project may include one or more types of research designs as part(s) of it. Traditionally there are three types of research designs namely exploratory research design, descriptive research designs and causal research designs.  Exploratory Research Design: It is an unstructured and informal research that is undertaken to gain background information about the general nature of the research problem under consideration. It is conducted when the researcher does not have sufficient knowledge about the problem and needs additional, new or recent information. The researcher knows very little about consumer reaction to market stimuli to permit the drawing of a sound hypothesis. This type of research design is very flexible and versatile.  Descriptive Research Design: It is a more structured, pre-planned and formal research in which information is clearly defined and there is prior formulation of specific hypothesis. It is undertaken to provide answers to questions of who, what, where, when and how but not why and these studies collect data for a definite purpose. It does not show a direct cause and effect between the variables under study. It can be of two types: cross sectional studies, which measure a unit from the sample at only one point in time
  11. 11. 11 (e.g. Sample surveys), and, longitudinal studies, which repeatedly draw sample units of a population over time.  Causal Research Design: This type of research design is most appropriate when it is necessary to show that one variable causes or determines the values of the other variables. It includes understanding a problem in terms of conditional statements of the form “If X, then Y.” The research design adopted in this market research project is a mix of both exploratory and descriptive research designs. The exploratory research was conducted by use of exploratory techniques like brainstorming to generate a number of possible issues faced by consumers while selection of coffee houses and factors that affect consumer’s attitude in buying behavior from national and international chains.Descriptive research was adopted to describe the characteristic like attitude, perception, awareness levels and buying behavior of relevant groups in the sample. Sample FrameRespondents from Delhi/NCR and Gurgaon sector have given their response. Respondents from different states in India have given their responses as coffee houses are present almost every state and metropolitan cities. Many Respondents have different perspective so a larger demography is covered instead of a particular sector and the major objective of the research was to identify the consumer perspective which gives us much clear picture of their attitude towards coffee houses. Consumers which have been to major coffee houses present in Indian Market have given their response. All the respondents were age of more than eighteen years. Respondents have given their responses through different modes. Most of them filled the response through interview, over the mail, telephonic interview for respondents in different states and online survey method. Moreover the data has been collected through different modes and compiled together in order to represent it graphically and representation is done through different pie charts and tables using different statistical tools. Sample Size: 331 respondents interviewed in person. Sampling Methodology: Convenience Sampling and Judgment Sampling was used
  12. 12. 12 Data Analysis and interpretation Descriptive Analysis Gender Our sample of 331 respondents consisted of 51.7% male and 48.3% female male Valid female Total Frequenc y 171 160 331 Gender Percent 51.7 48.3 100.0 Valid Cumulative Percent Percent 51.7 51.7 48.3 100.0 100.0
  13. 13. 13 Age Around 80% of our sample is in age bracket of 21-32 years which is our target population. 17-20 21-26 Valid 27-32 33 and above Total age Frequenc Percent y 49 14.8 220 66.5 Valid Cumulative Percent Percent 14.8 14.8 66.5 81.3 51 15.4 15.4 96.7 11 3.3 3.3 100.0 331 100.0 100.0
  14. 14. 14 Annual Household Income For our research, we have got a fair distribution of respondents in different income groups. Valid under 3 lakhs 3-5lakhs 5-10lakhs 10lakhs and above Total Missing System Total annual household income Frequency Percent Valid Percent 43 13.0 13.1 93 28.1 28.4 105 31.7 32.0 87 26.3 26.5 328 3 331 99.1 .9 100.0 100.0 Cumulative Percent 13.1 41.5 73.5 100.0
  15. 15. 15 Education For our research, we have got a well-educated sample with majority of people pursuing atleast graduation. education Frequency Percent high school graduation postValid graduation higher studies Total Valid Cumulative Percent Percent 3.3 3.3 45.6 48.9 11 151 3.3 45.6 162 48.9 48.9 97.9 7 331 2.1 100.0 2.1 100.0 100.0
  16. 16. 16 Occupation Most of the respondents for our research are students. occupation Frequency Percent Valid student service business profession al Total 209 55 25 63.1 16.6 7.6 Valid Percent 63.1 16.6 7.6 42 12.7 12.7 331 100.0 100.0 Cumulative Percent 63.1 79.8 87.3 100.0
  17. 17. 17 Spending Leisure time Majority of our respondents said that they wanted to go out with friends to spend the leisure time. How do you spend your leisure time Frequency Percent Valid Percent sports surfing net Valid 39 80 11.8 24.2 11.8 24.2 Cumulative Percent 11.8 36.0 T.V. Going on a walk Reading Going out with friends(to cafes, movies, etc) Total 64 25 32 19.3 7.6 9.7 19.3 7.6 9.7 55.3 62.8 72.5 91 27.5 27.5 100.0 331 100.0 100.0
  18. 18. 18 Kind of beverages you like From our research, we got to know that there is an equal proportion in consumption of hot and cold beverages. hot Valid cold Total Which kind of beverages do you like Frequenc Percent Valid Cumulative y Percent Percent 164 49.5 49.5 49.5 167 331 50.5 100.0 50.5 100.0 100.0
  19. 19. 19 Hot beverage that is preferred Half of our respondents like coffee in hot beverages. Valid Which hot beverage do you like normally Frequenc Percent Valid Cumulative y Percent Percent milk 49 14.8 14.8 14.8 tea 52 15.7 15.8 30.6 coffee 169 51.1 51.2 81.8 hot chocolate Total Missing System Total 60 18.1 18.2 330 1 331 99.7 .3 100.0 100.0 100.0
  20. 20. 20 Place preferred to have coffee About 45% of our respondents preferred to have coffee in coffee bars. 33% prefer to have coffee at home. Coffee bars should concentrate in attracting those people towards coffee bars. Home coffee bars Where do you prefer to have coffee Frequency Percent Valid Cumulative Percent Percent 110 33.2 33.2 33.2 151 45.6 45.6 78.9 Valid college/office cafeteria 70 21.1 21.1 Total 331 100.0 100.0 100.0
  21. 21. 21 Frequency of visiting a coffee bar Majority of our respondent’s i.e about 28% are visiting coffee bar 3times a month How often do you usually visit a coffee bar in a month Frequenc Percent Valid Cumulative y Percent Percent One 67 20.2 20.2 20.2 Two 64 19.3 19.3 39.6 three 92 27.8 27.8 67.4 Valid Four 58 17.5 17.5 84.9 five and more than five Total 50 15.1 15.1 331 100.0 100.0 100.0
  22. 22. 22 Time spent in a coffee bar About 50 % of our respondents are spending 30mins to 1hr in coffee bars How long do you usually stay in a coffee bar Frequency Percent Valid Cumulative Percent Percent less than 30 92 27.8 28.0 28.0 mins 30 mins to 1 167 50.5 50.8 78.7 hour Valid more than 1 70 21.1 21.3 100.0 hour Total 329 99.4 100.0 Missing System 2 .6 Total 331 100.0
  23. 23. 23 Amount spent in coffee bar Most of our respondents spend an amount of 100-300 rs in coffee bars On your last visit to coffee bar, what is the amount you spent Frequenc Percent Valid Cumulative y Percent Percent less than 100 43 13.0 13.0 13.0 100-200rupees 155 46.8 46.8 59.8 200-300 rupees 75 22.7 22.7 82.5 Valid more than 300 58 17.5 17.5 100.0 rupees Total 331 100.0 100.0
  24. 24. 24 Visiting a coffee bar Most of our respondents are visiting coffee bars in Saturday followed by Sunday and Friday during a week. 75% of our respondents are visiting coffee bars in the evening. When do you usually visit a coffee bar Frequency Percent Valid Cumulative Percent Percent Morning 25 7.6 7.6 7.6 afternoon 38 11.5 11.5 19.0 Valid evening 252 76.1 76.1 95.2 night Total 16 331 4.8 100.0 4.8 100.0 100.0
  25. 25. 25 Visiting coffee bar with About 90% of respondents in our sample are visiting coffee bars with friends and colleagues. With whom you generally visit coffee bar Frequenc Percent Valid Cumulative y Percent Percent friends 253 76.4 76.4 76.4 Family 25 7.6 7.6 84.0 Valid colleagues 46 13.9 13.9 97.9 Alone 7 2.1 2.1 100.0 Total 331 100.0 100.0
  26. 26. 26 Ordering coffee every time About 37% of our respondents are not ordering coffee during their visit to a coffee bar. Do you order a coffee every time you visit a coffee shop Frequenc Percent Valid Cumulative y Percent Percent yes 208 62.8 62.8 62.8 Valid no 123 37.2 37.2 100.0 Total 331 100.0 100.0
  27. 27. 27 Food with coffee About 30% of our respondents are not ordering food with coffee. From this, we may interpret that; respondents may prefer to drink only coffee or the food provided in the coffee bars are not worth eating. Coffee bars should try to include more number of food items in their menu in order to attract customers. yes Valid no Total Do you order food along with coffee Frequenc Percent Valid Cumulative y Percent Percent 236 71.3 71.3 71.3 95 331 28.7 100.0 28.7 100.0 100.0
  28. 28. 28 Kind of coffee chain About 85% of our respondents wanted to have coffee in national/international chain coffee bars Which kind of coffee shop do you like Frequenc Percent Valid y Percent National/International 278 84.0 84.0 Chain Valid Non-chain, privately 53 16.0 16.0 owned Total 331 100.0 100.0 Cumulative Percent 84.0 100.0
  29. 29. 29 Customers’ expectations from coffee bars From the mean ranks we can say that the customers wanted to have quality of coffee as their highest preference followed by speed of service and price of the items. Attribute Ranks Mean Promotional offers 5.13 speed of service 3.14 quality of coffee 1.78 variety of menu items 4.54 friendly employees 5.08 ambience of the store 4.51 price of the items 3.78
  30. 30. 30 Expectation of Additional Benefits Customers are giving Wi-Fi as the first important attribute followed by music and entertainment. In our research, we found that costa coffee is not providing Wi-Fi accessibility to the customers. So, Costa coffee should start providing Wi-Fi in their outlets. Additional Attribute Ranks Mean Wi-Fi accessibility 2.49 Newspaper/Magazines 4.69 Music 2.62 merchandise for sale 5.89 entertainment 3.64 loyalty cards/discount 4.59 coupons
  31. 31. 31 Satisfaction Level of attributes: Barista Attributes Mean Order of Satisfaction Customer’s Expectation Promotional Offers 2.77 7 7 Speed of Service 3.69 2 2 Quality of Coffee 3.91 1 1 Variety of menu items 3.33 5 5 Friendly Employees 3.35 4 6 Ambience of the store 3.65 3 4 Price of the items 3.11 6 3 Barista got a low satisfaction rating in Price of the items. In order to reach customers expectation and attract customers, it should concentrate in pricing the items. Café Coffee day Attributes Mean Order of Satisfaction Customer’s Expectation Promotional Offers 2.96 7 7 Speed of Service 3.40 4 2 Quality of Coffee 3.85 1 1 Variety of menu items 3.34 5 5 Friendly Employees 3.49 3 6 Ambience of the store 3.67 2 4 Price of the items 3.11 6 3 Café coffee day got low satisfaction ratings in Speed of service and Price of the items. In order to reach customers expectation and attract customers, it should concentrate in service and pricing the items.
  32. 32. 32 Starbucks Attributes Mean Order of Satisfaction Customer’s Expectation Promotional Offers 2.77 6 7 Speed of Service 3.37 3 2 Quality of Coffee 3.60 2 1 Variety of menu items 3.34 4 5 Friendly Employees 3.26 5 6 Ambience of the store 4.00 1 4 Price of the items 2.72 7 3 Starbucks got very low satisfaction rating in Price of the items. In order to reach customers expectation and attract customers, it should concentrate in pricing the items. Costa Coffee Attributes Mean Order of Satisfaction Customer’s Expectation Promotional Offers 3.00 7 7 Speed of Service 4.12 2 2 Quality of Coffee 4.27 1 1 Variety of menu items 3.73 3 5 Friendly Employees 3.68 4 6 Ambience of the store 3.58 5 4 Price of the items 3.48 6 3 Costa coffee got a low satisfaction rating in Price of the items. In order to reach customers expectation and attract customers, it should concentrate in pricing the items and try to improve ambiance of the store as well.
  33. 33. 33 Mocha Attributes Mean Order of Satisfaction Customer’s Expectation Promotional Offers 2.90 7 7 Speed of Service 3.15 4 2 Quality of Coffee 3.92 1 1 Variety of menu items 3.83 2 5 Friendly Employees 2.94 6 6 Ambience of the store 3.19 3 4 Price of the items 3.08 5 3 Mocha got low satisfaction ratings in Speed of service and Price of the items. In order to reach customers expectation and attract customers, it should concentrate in service and pricing the items.
  34. 34. 34 Regression Analysis: Comparing overall satisfaction level and Quality of coffee using regression Model Summary Mode R R Square Adjusted R Std. Error of l Square the Estimate a 1 .665 .442 .440 .761 a. Predictors: (Constant), Rate the last visited coffee shop on quality of coffee Model ANOVAa df Model ANOVAa df Sum of Mean F Sig. Squares Square Regression 150.188 1 150.188 259.443 .000b 1 Residual 189.875 328 .579 Total 340.064 329 a. Dependent Variable: Rate overall service quality satisfaction level of the coffee bar you visited last b. Predictors: (Constant), Rate the last visited coffee shop on quality of coffee Sum of Mean F Sig. Squares Square Regression 150.188 1 150.188 259.443 .000b 1 Residual 189.875 328 .579 Total 340.064 329 a. Dependent Variable: Rate overall service quality satisfaction level of the coffee bar you visited last b. Predictors: (Constant), Rate the last visited coffee shop on quality of coffee Interpretation: As p value is < 0.05, we can say that there is significant relationship between the two variables. R square is 44.2% which says that 44.2% of the variance in overall satisfaction level is explained by the Quality of coffee
  35. 35. 35 Comparing overall satisfaction level and speed of service using regression Model Summary Mode R R Square Adjusted R Std. Error of l Square the Estimate a 1 .620 .385 .383 .799 a. Predictors: (Constant), Rate the last visited coffee shop on speed of service Model Sum of Squares ANOVAa df Mean Square F Sig. Regression 130.930 1 130.930 205.347 .000b 1 Residual 209.134 328 .638 Total 340.064 329 a. Dependent Variable: Rate overall service quality satisfaction level of the coffee bar you visited last b. Predictors: (Constant), Rate the last visited coffee shop on speed of service Model Coefficientsa Unstandardized Standardized Coefficients Coefficients B Std. Error Beta 1.690 .149 t Sig. (Constant) 11.314 .000 Rate the last visited 1 coffee shop on speed of .574 .040 .620 14.330 .000 service a. Dependent Variable: Rate overall service quality satisfaction level of the coffee bar you visited last Interpretation: As p value is < 0.05, we can say that there is significant relationship between the two variables. R square is 38.5% which says that 38.5% of the variance in overall satisfaction level is explained by the Speed of service.
  36. 36. 36 Crosstabulation between gender and amount spent in coffee bars On your last visit to coffee bar, what is the amount you spent less than 100 Count Male gender Female Total % within gender Count % within gender Count % within gender 100-200rupees 200-300 rupees more than 300 rupees 24 85 41 21 171 14.0% 49.7% 24.0% 12.3% 100.0% 19 70 34 37 160 11.9% 43.8% 21.2% 23.1% 100.0% 43 155 75 58 331 13.0% 46.8% 22.7% 17.5% 100.0% A Higher percentage of Women (44.38%) are spending more than Rs.200 in a coffee bar compared to men (36.3%) Total
  37. 37. 37 T-Test T-test for comparing Gender and amount spent in coffee bars Here, H0: no significant difference between the amounts spent for males and females. H1: significant difference between the amounts spent for males and females. SPSS Result: Group Statistics gender On your last visit to coffee bar, what is the amount you spent N Mean Std. Deviation Std. Error Mean male 171 2.35 .870 .067 female 160 2.56 .976 .077 Independent Samples Test Levene's Test for Equality of Variances F Sig. On your last visit to coffee bar, what is the amount you spent Equal variances assumed Equal variances not assumed 6.771 .010 t-test for Equality of Means t df -2.081 Sig. (2tailed) Mean Difference Std. Error Difference 95% Confidence Interval of the Difference Lower Upper 329 .038 -.211 .101 -.411 -.012 -2.073 318.575 .039 -.211 .102 -.412 -.011 Since p-value (0.010) < 0.05, we accept H1 i.e there is a significant difference between the amounts spent and gender
  38. 38. 38 Crosstabulation between gender and frequency of visiting a coffee bar in a month Count male % within gender gender Count female % within gender Count Total % within gender How often do you usually visit a coffee bar in a month one two three four five and more than five 30 36 57 22 26 Total 171 17.5% 21.1% 33.3% 12.9% 15.2% 100.0% 37 28 35 36 24 160 23.1% 17.5% 21.9% 22.5% 15.0% 100.0% 67 64 92 58 50 331 20.2% 19.3% 27.8% 17.5% 15.1% 100.0% From the above table, we can say that the distribution is highly similar for the genders.
  39. 39. 39 T test for comparing gender and frequency of visiting a coffee bar in a month Here, H0: no significant difference between the frequency of visiting a coffee bar for males and females. H1: significant difference between the frequency of visiting a coffee bar for males and females. SPSS Result Group Statistics gender N male How often do you usually visit a coffee bar in a month female Mean Std. Deviation Std. Error Mean 171 2.87 1.281 .098 160 2.89 1.387 .110 Independent Samples Test Levene's Test for t-test for Equality of Means Equality of Variances F Sig. t df Sig. Mean Std. 95% Confidence (2Differen Error Interval of the tailed) ce Differe Difference nce Lower Upper How often do you usually visit a coffee bar in a month Equal variances assumed Equal variances not assumed 3.833 .051 -.110 329 .912 -.016 .147 -.305 .272 -.110 322.172 .913 -.016 .147 -.306 .273 Since p-value (0.051) > 0.05, we accept null hypothesis i.e there is no significant difference between gender and frequency of visiting a coffee bar
  40. 40. 40 Crosstabulations Crosstabulation between spending leisure time and frequency of visiting a coffee bar Count How often do you usually visit a coffee bar in a month five and more than one two three four five How do you send your sports 10 5 7 12 5 leisure time surfing net 17 18 15 18 12 T.V. 14 12 27 5 6 Going on a walk 5 8 5 2 5 Reading 13 6 5 0 8 Going out with 8 15 33 21 14 friends(to cafes, movies, etc) Total 67 64 92 58 50 Interpretation: The maximum frequency for the number of times visited a coffee shop in a month is coming out to be of 3 times a month and this is also highest for the people spending their leisure time by going out with friends to cafes, movies, etc. Therefore, visit to a coffee shop on an average is restricted to 3 times a month. Total 39 80 64 25 32 91 331
  41. 41. 41 Cross tabulation between gender and coffee drinker rating Rate yourself as a coffee drinker Total Rate yourself as a coffee drinker * gender Crosstabulation gender male female Count 15 17 Very Low % within 8.8% 10.6% gender Count 20 21 Low % within 11.7% 13.1% gender Count 31 48 neither low nor high % within 18.1% 30.0% gender Count 82 43 high % within 48.0% 26.9% gender Count 23 31 very high % within 13.5% 19.4% gender Count 171 160 % within 100.0% 100.0% gender Interpretation: Males (61.5%) are very high as coffee drinkers as compared to females (46.3%). Therefore, assumed that the visitors are mostly males, hence, coffee houses can have entertainment according to male section more. Total 32 9.7% 41 12.4% 79 23.9% 125 37.8% 54 16.3% 331 100.0%
  42. 42. 42 Crosstabulation between annual household income and pocket money/income influence annual household income * Does change in your pocket money/income influences the frequency of visits to coffee shops Crosstabulation Does change in your pocket Total money/income influences the frequency of visits to coffee shops Yes no Count 28 15 43 under 3 lakhs % within annual household 65.1% 34.9% 100.0% income Count 73 20 93 3-5lakhs % within annual household 78.5% 21.5% 100.0% income annual household income Count 82 23 105 5-10lakhs % within annual household 78.1% 21.9% 100.0% income Count 41 46 87 10lakhs and % within annual household above 47.1% 52.9% 100.0% income Count 224 104 328 Total % within annual household 68.3% 31.7% 100.0% income Interpretation: From the data we can say that change in pocket money will affect the frequency of visits to coffee shops; hence this is a price sensitive category. Therefore, before setting up the prices of the products in the coffee shop, the sellers should be well aware of their target market and any change in the economic conditions.
  43. 43. 43 Crosstabulation between kind of coffee shop and annual household income annual household income under 3 3-5lakhs 5-10lakhs 10lakhs lakhs and above 31 74 90 80 Total 275 National/Inte Count rnational % within annual 73.8% 78.7% 85.7% 92.0% 83.8% Chain household income 11 20 15 7 53 Non-chain, Count privately % within annual 26.2% 21.3% 14.3% 8.0% 16.2% owned household income Count 42 94 105 87 328 Total % within annual 100.0% 100.0% 100.0% 100.0% 100.0% household income Interpretation: Branded coffee shops are the most preferred ones and comparative percentage of respondents fall in income group of 5-10 lakhs and 10 lakhs above. Which kind of coffee shop do you like Crosstabulation between household income and amount spent annual household income * On your last visit to coffee bar, what is the amount you spent Crosstabulation On your last visit to coffee Total bar, what is the amount you spent less than 200 more than 200 rupees 91 45 136 under 5 lakhs 66.9% 33.1% 100.0% annual household income 104 88 192 5 lakhs and above 54.2% 45.8% 100.0% 42 58 328 Total 12.8% 17.7% 100.0% Interpretation: In both the income groups the average expenditure is coming out to be less than 200 rupees. Therefore, average expenditure in a coffee house is less than 200 rupees.
  44. 44. 44 Perceptual Mapping 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Barista Café Coffee Day Star Bucks Costa Coffee Mocha Interpretation: As observed before Quality of coffee and Speed of service are the most important attributes to consider a coffee house and Costa Coffee is rated highest in both these attributes whereas Mocha and Starbucks need to improve on it. Also on Ambience of store and Friendly employees Mocha is rated the least whereas Ambience of Starbucks gets the highest ratings.
  45. 45. 45 Conclusions and Findings: 1) Our sample of 331 respondents consisted of 51.7% male and 48.3% female 2) Around 80% of our sample is in age bracket of 21-32 years which is our target population. 3) A fair distribution of respondents in different income groups. For our research, we have got a well-educated sample with majority of people pursuing at least graduation 4) Most of the respondents for our research are students. 5) Majority of our respondents said that they wanted to go out with friends to spend the leisure time. 6) There is an equal proportion in consumption of hot and cold beverages. 7) About 45% of our respondents preferred to have coffee in coffee bars. 33% prefer to have coffee at home. Coffee bars should concentrate in attracting those people towards coffee bars. 8) Majority of our respondent’s i.e about 28% are visiting coffee bar 3 times a month 9) About 50 % of our respondents are spending 30mins to 1hr in coffee bars 10) Most of our respondents spend an amount of 100-300 rs in coffee bars 11) Most of our respondents are visiting coffee bars in Saturday followed by Sunday and Friday during a week. 75% of our respondents are visiting coffee bars in the evening . 12) About 37% of our respondents are not ordering coffee during their visit to a coffee bar. 13) About 30% of our respondents are not ordering food with coffee. From this, we may interpret that; respondents may prefer to drink only coffee or the food provided in the coffee bars are not worth eating. Coffee bars should try to include more number of food items in their menu in order to attract customers. 14) About 85% of our respondents wanted to have coffee in national/international chain coffee bars From the mean ranks we can say that the customers wanted to have quality of coffee as their highest preference followed by speed of service and price of the items. 15) Customers are giving Wi-Fi as the first important attribute followed by music and entertainment. 16) In our research, we found that costa coffee is not providing Wi-Fi accessibility to the customers. So, Costa coffee should start providing Wi-Fi in their outlets.
  46. 46. 46 17) A Higher percentage of Women (44.38%) are spending more than Rs.200 in a coffee bar compared to men (36.3%) 18) The maximum frequency for the number of times visited a coffee shop in a month is coming out to be of 3 times a month and this is also highest for the people spending their leisure time by going out with friends to cafes, movies, etc. Males (61.5%) are very high as coffee drinkers as compared to females (46.3%). Therefore, assumed that the visitors are mostly males, hence, coffee houses can have entertainment according to male section more. 19) Branded coffee shops are the most preferred ones and comparative percentage of respondents fall in income group of 5-10 lakhs and 10 lakhs above As observed before Quality of coffee and Speed of service are the most important attributes to consider a coffee house and Costa Coffee is rated highest in both these attributes whereas Mocha and Starbucks need to improve on it. Also on Ambience of store and Friendly employees Mocha is rated the least whereas Ambience of Starbucks gets the highest ratings. Limitations 1) The problem of differentiating between ranking and rating by the respondents in the questionnaires was seen that created difficulty in entering data into SPSS. 2) Time constraint for observing each respondent was seen 3) Limited sample size 4) Area constraint 5) Respondents made various errors and concealed personal information (mobile numbers) specially female respondents.
  47. 47. 47 Coffee house opinion survey This questionnaire pertains to a project being conducted by a MBA class at Amity University, Noida. The purpose of this project is to better understand the perceptions and expectations of consumers for visitingcoffee shops. The questionnaire will take only 5-10 minutes to complete and all the responses will remain strictly confidential. Thank you for your help in this project. 1. How do you spend your leisure time? a) Sports c) T.V. e) Reading b) Surfing net d) Going on a walk f) Going out with friends (to cafes, movies…..) 2. Which kind of beverages do you like? a) Hot b) Cold 3. Which hot beverages do you prefer normally? a) Milk c) Coffee b) Tea d) Hot chocolate 4. Rate yourself as a coffee drinker on a scale of 1 to 5 (1 being lowest and 5 being highest) 1 2 5. Where do you prefer to have coffee? a) Home c) College/office cafeteria 3 4 5 b) Coffee bars 6. How often do you usually visit a coffee bar? (in a month) a) One b) Two d) Four e) Five or More 7. How long do you usually stay in a coffee bar? a) < 30min b) 30min to 1hr c) Three c) >1hr 8. On your last visit to the coffee bar, what is the amount you spent? a) < 100Rs b) 100-200Rs c) 200-300Rs d) >300Rs 9. On which day of the week, you would like to visit a coffee bar? (you can select more than one) a) Monday b) Tuesday c) Wednesday d) Thursday e) Friday f) Saturday g) Sunday
  48. 48. 48 10. When do you usually visit a coffee bar? a) Morning c) Evening b) Afternoon d) Night 11. With whom you generally visit a coffee bar? a) Friends c) Colleagues b) Family d) Alone 12. Do you order a coffee every time you visit a coffee shop? a) Yes b) No 13. Do you order food along with the coffee? a) Yes b) No 14. Do you prefer large, national/international chain coffee shops or small, privately owned coffee shops? a) National/international Chain b) Non chain, privately owned 15. Which coffee shop chain is your favorite? a) Barista b) Café coffee day d) Costa coffee e) Mocha c) Star bucks 16. Which coffee shop chain you visited last? a) Barista b) Café coffee day d) Costa coffee e) Mocha c) Star bucks 17. Listed below are a set of attributes (reasons) many people use when selecting a coffee bar to visit. Please RANK each attribute from 1 to 7, with 1 being the most important attribute for selecting the coffee bar and 7 being the least important attribute. Attributes Promotional offers Speed of Service Quality of coffee Variety of menu items Friendly employees Ambience of the store Price of the items Rank
  49. 49. 49 18. Please rate the coffee bar that you visited last on the following attributes (1- highly dissatisfied to 5-highly satisfied) Attributes Ratings Promotional offers 1 2 3 4 5 Speed of Service 1 2 3 4 5 Quality of coffee 1 2 3 4 5 Variety of menu items 1 2 3 4 5 Friendly employees 1 2 3 4 5 Ambience of the store 1 2 3 4 5 Price of the items 1 2 3 4 5 19. Does change in your income/pocket money influences the frequency of visits to coffee shops? a) Yes b) No 20. Listed below are a set of additional benefits you are expecting from a coffee bar. Please rank from 1 to 7, with 1 being the most important attribute and 7 being the least important attribute. Benefits Wi-Fi accessibility Newspapers / Magazines Music A theme based coffee shop (like photograph house, disco, music, retro, etc…) Merchandise for sale Entertainment Loyalty cards/ Discount Coupons 21. What type(s) of entertainment would you enjoy most? a) Live Bands b) Public forum. (To express ideas about politics, religion, etc.) c) Independent Movies d) Bowling e) Gaming f) Arcade games g) Internet h) Just relaxing with friends i) Hookah j) Art. (Painting, drawing, etc.) Rank
  50. 50. 50 22. Rate your overall service quality satisfaction level of the coffee bar that you visited last on a Scale of 1 to 5, with 1 being highly dissatisfied and 5 being highly satisfied. 1 2 3 4 5 Demographic Details 23. Gender a) Male b) Female 24. Age? a) 17-21 c) 27-32 b) 21-27 d) 33 and above 25. Annual household income? a) Under 3 lakhs c) 5 lakhs - 10 lakhs b) 3 lakhs- 5 lakhs d) 10 lakhs and more 26. Education? a) High school c) Post-graduation b) Graduation d) Higher studies 27. Occupation? a) Student c) Business b) Service d) Professional Thank You!!!

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