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Faculty of Business & Management
Jan / 2013
BBPJ4103
MATRICULATION NO : 001-79037145607
IDENTITY CARD NO. : 790327145607
TELEPHONE NO. : 014-9020843
E-MAIL : safuanmohd@hotmail.com
LEARNING CENTRE : Bangi
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CONTENTS
TOPIC PAGE
CONTENTS 1
ACKNOWLEDGEMENT 3
CHAPTER 1: INTRODUCTION 4
1.0 Overview
Background of the research
1.2 Research questions 7
1.2.1 Research objective
i.Branding
ii.Positioning
iii.Storytelling
iv.Design
v.Price
vi.Customer relationship
vii.Product
viii.Price
ix.Promotion
x.Place
1.2.2 Hypothesis for each objective
1.2.3The aim in research objective 11
1.2.4 The problem statement 12
1.2.5What are the main factors for consumer to choose their coffee brand? 13
1.2.6Does the economy background of the consumer play a role in the coffee brand purchasing? 14
1.2.7The contributions of coffee research to the literature, industry, and also for the policy makers 18
1.3 Justification for research 19
1.4 Thesis outline
1.5 Summary 23
CHAPTER 2: LITERATURE REVIEW 24
2.1 Background of the study
2.2 Coffee and Malaysian 25
2.3 Malaysian coffee culture 26
2.4 Summary 28
CHAPTER 3: METHODOLOGY 29
3.1 Introduction
3.2 Population and Sample
3.3 Development of Survey Questions
3.4 Survey
3.5 Interview
3.6 Methodology
3.7 Scope
3.8 Data Collection
3.9 Summary 34
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CHAPTER 4: Data Analysis 35
4.0 Overview
4.0.1 Coffee drinker by group age analysis 36
4.0.2 Coffee drinker based by occupation 37
4.0.3 Coffee drinker based by student status and profession related data 38
4.0.4 Knowledge about coffee brand analysis 39
4.0.5 Analysis based on income 41
4.0.6 Analysis on human behavior 42
4.0.7 Data collection in coffee shop turnover 44
4.0.8 Data collection in human acceptance through coffee 45
4.0.9 Analysis that impact Malaysian in coffee branding 46
4.1.0 Analysis either coffee culture is a popular lifestyle or current trends this days 48
4.1.1 Analysis of coffee culture in business scope 49
4.1.2 Data analysis to coffee culture economic changes 50
4.1.3 Analysis of human behavior in branded and non branded coffee shop 51
4.1.4 Analysis of coffee culture effecting Malaysia 52
4.1.5 Analysis factors contributing to Malaysian in coffee drinking trends 53
4.2 Summary 54
CHAPTER 5: Conclusion and Future Research 55
5.0 Overview
5.1 Discussion
5.2 Limitations of research
5.2.1 Limitations of theory
5.2.2 Limitations of methodology
5.3 Future research 56
4.BIBLIOGRAPHY 60
5. APPENDIX 62
5.1 QUESTIONNAIRES 65
5.2 GANTT CHART FOR THESIS OUTLINE 66
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ACKNOWLEDGEMENTS
First and foremost I would like to thank everyone who helped me in a way throughout
this thesis process. Thank you to my supervisor Mr. Muhammad Afdzhan, who enthusiasm,
guidance and constant support kept me, going through this entire thesis process.
I also would like to thank my family members for support and understanding throughout
the course completion of this dissertation. Their endless support had been invaluable and was the
force that pushed me to go on. Not forgetting also my colleagues and fellow course mate who
had provided assistance and support encouragement throughout the completion of the
dissertation and also to my very most close friend from Multimedia University that help me to
achieve my project completion that is Mr. Simon AngKok Yew.
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CHAPTER 1
INTRODUCTION
1.0 Overview
In the attempt to preserve and safeguard the unique of coffee drinking culture in
Malaysia, the heritage and history of coffee drinking includes in the living expressions culture
and traditions of coffee history that countless communities in Malaysia, groups in every part of
the countries have received the coffee journey from Malaya turns independent to Malaysia a
combination of local coffee drinking to international coffee plays an important roles of the
changes. The passing and intangible coffee drinking culture provides communities, groups and
individuals through the changes occurred, in order to understand and accept coffee as an
experience and learn much more better historically of coffee and the changes that impacting
Malaysian behavior.
In this chapter the researcher will discuss in background of the research, research
questions to measure among the coffee drinker at a selected area. Research objective that
targeting the changes of behavior in branding, positioning, storytelling, design of the coffee shop
and café’s, pricing, customer relationship, products offered and promotion. The hypothesis and
aim in research objective, including the justification for research and thesis outline.
In this chapter also researcher indicated 3 main questions that playan important role of
coffee behavior towards Malaysia. That is:
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1. What are the main factors for consumer to choose their coffee brand?
2. Does the economy background of the consumer play a role in the coffee brand
purchasing?
3. The contributions of coffee research to the literature, industry, and also for the policy
makers.
1.1 Background of the Research
This research is to study on the consumer behavior impact particularly of coffee brand in
the Klang Valley of Malaysia. There is a need to study this research because as one of the nation
that consume most of the coffee in the world, it is crucial to know and understand what makes
the consumer choose their favorite coffee before they purchase them. I am using a quantitative
approach using SPSS system an analytic data systemwhich data will be collected from a
consumer in various coffee shops, according to, (Siti, 2010). Malaysian coffee culture is different
from the European aswhich Malaysian are more exposed to tea as main beverage rather than
coffee, thanksto the British colonization bringing their social culture into the colonial country.
In additions of the above statement coffee producers in poor countries are often small-
scale producers and in times of financial difficulty, possibilities to relocate to other business
might be limited. If fair trade or small coffee farmer represent only a small share of market, it is
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unlikely that it affects the prices for other producers in the way described above. Therefore, it
might well be better pay minimum price over market price so that poor producer and workers can
cover their costs even though economic theory might suggest otherwise, (Gustaff. D, 2011).
Coffee has become a social drink in the Malaysian culture or in the local Malay word that
called as “Lepak” which means to spend the free time hanging around with friends or working
colleague. Malaysians enjoycoffee or tea when visiting relatives or neighbors when the owner of
the house willserve coffee or tea to the guest as appreciation of their visiting to the owner's
house.This tradition still continues until now, especially in village areas, (Siti, 2010). At the
same time, it is merely important that what makes the consumer choose for a particular brand of
their cup of coffee before they purchase and enjoy theirs cup of coffee in a local kopitiam or
maybe a western setting coffee shop.
There is a reason why specialty coffee much more successful rather than local coffee as
specialty coffee is so unique in featuring different concept as well as their coffee product and
experience, for example Starbuck penetrates the Malaysia market and it still dominates by
independent coffee shops and small chains. In most food and beverage industry there are several
large corporations that compete to market share, but there is no case in specialty coffee trader.
Before international coffee, the majority of coffee drinker drank store pre ground coffee.
However Starbucks or the international coffee brands taught Malaysian what the good cup of
coffee was and there definitely were good small coffee shops with loyal patrons but it was until it
local Malaysian learns the terms of “cappuccino” and “latte” in their everyday vocabulary,
(Natalie.A, 2009).
The migration on coffee tree led to the spread of plantations and in the 1860’s coffee
exchanges were set up. Coffee consumption developed and was invariably popular. However, in
some countries it seemed more than drink –how it was drunk and by whom- was a continuous
appeal and mystique,(L. Geel, 2003).
The coffee drinking behavior can be well explained in relation to image congruity that
customer will show demand to attempt the images of customer and the image of a given store,
(Singry&Samli, 1985). Self-congruity is defined as comparison between customer own image
and product image, whereas functional congruity is a discrepancy between customer perception
toward product attributes and their evaluations, (Singry, Grewal&Mangleburg, 2000). As for
these customer the brands coffee shop show perceived as a place to socialize with friends and
experience a usual atmosphere that brand coffee shops create for customer. Thus the research
effort to investigate and finding about the impact of customer image is important to understand
coffee drinker’s attitude toward brand coffee shops and their purchase behavior, (J. Kang 2011).
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Consumer is individual and a consumer society as a whole, are a key components in
global commodity chain. In this context of behavior changes much responsibility is placed upon
consumer, whether they knew it or not. In Contradictions of Consumption, Tim Edwards
discusses the concepts of consumption and the practices of consumers that make up their daily
lives. In distinguishing between a “consumer culture” and a “consumer society”, Edward
describes “consumer practices as matters of style, taste and identity,” as pertaining to consumer
cultures, whereas “the more political, historical or economic underpinning of consumer
practices” would be characteristic of a society, (Edwards, 2000).
1.2 Research Questions
These are the main questions that would make the study essential;
1.2.1 Research objective.
1.2.2 The aim in research objective.
1.2.3 The problem statement.
1.2.4 What are the main factors for the consumer to choose the coffee brand?
1.2.5 Does the economy background of the consumer play a role in the coffee brand purchasing?
1.2.6 The contributions of coffee research to the literature, industry, and also for the policy
makers.
1.2.1 Research objective.
The research objective is to study a coffee behavior and acceptance in Malaysia
market. It all started that coffee drinking culture started in suburb area like village and
rural area as common practice in Malay culture and expand toward the years. This phase
occurred slowly towards development and acceptance of community in coffee drinking.
Coffee culture rapidly growth toward modernization, not forgetting also influenced from
western that entered Malaysia market, these local culture totally experienced a growth in
branding and culture toward development in economy and also social change of society.
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The consumer behavior consisting of several factors that that effect it growth and
acceptance of society toward coffee drinking. The factors that contributing towards these
phenomenon is branding, design, storytelling, price and customer relationship,
(Healey,2008), not forgetting the marketing mix concept of 4 P’s that is people,
promotion, product and also price, (Neil Borden and simplified E. Jerome).
i.Branding
The idea of branding is a trademark of the company that poses a culture that impacting
the community to contribute in the said company product branding and can be well
diversified in various ways. In Malaysia brands play an important role to compete among
competitors as it encouraged the loyal customer to invest in their product offering, hence
it will contribute in the brand repo and maximize the sales opportunity to generate good
profit income. A brand is a closely connected with the business and the approach behind
product and services, (David, 2005). Others well said that to build up a brand, a few
components in the branding scenario are crucial in order to understand and create an
environment that can be embraced easily by the audience, (Healey 2008).
ii.Positioning
There is also suggested that product positioning concept meaning that it define in mind
and of a customer what a brand stand for and how it compares with competing brand, (Al
Ries and Jack Trout, 1980).
iii.Storytelling
A great brand would offer a story that we all would like to hear, offerings a tangible and
reassure that we do play an important role, and becoming a part of their great story.
iv.Design
Design is referring to all aspect of how product is produce, every single aspect from
visual to surface, label and name. Which it is discuss between 2 persons. Rebranding has
always misunderstood, end up they only meant by redesign, (Healey, 2008), whereby
(David, 2005) mentions that it was a transformation to an identity representing to an
audience that something has changed.
v.Price
In Malaysia price between coffee companies totally variance from each other, this can be
differentiate towards branding of the coffee company. Such as kopitiam much cheaper
and affordable for all range of community, whereby for premium coffee drinker they
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more suitable to select brands like Starbuck or Coffee Bean and tealeaf, (Bagozzi,
Richard P, 1998).
vi.Customer relationship
The meaning of customer relationship is consumer expectation and self-satisfaction
towards the service of the said brands, feel acceptance, ambiance, and services and
moreover they felt a legendry service that brought to the consumer, as (Healey 2008),
customer relationship administration represent sometimes idealistic efforts of companies
to make each of us feel special.
The 4 P’s of marketing mix that related to coffee behavior in Malaysia, as
mention by (Kotler, P & Armstrong, G., 2005), the essential in principles of marketing
mix indicated four factors contributing that are as below principles:
vii.Product
The concept of product valuating of intangible and tangible services towards the
consumer, intangible services such an unseen services that attracting the consumer to
purchase and becoming a regular customer in certain coffee brands. For example
Starbuck staffs more friendly and this make the customer felt warm and welcome, while
for regular kopitiam shop the service more or less simple and most of the kopitiam shop
hired a foreigner which they unaware and not familiar with Malaysian culture, hence their
ignorance is amusing to Malaysian which the hiring companies more or less must educate
them, so that they will be able to understand and familiar with Malaysia local culture.
In terms of tangible service is their product offering to the customer. At Starbuck and
Coffee Bean they have variety of food and beverage for customer to select. A wide range
of product offering will increase their product opportunity. In addition these two giants
company also boost their marketing product through festive season in Malaysia; a
different product will be executed following to the festive season, for example, Hari
Raya, Christmas, Deepavali, Malaysia National day or Chinese New Year.
viii.Price
Price is very important in coffee company as it determine the company survival through
sales and profit income. Towards consumer view and perception an affordable price to
have a cup of decent coffee will be at our regular coffee shop or kopitiam. While for
other consumer that prefer premium coffee and brand coffee they will select high end
coffee company like Starbuck, San Francisco Coffee or Coffee Bean.
ix.Promotion
It is very important for coffee company to branding their products. In Malaysia coffee
branding had pass through the stage of familiarity of awareness, that all Malaysian had
accepted coffee drinking as a trend and follow to their culture. Hence in order to promote
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the coffee brand the coffee companies execute their promotion through advertisement,
event and coffee sampling. For example every year they will be a huge event for barista
to show their talent and compete between countries and the recent competition took place
at Solaris Mount Kiara.
x.Place
A distribution place for coffee company to sell their product and in Malaysia we can even
find coffee everywhere, from rural area, village to the busiest city. Kopitiam and café
were expending and growing like mushrooms hence the coffee awareness toward
Malaysia also increasing rapidly. More buyers and coffee lover can access coffee product
wherever they go through Malaysia.
1.2.2 Hypothesis for each objective.
• There will be a clearer differentiation between behavior changes in coffee
consumption through local coffee company and international coffee company.
• The attribution of coffee in Malaysia through the changes that impact Malaysian
behavior and acceptance.
• Post purchase behavior of consumer through coffee branding in Malaysia.
• Value of coffee that impacting Malaysia economic changes.
• Brands acceptance of coffee in Malaysia.
1.2.3 The aim in research objective.
The main of this research is to study the consumer behavior particularly of coffee
brands in Klang Valley of Malaysia, this study will focus on consumer behavior through
coffee branding, culture, geographical and economic situations that impacting towards
consumer in Malaysia.
The main objectives are:
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a) To find, observe and simplifies the studies of human behavior toward coffee
acceptance and branding awareness in Klang Valley of Malaysia. As by far coffee
culture in Malaysia had been introduced significantly that impacting the economy,
technology, political view and this issues must be study and record for further
justifications.
b) To study the consumer view towards coffee branding and tasting through local coffee
and premium coffee, the ambiance, locations and also social life style in Malaysia.
1.2.4 The problem statement.
In order to look into the problem statement most Malaysian aware of the existence
of coffee drinking as part of their cultural, however through times and technology the
concept of coffee drinking change hence the social and behavior or consumer toward
coffee changes.
The roots cause that effect these behavior relates back to our past history as
Malaysian coffee culture started back as early as the 1890’s century, (Siti, 2010). The
culture in Malay history is coffee drinking will be serve during special ceremony or
occasion like wedding, visitation or circumcise ceremony, however after British colonial
coffee drinking had been accepted as part of the social culture, as mention by (Ritzer, G,
1987), that social change can be defined as variation over time in the relation among
individuals, groups, organizations, cultures and societies.
Throughout the year coffee places has change their features and take place
rapidly. Usually coffee only can be found at kopitiam, mamak, or Malays stall, however
now coffee can be found everywhere and as year passes coffee drinking concept also
changes, from high end premium coffee shop to normal local coffee shop.
This culture of coffee consumption had changes because it was not very much
popular and only burst to consumer awareness only when Coffee Bean and Starbuck
entered Malaysia market late 1998, (Siti, 2010). The high end premium coffee brand had
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changes Malaysian behavior in such ways of branding even though the price is much
more expensive other than local coffee shop. This brings me to study the behavior of
Malaysian people the only prioritize brand, social culture and people acceptance without
considering the value of coffee, quality, quantity and price.
It is very important for me to study the consumer behavior in Malaysia towards
coffee behavior because it a study that impacting gender, demographic, cultural,
geographical, social culture to identify the changes and reason for such behavior.
1.2.5 What are the main factors for consumer to choose their coffee brand?
The main factors for consumer to choose their coffee brands is because of the
main criteria that fulfilling consumer wants and demands that is more to branding and the
4 P’s marketing mix concepts. Malaysian had been exposed to normal coffee drinking
behavior however we never exposed to coffee fusion or enhanced coffee products. Since
International giant coffee company penetrates Malaysia market, it had been a trend and
changes occurred slowly that bring a result of social cultural changes in Malaysia.
This is based on the statement from Datuk Ibrahim Mohammad, Deputy Secretary
General of Agriculture and Agro-based Industry Ministry, the production of local coffee
is lower than the demand of the local consumers and yet the imports of the international
coffee is increasing during these years, (ASEAN AFFAIRS, 2008), and in another
statement based on (Miller, 2009 report, Howard Schultz), the Starbuck Coffee CEO said
that his company is going on for a reformation as well as its products lines by promoting
their new product which is instant coffee, plus he also ensures that their new change
would persuade more of the citizens to enjoy their instant coffee at home. However, this
kind of convenience is not really a major factor in influencing the consumers in
preferring the coffee brand that they are going to purchase. The reasons is the instant
coffee has been applied by many of the coffee manufacturers and retailers, this no longer
a competitive advantage for the coffee brands.
The subject matters that relates to both statement shows that Malaysian had
accepted coffee as their trends and social culture. Before the uprising of the new trends
instant coffee can be purchased and drink at home but the social factor influences
Malaysian to enjoy their coffee outdoor example like Starbuck, Coffee Bean or San
Francisco Coffee.
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It a study to differentiate coffee brands towards Malaysian community, as there is
lots of coffee outlets in the market nowadays. As from my observation, middle income
earner will prefer to enjoy their coffee at the high end premium coffee brand such as
Starbuck or Coffee Bean but yet due to the brands Malaysian comfortably able to afford
such a products even though it is much more expensive from local kopitiam or
mamakstall. These factors more or less to personal self-demand and want, to follow the
trends and to catch up the phase through social cultural changes, in order to be accepted
in the community and to manage their expectation towards personal self-esteem.
1.2.6 Does the economy background of the consumer play a role in the coffee brand
purchasing?
The contributors during British colonial had exposed coffee industry in Malaya,
however due to the acceptance in export not demanding in the arena of coffee, it had been
grew only for local plantation. Local coffee grew and caters locally throughout Malaya
however it had reached certain acceptance of local community to accept coffee
tremendously. It had been a new beginning when international coffee brands penetrate
Malaysia market like Coffee Bean and Starbuck, (Siti, 2010).
Through rebranding and promotions coffee stall and kopitiam changes to suite
consumer need and satisfaction, for example Kluang Station and Old Town White
Coffee. The local coffee shop had to rebrand in order to compete with their new
competitors. They built new café for better ambiance that to suite their customer
expectation, (Technology College Sarawak, 2011).
These changes had contributed in a larger scale of import, export, manpower and
changes in culture. The demand and supply increasing towards new socio economic,
competitors look into more microscopic view to market their product to increase sales
and profit opportunity, (Mowen, J. C. & Minor, M., 1997).
In other sales prospect through article Euromonitor.comcoffee sales had expected
to grow as it constant value terms over the forecast period. This is because a rapid growth
of coffee company in Malaysia robust vigorously within the Malaysia Market which
factoring and encouraging sales of coffee both on trade and off trade channels. In
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additions also , the new rising company will increasing in income and consumer
sophistication over the forecast periods is likely in result of premium coffee acceptance in
Malaysia which will boost the value of growth and coffee sales.
This is also along with coffee trading in Malaysia that coffee retailers or coffee
shop owner had exposed to fair trade coffee scheme, example like Starbuck Coffee
Company. Starbuck began fair-trade coffee in 2000, they had empower small scale coffee
farmer that organized in democratically to invest in and develop the coffee business
industry to compete in the global market place, hence it impacting Malaysia that Starbuck
had successfully market their product in Malaysia market rapidly and shown proof that
140 outlets and increasing throughout the years bring up coffee economy in Malaysia,
(Starbuck.com.my).
1.2.7 The contributions of coffee research to the literature, industry, and also for the
policy makers.
To the literature-coffee study had bring a several impact in coffee industry and to
Malaysia culture which it had bring a new outcome of behavior through coffee and
human behavior study. It must be documented for further analysis.
This is because coffee had been inherited in Malaysia before independence and it
had been a culture for quite some times. Through years and evolution it had change
coffee perception and it is impacting people behavior. The reason is might be coming
from coffee rebranding, people satisfaction and social culture changes in Malaysia.
As well said by (Siti, 2010), the development of local coffee culture started from
coffee harvesting and incoming of immigrant in British colonial around 1800 thus the
demand and want of coffee had been develop like mushroom especially local kopitiam,
mamak and malay stalls. Most of all the major development occurred when Malaysia
economic boomed around 80s where the social changes through the rising year. This is
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also due to the influence of international coffee branding that invested in Malaysia such
as Coffee Bean and Starbuck Coffee.
Through the study I can differentiate human behavior toward the social changes,
emotion and also their feedback in choosing coffee as part of the social contributions.
These inflecting behavior changes are a behavior change of ongoing psychology,
economics, and consume behavior towards the items that they selected. It building on
previous work of commitment, self-signaling and the principal consistency of behavior
study, in the changes of human behavior through the years in theoretical and practical
implications approach in motivating the desired behavior discussed, (Journal of consumer
research, 2013), whereby towards my study the changes of behavior in coffee
consumption at Malaysia.
These might be the reason because of Malaysian always follow the coffee brands
rather than accepting the coffee drinking concept, in order to be accepted in a community
Malaysian have to follow the trends. The imitation of others through coffee branding
impacting Malaysia culture in coffee drinking concept, this is because when international
coffee investor invest in Malaysia market and the awareness tremendously change
Malaysia behavior for not accepting the local coffee culture however following by others.
The contributions of coffee research through Malaysia industry had bring
Malaysia economic in a good state in the era of 90s as international coffee shop booming
like mushroom. The good investment in coffee and acceptance of Malaysian opens an
economy range through coffee plantation, tourism industry and also through food and
service industry.
From my finding it can be appraise from the article of, (CIA World Factbook,
2011), indicated that the current Prime Minister, Mohamed Najib bin Abdul Razak, is
shifting focus to domestic demand in order to reduce reliance on exports. However,
exports are main driver of the Malaysian economy and will continue to hold a prominent
role.
The others finding that can conclude the coffee research through Malaysia
industry is the economic changes and life style of Malaysia as derived from (Malaysian
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Food, 2011) that, the others strong players in foodservice are the mamak and kopitiam
stalls. Also referred to as “hawker stalls” or street food vendor, they are common sight
throughout Southeast Asia. These are open-air quick service restaurants where one can
enjoy traditional fares. It is a very popular option as it provides consumer with local
meals in a quick and affordable setting. Typically these stalls are open 7 days a week,
from early morning to late night; some even operate 24 hours a day.
In addition that through the fast phased environment most Malaysian will
contribute through fast moving food and beverage, this had been said in (Euromonitor,
2010), that when it comes to ready meals, the window for growth may be small as
foodservice outlets such as mamak stalls or kopitiams already provide quick alternative to
home cooked meals. With increasing international influence that is referring to other
international giant coffee chain like Starbuck Coffee Company and Coffee Bean,
Malaysian consumers seeking a similar lifestyle may look to more Western or health
oriented options in the ready meals sector of food and beverage consumptions.
The Contributions of coffee research through policy maker is they well able to
identify the trends that rapidly change in coffee acceptance consecutively in socio-
economic, industry related and also the lifestyle concept of Malaysian that bring up to the
behavior changes toward Malaysian and coffees.
In lifestyle concept it contrast through the policy maker that rise of private label
such as Starbuck Coffee Company and Coffee Bean, this is because the brand is
correlated with increased standard of living for the generations, the demand rose
throughout the years and it will continue to grow as the majority of the populations.
Stores that typically served expatriates are now finding the young professional Malaysia
as among of their customers, as policy maker search to acquire premium and imported
goods. A part of this demand is the desire to define their lives through their purchasing
choices, (Euromonitor, 2011).
In other words the policy maker fined a justification through “HALAL” signage
like Starbuck Coffee Company in Malaysia that is consumable for Muslim’s. These can
be defined as “PRIVATE LABEL”this for the policy maker had helped them to respond
quickly in latest trends and can be accepted in Malaysia culture. By creating their own
private labels, the coffee retailers able to control their brands image as well.
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The contribution for the policy maker in industry is they able to control their
product in a structured and planed manner which they able to produce their product
following to the industry needs.
For example Starbuck is contributing a fair trade activity by purchase coffee bean
from small retailer all around the worlds to help the small farmer and factoring their
products to the consumer. While others like San Francisco Coffee they are contributing a
profitable shareholder scheme to their employee for each product that they sales.
Through these research studies policy maker will be able to understand Malaysian
behavior through coffee acceptance. Socio-economic contribution to the policy maker is
to study the culture that impacting Malaysia within the years and implement new ideas to
increase up the coffee industries. From the changes in upcoming local and international
coffee brand they can maximize and utilize the coffee brands in a larger scale to cater
Malaysian culture that id in the era of globalization and changes.
1.3 Justification for the Research
This research is conducted to know about the consumer behavior and economy
background before they purchase for a coffee. Different coffee brands will have a different type
of demands in our local coffee lover’s and this research is to understand the main factor of the
research question.Different coffee brands, different types of demand to understand the main
factors that the distinctive value that affecting behavior in Malaysia is pricing, brand, place,
promotion, authenticity value, staff experience and customer experience.
Pricing factor plays an important role for the behavior changes of coffee intake at
Malaysia. The pricing methods will attract customer to purchase their product. All of the coffee
brands in Malaysia have their own pricing range. International coffee brand like Starbuck,
Coffee Bean and San Francisco have their own range of pricing and more into premium coffee
based, whereby for local coffee shop like Old Town White Coffee, Kluang Station and local
kopitiam have lesser pricing. Due to that all of the coffee brands compete among each other to
sell their product to increase sales productivity. It is very much contributing to the change of the
community behavior towards coffee intake in Malaysia.
The reason for the behavior changes due to economic situations and also acceptance of
Malaysian towards coffee intake. Premium coffee lover will go to international coffee brand
while others will go to local coffee shop for better quality and also quantity. Price is defined as
the amount of money charged for a product or services. It is extremely important for marketers to
18
remember the that individuals in a market are highly receptive not only to the price of an item,
but also the value offered by the products, (Goggle 4 p’s Marketing Min Price – Castelar article).
In Malaysia brands effecting the changes of Malaysian behavior by the awareness of
coffee evolutions. Supporting with local and international coffee Malaysian brought coffee
intake to the next level. Local market will go through rebranding while international market will
more exposing their brand to the community, as one definition for a brand has been offered in the
Journal of Marketing Management by Professor Peter Doyle of Warwick: “A name, symbol,
design, or some combinations which identifies the product of a particular organizations as having
a substantial, differentiated advantage”, (O’Malley, 1991). Since international coffee penetrates
Malaysia market like Starbuck and Coffee Bean their brand had been exposed and accepted as
premium coffee brand that changes the culture and socio-economic. Malaysian accepted these
brand as premium coffee brand following to the trends and in the mean while local coffee treated
as local coffee intake in Malaysia that tag along to Malaysia culture and event.
Production or product is rightly treated as the heart of marketing mix Customer purchase
a product due to the attributes, features and also the benefit. The selling of product motivates the
consumer to buy their product. It is also due to the package of the product offered to the
consumer. This suggested that various decisions regarding the product to be marketed need to be
taken to justify the product offered. This resulted the product offered to be market will be a
quality product. In addition it will be utility oriented, attractive, convenient, property design and
branded. Even attractive packaging decision still needs advertisement and promotional incurred,
(Kalyan City Blogspot.com).
In marketing mix, place also plays the role of consumer behavior on coffee intake in
Malaysia, in terms of culture and social factor. This is based on Malaysian acceptance while
enjoying their coffee consumption. Previously coffee been consumed in the event of ceremony or
visiting etiquette however due to the new changes coffee drinking evolve to be much more
exposed and more sophisticated. The factor contributing for behavior changes is because of the
ambiance more relaxing and coffee drinker may enjoy their coffee comfortable. This is refers to
providing the distributions place which convenient for consumer to access. The is various ways
of strategies such as intensive distribution, selective distribution and franchising are used by the
marketer to complement the other aspect of marketing mix, (marketing mix- Wikipedia, the free
encyclopedia).
Promotions act a marketing tool to increase the brands awareness. In order to expose their
coffee brands each coffee competitor comes out with different promotional scheme or
advertisement. Through brands awareness and coffee experience the tendency of culture change
19
Malaysian consumer behavior in coffee consumption. For example Starbuck and Coffee Bean
introduce a new card loyalty scheme for their loyal customer and local coffee shop like
KluangStation and Old Town White Coffee promotes their brands through advertisement in
newspaper, public transportation or advertisement in television.
The meaning of promotions is it acts as a business communications tools to communicate
with consumers. It will provide information that will assist them in making decision to purchase
a product or service. The procedure, pace and creativity play an important parts in promotional
concept. It will increase awareness and enhance consumer mind set. The supply and demand
will increase. The cost associated with promotion or advertising goods are spread over a larger
output. Though increased promotional activity it a sign of respond from the consumer to have a
competition activity among marketers, in this manner is the coffee brand competitors. It will
gauge the marketer to create and implement better improve product to the market that bring up
succession of message and can be extremely cost-effective, (Businesscasestudies.com).
Each coffee company in Malaysia has their own products range. The authenticity of the
products only can be finding in the particular brands. Like Starbuck famous with their hot drinks,
coffee bean with their tea leaf and blended drink, while local coffee company famous with
kopitiam style of products. The products offer changes Malaysian behavior of tasting and
spending, in other words following to the brands and budget on hand.
A coffee brands usually provides as identifier for each of their food and beverages menu
ranges, because of the huge amount similar products in the coffee company, there is a special
kind of defining menus with options that representing the characteristic of each coffees. In
addition a specific coffee menu of the products will attract consumer to buy and consume.
A product line is a group of products that are closely related, either because they function
in a similar manner, are sold to the same customer groups, are marketed through the same types
of outlets or falls within given price range, (Kotler. P, Gary. A, 1989).
The staff experience and customer experience that changes Malaysia behavior through
acceptance of coffee is because of several factor contributing to Malaysian society. Malaysian
full of culture and more polite community, hence the ways of coffee company express their
welcome to the customer more polite and friendly that bring legendary service to the customer to
remember. For example Starbuck and Coffee Bean have their own ways of greeting their
20
customer in a friendlier ways. The local coffee companies bring their customer back in time
through ambiance and atmosphere of the coffee outlets, as well said in NBC news from
(www.nbcnews.com/starbucks brand articles).
“Starbuck is unique is it is able to tailor customer experience and products to a
customer’s exact in,” said Jeff Grossman, vice president of product management for ClickFox,
another market researcher that gave Starbuck a top rating.”Despite its huge spread it has
delivered a personalized experience across many locations.
1.4 Thesis Outline
In chapter 1, the researcher will study about the main issues for the research, research
questions, problem statements and the techniques of the methodology will be discussed as well
as the scope of people who will be in the part of the methodology as to collect the data.
In chapter 2, more detailed background information of the research will be included. The
understanding of the study itself will be full review in this chapter. As for chapter 3, it will be the
type of research method used in this research in this case is interview and also online surveys.
For data collection survey I created a Gantt chart for better perspective and more accurate
in projecting the survey completion. Please find the attached Gantt in appendix.
1.5 Summary
From the explanations above related to my research title consumer behavior impact
particularly of coffee brand in theKlang Valley of Malaysiait is discussed from the beginning
history of coffee culture until the current situation that impacting towards Malaysian. From early
beginning of British occupation until current international coffee brands penetrate Malaysia
market. The changes of early coffee consumption until the current existing trends that effecting
Malaysian coffee culture.
These are well said that due to several factors causing the cultural changes to trends.
From my finding I can summarize that the main factor relates to the changes is more to
marketing factors that is correlated to each other’s. For starts is due to economic and time
factors. Malaysia is allowing and encouraging investment from international coffee company,
because of that local coffee company have to compete with their competitor to increase sales
opportunity and in order to increase sales opportunity another concepts of marketing coming in.
21
For example each of the competitor will expanding and evaluating their café’s through
the 4 P’s concept of price, people, promotion and place. In addition they had implanted
Malaysian with strong and robust coffee experience, from café’s environment until product
varieties. As for my research the correlated changes had tremendously change Malaysian
behavior toward coffee perception and consumption.
The behavior changes was not rapidly effect Malaysian as it slowly capture the Malaysia
market towards coffee. This is because Malaysia not like others oversea countries that accepting
coffee as their staple beverage. The changes impacting Malaysian when 1 international coffee
brand thoroughly successfully market their products, that is Starbuck Coffee Company own by
Dato’ Vincent Tan owner of Berjaya Group Companies. The art of drinking coffee had change as
well as Malaysia coffee culture.
The starting point had gauges Malaysian to appreciate coffee more fluently based on
experience, product and acceptance of coffee changes. The behavior towards Malaysian of coffee
becoming a trends and followers to other, from this it is indicated that Malaysian nowadays will
have the opportunity to select their coffee shop as they like, from international to local café’s.
However yet they still tend to follow the strongest coffee brand to show appreciation and to
adapt into the community acceptance through coffee consumption. In other words Malaysian is
followers and would like to follow the current trends and not to left behind. Last but not least
showing that my research had successfully records and identify the behavior of Malaysian
through coffee culture, from culture turn to trend and moving forward it will be accepted through
as a whole and becoming parts of the Malaysian community habit of coffee drinking as part of
Malaysian coffee culture through occurrence and observation.
CHAPTER 2
LITERATURE REVIEW
1.0 Overview
This chapter reviews the important literature about the history and development of coffee
culture in Malaysia, it also review the history and changes of coffee consumption that impacting
consumer behavior thorough coffee drinking experience.
This chapter divided into 4 major parts. The first part introduces and presents the history
of coffee history and culture in Malaysia. The second part discusses the coffee and Malaysian
22
that showing coffee changes in timely manners and how it transforms art of coffee drinking. The
third parts indicated the Malaysian coffee culture in present and upcoming future, discussing
about the changes of consumer behavior through coffee consumption. Finally a summary is
provided at the end of this chapter.
2.1 Background of the Coffee
Since coffee become beverage it had been travelled between country and cross the world.
Within the European acting colonizers, coffee plants have been spread all over America, Africa
and Asia during the 19th
century since the expansion of their power to these countries have found
cheap labor was available and ready to exploit. The colonial powers do realized the importance
and the high commercial potential of coffee and they funded large scale development of
plantations all over the continents. As well as the Dutch brought coffee plants to Ceylon in 1699,
while the English cultivated coffee in India at 1840. That is the earliest data that a coffee
plantation in Malaysia ever recorded and was stated by (Ralph Neeraj, 1981).
In Malaysia Coffee Plantation was the main plantation before Rubber Plantation took
place. This is because Malaysia soil is suitable for low quality coffee bean that can be imported
and due to the non-profitable returnable income the colonial powers decided to invest more to
crops rubber rather than coffee, reason being due to the development of the automobile industry
as cited by (Siti, 2010).
The judgmental decision of the British about coffee market is so strong and they believe
that coffee potentiality in Malaysia had opened large numbers of estates and plantation held in
Sungai Ujong, Perak and Selangor before they shifted to Kuala Lumpur and Klang in early
1890s, (Siti, 2010). (Lai, 2010), also point out that Hainanese skills food and beverage industry is
the best since they learn from experience of working in European household and opens
kopitiams, bakery and coffee processing. Due to the massive illegal migrant from China and
india at late 18s they had built a business of food and beverage in Malaya as quoted by
(ThamSeongChee, 1977).
After Malaysia independence in 1957, throughout the 80s and 90s, kopitiam and local
food stalls have expanded. The western café had entered Malaysia food and beverage started
with Coffee Bean in 1996 and followed by Starbuck Coffee Company in the year of 1998. Even
though the western café entered in local market, out kopitam started to booming late as cited
from (Wilson and Khor, 2008).
2.2 Coffee and Malaysian
23
Coffee in Malaysia started in the years of British colonizes which they harvested coffee
as one of the main business attraction before rubber plantation came to the picture. Hence coffee
in Malaysia had been more expanding within years. Reason being Malaya before Independence
Day only drank tea not coffee. Local coffee shops in Malaysia only started early around 1900’s
century and has been the local conversation or meeting place to expand new ideas and share
thoughts according to (Siti, 2010).
In Malaysia coffee had been branding rapidly branding as it had been recorded the
strongest value sales within hot drinks in Malaysia over the review period. As through
verification by the trade sources, coffee had extended its segmentation to not only adults, but
also the age of teenagers to adult. With coffee being establish in the everyday diet of most
Malaysia consumers, new products coupled with the convenience of instant coffee contributed to
the growth of the coffee sales is 2011(Reportlinker.com, 2013).
This is also said that social change can be change due to individual preferences, the
change of sources, due to these elements contribute in social changes in Malaysia and these
changes will either bring positive or negative impact among individual (Ritzer, G, 197). For
example Malaysia coffee had been accepting by Malaysia due to brand and fulfill of demands of
consumers. Through the changes of culture an ideology of drinking coffee in Malaysia had been
accepted as a trend and lifestyles.
Lifestyle is another terms of a social life change or circle or changes in era of
modernization that has been introduced by Max Weber through his idealistic perspective. As
written by (Vago, S., 2004).
24
2.3 Malaysian Coffee Culture
Malaysia coffee culture more diversified because coffee bean and tea leaf only exposed
to Malaysia with a branding status like Starbuck, Coffee bean, San Francisco Coffee, Austin
Chase Coffee, Dome and Gloria Jean Coffee. With all this branding it had exposed Malaysia
culture not just about drinking coffee but to appreciate it and more knowledgeable about coffee
history. We all aware the coffee branding in Malaysia had been widely market had been accepted
by Malaysia due to culture, environment, brands and also the changes of mind set among
Malaysia about coffee acceptance, (Siti, 2010).
Theoretically generally belief that coffee drinking behavior in Malaysia due to consumer
preferences and taste by Malaysia cultural background to be ahead and recognize by the
community and this is cited by (Schutte and Ciarlente, 1998).
In Malaysia coffee drinking had took place in different era which traditionally coffee
drinking in Malaya only for men at normal coffee shop or only during visiting or any special
ceremony or special occasion. Serving coffee or tea during that era act as token of appreciation
for the visitor that come to their house, although it is a very old tradition it is still remain and act
as one of the culture that continues until now especially in village areas cited by (Siti, 2010).
The factor affecting consumer behavior in Malaysia more to age, occupation, economic
circumstances and lifestyle as cited by (Principles of Marketing system, 2012). This also
occurred due the 4 P’s concepts which are product, place, price and promotion as cited by (Siti,
2012).
Other than the 4 P’s concept, branding also very importance in order to expose the coffee
drinking culture to individual, hence to ensure branding strategy for the coffee organization to
succeed a strong and well-built supportive branding must be conveyed to promote their products.
25
It is also considering the 4 P’s and the brand mark carries the organization to succeed (Healey,
2008).This is because as for management paradigm the marketing mix has dominated the human
behavior since 1940s and (McCarthy, 1964), further deployed this idea and refined the principle
to what is generally known as the 4 P’s. However due to the economic changes throughout the
years a scope with whole new concept and elements emerged from a new whole factor to the
human behavior, especially in 1980s onwards, numbers of researcher propose new marketing
mix, (Judd, 1987) proposed a fifth P that is people. (Boorns and Bitner, 1980) add 3 P that is to
participate, physical evidence and process, to the original 4 P’s to apply the marketing mix
concept. (Kotler, 1986), adds political power and public opinion formations to the Ps concept.
(Baumgartner, 1991), suggest the concept of 15 P’s. (MaGrath, 1986), suggests the addition in 3
P’s that is personnel, physical facilities and process management. (Vignalis and Davis, 1994),
suggest the addition of service to the marketing mix. (Goldsmith, 1999), suggested there would
be 8 P’s that is product, place, price, promotion, participants, physical evidence, process and
personalization.
2.4 Summary
From all of the above explanation and references it shows that coffee effecting Malaysia
through social change in local coffee scene. It is within the grasp of coffee market that
booming in Asia. Hence local kopitiam, café and coffee shops have applying and re-branding
their outlets to suite Malaysia taste through time and concept.
Referring to the statement above it had impacting coffee competitors in Malaysia,
whereby all local kopitiam will rebranding and restricting their coffee brand, ingredients or
menu to compete with others giants coffee brands like Starbuck and Coffee bean, which for
the giant company they will do the changes in demand of quality service and quantity of
product offering to customer to feel brand in a high end lifestyle and branding lifestyle. Not
forgetting the local social changes, Malaysia coffee culture had brought to another steps or
drinking and enjoying coffee.
As stated by (Alvaraz and Gilsdorf, 2007), Starbuck has proven the valued of creating
outstanding customer experiences, even across such as large retail network. It has managed
to tie together all the necessary brand elements. Starbuck sells tangible product and has found
a way to create an engaging environment that encourage customer to linger and conduct
multiple transactions.
26
CHAPTER 3
METHODOLOGY
2.0 Overview
27
A quantitative approach is been used by the researcher in order to pull out and gather
data. The survey had been carry out in an allocated and designated place that took place in the
heart of Cyberjaya, Selangor which the area full of coffee shop and café’s.
3.1Introduction
A mixed method would be used by the researcher for this research purpose. In
highlighting the main issue of what affects the consumer’s behaviors to purchase a respective
coffee brand, while the other is to understand whether economy background affect their choices
of choosing the respective coffee brand through quantitative approach as;
“A quantitative approach is one in which the investigator primarily uses the post positivist claims
for developing knowledge (i.e., cause and affect thinking, reduction to specific variables and
hypotheses and questions, use measurement and observation, and the test of theories), employs
strategies of inquiry such as experiments and surveys, and collect data on predetermined
instruments that yield statistical data” as well said by (Creswell, 2003).
As proposed by methodology the research will begin with collecting information from data,
documentation, article, internet source, and journal or research paper by previous researcher.
This is also through survey and findings. As the survey will be printed and hand out to the target
consumer in Cyberjaya at various coffee outlets, like Starbuck and Old Town White Coffee.
The methodology would be based on research questions as guidelines are as below drafted
data:
1. What were the populations that contribute behavior changes in coffee consumption?
2. What are my sample sizes that contribute to the behavior changes in coffee consumption?
3. How long is the data collection procedure?
4. How long is the data collection period?
5. How does a coffee can brand can affect consumer behavior?
6. What is the main factors that contribute to the changes of behavior through coffee?
7. Does the marketing mix affect and contribute the changes of choosing coffee brand in Malaysia.
8. How does the brand affecting local culture, socially and economic in Malaysia?
3.2 Population and Sample
The interview and also surveys will be targeted to a numbers of customers of Starbucks
and OldTownWhiteCoffee in Cyberjaya. The sample of people who will be targeted for the study
28
consists of young adults to working adults aged of 18 to 50 plus years old. Both female and male
from different ethnicity and races will qualify for this survey. As for the in depth interview, the
researcher will focus on a purposive sampling of 5 persons from both coffee shops to participate
in this research.
3.3 Development of Survey Questions
In order to complete the survey and collect the date that are needed for this research,
developing the questions is very important to get the information needed to support this research.
The question was developed based on the factors that the consumer will purchase their coffee of
their respective brand.
The final questions and surveys will include demographics and psychographics questions.
Demographics will enable the researcher to collect the data about the age, gender, race,
education level, the occupation and also the income level while psychographics will enable the
researcher to collect the information about the factors that affect the purchasing.
3.4 Survey
Survey is a very easy and effective method where the researcher can access to the sample
easily because it is easier to ask the participant to fill up the survey questions at the coffee shop.
The set of 10 survey questions will understand their basic needs and also behaviors before
purchasing their coffees. Survey act as a popular quantitative methods in research and as a
researcher, the most specific and accurate data are needed to get a valid result that can be used in
research. The opinion can be shared by (Uma Sekaran, 2003), saying that;
“Survey is useful and powerful in finding answers to research questions through data collection
and subsequent analyses, but they can do more harm than good if the population is not correctly
targeted.”
3.5 Interview
29
Interview will be another way that the researcher will conduct to gather the information
and data needed for this research purpose. The researcher will get customers from the Starbucks
and OldTownWhiteCofee to participate and conduct an interview with them. Questions
regarding the factors and economy background will be questions. Questions such as “What
makes you to be loyal to this coffee brand for this period of time?” and also more question
regarding to the economy background will be asked to them face to face by the researcher. The
researcher will have at least 20 questions to ask from each participant to make sure that the data
to be collected will be even.
As the researcher feels that it is more accurate and important if the researcher can use the
empathetic listening method and also interview the customers face to face so that the researcher
can have a better understanding.
3.6 Methodology
A mixed method will be used for this research. A set of questions in 10 will be distributed
among the coffee shops at Cyberjaya. This survey will be answered by 20 consumers throughout
the local coffee shops as well as the modern ones. As for the qualitative method , the researcher
will choose the coffee consumer that have at least 2 years of loyalty of purchasing the particular
coffee brand for an in depth interview. A set of 10 questions will be asked to them to understand
their behaviors of purchasing a particular coffee brand for a period of time. This interview will
require an empathetic listening method and as well as purposive sampling by the researcher.
3.7 Scope
The surveys will be distributed throughout the coffee shop such as OldtownWhiteCoffee
and Starbucks in Cyberjaya. This is to compare their loyalty of the customers towards their
repetitive brand. The target age for the people who will be participating in the survey will be
from 18 to 50 plus years old and above. As for the in depth interview, 5 customers from both
Starbucks and OldTownWhiteCoffee will be taken as the study for this research. They will be a
loyal customer of the respective brand for at least 2 years.
30
3.8 Data Collection
1. Following to the data there are four age groups, which are 15 to 20 years old, 21 to 29 years old,
30 to 39 years old, 40 to 50 years old and above. From my finding most age group that 15 to 20
years old that earn below RM1500 to RM2500, 30 to 39 years old earn about RM2500 to
RM3500, meanwhile age 30 to 39 years old about RM3500 and above. From this I can
summarize that individual with high range of salary contribute more to spending their money in
coffee consumption.
2. The knowledge of local coffee brand analysis shown that higher institutions recognize the local
coffee brand in term of local coffee shop and international coffee shop. Meanwhile secondary
and non-professional go to normal coffee shop like mamak stall and kopitiam. Most coffee brand
mentions is Starbuck Coffee Company and Coffee Bean.
3. The brands of coffee inputted that from the research and finding it is proven that most Malaysian
nowadays prefer to enjoy international coffee product rather than local productions. Reason
being they felt pride and secured in such ways when using the international product. The
contributions of it due to taste, hygiene, quality and quantity of the product.
4. The brands equality that impacting social behavior shown that Malaysian prefer to spend their
times at branded international coffee shop for studying or business purpose, meanwhile local
coffee shop more into dine in and leisure, in other words spending their time with families,
working colleague and friends due to price much more cheaper and affordable to spend.
5. From my finding the research show that coffee branding impacted human behavior in larger
scale in Malaysia, this is because of the necessity to meet people want and demand thru the era
or modernization. It meets the needs through people perception, self-satisfaction and human
behavior to follow.
6. Results show that coffee culture is importance in Malaysia, before international coffee brands
penetrate Malaysia market. It had affected tremendously in lifestyle and follow to current trends
these days. This is because local coffee shop more to simplicity not like international coffee shop
that focus on ambiance and selling more higher scale coffee bean and products of coffee trading
example like Starbuck Coffee Company.
7. For economic change that impacting Malaysia market the research show that 40%, demographic
30%, geographical 25% and political issues 25%. This I can summarize that economic represent
a huge changes in human behavior through coffee branding.
31
8. Through the research that Malaysian most likely to spend their time at branded international
coffee shop rather than local coffee shop due to the factors indicated, that price 10%, product
7%, promotion 10%, meanwhile people and ambiance result showed equality of 15%. This show
Malaysian concentrated more towards people service for legendary services and ambiance in that
particular coffee shop.
9. From the research it is clearly show that coffee branding impacting Malaysian socially and
follow to the trends. This is because Malaysian would like to tag along with others countries by
following coffee drinking trends; hence it is impacting Malaysian culture and socially changes
the perception of coffee drinking. Since international coffee brands like Coffee Bean and
Starbuck Coffee Company penetrates Malaysia market, the trends of coffee drinking changes,
new coffee company mushrooming everywhere in Malaysia. Local coffee shop rebranding and
changes their café interior to attract the customer and also to compete with their competitor.
3.9 Summary
From the above finding for the research methodology I am using quantitative approach.
That mainly targeted the issue of what affects the consumer’s behaviors to purchase a respective
coffee brand.
Furthermore I am using an empathetic listening method and real time interview with
participant to collecting the data as well as a mixed method will be used.I had converted the
information to a chart to specifically identify the factors of behavior that effect Malaysian
through coffee consumption.
In addition the research showing that Malaysia had accepted coffee in a very long time
however due to changes and trends it had change the culture and impacting to the behavior in all
factors in Malaysia. This is also based on coffee products offering, human turn coffee to
addiction and following to the trends is the main factor for the changes in Malaysia.
32
CHAPTER 4
DATA ANALYSIS
4.0 Overview
The data analysis collected as below indicated the researcher had gathered information’s
to support the finding of researcher topic. The collections of data had been tabulated and
simplified into chart for further explanation. From the data analysis I had distributed 10 copies of
questionnaires for my research and each of the questions will be distributed to the coffee shop
tenant in Cyberjaya, that I had selected Starbuck Coffee Company, OldTownWhiteCoffee,
mamak and local kopitiam shops around the vicinity. The data analysis I am using for my
research is SPSS system, it a statistical analysis for market researcher which collected data will
be documented, files and recorded for further analysis. For my survey I had distributed 20
questionnaires to the participant and out of 20 participants only 3 participant reluctant to
participate.
4.0.1Coffee drinker by group age analysis
The data showed average income for the sample size accordingly to age. There are four
preferred age targeted in my analysis that is 15 to 20 years old, 21 to 29 years old, 30 to 39 years
old, 40 to 50 years old and above. From the data indicated that most coffee drinker are aged 21 to
29 years old, which for age 40 to 50 years old not a coffee drinker.
The data collection gathered I found that most of adult consume coffee as their normal
regular routine and this accordance will follow up to their habits as a coffee drinker. This habit
might cause from several factors like social gathering, friends, working conditions and drinking
preferences. It is also indicated that during the age of 40 to 50 years above none coffee drinker is
found. This might be the reason of coffee is not good for old peoples as it contains caffeine that
is hazardous to ageing body.
From the data collection also I found that coffee also had been consume by teenagers
however the amount not as high as adult. There are a lot of factors that causing teenagers to
consume coffee, as likely because of parenthood drinking habit, to reduce stress during exam or
might be natural preference habits towards coffee drinking.
From the previous research result comparing from (Siti,2010), indicated that most of the
correspondents that visit kopitiams, coffee shops and western café is income secured and are
group in the middle class society, by looking at the average of monthly income they earn.
33
Figure 1.0: A chart showing coffee drinker by age analysis
The data collection analysis by far had answered my questions in coffee consumption due
to age and factor impacting it. From the finding it clearly showed teenagers and adult the highest
contribution of coffee drinking phenomena. These trends will be spread out by adults and
teenagers as this group age more fluent about their surround environment and what is happening
around time.
4.0.2 Coffee drinker based by occupation
Through occupation analysis indicated that most of the student consume more coffee
rather than working people. From the data below indicated that not working and retiree having
the lowest data collection. This result proven and relates to coffee consumption toward age
analysis as above explanation.The result indicated as same internal or external factor that offered
student or working peoples to consume coffee. Meanwhile for retiree and not working might be
due to health and monetary issues.
Figure 2.0: Coffee drinker chart based by occupation analysis
The comparison that indicated from the previous researcher as below that coffee only be
consume during occasion or special ceremony. It is totally different now because coffee had been
consumed due to habit and trends. As cited by (Siti, 2010) below:
34
0 1 2 3 4 5 6 7 8
15 to 20
21 to 29
30 to 39
40 to 50 and above
CORRESPONDANCE RESPOND
AGE
NUMBER OF PARTICIPANTS
In Malaysia coffee drinking had took place in different era which traditionally coffee
drinking in Malaya only for men at normal coffee shop or only during visiting or any special
ceremony or special occasion. Serving coffee or tea during that era act as token of appreciation
for the visitor that come to their house, although it is a very old tradition it is still remain and act
as one of the culture that continues until now especially in village areas.
The data collection generally had answered my analysis because it showing a very strong
culture impact socially between now, past and present years. The changes that occurred is the
past mostly only adult accept coffee to be consume during special ceremony or offering and
present day indicated that coffee had been consume by younger generations in any occasions and
also act as trends based on the coffee brands or products.
4.0.3 Coffee drinker based by student status and profession related data
Referring to the table indicated that higher institutions based by profession consume more
coffee rather than non-professional came from secondary schools. It is showing a tremendous
scale of coffee consumption towards working peoples rather that none professional. From the
data collection I can summarize that it is due to monetary, peer and working colleague influence,
which it is affected mostly among professionals rather than the non-professionals working
groups.
INDICATIONS HIGHER INSTITUTIONS SECONDARY
SCHOOLS
NON
PROFESSIONALS
0 0
PROFESSIONALS 17 0
Table 1.0: Data collected to differentiate between nonprofessional, professional with
secondary school and higher institutions
Figure 3.0: Coffee drinker chart based by student status and profession related data
As for work scope data collection the difference between previous research and my data
indicated in several factors and the factor effecting coffee consumption in my data analysis is
towards work scope and education whereby from other research indicated as below:
35
The factor affecting consumer behavior in Malaysia more to age, occupation, economic
circumstances and lifestyle as cited by (Principles of Marketing system, 2012).
The analysis above answered my research by showing a statistic of work scope and
education level through coffee consumption. The data showing the most professional from
higher education have awareness of coffee consumption in fact they might accept coffee as their
staple beverage during the days. There might be a valid reason why only professionals consume
coffee heavily and it might be due to several factor, example like lifestyle, working environment
and during exemption weeks.
4.0.4 Knowledge about coffee brand analysis
Figure 4.0: Coffee brands knowledge chart and acceptance level
Researcher summarize that most of the correspondent aware of the coffee brand and data
collection indicated that most correspondence like to enjoy their coffee at local malay, mamak
and kopitiam which indicated 80%. Remaining 65% correspondences have selected Starbuck as
their second selection of coffee shop, Coffee Bean 25% from the selective, Old Town White
Coffee 20% and San Francisco Coffee 10%.
The reasoning in addition of the data collected showed that most Malaysian prefer local
coffee shop rather than imported coffee products. These I can conclude that Malaysian still
following to the traditions and slowly adapting to the changes of time in coffee consumptions.
From my questionnaires the participants had given their opinion, pertaining to the choices
of coffee shop to select with, most of the correspondence that answer no commented as below:
36
1. The new imported coffee shop product much more sweater than others shop, this
might be most of the imported coffee shop premix their coffee with sugar in a
vacuum pack before serving to customer, meanwhile local coffee shop mix the
beverage upon request.
2. Some of the correspondence indicated that the new concept of coffee shop providing
free internet connection to their customer, however nowadays internet connection
very much easier to get connected, as by far it is one of the strategies to attract
customer to dine in.
From the above explanation to be compare with the other researcher like for example as
below:
Malaysia coffee culture more diversified because coffee bean and tea leaf only exposed to
Malaysia with a branding status like Starbuck, Coffee bean, San Francisco Coffee, Austin Chase
Coffee, Dome and Gloria Jean Coffee. With all this branding it had exposed Malaysia culture not
just about drinking coffee but to appreciate it and more knowledgeable about coffee history. We
all aware the coffee branding in Malaysia had been widely market had been accepted by
Malaysia due to culture, environment, brands and also the changes of mind set among Malaysia
about coffee acceptance, (Siti, 2010).
In other words coffee knowledge branding had successfully branded in Malaysia,
internationally and locally. Yet Malaysian still prefer local coffee rather than international
coffee, and this is due to the authenticity taste neither of coffee nor like international coffee that
had been flavored during coffee roasting or processing.
The data collection analysis answers my research question and it showing the acceptance
level of customer from the café’s I conducted the interview. The behavior of coffee acceptance
level to Malaysian still remain the same which Malaysian still prefer local malay, mamak and
kopitiam rather than international coffee company, however the most preferable coffee company
following to chart indicated as Starbuck Coffee Company and it showed that there is a trends
behavior, Malaysian follow towards branding not because of the coffee experience or
appreciation of coffee consumption.
From here I can summarize that Malaysian is towards branding behavior, yet still remain
accepting local coffee. Malaysian knowledge of local coffee culture had been educated since
young while international coffee knowledge only when the individual exposed to the markets.
4.0.5 Analysis based on income
37
Figure 5.0: Chart showing a range of income that contribute to coffee consumption
From the analysis based on income indicated that the selective range of income data from
RM1500 to RM2500 and RM2500 and RM3500 showed that they have equal data collection in
30%, meanwhile RM1500 below and RM3500 and above have equal data of 10%. This showed
that income range plays an important role in coffee productions and acceptance. Based on
stipulated data indicated that the ratio of coffee contribution is equal among each other’s which
belief on economic turnaround.
The analysis based on income showed that the salary range of MYR1500 to MYR3500
will contribute more to coffee consumption. As said from other researcher it is due to human
need and demands that co-existing with human nature as said from below:
(Goldsmith, 1999), suggested there would be 8 P’s that is product, place, price, promotion,
participants, physical evidence, process and personalization.
The above explanation indicated overall that the factors will contribute to human
spending behavior indirectly purchase of tangible or intangible products and for my research
through coffee consumptions. As it is relates to my research analysis that due to economic
changes through time, money spending and human requirements also changes, due to that for
coffee historical value in Malaysia it is not a culture anymore in fact it had been accepted as
habit and trends, because Malaysian nowadays with regards of any salary range will be able to
enjoy coffee products either local or international premium coffee.
4.0.6 Analysis on human behavior
38
Figure 6.0: Chart showing consumer acceptance level between local or branded coffee
shop and pride using the imported coffee products
Data gathered indicated that most of the correspondence preferable to enjoy imported
coffee brand product rather than local coffee product. The above data indicated 90% out of 10%
correspondence select higher premium or imported product rather than local.
These preferences had been selected by Malaysian to support local products much more
rather that imported products. As from my finding I found that some correspondence had
commented as below.
1. They preferable Malaysian coffee product like Nescafe, even they should know that
Nescafe is not local product however Malaysian had consume Nescafe since British
Colonization bring it to Malaysia.
2. It is not about the reputation but the taste of local coffee made by local Malaysian.
3. It is depending on quality and affordance.
4. Some even comment as proud of Malaysian products.
Hence data showing that in human behavior Malaysian still have the level of acceptance
through local coffee even though there is new imported coffee introduce to Malaysian and the
choice of preferences are by Malaysian to select the best cup of coffee.
From the data analysis I found that Malaysian tend to trust the local because it had been
known locally and to accept the new products it is depend on the individual preferences. As from
the others researcher also indicated as in their research as below:
This is also said that social change can be change due to individual preferences, the change of
sources, due to these elements contribute in social changes in Malaysia and these changes will
either bring positive or negative impact among individual (Ritzer, G, 197).
39
The data analysis answers my research by differentiating the consumer acceptance level
between local or branded coffee shop and pride using the imported coffee products. The
consumer acceptance in Malaysia not really change their behavior because more or less they still
accept and proud of Malaysian products meanwhile for international coffee is being accept as an
average consumption.
4.0.7 Data collection in coffee shop turnover
Figure 7.0: Chart showing consumer trends in coffee consumptions turnover
From that data showing that most 90% of the correspondence preferable to enjoy their
coffee during leisure, 70% would like to go to coffeeshop to study, 40% having business meeting
at coffee shop and only 10% go to coffee shop to dine in.
The data collection gathered indicated that most of Malaysian enjoys their coffee during
leisure hour and it might be because of time and the level of acceptance and taste much more
cosseting. This is because coffee has a factor of soothing sensation after being drink, hence it is
likely drink to reduce stress at work or studies for student, most Malaysian consumes their
favorite coffee during leisure time to relax, being pampered and felt comfortable of coffee aroma
tantalizing aftermath taste.
Now a days in Malaysia the trends of business meeting not held in business premises
however most of the client prefer outside the office building, which bring them to coffee shop
like Starbuck or Coffee Bean. Meanwhile several consumers will dine in at coffee shop showing
that their respond might be during breakfast or lunch hour, in terms of quick and fast foods to be
served.
The data analysis collected from other researcher indicated as below:
40
Lifestyle is another terms of a social life change or circle or changes in era of modernization that
has been introduced by Max Weber through his idealistic perspective. As written by (Vago, S.,
2004).
How the data analysis answers my research through Malaysian behavior in coffee
consumption is the trend that occurred in Malaysia currently changed significantly. This is
because previously the culture of coffee drinking only in ceremony or special occasion, year past
coffee had been drinks in any occasions. The changes of human behavior accepting coffee with
regards of habit and product offered. People tend to follow trends and be more flexible.
4.0.8 Data collection in human acceptance through coffee
Figure 8.0: Chart showing consumer acceptance through coffee consumption
From the data collection coffee branding indicated that it is a necessity to satisfy
customer meets and demands as data showing 90% showing positive respond other than 20%
showing negative respond.
It is well explained that human acceptance through coffee will change people behavior.
This is because coffee in Malaysia had been introduced before British occupation hence it is a
norms to Malaysia. However the changes of coffee drinking are from environment, economic,
culture and trends.
From the data collected it shown that Malaysia still acceptance coffee as one of the staple
drinks only it had been changes in terms of art of drinking, the way it had been prepared and
different of premium and local coffee.
The Malaysian acceptance through coffee as other researcher comment as indicated due
to the changes and factors incurred as well as surrounding as below researcher explain that;
41
This is because as for management paradigm the marketing mix has dominated the human
behavior since 1940s and McCarthy, 1964, further deployed this idea and refined the principle to
what is generally known as the 4 P’s. However due to the economic changes throughout the
years a scope with whole new concept and elements emerged from a new whole factor to the
human behavior, especially in 1980s onwards, numbers of researcher propose new marketing
mix, Judd, 1987 proposed a fifth P that is people.
The analysis answered my research by changes of Malaysian behavior is because they
had accepted coffee as culture yet they adapt with the changes and act following to the trends.
The changes had educate Malaysia in several ways to accept coffee, like still yet following to
special occasion or ceremony, business meeting, during leisure and also partly accepted as their
habits. Malaysian also had fancy coffee in many ways through economic, sales opportunity in
fact the products it selves.
4.0.9 Analysis that impact Malaysian in coffee branding
Figure 9.0: Chart showing consumer acceptance through coffee branding
Data collection indicated that 80% correspondence agree that coffee branding will affect
Malaysia social culture behavior and 20% showing that it will not affect Malaysia with a reason
of as stipulated by correspondence.
It clearly had shown that coffee branding give impact to Malaysia through changes of
time. The imported coffee bean and oversea coffee shop introduced to Malaysia market. From
these changes Malaysian economic tremendously change and the acceptance of imported coffee
had been accepted by Malaysian. By far data also indicated that through branding, coffee
drinking had been introduced and accepted by all ages of consumer in Malaysia not like before
only consume by adult. In other words coffee drinking in Malaysia had been accepted and it is
now act as a trends.
This is also specifying in other researcher comment that coffee branding is impacting
human social and culture. They also explain that branding plays an important role in coffee
acceptance, for example is from below researcher,
42
In Malaysia coffee had been branding rapidly branding as it had been recorded the strongest
value sales within hot drinks in Malaysia over the review period. As through verification by the
trade sources, coffee had extended its segmentation to not only adults, but also the age of
teenagers to adult. With coffee being establish in the everyday diet of most Malaysia consumers,
new products coupled with the convenience of instant coffee contributed to the growth of the
coffee sales is 2011 (Reportlinker.com, 2013).
The data collection answer my research that brand plays a significant roles to
successfully penetrate Malaysia market. How well Malaysian had accepted coffee and change
their drinking habits. How well the company brands their product and how it impacting
Malaysian? This is a question that relates back to Malaysian changes of behavior in coffee
consumption. The most successful coffee brands will renowned bringing their reputable
companies throughout Malaysia, for example Coffee Bean or Starbuck Coffee Company, these
giant companies had shown their success financially in Malaysia market however Malaysian yet
still not forgetting other local coffee brands as it is much more affordable and tastier.
4.1.0 Analysis either coffee culture is a popular lifestyle or current trends this days
Figure 10.0: Chart showing either coffee culture is a popular lifestyle or current trends
these days
90% of the correspondence agree that coffee culture is a popular lifestyle and had been
followed as trends. 20% correspondence indicated is it not a life style. Thus it showed that
Malaysian behavior changes due to coffee consumption in an acceptable level. Typically
Malaysian agreed that it is depend on the individual behavior that create the changes, in both
coffee cultures is a popular lifestyle and also a current trend of this days, which it is strongly
answered and coexisting with my research studies.
My research relates to the other researcher as they had indicated as per their below
comment as below:
43
Theoretically generally belief that coffee drinking behavior in Malaysia due to consumer
preferences and taste by Malaysia cultural background to be ahead and recognize by the
community and this is cited by (Schutte and Ciarlente, 1998).
4.1.1 Analysis of coffee culture in business scope
Figure 11.0: Chart showing an analysis of coffee culture in business scope
70% of the correspondence indicated that coffee business is selling space and
environment meanwhile 40% of the correspondence not agree that coffee shop now days selling
space and environment as from their opinion.From the data collection above it answered my
research as the changes of Malaysian behavior due to coffee consumption also based on several
factor impacted, which is product, place, people and promotions in other words the 4 P’s
marketing mix concept.
For an example we take premium international coffee company like Starbuck and Coffee
Bean they had situated in Malaysia quite a long time yet how the survived due to the said factors.
Most of them located in strategic areas, nice and cozy ambiance, good imported coffee product
and a line of marketing promotion in their company. Malaysian had accepted the international
coffee company and this had strengthened their base in Malaysia. As well as local coffee
company also had tried to compete with their competitors by rebranding their product to accept
the changes of trends in Malaysia and increase their sales opportunity.
Other researcher quoted as below which I can differentiate for what had been discussed;
Other than the 4 P’s concept, branding also very importance in order to expose the coffee
drinking culture to individual, hence to ensure branding strategy for the coffee organization to
succeed a strong and well-built supportive branding must be conveyed to promote their products.
It is also considering the 4 P’s and the brand mark carries the organization to succeed, (Healey,
2008).
4.1.2 Data analysis to coffee culture economic changes
44
Figure 12.0: Chart showing an analysis to coffee culture due to economic changes turnover
Most of the correspondence agree that coffee culture in Malaysia changes due to
economic changes and attached the data analysis to support the correspondents respond in my
questionnaires and how the data collected answered my research is that economic act as impact
of culture.
It had been differ from British occupation that coffee had been traded yet not successful
in Malaya and only accept for side business, yet due to time changes coffee had plays an
important roles in Malaysia, large coffee company invested in Malaysia and bring profitable
income to the country, due to that the culture from international coffee company had impacted
Malaysia coffee culture.
As from the other research comment also it is a change of time as indicated below:
Coffee in Malaysia started in the years of British colonizes which they harvested coffee as one of
the main business attraction before rubber plantation came to the picture. Hence coffee in
Malaysia had been more expanding within years. Reason being Malaya before Independence
Day only drank tea not coffee. Local coffee shops in Malaysia only started early around 1900’s
century and has been the local conversation or meeting place to expand new ideas and share
thoughts according to (Siti, 2010).
4.1.3 Analysis of human behavior in branded and non-branded coffee shop
45
Figure 13.0: Chart showing an analysis of human behavior in 4 P’s concept
From the data analysis I found that most of the respond indicated that product plays a
major role of coffee perception among Malaysian. Meanwhile people indicated in 30%, price
indicated as 20% and promotions indicated as 10% among all’s.
The data collected had answered my analysis through a concept of marketing mix that is
explained on the chart. It had shown that Malaysian will accept product more than others factor.
A highly indicator of product showed that a Malaysian behavior through coffee consumption is
the taste and coffee experience. For example local coffee company products had same line of
coffee menu which is formerly know by Malaysian, however when the international coffee
company had penetrates the Malaysia market a series of coffee products had been introduce with
a different methods and ways or so called art of coffee making. Thus due to the changes
Malaysian had choices to select either local or international coffee companies.
With regards to other researcher analysis to be differentiated with my research, some of it
had elaborated as below comment;
After Malaysia independence in 1957, throughout the 80s and 90s, kopitiam and local food stalls
have expanded. The western café had entered Malaysia food and beverage started with Coffee
Bean in 1996 and followed by Starbuck Coffee Company in the year of 1998. Even though the
western café entered in local market, out kopitam started to boom late as cited from (Wilson and
Khor, 2008).
4.1.4 Analysis in coffee culture effecting Malaysia
46
Figure 14.0: Chart showing an analysis of coffee culture based on factors incurred
Data collection indicated that economic play an important role in changing coffee culture
to Malaysian, meanwhile geographical factor indicated 40% impacting, 30% demographic and
political view only impacting in the scale of 10%.
From the data collected it showed that my research through coffee changes of Malaysian
behavior impacted due to the said reason. It is strongly tabulated that economic plays an
important roles of the total behavior changes in coffee consumption throughout the years. Other
factors also link to each other thus the concept of coffee acceptance and culture changes.
Economic increases due to investment of others international companies in Malaysia,
geographically look at the acceptance of coffee in several area follow to the marketing mix the 4
P’s, demographic based on location and political view of bringing local or international company
to market coffee as a whole. My explanation for my research differentiating from others
researcher also had commented as below;
Since coffee become beverage it had been travelled between country and cross the world. Within
the European acting colonizers, coffee plants have been spread all over America, Africa and Asia
during the 19th
century since the expansion of their power to these countries have found cheap
labour was available and ready to exploit. The colonial powers do realized the importance and
the high commercial potential of coffee and they funded large scale development of plantations
all over the continents. As well as the Dutch brought coffee plants to Ceylon in 1699, while the
English cultivated coffee in India at 1840. That is the earliest data that a coffee plantation in
Malaysia ever recorded and was stated by (Ralph Neeraj, 1981).
4.1.5 Analysis factors contributing to Malaysian in coffee drinking trends
47
Figure 15.0: Chart showing an analysis factors contributing to Malaysia drinking trends
From the data collection indicates that product changes the coffee trends in 60% ratio,
ambiance in 30%, and price in 20% and people in 10%. Most of the correspondent indicated that
coffee branding affected them socially and Malaysian most of us follow to the trends.
The tabulated data indicated that coffee able to change Malaysian behavior, the chart
showed that trends impacted coffee branding socially. This is also followed other factors such as
price a cup of coffee, people that works in the coffee shop, product offered and also environment
and ambiance of the coffee shop. Time had changed the culture of coffee consumption whereby
before coffee had been commercialized Malaysian only consumes coffee in normal coffee shop,
mamak or kopitiam. However since international coffee company brands their products in
Malaysia, the trends to enjoy it had different in several ways. Thus the concept, culture and
coffee experience in Malaysia had changes Malaysian behavior.
From my research and others researcher they also indicated as below to be studied and
understand the concept of the changes such as;
As stated by (Alvaraz and Gilsdorf, 2007), Starbuck has proven the valued of creating
outstanding customer experiences, even across such as large retail network. It has managed to tie
together all the necessary brand elements. Starbuck sells tangible product and has found a way to
create an engaging environment that encourage customer to linger and conduct multiple
transactions.
4.1 Summary
48
From the collected data it represents a collective discussion of coffee consumptions effect
human behavior in Malaysia. It had shown from the early beginning of coffee culture until
present time. It is considering the culture added value in Malaysia from British occupation until
present economic market. Throughout the years, coffees had been expanding and change the
normal internal market to grow and it was an evolution from cultural biases.
Early beginning of coffee acceptance can be summarizing from subject age matters, their
profession. A habit of coffee drinking existed during early aged, in family, education and
working background. The acceptance will enhance coffee drinker to change their preferences.
Local or international coffee market had slowly increasing their numbers in Malaysia. Thus
coffee lovers in Malaysia will be able to select their desired coffee, as many as their liking.
Each individual in Malaysia have their own buying power to spend their money either to
local coffee company or international coffee company. The concept of value of money had added
value among Malaysian. They best coffee company will very much accepted and well regain
their brand faster than other. This is because towards my research I found that Malaysian was
keen to brands. The most favorite brands will be easily accepted and followed by others and
finally accepted as trends.
The trends also had change Malaysian coffee culture from traditional concept of drinking
coffee and also coming from the international coffee market influence. It impacting Malaysian
behavior slowly and it is based on several attributing factor that win the coffee consumptions
awareness.
Factors that attributing to changes of Malaysian behavior toward coffee consumption if
based on economic, geographic, demographic and also branding, it also co-existing with the
marketing mix concept which can be known as the 4 P’s, that is product, place, price and also
promotion. The said factors act as an indicator toward Malaysian behavior in coffee
consumptions.
CHAPTER 5
49
CONCLUSION AND FUTURE RESEARCH
5.0 Overview
In chapter 5 for conclusion and future research study the data collected in each chapter
will be summarized through discussion of consumer behavior in coffee consumption. The
limitation of research the researcher might find and future research observation that can be
prolonged further.
5.1 Discussion
The data collected and analyzed from chapter 4 indicated that Malaysia behavior in
coffee consumption changes due to the economy, product, price and trends. Different coffee
brands cater and targeted for different target audience. For example, classic and traditional coffee
shop is targeted to lower income community as such students and also non-professional. While
for a high-ended coffee shop such as Coffee Bean and Starbucks are more targeted to the higher
income customers. Pricing range play an important role too that affect the consumer behavior.
From the research data and literature review, in Malaysia there is a lower priced coffee
and also premium priced coffee while the product range is merely the same but for higher price
coffee, they claimed that the coffee beans are imported and also have gone through a particular
processes. Hence, this had become a trends and it is slowly accepted by Malaysians due to the
different range of others products that is been offered. As a conclusion, Malaysian’s consumer’s
behavior on coffee consumption is motivated by various reasons that affect their choices of
getting a cup of coffee.
5.2 Limitations of Research
In my research there are 2 limitations that I am facing that are divided into 2 sections
which is the limitations of theory and limitations of methodology.
5.2.1 Limitations of theory
The limitations of theory indicated into 2 platforms which is subjective norms and behavioral
intention. Theoretically I have to allocate information’s that relates to my research and to show
evidence as a proof of the subject matter and also look up for human behavior in coffee
consumptions to justifies and strengthen my research topic. The justification as below to be
explained in further details:
• Subjective norms: looks at the influence of people in one's social environment on his
behavioral intentions; the beliefs of people, weighted by the importance one attributes to each of
50
their opinions, will influence one's behavioral intention for my research is to collect
information’s of coffee lover behavior toward Malaysia.
• Behavioral intention: a function of both attitudes toward a behavior and subjective norms
toward that behavior, which has been found to predict actual behavior. Towards my research is
to collect data about coffee consumption that lead to actual behavior.
In addition to my research, there are a few limitations faced by the researcher throughout
the process. One of the main limitations faced is the time constraint. The limitation of time given
to gather information and to collect the data where there are too many data’s to be collected as to
provide a more accurate answer for this research.
Besides that, it is hard to do such an open survey in the coffee shop as the management
does not provide the agreement to do so in their premise and the researcher have to collect the
data quietly. On the other hand, the scope of this research is too narrow down. Most of the
respondents for this research are mainly students while there is only a few of them are working
consumers. The researcher have to find other solutions to gather the information required and
collect the necessary data several period of time in a different days.
5.2.2 Limitations of methodology
The researcher had selected a quantitative measure in the data collection methods and the
limitations of methodology that the researcher found was the size of community that can be
found in the designated place to distribute the questionnaires or in other words a sample size of
populations. To be based on the period time given and durations of the data collections
procedure. To allocate and find selective questions that relates to the research. Upon information
collected researcher need to tabulate the finding and further explanation need to be summarized
for further understanding of the research studies.
The limitation of methodology that researcher faced is to gather the data in a constraint
time. This is because researcher needs to find a suitable place to distribute the questionnaires.
Other than that researcher also needs to observe the location when the questionnaires take place.
In terms of the surrounding so that each participant will be able to produce a good answer, a
correct and appropriate person to answered the data. The collection of questionnaires must be
suitable to the participant that participate in researcher questionnaire, in other words a coffee
lover or well mature person to understand the full questionnaires questions in order to answer it
wisely.
5.3 Future Research
51
MOHD_SAFUAN_ASMI_PROJECT1_790327145607_Coffee
MOHD_SAFUAN_ASMI_PROJECT1_790327145607_Coffee
MOHD_SAFUAN_ASMI_PROJECT1_790327145607_Coffee
MOHD_SAFUAN_ASMI_PROJECT1_790327145607_Coffee
MOHD_SAFUAN_ASMI_PROJECT1_790327145607_Coffee
MOHD_SAFUAN_ASMI_PROJECT1_790327145607_Coffee
MOHD_SAFUAN_ASMI_PROJECT1_790327145607_Coffee
MOHD_SAFUAN_ASMI_PROJECT1_790327145607_Coffee
MOHD_SAFUAN_ASMI_PROJECT1_790327145607_Coffee

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MOHD_SAFUAN_ASMI_PROJECT1_790327145607_Coffee

  • 1. Faculty of Business & Management Jan / 2013 BBPJ4103 MATRICULATION NO : 001-79037145607 IDENTITY CARD NO. : 790327145607 TELEPHONE NO. : 014-9020843 E-MAIL : safuanmohd@hotmail.com LEARNING CENTRE : Bangi 1
  • 2. CONTENTS TOPIC PAGE CONTENTS 1 ACKNOWLEDGEMENT 3 CHAPTER 1: INTRODUCTION 4 1.0 Overview Background of the research 1.2 Research questions 7 1.2.1 Research objective i.Branding ii.Positioning iii.Storytelling iv.Design v.Price vi.Customer relationship vii.Product viii.Price ix.Promotion x.Place 1.2.2 Hypothesis for each objective 1.2.3The aim in research objective 11 1.2.4 The problem statement 12 1.2.5What are the main factors for consumer to choose their coffee brand? 13 1.2.6Does the economy background of the consumer play a role in the coffee brand purchasing? 14 1.2.7The contributions of coffee research to the literature, industry, and also for the policy makers 18 1.3 Justification for research 19 1.4 Thesis outline 1.5 Summary 23 CHAPTER 2: LITERATURE REVIEW 24 2.1 Background of the study 2.2 Coffee and Malaysian 25 2.3 Malaysian coffee culture 26 2.4 Summary 28 CHAPTER 3: METHODOLOGY 29 3.1 Introduction 3.2 Population and Sample 3.3 Development of Survey Questions 3.4 Survey 3.5 Interview 3.6 Methodology 3.7 Scope 3.8 Data Collection 3.9 Summary 34 2
  • 3. CHAPTER 4: Data Analysis 35 4.0 Overview 4.0.1 Coffee drinker by group age analysis 36 4.0.2 Coffee drinker based by occupation 37 4.0.3 Coffee drinker based by student status and profession related data 38 4.0.4 Knowledge about coffee brand analysis 39 4.0.5 Analysis based on income 41 4.0.6 Analysis on human behavior 42 4.0.7 Data collection in coffee shop turnover 44 4.0.8 Data collection in human acceptance through coffee 45 4.0.9 Analysis that impact Malaysian in coffee branding 46 4.1.0 Analysis either coffee culture is a popular lifestyle or current trends this days 48 4.1.1 Analysis of coffee culture in business scope 49 4.1.2 Data analysis to coffee culture economic changes 50 4.1.3 Analysis of human behavior in branded and non branded coffee shop 51 4.1.4 Analysis of coffee culture effecting Malaysia 52 4.1.5 Analysis factors contributing to Malaysian in coffee drinking trends 53 4.2 Summary 54 CHAPTER 5: Conclusion and Future Research 55 5.0 Overview 5.1 Discussion 5.2 Limitations of research 5.2.1 Limitations of theory 5.2.2 Limitations of methodology 5.3 Future research 56 4.BIBLIOGRAPHY 60 5. APPENDIX 62 5.1 QUESTIONNAIRES 65 5.2 GANTT CHART FOR THESIS OUTLINE 66 3
  • 4. ACKNOWLEDGEMENTS First and foremost I would like to thank everyone who helped me in a way throughout this thesis process. Thank you to my supervisor Mr. Muhammad Afdzhan, who enthusiasm, guidance and constant support kept me, going through this entire thesis process. I also would like to thank my family members for support and understanding throughout the course completion of this dissertation. Their endless support had been invaluable and was the force that pushed me to go on. Not forgetting also my colleagues and fellow course mate who had provided assistance and support encouragement throughout the completion of the dissertation and also to my very most close friend from Multimedia University that help me to achieve my project completion that is Mr. Simon AngKok Yew. 4
  • 5. CHAPTER 1 INTRODUCTION 1.0 Overview In the attempt to preserve and safeguard the unique of coffee drinking culture in Malaysia, the heritage and history of coffee drinking includes in the living expressions culture and traditions of coffee history that countless communities in Malaysia, groups in every part of the countries have received the coffee journey from Malaya turns independent to Malaysia a combination of local coffee drinking to international coffee plays an important roles of the changes. The passing and intangible coffee drinking culture provides communities, groups and individuals through the changes occurred, in order to understand and accept coffee as an experience and learn much more better historically of coffee and the changes that impacting Malaysian behavior. In this chapter the researcher will discuss in background of the research, research questions to measure among the coffee drinker at a selected area. Research objective that targeting the changes of behavior in branding, positioning, storytelling, design of the coffee shop and café’s, pricing, customer relationship, products offered and promotion. The hypothesis and aim in research objective, including the justification for research and thesis outline. In this chapter also researcher indicated 3 main questions that playan important role of coffee behavior towards Malaysia. That is: 5
  • 6. 1. What are the main factors for consumer to choose their coffee brand? 2. Does the economy background of the consumer play a role in the coffee brand purchasing? 3. The contributions of coffee research to the literature, industry, and also for the policy makers. 1.1 Background of the Research This research is to study on the consumer behavior impact particularly of coffee brand in the Klang Valley of Malaysia. There is a need to study this research because as one of the nation that consume most of the coffee in the world, it is crucial to know and understand what makes the consumer choose their favorite coffee before they purchase them. I am using a quantitative approach using SPSS system an analytic data systemwhich data will be collected from a consumer in various coffee shops, according to, (Siti, 2010). Malaysian coffee culture is different from the European aswhich Malaysian are more exposed to tea as main beverage rather than coffee, thanksto the British colonization bringing their social culture into the colonial country. In additions of the above statement coffee producers in poor countries are often small- scale producers and in times of financial difficulty, possibilities to relocate to other business might be limited. If fair trade or small coffee farmer represent only a small share of market, it is 6
  • 7. unlikely that it affects the prices for other producers in the way described above. Therefore, it might well be better pay minimum price over market price so that poor producer and workers can cover their costs even though economic theory might suggest otherwise, (Gustaff. D, 2011). Coffee has become a social drink in the Malaysian culture or in the local Malay word that called as “Lepak” which means to spend the free time hanging around with friends or working colleague. Malaysians enjoycoffee or tea when visiting relatives or neighbors when the owner of the house willserve coffee or tea to the guest as appreciation of their visiting to the owner's house.This tradition still continues until now, especially in village areas, (Siti, 2010). At the same time, it is merely important that what makes the consumer choose for a particular brand of their cup of coffee before they purchase and enjoy theirs cup of coffee in a local kopitiam or maybe a western setting coffee shop. There is a reason why specialty coffee much more successful rather than local coffee as specialty coffee is so unique in featuring different concept as well as their coffee product and experience, for example Starbuck penetrates the Malaysia market and it still dominates by independent coffee shops and small chains. In most food and beverage industry there are several large corporations that compete to market share, but there is no case in specialty coffee trader. Before international coffee, the majority of coffee drinker drank store pre ground coffee. However Starbucks or the international coffee brands taught Malaysian what the good cup of coffee was and there definitely were good small coffee shops with loyal patrons but it was until it local Malaysian learns the terms of “cappuccino” and “latte” in their everyday vocabulary, (Natalie.A, 2009). The migration on coffee tree led to the spread of plantations and in the 1860’s coffee exchanges were set up. Coffee consumption developed and was invariably popular. However, in some countries it seemed more than drink –how it was drunk and by whom- was a continuous appeal and mystique,(L. Geel, 2003). The coffee drinking behavior can be well explained in relation to image congruity that customer will show demand to attempt the images of customer and the image of a given store, (Singry&Samli, 1985). Self-congruity is defined as comparison between customer own image and product image, whereas functional congruity is a discrepancy between customer perception toward product attributes and their evaluations, (Singry, Grewal&Mangleburg, 2000). As for these customer the brands coffee shop show perceived as a place to socialize with friends and experience a usual atmosphere that brand coffee shops create for customer. Thus the research effort to investigate and finding about the impact of customer image is important to understand coffee drinker’s attitude toward brand coffee shops and their purchase behavior, (J. Kang 2011). 7
  • 8. Consumer is individual and a consumer society as a whole, are a key components in global commodity chain. In this context of behavior changes much responsibility is placed upon consumer, whether they knew it or not. In Contradictions of Consumption, Tim Edwards discusses the concepts of consumption and the practices of consumers that make up their daily lives. In distinguishing between a “consumer culture” and a “consumer society”, Edward describes “consumer practices as matters of style, taste and identity,” as pertaining to consumer cultures, whereas “the more political, historical or economic underpinning of consumer practices” would be characteristic of a society, (Edwards, 2000). 1.2 Research Questions These are the main questions that would make the study essential; 1.2.1 Research objective. 1.2.2 The aim in research objective. 1.2.3 The problem statement. 1.2.4 What are the main factors for the consumer to choose the coffee brand? 1.2.5 Does the economy background of the consumer play a role in the coffee brand purchasing? 1.2.6 The contributions of coffee research to the literature, industry, and also for the policy makers. 1.2.1 Research objective. The research objective is to study a coffee behavior and acceptance in Malaysia market. It all started that coffee drinking culture started in suburb area like village and rural area as common practice in Malay culture and expand toward the years. This phase occurred slowly towards development and acceptance of community in coffee drinking. Coffee culture rapidly growth toward modernization, not forgetting also influenced from western that entered Malaysia market, these local culture totally experienced a growth in branding and culture toward development in economy and also social change of society. 8
  • 9. The consumer behavior consisting of several factors that that effect it growth and acceptance of society toward coffee drinking. The factors that contributing towards these phenomenon is branding, design, storytelling, price and customer relationship, (Healey,2008), not forgetting the marketing mix concept of 4 P’s that is people, promotion, product and also price, (Neil Borden and simplified E. Jerome). i.Branding The idea of branding is a trademark of the company that poses a culture that impacting the community to contribute in the said company product branding and can be well diversified in various ways. In Malaysia brands play an important role to compete among competitors as it encouraged the loyal customer to invest in their product offering, hence it will contribute in the brand repo and maximize the sales opportunity to generate good profit income. A brand is a closely connected with the business and the approach behind product and services, (David, 2005). Others well said that to build up a brand, a few components in the branding scenario are crucial in order to understand and create an environment that can be embraced easily by the audience, (Healey 2008). ii.Positioning There is also suggested that product positioning concept meaning that it define in mind and of a customer what a brand stand for and how it compares with competing brand, (Al Ries and Jack Trout, 1980). iii.Storytelling A great brand would offer a story that we all would like to hear, offerings a tangible and reassure that we do play an important role, and becoming a part of their great story. iv.Design Design is referring to all aspect of how product is produce, every single aspect from visual to surface, label and name. Which it is discuss between 2 persons. Rebranding has always misunderstood, end up they only meant by redesign, (Healey, 2008), whereby (David, 2005) mentions that it was a transformation to an identity representing to an audience that something has changed. v.Price In Malaysia price between coffee companies totally variance from each other, this can be differentiate towards branding of the coffee company. Such as kopitiam much cheaper and affordable for all range of community, whereby for premium coffee drinker they 9
  • 10. more suitable to select brands like Starbuck or Coffee Bean and tealeaf, (Bagozzi, Richard P, 1998). vi.Customer relationship The meaning of customer relationship is consumer expectation and self-satisfaction towards the service of the said brands, feel acceptance, ambiance, and services and moreover they felt a legendry service that brought to the consumer, as (Healey 2008), customer relationship administration represent sometimes idealistic efforts of companies to make each of us feel special. The 4 P’s of marketing mix that related to coffee behavior in Malaysia, as mention by (Kotler, P & Armstrong, G., 2005), the essential in principles of marketing mix indicated four factors contributing that are as below principles: vii.Product The concept of product valuating of intangible and tangible services towards the consumer, intangible services such an unseen services that attracting the consumer to purchase and becoming a regular customer in certain coffee brands. For example Starbuck staffs more friendly and this make the customer felt warm and welcome, while for regular kopitiam shop the service more or less simple and most of the kopitiam shop hired a foreigner which they unaware and not familiar with Malaysian culture, hence their ignorance is amusing to Malaysian which the hiring companies more or less must educate them, so that they will be able to understand and familiar with Malaysia local culture. In terms of tangible service is their product offering to the customer. At Starbuck and Coffee Bean they have variety of food and beverage for customer to select. A wide range of product offering will increase their product opportunity. In addition these two giants company also boost their marketing product through festive season in Malaysia; a different product will be executed following to the festive season, for example, Hari Raya, Christmas, Deepavali, Malaysia National day or Chinese New Year. viii.Price Price is very important in coffee company as it determine the company survival through sales and profit income. Towards consumer view and perception an affordable price to have a cup of decent coffee will be at our regular coffee shop or kopitiam. While for other consumer that prefer premium coffee and brand coffee they will select high end coffee company like Starbuck, San Francisco Coffee or Coffee Bean. ix.Promotion It is very important for coffee company to branding their products. In Malaysia coffee branding had pass through the stage of familiarity of awareness, that all Malaysian had accepted coffee drinking as a trend and follow to their culture. Hence in order to promote 10
  • 11. the coffee brand the coffee companies execute their promotion through advertisement, event and coffee sampling. For example every year they will be a huge event for barista to show their talent and compete between countries and the recent competition took place at Solaris Mount Kiara. x.Place A distribution place for coffee company to sell their product and in Malaysia we can even find coffee everywhere, from rural area, village to the busiest city. Kopitiam and café were expending and growing like mushrooms hence the coffee awareness toward Malaysia also increasing rapidly. More buyers and coffee lover can access coffee product wherever they go through Malaysia. 1.2.2 Hypothesis for each objective. • There will be a clearer differentiation between behavior changes in coffee consumption through local coffee company and international coffee company. • The attribution of coffee in Malaysia through the changes that impact Malaysian behavior and acceptance. • Post purchase behavior of consumer through coffee branding in Malaysia. • Value of coffee that impacting Malaysia economic changes. • Brands acceptance of coffee in Malaysia. 1.2.3 The aim in research objective. The main of this research is to study the consumer behavior particularly of coffee brands in Klang Valley of Malaysia, this study will focus on consumer behavior through coffee branding, culture, geographical and economic situations that impacting towards consumer in Malaysia. The main objectives are: 11
  • 12. a) To find, observe and simplifies the studies of human behavior toward coffee acceptance and branding awareness in Klang Valley of Malaysia. As by far coffee culture in Malaysia had been introduced significantly that impacting the economy, technology, political view and this issues must be study and record for further justifications. b) To study the consumer view towards coffee branding and tasting through local coffee and premium coffee, the ambiance, locations and also social life style in Malaysia. 1.2.4 The problem statement. In order to look into the problem statement most Malaysian aware of the existence of coffee drinking as part of their cultural, however through times and technology the concept of coffee drinking change hence the social and behavior or consumer toward coffee changes. The roots cause that effect these behavior relates back to our past history as Malaysian coffee culture started back as early as the 1890’s century, (Siti, 2010). The culture in Malay history is coffee drinking will be serve during special ceremony or occasion like wedding, visitation or circumcise ceremony, however after British colonial coffee drinking had been accepted as part of the social culture, as mention by (Ritzer, G, 1987), that social change can be defined as variation over time in the relation among individuals, groups, organizations, cultures and societies. Throughout the year coffee places has change their features and take place rapidly. Usually coffee only can be found at kopitiam, mamak, or Malays stall, however now coffee can be found everywhere and as year passes coffee drinking concept also changes, from high end premium coffee shop to normal local coffee shop. This culture of coffee consumption had changes because it was not very much popular and only burst to consumer awareness only when Coffee Bean and Starbuck entered Malaysia market late 1998, (Siti, 2010). The high end premium coffee brand had 12
  • 13. changes Malaysian behavior in such ways of branding even though the price is much more expensive other than local coffee shop. This brings me to study the behavior of Malaysian people the only prioritize brand, social culture and people acceptance without considering the value of coffee, quality, quantity and price. It is very important for me to study the consumer behavior in Malaysia towards coffee behavior because it a study that impacting gender, demographic, cultural, geographical, social culture to identify the changes and reason for such behavior. 1.2.5 What are the main factors for consumer to choose their coffee brand? The main factors for consumer to choose their coffee brands is because of the main criteria that fulfilling consumer wants and demands that is more to branding and the 4 P’s marketing mix concepts. Malaysian had been exposed to normal coffee drinking behavior however we never exposed to coffee fusion or enhanced coffee products. Since International giant coffee company penetrates Malaysia market, it had been a trend and changes occurred slowly that bring a result of social cultural changes in Malaysia. This is based on the statement from Datuk Ibrahim Mohammad, Deputy Secretary General of Agriculture and Agro-based Industry Ministry, the production of local coffee is lower than the demand of the local consumers and yet the imports of the international coffee is increasing during these years, (ASEAN AFFAIRS, 2008), and in another statement based on (Miller, 2009 report, Howard Schultz), the Starbuck Coffee CEO said that his company is going on for a reformation as well as its products lines by promoting their new product which is instant coffee, plus he also ensures that their new change would persuade more of the citizens to enjoy their instant coffee at home. However, this kind of convenience is not really a major factor in influencing the consumers in preferring the coffee brand that they are going to purchase. The reasons is the instant coffee has been applied by many of the coffee manufacturers and retailers, this no longer a competitive advantage for the coffee brands. The subject matters that relates to both statement shows that Malaysian had accepted coffee as their trends and social culture. Before the uprising of the new trends instant coffee can be purchased and drink at home but the social factor influences Malaysian to enjoy their coffee outdoor example like Starbuck, Coffee Bean or San Francisco Coffee. 13
  • 14. It a study to differentiate coffee brands towards Malaysian community, as there is lots of coffee outlets in the market nowadays. As from my observation, middle income earner will prefer to enjoy their coffee at the high end premium coffee brand such as Starbuck or Coffee Bean but yet due to the brands Malaysian comfortably able to afford such a products even though it is much more expensive from local kopitiam or mamakstall. These factors more or less to personal self-demand and want, to follow the trends and to catch up the phase through social cultural changes, in order to be accepted in the community and to manage their expectation towards personal self-esteem. 1.2.6 Does the economy background of the consumer play a role in the coffee brand purchasing? The contributors during British colonial had exposed coffee industry in Malaya, however due to the acceptance in export not demanding in the arena of coffee, it had been grew only for local plantation. Local coffee grew and caters locally throughout Malaya however it had reached certain acceptance of local community to accept coffee tremendously. It had been a new beginning when international coffee brands penetrate Malaysia market like Coffee Bean and Starbuck, (Siti, 2010). Through rebranding and promotions coffee stall and kopitiam changes to suite consumer need and satisfaction, for example Kluang Station and Old Town White Coffee. The local coffee shop had to rebrand in order to compete with their new competitors. They built new café for better ambiance that to suite their customer expectation, (Technology College Sarawak, 2011). These changes had contributed in a larger scale of import, export, manpower and changes in culture. The demand and supply increasing towards new socio economic, competitors look into more microscopic view to market their product to increase sales and profit opportunity, (Mowen, J. C. & Minor, M., 1997). In other sales prospect through article Euromonitor.comcoffee sales had expected to grow as it constant value terms over the forecast period. This is because a rapid growth of coffee company in Malaysia robust vigorously within the Malaysia Market which factoring and encouraging sales of coffee both on trade and off trade channels. In 14
  • 15. additions also , the new rising company will increasing in income and consumer sophistication over the forecast periods is likely in result of premium coffee acceptance in Malaysia which will boost the value of growth and coffee sales. This is also along with coffee trading in Malaysia that coffee retailers or coffee shop owner had exposed to fair trade coffee scheme, example like Starbuck Coffee Company. Starbuck began fair-trade coffee in 2000, they had empower small scale coffee farmer that organized in democratically to invest in and develop the coffee business industry to compete in the global market place, hence it impacting Malaysia that Starbuck had successfully market their product in Malaysia market rapidly and shown proof that 140 outlets and increasing throughout the years bring up coffee economy in Malaysia, (Starbuck.com.my). 1.2.7 The contributions of coffee research to the literature, industry, and also for the policy makers. To the literature-coffee study had bring a several impact in coffee industry and to Malaysia culture which it had bring a new outcome of behavior through coffee and human behavior study. It must be documented for further analysis. This is because coffee had been inherited in Malaysia before independence and it had been a culture for quite some times. Through years and evolution it had change coffee perception and it is impacting people behavior. The reason is might be coming from coffee rebranding, people satisfaction and social culture changes in Malaysia. As well said by (Siti, 2010), the development of local coffee culture started from coffee harvesting and incoming of immigrant in British colonial around 1800 thus the demand and want of coffee had been develop like mushroom especially local kopitiam, mamak and malay stalls. Most of all the major development occurred when Malaysia economic boomed around 80s where the social changes through the rising year. This is 15
  • 16. also due to the influence of international coffee branding that invested in Malaysia such as Coffee Bean and Starbuck Coffee. Through the study I can differentiate human behavior toward the social changes, emotion and also their feedback in choosing coffee as part of the social contributions. These inflecting behavior changes are a behavior change of ongoing psychology, economics, and consume behavior towards the items that they selected. It building on previous work of commitment, self-signaling and the principal consistency of behavior study, in the changes of human behavior through the years in theoretical and practical implications approach in motivating the desired behavior discussed, (Journal of consumer research, 2013), whereby towards my study the changes of behavior in coffee consumption at Malaysia. These might be the reason because of Malaysian always follow the coffee brands rather than accepting the coffee drinking concept, in order to be accepted in a community Malaysian have to follow the trends. The imitation of others through coffee branding impacting Malaysia culture in coffee drinking concept, this is because when international coffee investor invest in Malaysia market and the awareness tremendously change Malaysia behavior for not accepting the local coffee culture however following by others. The contributions of coffee research through Malaysia industry had bring Malaysia economic in a good state in the era of 90s as international coffee shop booming like mushroom. The good investment in coffee and acceptance of Malaysian opens an economy range through coffee plantation, tourism industry and also through food and service industry. From my finding it can be appraise from the article of, (CIA World Factbook, 2011), indicated that the current Prime Minister, Mohamed Najib bin Abdul Razak, is shifting focus to domestic demand in order to reduce reliance on exports. However, exports are main driver of the Malaysian economy and will continue to hold a prominent role. The others finding that can conclude the coffee research through Malaysia industry is the economic changes and life style of Malaysia as derived from (Malaysian 16
  • 17. Food, 2011) that, the others strong players in foodservice are the mamak and kopitiam stalls. Also referred to as “hawker stalls” or street food vendor, they are common sight throughout Southeast Asia. These are open-air quick service restaurants where one can enjoy traditional fares. It is a very popular option as it provides consumer with local meals in a quick and affordable setting. Typically these stalls are open 7 days a week, from early morning to late night; some even operate 24 hours a day. In addition that through the fast phased environment most Malaysian will contribute through fast moving food and beverage, this had been said in (Euromonitor, 2010), that when it comes to ready meals, the window for growth may be small as foodservice outlets such as mamak stalls or kopitiams already provide quick alternative to home cooked meals. With increasing international influence that is referring to other international giant coffee chain like Starbuck Coffee Company and Coffee Bean, Malaysian consumers seeking a similar lifestyle may look to more Western or health oriented options in the ready meals sector of food and beverage consumptions. The Contributions of coffee research through policy maker is they well able to identify the trends that rapidly change in coffee acceptance consecutively in socio- economic, industry related and also the lifestyle concept of Malaysian that bring up to the behavior changes toward Malaysian and coffees. In lifestyle concept it contrast through the policy maker that rise of private label such as Starbuck Coffee Company and Coffee Bean, this is because the brand is correlated with increased standard of living for the generations, the demand rose throughout the years and it will continue to grow as the majority of the populations. Stores that typically served expatriates are now finding the young professional Malaysia as among of their customers, as policy maker search to acquire premium and imported goods. A part of this demand is the desire to define their lives through their purchasing choices, (Euromonitor, 2011). In other words the policy maker fined a justification through “HALAL” signage like Starbuck Coffee Company in Malaysia that is consumable for Muslim’s. These can be defined as “PRIVATE LABEL”this for the policy maker had helped them to respond quickly in latest trends and can be accepted in Malaysia culture. By creating their own private labels, the coffee retailers able to control their brands image as well. 17
  • 18. The contribution for the policy maker in industry is they able to control their product in a structured and planed manner which they able to produce their product following to the industry needs. For example Starbuck is contributing a fair trade activity by purchase coffee bean from small retailer all around the worlds to help the small farmer and factoring their products to the consumer. While others like San Francisco Coffee they are contributing a profitable shareholder scheme to their employee for each product that they sales. Through these research studies policy maker will be able to understand Malaysian behavior through coffee acceptance. Socio-economic contribution to the policy maker is to study the culture that impacting Malaysia within the years and implement new ideas to increase up the coffee industries. From the changes in upcoming local and international coffee brand they can maximize and utilize the coffee brands in a larger scale to cater Malaysian culture that id in the era of globalization and changes. 1.3 Justification for the Research This research is conducted to know about the consumer behavior and economy background before they purchase for a coffee. Different coffee brands will have a different type of demands in our local coffee lover’s and this research is to understand the main factor of the research question.Different coffee brands, different types of demand to understand the main factors that the distinctive value that affecting behavior in Malaysia is pricing, brand, place, promotion, authenticity value, staff experience and customer experience. Pricing factor plays an important role for the behavior changes of coffee intake at Malaysia. The pricing methods will attract customer to purchase their product. All of the coffee brands in Malaysia have their own pricing range. International coffee brand like Starbuck, Coffee Bean and San Francisco have their own range of pricing and more into premium coffee based, whereby for local coffee shop like Old Town White Coffee, Kluang Station and local kopitiam have lesser pricing. Due to that all of the coffee brands compete among each other to sell their product to increase sales productivity. It is very much contributing to the change of the community behavior towards coffee intake in Malaysia. The reason for the behavior changes due to economic situations and also acceptance of Malaysian towards coffee intake. Premium coffee lover will go to international coffee brand while others will go to local coffee shop for better quality and also quantity. Price is defined as the amount of money charged for a product or services. It is extremely important for marketers to 18
  • 19. remember the that individuals in a market are highly receptive not only to the price of an item, but also the value offered by the products, (Goggle 4 p’s Marketing Min Price – Castelar article). In Malaysia brands effecting the changes of Malaysian behavior by the awareness of coffee evolutions. Supporting with local and international coffee Malaysian brought coffee intake to the next level. Local market will go through rebranding while international market will more exposing their brand to the community, as one definition for a brand has been offered in the Journal of Marketing Management by Professor Peter Doyle of Warwick: “A name, symbol, design, or some combinations which identifies the product of a particular organizations as having a substantial, differentiated advantage”, (O’Malley, 1991). Since international coffee penetrates Malaysia market like Starbuck and Coffee Bean their brand had been exposed and accepted as premium coffee brand that changes the culture and socio-economic. Malaysian accepted these brand as premium coffee brand following to the trends and in the mean while local coffee treated as local coffee intake in Malaysia that tag along to Malaysia culture and event. Production or product is rightly treated as the heart of marketing mix Customer purchase a product due to the attributes, features and also the benefit. The selling of product motivates the consumer to buy their product. It is also due to the package of the product offered to the consumer. This suggested that various decisions regarding the product to be marketed need to be taken to justify the product offered. This resulted the product offered to be market will be a quality product. In addition it will be utility oriented, attractive, convenient, property design and branded. Even attractive packaging decision still needs advertisement and promotional incurred, (Kalyan City Blogspot.com). In marketing mix, place also plays the role of consumer behavior on coffee intake in Malaysia, in terms of culture and social factor. This is based on Malaysian acceptance while enjoying their coffee consumption. Previously coffee been consumed in the event of ceremony or visiting etiquette however due to the new changes coffee drinking evolve to be much more exposed and more sophisticated. The factor contributing for behavior changes is because of the ambiance more relaxing and coffee drinker may enjoy their coffee comfortable. This is refers to providing the distributions place which convenient for consumer to access. The is various ways of strategies such as intensive distribution, selective distribution and franchising are used by the marketer to complement the other aspect of marketing mix, (marketing mix- Wikipedia, the free encyclopedia). Promotions act a marketing tool to increase the brands awareness. In order to expose their coffee brands each coffee competitor comes out with different promotional scheme or advertisement. Through brands awareness and coffee experience the tendency of culture change 19
  • 20. Malaysian consumer behavior in coffee consumption. For example Starbuck and Coffee Bean introduce a new card loyalty scheme for their loyal customer and local coffee shop like KluangStation and Old Town White Coffee promotes their brands through advertisement in newspaper, public transportation or advertisement in television. The meaning of promotions is it acts as a business communications tools to communicate with consumers. It will provide information that will assist them in making decision to purchase a product or service. The procedure, pace and creativity play an important parts in promotional concept. It will increase awareness and enhance consumer mind set. The supply and demand will increase. The cost associated with promotion or advertising goods are spread over a larger output. Though increased promotional activity it a sign of respond from the consumer to have a competition activity among marketers, in this manner is the coffee brand competitors. It will gauge the marketer to create and implement better improve product to the market that bring up succession of message and can be extremely cost-effective, (Businesscasestudies.com). Each coffee company in Malaysia has their own products range. The authenticity of the products only can be finding in the particular brands. Like Starbuck famous with their hot drinks, coffee bean with their tea leaf and blended drink, while local coffee company famous with kopitiam style of products. The products offer changes Malaysian behavior of tasting and spending, in other words following to the brands and budget on hand. A coffee brands usually provides as identifier for each of their food and beverages menu ranges, because of the huge amount similar products in the coffee company, there is a special kind of defining menus with options that representing the characteristic of each coffees. In addition a specific coffee menu of the products will attract consumer to buy and consume. A product line is a group of products that are closely related, either because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets or falls within given price range, (Kotler. P, Gary. A, 1989). The staff experience and customer experience that changes Malaysia behavior through acceptance of coffee is because of several factor contributing to Malaysian society. Malaysian full of culture and more polite community, hence the ways of coffee company express their welcome to the customer more polite and friendly that bring legendary service to the customer to remember. For example Starbuck and Coffee Bean have their own ways of greeting their 20
  • 21. customer in a friendlier ways. The local coffee companies bring their customer back in time through ambiance and atmosphere of the coffee outlets, as well said in NBC news from (www.nbcnews.com/starbucks brand articles). “Starbuck is unique is it is able to tailor customer experience and products to a customer’s exact in,” said Jeff Grossman, vice president of product management for ClickFox, another market researcher that gave Starbuck a top rating.”Despite its huge spread it has delivered a personalized experience across many locations. 1.4 Thesis Outline In chapter 1, the researcher will study about the main issues for the research, research questions, problem statements and the techniques of the methodology will be discussed as well as the scope of people who will be in the part of the methodology as to collect the data. In chapter 2, more detailed background information of the research will be included. The understanding of the study itself will be full review in this chapter. As for chapter 3, it will be the type of research method used in this research in this case is interview and also online surveys. For data collection survey I created a Gantt chart for better perspective and more accurate in projecting the survey completion. Please find the attached Gantt in appendix. 1.5 Summary From the explanations above related to my research title consumer behavior impact particularly of coffee brand in theKlang Valley of Malaysiait is discussed from the beginning history of coffee culture until the current situation that impacting towards Malaysian. From early beginning of British occupation until current international coffee brands penetrate Malaysia market. The changes of early coffee consumption until the current existing trends that effecting Malaysian coffee culture. These are well said that due to several factors causing the cultural changes to trends. From my finding I can summarize that the main factor relates to the changes is more to marketing factors that is correlated to each other’s. For starts is due to economic and time factors. Malaysia is allowing and encouraging investment from international coffee company, because of that local coffee company have to compete with their competitor to increase sales opportunity and in order to increase sales opportunity another concepts of marketing coming in. 21
  • 22. For example each of the competitor will expanding and evaluating their café’s through the 4 P’s concept of price, people, promotion and place. In addition they had implanted Malaysian with strong and robust coffee experience, from café’s environment until product varieties. As for my research the correlated changes had tremendously change Malaysian behavior toward coffee perception and consumption. The behavior changes was not rapidly effect Malaysian as it slowly capture the Malaysia market towards coffee. This is because Malaysia not like others oversea countries that accepting coffee as their staple beverage. The changes impacting Malaysian when 1 international coffee brand thoroughly successfully market their products, that is Starbuck Coffee Company own by Dato’ Vincent Tan owner of Berjaya Group Companies. The art of drinking coffee had change as well as Malaysia coffee culture. The starting point had gauges Malaysian to appreciate coffee more fluently based on experience, product and acceptance of coffee changes. The behavior towards Malaysian of coffee becoming a trends and followers to other, from this it is indicated that Malaysian nowadays will have the opportunity to select their coffee shop as they like, from international to local café’s. However yet they still tend to follow the strongest coffee brand to show appreciation and to adapt into the community acceptance through coffee consumption. In other words Malaysian is followers and would like to follow the current trends and not to left behind. Last but not least showing that my research had successfully records and identify the behavior of Malaysian through coffee culture, from culture turn to trend and moving forward it will be accepted through as a whole and becoming parts of the Malaysian community habit of coffee drinking as part of Malaysian coffee culture through occurrence and observation. CHAPTER 2 LITERATURE REVIEW 1.0 Overview This chapter reviews the important literature about the history and development of coffee culture in Malaysia, it also review the history and changes of coffee consumption that impacting consumer behavior thorough coffee drinking experience. This chapter divided into 4 major parts. The first part introduces and presents the history of coffee history and culture in Malaysia. The second part discusses the coffee and Malaysian 22
  • 23. that showing coffee changes in timely manners and how it transforms art of coffee drinking. The third parts indicated the Malaysian coffee culture in present and upcoming future, discussing about the changes of consumer behavior through coffee consumption. Finally a summary is provided at the end of this chapter. 2.1 Background of the Coffee Since coffee become beverage it had been travelled between country and cross the world. Within the European acting colonizers, coffee plants have been spread all over America, Africa and Asia during the 19th century since the expansion of their power to these countries have found cheap labor was available and ready to exploit. The colonial powers do realized the importance and the high commercial potential of coffee and they funded large scale development of plantations all over the continents. As well as the Dutch brought coffee plants to Ceylon in 1699, while the English cultivated coffee in India at 1840. That is the earliest data that a coffee plantation in Malaysia ever recorded and was stated by (Ralph Neeraj, 1981). In Malaysia Coffee Plantation was the main plantation before Rubber Plantation took place. This is because Malaysia soil is suitable for low quality coffee bean that can be imported and due to the non-profitable returnable income the colonial powers decided to invest more to crops rubber rather than coffee, reason being due to the development of the automobile industry as cited by (Siti, 2010). The judgmental decision of the British about coffee market is so strong and they believe that coffee potentiality in Malaysia had opened large numbers of estates and plantation held in Sungai Ujong, Perak and Selangor before they shifted to Kuala Lumpur and Klang in early 1890s, (Siti, 2010). (Lai, 2010), also point out that Hainanese skills food and beverage industry is the best since they learn from experience of working in European household and opens kopitiams, bakery and coffee processing. Due to the massive illegal migrant from China and india at late 18s they had built a business of food and beverage in Malaya as quoted by (ThamSeongChee, 1977). After Malaysia independence in 1957, throughout the 80s and 90s, kopitiam and local food stalls have expanded. The western café had entered Malaysia food and beverage started with Coffee Bean in 1996 and followed by Starbuck Coffee Company in the year of 1998. Even though the western café entered in local market, out kopitam started to booming late as cited from (Wilson and Khor, 2008). 2.2 Coffee and Malaysian 23
  • 24. Coffee in Malaysia started in the years of British colonizes which they harvested coffee as one of the main business attraction before rubber plantation came to the picture. Hence coffee in Malaysia had been more expanding within years. Reason being Malaya before Independence Day only drank tea not coffee. Local coffee shops in Malaysia only started early around 1900’s century and has been the local conversation or meeting place to expand new ideas and share thoughts according to (Siti, 2010). In Malaysia coffee had been branding rapidly branding as it had been recorded the strongest value sales within hot drinks in Malaysia over the review period. As through verification by the trade sources, coffee had extended its segmentation to not only adults, but also the age of teenagers to adult. With coffee being establish in the everyday diet of most Malaysia consumers, new products coupled with the convenience of instant coffee contributed to the growth of the coffee sales is 2011(Reportlinker.com, 2013). This is also said that social change can be change due to individual preferences, the change of sources, due to these elements contribute in social changes in Malaysia and these changes will either bring positive or negative impact among individual (Ritzer, G, 197). For example Malaysia coffee had been accepting by Malaysia due to brand and fulfill of demands of consumers. Through the changes of culture an ideology of drinking coffee in Malaysia had been accepted as a trend and lifestyles. Lifestyle is another terms of a social life change or circle or changes in era of modernization that has been introduced by Max Weber through his idealistic perspective. As written by (Vago, S., 2004). 24
  • 25. 2.3 Malaysian Coffee Culture Malaysia coffee culture more diversified because coffee bean and tea leaf only exposed to Malaysia with a branding status like Starbuck, Coffee bean, San Francisco Coffee, Austin Chase Coffee, Dome and Gloria Jean Coffee. With all this branding it had exposed Malaysia culture not just about drinking coffee but to appreciate it and more knowledgeable about coffee history. We all aware the coffee branding in Malaysia had been widely market had been accepted by Malaysia due to culture, environment, brands and also the changes of mind set among Malaysia about coffee acceptance, (Siti, 2010). Theoretically generally belief that coffee drinking behavior in Malaysia due to consumer preferences and taste by Malaysia cultural background to be ahead and recognize by the community and this is cited by (Schutte and Ciarlente, 1998). In Malaysia coffee drinking had took place in different era which traditionally coffee drinking in Malaya only for men at normal coffee shop or only during visiting or any special ceremony or special occasion. Serving coffee or tea during that era act as token of appreciation for the visitor that come to their house, although it is a very old tradition it is still remain and act as one of the culture that continues until now especially in village areas cited by (Siti, 2010). The factor affecting consumer behavior in Malaysia more to age, occupation, economic circumstances and lifestyle as cited by (Principles of Marketing system, 2012). This also occurred due the 4 P’s concepts which are product, place, price and promotion as cited by (Siti, 2012). Other than the 4 P’s concept, branding also very importance in order to expose the coffee drinking culture to individual, hence to ensure branding strategy for the coffee organization to succeed a strong and well-built supportive branding must be conveyed to promote their products. 25
  • 26. It is also considering the 4 P’s and the brand mark carries the organization to succeed (Healey, 2008).This is because as for management paradigm the marketing mix has dominated the human behavior since 1940s and (McCarthy, 1964), further deployed this idea and refined the principle to what is generally known as the 4 P’s. However due to the economic changes throughout the years a scope with whole new concept and elements emerged from a new whole factor to the human behavior, especially in 1980s onwards, numbers of researcher propose new marketing mix, (Judd, 1987) proposed a fifth P that is people. (Boorns and Bitner, 1980) add 3 P that is to participate, physical evidence and process, to the original 4 P’s to apply the marketing mix concept. (Kotler, 1986), adds political power and public opinion formations to the Ps concept. (Baumgartner, 1991), suggest the concept of 15 P’s. (MaGrath, 1986), suggests the addition in 3 P’s that is personnel, physical facilities and process management. (Vignalis and Davis, 1994), suggest the addition of service to the marketing mix. (Goldsmith, 1999), suggested there would be 8 P’s that is product, place, price, promotion, participants, physical evidence, process and personalization. 2.4 Summary From all of the above explanation and references it shows that coffee effecting Malaysia through social change in local coffee scene. It is within the grasp of coffee market that booming in Asia. Hence local kopitiam, café and coffee shops have applying and re-branding their outlets to suite Malaysia taste through time and concept. Referring to the statement above it had impacting coffee competitors in Malaysia, whereby all local kopitiam will rebranding and restricting their coffee brand, ingredients or menu to compete with others giants coffee brands like Starbuck and Coffee bean, which for the giant company they will do the changes in demand of quality service and quantity of product offering to customer to feel brand in a high end lifestyle and branding lifestyle. Not forgetting the local social changes, Malaysia coffee culture had brought to another steps or drinking and enjoying coffee. As stated by (Alvaraz and Gilsdorf, 2007), Starbuck has proven the valued of creating outstanding customer experiences, even across such as large retail network. It has managed to tie together all the necessary brand elements. Starbuck sells tangible product and has found a way to create an engaging environment that encourage customer to linger and conduct multiple transactions. 26
  • 28. A quantitative approach is been used by the researcher in order to pull out and gather data. The survey had been carry out in an allocated and designated place that took place in the heart of Cyberjaya, Selangor which the area full of coffee shop and café’s. 3.1Introduction A mixed method would be used by the researcher for this research purpose. In highlighting the main issue of what affects the consumer’s behaviors to purchase a respective coffee brand, while the other is to understand whether economy background affect their choices of choosing the respective coffee brand through quantitative approach as; “A quantitative approach is one in which the investigator primarily uses the post positivist claims for developing knowledge (i.e., cause and affect thinking, reduction to specific variables and hypotheses and questions, use measurement and observation, and the test of theories), employs strategies of inquiry such as experiments and surveys, and collect data on predetermined instruments that yield statistical data” as well said by (Creswell, 2003). As proposed by methodology the research will begin with collecting information from data, documentation, article, internet source, and journal or research paper by previous researcher. This is also through survey and findings. As the survey will be printed and hand out to the target consumer in Cyberjaya at various coffee outlets, like Starbuck and Old Town White Coffee. The methodology would be based on research questions as guidelines are as below drafted data: 1. What were the populations that contribute behavior changes in coffee consumption? 2. What are my sample sizes that contribute to the behavior changes in coffee consumption? 3. How long is the data collection procedure? 4. How long is the data collection period? 5. How does a coffee can brand can affect consumer behavior? 6. What is the main factors that contribute to the changes of behavior through coffee? 7. Does the marketing mix affect and contribute the changes of choosing coffee brand in Malaysia. 8. How does the brand affecting local culture, socially and economic in Malaysia? 3.2 Population and Sample The interview and also surveys will be targeted to a numbers of customers of Starbucks and OldTownWhiteCoffee in Cyberjaya. The sample of people who will be targeted for the study 28
  • 29. consists of young adults to working adults aged of 18 to 50 plus years old. Both female and male from different ethnicity and races will qualify for this survey. As for the in depth interview, the researcher will focus on a purposive sampling of 5 persons from both coffee shops to participate in this research. 3.3 Development of Survey Questions In order to complete the survey and collect the date that are needed for this research, developing the questions is very important to get the information needed to support this research. The question was developed based on the factors that the consumer will purchase their coffee of their respective brand. The final questions and surveys will include demographics and psychographics questions. Demographics will enable the researcher to collect the data about the age, gender, race, education level, the occupation and also the income level while psychographics will enable the researcher to collect the information about the factors that affect the purchasing. 3.4 Survey Survey is a very easy and effective method where the researcher can access to the sample easily because it is easier to ask the participant to fill up the survey questions at the coffee shop. The set of 10 survey questions will understand their basic needs and also behaviors before purchasing their coffees. Survey act as a popular quantitative methods in research and as a researcher, the most specific and accurate data are needed to get a valid result that can be used in research. The opinion can be shared by (Uma Sekaran, 2003), saying that; “Survey is useful and powerful in finding answers to research questions through data collection and subsequent analyses, but they can do more harm than good if the population is not correctly targeted.” 3.5 Interview 29
  • 30. Interview will be another way that the researcher will conduct to gather the information and data needed for this research purpose. The researcher will get customers from the Starbucks and OldTownWhiteCofee to participate and conduct an interview with them. Questions regarding the factors and economy background will be questions. Questions such as “What makes you to be loyal to this coffee brand for this period of time?” and also more question regarding to the economy background will be asked to them face to face by the researcher. The researcher will have at least 20 questions to ask from each participant to make sure that the data to be collected will be even. As the researcher feels that it is more accurate and important if the researcher can use the empathetic listening method and also interview the customers face to face so that the researcher can have a better understanding. 3.6 Methodology A mixed method will be used for this research. A set of questions in 10 will be distributed among the coffee shops at Cyberjaya. This survey will be answered by 20 consumers throughout the local coffee shops as well as the modern ones. As for the qualitative method , the researcher will choose the coffee consumer that have at least 2 years of loyalty of purchasing the particular coffee brand for an in depth interview. A set of 10 questions will be asked to them to understand their behaviors of purchasing a particular coffee brand for a period of time. This interview will require an empathetic listening method and as well as purposive sampling by the researcher. 3.7 Scope The surveys will be distributed throughout the coffee shop such as OldtownWhiteCoffee and Starbucks in Cyberjaya. This is to compare their loyalty of the customers towards their repetitive brand. The target age for the people who will be participating in the survey will be from 18 to 50 plus years old and above. As for the in depth interview, 5 customers from both Starbucks and OldTownWhiteCoffee will be taken as the study for this research. They will be a loyal customer of the respective brand for at least 2 years. 30
  • 31. 3.8 Data Collection 1. Following to the data there are four age groups, which are 15 to 20 years old, 21 to 29 years old, 30 to 39 years old, 40 to 50 years old and above. From my finding most age group that 15 to 20 years old that earn below RM1500 to RM2500, 30 to 39 years old earn about RM2500 to RM3500, meanwhile age 30 to 39 years old about RM3500 and above. From this I can summarize that individual with high range of salary contribute more to spending their money in coffee consumption. 2. The knowledge of local coffee brand analysis shown that higher institutions recognize the local coffee brand in term of local coffee shop and international coffee shop. Meanwhile secondary and non-professional go to normal coffee shop like mamak stall and kopitiam. Most coffee brand mentions is Starbuck Coffee Company and Coffee Bean. 3. The brands of coffee inputted that from the research and finding it is proven that most Malaysian nowadays prefer to enjoy international coffee product rather than local productions. Reason being they felt pride and secured in such ways when using the international product. The contributions of it due to taste, hygiene, quality and quantity of the product. 4. The brands equality that impacting social behavior shown that Malaysian prefer to spend their times at branded international coffee shop for studying or business purpose, meanwhile local coffee shop more into dine in and leisure, in other words spending their time with families, working colleague and friends due to price much more cheaper and affordable to spend. 5. From my finding the research show that coffee branding impacted human behavior in larger scale in Malaysia, this is because of the necessity to meet people want and demand thru the era or modernization. It meets the needs through people perception, self-satisfaction and human behavior to follow. 6. Results show that coffee culture is importance in Malaysia, before international coffee brands penetrate Malaysia market. It had affected tremendously in lifestyle and follow to current trends these days. This is because local coffee shop more to simplicity not like international coffee shop that focus on ambiance and selling more higher scale coffee bean and products of coffee trading example like Starbuck Coffee Company. 7. For economic change that impacting Malaysia market the research show that 40%, demographic 30%, geographical 25% and political issues 25%. This I can summarize that economic represent a huge changes in human behavior through coffee branding. 31
  • 32. 8. Through the research that Malaysian most likely to spend their time at branded international coffee shop rather than local coffee shop due to the factors indicated, that price 10%, product 7%, promotion 10%, meanwhile people and ambiance result showed equality of 15%. This show Malaysian concentrated more towards people service for legendary services and ambiance in that particular coffee shop. 9. From the research it is clearly show that coffee branding impacting Malaysian socially and follow to the trends. This is because Malaysian would like to tag along with others countries by following coffee drinking trends; hence it is impacting Malaysian culture and socially changes the perception of coffee drinking. Since international coffee brands like Coffee Bean and Starbuck Coffee Company penetrates Malaysia market, the trends of coffee drinking changes, new coffee company mushrooming everywhere in Malaysia. Local coffee shop rebranding and changes their café interior to attract the customer and also to compete with their competitor. 3.9 Summary From the above finding for the research methodology I am using quantitative approach. That mainly targeted the issue of what affects the consumer’s behaviors to purchase a respective coffee brand. Furthermore I am using an empathetic listening method and real time interview with participant to collecting the data as well as a mixed method will be used.I had converted the information to a chart to specifically identify the factors of behavior that effect Malaysian through coffee consumption. In addition the research showing that Malaysia had accepted coffee in a very long time however due to changes and trends it had change the culture and impacting to the behavior in all factors in Malaysia. This is also based on coffee products offering, human turn coffee to addiction and following to the trends is the main factor for the changes in Malaysia. 32
  • 33. CHAPTER 4 DATA ANALYSIS 4.0 Overview The data analysis collected as below indicated the researcher had gathered information’s to support the finding of researcher topic. The collections of data had been tabulated and simplified into chart for further explanation. From the data analysis I had distributed 10 copies of questionnaires for my research and each of the questions will be distributed to the coffee shop tenant in Cyberjaya, that I had selected Starbuck Coffee Company, OldTownWhiteCoffee, mamak and local kopitiam shops around the vicinity. The data analysis I am using for my research is SPSS system, it a statistical analysis for market researcher which collected data will be documented, files and recorded for further analysis. For my survey I had distributed 20 questionnaires to the participant and out of 20 participants only 3 participant reluctant to participate. 4.0.1Coffee drinker by group age analysis The data showed average income for the sample size accordingly to age. There are four preferred age targeted in my analysis that is 15 to 20 years old, 21 to 29 years old, 30 to 39 years old, 40 to 50 years old and above. From the data indicated that most coffee drinker are aged 21 to 29 years old, which for age 40 to 50 years old not a coffee drinker. The data collection gathered I found that most of adult consume coffee as their normal regular routine and this accordance will follow up to their habits as a coffee drinker. This habit might cause from several factors like social gathering, friends, working conditions and drinking preferences. It is also indicated that during the age of 40 to 50 years above none coffee drinker is found. This might be the reason of coffee is not good for old peoples as it contains caffeine that is hazardous to ageing body. From the data collection also I found that coffee also had been consume by teenagers however the amount not as high as adult. There are a lot of factors that causing teenagers to consume coffee, as likely because of parenthood drinking habit, to reduce stress during exam or might be natural preference habits towards coffee drinking. From the previous research result comparing from (Siti,2010), indicated that most of the correspondents that visit kopitiams, coffee shops and western café is income secured and are group in the middle class society, by looking at the average of monthly income they earn. 33
  • 34. Figure 1.0: A chart showing coffee drinker by age analysis The data collection analysis by far had answered my questions in coffee consumption due to age and factor impacting it. From the finding it clearly showed teenagers and adult the highest contribution of coffee drinking phenomena. These trends will be spread out by adults and teenagers as this group age more fluent about their surround environment and what is happening around time. 4.0.2 Coffee drinker based by occupation Through occupation analysis indicated that most of the student consume more coffee rather than working people. From the data below indicated that not working and retiree having the lowest data collection. This result proven and relates to coffee consumption toward age analysis as above explanation.The result indicated as same internal or external factor that offered student or working peoples to consume coffee. Meanwhile for retiree and not working might be due to health and monetary issues. Figure 2.0: Coffee drinker chart based by occupation analysis The comparison that indicated from the previous researcher as below that coffee only be consume during occasion or special ceremony. It is totally different now because coffee had been consumed due to habit and trends. As cited by (Siti, 2010) below: 34 0 1 2 3 4 5 6 7 8 15 to 20 21 to 29 30 to 39 40 to 50 and above CORRESPONDANCE RESPOND AGE NUMBER OF PARTICIPANTS
  • 35. In Malaysia coffee drinking had took place in different era which traditionally coffee drinking in Malaya only for men at normal coffee shop or only during visiting or any special ceremony or special occasion. Serving coffee or tea during that era act as token of appreciation for the visitor that come to their house, although it is a very old tradition it is still remain and act as one of the culture that continues until now especially in village areas. The data collection generally had answered my analysis because it showing a very strong culture impact socially between now, past and present years. The changes that occurred is the past mostly only adult accept coffee to be consume during special ceremony or offering and present day indicated that coffee had been consume by younger generations in any occasions and also act as trends based on the coffee brands or products. 4.0.3 Coffee drinker based by student status and profession related data Referring to the table indicated that higher institutions based by profession consume more coffee rather than non-professional came from secondary schools. It is showing a tremendous scale of coffee consumption towards working peoples rather that none professional. From the data collection I can summarize that it is due to monetary, peer and working colleague influence, which it is affected mostly among professionals rather than the non-professionals working groups. INDICATIONS HIGHER INSTITUTIONS SECONDARY SCHOOLS NON PROFESSIONALS 0 0 PROFESSIONALS 17 0 Table 1.0: Data collected to differentiate between nonprofessional, professional with secondary school and higher institutions Figure 3.0: Coffee drinker chart based by student status and profession related data As for work scope data collection the difference between previous research and my data indicated in several factors and the factor effecting coffee consumption in my data analysis is towards work scope and education whereby from other research indicated as below: 35
  • 36. The factor affecting consumer behavior in Malaysia more to age, occupation, economic circumstances and lifestyle as cited by (Principles of Marketing system, 2012). The analysis above answered my research by showing a statistic of work scope and education level through coffee consumption. The data showing the most professional from higher education have awareness of coffee consumption in fact they might accept coffee as their staple beverage during the days. There might be a valid reason why only professionals consume coffee heavily and it might be due to several factor, example like lifestyle, working environment and during exemption weeks. 4.0.4 Knowledge about coffee brand analysis Figure 4.0: Coffee brands knowledge chart and acceptance level Researcher summarize that most of the correspondent aware of the coffee brand and data collection indicated that most correspondence like to enjoy their coffee at local malay, mamak and kopitiam which indicated 80%. Remaining 65% correspondences have selected Starbuck as their second selection of coffee shop, Coffee Bean 25% from the selective, Old Town White Coffee 20% and San Francisco Coffee 10%. The reasoning in addition of the data collected showed that most Malaysian prefer local coffee shop rather than imported coffee products. These I can conclude that Malaysian still following to the traditions and slowly adapting to the changes of time in coffee consumptions. From my questionnaires the participants had given their opinion, pertaining to the choices of coffee shop to select with, most of the correspondence that answer no commented as below: 36
  • 37. 1. The new imported coffee shop product much more sweater than others shop, this might be most of the imported coffee shop premix their coffee with sugar in a vacuum pack before serving to customer, meanwhile local coffee shop mix the beverage upon request. 2. Some of the correspondence indicated that the new concept of coffee shop providing free internet connection to their customer, however nowadays internet connection very much easier to get connected, as by far it is one of the strategies to attract customer to dine in. From the above explanation to be compare with the other researcher like for example as below: Malaysia coffee culture more diversified because coffee bean and tea leaf only exposed to Malaysia with a branding status like Starbuck, Coffee bean, San Francisco Coffee, Austin Chase Coffee, Dome and Gloria Jean Coffee. With all this branding it had exposed Malaysia culture not just about drinking coffee but to appreciate it and more knowledgeable about coffee history. We all aware the coffee branding in Malaysia had been widely market had been accepted by Malaysia due to culture, environment, brands and also the changes of mind set among Malaysia about coffee acceptance, (Siti, 2010). In other words coffee knowledge branding had successfully branded in Malaysia, internationally and locally. Yet Malaysian still prefer local coffee rather than international coffee, and this is due to the authenticity taste neither of coffee nor like international coffee that had been flavored during coffee roasting or processing. The data collection analysis answers my research question and it showing the acceptance level of customer from the café’s I conducted the interview. The behavior of coffee acceptance level to Malaysian still remain the same which Malaysian still prefer local malay, mamak and kopitiam rather than international coffee company, however the most preferable coffee company following to chart indicated as Starbuck Coffee Company and it showed that there is a trends behavior, Malaysian follow towards branding not because of the coffee experience or appreciation of coffee consumption. From here I can summarize that Malaysian is towards branding behavior, yet still remain accepting local coffee. Malaysian knowledge of local coffee culture had been educated since young while international coffee knowledge only when the individual exposed to the markets. 4.0.5 Analysis based on income 37
  • 38. Figure 5.0: Chart showing a range of income that contribute to coffee consumption From the analysis based on income indicated that the selective range of income data from RM1500 to RM2500 and RM2500 and RM3500 showed that they have equal data collection in 30%, meanwhile RM1500 below and RM3500 and above have equal data of 10%. This showed that income range plays an important role in coffee productions and acceptance. Based on stipulated data indicated that the ratio of coffee contribution is equal among each other’s which belief on economic turnaround. The analysis based on income showed that the salary range of MYR1500 to MYR3500 will contribute more to coffee consumption. As said from other researcher it is due to human need and demands that co-existing with human nature as said from below: (Goldsmith, 1999), suggested there would be 8 P’s that is product, place, price, promotion, participants, physical evidence, process and personalization. The above explanation indicated overall that the factors will contribute to human spending behavior indirectly purchase of tangible or intangible products and for my research through coffee consumptions. As it is relates to my research analysis that due to economic changes through time, money spending and human requirements also changes, due to that for coffee historical value in Malaysia it is not a culture anymore in fact it had been accepted as habit and trends, because Malaysian nowadays with regards of any salary range will be able to enjoy coffee products either local or international premium coffee. 4.0.6 Analysis on human behavior 38
  • 39. Figure 6.0: Chart showing consumer acceptance level between local or branded coffee shop and pride using the imported coffee products Data gathered indicated that most of the correspondence preferable to enjoy imported coffee brand product rather than local coffee product. The above data indicated 90% out of 10% correspondence select higher premium or imported product rather than local. These preferences had been selected by Malaysian to support local products much more rather that imported products. As from my finding I found that some correspondence had commented as below. 1. They preferable Malaysian coffee product like Nescafe, even they should know that Nescafe is not local product however Malaysian had consume Nescafe since British Colonization bring it to Malaysia. 2. It is not about the reputation but the taste of local coffee made by local Malaysian. 3. It is depending on quality and affordance. 4. Some even comment as proud of Malaysian products. Hence data showing that in human behavior Malaysian still have the level of acceptance through local coffee even though there is new imported coffee introduce to Malaysian and the choice of preferences are by Malaysian to select the best cup of coffee. From the data analysis I found that Malaysian tend to trust the local because it had been known locally and to accept the new products it is depend on the individual preferences. As from the others researcher also indicated as in their research as below: This is also said that social change can be change due to individual preferences, the change of sources, due to these elements contribute in social changes in Malaysia and these changes will either bring positive or negative impact among individual (Ritzer, G, 197). 39
  • 40. The data analysis answers my research by differentiating the consumer acceptance level between local or branded coffee shop and pride using the imported coffee products. The consumer acceptance in Malaysia not really change their behavior because more or less they still accept and proud of Malaysian products meanwhile for international coffee is being accept as an average consumption. 4.0.7 Data collection in coffee shop turnover Figure 7.0: Chart showing consumer trends in coffee consumptions turnover From that data showing that most 90% of the correspondence preferable to enjoy their coffee during leisure, 70% would like to go to coffeeshop to study, 40% having business meeting at coffee shop and only 10% go to coffee shop to dine in. The data collection gathered indicated that most of Malaysian enjoys their coffee during leisure hour and it might be because of time and the level of acceptance and taste much more cosseting. This is because coffee has a factor of soothing sensation after being drink, hence it is likely drink to reduce stress at work or studies for student, most Malaysian consumes their favorite coffee during leisure time to relax, being pampered and felt comfortable of coffee aroma tantalizing aftermath taste. Now a days in Malaysia the trends of business meeting not held in business premises however most of the client prefer outside the office building, which bring them to coffee shop like Starbuck or Coffee Bean. Meanwhile several consumers will dine in at coffee shop showing that their respond might be during breakfast or lunch hour, in terms of quick and fast foods to be served. The data analysis collected from other researcher indicated as below: 40
  • 41. Lifestyle is another terms of a social life change or circle or changes in era of modernization that has been introduced by Max Weber through his idealistic perspective. As written by (Vago, S., 2004). How the data analysis answers my research through Malaysian behavior in coffee consumption is the trend that occurred in Malaysia currently changed significantly. This is because previously the culture of coffee drinking only in ceremony or special occasion, year past coffee had been drinks in any occasions. The changes of human behavior accepting coffee with regards of habit and product offered. People tend to follow trends and be more flexible. 4.0.8 Data collection in human acceptance through coffee Figure 8.0: Chart showing consumer acceptance through coffee consumption From the data collection coffee branding indicated that it is a necessity to satisfy customer meets and demands as data showing 90% showing positive respond other than 20% showing negative respond. It is well explained that human acceptance through coffee will change people behavior. This is because coffee in Malaysia had been introduced before British occupation hence it is a norms to Malaysia. However the changes of coffee drinking are from environment, economic, culture and trends. From the data collected it shown that Malaysia still acceptance coffee as one of the staple drinks only it had been changes in terms of art of drinking, the way it had been prepared and different of premium and local coffee. The Malaysian acceptance through coffee as other researcher comment as indicated due to the changes and factors incurred as well as surrounding as below researcher explain that; 41
  • 42. This is because as for management paradigm the marketing mix has dominated the human behavior since 1940s and McCarthy, 1964, further deployed this idea and refined the principle to what is generally known as the 4 P’s. However due to the economic changes throughout the years a scope with whole new concept and elements emerged from a new whole factor to the human behavior, especially in 1980s onwards, numbers of researcher propose new marketing mix, Judd, 1987 proposed a fifth P that is people. The analysis answered my research by changes of Malaysian behavior is because they had accepted coffee as culture yet they adapt with the changes and act following to the trends. The changes had educate Malaysia in several ways to accept coffee, like still yet following to special occasion or ceremony, business meeting, during leisure and also partly accepted as their habits. Malaysian also had fancy coffee in many ways through economic, sales opportunity in fact the products it selves. 4.0.9 Analysis that impact Malaysian in coffee branding Figure 9.0: Chart showing consumer acceptance through coffee branding Data collection indicated that 80% correspondence agree that coffee branding will affect Malaysia social culture behavior and 20% showing that it will not affect Malaysia with a reason of as stipulated by correspondence. It clearly had shown that coffee branding give impact to Malaysia through changes of time. The imported coffee bean and oversea coffee shop introduced to Malaysia market. From these changes Malaysian economic tremendously change and the acceptance of imported coffee had been accepted by Malaysian. By far data also indicated that through branding, coffee drinking had been introduced and accepted by all ages of consumer in Malaysia not like before only consume by adult. In other words coffee drinking in Malaysia had been accepted and it is now act as a trends. This is also specifying in other researcher comment that coffee branding is impacting human social and culture. They also explain that branding plays an important role in coffee acceptance, for example is from below researcher, 42
  • 43. In Malaysia coffee had been branding rapidly branding as it had been recorded the strongest value sales within hot drinks in Malaysia over the review period. As through verification by the trade sources, coffee had extended its segmentation to not only adults, but also the age of teenagers to adult. With coffee being establish in the everyday diet of most Malaysia consumers, new products coupled with the convenience of instant coffee contributed to the growth of the coffee sales is 2011 (Reportlinker.com, 2013). The data collection answer my research that brand plays a significant roles to successfully penetrate Malaysia market. How well Malaysian had accepted coffee and change their drinking habits. How well the company brands their product and how it impacting Malaysian? This is a question that relates back to Malaysian changes of behavior in coffee consumption. The most successful coffee brands will renowned bringing their reputable companies throughout Malaysia, for example Coffee Bean or Starbuck Coffee Company, these giant companies had shown their success financially in Malaysia market however Malaysian yet still not forgetting other local coffee brands as it is much more affordable and tastier. 4.1.0 Analysis either coffee culture is a popular lifestyle or current trends this days Figure 10.0: Chart showing either coffee culture is a popular lifestyle or current trends these days 90% of the correspondence agree that coffee culture is a popular lifestyle and had been followed as trends. 20% correspondence indicated is it not a life style. Thus it showed that Malaysian behavior changes due to coffee consumption in an acceptable level. Typically Malaysian agreed that it is depend on the individual behavior that create the changes, in both coffee cultures is a popular lifestyle and also a current trend of this days, which it is strongly answered and coexisting with my research studies. My research relates to the other researcher as they had indicated as per their below comment as below: 43
  • 44. Theoretically generally belief that coffee drinking behavior in Malaysia due to consumer preferences and taste by Malaysia cultural background to be ahead and recognize by the community and this is cited by (Schutte and Ciarlente, 1998). 4.1.1 Analysis of coffee culture in business scope Figure 11.0: Chart showing an analysis of coffee culture in business scope 70% of the correspondence indicated that coffee business is selling space and environment meanwhile 40% of the correspondence not agree that coffee shop now days selling space and environment as from their opinion.From the data collection above it answered my research as the changes of Malaysian behavior due to coffee consumption also based on several factor impacted, which is product, place, people and promotions in other words the 4 P’s marketing mix concept. For an example we take premium international coffee company like Starbuck and Coffee Bean they had situated in Malaysia quite a long time yet how the survived due to the said factors. Most of them located in strategic areas, nice and cozy ambiance, good imported coffee product and a line of marketing promotion in their company. Malaysian had accepted the international coffee company and this had strengthened their base in Malaysia. As well as local coffee company also had tried to compete with their competitors by rebranding their product to accept the changes of trends in Malaysia and increase their sales opportunity. Other researcher quoted as below which I can differentiate for what had been discussed; Other than the 4 P’s concept, branding also very importance in order to expose the coffee drinking culture to individual, hence to ensure branding strategy for the coffee organization to succeed a strong and well-built supportive branding must be conveyed to promote their products. It is also considering the 4 P’s and the brand mark carries the organization to succeed, (Healey, 2008). 4.1.2 Data analysis to coffee culture economic changes 44
  • 45. Figure 12.0: Chart showing an analysis to coffee culture due to economic changes turnover Most of the correspondence agree that coffee culture in Malaysia changes due to economic changes and attached the data analysis to support the correspondents respond in my questionnaires and how the data collected answered my research is that economic act as impact of culture. It had been differ from British occupation that coffee had been traded yet not successful in Malaya and only accept for side business, yet due to time changes coffee had plays an important roles in Malaysia, large coffee company invested in Malaysia and bring profitable income to the country, due to that the culture from international coffee company had impacted Malaysia coffee culture. As from the other research comment also it is a change of time as indicated below: Coffee in Malaysia started in the years of British colonizes which they harvested coffee as one of the main business attraction before rubber plantation came to the picture. Hence coffee in Malaysia had been more expanding within years. Reason being Malaya before Independence Day only drank tea not coffee. Local coffee shops in Malaysia only started early around 1900’s century and has been the local conversation or meeting place to expand new ideas and share thoughts according to (Siti, 2010). 4.1.3 Analysis of human behavior in branded and non-branded coffee shop 45
  • 46. Figure 13.0: Chart showing an analysis of human behavior in 4 P’s concept From the data analysis I found that most of the respond indicated that product plays a major role of coffee perception among Malaysian. Meanwhile people indicated in 30%, price indicated as 20% and promotions indicated as 10% among all’s. The data collected had answered my analysis through a concept of marketing mix that is explained on the chart. It had shown that Malaysian will accept product more than others factor. A highly indicator of product showed that a Malaysian behavior through coffee consumption is the taste and coffee experience. For example local coffee company products had same line of coffee menu which is formerly know by Malaysian, however when the international coffee company had penetrates the Malaysia market a series of coffee products had been introduce with a different methods and ways or so called art of coffee making. Thus due to the changes Malaysian had choices to select either local or international coffee companies. With regards to other researcher analysis to be differentiated with my research, some of it had elaborated as below comment; After Malaysia independence in 1957, throughout the 80s and 90s, kopitiam and local food stalls have expanded. The western café had entered Malaysia food and beverage started with Coffee Bean in 1996 and followed by Starbuck Coffee Company in the year of 1998. Even though the western café entered in local market, out kopitam started to boom late as cited from (Wilson and Khor, 2008). 4.1.4 Analysis in coffee culture effecting Malaysia 46
  • 47. Figure 14.0: Chart showing an analysis of coffee culture based on factors incurred Data collection indicated that economic play an important role in changing coffee culture to Malaysian, meanwhile geographical factor indicated 40% impacting, 30% demographic and political view only impacting in the scale of 10%. From the data collected it showed that my research through coffee changes of Malaysian behavior impacted due to the said reason. It is strongly tabulated that economic plays an important roles of the total behavior changes in coffee consumption throughout the years. Other factors also link to each other thus the concept of coffee acceptance and culture changes. Economic increases due to investment of others international companies in Malaysia, geographically look at the acceptance of coffee in several area follow to the marketing mix the 4 P’s, demographic based on location and political view of bringing local or international company to market coffee as a whole. My explanation for my research differentiating from others researcher also had commented as below; Since coffee become beverage it had been travelled between country and cross the world. Within the European acting colonizers, coffee plants have been spread all over America, Africa and Asia during the 19th century since the expansion of their power to these countries have found cheap labour was available and ready to exploit. The colonial powers do realized the importance and the high commercial potential of coffee and they funded large scale development of plantations all over the continents. As well as the Dutch brought coffee plants to Ceylon in 1699, while the English cultivated coffee in India at 1840. That is the earliest data that a coffee plantation in Malaysia ever recorded and was stated by (Ralph Neeraj, 1981). 4.1.5 Analysis factors contributing to Malaysian in coffee drinking trends 47
  • 48. Figure 15.0: Chart showing an analysis factors contributing to Malaysia drinking trends From the data collection indicates that product changes the coffee trends in 60% ratio, ambiance in 30%, and price in 20% and people in 10%. Most of the correspondent indicated that coffee branding affected them socially and Malaysian most of us follow to the trends. The tabulated data indicated that coffee able to change Malaysian behavior, the chart showed that trends impacted coffee branding socially. This is also followed other factors such as price a cup of coffee, people that works in the coffee shop, product offered and also environment and ambiance of the coffee shop. Time had changed the culture of coffee consumption whereby before coffee had been commercialized Malaysian only consumes coffee in normal coffee shop, mamak or kopitiam. However since international coffee company brands their products in Malaysia, the trends to enjoy it had different in several ways. Thus the concept, culture and coffee experience in Malaysia had changes Malaysian behavior. From my research and others researcher they also indicated as below to be studied and understand the concept of the changes such as; As stated by (Alvaraz and Gilsdorf, 2007), Starbuck has proven the valued of creating outstanding customer experiences, even across such as large retail network. It has managed to tie together all the necessary brand elements. Starbuck sells tangible product and has found a way to create an engaging environment that encourage customer to linger and conduct multiple transactions. 4.1 Summary 48
  • 49. From the collected data it represents a collective discussion of coffee consumptions effect human behavior in Malaysia. It had shown from the early beginning of coffee culture until present time. It is considering the culture added value in Malaysia from British occupation until present economic market. Throughout the years, coffees had been expanding and change the normal internal market to grow and it was an evolution from cultural biases. Early beginning of coffee acceptance can be summarizing from subject age matters, their profession. A habit of coffee drinking existed during early aged, in family, education and working background. The acceptance will enhance coffee drinker to change their preferences. Local or international coffee market had slowly increasing their numbers in Malaysia. Thus coffee lovers in Malaysia will be able to select their desired coffee, as many as their liking. Each individual in Malaysia have their own buying power to spend their money either to local coffee company or international coffee company. The concept of value of money had added value among Malaysian. They best coffee company will very much accepted and well regain their brand faster than other. This is because towards my research I found that Malaysian was keen to brands. The most favorite brands will be easily accepted and followed by others and finally accepted as trends. The trends also had change Malaysian coffee culture from traditional concept of drinking coffee and also coming from the international coffee market influence. It impacting Malaysian behavior slowly and it is based on several attributing factor that win the coffee consumptions awareness. Factors that attributing to changes of Malaysian behavior toward coffee consumption if based on economic, geographic, demographic and also branding, it also co-existing with the marketing mix concept which can be known as the 4 P’s, that is product, place, price and also promotion. The said factors act as an indicator toward Malaysian behavior in coffee consumptions. CHAPTER 5 49
  • 50. CONCLUSION AND FUTURE RESEARCH 5.0 Overview In chapter 5 for conclusion and future research study the data collected in each chapter will be summarized through discussion of consumer behavior in coffee consumption. The limitation of research the researcher might find and future research observation that can be prolonged further. 5.1 Discussion The data collected and analyzed from chapter 4 indicated that Malaysia behavior in coffee consumption changes due to the economy, product, price and trends. Different coffee brands cater and targeted for different target audience. For example, classic and traditional coffee shop is targeted to lower income community as such students and also non-professional. While for a high-ended coffee shop such as Coffee Bean and Starbucks are more targeted to the higher income customers. Pricing range play an important role too that affect the consumer behavior. From the research data and literature review, in Malaysia there is a lower priced coffee and also premium priced coffee while the product range is merely the same but for higher price coffee, they claimed that the coffee beans are imported and also have gone through a particular processes. Hence, this had become a trends and it is slowly accepted by Malaysians due to the different range of others products that is been offered. As a conclusion, Malaysian’s consumer’s behavior on coffee consumption is motivated by various reasons that affect their choices of getting a cup of coffee. 5.2 Limitations of Research In my research there are 2 limitations that I am facing that are divided into 2 sections which is the limitations of theory and limitations of methodology. 5.2.1 Limitations of theory The limitations of theory indicated into 2 platforms which is subjective norms and behavioral intention. Theoretically I have to allocate information’s that relates to my research and to show evidence as a proof of the subject matter and also look up for human behavior in coffee consumptions to justifies and strengthen my research topic. The justification as below to be explained in further details: • Subjective norms: looks at the influence of people in one's social environment on his behavioral intentions; the beliefs of people, weighted by the importance one attributes to each of 50
  • 51. their opinions, will influence one's behavioral intention for my research is to collect information’s of coffee lover behavior toward Malaysia. • Behavioral intention: a function of both attitudes toward a behavior and subjective norms toward that behavior, which has been found to predict actual behavior. Towards my research is to collect data about coffee consumption that lead to actual behavior. In addition to my research, there are a few limitations faced by the researcher throughout the process. One of the main limitations faced is the time constraint. The limitation of time given to gather information and to collect the data where there are too many data’s to be collected as to provide a more accurate answer for this research. Besides that, it is hard to do such an open survey in the coffee shop as the management does not provide the agreement to do so in their premise and the researcher have to collect the data quietly. On the other hand, the scope of this research is too narrow down. Most of the respondents for this research are mainly students while there is only a few of them are working consumers. The researcher have to find other solutions to gather the information required and collect the necessary data several period of time in a different days. 5.2.2 Limitations of methodology The researcher had selected a quantitative measure in the data collection methods and the limitations of methodology that the researcher found was the size of community that can be found in the designated place to distribute the questionnaires or in other words a sample size of populations. To be based on the period time given and durations of the data collections procedure. To allocate and find selective questions that relates to the research. Upon information collected researcher need to tabulate the finding and further explanation need to be summarized for further understanding of the research studies. The limitation of methodology that researcher faced is to gather the data in a constraint time. This is because researcher needs to find a suitable place to distribute the questionnaires. Other than that researcher also needs to observe the location when the questionnaires take place. In terms of the surrounding so that each participant will be able to produce a good answer, a correct and appropriate person to answered the data. The collection of questionnaires must be suitable to the participant that participate in researcher questionnaire, in other words a coffee lover or well mature person to understand the full questionnaires questions in order to answer it wisely. 5.3 Future Research 51