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= students are focused on their own classes and finals so they might not be wiling to take the time to participate. ‘Another limitation that we faced when we prepared these studies was creating an appropriate sampling frame. Initially we were going to focus on the femele college demographic at Cal State Fullerton within the age range 18-24, but then we realized it would be a dificult task to collect the contact information ofall those women at CSUF. We then decided it was best to use a non-probability sample and change our subjects to CSUF students in general, both male and female between 18-24 years old. A suggestion for future directions in the data collection process would be that it needs to be conducted with a decent amount of time to make sure we are prepared. With more time we would more likely be having enough people to conduct a proper focus group and also be able to distribute the questionneires with more time and ease to get enough respondents and keep it open for atleast a month. We may also want to think about other methods that cen be used to distribute the questionnaire. Perhaps handing them out at a series of Starbucks locations to reach our target audience directly, would give us more of the information we seek. 21 | Group 87 Nerina ar euytceeenli So Tt * References (n.d.). Retrieved from https://ww.loxcel.com/sbux-fag, html Soper, T. (2048, June 22). As Starbucks shares and sales slump, coffee giant revamps rewards program and invests in tech. Retrieved from https:liwww geekwire.com/2018/starbucks-shares-sales-slump-coffee-giant-revamps-tewards-progr aminvests-technology! The History and Future of Loyalty Programs. (n.d). Retrieved from http:lwww futureofbusinessandtech convbusiness-solutionsthe-history-and-future-of/oyalty-progra ms Whitten, S, (2017, May 04). Starbucks rewards members can now earn even more stars atthe grocery store. Retrieved from hittps:liwww.cnbe, com/2017/05/04/starbucks-reward-members-can-now-earn-stars-at-the-grocery-st ore. html Whitten, S. (2018, April 26). Starbucks shares sink as sales growth fails to inspire. Retrieved from https:/www.cnbe.com/2018/04/26/starbucks-reports-second-quarter-eamings-2018 html 22| Group 82 | ” ? IR wf — Starbucks Rewards i z% 2 ._ Appendix Starbucks Net Revenues by year | | | Custom bit.ly link REFERRERS Locations: 23 | Group 8a Sea lle
= Breakdown of Ethnicity What is your ethnicity? 160 responses, © BiackiAFican-American @ Hspanici.atino @ Asian Pacic Islander @ Native American @ white @ Flipine and white @ Hspanicnite @ Caucasian Filipino Ry Focus Group Data Analysis |. Executive Summary The purpose of this focus group was to determine if rewards programs promote customer loyalty and find how Starbucks can improve their rewards program to increase customer satisfaction, The focus ‘group method was used to initiate discussion end It was conducted at Cal State Fullerton with 7 participants. We found that the participants who are rewards members would like to see more rewards that don't require accumulating a lot of points over a long period of time. We created a hypothesis that giving more frequent rewards will bring more new customers and boost loyalty amongst those who already have a rewards card Il. Introduction/Background ‘We conducted a focus group to learn about the opinions and attitudes about Starbucks reward programs to help Starbucks implement ways that will enhance the customer's experience with the rewards 25 | Group 8Starbucks Rewards” %, program, We want to get an idea about the current satisfaction members have with the program and what they feo! should be improved or added to their membership. We want to know what motivated these people or discouraged them to sign up for the rewards program in the frst place. We gathered 7 participants all in the age group 19-24 at CSUF to participate inthis study. lL Questions ‘What ate your thoughts on rewards programs? What are your thoughts on loyalty cards? ‘Are you a loyalty card member? About how many ofthe loyalty cards do you have and how many do you actually use? What are some of your favorite loyalty programs and why? ‘What enticed you to become a loyalty card member for this company? ‘Would you rather receive a tangible asset with every purchase or wait until you've accumulated enough points to get a reward? How often do you go to Starbucks? How often do you go to other coffee shops? ‘Are you a Starbucks rewards member? Why did you become a rewards member? Does having a rewards card from Starbucks encourage you to buy/\visit more from there? ‘What is your favorite feature ofthe loyalty program? Do you visit single standing Starbucks stores or ones in the mall? ‘When you go to Starbucks, do you use the mobile app to order and pay or waitin lino? What is your demographic information? IV. Study Design and Methodology We conducted this research at the Pollak library on campus at CSUF. We reserved a study room at the library to create a private and comfortable environment for our participants. We had a note taker, videographer, and a moderator to lead the research. A limitation we experienced inthis process was selecting a date when the participants, note taker, moderator, and video recording person were ll available. We chose to conduct a focus group because it's an effective way to leam about the consumer's, attitudes, motives, and feelings. It’s also best because one person's response can stimulate other's responses and help further discussion about new relevant topics, concerns, or suggestion. We developed questions to help further discussions about what consumers really enjoy or dislike about the rewards 26 | Group 87 Nerina ar euytceeenli So Tt * program, We used the recording of the focus group and the note takers to notes to review and analyze the information we received V. Finding/Results Participants shared they are familar wth loyatylreward memberships provided by different companies such as Starbucks, Bath & Body works, Regal Cinemas, Victoria Secret, Sephora, a nail salon, Pacsun, and B's restaurant. 4 out ofthe 7 participants were Starbucks reward mombers. Those seemed to be more interested in giving their feedback because they would lean in closer in comparison to the ones ‘who seemed neutral and laid back because they were not part of the rewards program. This lack of engagement of some participants could be a limitation when analyzing the data. Overal, they seem to like the concept of the rewards programs although they had some concerns. 2 participants responded that they prefer instant grattication rather than accumulating points that could take a while to accumulate in order to receive a special oer. 1 stated she didn't mind waiting i the reward was valuable enough. Participants stated that convenience (easy sign up), instant discounts, and birthday rewards encouraged them to sign up for certain programs. Some stated they prefer on the spot rewards rather than accumulating x amount of points. One stated she liked having the option to choose to use the current amount of points accumulated for a specific reward or waiting to collect more points for a bigger reward. How frequently the participants, visit Starbucks ranged from once a week to 2-imes a week to 1 every 2 or 3 months end up to 1-2 times a day. The 4 Starbucks rewards members stated they never go to coffee shops other than Starbucks. This gives us a correlation between loyalty and rewards programs. They mentioned that one disadvantage was that the reward program's benefits were not avaitable at all Starbucks locations, The participants agreed their favorite part of the rewards program was the mobile app because it features mobile ordering and they can digitally present their reward card on their phone. 1 participant said they started to use the rewards program more frequently when Sterbucks release the app. The three participants who don't have Starbuck reward program, they said they don't have it because it was too complicated and the couldn't figure out how toset up. VI. Conclusions and Recommendations \We concluded that the Starbucks reward cards promote customer loyalty. People with Starbucks rewards program tend to visit only Starbucks rather than other coffee shops. We learned that the free birthday drink is the biggest reason why people/participants open their reward account. We also found that ‘most participants would prefer to get more instant rewards rather than waiting so long to accumulate so many points. We also concluded that the Starbucks app is one the feature members enjoy the most. We recommend that Starbucks should add more small rewards to enhance and increase their satisfaction with 2T | Group 8Starbucks Rewards" > = the reward program. For further research we might want fo evaluate if giving more frequent rewards or ving more valuable rewards would have a dramatic increase in sales Vil, References: We had 7 participants overall, 5 females and 2 males. Of the 7, 3 were fourth year students, 1 third year, 1 second year, 1 first year and 1 was not enrolled in school at the time. The age range of the participants were 19-24, right in our target range. The names, age and phone numbers of our participants are as follows Cassidy Figueroa /21/ (760) 330-0311 Danielle Sebring /19/ (909) 234-3065 Brenda Armenta /21/ (909) 549-3172 Zac Thorn /19/ (B01) 836-9635 Lauren Pugmire /23/ (801) 616-8638 Amy Czerwinski /23/ (714) 745-1795 Andrew Chung /19/ (657) 253-1650 28 | Group 8