Description
COMPARATIVE STUDY OF CUSTOMER EXPERIENCE AT CCD VS BARISTA
International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 INTERNATIONAL JOURNAL OF ADVANCED RESEARCH (Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 2, July-December (2012) IN MANAGEMENT (IJARM) ISSN 0976 - 6324 (Print) ISSN 0976 - 6332 (Online) Volume 3, Issue 2, July-December (2012), pp. 40-49 © IAEME: www.iaeme.com/ijarm.asp Journal Impact Factor (2012): 2.8021 (Calculated by GISI) www.jifactor.com
IJARM
©IAEME
A COMPARATIVE STUDY OF CUSTOMER EXPERIENCE IN CAFÉ COFFEE DAY VS BARISTA
Vijay.R.Kulkarni M.Com, MBA Assistant Professor Sinhagad Institute of Management and Computer Applications Pune, Maharashtra, India Email: [email protected] ABSTRACT The study is about customer perceptions about customer experience practices of Barista vs. Cafe Coffee Day. The study was conducted in the city of Pune (India) during 01.06.2012 to 15.07.2012.For the purpose of this study Exploratory Research Design is used. Convenience sampling method is adopted for the study. Survey method is used for collecting the data. The data is collected through interviews with respondents from different professions, age, occupations & also intercepts at Barista and CCD. The sample for the study is 146 respondents. Nominal scale is used for all the variables except age, income, family size, no of children wherein ratio scale is used. SPSS 17 versions is used. Various statistical tools like Cronbach’s Alpha for Scale Reliability, Kaiser-Meyer-Olkin Measure of Sampling Adequacy and z test are used for data analysis. The findings of the study reveal that of the twenty five variables considered in the study customer’s perception is found to be unfavorable in case of four variables viz. 1) Exterior (facade) of the restaurant 2) Enough space in the isles to move comfortably in the restaurant 3) Scent & Perfume in the Restaurant 4) Delivery time taken for serving the products & 5) Taste and quality of Products.
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International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 2, July-December (2012) Key Words: Comparative Analysis, Customer Perceptions, Coffee Cafes, Taste & Quality of food 1. INTRODUCTION Drinking coffee and tea is an inseparable part of Indian culture with south dominated by coffee drinking. Offering tea or coffee to guests in any house hold is the minimum courtesy shown by Indians to the guests. Discussion over a cup of tea or coffee with friends during college days has been a common feature amongst all Indians. In the pre-independence era Coffee houses belonging to Indian Coffee Board were the meeting places for the intellectuals, freedom fighters, politicians’ and social activists etc. to discuss issues over a cup of coffee in the informal atmosphere of the coffee house. The tradition still continued albeit the existing restaurants available around. Due to liberalization; the television penetration, internet and phenomenal growth in mobile usage has resulted in information explosion around the Indian consumer that has turned the passive consumer to a knowledgeable and vibrant consumer has given the Indian urbanites a better comprehension of lifestyles around the globe, particularly the western culture, resulting in Indian Urban young emulating the western life style. The lateral movement of the populace from rural to urban areas in search of jobs and education, movement of people from one state to another has changed the face of Indian society to cosmopolitan one. Today’s consumer no longer consumes products and services in the traditional sense but looks at the value derived through experience one undergoes in the process. Among other things one of the fall outs of Globalization is the birth of Modern retail format across products and services including fast food restaurants encompassing coffee cafes like Barista and Café Coffee Day. Over a period of time coffee drinking has travelled from the traditional coffee houses to coffee cafes.
The changing lifestyle of young, unworldly mobile middle-class revolutionalized the café culture with the young group of college girls and boys executives holding meeting with their customers on lap tops. Entrepreneurs across the professions with the constraint of not having official space use the cafes as a meeting place. Hobby groups, Journalists, writers, Women’s club’s opt coffee cafes to spend time leisurely get-together. For the people visiting coffee cafes besides coffee and eatables may be incidental but what matters to them is the space and privacy, pleasing ambience
41
International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 2, July-December (2012) and atmospherics, relaxed atmosphere where they can unwind move on to a different level and enjoy the blissful experience. Barista and Café Coffee Day are the only two major players in the Indian coffee café industry in India and the customers look at them as interchangeable brands. Therefore these two coffee café chains have been selected to study the customer’s perception of customer experience practices followed by these chains. Following is the brief comparative profile of Barista and Café Coffee Day Table 1
Year of establishment No. of storesRestaurants Products 1999 317 Vivacious Spicy Coffee, Vintage Butter Rum Coffee, Haute Hazelnut Coffee, Bespoke Coffee Chai, Polish Irish Coffee, Dazzling Cinnamon Honey Coffee, Cold/Hot coffee/Tea, Banana Smoothie, Breakfasts, sandwiches, Chicken, Calzone, Pasta, Cakes & Deserts to mention a few
Barista
1996 1319 outlets
Café Coffee Day
Cappuccino, Coffee Latte, Espresso, Coffee Mocha, Irish Coffee, Ice Coffee, Darjeeling Tea, Veggie Samosa, Masala sandwich, tikka sandwich, Chocó Doughnut, Chocó Brownie, Spicy Chicken Salzone, All American Muffin, Mirch Masala Chatka, Cookies etc to mention a few
Price Place
Differential Pricing Strategy Strategically located outlets, at High Street/ Family Entertainment Centers, in and around Malls, Cinemas
Differential Pricing Strategy Strategically located outlets, at High Street/ Family Entertainment Centers, in and around Malls, Cinemas, gas stations, near Colleges etc
Promotion
Sponsorships, collaborations, promotion: Barista Coffee Card Groomed, Trained, Courteous Pleasant, Polite and Positive Self service basis
sales
Sponsorships, collaborations, sales promotion: Cafe Coffee Day Card Groomed, Trained, Polite and Positive Self service basis Courteous. Pleasant,
People
Process
Atmospherics
Training & Development Other Merchandize
Business Sign, Aesthetically designed restaurants & menus, posters, pamphlets & Magazines, Hygiene, AC, Music, TV, Illumination 14 days rigorous training procedure for each employee: Induction & Refresher Coffee Maker, Coffee Mugs, Magic Cups, Business Card Holders, Dolls, Gift Vouchers, Barista House Premium Plunger,
Business Sign, Aesthetically designed restaurants & menus, , posters, pamphlets & Magazines, Hygiene, AC, Music, TV, Illumination 12 days rigorous training procedure for each employee: Induction & Refresher Coffee Makers, Coffee Mugs, Coffee Powders, Cookies, Men/Women T Shirts, Quick bites, Bags, Combo offers etc.
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International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 2, July-December (2012) 2. LITERATURE SURVEY ‘The customer experience is a blend of a company’s physical performance and emotions evoked, institutively measured against customer expectations.’ “A customer experience can go into such details as what colour your shoes see, what your briefcase looks like, your first opening line or your haircut, even what a customer thinks of your stature and image. That immediate contact builds a perception about the person and therefore the company and that’s part of the customer experience (Peter Scott, Customer Service Director, T-Mobile).” It’s the total experience of going into a shop. It would be every aspect of what the customer sees, feels very kind of dimension. Functional elements as well as emotional elements (Beverly Hudson Managing Director, W.H. Smith UK Retail).1” Experiences are the fourth economic offering, as distinct from services as services are from goods, but one that has until now gone largely unrecognized. Experiences have always been around, but consumers, businesses, and economists lumped them into service sector along with such uneventful activities as dry cleaning, auto repair, wholesale distribution, and telephone access. When a person buys a service, he purchases a set of
intangible activities carried out on his behalf. But when he buys a experience, he pays to spend more time enjoying series of memorable events that a company stages-as in a theatrical play-to engage him in an inherently personal way.” Experiences have necessarily emerged to create new value. Such experience offerings’ occur whenever a company intentionally uses services as the stage and goods as props to engage an individual. Whereas commodities are fungible, goods tangible, and services intangible, experiences are memorable. Buyers of experiences-we’ll
follow Disney’s lead and call them guests-value being engaged by what the company reveals over a duration of time. Just as people have cut back on goods to spend more money on services, now they also scrutinize the time and money they spend on services to make them more memorable-and more highly valued-experiences.”2 Today’s customer is not just influenced by price and quality. There are many other factors that drive him towards the store. The retailers have to pay attention to these factors i.e. formulating the right marketing strategies in order to tap more customer base and become successful in this competitive environment.3 Companies of all kinds claim to recognize that their customers are important. But what kind of experience are they providing for customers with their products, their services, their communications, and their interactions? How are customers really being treated? The answer is often “badly,” despite all
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International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 2, July-December (2012) the protestations to the contrary. Think of waiting in lines in supermarkets or on the phone. Think of products that are perfect for someone else’s lifestyle or work environment, but never yours. Think of unusable web sites, uninspiring ad campaigns, or unresponsive customer service. But not all companies provide poor experiences for their customers. Some companies deliver a great experience, and that gives them a great competitive advantage. These companies have a real understanding of the customer perspective and use that to provide service, products, and communications that are relevant to the customer’s lifestyle and deliver a consistent experience.4 “Experience” is a term that has spread throughout the business world with increasingly frequency over the course of the past decade—somewhat to the detriment of the concept. Phrases like “experience marketing,” “experience branding,” “experience design,” “experience economy,” and “360 degree branding” (a form of experience design) have proliferated, reflecting a recognition that customers relate to products and services in ways that go beyond their perception of the functional value of those offerings. Some of companies are well recognized for the success of their total customer experience—Disney and Apple, for example—and in fact acknowledge the power and value of this approach. Others are less obvious, such as John Deere, General Motors, and Procter & Gamble, yet they all identify experience as a significant factor affecting their financial performance. For all the interest in the concept of the customer experience, however, there’s been little concrete discussion of how it’s achieved. Even some of the companies that have succeeded at it seem to have gotten there by accident or, in rare instances, been led to their successes by the leadership of a marketing genius, such as Steve Jobs.”5 A store’s environment can be defined as external to the person being studied which can be measured independently of the person (Russel and Mehrabian 1976). That environment is never natural, but includes cues, messages, and suggestions to consumers (Bitner1992; Markin, Lillis and Narayan 1976)6. In sum, based on Lewin's field theory we derived the following predictions which are consistent with Maister's propositions: (1) Pre-process and post process delays will be perceived as more inconvenient, frustrating and inappropriate than in-process delays; moreover, the quality of the service will be rated lower and the consumer will be less likely to return to the restaurant for another visit. (2) Under conditions of high uncertainty about the length of the delay, the delay will be perceived as more negative than under conditions of low uncertainty. (3) Individuals will perceive a delay as more negative if they are in a high need state (very hungry) than in a low need state.7
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International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 2, July-December (2012) 3. RESEARCH OBJECTIVES
To compare customer perceptions on various customer experience elements between Barista and Café Coffee Day.
4. RESEARCH METHODOLOGY
For the purpose of the study Exploratory Research Design is used.
Convenience
sampling method is adopted for the study. Survey method is used for collecting the data. The data is collected through interviews with respondents from different professions, age, occupations & also intercepts at Barista and CCD. A well structured questionnaire is designed for the study and due care is taken to avoid any kind of ambiguity. The sample for the study is 146 respondents. Nominal scale is used for all the variables except age, income, family size, no of children wherein ratio scale is used. The study was conducted in Pune city. The study was conducted during the period 01.06.2012 to 15.07.2012.
Table No.2. KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Approx. Chi-Square Sphericity Df Sig. Table No.3. Reliability Statistics Cronbach's Alpha .916 N of Items 24 .831 1680.929 325 .000
5. DATA ANALYSIS TOOLS For the purpose of this study the following statistical tools were used • SPSS- Scale Reliability Cronbach’s Alpha, • SPSS-Kaiser-Meyer-Olkin Measure of Sampling Adequacy, • Z Test • Tables
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International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 2, July-December (2012) 6. RESEARCH HYPOTHESIS
Ho: There are no significant differences in customer perceptions for all the parameters
H1: There are significant differences in customer perceptions for all the parameters 7. Data Analysis Table No. 4
Customer Experience Factors Café Coffee Day Barista . Mea n SD N Mean SD N 73 3.70 1.210 73 4.23 .890 73 73 73 73 73 73 73 73 73 73 73 73 73 73 73 73 73 73 73 73 4.26 4.25 3.86 3.52 3.97 4.53 4.00 3.81 3.75 3.85 3.64 4.38 3.97 3.71 3.75 4.03 4.11 4.12 4.14 4.30 1.270 1.188 1.627 1.547 1.518 1.555 1.546 1.587 1.623 1.689 1.874 1.459 1.527 1.889 1.460 1.554 1.370 1.615 1.557 1.713 73 73 73 73 73 73 73 73 73 73 73 73 73 73 73 73 73 73 73 73 4.11 4.08 4.58 4.21 4.26 4.32 3.86 4.12 4.18 4.47 3.66 4.05 4.19 3.82 4.48 3.92 4.30 4.45 4.52 4.71 1.048 1.115 1.235 1.118 1.118 1.129 1.407 1.333 1.284 .914 1.685 1.499 1.023 1.531 1.119 1.402 1.244 1.014 1.260 1.275 Ho: z Accepted /Rejected -2.21 Rejected .56 Accepted .63 Accepted -2.12 Rejected -2.23 Rejected -.94 Accepted .68 .41 -.89 -1.26 -2.0 -.09 .94 -.73 -.27 -2.43 .32 Accepted Accepted Accepted Accepted Rejected Accepted Accepted Accepted Accepted Rejected Accepted
The exterior (facade) of the restaurant is appealing The Illumination in the Restaurant is pleasing to the eyes The Beauty and Aesthetics of the Restaurant is eye catching There was enough space in the isles to move comfortably in the restaurant Scent & Perfume in the Restaurant Quality of Air Conditioning in the Restaurant made my stay in the restaurant comfortable Seating arrangement in the restaurant Music in the Restaurant was soothing Price of the Products Order taking Process Delivery time taken for serving the products Availability of the Restaurants Parking Cleanliness and Hygiene of the Wash Rooms In-Restaurant displays were impressive When I entered the sales associates greeted me Taste and quality of Products Presence of well groomed & Trained Staff added charm to the Restaurant environment The quality of fellow diners added to the overall satisfying restaurant environment I derived value for money and time spent in the restaurant I will definitely talk good about the Restaurant to my friends I am happy and delighted to have wonderful experience in the Restaurant
-.61 Accepted -.74 Accepted -1.15 Accepted -1.28 Accepted
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International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 2, July-December (2012)
8. DISCUSSION 1. Appeal of the store from outside
A good-looking façade is important as it helps stimulate desire to visit the store. Store facade attracts attention and provides consumers an out-of-the-world shopping experience, convenience and satisfaction.store. Store entrance makes a statement to your buyers. It sets the tone for retailer’s products and services and also creates visual appeal to attract clients to enter in the stores. Each store needs to constantly invest in re-inventing itself, whether in terms of display, façade, interiors or products. The elements of store façade include height of the building,
color scheme, business sign, parking areas, the neighborhood, window displays, illumination of the frontage, approach & the entry door of the store, to mention a few. The CCD and Barista outlets are located on High Streets with high traffic density and flanked by large and attractive stores selling high end branded products with eye catching facades. The Coffee Cafes have to compete with the other stores to gain the attention of the shoppers. Therefore it is all the more essential on the part of coffee cafes to keep the façade more and more different, attractive, eye catching and appealing to the customers.
2. There was enough space in the isles to move comfortably in the restaurant
Isle is the place between two racks. If the space between two racks is too narrow in the isles then it is not possible to move freely between the isles. The customers often shop with their social groups and need personal space. Personal space is an issue when trespassed causes customers to feel uncomfortable and frustrated. Personal space in a retail stores viewed from the perspective of retail environment suggests that when a shopper is bumped or jostled while looking at merchandise, may become uncomfortable, get annoyed, lose interest, and leave the area. Therefore provision of enough spaces for the customers to maneuver makes the customers comfortable and results in customers spending more time in the store thereby increasing the possibility of spending more &translating into enhanced profitability for
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International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 2, July-December (2012)
the stores. Since Aisles are part of the store design the same may be incorporated in the store design stage itself anticipating future footfalls in the store. 3. Scent & Perfume in the Restaurant
Our sense of small works continuously and therefore it evokes immediate and emotional response and as such it can be effectively used as strategic element in the store atmospherics. Ambient scents are the general odors that do not emanate from a product but are present as part of the retail environment. We as human beings like pleasant fragrances/odors and their presence in our vicinity make us happy and have a positive impact on our behavior and result in a motivated state of mind, more purchases and strengthening of bond with the store. The intention of the customers who visit coffee cafes is to unwind, relax and spend memorable time in the café. Therefore odors which are pleasing to sense of smell can transport the customer altogether to a different level, motivate, spend more time in the café thereby increasing the probability of spending more & generate referrals. The coffee cafes therefore need to take cognizance of the impact of odors ‘on consumer buying behavior and factor it in as an important element in the store atmospherics. 4. Delivery time taken for serving the products
Though Customers visit coffee cafes for spending time in a relaxed & leisurely manner still it is relative to the time at their disposal. Therefore any delay in service delivery process will have a negative impact on the customer. Customers will be satisfied if their perceived delivery-times are shorter than their expectations. It is a common experience that uncertain waits and unexplained waits seem longer. In a restaurant setting delays are likely to take place due to inefficiencies in the service delivery process or circumstantial reasons like peak hours, unpredictable flow of customers, crowding etc. Therefore it calls on the part of the restaurant managers to remove the flaws in the delivery process in the first place and understand the circumstantial factors that influence the customer’s reactions to delay in service delivery and taking corrective actions can lead to customer satisfaction
5. Taste and quality of Products We consume food to keep ourselves energized and healthy. When we look at the Indian culture, in addition to keep us going, enjoyment-taste and quality- is one of the most important aspect of consuming food. Given the diversity of cultures coupled with diversity in food habits from the region to region, state to state and within the state it is evident that customers look at the quality and taste of a given product from different perspectives. The increasing urbanization and lateral movement of the people is making the cities and town more and more cosmopolitan. Given the scenario it therefore calls on the part of the restaurants to have deeper understanding of the changing tastes of the diverse customers. It is observed that other than the base product, coffee, the coffee cafes are outsourcing other products. It is therefore calls on the part of the coffee cafes to keep a keen eye on the taste and quality of the products leading to customer satisfaction.
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International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 2, July-December (2012) 9. REFERENCES 1. Colin Shaw & John Evans. Building Great Customer Experiences PP6. New York. 2002. 2. B.Joseph Pine II & James H. Gilmore. The Experience Economy. Boston. Harvard Business School Press. 3. Ruchi Malik. To Build A Model For The Determination Of Factors That Result In The Success Of The Organized Retail Sector In India And Analyzing Its Relative Importance (With Reference To Fast Food Chains And Grocery And Vegetable Outlets. Indian Journal of Marketing. Volume 42, Number 2, 2012. http://www.indianjournalofmarketing.com/archives/2012/feb2012.html. 4. Bernd Schmitt. Competitive Advantage through The Customer Experience. The ex group Customer Experience Consultants. http://www.exgroup.com/thought_leadership/articles/competitive_advantage_cem.pdf. 5. Steve Diller, Nathan Shedroff & Darrel Rhea. Making Meaning: How Successful Businesses’ Deliver Meaningful Customer Experiences. Excerpts. http://www.makingmeaning.org/ 6. Referred from Shaked Gilboa and Anat Rafaeli: Store Environment, Emotions and Approach Behavior: Applying Environmental Aesthetics to Retailing http://iew3technion.ac.il/Home/Users/anatr/COMPLE-FINAL-20-11-02.pdf 7. Laurette Dube-Rioux, BerndH.Schmitt, France Leclerc, Consumers' Reactions to Waiting: When Delays Affect the Perception of Service Quality. Advances in Consumer Research Volume 16, 1989 Pages 59-63. http://www.acrwebsite.org/search/view-conferenceproceedings.aspx?Id=6881 8. Greg W.Marshall, Mark W. Johnston. Marketing Management. New York. 2010. McGrawHill Irwin 9. Michael Levy, Barton A Weitz and Ajay Pandit. Retailing Management, Sixth Edition. Chapter 18, New Delhi. Tata McGraw-Hill Publishing Company Limited. 10. C.R.Kothari, Research Methodology, Methods & Techniques by, Second revised edition, 2010, New Age International (P) Ltd, New Delhi, India. 11. Schiff man & Kanuk, Consumer Behaviour, 9th Edition, Pearson. 12. Anantnarayan & Jayashree Nimagadda. A Hand Book of Research Process - 2009 edition, Macmillan Publishers India Limited, New Delhi, India. 13. S.C.Gupta, Fundamentals of Statistics, sixth revised and enlarged edition, 2010, Himalaya Publishing House, Mumbai, India
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doc_122699199.pdf
COMPARATIVE STUDY OF CUSTOMER EXPERIENCE AT CCD VS BARISTA
International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 INTERNATIONAL JOURNAL OF ADVANCED RESEARCH (Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 2, July-December (2012) IN MANAGEMENT (IJARM) ISSN 0976 - 6324 (Print) ISSN 0976 - 6332 (Online) Volume 3, Issue 2, July-December (2012), pp. 40-49 © IAEME: www.iaeme.com/ijarm.asp Journal Impact Factor (2012): 2.8021 (Calculated by GISI) www.jifactor.com
IJARM
©IAEME
A COMPARATIVE STUDY OF CUSTOMER EXPERIENCE IN CAFÉ COFFEE DAY VS BARISTA
Vijay.R.Kulkarni M.Com, MBA Assistant Professor Sinhagad Institute of Management and Computer Applications Pune, Maharashtra, India Email: [email protected] ABSTRACT The study is about customer perceptions about customer experience practices of Barista vs. Cafe Coffee Day. The study was conducted in the city of Pune (India) during 01.06.2012 to 15.07.2012.For the purpose of this study Exploratory Research Design is used. Convenience sampling method is adopted for the study. Survey method is used for collecting the data. The data is collected through interviews with respondents from different professions, age, occupations & also intercepts at Barista and CCD. The sample for the study is 146 respondents. Nominal scale is used for all the variables except age, income, family size, no of children wherein ratio scale is used. SPSS 17 versions is used. Various statistical tools like Cronbach’s Alpha for Scale Reliability, Kaiser-Meyer-Olkin Measure of Sampling Adequacy and z test are used for data analysis. The findings of the study reveal that of the twenty five variables considered in the study customer’s perception is found to be unfavorable in case of four variables viz. 1) Exterior (facade) of the restaurant 2) Enough space in the isles to move comfortably in the restaurant 3) Scent & Perfume in the Restaurant 4) Delivery time taken for serving the products & 5) Taste and quality of Products.
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International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 2, July-December (2012) Key Words: Comparative Analysis, Customer Perceptions, Coffee Cafes, Taste & Quality of food 1. INTRODUCTION Drinking coffee and tea is an inseparable part of Indian culture with south dominated by coffee drinking. Offering tea or coffee to guests in any house hold is the minimum courtesy shown by Indians to the guests. Discussion over a cup of tea or coffee with friends during college days has been a common feature amongst all Indians. In the pre-independence era Coffee houses belonging to Indian Coffee Board were the meeting places for the intellectuals, freedom fighters, politicians’ and social activists etc. to discuss issues over a cup of coffee in the informal atmosphere of the coffee house. The tradition still continued albeit the existing restaurants available around. Due to liberalization; the television penetration, internet and phenomenal growth in mobile usage has resulted in information explosion around the Indian consumer that has turned the passive consumer to a knowledgeable and vibrant consumer has given the Indian urbanites a better comprehension of lifestyles around the globe, particularly the western culture, resulting in Indian Urban young emulating the western life style. The lateral movement of the populace from rural to urban areas in search of jobs and education, movement of people from one state to another has changed the face of Indian society to cosmopolitan one. Today’s consumer no longer consumes products and services in the traditional sense but looks at the value derived through experience one undergoes in the process. Among other things one of the fall outs of Globalization is the birth of Modern retail format across products and services including fast food restaurants encompassing coffee cafes like Barista and Café Coffee Day. Over a period of time coffee drinking has travelled from the traditional coffee houses to coffee cafes.
The changing lifestyle of young, unworldly mobile middle-class revolutionalized the café culture with the young group of college girls and boys executives holding meeting with their customers on lap tops. Entrepreneurs across the professions with the constraint of not having official space use the cafes as a meeting place. Hobby groups, Journalists, writers, Women’s club’s opt coffee cafes to spend time leisurely get-together. For the people visiting coffee cafes besides coffee and eatables may be incidental but what matters to them is the space and privacy, pleasing ambience
41
International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 2, July-December (2012) and atmospherics, relaxed atmosphere where they can unwind move on to a different level and enjoy the blissful experience. Barista and Café Coffee Day are the only two major players in the Indian coffee café industry in India and the customers look at them as interchangeable brands. Therefore these two coffee café chains have been selected to study the customer’s perception of customer experience practices followed by these chains. Following is the brief comparative profile of Barista and Café Coffee Day Table 1
Year of establishment No. of storesRestaurants Products 1999 317 Vivacious Spicy Coffee, Vintage Butter Rum Coffee, Haute Hazelnut Coffee, Bespoke Coffee Chai, Polish Irish Coffee, Dazzling Cinnamon Honey Coffee, Cold/Hot coffee/Tea, Banana Smoothie, Breakfasts, sandwiches, Chicken, Calzone, Pasta, Cakes & Deserts to mention a few
Barista
1996 1319 outlets
Café Coffee Day
Cappuccino, Coffee Latte, Espresso, Coffee Mocha, Irish Coffee, Ice Coffee, Darjeeling Tea, Veggie Samosa, Masala sandwich, tikka sandwich, Chocó Doughnut, Chocó Brownie, Spicy Chicken Salzone, All American Muffin, Mirch Masala Chatka, Cookies etc to mention a few
Price Place
Differential Pricing Strategy Strategically located outlets, at High Street/ Family Entertainment Centers, in and around Malls, Cinemas
Differential Pricing Strategy Strategically located outlets, at High Street/ Family Entertainment Centers, in and around Malls, Cinemas, gas stations, near Colleges etc
Promotion
Sponsorships, collaborations, promotion: Barista Coffee Card Groomed, Trained, Courteous Pleasant, Polite and Positive Self service basis
sales
Sponsorships, collaborations, sales promotion: Cafe Coffee Day Card Groomed, Trained, Polite and Positive Self service basis Courteous. Pleasant,
People
Process
Atmospherics
Training & Development Other Merchandize
Business Sign, Aesthetically designed restaurants & menus, posters, pamphlets & Magazines, Hygiene, AC, Music, TV, Illumination 14 days rigorous training procedure for each employee: Induction & Refresher Coffee Maker, Coffee Mugs, Magic Cups, Business Card Holders, Dolls, Gift Vouchers, Barista House Premium Plunger,
Business Sign, Aesthetically designed restaurants & menus, , posters, pamphlets & Magazines, Hygiene, AC, Music, TV, Illumination 12 days rigorous training procedure for each employee: Induction & Refresher Coffee Makers, Coffee Mugs, Coffee Powders, Cookies, Men/Women T Shirts, Quick bites, Bags, Combo offers etc.
42
International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 2, July-December (2012) 2. LITERATURE SURVEY ‘The customer experience is a blend of a company’s physical performance and emotions evoked, institutively measured against customer expectations.’ “A customer experience can go into such details as what colour your shoes see, what your briefcase looks like, your first opening line or your haircut, even what a customer thinks of your stature and image. That immediate contact builds a perception about the person and therefore the company and that’s part of the customer experience (Peter Scott, Customer Service Director, T-Mobile).” It’s the total experience of going into a shop. It would be every aspect of what the customer sees, feels very kind of dimension. Functional elements as well as emotional elements (Beverly Hudson Managing Director, W.H. Smith UK Retail).1” Experiences are the fourth economic offering, as distinct from services as services are from goods, but one that has until now gone largely unrecognized. Experiences have always been around, but consumers, businesses, and economists lumped them into service sector along with such uneventful activities as dry cleaning, auto repair, wholesale distribution, and telephone access. When a person buys a service, he purchases a set of
intangible activities carried out on his behalf. But when he buys a experience, he pays to spend more time enjoying series of memorable events that a company stages-as in a theatrical play-to engage him in an inherently personal way.” Experiences have necessarily emerged to create new value. Such experience offerings’ occur whenever a company intentionally uses services as the stage and goods as props to engage an individual. Whereas commodities are fungible, goods tangible, and services intangible, experiences are memorable. Buyers of experiences-we’ll
follow Disney’s lead and call them guests-value being engaged by what the company reveals over a duration of time. Just as people have cut back on goods to spend more money on services, now they also scrutinize the time and money they spend on services to make them more memorable-and more highly valued-experiences.”2 Today’s customer is not just influenced by price and quality. There are many other factors that drive him towards the store. The retailers have to pay attention to these factors i.e. formulating the right marketing strategies in order to tap more customer base and become successful in this competitive environment.3 Companies of all kinds claim to recognize that their customers are important. But what kind of experience are they providing for customers with their products, their services, their communications, and their interactions? How are customers really being treated? The answer is often “badly,” despite all
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International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 2, July-December (2012) the protestations to the contrary. Think of waiting in lines in supermarkets or on the phone. Think of products that are perfect for someone else’s lifestyle or work environment, but never yours. Think of unusable web sites, uninspiring ad campaigns, or unresponsive customer service. But not all companies provide poor experiences for their customers. Some companies deliver a great experience, and that gives them a great competitive advantage. These companies have a real understanding of the customer perspective and use that to provide service, products, and communications that are relevant to the customer’s lifestyle and deliver a consistent experience.4 “Experience” is a term that has spread throughout the business world with increasingly frequency over the course of the past decade—somewhat to the detriment of the concept. Phrases like “experience marketing,” “experience branding,” “experience design,” “experience economy,” and “360 degree branding” (a form of experience design) have proliferated, reflecting a recognition that customers relate to products and services in ways that go beyond their perception of the functional value of those offerings. Some of companies are well recognized for the success of their total customer experience—Disney and Apple, for example—and in fact acknowledge the power and value of this approach. Others are less obvious, such as John Deere, General Motors, and Procter & Gamble, yet they all identify experience as a significant factor affecting their financial performance. For all the interest in the concept of the customer experience, however, there’s been little concrete discussion of how it’s achieved. Even some of the companies that have succeeded at it seem to have gotten there by accident or, in rare instances, been led to their successes by the leadership of a marketing genius, such as Steve Jobs.”5 A store’s environment can be defined as external to the person being studied which can be measured independently of the person (Russel and Mehrabian 1976). That environment is never natural, but includes cues, messages, and suggestions to consumers (Bitner1992; Markin, Lillis and Narayan 1976)6. In sum, based on Lewin's field theory we derived the following predictions which are consistent with Maister's propositions: (1) Pre-process and post process delays will be perceived as more inconvenient, frustrating and inappropriate than in-process delays; moreover, the quality of the service will be rated lower and the consumer will be less likely to return to the restaurant for another visit. (2) Under conditions of high uncertainty about the length of the delay, the delay will be perceived as more negative than under conditions of low uncertainty. (3) Individuals will perceive a delay as more negative if they are in a high need state (very hungry) than in a low need state.7
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International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 2, July-December (2012) 3. RESEARCH OBJECTIVES
To compare customer perceptions on various customer experience elements between Barista and Café Coffee Day.
4. RESEARCH METHODOLOGY
For the purpose of the study Exploratory Research Design is used.
Convenience
sampling method is adopted for the study. Survey method is used for collecting the data. The data is collected through interviews with respondents from different professions, age, occupations & also intercepts at Barista and CCD. A well structured questionnaire is designed for the study and due care is taken to avoid any kind of ambiguity. The sample for the study is 146 respondents. Nominal scale is used for all the variables except age, income, family size, no of children wherein ratio scale is used. The study was conducted in Pune city. The study was conducted during the period 01.06.2012 to 15.07.2012.
Table No.2. KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Approx. Chi-Square Sphericity Df Sig. Table No.3. Reliability Statistics Cronbach's Alpha .916 N of Items 24 .831 1680.929 325 .000
5. DATA ANALYSIS TOOLS For the purpose of this study the following statistical tools were used • SPSS- Scale Reliability Cronbach’s Alpha, • SPSS-Kaiser-Meyer-Olkin Measure of Sampling Adequacy, • Z Test • Tables
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International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 2, July-December (2012) 6. RESEARCH HYPOTHESIS
Ho: There are no significant differences in customer perceptions for all the parameters
H1: There are significant differences in customer perceptions for all the parameters 7. Data Analysis Table No. 4
Customer Experience Factors Café Coffee Day Barista . Mea n SD N Mean SD N 73 3.70 1.210 73 4.23 .890 73 73 73 73 73 73 73 73 73 73 73 73 73 73 73 73 73 73 73 73 4.26 4.25 3.86 3.52 3.97 4.53 4.00 3.81 3.75 3.85 3.64 4.38 3.97 3.71 3.75 4.03 4.11 4.12 4.14 4.30 1.270 1.188 1.627 1.547 1.518 1.555 1.546 1.587 1.623 1.689 1.874 1.459 1.527 1.889 1.460 1.554 1.370 1.615 1.557 1.713 73 73 73 73 73 73 73 73 73 73 73 73 73 73 73 73 73 73 73 73 4.11 4.08 4.58 4.21 4.26 4.32 3.86 4.12 4.18 4.47 3.66 4.05 4.19 3.82 4.48 3.92 4.30 4.45 4.52 4.71 1.048 1.115 1.235 1.118 1.118 1.129 1.407 1.333 1.284 .914 1.685 1.499 1.023 1.531 1.119 1.402 1.244 1.014 1.260 1.275 Ho: z Accepted /Rejected -2.21 Rejected .56 Accepted .63 Accepted -2.12 Rejected -2.23 Rejected -.94 Accepted .68 .41 -.89 -1.26 -2.0 -.09 .94 -.73 -.27 -2.43 .32 Accepted Accepted Accepted Accepted Rejected Accepted Accepted Accepted Accepted Rejected Accepted
The exterior (facade) of the restaurant is appealing The Illumination in the Restaurant is pleasing to the eyes The Beauty and Aesthetics of the Restaurant is eye catching There was enough space in the isles to move comfortably in the restaurant Scent & Perfume in the Restaurant Quality of Air Conditioning in the Restaurant made my stay in the restaurant comfortable Seating arrangement in the restaurant Music in the Restaurant was soothing Price of the Products Order taking Process Delivery time taken for serving the products Availability of the Restaurants Parking Cleanliness and Hygiene of the Wash Rooms In-Restaurant displays were impressive When I entered the sales associates greeted me Taste and quality of Products Presence of well groomed & Trained Staff added charm to the Restaurant environment The quality of fellow diners added to the overall satisfying restaurant environment I derived value for money and time spent in the restaurant I will definitely talk good about the Restaurant to my friends I am happy and delighted to have wonderful experience in the Restaurant
-.61 Accepted -.74 Accepted -1.15 Accepted -1.28 Accepted
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International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 2, July-December (2012)
8. DISCUSSION 1. Appeal of the store from outside
A good-looking façade is important as it helps stimulate desire to visit the store. Store facade attracts attention and provides consumers an out-of-the-world shopping experience, convenience and satisfaction.store. Store entrance makes a statement to your buyers. It sets the tone for retailer’s products and services and also creates visual appeal to attract clients to enter in the stores. Each store needs to constantly invest in re-inventing itself, whether in terms of display, façade, interiors or products. The elements of store façade include height of the building,
color scheme, business sign, parking areas, the neighborhood, window displays, illumination of the frontage, approach & the entry door of the store, to mention a few. The CCD and Barista outlets are located on High Streets with high traffic density and flanked by large and attractive stores selling high end branded products with eye catching facades. The Coffee Cafes have to compete with the other stores to gain the attention of the shoppers. Therefore it is all the more essential on the part of coffee cafes to keep the façade more and more different, attractive, eye catching and appealing to the customers.
2. There was enough space in the isles to move comfortably in the restaurant
Isle is the place between two racks. If the space between two racks is too narrow in the isles then it is not possible to move freely between the isles. The customers often shop with their social groups and need personal space. Personal space is an issue when trespassed causes customers to feel uncomfortable and frustrated. Personal space in a retail stores viewed from the perspective of retail environment suggests that when a shopper is bumped or jostled while looking at merchandise, may become uncomfortable, get annoyed, lose interest, and leave the area. Therefore provision of enough spaces for the customers to maneuver makes the customers comfortable and results in customers spending more time in the store thereby increasing the possibility of spending more &translating into enhanced profitability for
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International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 2, July-December (2012)
the stores. Since Aisles are part of the store design the same may be incorporated in the store design stage itself anticipating future footfalls in the store. 3. Scent & Perfume in the Restaurant
Our sense of small works continuously and therefore it evokes immediate and emotional response and as such it can be effectively used as strategic element in the store atmospherics. Ambient scents are the general odors that do not emanate from a product but are present as part of the retail environment. We as human beings like pleasant fragrances/odors and their presence in our vicinity make us happy and have a positive impact on our behavior and result in a motivated state of mind, more purchases and strengthening of bond with the store. The intention of the customers who visit coffee cafes is to unwind, relax and spend memorable time in the café. Therefore odors which are pleasing to sense of smell can transport the customer altogether to a different level, motivate, spend more time in the café thereby increasing the probability of spending more & generate referrals. The coffee cafes therefore need to take cognizance of the impact of odors ‘on consumer buying behavior and factor it in as an important element in the store atmospherics. 4. Delivery time taken for serving the products
Though Customers visit coffee cafes for spending time in a relaxed & leisurely manner still it is relative to the time at their disposal. Therefore any delay in service delivery process will have a negative impact on the customer. Customers will be satisfied if their perceived delivery-times are shorter than their expectations. It is a common experience that uncertain waits and unexplained waits seem longer. In a restaurant setting delays are likely to take place due to inefficiencies in the service delivery process or circumstantial reasons like peak hours, unpredictable flow of customers, crowding etc. Therefore it calls on the part of the restaurant managers to remove the flaws in the delivery process in the first place and understand the circumstantial factors that influence the customer’s reactions to delay in service delivery and taking corrective actions can lead to customer satisfaction
5. Taste and quality of Products We consume food to keep ourselves energized and healthy. When we look at the Indian culture, in addition to keep us going, enjoyment-taste and quality- is one of the most important aspect of consuming food. Given the diversity of cultures coupled with diversity in food habits from the region to region, state to state and within the state it is evident that customers look at the quality and taste of a given product from different perspectives. The increasing urbanization and lateral movement of the people is making the cities and town more and more cosmopolitan. Given the scenario it therefore calls on the part of the restaurants to have deeper understanding of the changing tastes of the diverse customers. It is observed that other than the base product, coffee, the coffee cafes are outsourcing other products. It is therefore calls on the part of the coffee cafes to keep a keen eye on the taste and quality of the products leading to customer satisfaction.
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International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 3, Issue 2, July-December (2012) 9. REFERENCES 1. Colin Shaw & John Evans. Building Great Customer Experiences PP6. New York. 2002. 2. B.Joseph Pine II & James H. Gilmore. The Experience Economy. Boston. Harvard Business School Press. 3. Ruchi Malik. To Build A Model For The Determination Of Factors That Result In The Success Of The Organized Retail Sector In India And Analyzing Its Relative Importance (With Reference To Fast Food Chains And Grocery And Vegetable Outlets. Indian Journal of Marketing. Volume 42, Number 2, 2012. http://www.indianjournalofmarketing.com/archives/2012/feb2012.html. 4. Bernd Schmitt. Competitive Advantage through The Customer Experience. The ex group Customer Experience Consultants. http://www.exgroup.com/thought_leadership/articles/competitive_advantage_cem.pdf. 5. Steve Diller, Nathan Shedroff & Darrel Rhea. Making Meaning: How Successful Businesses’ Deliver Meaningful Customer Experiences. Excerpts. http://www.makingmeaning.org/ 6. Referred from Shaked Gilboa and Anat Rafaeli: Store Environment, Emotions and Approach Behavior: Applying Environmental Aesthetics to Retailing http://iew3technion.ac.il/Home/Users/anatr/COMPLE-FINAL-20-11-02.pdf 7. Laurette Dube-Rioux, BerndH.Schmitt, France Leclerc, Consumers' Reactions to Waiting: When Delays Affect the Perception of Service Quality. Advances in Consumer Research Volume 16, 1989 Pages 59-63. http://www.acrwebsite.org/search/view-conferenceproceedings.aspx?Id=6881 8. Greg W.Marshall, Mark W. Johnston. Marketing Management. New York. 2010. McGrawHill Irwin 9. Michael Levy, Barton A Weitz and Ajay Pandit. Retailing Management, Sixth Edition. Chapter 18, New Delhi. Tata McGraw-Hill Publishing Company Limited. 10. C.R.Kothari, Research Methodology, Methods & Techniques by, Second revised edition, 2010, New Age International (P) Ltd, New Delhi, India. 11. Schiff man & Kanuk, Consumer Behaviour, 9th Edition, Pearson. 12. Anantnarayan & Jayashree Nimagadda. A Hand Book of Research Process - 2009 edition, Macmillan Publishers India Limited, New Delhi, India. 13. S.C.Gupta, Fundamentals of Statistics, sixth revised and enlarged edition, 2010, Himalaya Publishing House, Mumbai, India
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