Вы находитесь на странице: 1из 80

Word of Mouth of Starbucks Coffee

Executive Summary
A background research was conducted to learn more about Starbucks which is the largest
coffeehouse company in the world. After three literature reviews we developed a conceptual
model for our topic of research Word-of-Mouth of Starbucks Coffee. In the model four
variables were used to determine the word of mouth namely interaction behaviors, store
perception, trust and authenticity.

We used exploratory and descriptive research and distributed 300 sets of questionnaires to
students at Assumption University, Suvarnabhumi Campus using convenience sampling. Our
main objectives were to study the attitude towards word of mouth of Starbucks, the effects of
interaction behaviors, store perception, trust and authenticity to word of mouth of Starbucks. The
important factors that affect peoples decision to spread positive word of mouth about Starbucks.
To measure the level of word of mouth of Starbucks and to study the differences in word of
mouth of Starbucks among various demographic factors such as gender, nationality, monthly
allowance etc.

After we input the data and analyzed it, the main result we got was that the word of mouth of
Starbucks was significantly high among ABAC students. There were various other computations
for instance we learnt that consumers who liked American brands had a higher word of mouth of
Starbucks when compared to those who disliked American brands. People with higher monthly
allowances also tend to spend more per visit to Starbucks. Many such interesting findings have
been explained in detail in this report.

We concluded that only interaction behaviors, trust, and authenticity can significantly influence
word of mouth of Starbucks, we also recommended that Starbucks should focus on Interaction
behaviors because it is the factor that has highest influence on Word-of- mouth of Starbucks.

MGT3940

Business Research Methodology


1

Word of Mouth of Starbucks Coffee

Table of Contents
Page
Chapter1: Introduction

Company Background

Market Share

Current news, situation and activity of Starbucks Coffee

SWOT Analysis

13

Reasons for selecting Starbucks as our Research Topic

14

Chapter2: Literature Review and Research Problem

15

Literature Reviews

15

Conceptualization of Word of Mouth

22

Research Problem

23

Proposed Conceptual Model

25

Chapter3: Research Methodology

27

Research Design

27

Data Collection Methods

28

Sampling Plan

29

Scale and Measurement

30

Chapter4: Results and Data Analysis

31

Summary of Results

31

Sampling Profile

40

Important Tables of Results

42

Chapter5: Conclusion and Recommendations

62

Conclusions

62

Recommendations

64

Appendix

65

MGT3940

Business Research Methodology


2

Word of Mouth of Starbucks Coffee

Chapter1: Introduction
Company Background

Starbucks Corporation is an international coffee and coffeehouse chain based in Seattle,


Washington. Starbucks is the largest coffeehouse company in the world, with 17,009 stores in 50
countries, including over 11,000 in the United States, over 1,000 in Canada, and over 700 in the
United Kingdom.
The Founding of Starbucks
The story of Starbucks began in 1971, when it was founded by three people: an English Teacher,
Jerry Baldwin, a history teacher, Zev Siegl and writer Gordon Bowker. Back then they were the
roasters and retailers of whole beans, ground coffee, tea & spices. They had a single retail store
in Seattles Pike Place Market.
Expansion
Entrepreneur Howard Schultz joined the company in 1982 as Director of Retail Operations and
Marketing, and after a trip to Milan, advised that the company should sell coffee and espresso
drinks as well as beans. The company then expanded rapidly in the 1990s, when they were
opening a new store almost every work day, a pace that continued into the 2000s. The first store
outside the United States or Canada opened in the mid-1990s, and overseas stores now constitute
almost one third of Starbucks' stores. The company planned to open a net of 900 new stores
outside of the United States in 2009, but has announced 900 store closures in the United States
since 2008.

MGT3940

Business Research Methodology


3

Word of Mouth of Starbucks Coffee

Starbucks Mission and Goals


Their mission is to inspire and nurture the human spirit one person, one cup, and one
neighborhood at a time. Theyve always believed in serving the best coffee possible. Its their
goal for all of their coffee to be grown under the highest standards of quality, using ethical
trading and responsible growing practices.
Folklore
Starbucks is named after the first mate in Herman Melvilles Moby Dick. Their logo is also
inspired by the sea featuring a twin-tailed siren from Greek mythology.

More than just Coffee


To say Starbucks purchases and roasts high-quality whole bean coffees is very true. Thats the
essence of what they do but it hardly tells the whole story. Their coffeehouses have become a
beacon for coffee lovers everywhere. Why do they insist on Starbucks? Because they know they
can count on genuine service, an inviting atmosphere and a superb cup of expertly roasted and
richly brewed coffee every time. Today, they are privileged to welcome millions of customers
through their doors every day, in more than16, 000 locations in over 50 countries.
Starbucks Products & Services
1. Coffee: They provide over 30 blends of premium Arabica coffee
2. Handcrafted Beverages:

Includes fresh-brewed coffee, hot and iced espresso

beverages, coffee and non-coffee blended beverages, Vivanno smoothies & Tazo teas.
3. Merchandise: Their merchandise includes home espresso machines, coffee brewers and
grinders, coffee mugs and accessories, packaged goods, music, books & gift items.
4. Fresh foods: Include baked pastries, sandwiches, salads, oatmeal, yoghurt parfaits and
fruit cups.

Coffee Industry & Starbucks in Thailand


Thailands domestic coffee market has been growing steadily in the recent years. 65% of the
worlds coffee beans are produced in Central & South America, and Thailand imports large
amounts of coffee from the US each year. Starbucks Coffee Thailand is a wholly owned
subsidiary of Starbucks Corporation. Starbucks Coffee Thailand was founded with the idea of
MGT3940

Business Research Methodology


4

Word of Mouth of Starbucks Coffee

bringing the Starbucks Experience to Thai consumers. Since the opening of the first store on July
17, 1998 at Central Chidlom, the company has expanded throughout the country (Pattaya,
Chiang Mai, Samui, Phuket, Huahin, Nongkhai, Korat, Krabi, Rayong, and KonKaen). With
constant rate of expansion As of January 2011, Starbucks has 137 stores in Thailand.

MGT3940

Business Research Methodology


5

Word of Mouth of Starbucks Coffee

Situation Analysis
Market Share
Market Share of Starbucks in the Coffee Industry in US
By RT Cunningham (March 31, 2010)

The above pie chart shows the market share of popular brands in the coffee industry in the
United States. The brands include Folgers, Maxwell, Starbucks, Mccaf, Maxwell House Master
Blend, and many others. As shown in the pie chart Starbucks in green has the highest market
share of 41.25% when compared to its competitors.
These brands compete on the bases of quality and taste of coffee and other beverages, services
provided location and atmosphere of the store, and price of the beverages.
Starbucks had $189.2 million in sales. Starbucks is the largest coffeehouse company in the world
and it's the third largest overall coffee brand in the U.S. with a 41.25% percent market share.

MGT3940

Business Research Methodology


6

Word of Mouth of Starbucks Coffee

Market Share of Starbucks in the Restaurant Industry in US


By Technomic Information Services. Media (2005)

This chart shows the market share and media spend numbers for the Top Ten Restaurant Chains
in the United States.

As a restaurant chain, Starbucks falls into the top ten list in the United States in terms of Market
Share. Starbucks spends very little on advertising, and if you compare the media dollars spent by
other restaurants to Starbucks, you will see that Starbucks spends less, and still maintains a
relatively high market share.

This is because Starbucks spends its advertising dollars on making better products and better
customer experiences rather than spending huge amounts on television commercials and other
media.

MGT3940

Business Research Methodology


7

Word of Mouth of Starbucks Coffee

Current news, situation and activity of Starbucks Coffee


Who Will Drink to 40 Years of Starbucks?
By Stuart Elliot
Published: March 7, 2011, 1:00 am
Life begins at 40, a book once advised, and for Starbucks, a campaign to mark its 40th
anniversary begins on Monday. Below is a print ad from a campaign for Starbucks to promote its
40th anniversary The campaign is to be focused on what
Starbucks calls moments of connection with customers. It will
start in newspapers on Monday and be expanded to television
and in stores on Tuesday.
The anniversary celebration will also be an occasion for
Starbucks to show off its redesigned logo; a store in Times
Square will be the first to sport the new look on its exterior.The
anniversary is spawning a spate of new products, among them
two that will be sold for a limited time, Starbucks Tribute Blend
coffee and Starbucks Via Tribute Blend; Via is the Starbucks
instant coffee. Print advertisements will use this headline:
Forty years of expertise. One-of-a-kind taste. Endless moments
to enjoy.
The anniversary will also be an occasion for Starbucks to bring
out a new line of food, called Petites, which are baked goods
and other treats less than 200 calories, and a new cocoa cappuccino. Starbucks will also join the
ranks of marketers that take the occasion of a corporate anniversary to tell consumers something
along the lines of Its our anniversary, but you get the presents.The Starbucks largess will
consist of giving away Petites items when customers buy drinks at stores on Thursday through
Saturday from 2 to 5 p.m. A print ad will herald the promotion this way: For our 40th
anniversary, we got you something. A television commercial will declare, Weve been
thinking about you, and Without you, there is no us.
MGT3940

Business Research Methodology


8

Word of Mouth of Starbucks Coffee

The anniversary ads will carry the theme that appears in regular ads for Starbucks: You and
Starbucks. Its bigger than coffee. The anniversary ads will also bear the new logo. The
anniversary campaign, like the regular ads, is being created by BBDO New York, part of the
BBDO Worldwide division of the Omnicom Group.

Analysis
From the above news, we can analyze that the Starbucks coffee is still one of the most
successful coffee shops even after 40 in the industry, because its 40th anniversary celebrations
were able to get a very good response from the customers. New customers become loyal, and
then these loyal clients spread positive word of mouth to others.
The campaign focus is on what Starbucks calls moments of connection with customers.
Starbucks will also show off its re-designed logo to the world. New products will be introduced
in the Anniversary, and they will be sold for a limited time, like new lines of food, and other
treats. Starbucks is also giving out gifts and using print ads and television commercials in order
to enhance their brand image and connect with their target audience.

MGT3940

Business Research Methodology


9

Word of Mouth of Starbucks Coffee

A Starbucks Venture in Tea-Drinking India


By VIKAS BAJAJ
Published: January 13, 2011
MUMBAI Starbucks, the coffee chain based in Seattle, wants to move with a sense of
urgency to capitalize on the rising demand for coffee in fast growing India, its top executive
said Friday. Howard D. Schultz, chairman and chief executive of Starbucks, said the company
has had teams studying India and working on deals to set up an
operation here for the last 18 months. On Thursday, it announced
the first of several agreements a deal to buy coffee beans from
Tata Coffee, an Indian company, and work with that firms
affiliates to open stores in hotels and inside other retail stores.
Given all the things that were going on domestically and the
success story in China, we didnt really have the resource to focus on India, Mr. Schultz said by
way of explaining why the company had taken so long to come here. But, he added, the deal with
Tata is a turning point in our strategy for India.
In addition to the deal with Tata, Mr. Schultz said the company would announce other
partnerships to open stand-alone retail stores on streets and in malls in the coming months. The
company will face stiff competition from established coffee chains like Caf Coffee Day, which
is based in India and backed by American private equity and venture capital firms, and Barista,
which is owned by Italys Lavazza. Other foreign chains like Coffee Bean & Tea Leaf, the Los
Angeles-based chain, have recently expanded in India. The Tata announcement follows months
of speculation in the Indian media about Starbucks plans. The company withdrew an application
to enter India three years ago amid uncertainty about whether it would receive government
approval to invest there.
India tightly regulates foreign-owned retail chains. Companies that sell only one brand of goods
can own 51 percent of their Indian operations while those that sell more than one brand cannot
have any foreign ownership. Policy makers have recently hinted that they might relax the
policies. In the telephone interview, Mr. Schultz said the company would move ahead regardless
MGT3940

Business Research Methodology


10

Word of Mouth of Starbucks Coffee

of whether India eased those policies by establishing joint ventures with local partners to comply
with Indian restrictions. Tata Coffee, which owns and operates coffee plantations and is part of
Indias largest business conglomerate, the Tata Group, could help Starbucks in numerous ways.
The Tata Group owns Indias Taj hotel chain, and various retail chains that sell electronics,
watches, clothes and other goods. Mr. Schultz said he spent this week in India visiting coffee
plantations and having meetings with Indian government officials and business leaders. He is
hoping to capitalize on the increasing popularity of coffee in India, a country where many still
prefer tea.
Coffee, which traditionally has had a stronghold in south India, has gained a broader following
across the country in the last decade; new coffee chains appeal to young Indians who have more
disposable income than their parents did when they were young. Along with being one of the
worlds fastest-growing countries, India is also one of its youngest. About half of Indians are
younger than 25. Starbucks has been buying coffee beans from other suppliers in India for its
stores for the last seven years. Mr. Schultz said its deal with Tata Coffee could help significantly
increase the reach of Indian coffee, which has traditionally been considered inferior to coffee
from coffee powerhouses like Indonesia and Africa. The opportunity to grow very, very highquality coffee in India is within reach in the near term, he said. In many ways, there hasnt
been a market and demand from a customer like Starbucks.

Analysis
From the above news, we can analyze that Starbucks is planning to expand into the India, and is
planning to buy Coffee beans from Tata Coffee, an Indian company. Starbucks will face strong
competition from other coffee brands like Caf Coffee Day, Coffee Bean & Tea Leaf that have
recently expanded in India. The stiff competition will force Starbucks to improve & innovate
often. With the help of Tata Coffee, Starbucks is arranging to open its coffee shops, in hotels and
other retail stores. In addition Starbucks will open stand-alone retail stores on streets and in malls
in the coming months with another partnership too. This shows that Starbucks strongly
believes that there is an opportunity to do good business in India, since the demand for coffee has
increased rapidly in the recent years, its large and fast growing population, and majority of
teenagers makes India an attractive prospect for Starbucks.
MGT3940

Business Research Methodology


11

Word of Mouth of Starbucks Coffee

SWOT Analysis

Strengths
Starbucks has a strong brand
image associated with high
quality coffee & customer service.

Weakness
Expensive/ Premium Prices: Starbucks can be
undercut by lower price like Coffee World,
Mccaf, and True Coffee.

It specializes in all things coffee;


its high buying volumes helps it
to achieve economies of scale.

Over dependence
on coffee & Coffee
related products

Global reach: Starbucks is present in 55 countries


with over 17,000 stores.

Reliance on the US Market, the lions share of its


revenues comes from the US. (83% in 2005)

Innovative business strategy, they make drinking


coffee an experience.

Overcrowding: Starbucks is opening even more


stores all over the world; this can lead to clustering
and boredom from target audience.

Opportunity
Joint Ventures: Starbucks can have joint ventures
with local Thai companies to help reduce their
costs.
Greater Loyalty through
CRM, they provide
membership cards, refills.
Co-Branding with other Manufacturers: For
instance, Verizon Wireless, Sprint and AT&T
offer songs and technology that allow over-the-air
downloads for Starbucks cafes.
Expand into Global Franchising: New markets
for coffee like India & other Pacific Rim nations
are beginning to emerge.

Threat
Criticism from Activist Groups: Many activist
groups maintain websites criticizing the companys
fair-trade policies, labor relations, & environmental
impact.

Possible Saturation in Coffee Market: growing


competition, aggressive marketing (price wars,
promotions), is putting pressure on profit margins

Uncertainty of Coffee Market: It is uncertain that


the market for coffee will grow or stay in favor
with customers or another type of beverage will
replace coffee in the future.

Many Competitors: Starbucks success


has led to the market entry of many
competitors and copycat brands that pose
potential threats, for example, Black
Canyon, Coffee World, True Coffee etc.

MGT3940

Business Research Methodology


12

Word of Mouth of Starbucks Coffee

Reasons for selecting Starbucks as our Research Topic


There are many reasons why we chose Starbucks as the topic for our research project. Firstly,
some of our members are the coffee lovers .They often drink coffee, two three times a week, so
we though this project would provide an opportunity to learn more about coffee and the coffee
industry.

Secondly, Starbucks is the first brand that comes into our mind when we talk about a coffee
shop. Starbucks is also the brand we select when we would like to drink coffee

Thirdly, Starbuck is a well-known brand of coffee shop. It is a global and is often a topic of
discussion in our friend circles. So we thought it would be nice if we knew more about the brand
so that we can add to the discussions.

Lastly, Starbucks is a good place to hang out. It is also where many students read books and
spend time with friends; hence we decided it would be interesting to use Starbucks as our
Research Topic for the Business Research Methodology course.

MGT3940

Business Research Methodology


13

Word of Mouth of Starbucks Coffee

Chapter2: Literature Review and Research Problems


Literature Review
Through this term project that we have been assigned we will get to learn more about the Word
of Mouth of Starbucks Coffee In this particular section our task was to review and analyze
different research papers written by researchers in the past regarding the topic Word of Mouth.
We found so many factors/ variables that influence word of mouth among people. In order to get
a better understanding of the variables and our research topic we reviewed the definitions of
some of the variables and also reviewed the definition of word of mouth. We borrowed some of
the variables we found relevant to our topic from these research papers. Finally we have
proposed our own conceptual model of Word of Mouth of Starbucks Coffee.

First Literature Study:

Generating positive word-of-mouth communication through customer1


employee relationships
Gremler, Dwayne D and Gwinner, Kevin P and Brown,Stephen W. (2001).

Summary
This research was conducted to test how the relationships between customers and employees can
influence positive word of mouth. This was done by using data collected from banks customers
and dental patients. In this study they looked at: trust, care, personal connection and familiarity.
Moreover, they found that as a customer's trust increases, positive WOM communication is also
more likely to increase. And rhat trust is a consequence of three other dimensions: a personal
connection between employees and customers, care displayed by employees, and employee
familiarity with customers.

Gremler, Dwayne D., Gwinner, Kevin P., and Brown, Stephen W. (2001). Generating positive wordof-mouth communication through customer-employee relationships International Journal of Service Industry
Management. Vol. 12, No.1, pp.44-59.
MGT3940

Business Research Methodology


14

Word of Mouth of Starbucks Coffee

Variables Studied in this Paper


There are 4 variables studied in this paper;
1. Familiarity They define familiarity as the customers perception that the employee has
personal recognition of the customer and knows specific details about his/her needs.
Familiarity is driven by the frequency of the interaction and the depth of the interaction.
2. Care They define care as the customers perception of the employee having genuine
concern for the customers well-being.
3. Personal connection They define personal connection as a strong sense of affiliation or
bond based on some tie. Connections are often based upon having some common attribute or
interests with another party.
4. Trust They define trust as existing when one party has confidence in an exchange partners
reliability and integrity.

Conceptual model of this paper

We have borrowed the variable Trust from the above model in this research paper.

MGT3940

Business Research Methodology


15

Word of Mouth of Starbucks Coffee

Second Literature Study:

Interaction Behaviors Leading to Comfort in the Service Encounter

Lloyd, Alison E. and Luk, Sherriff T.K. (2011)

Summary
The main objectives of this research paper are to investigate the service interaction behaviors that
create customers sense of comfort or customers emotional response after interaction with the
service providers in the service encounter, and then to investigate a comfort as the assessment of
service quality, customer satisfaction and positive word of mouth in fashion apparel retailing and
casual dining restaurants. They found two key groups of interaction behavior (service manner
and need identification) which create customers sense of comfort, and this comfort positively
impacts both service quality & customer satisfaction, and these leads to positive word of mouth.

Variables Studied in this Paper


There are four variables in this paper that affect word of mouth.
1. Interaction Behaviors
There are two groups of interaction behaviors and they are as follows:
1.1. Service Manner (such as facial expressions, bodily gestures, tone of voice and language)

The service employee showed patience

The service employee was helpful

The service employee smiled at me

The service employee was polite

The service employee was relaxing to interact with

The service employee showed passion for their job

The service employee was cheerful

1.2. Need Identification (such as understanding and concern for customers)

The service employee asks for preferences

The service employee understands individual needs

Lloyd, Alison E. and Luk, Sherriff T.K.. (2011). Interaction Behaviors leading to Comfort in the
Service Encounter. Journal of Services Marketing. Vol.25, No.3, pp.176-189.
MGT3940
Business Research Methodology
16

Word of Mouth of Starbucks Coffee

The service employee was knowledgeable

The service employees anticipate individual needs.

2. Comfort
The research paper defined the variable comfort as follows:

A feeling of anxiety or relaxation arising from the social interaction with the service
employee Butcher et al. (2001).

Paswan and Ganesh (2005) simply regard it as the level of comfort during interpersonal
social interaction.

3. Overall Service Quality (such as reliability, responsiveness, assurance and empathy)

Service quality is defined as the consumers judgment of products [services]


overall excellence or superiority (Zeithaml, 1988).

Service Quality is divided into two stages service outcome & service process
-

Reliability & assurance are mainly concerned with service outcome

Assurance and empathy are concerned with service process

4. Customer Satisfaction

The interaction between the sales person and the customer is an important
determinant of the customers satisfaction with the service.

Concern, civility & congeniality are three dimensions that are highly co-related
with customer satisfaction. (Winsted, 2000)
-

Concern includes respect for the customer, being genuine, making small talk

Civility means minimal accepted levels of behaviors or types of behaviors that


service providers should avoid in order to provide an adequate level of
service.

Congeniality involves displaying a positive attitude and having a warm


temperament & personality.

MGT3940

Business Research Methodology


17

Word of Mouth of Starbucks Coffee

Conceptual Model of this Paper

From the above conceptual model, we borrow two variables which are Overall Service
Quality and Interaction Behaviors to use in our conceptual model.

Third Literature Study:

Making Your Online Voice Loud: The Critical Role of WOM Information3
Huang, Minxue and Cai, Fengyan and Tsang, Alex S.L. and Zhou, Nan. (2011).

Summary
The paper studies word of mouth and its ripple effect, which means how word of mouth spreads
and diffuses in the market. The paper studied four dimensions/variables that affect word of
mouth and its acceptance; these variables are quality, authority, authenticity and interestingness.
The paper studies word of mouth in the online environment and how to control it, the researchers
consider this study to be important because word of mouth is difficult to control in an offline
environment. They conducted this research in China. The purpose of this research was to help
marketers to choose better online forums to create a more effective ripple effect.

Huang, Minxue and Cai, Fengyan and Tsang, Alex S.L. and Zhou, Nan. (2011). "Making Your Online
Voice Loud: The Critical Role of WOM Information". European Journal of Marketing. Vol. 45, Issue. 7/8.
MGT3940
Business Research Methodology
18

Word of Mouth of Starbucks Coffee

Variables Studied in this Paper


This research paper studied four variables that help create a ripple effect. They also studied how
each variable can influence the acceptance of the word of mouth. The variables are as follows:
1. Quality:
In Riehs (2002) study, information quality was operationally defined as the extent to which
users thought that the information was useful, good, current, and accurate. According to the
Elaboration Likelihood Model proposed by Petty, Cacioppo and Schumann (1983), the
quality of an argument is an important factor in determining the persuasive impact of a
message. They also found that argument quality influences a consumers attitude towards a
product. Specifically, consumers are likely to have a more favorable attitude towards a
product when the product-related information has a high quality (strong) argument rather
than a low (weak) one.
2. Authority:
The research paper states that, cognitive authority can affect how people search and use
information. Authority makes consumers trust the information more, and that a senders
expertise is one of the most important factors that influence a receivers acceptance (Bansal
and Voyer, 2000).Rieh (2002) defined it as the extent to which users thought that the
information was credible, trustworthy, reliable, official, authoritative and amateurish. As
suggested by Mitra and Watts (2002), the online voice represented three aspects of
communication: Who is saying, What is being said and How is it said. Consequently,
several standards could be used to evaluate an online voice. Among these standards, the
standard of authority was used to evaluate the speaker Who is saying.
3. Authenticity:
The standard of authenticity was used to evaluate what is being said and how. Mitra and
Watts (2002) argued that authenticity was one of the most important factors that influence
whether a reader believed online information. Credibility, Trustworthiness and reliability
refer to authenticity in the sense that the information is true and credible.
4. Interestingness:
Interestingness is another important factor that influences word of mouth. As people are
surrounded by vast amounts of information, the interestingness of the information is of
MGT3940

Business Research Methodology


19

Word of Mouth of Starbucks Coffee

primary importance to attract peoples attention. Furthermore, relevant advertising studies


(e.g. Olney, Holbrook and Batra, 1991) have proven that the perceived interestingness of an
advertisement directly affects its audiences viewing time. Derbaix and Vanhamme (2003)
found that eliciting surprise helps induce WOM activity. When one considers acceptance
towards WOM information as a partial mediator, only the relationship between
interestingness and resending intention is significant.

Conceptual Model of this Paper

From the above conceptual model, we will borrow one variable which is Authenticity.

MGT3940

Business Research Methodology


20

Word of Mouth of Starbucks Coffee

Conceptualization of Word-of-Mouth
The first literature which is about Generating positive word-of-mouth communication through
customer-employee

relationships

defines

Word-of-Mouth

(WOM)

as

an

informal

communications directed at other consumers about the ownership, usage, or characteristics of particular
goods and services and/or their sellers.

In the second literature whose topic is Interaction Behaviors Leading to Comfort in the Service
Encounter Word-of-Mouth requires consumers to engage in attribution analysis, recall and
interpret events, communicate and share meaningful information with others. Word-of-mouth
can be positive, neutral or negative. Instances of positive word-of-mouth include relating
pleasant, vivid or novel experiences and recommendations to others.
From our last literature, Making Your Online Voice Loud: The Critical Role of WOM
Information the definition of Word-of-Mouth is informal advice between people about goods,
services, and social issues.

MGT3940

Business Research Methodology


21

Word of Mouth of Starbucks Coffee

Research Problem
Research Question
What are the factors affecting the word of mouth towards Starbucks?
Research Objectives

To study the attitude towards word of mouth of Starbucks.

To study the effects of interaction behaviors, store perception, trust and authenticity to
Starbucks.

To study the important factors that affect peoples decision to spread positive word of mouth
about Starbucks.

To measure the level of word of mouth of Starbucks.

To study the differences in word of mouth of Starbucks among various demographic factors
such as gender, nationalities, and monthly allowance, etc.

Hypothesis

Hypothesis 1: Word of mouth of Starbucks can be predicted by interaction behaviors, store


perception, trust and authenticity

Hypothesis 2: There is a difference in word of mouth of Starbucks between gender

Hypothesis 3: There is a difference in word of mouth of Starbucks among the 4 monthly


allowance groups

Hypothesis 4: There is a difference in word of mouth among people who visit Starbucks at
different rates

Hypothesis 5: There is a relationship between number of visits to Starbucks per month and
monthly allowance

Hypothesis 6: There is a relationship between getting updated information about Starbucks


and gender

Hypothesis 7: The level of word of mouth of Starbucks is high

MGT3940

Business Research Methodology


22

Word of Mouth of Starbucks Coffee

Additional Hypothesis

Hypothesis 8: There is a difference in word of mouth of Starbucks between like and dislike
discussing the places you eat and drink at with people

Hypothesis 9: There is a difference in word of mouth of Starbucks among beverage


preferred

Hypothesis 10: There is a relationship between average spending in Starbucks per visit and
gender

Hypothesis 11: There is a relationship between beverage bought at Starbucks and gender

MGT3940

Business Research Methodology


23

Word of Mouth of Starbucks Coffee

Conceptual Model of Word of Mouth of Starbucks Coffee


The word of mouth of Starbucks is depending on 4 variables which are Interaction
behaviors, overall service quality, trust and authenticity. The dimensions in each factor are
specified in details as follows:

Interaction Behaviors
Politeness of staff
Sincerity of the staff
Decency of expressions and gestures used by staff
Ability of staff members to identify individual needs

Store Perception
Found in premium locations
Classy store decor
Good in-store atmosphere
Provides good facilities

Trust
Consumer confidence in the products
Assurance of product quality
High expectations from the beverages served
Consumers perception of it as a responsible organization

Authenticity
Original in terms of products and services
Offering new flavors to consumers
Reliability of the brand
Customization of beverage to individual taste

MGT3940

Business Research Methodology


24

Word of Mouth of Starbucks Coffee

Proposed Conceptual Model of Starbucks


Interaction Behavior
-

Politeness
Sincerity
Expressions &
gestures
Need identification

Store Perception
-

Premium location
Store Decor
In-store Atmosphere
Facilities provided

Word of Mouth
toward Starbucks

Trust
-

Consumer Confidence
Quality Assurance
Consumer
Expectations
Responsibility

Authenticity
-

Originality
New flavors
Brand reliability
Customization

MGT3940

Business Research Methodology


25

Word of Mouth of Starbucks Coffee

Chapter3: Research Methodology


1. Research Design
Three types of research design can be implemented namely exploratory research, descriptive
research and causal research. However, we have conducted only exploratory research and
descriptive research for our project.
1.1 Exploratory Research
When a problem has not been clearly defined we can use exploratory research to explore and
analyze the situation. This will help us to discover research problems. Exploratory research does
not give us an answer but it helps us to understand the situation better. Exploratory research
helps determine the data collection method and often relies on secondary research (such as our
literature review). The objective of exploratory research is to gather preliminary information that
will help define problems and suggest hypothesis. Exploratory research on its own is not
sufficient but it is essential for conducting descriptive or causal research.4

We have utilized secondary data analysis (conducted a literature review using past research
papers) to identify the factors that affect the word of mouth of Starbucks.

1.2 Descriptive Research


This research is used to describe answers to research problems in detail. The answers are usually
in the form of specific numbers and percentages. Even though this research can answer certain
question, it cannot explain what caused a situation. Descriptive research helps to determine the
independent and dependent variables and it also helps to explain the relationship between them.
Descriptive research is also often known as Statistical research.5

We used questionnaire survey as a method for collecting data about the population being studied.
It helps in obtaining information that will be used to provide solutions to the research problems.
4

http://en.wikipedia.org/wiki/Exploratory_research
http://en.wikipedia.org/wiki/Descriptive_research
MGT3940
5

Business Research Methodology


26

Word of Mouth of Starbucks Coffee

2. Data Collection
One of the most important steps in research methodology is data collection because it is essential
to gather and explain this data to interpret the research questions. There are several ways of
collecting data. However, we used questionnaire survey to gather information about word of
mouth of Starbucks from the sample of the total population who drink beverages of Starbuck.
We selected the survey method because it is an efficient, fast, accurate and inexpensive way of
collecting data.
After the questionnaires were designed, we sent in our draft to our professor. After certain
changes the final draft was created and approved. After all the recommended and required
changes were made the questionnaires were ready for data collection.
The real data collection began on 28th July 2011, which was when we distributed our
questionnaires at Assumption University, Suvarnabhumi Campus. Before distribution we asked
the person whether they had ever tried beverages at Starbucks, if they said yes then only the
questionnaires were given to them. In the end by 5th August 2011 we received 300 usable
questionnaires for analysis.

MGT3940

Business Research Methodology


27

Word of Mouth of Starbucks Coffee

3. Sampling Plan
We distributed 300 sets of questionnaires to students at Assumption University, Suvarnabhumi
Campus. The questionnaire was about the word of mouth of Starbucks. We determined our
sampling plan as follows:

Target population: Who are the people we collected data from?

We selected respondents by asking them whether they had tried beverages at Starbucks before.
One we made sure that they have been customers of Starbucks in the past, we gave them the
questionnaires to fill. These respondents were selected within Assumption University,
Suvarnabhumi Campus which was our convenience location.

Sample size: How many respondents we selected to answer the questionnaires?

We selected the 300 respondents to distribute our questionnaires to.

Sampling method: What was the method used to select respondents?

We used the non-probability sampling method; this is a non-randomization method. We selected


respondents based on convenience sampling or accidental sampling, whereby we chose
respondents who happened to be available at that particular time and place. We chose
respondents who were easy to find and were available around the researchers (our group
members), i.e. the students of Assumption University in Suvarnabhumi Campus.

MGT3940

Business Research Methodology


28

Word of Mouth of Starbucks Coffee

4. Scale and Measurement


Question

Level
of scale

Type of Question

Part 1: General Information


1
Ordinal
Ranking question
2
Nominal
Determinant-choice
3
Nominal
Determinant-choice
4
Nominal
Frequency-determination
5
Nominal
Frequency-determination
6
Nominal
Determinant-choice
Part 2: Measuring Variables
7
Interval
Attitude rating scale: Likert scale
8
9
10
11

Interval
Interval
Interval
Interval

Part 3: Personal Data


12
Nominal
13
Nominal
14
Nominal
15
Nominal
16
Nominal
17
Nominal
18
Nominal
19
Nominal
20
Nominal

Attitude rating scale: Likert scale


Attitude rating scale: Likert scale
Attitude rating scale: Likert scale
Attitude rating scale: Likert scale
Simple dichotomy
Simple dichotomy
Determinant-choice
Determinant-choice
Determinant-choice
Determinant-choice
Simple dichotomy
Simple dichotomy
Simple dichotomy

MGT3940

Business Research Methodology


29

Word of Mouth of Starbucks Coffee

Chapter4: Results and Data Analysis


Summary of Results
Part I: General Information
1. Please rank 1-6 the main factors that you consider important when buying coffee?

(1 = most

important)

Taste
Brand
Freshness
Price
Location
Quality

____Taste

____Brand

____Freshness

____Price

____Location

____Quality

Rank 1
140
48
17
36
18
41

Rank 2
57
50
49
53
21
70

Rank 3
41
29
58
57
32
83

Rank 4
38
53
57
55
38
59

Rank 5
18
59
68
43
81
31

Rank 6
6
61
51
56
110
16

Total
655*
1108
1163
1084
1373
917

Rank
1
4
5
3
6
2

Rank Result
Most important
3rd most important
2nd most important

* Ranking calculation = 1x140 + 2x57 + 3x41 + 4x38 + 5x18 + 6x6 = 655


**Choosing minimum total = Most important
Conclusion:
The most important factor affects the decision to buy coffee is taste. The second and
third are quality and price respectively.
2. When we talk about coffee, which brand comes to your mind first? (Choose only one)
Starbucks

Black Canyon

True Coffee

Coffee World

Blue-Cup

Mc Caf

Descriptive
Brand that Comes First to Mind
Starbucks
Black Canyon
True Coffee
Coffee World
Blue-Cup
Mc Caf
MGT3940

Frequency

Percent

191
25
33
36
5
10

63.67
8.33
11.00
12.00
1.67
3.33
Business Research Methodology

30

Word of Mouth of Starbucks Coffee

Conclusion:
The brand that first comes to respondents mind when talking about coffee is Starbucks,
which is 63.67%.
3. What kind of beverage do you usually drink at Starbucks? (Choose only one)
Coffee

Tea

Juice

Hot/Iced Chocolate

Mocha

Blended Cream

Descriptive
Beverage Usually Consumed
Coffee
Tea
Juice
Hot/Iced Chocolate
Mocha
Blended Cream

Frequency

Percent

145
34
15
67
21
18

48.33
11.33
5.00
22.33
7.00
6.00

Conclusion:
At Starbucks, the most respondents usually drink coffee, which is 48.33%.
4. How often do you go to Starbucks per month? (Choose only one)
Less than once

1-3 times

4-5 times

More than 5 times

Descriptive
Number of Visits per Month
Less than once
1-3 times
4-5 times
More than 5 times

Frequency

Percent

120
120
41
19

40.00
40.00
13.67
6.33

Conclusion:
The most respondents usually go to Starbucks less than once a month, which is 40% and
1-3 times a month, which is 40% also.

MGT3940

Business Research Methodology


31

Word of Mouth of Starbucks Coffee

5. On average how much do you spend in Starbucks in one visit? (Choose only one)
Less than 80 Baht

80-150 Baht

151-300 Baht

More than 300 Baht

Descriptive
Average Spending
Less than 80 Baht
80-150 Baht
151-300 Baht
More than 300 Baht

Frequency

Percent

23
170
84
23

7.67
56.67
28.00
7.67

Conclusion:
The most respondents spend 80 150 Baht a time when they visit Starbucks, which is
56.67%.

6. How do you get updated information about Starbucks? (Choose only one)
Newspaper/ Magazine

Radio/Television

Friends/Family

Social networks

Website/Blogs

Posters/Brochures

Descriptive
Source of Information
Newspaper/ Magazine
Radio/Television
Friends/Family
Social networks
Website/Blogs
Posters/Brochures

Frequency

Percent

35
9
96
89
27
44

11.67
3.00
32.00
29.67
9.00
14.67

Conclusion:
The most respondents get updated information about Starbucks by friends or family,
which is 32%.

MGT3940

Business Research Methodology


32

Word of Mouth of Starbucks Coffee

Part II: Measuring Variables


Strongly Agree<-->Strongly Disagree

Variables and Statements

7.1 Starbuckss staff is polite.

7.2 Starbuckss staff serve sincerely

7.3 Starbuckss staff use decent expressions or gestures

7.4 Starbucks staff members can identify my needs.

7. Interaction Behavior

Interaction Behavior
7.1 Politeness
7.2 Sincerity
7.3 Expression & Gestures
7.4 Need Identification

Mean

Rank

4.16
4.06
4.04
3.99

1
2
3
4

Conclusion:

The strength of Starbuckss interaction behavior is politeness.

The weakness of Starbuckss interaction behavior is low need identification


than customers expectation.
Strongly Agree<-->Strongly Disagree

Variables and Statements

8.1 Starbucks is found in premium locations

8.2 Starbucks has a classy store decor

8.3 Starbucks has a good in-store atmosphere.

8.4 Starbucks provides good facilities

8. Store Perception

Store Perception
8.1 Premium Locations
8.2 Store Decor
8.3 In-store Atmosphere
8.4 Facilities Provided

Mean

Rank

4.25
4.13
4.20
4.05

1
3
2
4

Conclusion:

The strength of Starbuckss store perception is premium locations.

The weakness of Starbuckss interaction behavior is low facilities provided


than customers expectation.

MGT3940

Business Research Methodology


33

Word of Mouth of Starbucks Coffee

Strongly Agree<-->Strongly Disagree

Variables and Statements

9.1 I have confidence in Starbucks products

9.2 I feel assured of Starbuckss product quality

9.3 I have high expectations from Starbuckss beverages

9.4 I believe Starbucks is a responsible organization

9. Trust

Trust
9.1 Consumer Confidence
9.2 Quality Assurance
9.3 Consumer Expectations
9.4 Responsibility

Mean

Rank

4.14
4.13
4.23
4.01

2
3
1
4

Conclusion:

The strength of Starbuckss trust is consumer expectations.

The weakness of Starbuckss trust is low responsibility than customers


expectation.
Strongly Agree<-->Strongly Disagree

Variables and Statements

10.1 Starbucks is original in terms of products & services

10.2 Starbucks offers new flavors to customers

10.3 Starbucks is a reliable brand

10.4 Starbucks can customize its beverage to my taste

10. Authenticity

Authenticity
10.1 Originality
10.2 New Flavors
10.3 Brand Reliability
10.4 Customization

Mean

Rank

4.03
3.79
4.24
3.86

2
4
1
3

Conclusion:

The strength of Starbuckss authenticity is brand reliability.

The weakness of Starbuckss authenticity is low new flavors than customers


expectation.

MGT3940

Business Research Methodology


34

Word of Mouth of Starbucks Coffee

Strongly Agree<-->Strongly Disagree

Variables and Statements

11.1 I intend to tell others good things about Starbucks

11.2 I will encourage others to know and try Starbucks

11.3 I will recommend people to buy Starbuckss products

11. Word-of-Mouth

Word-of-Mouth
11.1 Tell others good things
11.2 Encourage others
11.3 Recommend others

Mean

Rank

3.99
3.84
3.93

1
3
2

Conclusion:

The strength of Starbuckss word-of-mouth is keep telling other good things


by customers.

The weakness of Starbuckss word-of-mouth is low chance to encourage


others to know and try Starbucks than companys expectation.

Part III: Personal Data


12. Gender
Male

Female

Descriptive

Frequency

Percent

144
156

48.00
52.00

Gender
Male
Female

Conclusion:
The most respondents are Female, 52%.
13. Nationality
Thai

Non-Thai

Descriptive
Nationality
Thai
Non-Thai

Frequency

Percent

249
51

83.00
17.00

Conclusion:
The most respondents are Thai, 83%.
MGT3940

Business Research Methodology


35

Word of Mouth of Starbucks Coffee

14. Academic Year


Freshman

Sophomore

Junior

Senior

Descriptive

Frequency

Percent

63
74
68
95

21.00
24.67
22.67
31.67

Academic Year
Freshman
Sophomore
Junior
Senior

Conclusion:
The most respondents are Senior, 31.67%.
15. Monthly Allowance
10,001 15,000

Less than 10,000


15,001 20,000

More than 20,000

Descriptive

Frequency

Percent

87
134
61
18

29.00
44.67
20.33
6.00

Monthly Allowance
Less than 10,000
10,001 - 15,000
15,001 - 20,000
More than 20,000

Conclusion:
Most respondents have a monthly allowance of 10,001 15,000 Baht, 44.67%.
16. What kind of beverage do you prefer to drink? (Choose only one)
Coffee

Tea

Juice

Carbonated drinks

Descriptive
Beverage Preferred
Coffee
Tea
Juice
Carbonated drinks

Frequency

Percent

131
67
63
39

43.67
22.33
21.00
13.00

Conclusion:
The most respondents prefer coffee, 43.67%.
MGT3940

Business Research Methodology


36

Word of Mouth of Starbucks Coffee

17. Where do you like to spend your free time? (Choose only one)
Department Store

Beauty Salon

Home

Sports field

Descriptive
Where They Spend Their Free Time
Department Store
Beauty Salon
Home
Sports field

Frequency

Percent

127
12
108
53

42.33
4.00
36.00
17.67

Conclusion:
The most respondents spend most of their free time at department store, 42.33%.
18. Do you like American Brands?
___Yes

___No

Descriptive
Liking for American Brands
Yes
No

Frequency

Percent

238
62

79.33
20.67

Conclusion:
The most respondents like American brands, 79.33%.
19. Do you like to discuss the places you eat and drink at with people?
___Yes

___No

Descriptive
Discussion About Places to Eat & Drink
Yes
No

Frequency

Percent

229
71

76.33
23.67

Conclusion:
The most respondents like to discuss about places to eat and drink, 76.33%.

MGT3940

Business Research Methodology


37

Word of Mouth of Starbucks Coffee

20. Do you like to hang out with friends in coffee shops?


___Yes

___No

Descriptive
Hanging Out with Friends in Coffee Shop
Yes
No

Frequency

Percent

197
103

65.67
34.33

Conclusion:
The most respondents like to hang out with friends in coffee shop, 65.67%.

MGT3940

Business Research Methodology


38

Word of Mouth of Starbucks Coffee

Sample Profile (or Respondent profile)


Descriptive

Frequency

Percent

144
156

48.00
52.00

249
51

83.00
17.00

63
74
68
95

21.00
24.67
22.67
31.67

87
134
61
18

29.00
44.67
20.33
6.00

131
67
63
39

43.67
22.33
21.00
13.00

127
12
108
53

42.33
4.00
36.00
17.67

238
62

79.33
20.67

229
71

76.33
23.67

197
103

65.67
34.33

Gender
Male
Female
Nationality
Thai
Non-Thai
Academic Year
Freshman
Sophomore
Junior
Senior
Monthly Allowance
Less than 10,000
10,001 - 15,000
15,001 - 20,000
More than 20,000
Beverage Preferred
Coffee
Tea
Juice
Carbonated drinks
Where They Spend Their Free Time
Department Store
Beauty Salon
Home
Sports field
Liking for American Brands
Yes
No
Discussion About Places to Eat & Drink
Yes
No
Hanging Out with Friends in Coffee Shop
Yes
No
MGT3940

Business Research Methodology


39

Word of Mouth of Starbucks Coffee

Most respondents are female represented by a higher frequency and a higher percentage of 52%.
A majority of them are Thai national (83%) in their senior year at Assumption University
(31.67%) and have a monthly allowance of 10,001-15,000 Baht. Also most of them selected
coffee as their preferred beverage to drink (43.67%) and enjoy spending their free time at
department stores (42.33%). Lastly most of our respondents like American Brands (79.33%),
enjoy discussing places they eat and drink at with people (76.33%) and also like hanging out
with friends at coffee shops (65.67%).

MGT3940

Business Research Methodology


40

Word of Mouth of Starbucks Coffee

Important Tables of Results


Contingency Tables or Cross-tabs:
The tables present important results of cross-tabs or relationships based on the research
objectives.
Cross-tab 1: (Q.3) beverage usually consumed at Starbucks * (Q14) Academic year cross
tabulation
The relationship between beverage usually consume at Starbucks and academic year
Table of Beverage usually consumed by Academic Year
Academic Year
Freshman Sophomore Junior
Beverage usually consumed
Coffee
Tea
Juice
Hot or Iced Chocolate
Mocha
Blended Cream

Total

Total
Senior

Frequency
Col Pct
Frequency
Col Pct
Frequency
Col Pct
Frequency
Col Pct
Frequency
Col Pct
Frequency
Col Pct

29
46.03
5
7.94
4
6.35
18
28.57
3
4.76
4
6.35

35
47.30
9
12.16
2
2.70
14
18.92
5
6.76
9
12.16

36
52.94
5
7.35
5
7.35
10
14.71
9
13.24
3
4.41

45
47.37
15
15.79
4
4.21
25
26.32
4
4.21
2
2.11

145

Frequency

63

74

68

95

300

34
15
67
21
18

Conclusion:
Respondents from all academic years; freshman, sophomore, junior and senior usually
consume coffee; however the junior consume coffee at a higher percentage than the rest at
52.94%.

MGT3940

Business Research Methodology


41

Word of Mouth of Starbucks Coffee

Cross-tab 2: (Q.5) Average spending in Starbucks in one visit * (Q15) Monthly allowance
cross tabulation
The relationship between average spending in Starbucks in one visit & monthly allowance
Table of Average spending by Monthly Allowance
Monthly Allowance
Less than
10,001 15,001 10,000
15,000
20,000
Average spending
Less than 80 Baht
80-150 Baht
151-300 Baht
More than 300 Baht

Total

Total
More than
20,000

Frequency
Col Pct
Frequency
Col Pct
Frequency
Col Pct
Frequency
Col Pct

11
12.64
59
67.82
16
18.39
1
1.15

7
5.22
77
57.46
38
28.36
12
8.96

3
4.92
28
45.90
24
39.34
6
9.84

2
11.11
6
33.33
6
33.33
4
22.22

Frequency

87

134

61

18

23
170
84
23

300

Conclusion:
Most respondents, who have monthly allowance no more than 20,000 baht, have the
average spending in Starbucks in one visit equal to 80-150 baht. Other respondents, who have
monthly allowance more than 20,000 baht, spend 80-300 baht on average in Starbucks per visit.
Cross-tab 3: (Q.6) Source of information* (Q12) Gender cross tabulation
The relationship between source of information and gender
Table of Source of information by Gender
Gender
Male
Female
Source of information
Newspaper or Magazine

Total

Friends or Family

Frequency
Col Pct
Frequency
Col Pct
Frequency

17
11.81
3
2.08
54

18
11.54
6
3.85
42

Social networks

Col Pct
Frequency

37.50
41

26.92
48

89

Website or Blogs

Col Pct
Frequency

28.47
11

30.77
16

27

Posters or Brochures

Col Pct
Frequency
Col Pct

7.64
18
12.50

10.26
26
16.67

44

Total

Frequency

144

156

300

Radio or Television

MGT3940

35
9
96

Business Research Methodology


42

Word of Mouth of Starbucks Coffee

Conclusion:
For most male respondents, they get updated information about Starbucks from their
friends or family, while most female get the information from social networks.

Cross-tab 4: (Q.2) Brand that comes first to mind * (Q12) Gender cross tabulation
The relationship between brand that comes first to mind and gender
Table of Brand that comes first to mind by Gender
Gender
Male
Female
Brand that comes first to mind
Starbucks
Frequency
96
95
Col Pct
66.67
60.90
Black Canyon
Frequency
11
14
Col Pct
7.64
8.97
True Coffee
Frequency
15
18
Col Pct
10.42
11.54
Coffee World
Frequency
15
21
Col Pct
10.42
13.46
Blue-Cup
Frequency
1
4
Col Pct
0.69
2.56
Mc Cafe
Frequency
6
4
Col Pct
4.17
2.56
Total

Frequency

144

156

Total

191
25
33
36
5
10

300

Conclusion:
Starbucks is the first brand which comes to most male and female respondents mind
when they talk about coffee.

MGT3940

Business Research Methodology


43

Word of Mouth of Starbucks Coffee

Cross-tab 5: (Q.2) Brand that comes first to mind * (Q18) Liking for American Brands
cross tabulation
The relationship between brand that comes first to mind and liking for American Brands
Table of Brand that comes first to mind by Liking for American Brands
Liking for American Brands Total
Yes
No
Brand that comes first to mind
Starbucks
Frequency
167
24
191
Col Pct
70.17
38.71
Black Canyon
Frequency
18
7
25
Col Pct
7.56
11.29
True Coffee
Frequency
22
11
33
Col Pct
9.24
17.74
Coffee World
Frequency
25
11
36
Col Pct
10.50
17.74
Blue-Cup
Frequency
4
1
5
Col Pct
1.68
1.61
Mc Cafe
Frequency
2
8
10
Col Pct
0.84
12.90
Total

Frequency

238

62

300

Conclusion:
Most respondents, who both like and dislike American Brands, have Starbucks first to
their mind when talking about coffee.

Cross-tab 6: (Q.5) Average spending in Starbucks in one visit * (Q14) Academic year cross
tabulation
The relationship between average spending in Starbucks in one visit and academic year
Table of Average spending by Academic Year
Freshman
Average spending
Less than 80 Baht
80-150 Baht
151-300 Baht
More than 300 Baht

Total

Academic Year
Sophomore
Junior

Total
Senior

Frequency
Col Pct
Frequency
Col Pct
Frequency
Col Pct
Frequency
Col Pct

6
9.52
36
57.14
19
30.16
2
3.17

6
8.11
31
41.89
27
36.49
10
13.51

7
10.29
37
54.41
16
23.53
8
11.76

4
4.21
66
69.47
22
23.16
3
3.16

Frequency

63

74

68

95

MGT3940

23
170
84
23

300

Business Research Methodology


44

Word of Mouth of Starbucks Coffee

Conclusion:
Most respondents in all academic year have 80-150 Baht on average spending in
Starbucks in one visit.
Cross-tab 7: (Q4) No. of visits per month. * (Q12) Gender cross tabulation
The relationship between no. of visits per month and gender
Table of No# of visits per month by Gender
Gender
Male
Female
No# of visits per month
Less than once
Frequency
60
60
Col Pct
41.67
38.46
1-3 times
Frequency
57
63
Col Pct
39.58
40.38
4-5 times
Frequency
16
25
Col Pct
11.11
16.03
More than 5 times
Frequency
11
8
Col Pct
7.64
5.13
Total

Frequency

144

156

Total

120
120
41
19

300

Conclusion:
Most male respondents visit Starbuck less than once a month, while most female
respondents visit Starbucks 1-3 times a month.
Cross-tab 8: (Q5) Average spending. * (Q12) Gender cross tabulation
The relationship between average spending and gender
Table of Average spending by Gender
Gender
Male
Female
Average spending
Less than 80 Baht
80-150 Baht
151-300 Baht
More than 300 Baht

Total

Frequency
Col Pct
Frequency
Col Pct
Frequency
Col Pct
Frequency
Col Pct

13
9.03
84
58.33
38
26.39
9
6.25

10
6.41
86
55.13
46
29.49
14
8.97

Frequency

144

156

MGT3940

Total

23
170
84
23

300

Business Research Methodology


45

Word of Mouth of Starbucks Coffee

Conclusion:
From our survey questionnaire, most of our male and female respondents have average
spending lie between 80-150 Baht on a visit to Starbucks.

Cross-tab 9: (Q3) Beverage usually consumed. * (Q12) Gender cross tabulation


The relationship between beverage usually consumed and gender
Table of Beverage usually consumed by Gender
Gender
Male
Female
Beverage usually consumed
Coffee
Frequency
78
67
Col Pct
54.17
42.95
Tea
Frequency
12
22
Col Pct
8.33
14.10
Juice
Frequency
9
6
Col Pct
6.25
3.85
Hot/Iced Chocolate
Frequency
26
41
Col Pct
18.06
26.28
Mocha
Frequency
11
10
Col Pct
7.64
6.41
Blended Cream
Frequency
8
10
Col Pct
5.56
6.41
Total

Frequency

144

156

Total

145
34
15
67
21
18

300

Conclusion:
Coffee is the most popular beverage that both male and female usually consume at
Starbucks, however more male tend to consume coffee when compared to female.

MGT3940

Business Research Methodology


46

Word of Mouth of Starbucks Coffee

Data Analysis for Hypothesis Testing (Inferential Analysis)


Multivariate Analysis
In this section, we have conducted Multiple Regression for our proposed conceptual
model. We included 4 independent variables namely Interaction behaviors, Store perception,
Trust, Authenticity and the dependent variable Word of Mouth from our conceptual model into
the Multiple Regression test.
Multiple Regressions
H1: Word of mouth of Starbucks can be predicted by Interaction behaviors, Store
perception, Trust and Authenticity

Analysis of Variance
DF
Sum of
Mean
Squares
Square

Source

F Value

4 51.88833 12.97208
Model
295 96.51908 0.32718
Error
Corrected Total 299 148.40741

Pr > F

39.65 <.0001

Root MSE
0.57200 R-Square 0.3496
Dependent Mean 3.92222 Adj R-Sq 0.3408
14.58355
Coeff Var

Variable

Label

Intercept
Interaction
Behavior
Store Perception
Trust
Authenticity

Intercept
Interaction
Behavior
Store Perception
Trust
Authenticity

Parameter Estimates
DF Parameter
Standard
Estimate
Error

t Value

Pr > |t|

Standardized
Estimate

1
1

0.12183
0.44323

0.31324
0.06954

0.39
6.37

0.6976
<.0001

0
0.33982

1
1
1

0.01588
0.21883
0.25910

0.06694
0.08240
0.07026

0.24
2.66
3.69

0.8126
0.0083
0.0003

0.01382
0.17410
0.21488

Ho: Word of mouth of Starbucks cannot be predicted by Interaction behaviors, Store


perception, Trust and Authenticity
Ha: Word of mouth of Starbucks can be predicted by Interaction behaviors, Store perception,
Trust and Authenticity

MGT3940

Business Research Methodology


47

Word of Mouth of Starbucks Coffee

Decision: Reject Ho (Pr or p value at Analysis of Variance Table is <0.0001 which is less
than 0.05)

Conclusion: Out of 4 factors, only Interaction behaviors, Trust and Authenticity could
significantly influence Word of Mouth of Starbucks. And the Interaction behaviors could
influence Word of Mouth of Starbucks higher than Trust and Authenticity because of higher
Standard Estimate (0.33982).

Steps:

From Analysis of variance table, the Pr or p value is <0.0001 which is less than 0.05.
Therefore, Word of mouth of Starbucks can be predicted by Interaction behaviors, Store
perception, Trust and Authenticity

According to table, Adjusted R-Square = 0.3408. It means that Interaction behaviors, Store
perception, Trust and Authenticity can influence Word of mouth of Starbucks by 34.8%.

According to Parameter Estimates, Pr or p value of Interaction Behaviors, Trust and


Authenticity are <0.0001, 0.0083 and 0.0003 that are less than 0.05. Hence, we got the above
decision and conclusion.

According to Parameter Estimates in Standardized Estimate column Interaction Behavior


has Standardized Estimate higher than Trust and Authenticity so Interaction behaviors could
influence Word of Mouth of Starbucks higher than Trust and Authenticity.

MGT3940

Business Research Methodology


48

Word of Mouth of Starbucks Coffee

Bivariate Analysis
We conducted hypothesis testing based on Hypothesis test of relationship and test of difference
in our research hypothesis proposed.
T-test for independence (Independent Samples T-test)
H2: There is a difference in Word of Mouth of Starbucks between gender
Gender

Mean

Std Dev

Std Err

Minimum

Maximum

144 3.8773
Male
156 3.9637
Female
-0.0864
Diff (1-2)

0.6915
0.7160
0.7044

0.0576
0.0573
0.0814

1.6667
2.6667

5.0000
5.0000

Method

Variances

Equal
Pooled
Satterthwaite Unequal

Method

Folded F

DF

298
297.38

t Value

Equality of Variances
Num DF Den DF F Value

155

143

Pr > |t|

-1.06 0.2896
-1.06 0.2889

Pr > F

1.07 0.6741

Ho: There is no difference in word of mouth of Starbucks between male and female 1 = 1
Ha: There is a difference in word of mouth of Starbucks between male and female 2 2
Decision: According to Equality of Variance, Pr or p value is 0.6741 which is more than
0.05. Then we look at Equal Variance assumed and Pr or p value is not significant (0.2896).
Fail to reject Ho (Pr or p-value 0.2896 is more than 0.05)
Conclusion: Therefore, there is no significant difference in word of mouth of Starbucks between
male and female. Both males and females have same world of mouth of Starbucks.

MGT3940

Business Research Methodology


49

Word of Mouth of Starbucks Coffee

One-way ANOVA
H3: There is a difference in Word of Mouth of Starbucks among the 4 Monthly allowance
groups
Source

DF

Sum of Squares

Mean Square

3
Model
296
Error
Corrected Total 299

5.1427690
143.2646384
148.4074074

1.7142563
0.4840022

F Value

3.54 0.0151

R-Square

Coeff Var

Root MSE

WOM Mean

0.034653

17.73746

0.695703

3.922222

Source

DF

Monthly Allowance

Anova SS

Mean Square

3 5.14276898

1.71425633

Pr > F

F Value

Pr > F

3.54 0.0151

Class Level Information


Levels Values

Class

4 Less than 10,000


10,001 - 15,000
15,001 - 20,000
More than 20,000

Monthly Allowance

Means with the same letter are not significantly


different.
Mean
N Monthly Allowance
Duncan Grouping

B
B
B
B
B

A
A
A
A
A

4.1148

61 15,001 - 20,000

3.9478

134 10,001 - 15,000

3.9444

18 More than 20,000

3.7433

87 Less than 10,000

Ho: There is no difference in word of mouth of Starbucks among the 4 monthly allowance
groups

1 = 2= 3= 4

Ha: There is a difference in word of mouth of Starbucks among the 4 monthly allowance groups
Not all 1 , 2, 3, 4 are equal
Decision: Reject Ho (Pr or p-value is 0.0151 that is less than 0.05)

MGT3940

Business Research Methodology


50

Word of Mouth of Starbucks Coffee

Conclusion: There is a significant difference in the word of mouth of Starbucks among the 4
monthly allowance groups.
According to Duncans multiple-range test, the group that is different is the group who earns
15,001 20,000 (it is under Grouping A) and the group who earns Less than 10,000 (it is
under Grouping B). So the group with income of 15,001 20,000 significantly has higher
word of mouth of Starbucks than the group with income of Less than 10,000.
H4: There is a difference in word of mouth among people who visit Starbucks at different rates
Source

DF

Sum of Squares

Mean Square

3
Model
296
Error
Corrected Total 299

20.7029133
127.7044941
148.4074074

6.9009711
0.4314341

F Value

R-Square

Coeff Var

Root MSE

WOM Mean

0.139501

16.74654

0.656836

3.922222

Source

DF

No# of visits per month

Class

Anova SS

3 20.70291328

Mean Square

6.90097109

Pr > F

16.00 <.0001

F Value

Pr > F

16.00 <.0001

Class Level Information


Levels Values

4 Less than once


1-3 times
4-5 times
More than 5 times

No# of visits per month

Means with the same letter are not significantly


different.
Mean
N No# of visits per month
Duncan Grouping

A
A
A
A
A

4.3333

19 More than 5 times

4.2439

41 4-5 times

3.6167 120 Less than once

4.0528 120 1-3 times

Ho: There is no difference in word of mouth of Starbucks among people who visit Starbucks at
different rates

1 = 2= 3= 4

MGT3940

Business Research Methodology


51

Word of Mouth of Starbucks Coffee

Ha: There is a difference in word of mouth of Starbucks among people who visit Starbucks at
different rates.

Not all 1 , 2, 3, 4 are equal

Decision: Reject Ho (Pr or p-value is 0.0001 that is less than 0.05)


Conclusion: There is a significant difference in the word of mouth of Starbucks among people
who visit Starbucks at different rates.
According to the Duncans multiple-range test, the group who visit Starbucks less than once
(it is under Grouping B) is different from other three groups which are the groups who visit
Starbucks more than 5 times (it is under Grouping A), 4 5 times (it is under Grouping A)
and 1 3 times (it is under Grouping A). So the group who visit Starbucks less than once a
month significantly has lower word of mouth of Starbucks than other groups.
Chi-square test for contingency table (Chi-square test of independence)
To test a relationship (from a contingency table) between number of visits to Starbucks per
month and monthly allowance
H5: There is a relationship between number of visits to Starbucks per month and
monthly allowance
Table of No# of visits per month by Monthly Allowance
Monthly Allowance
Less than
10,001 15,001 10,000
15,000
20,000

More than
20,000

Total

No# of visits per month


Less than once
1-3 times

4-5 times

More than 5 times

Total

Frequency
Expected
Col Pct
Frequency
Expected
Col Pct
Frequency
Expected
Col Pct
Frequency
Expected
Col Pct

50
34.8
57.47
29
34.8
33.33
4
11.89
4.60
4
5.51
4.60

49
53.6
36.57
61
53.6
45.52
17
18.313
12.69
7
8.4867
5.22

17
24.4
27.87
22
24.4
36.07
16
8.3367
26.23
6
3.8633
9.84

4
7.2
22.22
8
7.2
44.44
4
2.46
22.22
2
1.14
11.11

120

Frequency

87

134

61

18

300

MGT3940

Business Research Methodology


52

120

41

19

Word of Mouth of Starbucks Coffee

Statistic
Chi-Square
Likelihood Ratio Chi-Square
Mantel-Haenszel Chi-Square
Phi Coefficient
Contingency Coefficient
Cramer's V

DF

Value

Prob

9
9
1

28.8566 0.0007
28.5694 0.0008
20.0392 <.0001
0.3101
0.2962
0.1791

Ho: There is no relationship between number of visits to Starbucks per month and monthly
allowance
Ha: There is a relationship between number of visits to Starbucks per month and monthly
allowance
Decision: Reject Ho (Pr or p-value is 0.0007 that is less than 0.05)
Conclusion: There is a significant relationship between number of visits to Starbucks per month
and monthly allowance.

MGT3940

Business Research Methodology


53

Word of Mouth of Starbucks Coffee

To test a relationship (from a contingency table) between getting updated information about
Starbucls and gender
H6: There is a relationship between getting updated information about
Starbucks and Gender

Table of Source of information by Gender


Gender
Male
Female
Source of information
Newspaper or Magazine

Radio or Television

Friends or Family

Social networks

Website or Blogs

Posters or Brochures

Total

Frequency
Expected
Col Pct
Frequency
Expected
Col Pct
Frequency
Expected
Col Pct
Frequency
Expected
Col Pct
Frequency
Expected
Col Pct
Frequency
Expected
Col Pct
Frequency

Statistic
Chi-Square
Likelihood Ratio Chi-Square
Mantel-Haenszel Chi-Square
Phi Coefficient
Contingency Coefficient
Cramer's V

DF

Total

17
16.8
11.81
3
4.32
2.08
54
46.08
37.50
41
42.72
28.47
11
12.96
7.64
18
21.12
12.50

18
18.2
11.54
6
4.68
3.85
42
49.92
26.92
48
46.28
30.77
16
14.04
10.26
26
22.88
16.67

35

144

156

300

Value

96

89

27

44

Prob

5 4.9876 0.4174
5 5.0169 0.4138
1 1.2894 0.2562
0.1289
0.1279
0.1289

Ho: There is no relationship between getting updated information about Starbucks and gender.
Ha: There is a relationship between getting updated information about Starbucks and gender.
Decision: Fail to Reject Ho (Pr or p value 0.4174 is more than 0.05)
MGT3940

Business Research Methodology


54

Word of Mouth of Starbucks Coffee

Conclusion: There is no significant relationship between getting updated information about


Starbucks and gender.

Univariate Analysis
T-test for one sample (One Sample T-test)
To test a significant level of word of mouth of Starbucks
Null Hypothesis Ho =3 is based on the neutral or middle point of the 5 point scale
H7: The level of word of mouth of Starbucks is high
N

Mean

Std Dev

Std Err

Minimum

Maximum

300 3.9222

0.7045

0.0407

1.6667

5.0000

DF

299
44
45
46
47
48
49

t Value

Pr > |t|

22.67 <.0001

PROC TTEST
DATA = WORK.TMP0TempTableInput
PLOTS=NONE
ALPHA=0.05
H0 =3
CI = EQUAL;

Ho: = 3 The level of word of mouth of Starbucks is neutral.


Ha: 3 The level of word of mouth of Starbucks is high.
Decision: Reject Ho (Pr or p value <.0001 is less than 0.05)
Conclusion: The level of word-of-mouth of Starbucks is significantly high. Most respondents
have word of mouth of Starbucks.

MGT3940

Business Research Methodology


55

Word of Mouth of Starbucks Coffee

Additional Hypothesis
T-test for independence (Independent Samples T-test)
H 8: There is a difference in word of mouth of Starbucks between like and dislike
discussing the places you eat and drink at with people
Discussion about places to eat a
Yes
No
Diff (1-2)
Method
Pooled
Satterthwaite

Method
Folded F

Mean

Std Dev

Std Err

Minimum

Maximum

229 4.0146
71 3.6244
0.3901

0.6824
0.6968
0.6858

0.0451
0.0827
0.0932

2.3333
1.6667

5.0000
5.0000

Variances
Equal
Unequal

DF

298
114.71

t Value

4.19 <.0001
4.14 <.0001

Equality of Variances
Num DF Den DF F Value

70

228

Pr > |t|

Pr > F

1.04 0.8024

Ho: There is no difference in word of mouth of Starbucks between like and dislike discussing
the places you eat and drink at with people 1 = 1
Ha: There is a difference in word of mouth of Starbucks between like and dislike discussing the
places you eat and drink at with people 2 2
Decision: According to Equality of Variances, Pr or p value is 0.8024 which is more than
0.05. Then we look at Equal Variances assumed and Pr or p value is significant (<.0001).
Reject Ho (Pr or p-value <.0001 is less than 0.05)
Conclusion: Therefore, there is significant difference in word of mouth of Starbucks between
like and dislike discussing the places you eat and drink at with people.

MGT3940

Business Research Methodology


56

Word of Mouth of Starbucks Coffee

One-way ANOVA
H9: There is a difference in word of mouth among beverage preferred
Source

DF

Sum of Squares

Mean Square

3
Model
296
Error
Corrected Total 299

4.0839397
144.3234677
148.4074074

1.3613132
0.4875793

F Value

2.79 0.0407

R-Square

Coeff Var

Root MSE

WOM Mean

0.027518

17.80289

0.698269

3.922222

Source

DF

Beverage Preferred

Anova SS

Mean Square

3 4.08393973

1.36131324

Pr > F

F Value

Pr > F

2.79 0.0407

Class Level Information


Levels Values

Class

4 Coffee
Tea
Juice
Carbonated drinks

Beverage Preferred

Means with the same letter are not significantly


different.
Mean
N Beverage Preferred
Duncan Grouping

B
B
B
B
B

A
A
A
A
A

4.0280

131 Coffee

3.9312

63 Juice

3.8889

39 Carbonated drinks

3.7264

67 Tea

Ho: There is no difference in word-of-mouth of Starbucks among beverage preferred.


Ha: There is a difference in word-of-mouth of Starbucks among beverage preferred.
Decision: Reject Ho (Pr or p value 0.0407 is less than 0.05)
Conclusion: There is a significant difference in word-of-mouth of Starbucks among beverage
preferred.
According to Duncans multiple-range test, the group that is different is the group that prefers
coffee (it is under Grouping A) and the group that prefers tea (it is under Grouping B). So the
MGT3940

Business Research Methodology


57

Word of Mouth of Starbucks Coffee

group that prefers coffee significantly has higher word of mouth of Starbucks than the group that
prefers tea.
Chi-square test for contingency table (Chi-square test of independence)
To test a relationship (from a contingency table) between average spending in Starbucks
per visit and gender
H10: There is a relationship between Average spending in Starbucks per visit and
Gender
Table of Average spending by Gender
Gender
Male
Female
Average spending
Less than 80 Baht

80-150 Baht

151-300 Baht

More than 300 Baht

Total

Frequency
Expected
Col Pct
Frequency
Expected
Col Pct
Frequency
Expected
Col Pct
Frequency
Expected
Col Pct

13
11.04
9.03
84
81.6
58.33
38
40.32
26.39
9
11.04
6.25

10
11.96
6.41
86
88.4
55.13
46
43.68
29.49
14
11.96
8.97

Frequency

144

156

Statistic
Chi-Square
Likelihood Ratio Chi-Square
Mantel-Haenszel Chi-Square
Phi Coefficient
Contingency Coefficient
Cramer's V

DF

Value

Total

23

170

84

23

300

Prob

3 1.7866 0.6179
3 1.7946 0.6161
1 1.7351 0.1878
0.0772
0.0769
0.0772

Ho: There is no relationship between average spending in Starbucks per visit and gender.
Ha: There is a relationship between average spending in Starbucks per visit and gender.
Decision: Fail to Reject Ho (Pr or p value 0.6179 is more than 0.05)

MGT3940

Business Research Methodology


58

Word of Mouth of Starbucks Coffee

Conclusion: There is no significant relationship between average spending in Starbucks per


visit and gender.
Chi-square test for contingency table (Chi-square test of independence)
To test a relationship (from a contingency table) between beverages bought at Starbucks and
gender
H11: There is a relationship between beverage bought at Starbucks and gender

Table of Beverage usually consumed by Gender


Gender
Male Female
Beverage usually consumed
Frequency
Coffee
78
67
Expected
69.6
75.4
Col Pct
54.17
42.95
Frequency
Tea
12
22
Expected
16.32
17.68
Col Pct
8.33
14.10
Frequency
Juice
9
6
Expected
7.2
7.8
Col Pct
6.25
3.85
Frequency
Hot or Iced Chocolate
26
41
Expected
32.16
34.84
Col Pct
18.06
26.28
Frequency
Mocha
11
10
Expected
10.08
10.92
Col Pct
7.64
6.41
Frequency
Blended Cream
8
10
Expected
8.64
9.36
Col Pct
5.56
6.41

144
Total

156

Total

145

34

15

67

21

18

300

Frequency
Statistic
Chi-Square
Likelihood Ratio Chi-Square
Mantel-Haenszel Chi-Square
Phi Coefficient
Contingency Coefficient
Cramer's V

DF

Value

Prob

5 7.5358 0.1837
5 7.6015 0.1796
1 1.6647 0.1970
0.1585
0.1565
0.1585

Ho: There is no relationship between beverage bought at Starbucks and gender.


Ha: There is a relationship between beverage bought at Starbucks and gender.
MGT3940

Business Research Methodology


59

Word of Mouth of Starbucks Coffee

Decision: Fail to Reject Ho (Pr or p value 0.1837 is more than 0.05)


Conclusion: There is no significant relationship between beverage bought at Starbucks and
gender.

MGT3940

Business Research Methodology


60

Word of Mouth of Starbucks Coffee

Chapter 5: Conclusions and Recommendations


Conclusions

Conclusion from Descriptive Analysis

Our survey questionnaire had some interesting findings and they have been concluded below:

Taste was ranked as the most important factor to be considered when purchasing
coffee, by a majority of our respondents followed by quality and price respectively.

Starbucks was the brand that came first in the minds of most of the respondents when
we talk about coffee. Also most of our respondents prefer drinking coffee at Starbucks
than other beverages and visit the store 3 times or less in a month.

From a crosstab to determine the relationship between brand that comes first to mind and
liking for American Brands we concluded that Starbucks is the first brand that comes
to mind of most of our respondents whether they like or dislike American brands.

From a crosstab to determine the relationship between source of information and gender
we concluded that most male respondents, they get updated information about
Starbucks from their friends or family, while most females get updated information
from social networks.

Conclusions about Strengths and Weaknesses

This section comes from the tables of mean, where we identified Starbucks strengths and
weaknesses (based on the highest and lowest mean) in each of the four variables namely
interaction behaviors, store perception, trust and authenticity

According to the table of mean for interaction behaviors Starbucks consumers are
pleased with the politeness of its staff while they are not very pleased that the staff
members are unable to identify their individual needs very well.

According to the table of mean for store perception Starbucks consumers are happy that
the stores are found in premium locations around town. They are however not happy
that Starbucks provides fewer facilities than their expectations

According to the table of mean for trust Starbucks consumers have high expectations
from them, however the consumers dont perceive Starbucks to be a very responsible
organization

MGT3940

Business Research Methodology


61

Word of Mouth of Starbucks Coffee

According to the table of mean for authenticity Starbucks consumers are content with
the brands reliability however they are not content that Starbucks provide fewer new
flavors than their expectations.

According to the table of mean for word-of-mouth Starbucks strength is that their
customers will keep telling others good things about Starbucks. Their weakness however
is that their consumers are not able to encourage others to visit and try Starbucks very
effectively.

Conclusion from Hypothesis Testing

Out of 4 factors, only 3 factors Interaction behaviors, Trust and Authenticity could
significantly influence Word of Mouth of Starbucks. And the Interaction behaviors could
influence Word of Mouth higher than Trust and Authenticity

Word of mouth of Starbucks is the same among Assumption University students,


whether they are male or female.

The group with a monthly allowance of15,001 20,000 has a higher word of mouth of
Starbucks than the group with a monthly allowance of Less than 10,000.

The group who visit Starbucks less than once a month significantly has lower word of
mouth of Starbucks than other groups who visit Starbucks once or more than once a
month.

The level of word-of-mouth of Starbucks is high among Assumption University Students

MGT3940

Business Research Methodology


62

Word of Mouth of Starbucks Coffee

Recommendations

Starbucks should emphasize on...

Starbucks should focus on Interaction behaviors because it is the factor that has highest
influence on Word-of- mouth

Starbucks should maintain...

Starbucks should continue to train their staff to be polite, because the consumers are
pleased with the politeness of the staff at Starbucks.

They should also continue opening and maintaining their store in premium locations
around town, because they consumers are happy with this aspect of the store.

Starbucks should continue to carry out programs to maintain the high level of
expectations that consumers have from Starbucks.

They should also try to maintain their brands reliability because consumers like their
reliable, authentic beverages.

Lastly, Starbucks should maintain the positive perception of their brand so that their
consumers will keep telling others good things about Starbucks.

Starbucks should improve...

Starbucks should try to improve the staff by training them to identify individual customer
needs because currently the customers are not pleased with this aspect of the staff at
Starbucks.

Starbucks should improve the facilities they currently provide and try to provide more
facilities to match their customers expectations

They need to carry out some programs to improve the perception of consumers of
Starbucks being a responsible organization because consumers dont perceive Starbucks
to be a responsible organization.

Starbucks should add new flavors to their menu to improve the variety of beverages they
are providing to their consumers

Lastly, they should try to give some incentives to their customers so that they encourage
others to know and try Starbucks because currently they are not encouraging others to
know or try Starbucks.
MGT3940

Business Research Methodology


63

Word of Mouth of Starbucks Coffee

APPENDIX

MGT3940

Business Research Methodology


64

Word of Mouth of Starbucks Coffee

Questionnaire about Starbucks Coffee


Factors affecting the Word-of-Mouth of Starbucks Coffee among people We are the undergraduate
students studying the course MGT3940: Business Research Methodology in semester 1/2011 at
Assumption University. This questionnaire has been developed under the purpose of education only and
the information will be treated with high confidentiality. Please answer the following question by mark
in the space given below and do kindly answer truthfully and complete all questions.

Part I: General Information


1. Please rank 1-6 the main factors that you consider important when buying coffee? (1 = most
important)
____Taste

____Brand

____Freshness

____Price

____Location

____Quality

2. When we talk about coffee, which brand comes to your mind first? (Choose only one)
Starbucks

Black Canyon

True Coffee

Coffee World

Blue-Cup

Mc Caf

3. What kind of beverage do you usually drink at Starbucks? (Choose only one)
Coffee

Tea

Juice

Hot/Iced Chocolate

Mocha

Blended Cream

4. How often do you go to Starbucks per month? (Choose only one)


Less than once

1-3 times

4-5 times

More than 5 times

5. On average how much do you spend in Starbucks in one visit? (Choose only one)
Less than 80 Baht

80-150 Baht

151-300 Baht

More than 300 Baht

MGT3940

Business Research Methodology


65

Word of Mouth of Starbucks Coffee

6. How do you get updated information about Starbucks? (Choose only one)
Newspaper/ Magazine

Radio/Television

Friends/Family

Social networks

Website/Blogs

Posters/Brochures

Part II: Measuring Variables


Please mark X on the number that describes you the most
5=Strongly Agree 4=Agree 3=Neutral 2=Disagree 1=Strongly Disagree
Strongly Agree<-->Strongly Disagree

Variables and Statements

7.1 Starbuckss staff is polite.

7.2 Starbuckss staff serve sincerely

7.3 Starbuckss staff use decent expressions or gestures

7.4 Starbucks staff members can identify my needs.

8.1 Starbucks is found in premium locations

8.2 Starbucks has a classy store decor

8.3 Starbucks has a good in-store atmosphere.

8.4 Starbucks provides good facilities

9.1 I have confidence in Starbucks products

9.2 I feel assured of Starbuckss product quality

9.3 I have high expectations from Starbuckss beverages

9.4 I believe Starbucks is a responsible organization

10.1 Starbucks is original in terms of products & services

10.2 Starbucks offers new flavors to customers

10.3 Starbucks is a reliable brand

10.4 Starbucks can customize its beverage to my taste

7. Interaction Behavior

8. Store Perception

9. Trust

10. Authenticity

MGT3940

Business Research Methodology


66

Word of Mouth of Starbucks Coffee

11. Word-of-Mouth
11.1 I intend to tell others good things about Starbucks

11.2 I will encourage others to know and try Starbucks

11.3 I will recommend people to buy Starbuckss products

Part III: Personal Data


12. Gender
Male

Female

Thai

Non-Thai

Freshman

Sophomore

Junior

Senior

13. Nationality

14. Academic Year

15. Monthly Allowance


Less than 10,000

10,001 15,000

15,001 20,000

More than 20,000

16. What kind of beverage do you prefer to drink? (Choose only one)
Coffee

Tea

Juice

Carbonated drinks

17. Where do you like to spend your free time? (Choose only one)
Department Store

Beauty Salon

Home

Sports field

18. Do you like American Brands?


___Yes

___No

19. Do you like to discuss the places you eat and drink at with people?
___Yes

___No

20. Do you like to hang out with friends in coffee shops?


___Yes

___No
---------- Thank you ----------

MGT3940

Business Research Methodology


67

Word of Mouth of Starbucks Coffee

Additional Statistical Analysis


A.) Cross-tab 1: (Q5) Average spending. * (Q12) Gender cross tabulation
The relationship between average spending and gender
Table of Average spending by Gender
Gender
Male
Female
Average spending
Less than 80 Baht
80-150 Baht
151-300 Baht
More than 300 Baht

Total

Frequency
Col Pct
Frequency
Col Pct
Frequency
Col Pct
Frequency
Col Pct

13
9.03
84
58.33
38
26.39
9
6.25
144

Total

10
6.41
86
55.13
46
29.49
14
8.97
156

23
170
84
23
300

Frequency

Conclusion:
Both male and females average spending in Starbucks per visit lie between 80-150 Baht
B.) Cross-tab 2: (Q3) Beverage usually consumed. * (Q12) Gender cross tabulation
The relationship between beverage usually consumed and gender
Table of Beverage usually consumed by Gender
Gender
Male
Female
Beverage usually
consumed
Coffee
Tea
Juice
Hot/Iced Chocolate
Mocha
Blended Cream

Total

Frequency
Col Pct
Frequency
Col Pct
Frequency
Col Pct
Frequency
Col Pct
Frequency
Col Pct
Frequency
Col Pct

78

67

54.17
12
8.33
9
6.25
26
18.06
11
7.64
8
5.56
144

42.95
22
14.10
6
3.85
41
26.28
10
6.41
10
6.41
156

Total

145
34
15
67
21
18
300

Frequency

MGT3940

Business Research Methodology


68

Word of Mouth of Starbucks Coffee

Conclusion:
Coffee is the most popular beverage that both males and females usually consume at Starbucks
C.) T-test for independence (Independent Samples T-test)
Hypothesis: There is a difference in Word-of-Mouth between nationalities.
Nationality
Thai
Non-Thai
Diff (1-2)

Mean

Std Dev

Std Err

Minimum

Maximum

249 3.9465
51 3.8039
0.1425

0.6916
0.7606
0.7037

0.0438
0.1065
0.1082

1.6667
2.3333

5.0000
5.0000

Method
Pooled
Satterthwaite

Method
Folded F

Variances

Equal
Unequal

DF

t Value

Pr > |t|

298
67.973

1.32
1.24

0.1886
0.2202

Equality of Variances
Num DF Den DF F Value

50

248

Pr > F

1.21 0.3509

Ho: There is no difference in word of mouth of Starbucks between Thai and Non-Thai 1 = 1
Ha: There is a difference in word of mouth of Starbucks between Thai and Non-Thai 2 2
Decision: According to Equality of Variance, Pr or p value is not significant (0.3509) which
is more than 0.05. Then we look at Equal Variance and the Equal Variance is not significant
(0.1886) either.

Fail to reject Ho (Pr or p-value 0.1886 is more than 0.05)

Conclusion: There is no significant difference in Word-of-Mouth between Thai and Non-Thai.


Both Thai and Non-Thai have equality in Word-of-Mouth of Starbucks.

D.) T-test for independence (Independent Samples T-test)


Hypothesis: There is a difference in Word-of-Mouth between liking American brands.
Liking for American Brands

Yes
No
Diff (1-2)
Method

Mean

Std Dev

Std Err

Minimum

Maximum

238 4.0224
62 3.5376
0.4848

0.6768
0.6811
0.6777

0.0439
0.0865
0.0966

2.3333
1.6667

5.0000
5.0000

Variances

Equal
Pooled
Satterthwaite Unequal

DF

298
94.795

MGT3940

t Value

Pr > |t|

5.02 <.0001
5.00 <.0001
Business Research Methodology

69

Word of Mouth of Starbucks Coffee


Equality of Variances
Num DF Den DF F Value

Method

61

Folded F

237

Pr > F

1.01 0.9176

Ho: There is no difference in word of mouth of Starbucks between people who like American
brands and people who dislike American Brands 1 = 1
Ha: There is a difference in word of mouth of Starbucks between people who like American
brands and people who dislike American Brands 2 2
Decision: According to Equality of Variance, Pr or p value is not significant (0.9176) which
is more than 0.05. Then we look at Equal Variance and the Equal Variance is significant
(<.0001).

Reject Ho (Pr or p-value <.0001 is less than 0.05)

Conclusion: There is a difference in word-of-mouth between people who like American brands
those who dislike American brands. The group that likes American brands has a higher word of
mouth of Starbucks than the group who dislike American brands.

E.) One-way ANOVA


Hypothesis: There is a difference in word-of-mouth between four academic years
Source

DF

Sum of Squares

Mean Square

3
Model
296
Error
Corrected Total 299

3.0152904
145.3921171
148.4074074

1.0050968
0.4911896

F Value

2.05 0.1075

R-Square

Coeff Var

Root MSE

WOM Mean

0.020318

17.86868

0.700849

3.922222

Source

DF

Academic Year

Anova SS

Mean Square

3 3.01529035

1.00509678

Class

Pr > F

F Value

Pr > F

2.05 0.1075

Class Level Information


Levels Values

4 Freshman
Sophomore
Junior
Senior

Academic Year

MGT3940

Business Research Methodology


70

Word of Mouth of Starbucks Coffee


Means with the same letter are not
significantly different.
Mean N Academic Year
Duncan Grouping

B
B
B
B
B

A
A
A
A
A

4.0833 68 Junior
3.9123 95 Senior
3.9054 74 Sophomore
3.7831 63 Freshman

Conclusion:
Ho: There is no difference in word-of-mouth of Starbucks between 4 academic years
Ha: There is a difference in word-of-mouth of Starbucks between 4 academic years
Decision: Fail to Reject Ho (Pr or p value 0.1075 is more than 0.05)
Conclusion: There is no difference in word-of-mouth of Starbucks between beverages preferred.
According to Duncans multiple-range test, the group that is different is junior (it is under
Grouping A) and freshman (it is under Grouping B). So juniors have a higher word of mouth of
Starbucks than freshman.

MGT3940

Business Research Methodology


71

Word of Mouth of Starbucks Coffee

Graphs
Part 3: Personal Data
Gender
53%
52%
52%
51%
50%
49%
Percent

48%
48%
47%
46%
Male

Female
Q12 Gender

The most respondent are female, 52%.


Nationality

Nationality
90%
80%
70%
60%
50%
Q13 Nationality

40%

Percent

30%
20%
10%
0%
Thai

Non-Thai

The most respondent are Thai, 83%.

MGT3940

Business Research Methodology


72

Word of Mouth of Starbucks Coffee

Academic Year

Academic Year
35.00%
30.00%
25.00%
20.00%

Percent

15.00%
Q14 Academic Year

10.00%
5.00%
0.00%

The most respondent are senior student, 31.67%.


Monthly Allowance

Q15 Mothly Allowance


50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%

Percent

Q15 Mothly
Allowance

Less than 10,001 - 15,001 - More than


10,000
15,000
20,000
20,000

The most respondents have monthly allowance between 10,001 - 15,000 baht, 44.67%.

MGT3940

Business Research Methodology


73

Word of Mouth of Starbucks Coffee

Part 1: General Information


Brand that Comes First to Mind

Brand that Comes First to Mind


70.00%
60.00%
50.00%
40.00%
30.00%

Q2 Brand
that

Percent

20.00%
10.00%
0.00%

The first brand that comes to respondents minds is Starbucks, 63.67%.


Beverage Usually Consumed

Q3 Beverage Usually Consumed


60.00%
50.00%
40.00%
30.00%

Q3 Beverage
Usually
Consumed

Percent

20.00%
10.00%
0.00%

The most respondents usually consume coffee, 48.33%.


MGT3940

Business Research Methodology


74

Word of Mouth of Starbucks Coffee

Number of Visits per Month

Number of Visits per Month


45.00%
40.00%
35.00%
30.00%
25.00%
20.00%

Q4 Number of Visits
per Month

Percent

15.00%
10.00%
5.00%
0.00%

Less than 1-3 times 4-5 times More than


once
5 times

The most respondents usually visit Starbucks less than once and 1-3 times per month, 40% each.
Average Spending

Q5 Average Spending
60.00%
50.00%
40.00%

Percent

30.00%
Q5 Average
Spending

20.00%
10.00%
0.00%
Less than 80-150 baht 151-300
80 baht
baht

More than
300 baht

The most respondents usually spend 80-150 baht on average in one visit, 56.67%.

MGT3940

Business Research Methodology


75

Word of Mouth of Starbucks Coffee

Source of Information

Percent

Q6 Source of Information
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%

Q6 Source
of
Information

The most respondents usually get information about Starbucks from their friends & family, 32%.

MGT3940

Business Research Methodology


76

Word of Mouth of Starbucks Coffee

Data View

MGT3940

Business Research Methodology


77

Word of Mouth of Starbucks Coffee

Variable View

MGT3940

Business Research Methodology


78

Word of Mouth of Starbucks Coffee

MGT3940

Business Research Methodology


79

Word of Mouth of Starbucks Coffee

References
We would like to acknowledge the sources from which we received information for our analysis:

http://en.wikipedia.org/wiki/Starbucks

www.starbucks.com

www.starbucks.com/about-us/company-information

www.starbucks.com/aboutus/company_profile.pdf

http://www.aseanaffairs.com/coffee_industry2

http://www.wikinvest.com/wiki/Starbucks_(SBUX)

http://www.starbucks.co.th/en-US/_About+Starbucks/Starbucks+Coffee+Thailand.htm

http://marketingteacher.com/swot/starbucks-swot.html

http://www.businessteacher.org.uk/business-resources/swot-analysis-database/starbucksswot-analysis/

Gremler, Dwayne D. and Gwinner, Kevin P. and Brown, Stephen W. (2001). Generating
positive word-of-mouth communication through customer-employee relationships
International Journal of Service Industry Management. Vol. 12, No.1, pp.44-59.

Lloyd, Alison E. and Luk, Sherriff T.K.. (2011).Interaction Behaviors leading to


Comfort in the Service Encounter. Journal of Services Marketing. Vol.25, No.3,
pp.176-189.

Huang, Minxue and Cai, Fengyan and Tsang, Alex S.L. and Zhou, Nan. (2011). "Making
Your Online Voice Loud: The Critical Role of WOM Information". European Journal
of Marketing. Vol. 45, Issue. 7/8. pp.1-23.

http://en.wikipedia.org/wiki/Exploratory_research

http://en.wikipedia.org/wiki/Descriptive_research

MGT3940

Business Research Methodology


80