impact of coffee quality towards customer satisfaction

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IMPACT OF COFFEE QUALITY TOWARDS CUSTOMER SATISFACTION CASE STUDY: STARBUCKS, SUMMARECON MALL SERPONG,

TANGERANG

By

ANDRYANI CENDANA 13312005

BACHELOR’S DEGREE in

BUSINESS ADMINISTRATION – HOTEL AND TOURISM MANAGEMENT CONCENTRATION

FACULTY OF BUSINESS ADMINISTRATION & HUMANITIES

SWISS GERMAN UNIVERSITY EduTown BSD City

Tangerang 15339 Indonesia

AUGUST 2016

Revision After Thesis Defense on July 21

^st

2016

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Andryani Cendana

STATEMENT BYTHE AUTHOR

I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.

Andryani Cendana

____________________________________________

Student Date

Approved by:

Vishnuvardhana S. Soeprapto BA. MA.

____________________________________________

Thesis Advisor Date

Eric J. Nasution, MBA, MA, PhD.

____________________________________________

Dean of Business Administration and Humanities Date

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THE IMPACT OF COFFEE QUALITY TOWARDS CUSTOMER SATISAFACTION

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CASE STUDY: STARBUCKS SUMMARECON MALL SERPONG, TANGERANG

Andryani Cendana

ABSTRACT

THE IMPACT OF COFFEE QUALITY TOWARDS CUSTOMER SATISFACTION By

Andryani Cendana

Vishnuvardhana S. Soeprapto BA. MA.

SWISS GERMAN UNIVERISTY

Coffee has become an everyday drink for people, for people who love to drink coffee;

they can easily tell whether the coffee is in good quality by the aroma, taste and temperature. The purpose of this research was to determine the significant impact between the qualities of coffee towards customer satisfaction in Starbucks coffee shop. This research was done with quantitative method where the data was primarily collected through distributing questionnaires and interviewing the staffs of Starbucks.

The data collecting process involves 100 respondents who reside around Tangerang Area or have been to Starbucks Summarecon Mall Serpong. Simple Linear Regression analysis in SPSS was used to analyze the data. The result of this research shows that Coffee Quality does have a significant impact towards Customer Satisfaction, as the satisfaction level was high as 79%. Based on the result, it can be concluded that the better quality the coffee is, the higher satisfaction level will be achieved.

Keywords: Coffee, Coffee Beans, Customer Satisfaction, Starbuck^{s Coffee,}

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Andryani Cendana

© Copyright 2016 by Andryani Cendana

All rights reserved

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Andryani Cendana

DEDICATION

I dedicate this thesis to my parents and my thesis advisor, Mr. Vishnuvardhana S.

Soeprapto BA. MA., for without them the completion of this thesis will be impossible. This thesis is also dedicated to Swiss German University and Starbucks

coffee shop in Indonesia.

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Andryani Cendana

ACKNOWLEDGEMENTS

Writing this thesis has been a rewarding and challenging journey and nonetheless, in some moments the work was disheartening. Therefore, I would like to express my greatest gratitude for these amazing people who has supported, guided, and encouraged me during the thesis writing process.

To my advisor, Mr. Vishnuvardhana S. Soeprapto BA. MA., his motivation, patience, advices, and his valuable guidance during the hard 4 months of thesis work.

To my parents, for their endless encouragement and prayers. Also to my little brother who is always there to lighten up my days.

To Chris Hartanto, for keeping on encouraging me, and cheering me up during the hard times, and for being my mood booster from the beginning until the end of thesis work.

To my friends Jessica Novia, Wilson Kung, who always be the source of my joy no matter where or when. Always there when I needed them the most, whether during happy or difficult times. Thank you for being an awesome and supportive friends.

To my friends Natania, Omar Praditya, Melissa Berlin, who were there during my difficult times when doing my thesis. I really appreciate all the help that you guys have given me.

To all my friends in SGU, especially HTM Students 2012. Thank you for the amazing 4 years, for all the hard times that we went through together and all the good times that will never be forgotten.

To my English lecturer, Mr. Stephen Rohrlach, who helped me to check my work

regardless of their tight schedule. Thank you for the time and the guidance.

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Andryani Cendana

To all SGU staffs and lecturers. Thank you for the guidance during my study in SGU.

Mrs. Munawaroh, Mr. Tommy Saroso, Mrs. Dea Prasetyawati, Ms. Gemala, Dr.

Sienly Veronica, Mr. Robert La Are, Mr. Yudhistira Pratama, Mr. Oqke Prawira, Mr.

Isna. All of your hardworks and dedications will always be a treasure for me.

Last but not least, I would also like to express gratitude for all of those who have not

been mentioned and provided me all the possibility to complete this my final

assignment. Thank you for the support and assistance.

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Andryani Cendana

Page

ABSTRACT ... 3

DEDICATION ... 5

1. INTRODUCTION ... 13

1.1.Background ... 13

1.2 Research Problem ... 14

1.3 Research Purpose ... 14

1.4 Research Questions ... 15

1.5 Significance of Study ... 15

1.6 Scope and Limitations ... 15

1.7 Thesis Structure ... 16

2. LITERATURE REVIEW ... 17

2.1 Framework of Thinking ... 17

2.2.1 Product Definition ... 18

2.2.2 Quality Definition ... 19

2.2.3 Dimension of Quality ... 20

2.2.4 Definition of Product Quality ... 21

2.2.5 Dimension of Product Quality ... 22

2.3 Coffee ... 23

2.3.1 A Brief History of Coffee ... 23

2.3.2 Types of Coffee ... 24

2.3.3 Quality Coffee ... 25

2.4 Customer Satisfaction ... 26

2.4.1 Measuring Customer Satisfaction ... 27

2.4.2 Dimensions of Customer Satisfaction ... 28

2.5 Customer Loyalty ... 29

2.6 Previous Studies ... 30

2.7 Difference with Previous Research ... 33

2.8 Research Model ... 34

2.9 Hypothesis ... 34

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Andryani Cendana

3. RESEARCH METHOD ... 35

3.1 Research Process ... 35

3.2 Type of Research ... 36

3.3 Type of Data ... 37

3.4 Operational Variable ... 37

3.5 Data Collection ... 38

3.6 Question Design ... 39

3.7 Populations and Sampling Method ... 40

3.7.1 Population ... 40

3.7.2 Research Object ... 40

3.7.3 Sample ... 40

3.7.4 Sampling Method ... 42

3.8 Data Sources and Data Collection Technique ... 42

3.8.1 Pre – Testing ... 42

3.8.2 Post – Testing ... 42

3.9 Validity and Reliability ... 43

3.9.1 Validity ... 43

3.9.2 Reliability ... 45

3.10 Simple Regression Analysis (Partial) ... 46

3.10.1 Normality Test ... 47

3.10.2 Heteroscedasticity Test ... 48

3.11 Data Analysis ... 49

4. RESULTS AND DISCUSSIONS ... 50

4.1.1 Company Profile ... 50

4.1.2 The Starbucks Mission Statement and Value ... 50

4.1.3 Product of Starbucks ... 51

4.1.4 The Types of Coffee Beans ... 53

4.1.5 Product Criteria of the Starbucks Coffee ... 54

4.2 Respondent Profile ... 57

4.2.1 Gender ... 57

4.2.2 Age ... 58

4.2.3 Status ... 59

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4.2.4 Last Education ... 60

4.2.5 Occupation ... 61

4.2.6 Income Per Month ... 62

4.2.7 Number of visits to Starbucks Per Month ... 63

4.3 Validity and Reliability ... 64

4.3.1 Coffee Quality Validity (Pre-Testing) ... 64

4.3.2 Customer Satisfaction Validity (Pre-Testing) ... 67

4.3.3 Reliability (Pre-Testing) ... 68

4.3.4 Coffee Quality Validity (Post-Testing) ... 68

4.3.5 Customer Satisfaction Validity (Post-Testing) ... 72

4.3.6 Reliability (Post-Testing) ... 73

4.4 Data Analysis ... 73

4.4.1 Classical Assumption Test ... 73

4.4.2 Normality Test ... 74

4.4.3 Heteroscedasticity Test ... 75

4.5 T - test ... 76

4.6 Discussion ... 77

5. CONCLUSIONS AND RECCOMENDATIONS ... 78

5.1 Conclusion ... 78

5.2 Recommendation ... 79

5.2.1 Recommendation for Starbucks ... 79

5.2.2 Recommendation for Future Researchers ... 79

GLOSSARY ... 80

REFERENCES ... 81

APPENDICES ... 83

Appendix 1 ... 83

Appendix 2 ... 87

Appendix 3 ... 90

Appendix 4 ... 93

CURRICULUM VITAE ... 98

impact of coffee quality towards customer satisfaction