• The Korean Journal of Franchise Management
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• v.8 no.1
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• pp.31-41
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• 2017

Purpose - As the domestic coffee market is rapidly growing and competition is intensifying, coffee shops need to establish a marketing strategy that grasps the needs and desires of consumers in order to secure a competitive advantage in terms of survival. From this point of view, this study suggests what choice attributes consumers consider when visiting coffee shops, and analyzes the effect of customer choice attributes on franchise and private coffee shops using fsQCA. Research design, data, and methodology - In the present study, we tried to understand the effect of the combination of choice attribute on satisfaction by the type of coffee shop based on the complex system theory, while studying the existing coffee shop choice attribute focuses on the causal relationship. FsQCA is a complementary analytical method between quantitative and qualitative research, and is a method for effectively analyzing the complex combination of causal variables. Result - The results of the study are as follows. First, cleanliness was found to be the most important factor in determining coffee quality, which is the most important factor affecting customer satisfaction. Second, customers who prefer franchise coffee shops seem to be most concerned about atmosphere, menu, cleanliness and price. On the other hand, customers who prefer private coffee shops consider image the most important. Conclusions - The implications of this study are as follows. Overall, coffee shops should manage cleanliness basically regardless of the type of store, but they should manage the choice attributes differently depending on the type of coffee shop. Franchise coffee shops will be able to increase the level of store satisfaction by systematically managing the store atmosphere, menu, cleanliness, and price according to the manual using the advantages of the franchise system. On the other hand, unlike the franchise coffee shops, private coffee shops can operate autonomous stores, so customers can use various marketing mixes to enhance their store image.

• The Korean Journal of Franchise Management
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• v.7 no.1
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• pp.21-29
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• 2016

Purpose - The primary purpose of this study is to employ effective marketing methods using market segmentation of coffee shops by determining how motivations to visit coffee shops have different impacts on demographic profile of visitors and characteristics of coffee shop visits, so as to draw out a better understanding of customers of coffee market. Research design, data, and methodology - Data were collected using surveys of self-administered questionnaires toward coffee shop users in Daejeon, Korea. A number of samples used in data analysis were 253 excluding unusable responses. The data were analyzed through frequency, reliability, and factor analysis using SPSS 20.0. Factor analysis was conducted through the principal component analysis and varimax rotation method to derive factors of one or more eigen values. In addition, the cluster analysis, multivariate ANOVA, and cross-tab analysis were used for the market segmentation based on the types of motivation for coffee shop visits. The process of the cluster analysis is as follows. Four clusters were derived through hierarchical clustering, and k-means cluster analysis was then carried out using mean value of the four clusters as the initial seed value. Result - The factor analysis delineated four dimensions of motivation to visit coffee shops: ostentation motivation, hedonic motivation, esthetic motivation, utility motivation. The cluster analysis yielded four clusters: utility and esthetic seekers, hedonic seekers, utility seekers, ostentation seekers. In order to further specify the profile of four clusters, each cluster was cross tabulated with socio-demographics and characteristics of coffee shop visits. Four clusters are significantly different from each other by four types of motivations for coffee shop visits. Conclusions - This study has empirically examined the difference in demographic profile of visitors and characteristics of coffee shop visits by motivation to visit coffee shops. There are significant differences according to age, education background, marital status, occupation and monthly income. In addition, coffee shops use pattern characterization in frequency of visits to coffee shops, relationships with companion, purpose of visit, information sources, brand type, average expense per visit, important elements of selection attribute were significantly different depending on motivations for coffee shop visits.

• Science of Emotion and Sensibility
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• v.19 no.2
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• pp.79-88
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• 2016

Modern society is living in material affluence after the Industrial Revolution. Meanwhile, consumer needs, in conformity with product diversification, are also being diversified. Modern consumers, unlike those of the past, are trending towards individual consumption that satisfies emotion and values instead of simple goal-oriented consumption. A model case is that of Starbucks. Starbucks has grown into the global coffee franchise it is today through emotional marketing that sells an atmosphere that is unique to Starbucks, consisting of store decorations, store music, employee service, and charming coffee aromas that are identical in every store anywhere in the world. Because this method is marketing that stimulates human emotion, it is assigned to and appeals to human senses and sensitivity. In other words, the charm of emotion marketing is that it draws out consumer emotion, produces positive reactions towards products, and leads to consumption. The utilization of emotions for products or service differentiates brand image and is becoming a key method in reinforcing brand royalty. In particular, more importance is being placed on customer service to strongly impress consumers. Intangible service is becoming the best way to impress customers.

• The Journal of the Korea Contents Association
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• v.21 no.8
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• pp.108-122
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• 2021

The purpose of this paper is to examine the impact of servicescape on perceived service quality, service satisfaction and to verify causal relationships between servicescape, technical service quality, functional service quality, service satisfaction, and service loyalty in coffee shop franchises. An online survey was conducted to collect the data from the actual service customers of coffee shop franchises. An analysis of structural equation modeling was performed using AMOS 24.0 and SPSS 24.0 to test the research hypotheses. The results of the study are as follows: first, servicescape has positive influence on technical service quality and functional service quality except for service satisfaction. Second, both technical service quality and functional service quality have positive influence on service satisfaction. Finally, service satisfaction has a strong effect on service loyalty. This paper finds that it is more appropriate to model the servicescape as a separate construct which precedes both functional service quality and technical service quality. Servicescape in the coffee shop service has the influence on shaping service quality perceptions and their subsequent impact on service satisfaction and service loyalty.

• The Korean Journal of Franchise Management
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• v.9 no.3
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• pp.19-29
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• 2018

Purpose - Due to the increase in coffee consumption and competition, domestic coffee franchise companies are currently entering the overseas market. Therefore, coffee franchise companies are pursuing a variety of marketing strategies to meet customer needs and gain competitive advantage in overseas markets. From this perspective, overseas franchise companies need to ensure that their servicescapes meet the needs of their overseas customers. For these purposes, the study is to identify the impact servicescapes on customer satisfaction and customer loyalty focused on Global Coffee Franchise Company "C", which extended its business worldwide in Mongolia. Research design, data, and methodology - The data were collected from customers who had visited the stores of 'C' company in Ulaanbaatar, Mongolia. 435 valid questionnaires collected through online survey coded and analyzed using frequency, confirmatory factor analysis, correlations analysis, and structural equation modeling with SPSS 24 and SmartPLS 3.0. Result - Firstly, seating comfort, facility aesthetics, and cleanliness, ambient conditions among servicescapes influenced customer satisfaction. Secondly, servicescapes didn't affect the loyalty directly. Third, customer satisfaction had positive effect on loyalty. Fourthly, cleanliness which was ranked lower in Korea had a great effect on customer satisfaction in Mongolia. Fifthly, IPMA(Importance-performance map analysis) shows that the importance of servicescapes is higher for women than for men, and facility aesthetics for female and cleanliness is the most important for male. Conclusions - The results of this study show that there is a positive (+) effect on customer satisfaction in order of cleanliness, ambient conditions, aesthetics, and seating comfort. Therefore, franchise companies considering or advancing into Mongolia should consider importance in order of cleanliness, ambient conditions and aesthetics when entering Mongolia market. For example, franchise managers should select Monday as a "clean day," and all merchants should spend all of their open hours and keep their stores clean in accordance with the head office manual. In addition, franchise managers need to hire a VMD (visual merchandising) experts to build up a physical environment that will effectively highlight the space-specific display of the store so that Mongolian local customers can have a satisfactory climate and aesthetics. And, the IMPA analysis between servicescapes and customer satisfaction shows that women are more susceptible to servicescapes than men. Especially, in the case of women, the importance of esthetics is high, but the performance is low. Thus, if the aesthetics are actively improved, customer satisfaction can be effectively increased.

• Journal of the Korean Society of Food Culture
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• v.28 no.2
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• pp.195-203
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• 2013

The aim of this study was to provide strategic implications for the coffee market in which competition got severer through IPA analysis based on the attributes of selection of a specialized franchise coffee shop. The results of a positive analysis conducted with undergraduates in their twenties were as follows: According to the evaluation of the importance of the attributes of selection of a specialized coffee shop, the most important were 'cleanliness and hygienic facilities inside the shop (6.09)' and 'taste and quality of the menu (coffee) (6.09)'. According to the performance analysis, those showing the highest performance were 'brand image (4.92)' and 'cleanliness and hygienic facilities inside the shop (4.92)'. According to the result of IPA analysis, what customers regarded as being the most important were 'taste and quality of the menu (coffee)', 'kindness of the staff', and 'cleanliness and hygienic facilities inside the shop', and, in fact, they showed great performances as well. However, 'price of the menu (coffee)' was regarded as being important but did not indicate a great performance; therefore, they showed dissatisfaction with it. Although they did not think 'environment around the shop', 'brand image', 'brand recognition' or 'interior size and scale of the shop' were important, the attributes did not appear to show great performances. Therefore, we need constant maintenance strate gies regarding the fact that consumers are considered to be very important for evaluation, and should make efforts to change the price in advance.

• Culinary science and hospitality research
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• v.24 no.1
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• pp.130-139
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• 2018

The purpose of this study was to grasp the profitability of coffee franchise companies using ROIC tree, ROA and ROE. As a result, ROA was using assets efficiently, and some companies are in desperate need to improve their management based on past brand recognition, and a new paradigm management strategy is urgently required. In particular, the franchise company's current cost burden is greater than comparable firms. In ROE, the capital was operating efficiently. Since ROIC is very difficult to classify business related and operating related amounts accurately based on financial statement information, there is a limit to accurate ROIC calculation. Therefore, ROIC is estimated to be 7.6~38.29% as of 2016 based on ROIC calculation. In the case of continuous growth companies, investments are made to improve steady sales, but some companies seem to be unable to escape from past paradigm. In order to continue the growth of the company beyond the accounting profit in the future, the ROIC Tree can be used to measure the subdivided management performance and propose efficiency plan.

• The Korean Journal of Food And Nutrition
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• v.31 no.1
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• pp.173-184
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• 2018

This research was conducted to examine coffee shop customers' preference and satisfaction by different types of promotion. Research samples ware adults with experience of any form of coffee shop promotion (n=209). Descriptive statistics, Chi-square, t-test and one-way ANOVA were used to analyze the relations among variables. Results showed that 'free coupon' was the most preferred ones. SNS was the most frequently used search method for coffee shop coupon promotion information. The most preferred event promotion was 'freebies', and preference levels were significantly different by age and employment status. 'Barista experience' was ranked highest in preference among cultural experience events. Drinking coffee was the most important purpose of visiting coffee shops, especially among unemployed, twenties, and women respondents. Coupon was evaluated the highest in usefulness and satisfaction among the three promotion methods. Event and cultural experience were preferred more by respondents in their twenties than those in their thirties. Results indicated that all promotion strategies are effective for increasing customer satisfaction and for inducing revisit. Findings also showed that preference for promotion was affected by customer characteristics such as age and gender. Therefore, coffee shops should consider using the most effective and attractive promotion strategy for their target market, while maintaining a consistent service quality level to fulfill customer expectation.

• 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.

• The Korean Journal of Franchise Management
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• v.10 no.3
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• pp.37-52
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• 2019

Purpose - This study examined the relationship between service quality, perceived value, customer satisfaction and behavioral intention of coffee shop using CoffeeSERV scale. In this model, CoffeeSERV scale consists of fundamental characteristics, physical environment, confidence, beverage characteristics, and representation factors. In particular, this study tried to demonstrate the moderating effect of customer's regulatory focus orientation among in the relationships between service quality, perceived value, customer satisfaction and behavioral intention. Research design, data, and methodology - This study intends to expand the existing service quality research by using the coffee shop service quality measurement tool developed by domestic researchers. I wanted to find some implications for the trend. In particular, this study applied the regulatory focus theory to identify individual differences of customers regulatory focusing motivation. In order to verify several hypotheses, the data were 227 college students and analyzed with SPSS/PC 21.0 and SmartPLS 3 program. The moderating role of customer's regulatory focusing motivation was tested using multi-group analysis with SmartPLS 3 program. Results - The resutls are as follows. First, the fundamental characteristic factors only had a significant influence on the utilitarian value perception, but in the hedonic value perception, all other service factors except for the beverage characteristic had a statistically significant effect. Second, utilitarian and hedonic value had significant effects on customer satisfaction. Third, customer satisfaction had a significant effect on behavioral intention. Finally, the regulatory focus orientation played a moderating role in the relationship between beverage characteristic - utilitarian value, representation - utilitarian value, fundamental characteristic - hedonic value, physical environment - hedonic value, confidence - hedonic value, and utilitarian value - behavioral intention. Conclusions - The results of this study show that the various service quality factors that make up the CoffeeSERV scale have different effects on utilitarian and hedonic value. This means that perceived benefits from product and service experience have different impacts on the customer's experience. Therefore, marketers should identify the impacts of service quality dimension that customers who use coffee shops consider important, understand the impact process of these quality factors on experience value, customer satisfaction, and behavioral intention, and allocate limited marketing budget. The results also show that it is possible to establish differentiatied response strategies using customer's regulatory focus orientation to find ways to enhance utlitarian and hedonic value, customer satisfaction, and behavioral intention using various Coffeeshop service quality factors. At the end of this paper, some limitations and future research directions were suggested.