• Title/Summary/Keyword: coffee market

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Effects of Customer Satisfaction and Switching Costs on Customer Loyalty in a Coffee Chain Context (커피 전문점 고객 만족과 전환 비용이 고객 충성도에 미치는 영향)

  • Kim, Byoungsoo
    • The Journal of the Korea Contents Association
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    • v.15 no.2
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    • pp.433-443
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    • 2015
  • This study aims to analyze key antecedents of customer loyalty based on dedication-based and constraint-based mechanisms. Our framework provides a theoretical lens of how two distinctive mechanisms influence customer loyalty in a coffee chain context. In this regard, this study examines the effects of customer satisfaction and switching costs on customer loyalty in a coffee shop market. In order to test the proposed model, data collected from 263 university students were empirically tested by using partial least squares regression. The analysis results reveal that customer loyalty is jointly influenced by both a dedication-based and a constraint-based mechanisms. Coffee quality service quality, price and value, and service atmosphere significantly affect user satisfaction. Habit and brand image were found to be the key factors of forming perceived switching costs.

Study on the Effects of Shop Choice Properties on Brand Attitudes: Focus on Six Major Coffee Shop Brands (점포선택속성이 브랜드 태도에 미치는 영향에 관한 연구: 6개 메이저 브랜드 커피전문점을 중심으로)

  • Yi, Weon-Ho;Kim, Su-Ok;Lee, Sang-Youn;Youn, Myoung-Kil
    • Journal of Distribution Science
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    • v.10 no.3
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    • pp.51-61
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    • 2012
  • This study seeks to understand how the choice of a coffee shop is related to a customer's loyalty and which characteristics of a shop influence this choice. It considers large-sized coffee shops brands whose market scale has gradually grown. The users' choice of shop is determined by price, employee service, shop location, and shop atmosphere. The study investigated the effects of these four properties on the brand attitudes of coffee shops. The effects were found to vary depending on users' characteristics. The properties with the largest influence were shop atmosphere and shop location Therefore, the purpose of the study was to examine the properties that could help coffee shops get loyal customers, and the choice properties that could satisfy consumers' desires The study examined consumers' perceptions of shop properties at selection of coffee shop and the difference between perceptual difference and coffee brand in order to investigate customers' desires and needs and to suggest ways that could supply products and service. The research methodology consisted of two parts: normative and empirical research, which includes empirical analysis and statistical analysis. In this study, a statistical analysis of the empirical research was carried out. The study theoretically confirmed the shop choice properties by reviewing previous studies and performed an empirical analysis including cross tabulation based on secondary material. The findings were as follows: First, coffee shop choice properties varied by gender. Price advantage influenced the choice of both men and women; men preferred nearer coffee shops where they could buy coffee easily and more conveniently than women did. The atmosphere of the coffee shop had the greatest influence on both men and women, and shop atmosphere was thought to be the most important for age analysis. In the past, customers selected coffee shops solely to drink coffee. Now, they select the coffee shop according to its interior, menu variety, and atmosphere owing to improved quality and service of coffee shop brands. Second, the prices of the brands did not vary much because the coffee shops were similarly priced. The service was thought to be more important and to elevate service quality so that price and employee service and other properties did not have a great influence on shop choice. However, those working in the farming, forestry, fishery, and livestock industries were more concerned with the price than the shop atmosphere. College and graduate school students were also affected by inexpensive price. Third, shop choice properties varied depending on income. The shop location and shop atmosphere had a greater influence on shop choice. The customers in an income bracket of less than 2 million won selected low-price coffee shops more than those earning 6 million won or more. Therefore, price advantage had no relation with difference in income. The higher income group was not affected by employee service. Fourth, shop choice properties varied depending on place. For instance, customers at Ulsan were the most affected by the price, and the ones at Busan were the least affected. The shop location had the greatest influence among all of the properties. Among the places surveyed, Gwangju had the least influence. The alternate use of space in a coffee shop was thought to be important in all the cities under consideration. The customers at Ulsan were not affected by employee service, and they selected coffee shops according to quality and preference of shop atmosphere. Lastly, the price factor was found to be a little higher than other factors when customers frequently selected brands according to shop properties. Customers at Gwangju reacted to discounts more than those in other cities did, and the former gave less priority to the quality and taste of coffee. Brand preference varied depending on coffee shop location. Customers at Busan selected brands according to the coffee shop location, and those at Ulsan were not influenced by employee kindness and specialty. The implications of this study are that franchise coffee shop businesses should focus on customers rather than aggressive marketing strategies that increase the number of coffee shops. Thus, they should create an environment with a good atmosphere and set up coffee shops in places that customers have good access to. This study has some limitations. First, the respondents were concentrated in metropolitan areas. Secondary data showed that the number of respondents at Seoul was much more than that at Gyeonggi-do. Furthermore, the number of respondents at Gyeonggi-do was much more than those at the six major cities in the nation. Thus, the regional sample was not representative enough of the population. Second, respondents' ratio was used as a measurement scale to test the perception of shop choice properties and brand preference. The difficulties arose when examining the relation between these properties and brand preference, as well as when understanding the difference between groups. Therefore, future research should seek to address some of the shortcomings of this study: If the coffee shops are being expanded to local areas, then a questionnaire survey of consumers at small cities in local areas shall be conducted to collect primary material. In particular, variables of the questionnaire survey shall be measured using Likert scales in order to include perception on shop choice properties, brand preference, and repurchase. Therefore, correlation analysis, multi-regression, and ANOVA shall be used for empirical analysis and to investigate consumers' attitudes and behavior in detail.

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Analysis of Flavor Components of Coffee Beans in Polyethylene and Polypropylene Packaging Materials during Storage (원두커피 향미 성분의 폴리에틸렌과 폴리프로필렌 포장재에서의 저장 차이 분석)

  • Yu, Ha Kyoung;Lee, Seung Uk;Oh, Jae Young
    • KOREAN JOURNAL OF PACKAGING SCIENCE & TECHNOLOGY
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    • v.23 no.2
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    • pp.89-95
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    • 2017
  • Although the global coffee market is growing every year and the demand for coffee wrapping paper is increasing accordingly, research on the effect of PE material and PP material on the coffee aroma used in the sealant layer, which will directly contact the product, is lacking. In this study, we studied the change of aroma patterns and flavor materials by adding coffee to PP and PE pouches. In addition, we observed changes in aroma patterns depending on the temperature and the presence of the deoxidizer. As a result, it was found that the PP type packaging material was slightly better than the PE type packaging material, but the performance was hardly changed by the material. Rather, the change in the aroma pattern due to temperature was dominant rather than the material. It is ideal that refrigerated distribution ($4^{\circ}C$) is the best storage temperature and sales are done within a short period of time. Among the indicators, pyridine was the most suitable material to study and there are many data about pyridine. Therefore, it is expected that the results can be derived by using pyridine.

The Market Segmentation of Coffee Shops and the Difference Analysis of Consumer Behavior: A Case based on Caffe Bene (커피전문점의 시장세분화와 소비자행동 차이 분석 : 카페베네 사례를 중심으로)

  • Yu, Jong-Pil;Yoon, Nam-Soo
    • Journal of Distribution Science
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    • v.9 no.4
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    • pp.5-13
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    • 2011
  • This study provides analysis of the effectiveness of domestic marketing strategies of the Korean coffee shop "Caffe Bene". It bases its evaluation on statistical outputs of 'choice attributes,' "market segmentation," demographic characteristics," and "satisfaction differences." The results are summarized in four points. First, five choice attributes were extracted from factor analysis: price, atmosphere, comfort, taste, and location; these are related to coffee shop selection behavior. Based on these five factors, cluster analysis was conducted, with statistical results classifying customers into three major groups: atmosphere oriented; comfort oriented; and taste oriented. Second, discriminant analysis tested cluster analysis and showed two discriminant functions: location and atmosphere. Third, cross-tabulation analysis based on demographic characteristics showed distinctive demographic characteristics within the three groups. Atmosphere oriented group, early-20s, as women of all ages was found to be 'walking down the street 'and 'through acquaintances' in many cases, as the cognitive path, and mostly found the store through 'outdoor advertising', and 'introduction'. Comfort oriented group was mainly women who are students in their early twenties or professionals, and appeared as a group to be very loyal because of high recommendation to other customers compared to other groups. Taste oriented group, unlike the other group, was mainly late-20s' college graduates, and was confirmed, as low loyalty, with lower recommendation activity. Fourth, to analyze satisfaction differences, one-way ANOVA was conducted. It shows that groups which show high satisfaction in the five main factors also show high menu satisfaction and high overall satisfaction. This results show that segmented marketing strategies are necessary because customers are considering price, atmosphere, comfort, taste, location when they choose coffee shop and demographics show different attributes based on segmented groups. For example, atmosphere oriented group is satisfied with shop interior and comfort while dissatisfied with price because most of the customers in this group are early 20s and do not have great financial capability. Thus, price discounting marketing strategies based on individual situations through CRM system is critical. Comfort oriented group shows high satisfaction level about location and shop comfort. Also, in this group, there are many early 20s female customers, students, and self-employed people. This group customers show high word of mouth tendency, hence providing positive brand image to the customers would be important. In case of taste oriented group, while the scores of taste and location are high, word of mouth score is low. This group is mainly composed of educated and professional many late 20s customers, therefore, menu differentiation, increasing quality of coffee taste and price discrimination is critical to increase customers' satisfaction. However, it is hard to generalize the results of study to other coffee shop brand, because this study have researched only one domestic coffee shop, Caffe Bene. Thus if future study expand the scope of locations, brands, and occupations, the results of the study would provide more generalizable results. Finally, research of customer satisfactions of menu, trust, loyalty, and switching cost would be critical in the future study.

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How the domestic industry of Costa Rica became more competitive in the US market. Antecedents and Trends

  • Pena-Vinces, Jesus C.;Castro, Segundo;Espasandin-Bustelo, Francisco
    • Journal of Distribution Science
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    • v.11 no.4
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    • pp.5-11
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    • 2013
  • Purpose - The aim of this work is to study the reorientation that the export industrial sectors in Costa Rica have experienced during the last 20 years. Research design, data, methodology - The study employs the Cluster Analysis with the export data (20 years of cut-off period) from Costa Rica to the U.S-market. To make the predictions, the technique of the time series was used, with official data (from 2001 to 2010) from the U.S. Department of Commerce and the U.S. International Trade Commission. Results - The Cluster Analysis, show how the economic sectors of traditional products exports of Costa Rica have progressively become in exporters of non-traditional products, meanwhile,the time series confirms that this trend will continue, at least during the next five years. Conclusions - The industry of traditional products exports of Costa Rica (dressmaking, vegetables, coffee, mate, species, etc.) will progressively become in exporters of non- traditional products with a high-tech component (i.e., mechanical equipment and devices, electronic devices and medical equipment),as a consequence of the Chinese (Costa Rica's main competitor) economy's presence in the Organization for Economic Co-operation and Development (OCDE). This fact has enabled the potential improvement of Costa Rica's international competitiveness in the U.S. market.

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Application of a Hybrid System of Probabilistic Neural Networks and Artificial Bee Colony Algorithm for Prediction of Brand Share in the Market

  • Shahrabi, Jamal;Khameneh, Sara Mottaghi
    • Industrial Engineering and Management Systems
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    • v.15 no.4
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    • pp.324-334
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    • 2016
  • Manufacturers and retailers are interested in how prices, promotions, discounts and other marketing variables can influence the sales and shares of the products that they produce or sell. Therefore, many models have been developed to predict the brand share. Since the customer choice models are usually used to predict the market share, here we use hybrid model of Probabilistic Neural Network and Artificial Bee colony Algorithm (PNN-ABC) that we have introduced to model consumer choice to predict brand share. The evaluation process is carried out using the same data set that we have used for modeling individual consumer choices in a retail coffee market. Then, to show good performance of this model we compare it with Artificial Neural Network with one hidden layer, Artificial Neural Network with two hidden layer, Artificial Neural Network trained with genetic algorithms (ANN-GA), and Probabilistic Neural Network. The evaluated results show that the offered model is outperforms better than other previous models, so it can be use as an effective tool for modeling consumer choice and predicting market share.

Trend analysis of mobile gift certificate market (모바일 상품권 시장 동향 분석)

  • Bae, Yu-Mi;Jung, Sung-Jae;Lee, Kwang-Yong;Jang, Rae-Young;Lee, Jae-Ung
    • Proceedings of the Korean Institute of Information and Commucation Sciences Conference
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    • 2016.05a
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    • pp.189-192
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    • 2016
  • Gift card certificate law was abolished in February 1999. If the stamp duty is paid gift certificate can be issued without registration or authorization by everyone. Recently, the use of mobile devices and mobile apps became widespread as explosive increase in mobile card market. Due to the advantage of being easily available this gift, Including foods such as cakes and coffee are released in various fields, such as mobile vouchers surrogate operation, matchmaking services. The future of the voucher market is considered to be reorganized into mobile gift certificate from vouchers of paper.

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Growth of food industry from change of consumer's living environment: HMR market growth factor (소비자들의 생활환경 변화에 따른 식품 시장의 성장: 가정간편식(HMR) 시장 성장 요인 분석)

  • Lee, Doo-Young
    • Food Science and Industry
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    • v.50 no.3
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    • pp.33-38
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    • 2017
  • One noticeable thing about the recently opened 'Starfield Hanam' and 'Hyundai Department Store (Pangyo)' is consumer's interest and positive response to their hosted food brands ranging from restaurants, dessert cafes and coffee shops. Department store and shopping complex, so-called aggregation of lifestyle are making the most out of food brands as a differentiation strategy and consumer's interest on it act as a barometer for current consumption trend. Along with the high interest on food market, changes in lifestyle, such as increasing ratio of two or less households, advent of multiple communication channels as SNS, deluge of information and gradually developing individualism, are creating needs for convenient but high quality eating culture. This need contributed in transforming the product family which was once famous as 'Instant Food' into a 'Home Meal Replacement (HMR)'. Since local food companies are striving to keep pace with the trend and actively penetrating HMR market, regardless of long-term recession, the Korean domestic food market is steadily growing with a bright future.

An Analysis on the Trade Competition of Major Industries Following the Completion of Korea-Central America FTA (한-중미 FTA 발효에 따른 주요 산업 수출경쟁력 분석에 관한 연구)

  • Kim, Jeong-Hwan;Ahn, Tae-Kun
    • Journal of Korea Port Economic Association
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    • v.36 no.4
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    • pp.107-120
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    • 2020
  • This study analyzed the competitiveness of major export industries following the FTA between Korea and five Central American countries. Findings revealed that Korea mainly exports industrial products such as ships, automobiles and parts, steel, and electronic devices, and it imports raw materials and agricultural products such as coffee and copper, indicating a complementary trade structure. Similarly, the trade specialization index analysis revealed that Korea specialized in exporting industrial products such as ships, automobiles, steel, and machinery, and in importing primary products such as copper and coffee. Products such as ships, steel, and machinery, which are major export items to Central America, are expected to further strengthen their competitiveness due to tariff cuts. In addition, it is expected that the demand for medicines and medical supplies could increase in future due to the COVID-19 pandemic. This study attempted to present implications for establishing export strategies by analyzing the competitiveness of Korea's major export industries in the Central American market, in accordance with the Korean-Central American FTA. These findings could be used as basic data for future entry into South America as a bridgehead in the Central American market.

Evaluation of How the Motivation the Use of Specialized Coffee Branches Brand Attitude, Satisfaction and Loyalty (커피 전문점 이용 동기가 브랜드 태도와 만족도 및 충성도에 미치는 영향)

  • Kim, Tae-Hee;Yoo, Hee-Joo;Lee, In-Ok
    • Journal of the East Asian Society of Dietary Life
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    • v.20 no.1
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    • pp.149-158
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    • 2010
  • The domestic specialized coffee branch market is growing both in size and sales, and the competition between different brands is increasing. The goal of this study was to divide the customer's consumption motivations into utility usage motivation, hedonic usage motivation, and ostentation usage motivation and to determine how each motivation influences the attitude, satisfaction and loyalty toward the brand. The results can be summarized as follows. (1) Hedonic motivation and ostentation motivation with the exception of utility motivation were shown to have an effect on brand attitude. (2) Brand attitude was shown to have an effect on satisfaction and loyalty. (3) Satisfaction had an effect on loyalty. However, if the satisfaction was low, the intentions for subsequent visits and positive oral transmissions decrease. The result of this study showed that establishing positive brand attitude, satisfaction and loyalty to customers with pleasure and ostentation motivations is effective. Moreover, marketing activities such as cultural and playful events should be emphasized for customers with hedonic motivations, while environments with better atmosphere and careful service should be provided to customers with ostentation motivation.