Consumer Perception Towards Coffee Houses in India: Marketing Research

CONSUMER PERCEPTION TOWARDS COFFEE HOUSES IN INDIA
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MARKETING RESEARCH
Submitted toMs. V !d ! Gu"t
Submitted b#Su$b%i Mitt & 'A-()* G $im V $s%!e# 'A-(+* Se,tio! - A M.A -/+(0
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ACKNOW1EDGEMENT
It is our pleasure to thank all those who made this Marketing Research possible. We would like to thank our faculty guide Ms. Vandana Gupta for extending her patience and for immense Moral support and guidance. We would also like to thank our institution Amity usiness !chool for allowing us to undertake this pro"ect.
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DEC1ARATION
We declare that this Marketing Research #ro"ect is the result of our own efforts and that it conforms to the uni$ersity% departmental and course regulations regarding deceitful practices and plagiarism. &o material contained within this #ro"ect has been used in any other submission% by the authors% for an academic award.
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T b&e o2 Co!te!t
S. No. '. (. *hapter+' '.' '.'.' '.'.( '.'.) '.'.2 '.( '.(.' *hapter+( *hapter+) ).' ).( *hapter+2 2.' 2.( 2.) 2.2 *hapter+5 *hapter+6 To"i, A,4!o5&ed3eme!t De,& $ tio! I!t$odu,tio! Ma"or #layers in the market ***osta *offee arista /a$a00a *offee eans 3-I in single rand Retail !tarbucks 1ite$ tu$e Re6ie5 Ob7e,ti6e o2 t%e $ese $,% Introduction to the ob"ecti$e !cope of the research Rese $,% Met%odo&o3# Research -esign !ample 3rame !ample si0e !ample tool D t I!te$"$et tio! !d ! &#sis Fi!di!3 Co!,&usio! !d Su33estio!s A!!e8u$e Re2e$e!,es P3. No. ( ) , , , . '1 '' '' '( '2 ', ', '. '4 '4 (1 (1 (1 (( 22 22 25 24
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1ist o2 Fi3u$es
S.NO. '.' '.( '.) '.2 '.5 '.6 Fi3u$es **- *offee *osta *offee arista /a$a00a *offee beans *offee beans outlet !tarbucks Des,$i"tio! P3. No. . 4 '1 '' '' '(
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Abst$ ,t
7his study explored the characteristics that encourage gathering beha$ior and contribute to place attachment in selected coffee shops in the context of literature suggesting social gathering places contribute to social capital. 7hese gathering places% with the potential to enhance community in this manner% ha$e been called third places. 7he study was 8ualitati$e in nature and included the research techni8ues of $isual documentation% obser$ation and beha$ioral mapping% inter$iew% and sur$ey. A transactional approach to this study was chosen to better understand the meaning of the person+en$ironment relationship. 9ach coffee shop was obser$ed for twenty+fi$e hours for a total of se$enty+fi$e hours. 9ighteen inter$iews were conducted and sur$eys were collected from 42 patrons to re$eal patron attitudes toward the physical and social aspects of the coffee shop as well as their feelings regarding the community in which they li$e. 7he key findings regarding the physical characteristics showed the top fi$e design considerations included: cleanliness% appealing aroma% ade8uate lighting% comfortable furniture% and a $iew to the outside. A number of themes emerged related to people% their acti$ities% and their feelings and attitudes regarding the coffee shop. 9ach coffee shop was found to ha$e a uni8ue social climate and culture related to sense of belonging% territoriality and ownership% producti$ity and personal growth% opportunity for sociali0ation% support and networking% and sense of community. Regarding feelings of community% sur$ey findings from coffee shops patrons showed a positi$e correlation between length of patronage and their sense of attachment to their community.
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C% "te$ -(
I!t$odu,tio!
*offee house is a restaurant where coffee and other refreshments are ser$ed% especially one where people gather for con$ersation% games% or musical entertainment. It can also be said like a small% informal restaurant% as may be found in a hotel. While the idea was once limited to metropolitan areas% shops of this type are now found in many smaller towns and e$en some rural areas. With a product line built around one of the most popular be$erages in the world% the store stands an excellent chance of becoming a popular gathering spot% assuming the location is good and the prices are within reason. In India the first coffee house was opened in ;olkata after the battle of #lassy in ',.1 followed by *offee board in earl '421s during ritish rule at *hurch gate in Mumbai .which expanded to ,( outlets being undergone to loss in mid '451s the board closed down se$eral coffee houses. <nder the leadership of A; Gopalan the dismissed work took o$er the place and run it without management. 7he first Indian coffee workers *ooperati$e society was founded in angalore on August '4% '45,. 7he first Indian coffee =ouse was opened in &ew -elhi on >ctober (,% '45,. 7oday they are 211 of them across India and managed by ') cooperati$e societies.
(.( M 7o$ "& #e$s i! t%e m $4et3ocusing to indian market we ha$e only few ma"or players with other titans emrging soon in the india market in coming future.We may ha$e brief look on the ma"or players.
(.(.(CCDIt is a di$ision of India?s largest coffee conglomerate% Amalgamated ean *offee 7rading
*ompany /td. It is a public company founded in '446 with head8uarters at angalore. -ealing with Retail *offee% Restaurants and Retail be$erages. A *7*/ grows coffee in its own estates of '1%111 acres. 7he land $alue of the plantations is <!@(51A)11 million. It is the largest producer of Arabica beans in Asia. Apart from this% the group also sources coffee from ''%111
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small growers. A *7*/ is one of IndiaBs leading coffee exporters with clients across <!A% 9urope and Capan. It has Re$enue of <!@25 million with an employee of 5111 .
3ig '.' **- *offee 7he company is well known for its concept of $ertically integrated to cut cost which includes owning the plantations% growing the coffee% making the coffee machines to making the furniture for the outlets and the machines cost them '.( lakh each% which they say is half the cost of an imported coffee machine. 7he first **- outlet was set up on Culy ''% '446% at rigade Road% angalore%
;arnataka. 3ollowing this% it has crossed o$er '111 cafDs throughout the nation by (1''. 7hey currently ha$e ')'4 outlets spread across (. states of India as of August (1'(% number of outlets being increased almost e$ery week. A EmeterB on their official website *afecoffeeday.com keeps continuous track of the number. It has started with a cup of coffee is sold for Rs 51 onwards. **- also ha$e international outlets in *afe *offee -ay has also started its outlets in ;arachi% Vienna% -ubai and #rague. *afe *offee -ay?s di$isions include:

*offee -ay 3resh ?n? Ground% which owns 251 coffee bean and powder retail outlets. *offee -ay !8uare% a high le$el coffee bar in angalore. *offee -ay Fpress% which runs 411 plus *offee -ay kiosks. *offee -ay e$erages% which runs o$er '2%111 $ending machines.
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(.(./ Cost Co22ee-
3ig '.( *osta *offee *osta *offee is a ritish multinational coffeehouse company head8uartered in -unstable% <nited ;ingdom and a wholly owned subsidiary of Whitbread #/*. It is the second+largest coffeehouse chain in the world and the largest in the <nited ;ingdom. *osta *offee was founded in /ondon in '4,' by the Italian brothers !ergio and runo *osta% as a wholesale operation supplying roasted coffee to caterers and specialist Italian coffee shops. It was ac8uired by Whitbread in '445% since when it has grown to o$er (%(1) stores across (. countries o$erseas and ser$es more than 411 cups of coffee across the world e$ery minute. 7he business has '%),5 <; shops% (%511 *osta 9xpress $ending machines and a further .11 shops o$erseas. y the end of (1'1 the company had o$ertaken !tarbucks in the <;% reaching a ),.6G market share measured by re$enues. 7he brand had entered India in (115 through -e$yani International% part of Caipuria Group as its Master 3ranchisee. -e$yani International is one of the group firms of RC *orp. 7he brand currently has got '11 outlets in engaluru% Mumbai% -elhi% #une% Caipur and Agra.
According to Ra$i Caipuria% *hairman RC *orp the group is looking to open another '11 stores o$er the next (2 months. In (1'' 3inancial year% its re$enue is H 52( million.
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7hey currently ha$e (5 kiosks at airports% hospitals and corporate parks. ;iosks are an important aspect as some do more business than an outlet. 7hey can create more consumer touch+points and can pull more people to experience the brand. 7heir kiosk at the &ew -elhi airport sees a$erage footfall of 411 per day.
(.(.9. . $ist -
3ig '.2 arista /a$a00a arista /a$a00a is a chain of espresso bars in India. =ead8uartered in >khla% established in (111 under the name arista and ha$ing espresso bars across India% !ri /anka% angladesh and the Middle 9ast. It was established in 3ebruary (111 by the arista *offee *ompany /imited. 7he Indian chain was taken o$er by Italian coffee products manufacturer /a$a00a in (11..7he coffee is supplied by the Indian roaster 3resh and =onest% head8uartered in *hennai% which is also owned by /a$a00a. As of (1'(% the chain has (11 stores in India% with estimated annual re$enue of (11 crore. arista was the fastest brand to make it on the list of super brands and is ranked among the top 51 phenomena that changed India. arista is the first coffee retailer in India to start a loyalty program% ean+o+holic% to attract and retain customers.
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(.(.0 T%e Co22ee .e ! !d Te 1e 2 -
3ig '.5
3ig '.6
7he *offee ean I 7ea /eaf is an American coffee chain% owned and operated by International *offee I 7ea% //*% which has its corporate head8uarters in /os Angeles% *alifornia. 7he first outlet opened in !eptember '46). 7he chain has o$er 411 locations in () countries. Within the <nited !tates% 7he *offee ean I 7ea /eaf has locations in !an 3rancisco% /as Vegas% Alabama% Miami% &ew Jork *ity% and Washington% -.*. etc. 7he ma"ority of locations are in !outhern *alifornia% including /os Angeles% !an -iego% !anta arbara and Ventura. Many locations outside of *alifornia are franchises% such as =awaii. !ingapore entrepreneurs !unny and Victor !assoon ha$e opened locations throughout !outheast Asia and many other parts of the world since buying the company in '44.. 7he *offee ean I 7ea /eaf is an international chain with locations in Australia% runei%
*ambodia% *hina% 9gypt% India% Indonesia% Israel% !outh ;orea% ;uwait% /ebanon% Malaysia% Mexico% #hilippines% Katar% !audi Arabia% !ingapore% !ri /anka% <nited Arab 9mirates and Vietnam. In India it is operating in Mumbai% *handigarh% *hennai% ;olkata% =yderabad and -elhi. 7heir re$enue in (1'1 is @ ()1 million <!- with 6211 employees.
(./ FDI i! si!3&e b$ !d Ret i& -
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&otwithstanding its inability to open multi+brand retail for foreign in$estment% the go$ernment on Can ''th (1'( notified '11G 3-I in single+brand retail% pa$ing way for global chains like Adidas% /ouis Vuitton and Gucci to ha$e full ownership of their India operations. 3oreign -irect In$estment% up to '11G% under the go$ernment appro$al route% would be permitted in single brand product retail trading. =owe$er% in respect of proposals in$ol$ing 3-I beyond 5'G% the mandatory sourcing of at least )1G would ha$e to be done from the domestic small and cottage industries which ha$e a maximum in$estment in plant and machinery of @' million. According to commerce and industry minister 3-I in single brand has led to emergence of some global ma"ors in Indian market. 7his will pro$ide stimulus to domestic manufacturing $alue addition and help in technical up gradation of our small industry At present% for single+brand retailers% 5'G 3-I is permitted. Remo$al of in$estment cap would help global fashion brands especially from Italy and 3rance to strengthen their interest in the growing Indian market. Many big names ha$e already set up their operations in the country by partnering with Indian partners. 7he new policy would allow them to buy out the domestic partners.
(./.( St $bu,4s-
3ig '., !tarbucks !tarbucks *orporation is an American global coffee company and coffeehouse chain based in !eattle% Washington. !tarbucks is the largest coffeehouse company in the world% with (1%)66 stores in 6' countries% including ')%'() in the <nited !tates% '%(44 in *anada% 4,, in Capan% ,4)
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in the <nited ;ingdom% ,)( in *hina% 2,) in !outh ;orea% )6) in Mexico% (.( in 7aiwan% (12 in the #hilippines% '62 in 7hailand and ) in India. It has re$enue of @').(4 illion as of (1'( and by (1''% numbers of employees ha$e reached '24%111 all o$er the world. >riginally the company was to be called #e8uod% after whaling ship from Moby+-ick% but this name was re"ected by some of the co+founders. 7he company was instead named after the chief mate on the #e8uod% !tarbuck. 3rom '4,'A'4,6% the first !tarbucks was at '4'( #ike #lace MarketL it then was ne$er relocated. 7he company only sold roasted coffee and did not yet brew coffee to sell. -uring their first year of operation% they purchased green coffee beans from #eet?s% and then began buying directly from growers. In Canuary (1''% !tarbucks and 7ata *offee% Asia?s largest coffee plantation company% announced plans for a strategic alliance to bring !tarbucks to India and also to source and roast coffee beans at 7ata *offee?s ;odagu facility. -espite a false start in (11, in Canuary (1'(% !tarbucks has announced a "oint $enture with 7ata Global e$erages called 7ata !tarbucks. 7ata !tarbucks will own and operate !tarbucks outlets in India as !tarbucks *offee A 7ata Alliance. !tarbucks had pre$iously attempted to enter the Indian market% in (11,% with a "oint $enture in$ol$ing its Indonesian franchise and ;ishore iyani of the 3uture Group. =owe$er% the "oint $enture withdrew its foreign in$estment proposal with the Indian go$ernment. !tarbucks did not cite any reason for the withdrawal. !tarbucks opened its first store in India in Mumbai on '4 >ctober (1'(. >pening of !tarbucks in India has shown significant potential in coffee houses market in India.
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C% "te$ -/ 1ite$ tu$e Re6ie5

Research on sensation and perception% product attribute% product 8uality% ser$ice 8uality% categorisation% information search% memory% attitude and beha$iour% attitude formation and formation and satisfaction ha$e been undertaken to understand consumer beha$iour M;i$ela% '44,L Cacobs% /atham I /eeL '44.% Andaleeb I *onway% (116N. As stated by M;ar"aluoto et al% (115L =suI =ung% (115L /au et al (116L Ankomah I Jiridoe% (116N% attitudes towards purchase beha$iour are belie$ed to be shaped by many factors such as direct experience with the product% information ac8uired from others% price% nature of business% satisfaction% exposure to mass media. 7his study aims to identify the presence of such factors using the case of coffee brand and experience of top three coffee brands in -elhi M/indenmann% '444N In the current business era% the $alue and importance of customers is not something that should be set aside by companies. Marketing plans and strategies would be incomplete without paying much consideration to the customers. *ustomers will and should always be a part of the agenda in any marketing plan of any company. ecause of the implications for profitability and growth% customer retention is potentially one of the most powerful weapons that companies can employ in their fight to gain a strategic ad$antage and sur$i$e in today?s e$er increasing competiti$e en$ironment M;im et al% (11(N asically% consumers can either be sub"ecti$e or ob"ecti$e% testing the persuasi$eness of brand names. *offee shops selling the coffee products also play an important role in swaying the decisions of uni$ersity or college consumers. 7he whole package or $isual appeal of the coffee outlet can determine sales consumers not only in coffee business but also to other retail businesses may choose particular productsObrands not only because these products pro$ide the functional or performance benefits expected% but also because products can be used to express consumersB personality% social status or affiliation Msymbolic purposesN or to fulfil their internal psychological needs% such as the need for change or newness Memotional purposesN
Which means that consumers buy products for the benefits they reap out of it% the study of consumer beha$iour in$estigates the steps% or the processes in$ol$ed regarding the decisions made by the consumer. Most consumers regard the purchase of real estate to be Ehigh
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in$ol$ement goods? that re8uire complex decision+making%B in purchasing real estate% such as houses% apartments or units% consumers usually go through three key processes before they consider buying% and these are: information search% e$aluation of alternati$es and decision rules. Aside from the local coffee shops and restaurants that offer traditional coffee experience among people% international coffee brands are present among business streets in -elhi. 7he popularity of brands is seen to be the most compelling factor that contributes to the emergence of contemporary coffee experience. 7he culture of coffee brands and experience is an interesting area of empirical exploration. 7hus% this research case study hopes to explore deeper on the coffee buying beha$iour among uni$ersity students. As stated% its main goal is to identify the most important factors consumers ha$e in mind when buying coffee Mi.e. brand name% taste% price% location% con$enient% atmosphere% and othersN in either of the mentioned brands.
Marketing of coffee products with respect to the buying beha$ior of consumers has undergone se$eral changes o$er the years% especially considering the changes with the demands of the consumers. In addition to this% technological change has also widely contributed to the changes in the primary method of purchase% which now includes credit cards and cashless purchases that rely on information exchange rather than the actual act of purchasing in a store. 3rom this% de$elopment of marketing of coffee products has already continued to e$ol$e way into interacti$e marketing of the products based on one source M ailey I !chult0 (111N as different methods of ensuring the consumersB interests are being considered for their patronage. 7he marketplace has also grown to become more competiti$e% all $ying for the attention of the a$erage consumer% thus their loyalty has also continued to increase o$er the years as they are now the source of the companies that rely on their abilities to choose which they may wish for their own needs and demands. 3rom the discussion of pre$ious literatures% it is disco$ered that while coffee product and company brand loyalty may ha$e some similarities% there are essentially some considered differences especially with regards to the strategies that the companies may use to endorse their ser$ices and products. !uch actions will help the company to ensure the loyalty of their consumers% thus gi$ing them the allowance of knowing how they will be able to impro$e their ser$ices. M/ow I Altman% '44(N#lace attachment ser$es a number of functions for people and their culture. #lace attachment has the potential to offer predictability in a daily routine% a place to relax from the more formal roles of life% and the opportunity for control in $arious areas of life
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It also pro$ides the opportunity to link with friends and community in a $isible and concrete way. 7he connection to history and to culture may occur through place or through symbols that are associated with places. #lace then becomes part of the li$ed experience% an interwo$en component of life experiences% and is inseparable from them.
When relationships de$elop between people and places% the result is often a feeling of place attachment. /owM'44(N stated% P#lace attachment is the symbolic relationship formed by people gi$ing culturally shared emotionalOaffecti$e meanings to a particular space or piece of land that pro$ides the basis for the indi$idualBs and groupBs understanding of and relation to the en$ironmentQMp. '65N. #roshansky% 3abian% and ;aminoffM'4.)N described place attachment as in$ol$ing the interplay of emotions% knowledge% beliefs% and beha$iors in reference to a place.
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C% "te$ -9 Ob7e,ti6e o2 t%e Rese $,% 9.( I!t$odu,tio! to t%e Ob7e,ti6eIndia has emerged as one of the fa$ored nations for coffee shops popularly termed as *afes. 7he coffee chains market in India has witnessed a tremendous growth so far and is expected to grow rat a high pace during (1'1+'6. With the Indian middle class consumer ready to spend more and be a part of global lifestyle and culture% coffee houses in the country are on an expansion spree. 3rom small+si0ed coffee houses to classy coffee lounges leading coffee retailers such as *afe *offee -ay% arista% coffee beans and *osta *offee ha$e all been fighting hard to attract India?s growing middle class. According to our analysis *offee *hains market in India will witness phenomenal growth in near future. 7he outlook for the cafe outlet market in India seems $ery promising as the o$erall consumer spending is increasing in the country and market has great potential. Rising per capita income% increased literacy and rapid urbani0ation ha$e caused rapid growth and change in demand patterns. 7he a$ailability of more disposable income is dri$ing consumers to experience high end products. =a$ing said this% the players in the industry need to be more inno$ati$e in order to gain a big share of the e$er growing coffee consumption market in India. 9stablished coffee chains like Ca$a *ity% *afD *offee -ay and arista *offee ha$e successfully introduced a coffee drinking culture into India. &ew *offee chains like *afe #ascucci% Gloria Ceans% 7he *offee ean I 7ea /eaf and *osta *offee ha$e entered the Indian market and !tarbucks has already open in &ew -elhi and Mumbai in past few months in the year of (1'( I (1'). 7his will result in a drastic change within coffee market in India 7he entry of coffee chains like !tarbucks in India will change the outlook of the Indian coffee market. 9$en before the coffee chain re$olution% coffee had a strong presence in !outh Indian
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homes% with filter coffee or ;api being consumed at regular inter$als throughout the day. 7he increasing popularity of coffee instead of tea will be the main dri$er of coffee growth o$er the forecast period and consumer first choice hot be$erage is coffee these days. 3rom all these secondary research and to pro$ide a clear insight about the customer perception we will ha$e following points as our ma"or ob"ecti$es for the analysis + 7o study the spending pattern of people from $arious age groupBs income groups and gender on coffee houses. 7o know the purpose behind the $isits of people to these places and the amount of time they spend in the coffee houses. 7o know the preferences of the people what they want when they $isit coffee houses on different parameters. 7o find out potential of the coffee house market in India and customer perception towards brand loyalty and entrance of new coffee houses in India.
9./ S,o"e o2 t%e $ese $,% It will help to understand the Indian coffee houses market and potential and the customer perception regarding their taste and preference. 7he research is based on consumer perspecti$e which is the main frame of the research% so can be helpful for different coffee houses in order to understand consumer perspecti$e. It also tells about different spending patterns of the consumers and tells their expectations. !o different expectations of the consumer can be understood by this research. -ata collection has been done throughout different states with help of Inter$iews% mails and telephonic inter$iew as well as it was filled up by consumers which gi$es authenticity to the research and can be helpful to any coffee house.
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7he research can be also helpful for new researchers in order to analy0e consumer perspecti$e of this gi$en period of time.
C% "te$-0 Rese $,% Met%odo&o3# 0.( Rese $,% Desi3!7his research is a descripti$e research focused on the coffee houses in Indian !cenario. It was conducted to understand all the aspects of the coffee house and different consumer perceptions and opinions regarding coffee houses. Increase in number of coffee houses o$er the years in Indian markets shows significant reasons to pro$e Indian coffee market as potential market for the business. Why a tea consuming nation is preferring coffee as their style statementR And many other reasons show the changing preferences of the customer. A total of 2111 coffee shops are expected to open with a growth rate of ('G by (1'5. !ourcing coffee beans is not the key barrier for specialist coffee chains% with coffee beans accounting for an insignificant proportion of the total cost of a cup of coffee. 3or example% the cost of coffee beans in a ?*appuccino? is about .G of the sale price% the report says. Real estate o$erheads are a ma"or concern% with coffee chains facing strong competition for ac8uiring a ma"or place to open a coffee outlet or establishment. Moreo$er% coffee shops must be big enough to accommodate a large number of people with around 45G of coffee consumers in India preferring to drink on+site rather than to take away the coffee compared to around 61G in the <!. ;nowing the customer re8uirement and preferences is must in this case as the opinions of customers are always unexpected. Research is basically focused on the customerBs opinion and
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its taste. Research is designed in such a way so that it can extract the tastes and opinions of what customer is actually looking forR
0./ S m"&e F$ me7he primary demography we selected for the research was co$ering many respondents from all o$er the country. Respondents from -elhiO&*R sector ha$e gi$en their response. Respondents from different states in India ha$e gi$en their responses as coffee houses are present almost e$ery state and metropolitan cities. Many Respondents ha$e different perspecti$e so we tried to co$er a larger demography instead of a particular sector and the ma"or ob"ecti$e of the research was to identify the consumer perspecti$e which gi$es us much clear picture of their taste towards coffee houses. *onsumers which ha$e been to ma"or coffee houses present in Indian Market ha$e gi$en their response. All the respondents were age of more than eighteen years. Respondents ha$e gi$en their responses through different modes. Most of them filled the response through inter$iew% o$er the mail% telephonic inter$iew for respondents in different states and online sur$ey method. Moreo$er the data has been collected through different modes and compiled together in order to represent it graphically and representation is done through different pie charts and tables using different statistical tools.
0.9 S m"&e Si:e!ur$ey was conducted o$er around 51 respondents .Many respondents who were not able to fill up the 8uestionnaire ha$e been inter$iewed o$er the telephone in order to take their $aluable feedback. Most of the respondents who ha$e not replied were online.
0.0 S m"&e too&A sur$ey was conducted using 8uestionnaires as a primary tool for data collection. 7he language of the 8uestionnaire was 9nglish and was simple and clear. 7he 8uestionnaire was based on
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rele$ant secondary research o$er the internet and few hypothetical 8uestions were also asked in order to understand the perception of respondents consuming different coffee brands at coffee houses all o$er the country which includes many states and perception of consumer going to different coffee houses. 7he 8uestionnaire was totally consisted of (6 8uestions with different section. It was totally consisted of ( sections. In the first section of the 8uestionnaire which consisted of '. 8uestions respondents were asked about their different tastes% preferences and opinion on $arious aspects of choosing a coffee house% =ealth concern% personal opinion etc.MAnnexure'N . In the second section name and age has been asked and the contact no. was also asked% though it was an optional 8uestion as many respondents didnBt prefer to gi$e their contact numbers and were ready to fill the 8uestionnaire as an anonymous respondent to the 8uestionnaire. Respondents were also asked about the household income to see what the different income groups they belong to are and their fre8uencies of $isiting a coffee house on its basis. Marital status was also asked as there are more of youths preferring coffee houses.
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CHAPTER-; -ata interpretation
5,G of people said that they prefer coffee and .G do not.
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2(G of people intake coffee occasionally % )2G once in a day% '4G twice in a day and 5G said thrice in a day.
Ma"ority of people spend '11+(11 rupees i.e. 2(G on their e$ery $isit to coffee house and 2(G spend (11+)11 rupees i.e. 21G.
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Ma"ority of people said they $isit coffee houses on weekends i.e. 51G and only 6G on weekdays.
56G of people said that they stay for '+( hrs in the coffee house.
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(6G of the people are neutral towards the preference of house coffee and ()G of people say that they highly prefer house coffee.
Ma"ority of consumers do not prefer decaffeinated coffee i.e. (2G.
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)2G of consumer said that they mostly consume *appucino and 5G say that they less prefer cappuccino.
(6G of consumers consume /atte as their choice of coffee.
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>nly ()G of consumers do not consume 9xpresso and only '1G say that they mostly prefer 9xpresso.
*afD mocha is highly preferred by consumers of coffee i.e. (4G and ''G say they do not consume cafD mocha.
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56G of consumers of coffee $isit coffee house because of their coffee taste which they pro$ide.
()G of people consumers see $ariety of menu when they $isit coffee house.
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()G say that they see ambience as one of the factor for $isiting coffee house.
('G of consumers $isit coffee houses for the ser$ices they pro$ide.
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(2G of consumers gi$e high preference to 8uality as their reason for $isiting the coffee house.
Ma"ority of consumers said that they do not consider free gifts as their reason for $isiting the coffee house i.e. (2G.
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('G of consumers say that they gi$e less preference to con$enience as their reason for the $isit to coffee house.
'4G of consumers consider pricing as one of the reason for their $isit to coffee house.
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'4G said that they gi$e less preference to ad$ertisements as reason for $isiting coffee house.
Ma"ority of consumers do not $isit coffee house only for discounts.
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Ma"ority of consumers said that they prefer cafD coffee day i.e.))G% (2G said that they prefer starbucks% ('G prefer *osta coffee% ')G prefer /a$a00a and only 4G of consumers prefer 7he coffee bean and tea leaf.
6)G said yes for the music as their preference while $isiting the coffee house.
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,)G of consumers go with the taste as one of the characteristics of coffee.
2,G gi$e preference to their fla$or of coffee.
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)(G say that price as a characteristic not play a ma"or role while they go to coffee house.
Ma"ority gi$es preference to 8uality in their coffee i.e. (4G.
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)5G said that energy as a characteristic is less preferred while ha$ing coffee.
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(,G do not prefer packaging as a characteristic of coffee while going to coffee house.
rand name plays a ma"or role for the consumers i.e.'4G.
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5(G of people said that the will switch to other brand if their preferred brand is not a$ailable for immediate purchase.
(4G are in fa$or that they do not fall asleep when they drink coffee during the day i.e. they strongly agree with this statement.
(2G said that they agree with this statement i.e. they will prefer tea to rink decaffeinated coffee.
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22G of consumers strongly disagree with this statement they do not intake coffee because their friends do.
)'G of consumers agree with this statement that coffee gi$es them energy boost.
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)4G of consumer strongly disagree with this statement that drinking coffee is the status symbol.
Ma"ority of coffee is consumed by students i.e. 4(G.
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4(G of *onsumers of coffee are between the age of '.+(5.
6.G of consumers of coffee are male and )(G are females.
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As the ma"ority of people are students who intake coffee therefore 66G people do not earn.
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(6.(G of males stay in coffee house within ' hrs% '4G spend '+( hrs in coffee house and spend '11+(11 rupees for their per $isit. ('.2G spend their '+( hrs in coffee house and spend (11+)11 rupees. )11+211 rupee are spend by 2..G. (5G of females spend '+( hrs in coffee house and '11+(11 rupees% 21G spend '+( hrs and spend (11+)11 rupees.
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Male earning )+6 lakh spend '11+(11 rupees i.e. '1G and who do not earn spend (11+)11 rupees on e$ery $isit. 3emales earning more than '1 lakh spend '11+)11 rupees and not earning spend (11+)11 rupees i.e. )1G.
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CHAPTER-) FINDINGS<
7hrough this research we were able to find out that in India people prefer to sit and relax while drinking coffee as they spend '+( =rs. of their day in the coffee houses of their choice. *afD coffee day is selected as a most popular coffee house by the people of India followed by !tarbucks which has recently launched its outlets here and became one of the choice of Indian consumers. we also find out that cafe mocha is the fa$orite taste of consumers in coffee and 7aste% Kuality and Ambience are the factors which are mostly responsible for $isiting to coffee houses by the consumers and most importantly we cane to know that rand &ame plays an important role in the selection of coffee.
CONC1USION<
>n the basis of our ob"ecti$es we can conclude that spending pattern of consumers differs on many factors age group% income group and gender. #references of consumers towards their choice of coffee house and coffee also depends on many factors as discussed in this research and through this we also came to the conclusion about the beha$ior of consumers towards their preferable brand. 7his research also made us to an important conclusion that drinking coffee is a need of todaysB en$ironment as seeing the increase in burden on e$ery citi0en of the country. -ue to this burden or pressure people like to sit in a coffee house with their friends and colleagues and spend some good time with them which helps to release their pressure of work or any other issue in their li$es.
SUGGESIONS<
Ad$ertisements donBt affect the decision of the customers towards coffee therefore this is a matter where the brands should look into. *offee houses should make coffee according to e$ery age group as our research shows that only the age group of '.+(5 is more acti$e into coffee houses. Most importantly customers. rands should take some measures to retain their
ANNE=URE
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K'. -o you prefer coffeeR aNyes bNno K(. =ow often you intake coffeeR aN>nce in a day bN7wice in a day cN 7hrice in aday dN>casionally K). =ow much money do you spend in person on an a$erage per $isitR aN'11+(11 bN(11+)11 cN)11+211 dN211+511 eNmore than 511 K2. When do you usually $isit a coffee shopR aN weekday bN weekend cN oth K5. =ow long do you stay in a coffee shopR aN within ' hrs bN '+( hrs cN (+) hrs dN more than ) hrs
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K6. Rank the following types of coffee according to your preferrenceR on scale of '+6 M' being most preferred and 6 being least preferredN M#/9A!9 -> &>7 R9#9A7 7=9 RA&;!N aN =ouse coffee bN -ecaffeinated coffee cN *appuccino dN /atte eN 9xpresso fN *afe Mocha K,. Rank the following reasons for your $isit '1 the coffee houseR on scale of '+'1 M' being most preferred and'1 being least preferredN M#/9A!9 -> &>7 R9#9A7 7=9 RA&;!N aN 7aste bN Variety of menu cN Ambience dN !er$ice eN Kuality fN 3ree gifts gN *on$inience hN #ricing iN Ad$ertisements "N -iscounts K.. Which of the following brand you prefer the mostR aN 7he coffee bean an tea leaf bN /a$a00a cN *afe coffee day
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dN *osta coffee eN !tarbucks K4. -o you ha$e any preference of music while $isiting coffee houseR aNyes bNno K'1. Rank the different characteristics you would like in coffeeR on scale of '+, M' being most preferred and , being least preferredN M#/9A!9 -> &>7 R9#9A7 7=9 RA&;!N aN 7aste bN 3la$or cN #rice dN Kuality eN 9nergy fN #ackaging gN rand name K''. If your preferred brand is not a$ailable for immediate purchase than what will you doR aN #ostpone your purchase bN !witch on to the other brand cN Go around to see for your preferred brand K'(. Rate the following on scale of '+5 M'+ strongly agree%(+agree%)+nuetral%2+disagree%5+ strongly disagreeN M#/9A!9 -> &>7 R9#9A7 7=9 RA&;!N aN I cannot fall asleep when i drink coffee during the day bN I prefer drinking tea to drink decaffeinated coffee cN I drink coffee beacuse my friends do
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dN -rinking coffee gi$es me energy boost eN -rinking coffe is a status symbol
K'). >ccupation aNstudent bNbusiness cNser$ice K'2. Age group aN'.+(5 bN(5+)1 cN)1+25 dN25+51 eNabo$e 51
K'5. Gender aNmale bNfemale K'6. Income group aN)+6 lakh bN6+. lakh cN.+'1 lakh dNmore than '1 lakh eNnil
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Re2e$e!,es
Andaleeb% !. I *onway% *. (116% P*ustomer satisfaction in the restaurant industry: an examination of the transaction+specific modelQ% Journa o! Ser"ices Marketing% $ol. $ol. (1 M'N% pp. )+'' Ankomah% !. I Jiridoe% 9. (116% P>rganic and *on$entional 3ood: A /iterature Agriculture *entre of *anada. Anurit% C.% &ewman% ;. I *hansarker% . '444% P*onsumer eha$ior of /uxury Discussion Re$iew of
the 9conomics of *onsumer #erceptions and #referencesQ% Fina Re#ort$ >rganic
Automobiles: a comparati$e study between 7hai and <; *ustomersQ% Pa#er$ /ondon: Middlesex <ni$ersity usiness !chool.
ailey% ! I !chult0% -9 (111% P*ustomerO rand /oyalty in an Interacti$e MarketplaceQ% Journa o! A%"ertising Research% $ol. 21% no. )% p. 2'. aldinger% A/ I Rubinson% C '446% P rand /oyalty: 7he /ink between Attitude and eha$iorQ% Journa o! A%"ertising Research% $ol. )6% no. 6% p. ((. *oyles% ! I Gokey% 7* (11(% P*ustomer Retention Is &ot 9nough: -efecting *ustomers Are 3ar /ess of a #roblem 7han *ustomers Who *hange 7heir uying #atterns. &ew Ways of <nderstanding 7hese *hanges *an <nlock the #ower of /oyaltyQ% The Mc&inse' (uarter '% p. .'. -ouglas% &.% (116% PAn 9xamination of =ow #roduct In$ol$ement Affects thesis$ &ew Sealand: Auckland <ni$ersity of 7echnology. 9ngel% C.3. I lackwell% R. -. '4.(% Consu)er *eha"iour+ 2th ed. =insdale: 7he -ryden #ress. =uffman *% Mick -G% Ratneshwar ! (111% The Wh' o! Consu)#tion, Conte)#orar' Pers#ecti"es on consu)er )oti"es$ goa s an% %esires$ Routledge% /ondon. rand /oyaltyQ% A
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Cacobs% 3. A.% /atham% *.% I /ee% *. '44.% 7he relationship of customer satisfaction to strategic decisions. Journa o! Manageria Issues% $ol. '1M(N% pp. '65T. Cacoby% C. I ;yner% -. '4,)% P rand /oyalty $s repeat purchasing beha$iourQ% Journa o! Marketing Research% Vol. '1% &o. '% p. '+4 Cohnson% * I Mullen% '441% The Ps'cho og' o! Consu)er *eha"iour$ /awrence 9rlbaum
Associates% =illsdale% &C.
Altman% I. I /ow% !. M9ds.N M'44(N. P ace attach)ent+ &ew Jork: #lenum #ress.
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CONSUMER PERCEPTION TOWARDS COFFEE HOUSES IN INDIA