1

CONSUMERS’ PERCEPTION ABOUT COFFEE BARS

Shakshi Jindal (112D17)

Ch.Sai Praveen (112D23)
AbhinavBhatnagar (112D25)
SumitNandal (112D27)
UtkarshJaiswal (112D41)

MBA CLASS OF 2014

AMITY BUSINESS SCHOOL

AMITY UNIVERSITY UTTAR PRADESH

SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA

2013

Submitted to:

Prof. Dr.S . K. Laroiya

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DECLARATION

Title of Project Report:Consumers’ perception about Coffee bars

We declare -

(a) That the work presented for assessment in this Report is our own, that it has not been
previously presented for another assessment and that my debts (for words, data, arguments and
ideas) have been appropriately acknowledged.

(b) That the work conforms to the guidelines for presentation and style set out in the relevant
documentation.

Date : ……………
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C E RT I FI CA T E

T h i s i s t o hereby certify that Shakshi Jindal, Ch.Sai Praveen, AbhinavBhatnagar,

SumitNandal, UtkarshJaiswal students of Masters of Business Administration at Amity
Business School; Amity University Uttar Pradesh have completed the Project Report on
“Consumers perception abountCoffee bars” under my guidance.

Prof. Dr. S. K. Laroiya

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Acknowledgement

We take this opportunity to express our profound gratitude and deep regards to our
guide Professor Dr. S. K. Laroiya for his exemplary guidance, monitoring and
constant encouragement throughout the course of this research project. The
blessings, help and guidance given by him from time to time shall carry us a long
way in the journey of life on which we are about to embark..

And finally, we are thankful to Almighty, our parents and colleagues for their
valuable advice and constant encouragement without which this project would not
have been possible.
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LETTER OF TRANSMITTAL

Prof. S. K. Laroiya

Marketing Research

March 20th, 2013

SUB -Marketing Research Project on Consumers’ perception about coffee bars

Respected Sir,

We have the pleasure of submitting the final Report to examine consumer

perception about different fast food outlets. The Group has studied the ground
realities on ways consumers perceive fast food, advertisements and various brands’
popularity. We have also suggested some recommendations to increase sales,
advertisement recall and promotional strategy effectiveness.

We thank you for entrusting us with this responsibility.

Yours sincerely,

Shakshi Jindal

Ch.Sai Praveen

AbhinavBhatnagar

SumitNandal

UtkarshJaiswal
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Table of Contents
S. No. Topic Pg. No.

1 Introduction 7

2 Objective of the research 8

3 Research Methodology 9

3.1 Research Design 10

3.2 Sample Frame 11

3.3 Sample size 11

4 Data analysis and interpretation

4.1 Descriptive Analysis 12

4.2 Regression 34

4.3 Independent t-test 37

4.4 Cross-tabulation 38

4.5 Perceptual Mapping 44

5.1 Conclusion 45

5.2 Limitations 46

5.3 Annexure 48
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Introduction

Coffee shops are being built at a phenomenal rate in India. Coffee was a prime reason
before for people to come to coffee houses. Other factors these days affect the footfall more
other than just quality of coffee. Coffee shop customers, by nature, are looking for something
special — that’s why they are willing to pay so much for a cup of coffee! The environmental
experience and aesthetics is nowadays a major constituent in the way customers perceive about a
coffee shop. The coffee will get people to come to a place but the environment will cause them
to stay there. India has emerged as one of the favored nations for coffee shops popularly termed
as Cafes. The coffee chains market in India has witnessed a tremendous growth so far and is
expected to grow at a high pace during 2010-16.

Coffee shops are frequented by both the young and old, which makes understanding the
local market demographics is all the more important. The service philosophy and the physical
environment need to be critically analyzed by national and international chains other than just
premium coffee. In order to hold the clientele and maintain economic criteria the coffee outlets
need a USP these days i.e. a unique selling proposition like offering quick service, providing
loyalty discounts etc. Therefore in order to enhance the coffee culture with the Indian middle
class consumers who are ready to spend more and be a part of global lifestyle and culture, coffee
houses in the country are on an expansion spree.

From small-sized coffee houses to classy coffee lounges leading coffee retailers such as
Cafe Coffee Day, Barista and Costa Coffee have all been fighting hard to attract India's growing
middle class. The entry of coffee chains like Starbucks in India will change the outlook of the
Indian coffee market. Even before the coffee chain revolution, coffee had a strong presence in
South Indian homes, with filter coffee. Also before the market entry of Starbucks the various
consumption patterns and repeated purchase patterns were studied showing that there is high
growth in coffee culture in India.
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Objective of Research

To provide a clear insight about the customer perception we will have following points as our
major objectives for the analysis –

 To estimate importance of various factors affecting the choice of coffee outlets by Indian
consumers. To study the spending pattern of people from various age group’s income
groups and gender on coffee houses.
 To find out potential of the coffee house market in India and customer perception towards
brand loyalty and entrance of new coffee houses in India.
 To analyze effect of age , income and profession and education on the buying decision.
 Identify the parameters that play a major role in a consumer’s selection of international
chain coffee bars.
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Research Methodology

Research refers to the search for knowledge. It means re- searching and forming a
conclusion about an issue under study. A Research is concerned with converting the problem
statement into a testing project. The best design depends on the research questions.

Thus research methodology is a scientific and systematic method of searching for pertinent
knowledge on a specific subject. It is an art of scientific investigation. It is an academic activity
and comprises of the following steps:

 Defining and redefining problems

 Formulating hypothesis or suggested solutions
 Collecting, organizing and evaluating data
 Making deductions and reaching on to conclusions
 Carefully testing the findings and conclusions to determine whether they fit the
formulating hypothesis
 Accepting or rejecting the formulated hypothesis based on the conclusions
 Providing a significantly confident solution for the pre-defined problem stated above.

Research is thus an original contribution and an addition to the existing stock of knowledge
to ensure its advancement and application to problem solving. There are various methods and
ways in which research can be conducted and are referred to as the research methodology. Thus,
Research methodology is the process used to collect information and data for the purpose of
making business decisions. It may include publication research, interviews, observations,
experiments, surveys and other research techniques. It may also include both present and
historical information. It is used to give a clear cut idea as to what is being carried out in the
research. It starts right from the selection of the topic and extends up to execution and finally
recommendations and conclusions from the final research.
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Research Design

A research design is a detailed blue print used to guide a research study towards its
objectives. It’s a series of decisions taken together comprising of a master plan or a model for the
conduct of a research on consonance with the research objectives. The research design has been
considered a "blueprint" for research, dealing with at least four problems: what questions to
study, what data are relevant, what data to collect, and how to analyze the results.It details the
procedures necessary for obtaining the information needed to structure or solve the marketing
research problems.

A research design is a master plan which specifies the steps and procedures for collecting
and analyzing the needed information. The choice of a research design largely depends on the
objectives of the research and how much is known about the problem and these objectives prior
to the actual conduct of the research by the researcher. The overall research design for any
particular project may include one or more types of research designs as part(s) of it.

Traditionally there are three types of research designs namely exploratory research design,
descriptive research designs and causal research designs.

 Exploratory Research Design: It is an unstructured and informal research that is

undertaken to gain background information about the general nature of the research
problem under consideration. It is conducted when the researcher does not have sufficient
knowledge about the problem and needs additional, new or recent information. The
researcher knows very little about consumer reaction to market stimuli to permit the
drawing of a sound hypothesis. This type of research design is very flexible and versatile.

 Descriptive Research Design: It is a more structured, pre-planned and formal research

in which information is clearly defined and there is prior formulation of specific
hypothesis. It is undertaken to provide answers to questions of who, what, where, when
and how but not why and these studies collect data for a definite purpose. It does not
show a direct cause and effect between the variables under study. It can be of two types:
cross sectional studies, which measure a unit from the sample at only one point in time
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(e.g. Sample surveys), and, longitudinal studies, which repeatedly draw sample units of a
population over time.

 Causal Research Design: This type of research design is most appropriate when it is
necessary to show that one variable causes or determines the values of the other
variables. It includes understanding a problem in terms of conditional statements of the
form “If X, then Y.”

The research design adopted in this market research project is a mix of both exploratory and
descriptive research designs. The exploratory research was conducted by use of exploratory
techniques like brainstorming to generate a number of possible issues faced by consumers while
selection of coffee houses and factors that affect consumer’s attitude in buying behavior from
national and international chains.Descriptive research was adopted to describe the characteristic
like attitude, perception, awareness levels and buying behavior of relevant groups in the sample.

Sample Frame-

Respondents from Delhi/NCR and Gurgaon sector have given their response. Respondents from
different states in India have given their responses as coffee houses are present almost every state
and metropolitan cities. Many Respondents have different perspective so a larger demography is
covered instead of a particular sector and the major objective of the research was to identify the
consumer perspective which gives us much clear picture of their attitude towards coffee houses.
Consumers which have been to major coffee houses present in Indian Market have given their
response. All the respondents were age of more than eighteen years. Respondents have given
their responses through different modes. Most of them filled the response through interview,
over the mail, telephonic interview for respondents in different states and online survey method.
Moreover the data has been collected through different modes and compiled together in order to
represent it graphically and representation is done through different pie charts and tables using
different statistical tools.

Sample Size: 331 respondents interviewed in person.

Sampling Methodology: Convenience Sampling and Judgment Sampling was used

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Data Analysis and interpretation

Descriptive Analysis

Gender

Our sample of 331 respondents consisted of 51.7% male and 48.3% female

Gender
Frequenc Percent Valid Cumulative
y Percent Percent
male 171 51.7 51.7 51.7
Valid female 160 48.3 48.3 100.0
Total 331 100.0 100.0
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Age

Around 80% of our sample is in age bracket of 21-32 years which is our target population.

age
Frequenc Percent Valid Cumulative
y Percent Percent
17-20 49 14.8 14.8 14.8
21-26 220 66.5 66.5 81.3
27-32 51 15.4 15.4 96.7
Valid
33 and
11 3.3 3.3 100.0
above
Total 331 100.0 100.0
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Annual Household Income

For our research, we have got a fair distribution of respondents in different income groups.

annual household income

Frequency Percent Valid Cumulative
Percent Percent
under 3 lakhs 43 13.0 13.1 13.1
3-5lakhs 93 28.1 28.4 41.5
5-10lakhs 105 31.7 32.0 73.5
Valid
10lakhs and
87 26.3 26.5 100.0
above
Total 328 99.1 100.0
Missing System 3 .9
Total 331 100.0
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Education
For our research, we have got a well-educated sample with majority of people pursuing atleast
graduation.

education
Frequency Percent Valid Cumulative
Percent Percent
high school 11 3.3 3.3 3.3
graduation 151 45.6 45.6 48.9
post-
Valid 162 48.9 48.9 97.9
graduation
higher studies 7 2.1 2.1 100.0
Total 331 100.0 100.0
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Occupation
Most of the respondents for our research are students.

occupation
Frequency Percent Valid Cumulative
Percent Percent
student 209 63.1 63.1 63.1
service 55 16.6 16.6 79.8
business 25 7.6 7.6 87.3
Valid
profession
42 12.7 12.7 100.0
al
Total 331 100.0 100.0
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Spending Leisure time

Majority of our respondents said that they wanted to go out with friends to spend the leisure
time.

How do you spend your leisure time

Frequency Percent Valid Percent Cumulative
Percent
sports 39 11.8 11.8 11.8
surfing net 80 24.2 24.2 36.0
T.V. 64 19.3 19.3 55.3
Going on a walk 25 7.6 7.6 62.8
Valid
Reading 32 9.7 9.7 72.5
Going out with friends(to
91 27.5 27.5 100.0
cafes, movies, etc)
Total 331 100.0 100.0
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Kind of beverages you like

From our research, we got to know that there is an equal proportion in consumption of hot and
cold beverages.

Which kind of beverages do you like

Frequenc Percent Valid Cumulative
y Percent Percent
hot 164 49.5 49.5 49.5
Valid cold 167 50.5 50.5 100.0
Total 331 100.0 100.0
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Hot beverage that is preferred

Half of our respondents like coffee in hot beverages.

Which hot beverage do you like normally

Frequenc Percent Valid Cumulative
y Percent Percent
milk 49 14.8 14.8 14.8
tea 52 15.7 15.8 30.6
coffee 169 51.1 51.2 81.8
Valid
hot
60 18.1 18.2 100.0
chocolate
Total 330 99.7 100.0
Missing System 1 .3
Total 331 100.0
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Place preferred to have coffee

About 45% of our respondents preferred to have coffee in coffee bars. 33% prefer to have coffee
at home. Coffee bars should concentrate in attracting those people towards coffee bars.

Where do you prefer to have coffee

Frequency Percent Valid Cumulative
Percent Percent
Home 110 33.2 33.2 33.2
coffee bars 151 45.6 45.6 78.9
Valid college/office
70 21.1 21.1 100.0
cafeteria
Total 331 100.0 100.0
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Frequency of visiting a coffee bar

Majority of our respondent’s i.e about 28% are visiting coffee bar 3times a month

How often do you usually visit a coffee bar in a month

Frequenc Percent Valid Cumulative
y Percent Percent
One 67 20.2 20.2 20.2
Two 64 19.3 19.3 39.6
three 92 27.8 27.8 67.4
Valid Four 58 17.5 17.5 84.9
five and more than
50 15.1 15.1 100.0
five
Total 331 100.0 100.0
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Time spent in a coffee bar

About 50 % of our respondents are spending 30mins to 1hr in coffee bars

How long do you usually stay in a coffee bar
Frequency Percent Valid Cumulative
Percent Percent
less than 30
92 27.8 28.0 28.0
mins
30 mins to 1
167 50.5 50.8 78.7
Valid hour
more than 1
70 21.1 21.3 100.0
hour
Total 329 99.4 100.0
Missing System 2 .6
Total 331 100.0
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Amount spent in coffee bar

Most of our respondents spend an amount of 100-300 rs in coffee bars

On your last visit to coffee bar, what is the amount you spent
Frequenc Percent Valid Cumulative
y Percent Percent
less than 100 43 13.0 13.0 13.0
100-200rupees 155 46.8 46.8 59.8
200-300 rupees 75 22.7 22.7 82.5
Valid
more than 300
58 17.5 17.5 100.0
rupees
Total 331 100.0 100.0
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Visiting a coffee bar

Most of our respondents are visiting coffee bars in Saturday followed by Sunday and Friday
during a week. 75% of our respondents are visiting coffee bars in the evening.

When do you usually visit a coffee bar

Frequency Percent Valid Cumulative
Percent Percent
Morning 25 7.6 7.6 7.6
afternoon 38 11.5 11.5 19.0
Valid evening 252 76.1 76.1 95.2
night 16 4.8 4.8 100.0
Total 331 100.0 100.0
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Visiting coffee bar with

About 90% of respondents in our sample are visiting coffee bars with friends and colleagues.

With whom you generally visit coffee bar

Frequenc Percent Valid Cumulative
y Percent Percent
friends 253 76.4 76.4 76.4
Family 25 7.6 7.6 84.0
Valid colleagues 46 13.9 13.9 97.9
Alone 7 2.1 2.1 100.0
Total 331 100.0 100.0
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Ordering coffee every time

About 37% of our respondents are not ordering coffee during their visit to a coffee bar.
Do you order a coffee every time you visit a coffee shop
Frequenc Percent Valid Cumulative
y Percent Percent
yes 208 62.8 62.8 62.8
Valid no 123 37.2 37.2 100.0
Total 331 100.0 100.0
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Food with coffee

About 30% of our respondents are not ordering food with coffee. From this, we may interpret
that; respondents may prefer to drink only coffee or the food provided in the coffee bars are not
worth eating. Coffee bars should try to include more number of food items in their menu in order
to attract customers.

Do you order food along with coffee

Frequenc Percent Valid Cumulative
y Percent Percent
yes 236 71.3 71.3 71.3
Valid no 95 28.7 28.7 100.0
Total 331 100.0 100.0
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Kind of coffee chain

About 85% of our respondents wanted to have coffee in national/international chain coffee bars

Which kind of coffee shop do you like

Frequenc Percent Valid Cumulative
y Percent Percent
National/International
278 84.0 84.0 84.0
Chain
Valid Non-chain, privately
53 16.0 16.0 100.0
owned
Total 331 100.0 100.0
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Customers’ expectations from coffee bars

From the mean ranks we can say that the customers wanted to have quality of coffee as their
highest preference followed by speed of service and price of the items.

Attribute Ranks

Mean

Promotional offers 5.13

speed of service 3.14
quality of coffee 1.78
variety of menu items 4.54
friendly employees 5.08
ambience of the store 4.51
price of the items 3.78
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Expectation of Additional Benefits

Customers are giving Wi-Fi as the first important attribute followed by music and entertainment.
In our research, we found that costa coffee is not providing Wi-Fi accessibility to the customers.
So, Costa coffee should start providing Wi-Fi in their outlets.

Additional Attribute Ranks

Mean
Wi-Fi accessibility 2.49
Newspaper/Magazines 4.69
Music 2.62
merchandise for sale 5.89
entertainment 3.64
loyalty cards/discount
4.59
coupons
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Satisfaction Level of attributes:

Barista

Attributes Mean Order of Satisfaction Customer’s Expectation

Promotional Offers 2.77 7 7

Speed of Service 3.69 2 2
Quality of Coffee 3.91 1 1
Variety of menu items 3.33 5 5
Friendly Employees 3.35 4 6
Ambience of the store 3.65 3 4
Price of the items 3.11 6 3

Barista got a low satisfaction rating in Price of the items. In order to reach customers expectation
and attract customers, it should concentrate in pricing the items.

Café Coffee day

Attributes Mean Order of Satisfaction Customer’s Expectation

Promotional Offers 2.96 7 7

Speed of Service 3.40 4 2
Quality of Coffee 3.85 1 1
Variety of menu items 3.34 5 5
Friendly Employees 3.49 3 6
Ambience of the store 3.67 2 4
Price of the items 3.11 6 3

Café coffee day got low satisfaction ratings in Speed of service and Price of the items. In order to
reach customers expectation and attract customers, it should concentrate in service and pricing
the items.
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Starbucks

Attributes Mean Order of Satisfaction Customer’s Expectation

Promotional Offers 2.77 6 7

Speed of Service 3.37 3 2
Quality of Coffee 3.60 2 1
Variety of menu items 3.34 4 5
Friendly Employees 3.26 5 6
Ambience of the store 4.00 1 4
Price of the items 2.72 7 3

Starbucks got very low satisfaction rating in Price of the items. In order to reach customers
expectation and attract customers, it should concentrate in pricing the items.

Costa Coffee

Attributes Mean Order of Satisfaction Customer’s Expectation

Promotional Offers 3.00 7 7

Speed of Service 4.12 2 2
Quality of Coffee 4.27 1 1
Variety of menu items 3.73 3 5
Friendly Employees 3.68 4 6
Ambience of the store 3.58 5 4
Price of the items 3.48 6 3

Costa coffee got a low satisfaction rating in Price of the items. In order to reach customers
expectation and attract customers, it should concentrate in pricing the items and try to improve
ambiance of the store as well.
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Mocha

Attributes Mean Order of Satisfaction Customer’s Expectation

Promotional Offers 2.90 7 7

Speed of Service 3.15 4 2
Quality of Coffee 3.92 1 1
Variety of menu items 3.83 2 5
Friendly Employees 2.94 6 6
Ambience of the store 3.19 3 4
Price of the items 3.08 5 3

Mocha got low satisfaction ratings in Speed of service and Price of the items. In order to reach
customers expectation and attract customers, it should concentrate in service and pricing the
items.

\
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Regression Analysis:

Comparing overall satisfaction level and Quality of coffee using regression

Model Summary
Mode R R Square Adjusted R Std. Error of
l Square the Estimate
a
1 .665 .442 .440 .761
a. Predictors: (Constant), Rate the last visited coffee shop
on quality of coffee

ANOVAa
Model Sum of df Mean F Sig.
Squares Square
Regression 150.188 1 150.188 259.443 .000b
1 Residual 189.875 328 .579
Total 340.064 329
a. Dependent Variable: Rate overall service quality satisfaction level of the
coffee bar you visited last
b. Predictors: (Constant), Rate the last visited coffee shop on quality of coffee

ANOVAa
Model Sum of df Mean F Sig.
Squares Square
Regression 150.188 1 150.188 259.443 .000b
1 Residual 189.875 328 .579
Total 340.064 329
a. Dependent Variable: Rate overall service quality satisfaction level of the
coffee bar you visited last
b. Predictors: (Constant), Rate the last visited coffee shop on quality of coffee

Interpretation:
As p value is < 0.05, we can say that there is significant relationship between the two variables.
R square is 44.2% which says that 44.2% of the variance in overall satisfaction level is explained
by the Quality of coffee
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Comparing overall satisfaction level and speed of service using regression

Model Summary
Mode R R Square Adjusted R Std. Error of
l Square the Estimate
a
1 .620 .385 .383 .799
a. Predictors: (Constant), Rate the last visited coffee shop
on speed of service

ANOVAa
Model Sum of df Mean F Sig.
Squares Square
Regression 130.930 1 130.930 205.347 .000b
1 Residual 209.134 328 .638
Total 340.064 329
a. Dependent Variable: Rate overall service quality satisfaction level of the
coffee bar you visited last
b. Predictors: (Constant), Rate the last visited coffee shop on speed of service

Coefficientsa
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Error Beta
(Constant) 1.690 .149 11.314 .000
Rate the last visited
1
coffee shop on speed of .574 .040 .620 14.330 .000
service
a. Dependent Variable: Rate overall service quality satisfaction level of the coffee bar you
visited last
Interpretation:
As p value is < 0.05, we can say that there is significant relationship between the two variables.
R square is 38.5% which says that 38.5% of the variance in overall satisfaction level is explained
by the Speed of service.
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Crosstabulation between gender and amount spent in coffee bars

On your last visit to coffee bar, what is the amount you spent Total
less than 100 100-200rupees 200-300 more than
rupees 300 rupees
Count 24 85 41 21 171
Male % within
14.0% 49.7% 24.0% 12.3% 100.0%
gender
gender
Count 19 70 34 37 160
Female % within
11.9% 43.8% 21.2% 23.1% 100.0%
gender
Count 43 155 75 58 331
Total % within
13.0% 46.8% 22.7% 17.5% 100.0%
gender

A Higher percentage of Women (44.38%) are spending more than Rs.200 in a coffee bar
compared to men (36.3%)
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T-Test
T-test for comparing Gender and amount spent in coffee bars

Here, H0: no significant difference between the amounts spent for males and females.
H1: significant difference between the amounts spent for males and females.

SPSS Result:

Group Statistics
gender N Mean Std. Deviation Std. Error Mean
On your last visit to coffee male 171 2.35 .870 .067
bar, what is the amount you
female 160 2.56 .976 .077
spent
Independent Samples Test
Levene's Test t-test for Equality of Means
for Equality of
Variances
F Sig. t df Sig. (2- Mean Std. Error 95% Confidence
tailed) Difference Difference Interval of the
Difference
Lower Upper
On your Equal
last visit variances 6.771 .010 -2.081 329 .038 -.211 .101 -.411 -.012
to coffee assumed
bar, what Equal
is the variances
-2.073 318.575 .039 -.211 .102 -.412 -.011
amount not
you spent assumed

Since p-value (0.010) < 0.05, we accept H1

i.e there is a significant difference between the amounts spent and gender
 38

Crosstabulation between gender and frequency of visiting a coffee bar in a month

How often do you usually visit a coffee bar in a month Total

one two three four five and more
than five
Count 30 36 57 22 26 171
male % within
17.5% 21.1% 33.3% 12.9% 15.2% 100.0%
gender
gender
Count 37 28 35 36 24 160
female % within
23.1% 17.5% 21.9% 22.5% 15.0% 100.0%
gender
Count 67 64 92 58 50 331
Total % within
20.2% 19.3% 27.8% 17.5% 15.1% 100.0%
gender

From the above table, we can say that the distribution is highly similar for the genders.
 39

T test for comparing gender and frequency of visiting a coffee bar in a month

Here, H0: no significant difference between the frequency of visiting a coffee bar for males and
females.
H1: significant difference between the frequency of visiting a coffee bar for males and females.

SPSS Result

Group Statistics
gender N Mean Std. Deviation Std. Error Mean
How often do you usually male 171 2.87 1.281 .098
visit a coffee bar in a month female 160 2.89 1.387 .110

Independent Samples Test

Levene's Test for t-test for Equality of Means
Equality of
Variances
F Sig. t df Sig. Mean Std. 95% Confidence
(2- Differen Error Interval of the
tailed) ce Differe Difference
nce Lower Upper
How Equal
often do variances 3.833 .051 -.110 329 .912 -.016 .147 -.305 .272
you assumed
usually
visit a Equal
coffee variances not -.110 322.172 .913 -.016 .147 -.306 .273
bar in a assumed
month

Since p-value (0.051) > 0.05, we accept null hypothesis

i.e there is no significant difference between gender and frequency of visiting a coffee bar
 40

Crosstabulations

Crosstabulation between spending leisure time and frequency of visiting a coffee bar
Count
How often do you usually visit a coffee bar in a
month
five and
more than
one two three four five Total
How do you send your sports 10 5 7 12 5 39
leisure time surfing net 17 18 15 18 12 80
T.V. 14 12 27 5 6 64
Going on a walk 5 8 5 2 5 25
Reading 13 6 5 0 8 32
Going out with 8 15 33 21 14 91
friends(to cafes,
movies, etc)
Total 67 64 92 58 50 331

Interpretation: The maximum frequency for the number of times visited a coffee shop in a
month is coming out to be of 3 times a month and this is also highest for the people spending
their leisure time by going out with friends to cafes, movies, etc.

Therefore, visit to a coffee shop on an average is restricted to 3 times a month.

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Cross tabulation between gender and coffee drinker rating

Rate yourself as a coffee drinker * gender Crosstabulation

gender Total
male female
Count 15 17 32
Very Low % within
8.8% 10.6% 9.7%
gender
Count 20 21 41
Low % within
11.7% 13.1% 12.4%
gender
Count 31 48 79
Rate yourself as a
neither low nor high % within
coffee drinker 18.1% 30.0% 23.9%
gender
Count 82 43 125
high % within
48.0% 26.9% 37.8%
gender
Count 23 31 54
very high % within
13.5% 19.4% 16.3%
gender
Count 171 160 331
Total % within
100.0% 100.0% 100.0%
gender

Interpretation: Males (61.5%) are very high as coffee drinkers as compared to females (46.3%).
Therefore, assumed that the visitors are mostly males, hence, coffee houses can have
entertainment according to male section more.
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Crosstabulation between annual household income and pocket money/income influence

annual household income * Does change in your pocket money/income influences the frequency of
visits to coffee shops Crosstabulation
Does change in your pocket Total
money/income influences
the frequency of visits to
coffee shops
Yes no
Count 28 15 43
under 3 lakhs % within annual household
65.1% 34.9% 100.0%
income
Count 73 20 93
3-5lakhs % within annual household
78.5% 21.5% 100.0%
annual household income
income Count 82 23 105
5-10lakhs % within annual household
78.1% 21.9% 100.0%
income
Count 41 46 87
10lakhs and
% within annual household
above 47.1% 52.9% 100.0%
income
Count 224 104 328
Total % within annual household
68.3% 31.7% 100.0%
income

Interpretation: From the data we can say that change in pocket money will affect the frequency
of visits to coffee shops; hence this is a price sensitive category. Therefore, before setting up the
prices of the products in the coffee shop, the sellers should be well aware of their target market
and any change in the economic conditions.
 43

Crosstabulation between kind of coffee shop and annual household income

annual household income Total

under 3 3-5lakhs 5-10lakhs 10lakhs
lakhs and
above
National/Inte Count 31 74 90 80 275
Which rnational % within annual
kind of 73.8% 78.7% 85.7% 92.0% 83.8%
Chain household income
coffee
Non-chain, Count 11 20 15 7 53
shop do
privately % within annual
you like 26.2% 21.3% 14.3% 8.0% 16.2%
owned household income
Count 42 94 105 87 328
Total % within annual
100.0% 100.0% 100.0% 100.0% 100.0%
household income
Interpretation: Branded coffee shops are the most preferred ones and comparative percentage
of respondents fall in income group of 5-10 lakhs and 10 lakhs above.

Crosstabulation between household income and amount spent

annual household income * On your last visit to coffee bar, what is the amount you
spent Crosstabulation
On your last visit to coffee Total
bar, what is the amount you
spent
less than 200 more than
200 rupees
91 45 136
under 5 lakhs
annual household 66.9% 33.1% 100.0%
income 5 lakhs and 104 88 192
above 54.2% 45.8% 100.0%
42 58 328
Total
12.8% 17.7% 100.0%
Interpretation: In both the income groups the average expenditure is coming out to be less than
200 rupees. Therefore, average expenditure in a coffee house is less than 200 rupees.
 44

Perceptual Mapping

4.5
4
3.5
3
2.5
Barista
2
Café Coffee Day
1.5
Star Bucks
1
Costa Coffee
0.5
0 Mocha

Interpretation: As observed before Quality of coffee and Speed of service are the most
important attributes to consider a coffee house and Costa Coffee is rated highest in both these
attributes whereas Mocha and Starbucks need to improve on it. Also on Ambience of store and
Friendly employees Mocha is rated the least whereas Ambience of Starbucks gets the highest
ratings.
 45

Conclusions and Findings:

1) Our sample of 331 respondents consisted of 51.7% male and 48.3% female
2) Around 80% of our sample is in age bracket of 21-32 years which is our target
population.
3) A fair distribution of respondents in different income groups. For our research, we have
got a well-educated sample with majority of people pursuing at least graduation
4) Most of the respondents for our research are students.
5) Majority of our respondents said that they wanted to go out with friends to spend the
leisure time.
6) There is an equal proportion in consumption of hot and cold beverages.
7) About 45% of our respondents preferred to have coffee in coffee bars. 33% prefer to have
coffee at home. Coffee bars should concentrate in attracting those people towards coffee
bars.
8) Majority of our respondent’s i.e about 28% are visiting coffee bar 3 times a month
9) About 50 % of our respondents are spending 30mins to 1hr in coffee bars
10) Most of our respondents spend an amount of 100-300 rs in coffee bars
11) Most of our respondents are visiting coffee bars in Saturday followed by Sunday and
Friday during a week. 75% of our respondents are visiting coffee bars in the evening .
12) About 37% of our respondents are not ordering coffee during their visit to a coffee bar.
13) About 30% of our respondents are not ordering food with coffee. From this, we may
interpret that; respondents may prefer to drink only coffee or the food provided in the
coffee bars are not worth eating. Coffee bars should try to include more number of food
items in their menu in order to attract customers.
14) About 85% of our respondents wanted to have coffee in national/international chain
coffee bars From the mean ranks we can say that the customers wanted to have quality of
coffee as their highest preference followed by speed of service and price of the items.
15) Customers are giving Wi-Fi as the first important attribute followed by music and
entertainment.
16) In our research, we found that costa coffee is not providing Wi-Fi accessibility to the
customers. So, Costa coffee should start providing Wi-Fi in their outlets.
 46

17) A Higher percentage of Women (44.38%) are spending more than Rs.200 in a coffee bar
compared to men (36.3%)
18) The maximum frequency for the number of times visited a coffee shop in a month is
coming out to be of 3 times a month and this is also highest for the people spending their
leisure time by going out with friends to cafes, movies, etc. Males (61.5%) are very high
as coffee drinkers as compared to females (46.3%). Therefore, assumed that the visitors
are mostly males, hence, coffee houses can have entertainment according to male section
more.
19) Branded coffee shops are the most preferred ones and comparative percentage of
respondents fall in income group of 5-10 lakhs and 10 lakhs above

As observed before Quality of coffee and Speed of service are the most important attributes to
consider a coffee house and Costa Coffee is rated highest in both these attributes whereas Mocha
and Starbucks need to improve on it. Also on Ambience of store and Friendly employees Mocha
is rated the least whereas Ambience of Starbucks gets the highest ratings.

Limitations
1) The problem of differentiating between ranking and rating by the respondents in the
questionnaires was seen that created difficulty in entering data into SPSS.
2) Time constraint for observing each respondent was seen
3) Limited sample size
4) Area constraint
5) Respondents made various errors and concealed personal information (mobile numbers)
specially female respondents.
 47

Coffee house opinion survey

This questionnaire pertains to a project being conducted by a MBA class at Amity University, Noida. The
purpose of this project is to better understand the perceptions and expectations of consumers for
visitingcoffee shops. The questionnaire will take only 5-10 minutes to complete and all the responses
will remain strictly confidential. Thank you for your help in this project.

1. How do you spend your leisure time?

a) Sports b) Surfing net
c) T.V. d) Going on a walk
e) Reading f) Going out with friends (to cafes, movies…..)

2. Which kind of beverages do you like?

a) Hot b) Cold

3. Which hot beverages do you prefer normally?

a) Milk b) Tea
c) Coffee d) Hot chocolate

4. Rate yourself as a coffee drinker on a scale of 1 to 5 (1 being lowest and 5 being highest)

1 2 3 4 5

5. Where do you prefer to have coffee?

a) Home b) Coffee bars
c) College/office cafeteria

6. How often do you usually visit a coffee bar? (in a month)

a) One b) Two c) Three
d) Four e) Five or More

7. How long do you usually stay in a coffee bar?

a) < 30min b) 30min to 1hr c) >1hr

8. On your last visit to the coffee bar, what is the amount you spent?
a) < 100Rs b) 100-200Rs
c) 200-300Rs d) >300Rs

9. On which day of the week, you would like to visit a coffee bar? (you can select more than
one)
a) Monday b) Tuesday c) Wednesday
d) Thursday e) Friday f) Saturday
g) Sunday
 48

10. When do you usually visit a coffee bar?

a) Morning b) Afternoon
c) Evening d) Night

11. With whom you generally visit a coffee bar?

a) Friends b) Family
c) Colleagues d) Alone

12. Do you order a coffee every time you visit a coffee shop?
a) Yes b) No

13. Do you order food along with the coffee?

a) Yes b) No

14. Do you prefer large, national/international chain coffee shops or small, privately owned
coffee shops?
a) National/international Chain b) Non chain, privately owned

15. Which coffee shop chain is your favorite?

a) Barista b) Café coffee day c) Star bucks
d) Costa coffee e) Mocha

16. Which coffee shop chain you visited last?

a) Barista b) Café coffee day c) Star bucks
d) Costa coffee e) Mocha

17. Listed below are a set of attributes (reasons) many people use when selecting a coffee bar to
visit. Please RANK each attribute from 1 to 7, with 1 being the most important attribute for
selecting the coffee bar and 7 being the least important attribute.

Attributes Rank
Promotional offers
Speed of Service
Quality of coffee
Variety of menu items
Friendly employees
Ambience of the store
Price of the items
 49

18. Please rate the coffee bar that you visited last on the following attributes (1- highly
dissatisfied to 5-highly satisfied)

Attributes Ratings
Promotional offers 1 2 3 4 5
Speed of Service 1 2 3 4 5
Quality of coffee 1 2 3 4 5
Variety of menu items 1 2 3 4 5
Friendly employees 1 2 3 4 5
Ambience of the store 1 2 3 4 5
Price of the items 1 2 3 4 5

19. Does change in your income/pocket money influences the frequency of visits to coffee
shops?
a) Yes b) No

20. Listed below are a set of additional benefits you are expecting from a coffee bar. Please rank
from 1 to 7, with 1 being the most important attribute and 7 being the least important
attribute.

Benefits Rank
Wi-Fi accessibility
Newspapers / Magazines
Music
A theme based coffee shop (like photograph house, disco, music, retro, etc…)
Merchandise for sale
Entertainment
Loyalty cards/ Discount Coupons

21. What type(s) of entertainment would you enjoy most?

a) Live Bands b) Public forum. (To express ideas about
politics, religion, etc.)
c) Independent Movies d) Bowling
e) Gaming f) Arcade games
g) Internet h) Just relaxing with friends
i) Hookah j) Art. (Painting, drawing, etc.)
 50

22. Rate your overall service quality satisfaction level of the coffee bar that you visited last on a
Scale of 1 to 5, with 1 being highly dissatisfied and 5 being highly satisfied.

1 2 3 4 5

Demographic Details

23. Gender
a) Male b) Female

24. Age?
a) 17-21 b) 21-27
c) 27-32 d) 33 and above

25. Annual household income?

a) Under 3 lakhs b) 3 lakhs- 5 lakhs
c) 5 lakhs - 10 lakhs d) 10 lakhs and more

26. Education?
a) High school b) Graduation
c) Post-graduation d) Higher studies

27. Occupation?
a) Student b) Service
c) Business d) Professional

Thank You!!!