FACTORS THAT ENCOURAGE THE LONG-TERM SUCCESS OF FRESH-BREW COFFEE SHOPS IN BANGKOK. was submitted to the College of Management, Mahidol University for the degree of Master in Management. This research will investigate the factors that encourage the long-term success of small freshly brewed coffee shops in Bangkok to help the owners to compete with the big brand coffee shops, and to be able to create the effective marketing strategy. This has caused a rapid rise and opening of many new freshly brewed coffee shops in Bangkok.
Although well-known coffee shops with attractive decoration become popular in the beginning, they may not grow properly in the long run. However, there are still some freshly prepared coffee shops that are successful and constantly growing. This study explores how independent freshly brewed coffee shops can compete with other coffee shops, even big name brands like Starbuck or True coffee, and be successful in the long term.
The strategy to be successful and able to compete in the highly competitive market for independent fresh coffee shop owners in Bangkok. Factors that encourage the long-term success of newly established independent coffee shops. Learn from newly established independent coffee shops that have been open for more than three years and are currently growing in profit.
The final report will include the strategy that the independent, freshly brewed coffee shops use to compete in the highly competitive market and the factors that promote the successful coffee shop in the long term.
LITERATURE REVIEW
Customer Value and Customer Satisfaction
Consumer makes their purchase decision based on their perception of the value they will receive in exchange for their money. Customer value is a measure of the difference between what the consumer gains from using, owning or experiencing the purchase and the cost of acquiring it. According to Marketing Management, Kotler and Keller (2011), "Customer Perceived Value" (CPV) consists of two elements: customer benefit and cost.
Total customer benefit is the perceived monetary value of the bundle of economic, functional, and psychological benefits that customers expect from a given market offering because of the product, service, people, and image. Total customer cost is the assumed bundle of costs that customers expect in evaluating, acquiring, using, and disposing of a given market offering, including monetary, time, energy, and psychological costs.
Repurchase Intention
- The relation with customer satisfaction
- The relation with Brand
- The relation with store atmosphere
But service quality and corporate image itself have a stronger direct relationship with repurchase intention than customer satisfaction. However, in the other context, customer satisfaction has no necessary effect on repurchase intention. According to Hume (2011), customer satisfaction is not related to repurchase intention of museums in Australia.
The factors influencing repurchase intention are service quality and customer perceived value for time and money, although both factors are also related to customer satisfaction. In car insurance and personal pension service, the research found that brand preference greatly influences repurchase intention. According to Hellier, Geursen, Carr, Rickard (2003), the repurchase intention has a strong and direct relationship with the Brand preference, which stems from customer satisfaction, perceived value.
From this model, the initial factor comes from the perceived quality of the product and then has a significant effect on perceived value and equity, which will measure customer satisfaction. According to Repurchase intentions in a store – research on the impact of colors, Anja, Jasmina, Maja (2014) who investigate the effect of color influence customer loyalty in the grocery store in the context of Southeastern European culture through online research . The key finding is that warm and neutral colors can boost repurchase intentions by increasing time and money spent in-store.
Hypothesis and Framework
Repurchase Intention
METHODOLOGY
Research Design
Data Collection Methodology
- Population
- Sampling
- Data Collection
And also find out how the target interacts with the cafe in online and social networks. This part will ask respondents for their opinion on many aspects and will be measured on a Likert scale to observe the level of agreement or disagreement. The questions will cover many variables: Brand Distinctiveness, Brand Sustainability, Brand Reputation in Online Media, Price, Décor and Atmosphere, Location, Service, Product Uniqueness and Product Quality.
The demographic question collects general information about the respondents, such as age, education level, occupation, income, type of accommodation, marital status and activity interested. To find out the relationship between the demographics, behaviors and variables that drive the long-term success of independent coffee shops. The online questionnaire will be shared through a social network to find out the target, and will also be sent to the coffee shops in Bangkok to reach the target directly.
Data Analysis
FINDINGS
- Factors influencing the repurchase intention
- Consumer behavior
- Association among behavior and demographic variables
- Relation between opinion and demographic
Using the linear regression analysis, the coffee shop's repurchase intention is explained by two important factors: brand preference and customer satisfaction. This study analyzes brand preference variables separately from customer satisfaction by using the brand preference question “Brand makes me revisit the coffee shop” as the dependent variable. First, we analyze each within-group variable according to the initial framework to examine the importance of each variable as independent variables in explaining “Brand makes me go to the coffee shop again.”
For example, others' ratings, social media popularity, friends' recommendations, and sharing/checking in to this cafe are analyzed as independent variables with the brand preference question as the dependent variable. Finally, to analyze the repurchase intention, we combine the customer satisfaction variables by calculating the average of all the variables in their category (16 variables), and use the brand preference question “The brand makes me visit the cafe again” as the brand preference variables. . Both the brand preference variable and the customer satisfaction variable are analyzed as independent variables, analyzing with the dependent variable the question “If I am satisfied with this coffee shop, I will visit it again”, so it can summarize which variables affect the intention to repurchase in a coffee shop.
The result shows that both customer satisfaction and brand preference are significant for the repurchase intention of the independent coffee shops in Bangkok. The brand reputation in online media is the only factor that makes the brand preference significant for the repurchase intention. For service, both the good quality and the friendliness of the waiter or owner are significant for the service factor to be applied to the coffee shop due to the high significance for the customer satisfaction.
For the uniqueness of the product, this factor focuses only on the unique taste of the coffee, excluding the uniqueness of ingredients or coffee process. From the descriptive analysis, the result shows that most of the respondents visit the independent coffee shop because they want to drink and sit and have a good cup of coffee. In addition, some of the respondents visit the coffee shop to wait for friends and use as a meeting place for work.
Then they consider the location of the coffee shop, such as the ease of travel and the nearest shop at that time. In social media, 38.5% of respondents follow the coffee shop on at least one social platform such as Facebook, Twitter, Instagram or website. They interact by liking their page to follow the updated news, entering the coffee shop on Facebook and posting their photo.
Respondents aged 26 – 30 will visit the coffee shop again if they like its brand more than other age groups. But the lifestyle of the customers in the coffee shop does not influence them to visit the coffee shop again. p = .004) - Respondents who live in a house will visit the coffee shop again because.
CONCLUSIONS
Conclusion
People between the ages of 26 and 30 have the highest potential to revisit a cafe because they like its brand and its design and decor.
Recommendations
Limitations and suggestions for future research
Moreover, most coffee shops do not only sell coffee, so it would be better if the research could further explore the bakery, smoothie or dishes that can increase the repurchase intention and strengthen the success of the coffee shop.
APPENDICES
APPENDIX A
Questionnaire
Convenience to travel This shop is trendy (talk of the town) Popular in social media Enjoy a great coffee. Do you follow the coffee shop in social media such as website, Facebook, Instagram, Twitter. I visit this coffee shop again because I like its customer lifestyle (like worker, group of friends, teenager, freelancer).
