Starbucks Report - Business Research Methodology

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.
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Business Research Methodology
Table of Contents Page

Chapter1: Introduction Company Background Market Share Current news, situation and activity of Starbucks Coffee SWOT Analysis Reasons for selecting Starbucks as our Research Topic Chapter2: Literature Review and Research Problem Literature Reviews Conceptualization of Word of Mouth Research Problem Proposed Conceptual Model Chapter3: Research Methodology Research Design Data Collection Methods Sampling Plan Scale and Measurement Chapter4: Results and Data Analysis Summary of Results Sampling Profile Important Tables of Results Chapter5: Conclusion and Recommendations Conclusions Recommendations Appendix 4 4 7 9 13 14 15 15 22 23 25 27 27 28 29 30 31 31 40 42 62 62 64 65
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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.
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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
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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.
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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.
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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.
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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.
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.
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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
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.
SWOT Analysis
Strengths Starbucks has a strong brand image associated with high quality coffee & customer service. It specializes in all things coffee; its high buying volumes helps it to achieve economies of scale. Global reach: Starbucks is present in 55 countries with over 17,000 stores. Innovative business strategy, they make drinking coffee an experience. Weakness Expensive/ Premium Prices: Starbucks can be undercut by lower price like Coffee World, Mccaf, and True Coffee. Over dependence on coffee & Coffee related products Reliance on the US Market, the lions share of its revenues comes from the US. (83% in 2005) Overcrowding: Starbucks is opening even more stores all over the world; this can lead to clustering and boredom from target audience. 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.
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.
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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.
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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 14 Business Research Methodology
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.
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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.

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)
2
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
2. Comfort
The service employee was knowledgeable The service employees anticipate individual needs.
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.
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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

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
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.
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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.
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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
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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
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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
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Proposed Conceptual Model of Starbucks

Interaction Behavior
Politeness Sincerity Expressions & gestures Need identification
Store Perception
Premium location Store Decor In-store Atmosphere Facilities provided
Trust
Consumer Confidence Quality Assurance Consumer Expectations Responsibility
Word of Mouth toward Starbucks
Authenticity
Originality New flavors Brand reliability Customization
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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 5
http://en.wikipedia.org/wiki/Exploratory_research http://en.wikipedia.org/wiki/Descriptive_research MGT3940 26
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.
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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.
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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 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
Part 3: Personal Data 12 Nominal 13 Nominal 14 Nominal 15 Nominal 16 Nominal 17 Nominal 18 Nominal 19 Nominal 20 Nominal
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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? important) ____Taste ____Freshness ____Location
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
(1 = most
____Brand ____Price ____Quality

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
Taste Brand Freshness Price Location Quality
* 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 True Coffee Blue-Cup Black Canyon Coffee World Mc Caf
Descriptive
Brand that Comes First to Mind Starbucks Black Canyon True Coffee Coffee World Blue-Cup Mc Caf
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Frequency
191 25 33 36 5 10
Percent
63.67 8.33 11.00 12.00 1.67 3.33
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 Juice Mocha Tea Hot/Iced Chocolate Blended Cream
Descriptive
Beverage Usually Consumed Coffee Tea Juice Hot/Iced Chocolate Mocha Blended Cream
Frequency
145 34 15 67 21 18
Percent
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 4-5 times 1-3 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
120 120 41 19
Percent
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 31
5. On average how much do you spend in Starbucks in one visit? (Choose only one) Less than 80 Baht 151-300 Baht 80-150 Baht More than 300 Baht
Descriptive
Average Spending Less than 80 Baht 80-150 Baht 151-300 Baht More than 300 Baht
Frequency
23 170 84 23
Percent
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 Friends/Family Website/Blogs Radio/Television Social networks Posters/Brochures
Descriptive
Source of Information Newspaper/ Magazine Radio/Television Friends/Family Social networks Website/Blogs Posters/Brochures
Frequency
35 9 96 89 27 44
Percent
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%.
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Part II: Measuring Variables

Variables and Statements 7. Interaction Behavior 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. 5 5 5 5 4 4 4 4 3 3 3 3 2 2 2 2 1 1 1 1 Strongly Agree<-->Strongly Disagree 5 4 3 2 1
Interaction Behavior
7.1 Politeness 7.2 Sincerity 7.3 Expression & Gestures 7.4 Need Identification
Mean
4.16 4.06 4.04 3.99
Rank
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.
Variables and Statements 8. Store Perception 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 5 5 5 5 4 4 4 4 3 3 3 3 2 2 2 2 1 1 1 1 Strongly Agree<-->Strongly Disagree 5 4 3 2 1
Store Perception
8.1 Premium Locations 8.2 Store Decor 8.3 In-store Atmosphere 8.4 Facilities Provided
Mean
4.25 4.13 4.20 4.05
Rank
1 3 2 4
Conclusion:
MGT3940 33
The strength of Starbuckss store perception is premium locations. The weakness of Starbuckss interaction behavior is low facilities provided than customers expectation.
Variables and Statements 9. Trust 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
Strongly Agree<-->Strongly Disagree 5 4 3 2 1
5 5 5 5
4 4 4 4
3 3 3 3
2 2 2 2
1 1 1 1
Trust
9.1 Consumer Confidence 9.2 Quality Assurance 9.3 Consumer Expectations 9.4 Responsibility
Mean
4.14 4.13 4.23 4.01
Rank
2 3 1 4
Conclusion: The strength of Starbuckss trust is consumer expectations. The weakness of Starbuckss trust is low responsibility than customers expectation.
Variables and Statements 10. Authenticity 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 5 5 5 5 4 4 4 4 3 3 3 3 2 2 2 2 1 1 1 1 Strongly Agree<-->Strongly Disagree 5 4 3 2 1
Authenticity
10.1 Originality 10.2 New Flavors 10.3 Brand Reliability 10.4 Customization
Mean
4.03 3.79 4.24 3.86
Rank
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.
Variables and Statements 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
Strongly Agree<-->Strongly Disagree 5 4 3 2 1
5 5 5
4 4 4
3 3 3
2 2 2
1 1 1
Word-of-Mouth
11.1 Tell others good things 11.2 Encourage others 11.3 Recommend others
Mean
3.99 3.84 3.93
Rank
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
Gender Male Female
Frequency
144 156
Percent
48.00 52.00
Conclusion: The most respondents are Female, 52%. 13. Nationality Thai Non-Thai
Descriptive
Nationality Thai Non-Thai
Frequency
249 51
Percent
83.00 17.00
Conclusion: The most respondents are Thai, 83%.

14. Academic Year Freshman Junior Sophomore Senior
Descriptive
Academic Year Freshman Sophomore Junior Senior
Frequency
63 74 68 95
Percent
21.00 24.67 22.67 31.67
Conclusion: The most respondents are Senior, 31.67%. 15. Monthly Allowance Less than 10,000 15,001 20,000 10,001 15,000 More than 20,000
Descriptive
Monthly Allowance Less than 10,000 10,001 - 15,000 15,001 - 20,000 More than 20,000
Frequency
87 134 61 18
Percent
29.00 44.67 20.33 6.00
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 Juice Tea Carbonated drinks
Descriptive
Beverage Preferred Coffee Tea Juice Carbonated drinks
Frequency
131 67 63 39
Percent
43.67 22.33 21.00 13.00
Conclusion: The most respondents prefer coffee, 43.67%.

17. Where do you like to spend your free time? (Choose only one) Department Store Home Beauty Salon Sports field
Descriptive
Where They Spend Their Free Time Department Store Beauty Salon Home Sports field
Frequency
127 12 108 53
Percent
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
238 62
Percent
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
229 71
Percent
76.33 23.67
Conclusion: The most respondents like to discuss about places to eat and drink, 76.33%.
MGT3940 37
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
197 103
Percent
65.67 34.33
Conclusion: The most respondents like to hang out with friends in coffee shop, 65.67%.
MGT3940 38
Sample Profile (or Respondent profile) Descriptive

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 39
Frequency
144 156 249 51 63 74 68 95 87 134 61 18 131 67 63 39 127 12 108 53 238 62 229 71 197 103
Percent
48.00 52.00 83.00 17.00 21.00 24.67 22.67 31.67 29.00 44.67 20.33 6.00 43.67 22.33 21.00 13.00 42.33 4.00 36.00 17.67 79.33 20.67 76.33 23.67 65.67 34.33
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 40
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 Frequency Col Pct Frequency Col Pct Frequency Col Pct Frequency Col Pct Frequency Col Pct Frequency Col Pct Frequency 29 46.03 5 7.94 4 6.35 18 28.57 3 4.76 4 6.35 63 35 47.30 9 12.16 2 2.70 14 18.92 5 6.76 9 12.16 74 36 52.94 5 7.35 5 7.35 10 14.71 9 13.24 3 4.41 68 Total Senior
45 47.37 15 15.79 4 4.21 25 26.32 4 4.21 2 2.11 95
145 34 15 67 21 18
Total
300
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 41
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 Frequency Col Pct Frequency Col Pct Frequency Col Pct Frequency Col Pct Frequency 11 12.64 59 67.82 16 18.39 1 1.15 87 7 5.22 77 57.46 38 28.36 12 8.96 134 3 4.92 28 45.90 24 39.34 6 9.84 61 Total More than 20,000 2 11.11 6 33.33 6 33.33 4 22.22 18 23 170 84 23
Total
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 Radio or Television Friends or Family Social networks Website or Blogs Posters or Brochures Frequency Col Pct Frequency Col Pct Frequency Col Pct Frequency Col Pct Frequency Col Pct Frequency Col Pct Frequency 17 11.81 3 2.08 54 37.50 41 28.47 11 7.64 18 12.50 144 18 11.54 6 3.85 42 26.92 48 30.77 16 10.26 26 16.67 156 Total
35 9 96 89 27 44
Total MGT3940
300
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 43
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 Frequency Col Pct Frequency Col Pct Frequency Col Pct Frequency Col Pct Frequency 6 9.52 36 57.14 19 30.16 2 3.17 63 Academic Year Sophomore Junior 6 8.11 31 41.89 27 36.49 10 13.51 74 7 10.29 37 54.41 16 23.53 8 11.76 68 Total Senior 4 4.21 66 69.47 22 23.16 3 3.16 95 23 170 84 23
Total
300
MGT3940 44
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 Frequency Col Pct Frequency Col Pct Frequency Col Pct Frequency Col Pct Frequency 13 9.03 84 58.33 38 26.39 9 6.25 144 10 6.41 86 55.13 46 29.49 14 8.97 156 Total
23 170 84 23
Total
300
MGT3940 45
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
Total
145 34 15 67 21 18
144
156
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 46
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
Source
Analysis of Variance DF Sum of Mean Squares Square
F Value
Pr > F
4 51.88833 12.97208 Model 295 96.51908 0.32718 Error Corrected Total 299 148.40741
39.65 <.0001
Root MSE 0.57200 R-Square 0.3496 Dependent Mean 3.92222 Adj R-Sq 0.3408 14.58355 Coeff Var
Parameter Estimates DF Parameter Standard Estimate Error
Variable
Label
t Value
Pr > |t|
Standardized Estimate
Intercept Interaction Behavior Store Perception Trust Authenticity
Intercept Interaction Behavior Store Perception Trust Authenticity
1 1 1 1 1
0.12183 0.44323 0.01588 0.21883 0.25910
0.31324 0.06954 0.06694 0.08240 0.07026
0.39 6.37 0.24 2.66 3.69
0.6976 <.0001 0.8126 0.0083 0.0003
0 0.33982 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 47
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 48
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 N Mean Std Dev Std Err Minimum Maximum
144 3.8773 Male 156 3.9637 Female -0.0864 Diff (1-2)

Method
0.6915 0.7160 0.7044
0.0576 0.0573 0.0814

DF
1.6667 2.6667
5.0000 5.0000
Variances
t Value
Pr > |t|
Equal Pooled Satterthwaite Unequal
298 297.38
-1.06 0.2896 -1.06 0.2889
Method
Equality of Variances Num DF Den DF F Value
Pr > F
Folded F
155
143
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 49
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 F Value Pr > F
3 Model 296 Error Corrected Total 299

R-Square
5.1427690 143.2646384 148.4074074

Coeff Var
1.7142563 0.4840022
3.54 0.0151
Root MSE
WOM Mean
0.034653
Source
17.73746
0.695703
3.922222
F Value Pr > F
DF
Anova SS
Mean Square
Monthly Allowance
3 5.14276898
1.71425633
3.54 0.0151
Class
Class Level Information Levels Values
Monthly Allowance
4 Less than 10,000 10,001 - 15,000 15,001 - 20,000 More than 20,000
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 3.9478 3.9444 3.7433
61 15,001 - 20,000 134 10,001 - 15,000 18 More than 20,000 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 Not all 1 , 2, 3, 4 are equal Decision: Reject Ho (Pr or p-value is 0.0151 that is less than 0.05)
Ha: There is a difference in word of mouth of Starbucks among the 4 monthly allowance groups
MGT3940 50
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

R-Square
20.7029133 127.7044941 148.4074074

Coeff Var
6.9009711 0.4314341
16.00 <.0001
Root MSE
WOM Mean
0.139501
Source
16.74654
DF
0.656836
3.922222
F Value Pr > F
Anova SS
Mean Square
No# of visits per month
3 20.70291328
6.90097109
16.00 <.0001
Class
No# of visits per month
4 Less than once 1-3 times 4-5 times More than 5 times
Means with the same letter are not significantly different. Mean N No# of visits per month Duncan Grouping
A A A A A B
4.3333 4.2439
19 More than 5 times 41 4-5 times
4.0528 120 1-3 times 3.6167 120 Less than once
Ho: There is no difference in word of mouth of Starbucks among people who visit Starbucks at different rates
MGT3940 51
1 = 2= 3= 4
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 No# of visits per month Less than once 1-3 times Frequency Expected Col Pct Frequency Expected Col Pct Frequency Expected Col Pct Frequency Expected Col Pct Frequency
More than 20,000
Total
4-5 times
More than 5 times
50 34.8 57.47 29 34.8 33.33 4 11.89 4.60 4 5.51 4.60 87
49 53.6 36.57 61 53.6 45.52 17 18.313 12.69 7 8.4867 5.22 134
17 24.4 27.87 22 24.4 36.07 16 8.3367 26.23 6 3.8633 9.84 61
4 7.2 22.22 8 7.2 44.44 4 2.46 22.22 2 1.14 11.11 18
120
120
41
19
Total MGT3940
300
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 53
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 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
Total
Radio or Television
Friends or Family
Social networks
Website or Blogs
Posters or Brochures
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 12.50 144
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 16.67 156
35
96
89
27
44
Total
300
Statistic Chi-Square Likelihood Ratio Chi-Square Mantel-Haenszel Chi-Square Phi Coefficient Contingency Coefficient Cramer's V
DF
Value
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)
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
DF
0.0407
t Value
1.6667
Pr > |t|
5.0000
299 44 45 46 47 48 49
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 55
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 N Mean Std Dev Std Err Minimum Maximum
229 4.0146 71 3.6244 0.3901

Variances Equal Unequal
0.6824 0.6968 0.6858

DF
0.0451 0.0827 0.0932

Pr > |t|
2.3333 1.6667
5.0000 5.0000
t Value
298 114.71
4.19 <.0001 4.14 <.0001
Method Folded F
Pr > F
70
228
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.
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One-way ANOVA H9: There is a difference in word of mouth among beverage preferred

R-Square
4.0839397 144.3234677 148.4074074

Coeff Var
1.3613132 0.4875793
2.79 0.0407
Root MSE
WOM Mean
0.027518
Source
17.80289
DF
0.698269
3.922222
F Value Pr > F
Anova SS
Mean Square
Beverage Preferred
3 4.08393973
1.36131324
2.79 0.0407
Class
Beverage Preferred
4 Coffee Tea Juice Carbonated drinks
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 3.9312 3.8889 3.7264
131 Coffee 63 Juice 39 Carbonated drinks 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
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 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
Total
80-150 Baht
151-300 Baht
More than 300 Baht
13 11.04 9.03 84 81.6 58.33 38 40.32 26.39 9 11.04 6.25 144

DF
10 11.96 6.41 86 88.4 55.13 46 43.68 29.49 14 11.96 8.97 156

Value Prob
23
170
84
23
Total
300
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)
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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
Total
145
34
15
67
21
18
144
Total Frequency Statistic Chi-Square Likelihood Ratio Chi-Square Mantel-Haenszel Chi-Square Phi Coefficient Contingency Coefficient Cramer's V DF Value Prob
156
300
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.
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.
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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
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
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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.
APPENDIX
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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 ____Freshness ____Location ____Brand ____Price ____Quality
2. When we talk about coffee, which brand comes to your mind first? (Choose only one) Starbucks True Coffee Blue-Cup Black Canyon Coffee World Mc Caf
3. What kind of beverage do you usually drink at Starbucks? (Choose only one) Coffee Juice Mocha Tea Hot/Iced Chocolate Blended Cream
4. How often do you go to Starbucks per month? (Choose only one) Less than once 4-5 times 1-3 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 151-300 Baht
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80-150 Baht More than 300 Baht

6. How do you get updated information about Starbucks? (Choose only one) Newspaper/ Magazine Friends/Family Website/Blogs Radio/Television Social networks 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 Variables and Statements 7. Interaction Behavior 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. Store Perception 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. Trust 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. Authenticity 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 5 5 5 5 4 4 4 4 3 3 3 3 2 2 2 2 1 1 1 1 5 5 5 5 4 4 4 4 3 3 3 3 2 2 2 2 1 1 1 1 5 5 5 5 4 4 4 4 3 3 3 3 2 2 2 2 1 1 1 1 5 5 5 5 4 4 4 4 3 3 3 3 2 2 2 2 1 1 1 1 Strongly Agree<-->Strongly Disagree 5 4 3 2 1
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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 13. Nationality Thai 14. Academic Year Freshman Junior 15. Monthly Allowance Less than 10,000 15,001 20,000 10,001 15,000 More than 20,000 Sophomore Senior Non-Thai Female 5 5 5 4 4 4 3 3 3 2 2 2 1 1 1
16. What kind of beverage do you prefer to drink? (Choose only one) Coffee Juice Tea Carbonated drinks
17. Where do you like to spend your free time? (Choose only one) Department Store Home 18. Do you like American Brands? ___Yes ___No Beauty Salon Sports field
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 67 Business Research Methodology
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 Frequency Col Pct Frequency Col Pct Frequency Col Pct Frequency Col Pct Frequency
Total
13 9.03 84 58.33 38 26.39 9 6.25 144
10 6.41 86 55.13 46 29.49 14 8.97 156
23 170 84 23 300
Total
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
78
Frequency Col Pct Frequency Col Pct Frequency Col Pct Frequency Col Pct Frequency Col Pct Frequency Col Pct Frequency
67 42.95 22 14.10 6 3.85 41 26.28 10 6.41 10 6.41 156
145 34 15 67 21 18 300
54.17 12 8.33 9 6.25 26 18.06 11 7.64 8 5.56 144
Total
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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) N 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

DF
1.6667 2.3333
5.0000 5.0000
Method Pooled Satterthwaite
Variances
t Value
Pr > |t|
Equal Unequal
298 67.973
1.32 1.24
0.1886 0.2202
Method Folded F
Pr > F
50
248
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 N Mean Std Dev Std Err Minimum Maximum
Yes No Diff (1-2)

Method
238 4.0224 62 3.5376 0.4848

Variances
0.6768 0.6811 0.6777

DF
0.0439 0.0865 0.0966

t Value
2.3333 1.6667
5.0000 5.0000
Pr > |t|
Equal Pooled Satterthwaite Unequal

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298 94.795
5.02 <.0001 5.00 <.0001

Word of Mouth of Starbucks Coffee Equality of Variances Num DF Den DF F Value
Method
Pr > F
Folded F
61
237
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

R-Square
3.0152904 145.3921171 148.4074074

Coeff Var
1.0050968 0.4911896
2.05 0.1075
Root MSE
WOM Mean
0.020318
Source DF
17.86868
Anova SS
0.700849
3.922222
F Value Pr > F
Mean Square
Academic Year
3 3.01529035
1.00509678
2.05 0.1075
Class
Academic Year
4 Freshman Sophomore Junior Senior
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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.
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Graphs
Part 3: Personal Data
Gender 53% 52% 52% 51% 50% 49% 48% Percent 48% 47% 46% Male Q12 Gender The most respondent are female, 52%. Nationality Female
Nationality
90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Thai Non-Thai Q13 Nationality
The most respondent are Thai, 83%.
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Percent
Academic Year
Academic Year
35.00% 30.00% 25.00% 20.00% 15.00%
Percent
10.00% 5.00% 0.00%
Q14 Academic Year
The most respondent are senior student, 31.67%. Monthly Allowance
Q15 Mothly Allowance

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 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%.
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Percent
Q15 Mothly Allowance
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% 20.00%
Q2 Brand that
Percent
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% 20.00%
The most respondents usually consume coffee, 48.33%.

Percent
10.00% 0.00%
Q3 Beverage Usually Consumed
Number of Visits per Month
Number of Visits per Month

45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00%
Percent
10.00% 5.00% 0.00%
Q4 Number of Visits per Month
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% 30.00% Percent 20.00% 10.00% 0.00% Less than 80-150 baht 151-300 80 baht baht More than 300 baht Q5 Average Spending
The most respondents usually spend 80-150 baht on average in one visit, 56.67%.
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Source of Information
Q6 Source of Information
35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%
The most respondents usually get information about Starbucks from their friends & family, 32%.
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Percent
Q6 Source of Information
Data View
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Variable View
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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
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Starbucks Report - Business Research Methodology

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Word of Mouth of Starbucks Coffee

Business Research Methodology

Word of Mouth of Starbucks Coffee

Table of Contents Page

Business Research Methodology

Word of Mouth of Starbucks Coffee

Business Research Methodology

Word of Mouth of Starbucks Coffee

Word of Mouth of Starbucks Coffee

Business Research Methodology

Word of Mouth of Starbucks Coffee

Business Research Methodology

Word of Mouth of Starbucks Coffee

Business Research Methodology

Word of Mouth of Starbucks Coffee

Current news, situation and activity of Starbucks Coffee

Word of Mouth of Starbucks Coffee

Business Research Methodology

Word of Mouth of Starbucks Coffee

Word of Mouth of Starbucks Coffee

Word of Mouth of Starbucks Coffee

Business Research Methodology

Word of Mouth of Starbucks Coffee

Reasons for selecting Starbucks as our Research Topic

Business Research Methodology

Word of Mouth of Starbucks Coffee

Chapter2: Literature Review and Research Problems Literature Review

First Literature Study:

Generating positive word-of-mouth communication through customer1 employee relationships

Word of Mouth of Starbucks Coffee

Variables Studied in this Paper

Conceptual model of this paper

Business Research Methodology

Word of Mouth of Starbucks Coffee

Second Literature Study:

Interaction Behaviors Leading to Comfort in the Service Encounter

Variables Studied in this Paper

Word of Mouth of Starbucks Coffee

Business Research Methodology

Word of Mouth of Starbucks Coffee

Conceptual Model of this Paper

Third Literature Study:

Word of Mouth of Starbucks Coffee

Variables Studied in this Paper

Word of Mouth of Starbucks Coffee

Conceptual Model of this Paper

Business Research Methodology

Word of Mouth of Starbucks Coffee

Business Research Methodology

Word of Mouth of Starbucks Coffee

Word of Mouth of Starbucks Coffee

Business Research Methodology

Word of Mouth of Starbucks Coffee

Conceptual Model of Word of Mouth of Starbucks Coffee

Business Research Methodology

Word of Mouth of Starbucks Coffee

Proposed Conceptual Model of Starbucks

Word of Mouth toward Starbucks

Business Research Methodology

Word of Mouth of Starbucks Coffee

Chapter3: Research Methodology

http://en.wikipedia.org/wiki/Exploratory_research http://en.wikipedia.org/wiki/Descriptive_research MGT3940 26

Business Research Methodology

Brand Price Quality