• Journal of Cadastre & Land InformatiX
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• v.44 no.1
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• pp.213-226
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• 2014

The objective of this paper is to investigate the factors determining the premium of coffee shops by using coffee-shop lease cases at main retail trade areas in Seoul. The focus is on analyzing that the coffee-shops' the sales, building, location and retail trade area characteristics affects the coffee shop's premium. The major findings are as follows. First, there is a high positive correlation between the premium and the sales, and the sales and the size of the shop are shown to be statistically significant variables in estimating the premium per $3.3m^2$. It means that the shop's sale is empirically important an independent variable in determining the premium and as the major costs in the process of starting the business. Second, the deposit money per $3.3m^2$ and public service officers in the retail areas are important in determining the premium. Third, the size of the shop have the effects on the premium per $3.3m^2$ negatively. In short, this study adopts the research hypothesis that retail trade area, location, building of the characteristics, which is located in the coffee shops have the effects on the premium.

• Journal of Global Scholars of Marketing Science
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• v.19 no.4
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• pp.1-10
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• 2009

The purpose of this study was to categorize the gap between coffee shop 'importance' (as perceived by customers before patronizing the coffee shop) and 'satisfaction' (perception of customers after patronizing the coffee shop) as positive or negative and to analyze the effect of these gaps on purchasing behavior. To do this, I used the gap between importance and satisfaction regarding the choice of a coffee shop as the explanatory variable and performed an empirical analysis of the direction and size of the effect of the gap on purchasing behavior (overall satisfaction, willingness-to-revisit) by applying the Ordered Probit Model (OPM). A previous study that used IPA to evaluate the effects of gaps estimated the direction and size of a quadrant but failed to analyze the effect of gaps on customers. In this study, I evaluated the effects of positive and negative gaps on customer satisfaction and willingness-to-revisit. Using OPM, I quantified the effect of positive and negative gaps on overall customer satisfaction and willingness-to-revisit. Per-head expenditure, frequency of visits, and coffee-purchasing place had the most positive effects on overall customer satisfaction. Frequency of visits, followed by per-head expenditure and then coffee-purchasing place, had the most positive impact on willingness-to-visit. Thus per-head expenditure and frequency of visits had the greatest positive effects on overall satisfaction and willingness-to-revisit. This finding implies that the higher the actual satisfaction (gap) of customers who spend KRW5,000 or more once or more per week at coffee shops is, the higher their overall satisfaction and willingness-to-revisit are. Despite the fact that economical efficiency had a significant effect on overall satisfaction and willingness-to-revisit, college and university students still use coffee shops and are willing to spend KRW5,000 because they do not only purchase coffee as a product itself, but use the coffee shop for other activities, such as working, meeting friends, or relaxing. College and university students also access the Internet in coffee shops via personal laptops, watch movies, and study; thus, coffee shops should provide their customers with the appropriate facilities and services. The fact that a positive gap for coffee shop brand had a positive effect on willingness-to-revisit implies that the higher the level of customer satisfaction, the greater the willingness-to-revisit. A negative gap for this factor, on the other hand, implies that the lower the level of customer satisfaction, the lower the willingness-to-revisit. Thus, the brand factor has a comparatively greater effect on satisfaction than the other factors evaluated in this study. Given that the domestic coffee culture is becoming more upscale and college/university students are sensitive to this trend, students are attentive to brands. In most upscale coffee shops in Korea, the outer wall is built out of glass that can be opened, the interiors are exotic with an open kitchen. These upscale coffee shops function as landmarks and match the taste of college/university students. Coffee shops in Korea have become a cultural brand. To make customers feel that coffee shops are upscale, good quality establishments and measures to provide better services in terms of brand factor should be instituted. The intensified competition among coffee shop brands in Korea as a result of the booming industry indicates that provision of additional services is needed to differentiate competitors. These customers can also use a scanner free of charge. Another strategy that can be used to boost brands could be to provide and operate a seminar room for seminars and group study. If coffee shops adopt these types of strategies, college/university students would be more likely to consider the expenses they incur worthwhile and, subsequently, they would be more likely to be satisfied with the brands of these coffee shops, with an associated increase in their willingness-to-revisit. Gender and study year had the most negative effects on overall satisfaction and willingness-to-revisit. Female students were more likely to be satisfied and be willing to return than male students, and third and fourth-year students were more likely to be satisfied and willing-to-return than first or second-year students. Students who drink coffee, read books, and use laptops alone at coffee shops are easily noticeable. High-grade students tend to visit coffee shops alone in order to use their time efficiently for self-development and to find jobs. The economical efficiency factor had the greatest effect on overall satisfaction and willingness-to-revisit in terms of a positive gap. The higher the actual satisfaction (gap) of students with the price of the coffee, the greater their overall satisfaction and willingness-to-revisit. Economical efficiency with a negative gap had a negative effect on willingness-to-revisit, which implies that a less negative gap will result in a greater willingness-to-revisit. Amid worsening market conditions, coffee shops located around colleges/universities are using strategies, such as a point or membership card, strategic alliances with credit-card companies, development of a set menu or seasonal menu, and free coffee-shot services to increase their competitive edge. Product power also had a negative effect in terms of a negative gap, which indicates that a higher negative gap will result in a lower willingness-to-revisit. Because there are many more customers that enjoy coffee in this decade, as compared to previous decades, the new generation of customers, namely college/university students, want various menu items in addition to coffee, and coffee shops should, therefore, add side menu items, such as waffles, rice cakes, cakes, sandwiches, and salads. For example, Starbucks Korea is making efforts to enhance product power by selling rice cakes flavored in strawberry, wormwood, and pumpkin, and providing coffee or cream free of charge. In summary, coffee shops should focus on increasing their economical efficiency, brand, and product power to enhance the satisfaction of college/university students. Because shops adjacent to colleges or universities enjoy a locational advantage, providing differentiated services in terms of economical efficiency, brand, and product power, is likely to increase customer satisfaction and return visits. Coffee shop brands should, therefore, be innovative and embrace change to meet their customers' desires. Because this study only targeted college/university students in Seoul, comparative studies targeting diverse regions and age groups are required to generalize the findings and recommendations of this study.

• The Journal of Industrial Distribution & Business
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• v.8 no.5
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• pp.95-109
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• 2017

Purpose - The purpose of this study is to classify the quality factors of coffee shop customers with the service quality based on the SERVQUAL, selection attributes, and service qualities used in previous studies. The path structure of coffee shops' quality factors → customer satisfaction → trust → behavioral intention was analyzed in order to confirm the system of coffee shops' quality factors. Research design, data, and methodology - The survey of was conducted with college students of Kangwon University. A total of 250 questionnaires were distributed, with 232 collected. Of them, Excluding 36 respondents' because of incomplete answers and missing values, 196 responses were used in the final analysis. Empirical analysis was made through factor analysis, correlation analysis, multiple regression analysis, simple regression analysis and mediating regression analysis by using Statistics Package SPSS 19.0. Results - The results are as follows: Firstly, coffee shops' quality factors were classified into seven categories like service encounter quality, product quality, cleanliness, overall interior, purchase quality, convenience, and aesthetics. Secondly, service encounter quality, product quality, purchase quality, and aesthetics had a positive effect on customer satisfaction, respectively. Thirdly, it showed that service encounter quality, product quality, overall interior, purchase quality, and aesthetics had a positive effect on trust, respectively. Fourthly, customer satisfaction had a positive effect on behavioral intention. Lastly, after verifying the effect relations of trust between customer satisfaction about coffee shop and behavioral intention, customer satisfaction has a positive effect on trust and trust has a positive effect on behavioral intention. On the other hand, trust did not have a mediating effect between customer satisfaction and behavioral intention. But, cleanliness, convenience, and overall interior did not have a positive effect on customer satisfaction. Conclusions - Coffee shop consumers put importance on price, discount systems, taste, and freshness, but more on courteous and kind services of coffee shop staff or comfortable and calming atmosphere of inner space. Thereby, coffee shop marketers need to take factors like service encounter quality and aesthetics into more consideration. In addition, customer satisfaction has an effect on trust, while trust on behavioral intention, even though trust is not mediated between customer satisfaction and behavior intention.

• The Korean Journal of Franchise Management
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• v.13 no.3
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• pp.31-43
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• 2022

Purpose: Service quality is a topic of constant interest in marketing research and practitioners. Service quality is an important factor influencing performance even in the context of coffee shops, and research on service quality management strategies continues by coffee shop researchers and practitioners. The service quality of coffee shops is a source of competitive advantage and is an important factor in enhancing customer and business performance. This study aims to identify the effects of cognitive evaluation on emotional and behavioral responses using a cognitive-emotional-behavioral framework and SOR model in the coffee shop context. Cognitive evaluation (service quality) consists of tangibles, responsiveness, assurance, reliability, and empathy dimensions. Research design, data, and methodology: In the proposed model, positive and negative emotions and satisfaction mediate the relationship between service quality and money to spend and visit frequency. The data were collected from customers who visited a coffee shop within the last 1 month. The survey was conducted for about one month. Among a total of 300 distributed questionnaires 261 responses were used for data analysis. The data were analyzed using frequency analysis, measurement model analysis, and structural equation modeling analysis with SPSS 28.0 and SmartPLS 4.0. Results: Tangibles, responsiveness, assurance, and empathy had significant positive effects on positive emotion, while only reliability had a significant negative effect on negative emotion. Both positive and negative emotions had significant positive effects on customer satisfaction, but not on money to spend and visit frequency. Lastly, customer satisfaction had significant positive effects on money to spend and visit frequency. Conclusions: The study revealed the relative weight of cognitive factors on customer emotions and confirmed the validity of SOR model. The fact that tangibility is the most important factor in increasing positive emotions and reliability is the most important factor in reducing negative emotions provides a direction for emotional branding strategies using the service quality mix of coffee shops. This study confirmed the full mediating role of satisfaction between positive and negative emotions and consumer behaviors (money to spend and visit frequency). This infers that when a coffee shop increases customer satisfaction through customer emotion management, the customer's money to spend and visit frequency in the coffee shop increases.

• Journal of the Korea Convergence Society
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• v.10 no.1
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• pp.123-132
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• 2019

As the rapid pace of modern society, people's daily life is becoming tenser and busier. We need a place to relax and to release our pressure. Coffee shops therefor become one of our best choice. With the strengthening of the expansion of the localized Starbucks coffee shop, it becomes extremely urgent for other coffee shops to enhance the space environment design to become outstanding in the coffee shop market. This paper researches and compares the indoor environment design of Starbucks coffee shops in four cities in China, namely Shanghai, Suzhou, Shenzhen and Beijing and four cities in Korea, namely Busan, Seoul, Seoul and Jeju. By comparing the design characteristics and the style of the interior environment of Korea-China coffee shops, we analyze the various elements of space design and summarize the differences in the environmental design of Korea-China Starbucks coffee shops. Moreover, we propose the strategic direction for the future design and the future development of coffee shops. The survey results show that the indoor environment design of Starbucks coffee brand mainly highlights the regional cultural characteristics. Starbucks shops utilize the fashion culture elements based on the local economic and cultural characteristics, aiming at creating a characteristic coffee brand culture and promoting the vigorous development of the coffee market.

• Asia-Pacific Journal of Business
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• v.8 no.2
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• pp.41-55
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• 2017

This exploratory research compares two particular features of coffee culture, namely the reason why a particular coffee shop is frequented and the reason for going to the chosen coffee shop in Italy and South Korea. A survey was carried out targeted at current undergraduate university students in both countries with data being collected in the late spring and early summer of 2017. The main impetus for this research was to investigate the aforementioned areas given the fact that Italy has such a long standing coffee culture that dates back centuries and is still an industry dominated by independent coffee houses while the Korean coffee industry started developing in the early 1980s and taking off after the 1988 Olympic Games. The Korean coffee industry, in contrast, is driven by the franchise coffee shops such as Starbucks, $Caf{\acute{e}}$ Benne, and The Coffee Bean among others. While both countries have well developed coffee cultures, they developed along very different lines. Data collected from respondents are tabulated and presented followed by an analysis and interpretation of the data. Finally, some suggestions on how to conduct further research in order to better understanding the underpinnings and contributing factors in understanding consumer choice and coffee culture in both Italian and Korea are suggested.

• Asia-Pacific Journal of Business
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• v.6 no.1
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• pp.45-57
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• 2015

The purpose of this research is to explore the relationships among service quality's five factors(i.e., tangibles, reliability, responsiveness, empathy, and assurance) and customer satisfaction. The study used convenience sampling and selected certain consumers who visited coffee shop in BeiJing, China. Total 300 questionnaires was distributed and 18 unsuitable data were excluded for data analysis. These data were tested using SPSS 21.0. The results of this study are summarized as follows. First, the result of the relationship between coffee shops'service quality and customer satisfaction reveals that two of 5 service quality factors (i.e., assurance and empathy) had a positive effect on customer satisfaction only, and other service quality factors (i.e., tangibles, reliability, and responsiveness) had no positive influence on customer satisfaction. Limitations and future research directions of the study were also discussed.

• Culinary science and hospitality research
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• v.22 no.5
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• pp.231-251
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• 2016

This study examined the effect of brand experience and personality on customer-brand relationships, brand attachment, and brand loyalty in domestic and global coffee shop brands. By comparing inter-structural relationships among factors between domestic brands and global brands, this study also provided strategic implications and directions for the effective marketing strategy of coffee shop brands. Data were collected through a self-administered survey of the consumers aged 20's to early 40's who used domestic and global brand coffee shops in Seoul and Kyunggi between August 1, 2014 and August 30, 2014. 500 surveys were distributed and 495 surveys were returned. Among them, data from 493 surveys were used for the analysis. The results from this study are as follows. First, it was found that the Think of experiences in coffee shop had a greater effect on consumer-brand relationship than the Sense-Feel. Second, the Sophistication of brand personality in coffee shop had a greater effect on consumer-brand relationship than the Excitement. Third, only Think of experience in coffee shop significantly impacted brand attachment, but Sense-Feel did not impact brand attachment. Fourth, only Excitement of brand personality in coffee shop significantly impacted brand attachment, but Sophistication did notact on brand attachment. Fifth, the consumer-brand relationship had a greater effect on brand loyalty than did brand attachment. Finally, the differences from a comparison analysis of domestic brands and global brands of coffee shop are as follows. In domestic brands, only the Sophistication of brand personality in coffee shop significantly impacted consumer-brand relationship. In global brands, the brand personality in coffee shop did not impact on consumer-brand relationship.

• Culinary science and hospitality research
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• v.24 no.2
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• pp.1-7
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• 2018

This study aims to find what attributes of consumer satisfaction are more important when consumers choose coffee shops. Factors when customers choose coffee shops that are considered to be more crucial, such as taste, price, brand, and atmosphere, were tested and also relations between satisfaction and revisit were studied. As a result, factors as 'taste', 'price', 'brand', and 'atmosphere' were found to significantly affect satisfaction; in addition, the path that satisfaction leads to revisit was found to be significant. However, consumers' coffee shop selection attributes differed depending on their psychological consumption value. The path-coefficients from taste and price to satisfaction were more significant in the function-oriented group, meanwhile the path-coefficient from brand to satisfaction was significant in the emotion-oriented group (+) and the function-oriented group (-). The results of this study suggest attributes of selecting coffee shops and provide meaningful implications of consumer value when they choose the attributes.

• Culinary science and hospitality research
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• v.21 no.1
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• pp.42-57
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• 2015

When a customer chooses a coffee shop, different factors can influence his/her purchase. These factors can include tangible as well as intangible elements such as the coffee shop's atmosphere, layout, and interior. Thus, many coffee brands strive to serve not only a diverse menu, but also a unique quality of environment. This study aimed to investigate the influence of physical environment on customer satisfaction and loyalty in the coffee shop and evaluate the influential power of the physical environment factors using hierarchical regression analysis. Data was collected from customers of coffee shops in Texas, the U.S. The study found that the coffee shops' physical environment influenced the customer's satisfaction and loyalty. Particularly, the coffee shop's physical environment including ambient and interior design greatly influenced the customers' satisfaction. However, a broad range of physical environment factors such as temperature, aroma, lighting, color, and interior furnishings should be provided to increase the customer loyalty. The results may have a broader application to provide effective managerial and marketing information to Korean coffee entrepreneur brand in the U.S. and beyond.