final a study on consumer preference on cafe coffee da1

8/18/2019 Final a Study on Consumer Preference on Cafe Coffee Da1

1/29

A STUDY ON CONSUMER PREFERENCE ON CAFE COFFEE DAY

The report submitted to the Department of Management studies in partial

fulfilment for the award of the degree of

MASTER OF BUSINESS ADMINISITRATION

SUBMITTED BY

T.G.BRIYANGA

REG. NO: 1511022

Under the g!d"n#e $%

Dr. M. &ee'"n"nth"n

De("rt)ent $% M"n"ge)ent Std!e*

T+IAGARA&AR SC+OO, OF MANAGEMENT-AUTONOMOUS

-A%%!/!"ted t$ M"dr"! ")"r" Un!'er*!t

M"dr"! 3 425 004.


2/29

TAB,E OF CONTENT

TOPIC PAGE NO.

ACNO,EDGEMENT I

C+APTER 1 INTRODUCTION 1

1.1 Background

1.2 Growth Of Cafe Industry In India1.3 Cafe Coffee Day

1.4 Scope of the study

1. O!"ecti#e of the study

C+APTER 2 RE6IE OF ,ITERATURE

2.1 $e#iew of %iterature

C+APTER 7 RESEARC+ MET+ODO,OGY

3.1 $esearch Design

3.2 Data Sources

3.3 Sa&p%ing

3.4 Sa&p%ing 'echni(ue

3. 'oo%s )or *na%ysis

C+APTER 8 ANA,YSIS AND INTERPRETATION

4.1 *na%ysis a&ong $espondents

C+APTER 5 RECOMMENDATION AND ,IMITATION

.1 )indings

.2 +i&itations

C+APTER 4

CONC,USION

APPENDI9

i. Bi!%iography

ii. $eferences

iii. ,uestionnaire

ACNO,EDGEMENT


3/29

We take this opportunity to express our deepest and sincere gratitude to our professor

Dr. M. ee!ananthan" for his insightfu# ad!ice" $oti!ating suggestions" in!a#ua%#e guidance"

he#p and support in successfu# co$p#etion of this pro&ect and a#so for his constant

encourage$ent and ad!ice throughout our course.

We 'ou#d #ike to con!ey our thanks to the teaching and non(teaching staff of the )hiagara&ar

*choo# of Manage$ent for their in!a#ua%#e he#p and support throughout the course. We are

a#so gratefu# to a## our c#ass$ates for their he#p" encourage$ent and in!a#ua%#e suggestions.

C+APTER I

1. INTRODUCTION

1. 1 BACGROUND : )oday +offee has %eco$e a #ifesty#e. A#so" it has caught the fancy of

today,s generation ( youth. )hese 'ere not the typica# coffee drinking target


4/29

custo$ers. -ut no' they are a %ig part of the target %ase for coffeehouses. And it is

fashiona%#e to %e seen at the +offee Pu%s. It is in a 'ay" a #ifesty#e state$ent. )hat is

%ad ne's for tea ( sti## the fa!ourite %re' for a $a&ority of Indians" 'hich has %een

#osing out to coffee in recent years. India is one of the 'or#d,s #argest exporters of tea

and a#so one of its %iggest consu$ers. -ut it is coffee drinking 'hich is increasing#y

%eco$ing a state$ent of young and up'ard#y $o%i#e Indians. And coffee %ars" an

unheard of concept ti## a coup#e of years ago" are sudden#y %ig %usiness. +orner %ars

#ike these are offering $ore than &ust coffee and snacks to their custo$ers. or $any

of their regu#ar patrons" a !isit to these %ars is a#so a part of the 'estern #ifesty#e they

so $uch 'ant to identify 'ith. )he +offee retai#ing sector in India is %oo$ing today"

'ith se!era# co$panies acti!e in the $arket. *o$e are #oca# entities" so$e ha!e co$e

fro$ a%road and ha!e tied up 'ith #oca# co$panies" and so$e see$ to prepare

the$se#!es for an entry sooner or #ater. )he $arket gro'th is expected to %e /0 to

02 annua##y in the next coup#e of years.

1.2 GROT+ OF CAFE INDUSTRY IN INDIA

3ot %e!erages ha!e a#'ays %een a part of the tradition of India"

especia##y *outh India. +offee took the first seat in *outh India 'hen the traditiona# -rah$in

c#asses %rought do'n the %e!erage fro$ the ru#ing -ritish around the 140s. During the ear#y

years the drink 'as confined on#y to traditiona# rich -rah$in fa$i#ies 'ho ser!ed fi#ter

coffee in a 5da!ra( tu$%#er6. +offee is no $ore confined to the rich -rah$in c#ass no'"

though the tradition of ser!ing fi#ter coffee in the 5da!ra( tu$%#er6 continues to this day. In

order to spread the drink" coffee houses e$erged at !arious p#aces in the country" 'hich a#so


5/29

ser!ed as the opposite p#aces for #a'yers and the educated c#ass to ho#d discussions ranging

fro$ po#itics to cine$a. It is a#so %e#ie!ed that $any scripts and ideas for fi#$s e!o#!ed here.

One of the o#dest coffee houses in *outh India is the 7aayars $ess" +hennai" 'hich ser!es

first c#ass fi#ter coffee e!en today. )he $ess 'as esta%#ished in the 1480s and continues the

tradition of coffee %ut supp#e$ents it 'ith 1 tiffin a#so. )he !intage #ocation of the $ess

attracts huge cro'ds e!en today ear#y in the $ornings" +offee ho'e!er 'as not the on#y ite$

on the $enu. )hese p#aces a#so ser!ed food and other drinks to their custo$ers.

1.7 CAFE COFFEE DAY

+afe +offee Day is a di!ision of India,s #argest coffee

cong#o$erate" A$a#ga$ated -ean +offee )rading +o$pany 9td. :A-+)+9;" popu#ar#y

kno'n as +offee Day" a 7s. 00 +rore I*O 400/ certified co$pany. +offee Day sources

coffee fro$


6/29

Europe" Eurasia" Egypt and *outh East Asia in the co$ing $onths.

1.8 SCOPE OF T+E STUDY

)he purpose of the study is to kno' the different pro%#e$s faced %y the indi!idua#s 'ho

are !isiting +afe +offee Day. )heir #e!e# of a'areness a%out the !arious aspects of prices"

products and it6s a!ai#a%i#ity at cafe coffee day are sur!eyed. No'(a(days" indi!idua# 'ho

are !isiting caf coffee day #ook out for $any faci#ities and co$fort Hone. )he $ain

purpose of this study is to understand the different pro%#e$s faced %y the indi!idua# 'ho

are !isiting cafe coffee day and 'hat are their preferences to'ards it and a#so to gi!e

!isitors suggestion to so#!e the pro%#e$s.

1.5 OB&ECTI6E OF T+E STUDY

)o study a%out the custo$er preference to'ards +afe +offee Day

)o study the !arious factors inf#uencing the custo$er to !isit +afe +offee

Day

)o study a%out the attitude of the custo$er to'ards the +afe +offee Day.

)his research pro&ect 'i## inc#ude the fo##o'ing issues ( Identifying the factors that

inf#uence the custo$er the $ost :factors such as coffee taste" a$%iance" afforda%i#ity;

+usto$ers purchasing %eha!iour and attitude to'ards coffee houses :in ter$s that for

'hat purpose they !isit a coffee(house" on 'hat occasions they prefer to !isit a coffee(

house" 'ho inf#uence their preference" ho' $uch they spend etc.;

C+APTER II

2. RE6IE OF ,ITERATURE

+usto$er preferences is a &udg$ent %y the custo$er" post purchase.


7/29

)he $ost popu#ar !ie' of custo$er preferences in acade$ia is that custo$er preferences

is the &udg$ent %orne out of the co$parison of preJpurchase expectations 'ith post

purchase e!a#uation of the product or ser!ice experience :O#i!er" 144B;. +usto$er

preferences can resu#t fro$ any di$ension :'hether or not it is Kua#ity re#ated; and its

&udg$ents $ay arise fro$ non(Kua#ity issues :e.g. needs" eKuity" perceptions of 5fairness6;

and reKuire experience 'ith the ser!ice or pro!ider :)ay#or and -aker1448;L 3o'ard and

*eth" 144;. *trong #inkages ha!e %een apparent %et'een ser!ice Kua#ity di$ensions :for

exa$p#e speedy responses to enKuiries; and o!era## custo$er preferences :Anderson and

*u##i!an" 144;.

*eth et a# :/00; ana#ysed that there is re#ati!e i$portance of

ser!ice Kua#ity attri%utes and sho'ed that responsi!eness is the $ost i$portance

di$ension fo##o'ed %y re#ia%i#ity" custo$er percei!ed net'ork Kua#ity" assurance"

con!enience" e$pathy.

Carun ).+. :/00; in his study F+onsu$er preferences of +offee in

arnataka $entioned +offee is drunk in $ost countries" %ut typica##y one predo$inates.

+offee is the preferred drink in Europe and A$erica. =nti# the ear#y eighteenth century"

coffee production and consu$ption 'as confined to the Is#a$ic Wor#d. European traders

a#tered this pattern dra$atica##y. )he present pattern of coffee consu$ption is inf#uenced

%y inco$e per capita. 7e#igious inf#uence p#ayed so$e part in the ear#y de!e#op$ent of

coffee %ut ha!e #itt#e re#e!ance at the present. In the past" coffee 'as regarded as an o#d

fashioned %e!erage for o#der peop#e" 'ith &ust t'o f#a!ours regu#ar and decaf. +offee" of

#ate has %eco$e re#e!ant and conte$porary.

C+APTER III

7. RESEARC+ MET+ODO,OGY

7esearch $ethodo#ogy is a 'ay to syste$atica##y so#!e the research

pro%#e$. )his section exp#ains a%out the #ogic %ehind the $ethods 'e used in the context of


8/29

our research and exp#ain 'hy 'e used a particu#ar $ethod or techniKue and not the other

techniKues so that research resu#ts are capa%#e of %eing e!a#uated easi#y and accurate#y.

7.1 RESEARC+ DESIGN

A research design is the arrange$ent of conditions for co##ection and

ana#ysis of data in a $anner that ai$s to co$%ine re#e!ance to the research purpose 'ith

econo$y in procedure. )he $ethodo#ogy used in pro&ect is Descripti!e 7esearch. Descripti!e

research studies are those studies 'hich are concerned 'ith descri%ing the characteristics of a

particu#ar indi!idua# or a group.

Descripti!e research is a#so ter$ed as Ex post facto research. )he $ain

characteristic of this $ethod is that the researcher has no contro# o!er the !aria%#esL one can

on#y report 'hat has happened or 'hat is happening. *ince our o%&ecti!e 'as to deter$ine

the factors of happiness a$ong a sa$p#e 'e used descripti!e research design.

7.2 DATA SOURCES

*ince our o%&ecti!e is to find out a rea# #ife pro%#e$ it is often found that

data at hand are inadeKuate" and hence" it %eco$es necessary to co##ect data %ased on our

o%&ecti!e. )here are se!era# 'ays of co##ecting data 'hich differ considera%#y in context of

$oney costs" ti$e and other resources.

PRIMARY DATA

Pri$ary data are those 'hich are co##ected afresh and for the first ti$e" and

thus happen to %e the origina# in character. Pri$ary data can %e co##ected through experi$ent

or through sur!ey. 3ere" sur!ey $ethod 'as adopted %ecause it he#ps to procuring data and

detai#ed infor$ation fro$ the respondents.


9/29

3ere 'e co##ected data through Kuestionnaires. A Kuestionnaire consists of a nu$%er of

Kuestions re#ated to the sur!ey. We created a Goog#e for$ of the Kuestionnaire and circu#ated

a$ong the sa$p#e to co##ect the data. We opted to use Kuestionnaire $ethod %ecause it is #o'

cost and #arge sa$p#es can %e $ade use of and thus the resu#ts can %e $ade $ore dependa%#e

and re#ia%#e.

7.7 SAMP,ING

*ince our fie#d study 'as undertaken in a practica# #ife" considerations of ti$e

and cost a#$ost in!aria%#y #ead to a se#ection of respondents. )he respondents se#ected shou#d

%e a representati!e of the tota# popu#ation as possi%#e in order to produce a $iniature cross(

se#ection. )he se#ected respondents constitute 'hat is technica##y ca##ed as 5sa$p#e6 and the

se#ection techniKue is ca##ed 5sa$p#ing techniKue6.

)he sa$p#ing techniKues considered to se#ect the sa$p#e are as fo##o'sL

1. *a$p#e siHe?

*a$p#e siHe refers to the nu$%er of respondents se#ected fro$ the uni!erse to

constitute the sa$p#e. )he siHe of the sa$p#e shou#d neither %e excessi!e#y #arge" nor too s$a##. On#y an opti$u$ sa$p#e can fu#fi# the reKuire$ents of efficiency"

representati!eness" re#ia%i#ity and f#exi%i#ity. *o %ased on the para$eters of our

interest in our study kept in !ie'" 'e decided that the $ini$u$ sa$p#e siHe shou#d %e


10/29

each indi!idua# of the popu#ation has the eKua# chance of %eing se#ected as a

respondent.

Our popu#ation does not constitute a ho$ogenous group and so 'e used stratified

sa$p#ing techniKue to se#ect the sa$p#e. In stratified sa$p#ing" the popu#ation is

di!ided into se!era# su%(popu#ations" so 'e di!ided the popu#ation into su% groups

%ased on occupation and gender that are indi!idua##y $ore ho$ogenous than the

popu#ation. )hese indi!idua# groups are ca##ed as 5strata6. )hen 'e se#ected the

sa$p#e fro$ each sing#e stratu$ to constitute the entire sa$p#e.

7.8 TOO,S FOR ANA,YSIS

)he too#s used for ana#ysis is *P** *oft'are. )he too#s used to interpret are the

fo##o'ings

1. One Way ANOCA

/. reKuency ta%#e ana#ysis

. +hi *Kuare )est

ONE AY ANO6A

)he one('ay ana#ysis of !ariance :ANOCA; is used to deter$ine 'hether there are

any significant differences %et'een the $eans of t'o or $ore independent :unre#ated; groups

:a#though you tend to on#y see it used 'hen there are a $ini$u$ of three" rather than t'o

groups;.


11/29

ASSUMPTIONS

)he resu#ts of a one('ay ANOCA can %e considered re#ia%#e as #ong as the fo##o'ing

assu$ptions are $et? 7esponse !aria%#e residua#s are nor$a##y distri%uted :or approxi$ate#y nor$a##y

distri%uted;.

*a$p#es are independent.

Cariances of popu#ations are eKua#.

7esponses for a gi!en group are independent and identica##y distri%uted nor$a#

rando$ !aria%#es :not a si$p#e rando$ sa$p#e :*7*;;.

ANOCA is a re#ati!e#y ro%ust procedure 'ith respect to !io#ations of the nor$a#ity

assu$ption. If data are ordina#" a non(para$etric a#ternati!e to this test shou#d %e used such

as ruska#JWa##is one('ay ana#ysis of !ariance.

C+APTER 3 I6

ANA,YSIS AND INTERPRETATION

De*#r!(t!'e St"t!*t!#* 3 C$)("r!*$n $% )e"n*

Descriptive Statistics


12/29

N Mean Std. Deviation

Gender 50 1.48 .505

Age 50 2.02 .473

Occupation 50 1.48 .646

o! o"ten do #ou vi$it a

co""ee $%op50 2.88 .&82

On an average %o! 'uc%

ti'e do #ou $pend at co""ee

$%op

50 2.46 .676

o! 'uc% 'one# do #ou

$pend at a co""ee $%op(50 2.44 .733

)%# do #ou go to co""ee

$%op50 2.16 .510

o! 'an# peop*e do #ou go

to a co""ee $%op !it%( 50 2.24 .555

Sta"" +e%aviour o" ,,D 50 1.&6 .807

Avai*a+i*it# o" pre"erred

-te'$50 2.08 .&66

o! do #ou no! ,,D 50 3.22 .&54

/a*ue o" 'one# at ,,D 50 2.16 .&55

De*iver# i'e at ,,D 50 1.82 .&62

Are #ou $ati$"ied !it% t%e

*ocation o" ,,D50 1.10 .303

)%at do #ou nor'a**# eat ordrin at ,,D

50 2.10 1.074

ua*it# o" "ood drin 50 1.64 .776

/a*id N *i$t!i$e 50

ro$ the a%o!e ta%#e it can %e inferred that the a'areness regarding the cafe coffee day

o'ards !isiting and a!ai#a%i#ity of products a$%ience ha!e #arge differences in their $eans

than the preferences of the custo$ers to'ards !isiting cafe coffee day.

One ;" ANO6A

)he one('ay ana#ysis of !ariance :ANOCA; is used to deter$ine 'hether there areany significant differences %et'een the $eans of t'o or $ore independent :unre#ated; groups

:a#though you tend to on#y see it used 'hen there are a $ini$u$ of three" rather than t'o

groups;.

One3;" ANO6A Re*/t* %$r De)$gr"(h!# '"r!"


13/29

)o ascertain the o%&ecti!e of kno'ing the i$pact of de$ographic !aria%#es on the

di$ensions one 'ay ANOCA has %een constructed as sho'n in the ta%#e gi!en %e#o'.

C$)("r!*$n $% An$'" t"


14/29

ota* 26.320 4&

At


15/29

Sta"" +e%avior o" ,,D

et!een Group$ 1.257 1 1.257 1.&67

)it%in Group$ 30.663 48 .63&

ota* 31.&20 4&

/a*ue o" 'one# at ,,D

et!een Group$ 2.133 1 2.133 2.405

)it%in Group$ 42.587 48 .887

ota* 44.720 4&

Avai*a+i*it# o" pre"erred -te'$

et!een Group$ .347 1 .347 .367

)it%in Group$ 45.333 48 .&44

ota* 45.680 4&

De*iver# i'e at ,,D

et!een Group$ .431 1 .431 .461

)it%in Group$ 44.&4& 48 .&36

ota* 45.380 4&

At


16/29

is a#'ays testing 'hat scientists ca## the nu## hypothesis" 'hich states that there is no

significant difference %et'een the expected and o%ser!ed resu#t.

)he ana#ysis ha!e %een 'ith co$parison of staff %eha!ior to'ards the custo$er satisfaction

Are you satisfied with the location of CCD * Staff behavior of CCD Cross tabulation

,ount

Sta"" +e%avior o" ,,D ota*

9ce**ent Good Average Sati$"actor#

Are #ou $ati$"ied !it% t%e

*ocation o" ,,D

:e$ 13 25 5 2 45

No 1 2 1 1 5

ota* 14 27 6 3 50

Chi-Square Tests

/a*ue d" A$#'p. Sig. 2;

$ided

atio 1.81& 3 .611

=inear;+#;=inear A$$ociation 1.651 1 .1&&

N o" /a*id ,a$e$ 50

a. 5 ce**$ 62.5? %ave e9pected count *e$$ t%an 5. %e 'ini'u'

e9pected count i$ .30.

3ere at


17/29

Sati$"actor# 5 10.0 10.0 100.0

ota* 50 100.0 100.0

According to custo$er preferences the de#i!ery ti$e at ++D is Exce##ent and they prefer

ser!ing peop#e at fu## extent.

!uality of food " drin#

reuenc#


18/29

Good 27 54.0 54.0 76.0

Average 6 12.0 12.0 88.0

Sati$"actor# 5 10.0 10.0 &8.0


19/29

indings ?

It is that differentiated %et'een the AGE category 'ith respecti!e to the Kuestions of 'hy

custo$ers prefers to go to coffee shop and ho' $uch ti$e they spend at coffee shop.

It is inferred that"

Age category %et'een /1 (0 is !isiting ++D to +atch up 'ith their riends

+usto$ers don6t prefer !isiting ++D to ha!e &ust an cup of coffee

Age category of /1 J 0 is a#one spending $ore than 1 hour at ++D as their co$fort

#e!e#.

+o$parison of Age %et'een factors of $oney they spend and ho' they co$e to kno' a%out

++D


20/29

indings ?

• It6s is that peop#e tends to find a%out ++D %y friends rather than other $eans of

co$$unications

• Age category of /1 J 0 is a#one spending their part at ++D $ore than 1


21/29

indings ?

*taff %eha!ior of ++D is categoriHed as Exce##ent %y Ma#e rather than e$a#e

)he a!erage $easure$ent is categoriHed %y e$a#e they tends to say that ++D

shou#d i$pro!ised in fie#d of staff %eha!ior.

+o$parison of Ca#ue of Money at ++D %y c#assification of Gender


22/29

indings ?

• Ma#e prefers that !a#ue of products at ++D is Good than e$a#e

• *o$e category of e$a#e says that !a#ue of $oney is poor as %ecause they see$s it is

too high

• It is inferred that price has to %e reduced so to a!oid custo$ers shifting

C+APTER 6

RECOMMENDATION AND ,IMITATION


23/29

5.1 FINDINGS

It is that $any consu$ers prefer going ++D to spend their #eisure ti$e a#ong

'ith their friends. +onsu$ers !isiting ++D ne!er $ind of spending on $oney

Many consu$ers !isiting ++D prefers of s$oothies rather than eata%#es

)he $ode of co$$unication is #acking %ecause those peop#e !isiting ++D ca$e

to kno' on#y through their friends

*o ad!ertise$ent shou#d %e $ade effecti!e#y to reach custo$ers

)he #ocation of ++D is a#so $ain pro%#e$ %ecause custo$ers doesn6t kno'

a%out ++D and it6s #ocations.

5.2 ,IMITATIONS OF T+E STUDY

)he study is confined on#y to Madurai +ity.

)he ti$e period of the study 'as #i$ited.

On#y #i$ited sa$p#e siHe 'as possi%#e for such a !ast research

C+APTER 3 6I

CONC,USION

ro$ the pro&ect 'e can conc#ude the fo##o'ing?(


24/29

• )hat $a&or things is that custo$ers gi!e top priority to the Kua#ity of ser!ice Rproduct

and a$%ience.

• )he $a&or co$petitor of caf coffee day is undou%ted#y %arista as %oth of the ser!ice

pro!ides cater to sa$e $arket seg$ent India as they find India ne' target $arket.

+afe coffee Day? ( )his has %een positioned for younger generation usua##y co##ege and

younger peop#e. With out#ets strategica##y positioned near co##ege" soft'are co$panies and

p#aces 'here they can target custo$ers. On ana#ysis it can %e seen that $a&ority of the

custo$ers are of 1(/0 age group. Peop#e prefer coffee day #ocation for treats.

APPENDI9

!. B!


25/29

• http?RR'''.ats.uc#a.eduRstatRspssRoutputRfactor1.ht$#

• *tudy on custo$ers attitudes %y *.*. Gonsa#!es J /01<

• '''.cafecoffeday.co$R

• '''.casestudying.co$Rcafe(coffee(strategy(india

!!!. >e*t!$nn"!re

>UESTIONNAIRE7espected *irRMada$"

I sincere#y reKuest you to spend so$e of your !a#ua%#e ti$e to fi## this Kuestionnaire" as I a$

undergoing a pro&ect on J F+usto$ers Preferences to'ards +afe +offee Day.

I reKuest you to kind#y co(operate 'ith $e in o%taining re#e!ant infor$ation.

1. Na$e? TTTTTTTTTTTTTTTTT

/. Gender? U Ma#e U e$a#e

. Age? U V/0 ears U /1 J 0 ears U 1 ears

8. Occupation ? U *tudent U Working U -usiness


26/29

. 3o' $uch $oney do you spend at a coffee shop

U#ess than 100

U100 ( 1


27/29

/. Ca#ue or Money

. A!ai#a%i#ity Of

Preferred Ite$s

8. De#i!ery )i$e


28/29


29/29

final a study on consumer preference on cafe coffee da1

Documents