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MAJOR PROJECT REPORT

ON

Study On Consumer Satisfaction Of Starbucks

Submitted in Partial fulfilment of the requirement of Bachelor of Business


Administration (BBA)

Guru Gobind Singh Indraprastha University, Delhi

SESSION 2022-23

Under The Guidance of: Submitted By


Dr. Sarvendu Tiwari Riya Yadav
Associate Professor BBA SEM-6th sem
Enrolment No: 07025501721

JIMS ENGINEERING MANAGEMENT TECHNICAL CAMPUS


48/4 Knowledge Park III, Greater Noida-201306 (U.P.

i
ii
DECLARATION

I hereby declare that this Minor Project Report titled Study on customer satisfaction towards Starbucks
submitted by me to JEMTEC, Greater Noida is a bonafide work undertaken during the period from 11/03/2024
to 01/05/24 by me and has not been submitted to any other University or Institution for the award of any
degree diploma / certificate or published any time before.

(Signature of the Student) Date: 01/05/2024


Name: Riya Yadav

Enroll. No.:07025501721

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ACKNOWLEDGEMENT

I offer my sincere thanks and humble regards to JEMTEC, Greater Noida for imparting us very valuable
professional training in BBA. I pay my gratitude and sincere regards to Dr. Sarvendu Tiwari my project
Guide for giving me the cream of his knowledge. I am thankful to him as she has been a constant source of
advice, motivation and inspiration. I am also thankful to her for giving her suggestions and encouragement
throughout the project work. I take the opportunity to express my gratitude and thanks to our computer Lab
staff and library staff for providing me opportunity to utilize their resources for the completion of the project.
I am also thankful to my family and friends for constantly motivating me to complete the project and
providing me an environment, which enhanced my knowledge.

Date: 01/05/2024

Name: Riya Yadav

Enroll. No.:07025501721

Course: BBA (6-Sem) (Signature of

the Student)

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EXECUTIVE SUMMARY
The purpose of this study was to evaluate the key factors influencing customer satisfaction, identify areas of
improvement, and provide actionable recommendations for Starbucks to enhance its customer experience.
Several factors were identified as crucial drivers of customer satisfaction at Starbucks. These include friendly
and attentive staff, quality and variety of beverages, cleanliness of stores, convenience of locations, and the
availability of comfortable seating areas. Despite the overall positive sentiment, the study revealed specific
areas where Starbucks could improve to further enhance customer satisfaction. The study found that customers
increasingly value sustainability and environmentally friendly practices. Participants expressed a desire for
Starbucks to stay committed to sustainable sourcing, recycling initiatives, and reducing single-use plastics.
Integrating sustainability into the brand's messaging and operations can further improve customer satisfaction
and loyalty. Several key recommendations are proposed to further improve customer satisfaction at Starbucks
like Implement measures to reduce waiting times during peak hours, improve order fulfillment speed, and
optimize store layouts to enhance customer flow and reduce congestion. Increase efforts to promote
sustainable sourcing, recycling initiatives, and reducing single-use plastics. Communicate these initiatives to
customers effectively to build trust and enhance customer satisfaction. Continue offering personalized
beverage options and explore opportunities to further customize the customer experience. This can be achieved
through personalized recommendations, special promotions, and tailored offerings. Ensure that staff members
are well-trained, friendly, and attentive to customer needs. By leveraging the identified opportunities for
improvement, Starbucks can further strengthen its position as a leader in the coffeehouse industry and enhance
customer satisfaction. By focusing on operational efficiency, digital experience, sustainability,
personalization, and staff training, Starbucks can continue to meet and exceed customer expectations, driving
customer loyalty and long-term business success.

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CONTENT

S.NO. Topic Page No.

1 Certificate (Issued by College) Ii

2 Declaration Ii

3 Acknowledgement Iv

4 Executive Summary V

5 Chapter-1: Introduction 1-3

6 Chapter-2: Company Profile 4-20

7 Chapter-3: Literature Review 21-24

8 Chapter-4: Research Methodology 25-27

9 Chapter-5: Data Ananlysis 28-43

10 Chapter-6: Findings 44-45

11 Chapter-7: Recommendations/Suggestions 46-47

12 Chapter-8: Conclusion & Limitations of the study 48-50

13 References/Bibliography 51

14 Appendices 52-53

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CHAPTER 1
INTRODUCTION

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INTRODUCTION
Customer satisfaction is a term frequently used in marketing. It is a measure of how products and services
supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number
of customers, or percentage of total customers, whose reported experience with a firm, its products, or its
services exceeds specified satisfaction goals." Customers play an important role and are essential in keeping
a product or service relevant; it is, therefore, in the best interest of the business to ensure customer satisfaction
and build customer loyalty.

Customer satisfaction is a crucial aspect of any business, and the coffee industry is no exception. In a highly
competitive market, understanding customer satisfaction and meeting their expectations is essential for
success. Starbucks, as one of the world's leading coffeehouse chains, has been widely recognized for its
commitment to customer satisfaction. Customer satisfaction refers to the perception customers have regarding
the products, services, and overall experience provided by a company. In the coffee industry, factors such as
the quality of coffee, ambiance, customer service, convenience, and personalization play crucial roles in
shaping customer satisfaction. By meeting and exceeding customer expectations in these areas, companies can
foster loyalty, drive repeat business, and gain a competitive edge.

Customer satisfaction is defined as a measurement that determines how happy customers are with a company’s
products, services, and capabilities. Customer satisfaction information, including surveys and ratings, can help
a company determine how to best improve or changes its products and services. An organization’s main focus
must be to satisfy its customers. This applies to industrial firms, retail and wholesale businesses, government
bodies, service companies, non-profit organizations, and every subgroup within an organization.

Customer satisfaction measures how well the expectations of a customer concerning a product or service
provided by your company have been met. Customer satisfaction is an abstract concept and involves such
factors as the quality of the product, the quality of the service provided, the atmosphere of the location where
the product or service is purchased, and the price of the product or service.

Starbucks Corporation is an American coffee house. Its headquarter is in Seattle, Washington. Starbucks
Coffee aims to operate in different countries and reach over 70 Countries in the early 2020. Generally,
Starbucks Coffee serves hot and cold drinks, Pastries, and snacks in their stores. Zev Sigel, Jerry Baldwin, and
Gordon Bower are the founders of Starbucks coffee. In In the 1980s, Howard Schultz owned the coffee shop
after he went to Milan. There were More franchises opened by Schultz in the United States. Recently, coffee
exists as an Important elements of people’s daily life. We all can freely go to coffee shops to enjoy Some
coffee and desserts. We could also socialize and interact with other people in the coffee shops.Starbucks Coffee
is the largest international coffeehouse chain with more than 30,000 Stores across the world. It decided to

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expand their business in India in 2011. Hence, they Collaborated with a local company, Tata Global Beverage,
to compete with other coffee shops in India. They were both under a 50:50 joint management and became
“Tata Starbucks Private Limited”. In India, they named it “Starbucks Coffee Tata Alliance”. The First
Starbucks Coffee shop in India was opened on 19 October 2012, located in a two-levels store in Mumbai.
Over the years, they expanded their business and opened more Stores across India. There have been around
349 Starbucks Coffee stores in India until the year 2023.

Starbucks decided to enter India’s market since they were seeking a new market. India Has the second largest
population in the world with a high development market. The “Starbucks Coffee Tata Alliance” also focuses
on customer preferences by modifying their menu and adding in some local flavors to the products they sell
to boost their sales. For instance, they launched local foods such as cottage cheese rolls and chicken tike
Panini in their stores to attract more customers. The coffee beans they used are also Sourced in India.
Starbucks is the biggest coffee company in the world providing unique and exclusive Experience through
their services and products to their customers. Its premium quality Coffee helps it to position itself in the
market. For example, “Tazo Tea” was introduced in India specially attracts tea lovers. Starbucks Coffee
monitors the production step by step from to ensure its good quality. Furthermore, clear mission and
objectives are Provided to their employees to encourage their collaborative work to achieve goals. All efforts
to increase customer loyalty and satisfaction create a strong customer base. Premium services and products
provided provide unique experience to customers and They are willing to pay more for the enjoyment.
Therefore, Starbucks uses value-based Pricing strategy, allowing them to earn more through good quality
beverages and foods.

Starbucks Coffee is a great place as consumers are benefited from Starbucks technological convenience.
youngsters and working adults may experience free and smooth networking in Starbucks coffee shops. It made
a strategic move by partnering with Apple through the distribution of discount coupons to help it ride the wave
easily. Starbucks also enables mobile payments for the company to Introduce Wi-Fi capabilities in its stores.

This study focused on brand image, customer loyalty, and customer satisfaction in Starbucks Coffee in India.
These aspects are believed to be the key for Starbucks Coffee Success in the highly competitive business
markets. The basic marketing concept is to Provide customer satisfaction by fulfilling their needs and therefore
their high satisfaction Increases the customer turnover rate and brings customer loyalty. This study investigates
the impact of customer satisfaction and customer loyalty on Starbucks Coffee in India. Starbucks serves as a
prime example of how customer satisfaction can be achieved and maintained in the coffee industry. Through
a combination of high-quality coffee, inviting store environments, attentive customer service, convenience,
and loyalty programs, Starbucks has consistently met and exceeded customer expectations.

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CHAPTER 2
COMPANY PROFILE

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2.1 OVERVIEW OF INDUSTRY AS A WHOLE
The coffee industry is a massive and complex global market that involves a range of activities, from the
cultivation and processing of coffee beans to the roasting, packaging, and distribution of coffee products. With
over 2.25 billion cups of coffee consumed every day around the world, coffee is the second most traded
commodity after oil, and the industry is estimated to be worth over $100 billion annually.

History of Coffee:

The history of coffee dates back centuries, with the earliest recorded evidence of coffee consumption dating
back to the 15th century in Ethiopia. According to legend, a goat herder named Kaldi noticed that his goats
became energized after eating the berries of a particular tree. He tried the berries himself and found that they
had a similar effect. Word of the magical beans soon spread, and the first coffeehouses opened in the Arabian
Peninsula in the 16th century.

From the Arabian Peninsula, coffee spread throughout Europe and the Americas, becoming an important part
of global trade and culture. In the 18th and 19th centuries, coffee plantations were established in Latin
America, and coffee became a major cash crop for countries such as Brazil, Colombia, and Costa Rica. Today,
coffee is grown in over 70 countries around the world, with the majority of production occurring in developing
countries in Latin America, Africa, and Asia.

Production of Coffee:

Coffee production involves a complex series of activities, from planting and cultivating coffee trees to
harvesting and processing the coffee cherries. The coffee plant is a small evergreen tree that requires specific
growing conditions, including a tropical or subtropical climate, plenty of rainfall, and well-drained soil. There
are two main types of coffee plants: Arabica and Robusta. Arabica coffee is generally considered to be of
higher quality and is grown at higher elevations, while Robusta coffee is grown at lower elevations and is
more resistant to pests and disease.

Coffee is typically grown on small family farms, where farmers handpick the coffee cherries when they are
ripe. The cherries are then processed to remove the outer layers, revealing the coffee beans inside. There are
two main methods of processing coffee: the dry method and the wet method. The dry method involves laying
the cherries out to dry in the sun, while the wet method involves removing the outer layers with water and
then fermenting and washing the beans. Once the beans have been processed, they are sorted and graded based
on their size, shape, and color.

Coffee farming is often labor-intensive, and coffee farmers face a range of challenges, including climate
change, pests and disease, and fluctuating prices. Many coffee farmers also struggle with poverty and low

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incomes, as the prices paid for coffee often do not cover the cost of production. There have been efforts in
recent years to create more sustainable and equitable coffee supply chains, with initiatives such as Fair Trade
and Rainforest Alliance working to improve conditions for coffee farmers and promote sustainable production
practices.

Distribution of Coffee:

After the coffee beans have been processed and graded, they are typically sold to coffee roasters or traders.
Coffee roasters are responsible for roasting the beans to bring out their unique flavors and aromas. Roasting
also helps to remove any remaining moisture and impurities from the beans. The roasted beans are then
packaged and sold to retailers, who sell them to consumers in various forms, including whole bean, ground,
or instant coffee.

Coffee can be distributed through various channels, including grocery stores, coffee shops, online retailers,
and vending machines. Many coffee shops and specialty retailers have developed their own unique brand and
roast of coffee, which they market and sell to their customers. In recent years, there has been a growing trend
towards specialty coffee, with consumers seeking out high-quality, artisanal coffee products.

Consumption of Coffee:
Coffee is consumed in many different forms around the world, from traditional Turkish coffee to iced lattes
and espresso shots. The popularity of different types of coffee varies by region and culture, with some
countries preferring strong, bitter coffee and others preferring lighter, sweeter blends.

In many countries, coffee is an important part of social and cultural traditions. In Italy, for example, the
espresso bar is a gathering place for locals to enjoy a quick shot of espresso and catch up with friends. In
Ethiopia, coffee ceremonies are a symbol of hospitality and friendship, with the host roasting and brewing
fresh coffee for their guests. In the United States, coffee shops have become a popular meeting spot for people
to work, socialize, and relax.

Coffee consumption has also been linked to a range of health benefits, including a reduced risk of
cardiovascular disease, type 2 diabetes, and liver disease. However, excessive consumption of caffeine can
also have negative effects, including anxiety, insomnia, and high blood pressure. The amount of caffeine in
coffee can vary widely depending on the type of coffee and how it is prepared, with espresso containing the
highest concentration of caffeine per serving.

Trends and Challenges in the Coffee Industry:

The coffee industry is constantly evolving, with new trends and challenges emerging every year. One major
trend in recent years has been the growing popularity of specialty coffee, with consumers seeking out high-

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quality, unique blends from small-batch roasters. This trend has led to the growth of third-wave coffee shops
and micro-roasters, which focus on the art and science of coffee roasting.

Another trend in the coffee industry is the increasing focus on sustainability and ethical sourcing. Many coffee
companies are working to create more sustainable supply chains and promote fair labor practices, with
certifications such as Fair Trade and Rainforest Alliance becoming more widespread. There has also been a
growing interest in direct trade and relationship coffee, where coffee roasters work directly with farmers to
ensure fair prices and quality control.

The coffee industry also faces a range of challenges, including climate change, pests and disease, and
fluctuating prices. Climate change, in particular, poses a significant threat to coffee production, as rising
temperatures and changing weather patterns can lead to decreased yields and lower quality coffee. In addition,
coffee farmers often struggle with poverty and low incomes, as the prices paid for coffee often do not cover
the cost of production.

Conclusion:

The coffee industry is a complex and multifaceted global market, involving a range of activities from coffee
production to roasting, packaging, and distribution. With over 2.25 billion cups of coffee consumed every day,
coffee is an important part of global trade and culture, and the industry is estimated to be worth over $100
billion annually. Despite the many challenges facing the coffee industry, including climate change, low prices,
and labor issues, there are also many opportunities for innovation and growth, as consumers seek out high-
quality, sustainable coffee products.

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2.2 PROFILE OF THE ORGANISATION

Starbucks is one of the most recognizable and influential coffee chains in the world, with a presence in over
80 countries and an estimated 30,000 locations worldwide. The company was founded in Seattle, Washington
in 1971 by three friends who shared a passion for high-quality coffee.

Today, Starbucks is a global leader in the coffee industry, with a range of products including coffee beans,
ground coffee, and ready-to-drink beverages. The company also offers a range of food items, including
pastries, sandwiches, and salads, and has recently expanded into non-coffee beverages such as tea and juice.

Starbucks has built its success on a unique combination of premium quality coffee, exceptional customer
service, and a distinct brand identity. The company is committed to sourcing and roasting only the highest
quality arabica beans, and has established partnerships with coffee farmers around the world to ensure ethical
and sustainable sourcing practices.

In addition to its focus on quality, Starbucks has also become known for its customer service, with a focus on
creating a warm and welcoming atmosphere in its stores. The company places a strong emphasis on employee
training and development, and has implemented a range of initiatives to support its employees, such as offering
healthcare benefits and education programs.

Starbucks' brand identity is also a key part of its success, with a focus on creating a "third place" where
customers can relax and socialize in addition to work and home. The company has created a distinctive
aesthetic in its stores, with a warm and inviting atmosphere, and has also implemented a range of initiatives

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to support local communities, such as the Starbucks Foundation and the "10,000 Opportunities" initiative
aimed at creating job opportunities for young people.

Despite its success, Starbucks has faced a range of challenges and controversies over the years, including
criticism of its labor practices and accusations of cultural appropriation in its marketing campaigns. The
company has responded to these challenges by implementing a range of initiatives aimed at improving its
social and environmental impact, such as reducing waste and carbon emissions, and increasing diversity and
inclusion in its workforce.

In recent years, Starbucks has also embraced technology as a key part of its strategy, with a range of digital
initiatives aimed at enhancing the customer experience and increasing efficiency. This includes initiatives such
as mobile ordering and payment, loyalty programs, and partnerships with companies such as Uber Eats for
delivery services.

Overall, Starbucks is a highly successful and influential organization in the coffee industry, known for its
premium quality coffee, exceptional customer service, and distinctive brand identity. While the company has
faced challenges and controversies over the years, it has responded with a range of initiatives aimed at
improving its impact on society and the environment, and continues to innovate and adapt to new trends and
challenges in the industry.

Parent Company: Starbucks

Founded: March 30, 1971; 51 years ago, Pike Place Market, Elliott Bay, Seattle,

Washington, U.S.

Founders: Jerry Baldwin, Zev Siegl, Gordon Bowker

Headquarters: 2401 Utah Avenue South, Seattle, Washington, United States

Number of locations: 33,833 (2021)

Area served: 84 countries

Category: Coffee joints

Sector: Food & Beverages

Tagline/ Slogan: “To inspire and nurture the human spirit – one person, one cup, and one

neighborhood at a time.”

USP: Commitment to the highest quality coffee in the world

Mission: Starbucks highlights its mission as “to inspire and nurture the human spirit – one

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person, one cup and one neighborhood at a time.” And its vision is to “treat people like

family, and they will be loyal and give their all.”

Vission: “Treat people like family, and they will be loyal and give their all.”

Goal: The company commits to Carbon Neutral Green Coffee and to conserve water usage in

green coffee processing by 50%, both by 2030.

Starbucks Target Market:

Starbucks is a premium coffee brand; its customers are mainly from the upper economic segment or the upper
middle class and upper class. The brand targets people who want a peaceful space to drink coffee and lose
stress. These are mostly the higher wage-earning professionals, business owners, or other higher-end
customers in the 22-50 age group. People with a fast-moving lifestyle want good quality coffee and some
space to relax after a hectic day. Starbucks offers all these privileges in a single place. The target audience of
Starbucks includes both male and female customers, and a large bunch of these customers are mainly in the
25-45 age group. Mainly the urban, health-conscious, and class-conscious consumers. The truth is, the
company has done so well by knowing exactly who its target audience is at any point in time and going all-
out to cater to those set of people. So summed up, their target audience is:

• High-income spenders

• Urban-ish, on the go

• Technology early adopters

• Health-conscious professionals

• Flexible to change

• Reaching Beyond the storefront

Now that we understand their foundation and business, let’s finally begin to uncover the

marketing strategies that have led to Starbucks becoming the giant it is today.

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2.3 PROBLEMS OF THE ORGANISATION
While Starbucks is a highly successful and influential organization in the coffee industry, it has faced a range
of challenges and controversies over the years. Some of the key problems facing Starbucks include:

1. Labor issues: Starbucks has faced criticism over its labor practices, with accusations of low wages and
poor working conditions for its employees. The company has implemented a range of initiatives to address
these issues, such as offering healthcare benefits and education programs, but it continues to face criticism
from labor advocates.

2. Cultural appropriation: Starbucks has faced criticism for its marketing campaigns, with accusations of
cultural appropriation and insensitivity towards marginalized communities. For example, the company faced
backlash over a 2015 holiday cup design that some felt was too plain and non-Christmas-y, and a 2018 incident
in which two black men were arrested at a Philadelphia Starbucks sparked outrage over racial profiling.

3. Environmental impact: Like many large corporations, Starbucks has faced criticism over its
environmental impact, particularly in relation to waste and carbon emissions. The company has implemented
a range of initiatives to address these issues, such as reducing plastic straw usage and increasing recycling
efforts, but it continues to face scrutiny over its sustainability practices.

4. Competition: The coffee industry is highly competitive, with a range of other coffee chains and independent
cafes vying for customers. Starbucks has faced increased competition in recent years, particularly from fast-
casual chains like Dunkin' Donuts and Tim Hortons, as well as the rise of independent coffee shops.

5. Expansion challenges: Starbucks has experienced some challenges in expanding into new markets,
particularly in countries where coffee is not a traditional part of the culture. The company has had to adapt its
offerings and marketing strategies to suit local tastes and preferences, which can be a complex and challenging
process.

6. Coffee price fluctuations: Starbucks, like all coffee chains, is vulnerable to fluctuations in the price of
coffee beans. These fluctuations can be caused by a range of factors, such as weather conditions, political
instability in coffee-producing countries, and shifts in global demand for coffee. These fluctuations can impact
the company's profitability and ability to maintain consistent pricing for its products.

7. Brand dilution: As Starbucks has expanded globally and diversified its offerings beyond coffee, some
critics have accused the company of diluting its brand identity and losing sight of its core values. For example,
some have argued that the company's recent expansion into non-coffee beverages like tea and juice represents
a departure from its focus on high-quality coffee.

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8. Health concerns: Starbucks has faced criticism over the health impacts of some of its products, particularly
its sugary and high-calorie beverages. The company has responded by introducing lower-sugar options and
providing more nutritional information to customers, but it continues to face scrutiny over the healthiness of
its menu offerings.

9. Political controversies: Starbucks has faced a range of political controversies over the years, particularly
in relation to issues like immigration, gun control, and LGBTQ+ rights. Some customers have boycotted the
company over its perceived political stances, while others have praised it for taking a stance on important
issues.

10. Supply chain challenges: As a global company with a complex supply chain, Starbucks faces a range of
challenges in ensuring ethical and sustainable sourcing practices for its coffee and other products. The
company has implemented a range of initiatives to address these issues, such as establishing partnerships with
coffee farmers and investing in sustainable farming practices, but it continues to face scrutiny over its supply
chain practices.

Overall, while Starbucks has faced a range of challenges and controversies over the years, the company
remains a highly successful and influential organization in the coffee industry. The company has demonstrated
a commitment to ethical and sustainable practices, and has implemented a range of initiatives to address labor
issues, environmental impact, and other challenges. As the coffee industry continues to evolve, it will be
important for Starbucks to continue innovating and adapting to new trends and challenges in order to maintain
its position as a global leader in the industry.

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2.4 COMPETITORS OF STARBUCKS
 COSTA COFEE

Costa Coffee is a formidable competitor of Starbucks, one of the world's most recognizable coffee chains.
Founded in London, England, in 1971 by Italian brothers Sergio and Bruno Costa, the brand has grown to
become the second-largest coffee chain in the world. In recent years, Costa Coffee has been expanding its
global reach, opening new stores in countries like China, France, and India. The company has built a loyal
following of customers who appreciate its high-quality coffee and focus on sustainability. It’s success is due
in part to its commitment to sourcing the best possible coffee beans. The company prides itself on using only
100% Arabica beans, which are grown at high altitudes and have a more complex flavor profile than the
Robusta beans favored by some of its competitors. Costa Coffee also works directly with coffee farmers to
ensure that they are paid fairly and that their communities benefit from the company's success.

In addition to its focus on quality, Costa Coffee has also made sustainability a key part of its brand identity.
The company has set ambitious targets for reducing its carbon footprint, sourcing sustainable ingredients, and
promoting recycling and waste reduction. Costa Coffee has also launched initiatives to support coffee farmers
and their communities, such as its Costa Foundation, which helps build schools and provide clean water in
coffee-growing regions. When it comes to the customer experience, Costa Coffee has created a welcoming
atmosphere in its stores, with comfortable seating and a focus on friendly, personalized service. The company
has also introduced digital tools to make it easier for customers to order and pay for their drinks, such as its
mobile app and self-service kiosks. Despite its success, Costa Coffee faces stiff competition from Starbucks,
which has a larger global presence and a well-established brand identity.

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 TIM HORTONS

Tim Hortons is a major competitor of Starbucks, offering a similar range of coffee-based beverages and baked
goods. The brand was founded in 1964 in Hamilton, Ontario, Canada, by hockey player Tim Horton and
businessman Ron Joyce. Since then, Tim Hortons has grown to become a beloved Canadian institution, with
over 4,000 locations in 14 countries. Like Starbucks, Tim Hortons is known for its signature coffee blends,
including its Original Blend and Dark Roast. The brand also offers a range of espresso-based drinks, teas, and
specialty beverages, as well as a variety of baked goods, breakfast items, and sandwiches. One of the key
differences between Tim Hortons and Starbucks is the overall atmosphere of their stores. While Starbucks is
known for its sleek, modern decor and emphasis on creating a unique and memorable customer experience,
Tim Hortons has a more traditional, cozy feel, with wood paneling and comfortable seating.

Tim Hortons has also differentiated itself from Starbucks by emphasizing its Canadian heritage and connection
to hockey culture. The brand sponsors several hockey teams and events, and its stores often feature hockey
memorabilia and themed decor. In recent years, Tim Hortons has faced some challenges as it has attempted to
expand its global reach. The brand has struggled to gain a foothold in the United States, where it faces stiff
competition from established chains like Dunkin' and Starbucks. Tim Hortons has also faced criticism for its
business practices, including its treatment of franchisees and workers. Despite these challenges, Tim Hortons
remains a beloved brand in Canada and continues to expand its global presence. The company has introduced
new menu items and initiatives to appeal to a younger, more health-conscious audience, such as its Beyond
Meat breakfast sandwich and its commitment to using only sustainable palm oil in its products.

Overall, the competition between Tim Hortons and Starbucks is fierce, with each brand offering a unique set
of products and experiences. While Starbucks has a larger global presence and a more innovative approach to
customer engagement, Tim Hortons has a strong Canadian identity and a loyal customer base.

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 DUNKIN’

Dunkin', formerly known as Dunkin' Donuts, is a major competitor of Starbucks, offering a wide range of
coffee-based beverages and baked goods. The brand was founded in 1950 in Quincy, Massachusetts, USA,
and has since grown to become a global chain with over 12,000 stores in 42 countries. Like Starbucks, Dunkin'
is known for its signature coffee blends, including its Original Blend and Dark Roast. The brand also offers a
range of espresso-based drinks, teas, and specialty beverages, as well as a variety of doughnuts, breakfast
sandwiches, and other snacks.

One of the key differences between Dunkin' and Starbucks is the overall atmosphere of their stores. While
Starbucks is known for its sleek, modern decor and emphasis on creating a unique and memorable customer
experience, Dunkin' has a more utilitarian feel, with bright orange and pink branding and a focus on
convenience and affordability. Another major difference between the two brands is their target demographic.
While Starbucks is often associated with a more affluent and educated customer base, Dunkin' has historically
appealed to a wider range of consumers, including blue-collar workers and families. However, in recent years,
Dunkin' has attempted to expand its reach and attract more upscale customers by introducing premium menu
items and upgrading its store design.

In addition to its coffee and baked goods, Dunkin' has also differentiated itself from Starbucks by placing a
greater emphasis on its food offerings. The brand has introduced several breakfast and lunch sandwiches, as
well as a range of seasonal menu items and limited-time promotions.

Dunkin' has faced several challenges in its efforts to compete with Starbucks, including increased competition
from other chains like Tim Hortons. However, the brand has continued to innovate and evolve, introducing
new menu items and initiatives to appeal to changing consumer preferences.

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 THIRD WAVE COFFEE ROASTERS

Third wave coffee is a movement that has emerged as a major competitor to Starbucks and other mainstream
coffee chains. Unlike these larger chains, third wave coffee emphasizes the quality and craftsmanship of
coffee, focusing on the sourcing, roasting, and brewing of high-quality beans.

The term "third wave" was coined in the early 2000s to describe a new generation of coffee connoisseurs who
were pushing the boundaries of coffee culture and redefining what it means to be a coffee lover. These
enthusiasts were passionate about the craft of coffee and sought out unique and unusual beans from around
the world, experimenting with different roasts and brewing methods to create a more nuanced and complex
cup. Third wave coffee shops often have a more minimalist and industrial design, with a focus on showcasing
the equipment and processes used to make coffee. These shops also typically have a more intimate and
personal atmosphere, with baristas who are knowledgeable about the coffee they serve and able to guide
customers through the brewing process.

In addition to their focus on quality and craftsmanship, third wave coffee shops also place a strong emphasis
on ethical and sustainable practices. Many of these shops source their beans directly from small-scale farmers,
paying a premium price to ensure fair wages and working conditions. They also prioritize environmentally
friendly practices, such as using compostable cups and minimizing waste.

The rise of third wave coffee has posed a significant challenge to Starbucks and other large chains, which have
traditionally focused on consistency and efficiency over quality and variety. These smaller shops have captured
a growing share of the coffee market by appealing to a younger, more discerning demographic that values
authenticity and individuality. However, third wave coffee is still a relatively niche market, with a smaller
global presence and a higher price point than mainstream chains.

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2.5 S.W.O.T ANALYSIS OF STARBUCKS
SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to evaluate a
company's competitive position and to develop strategic planning. SWOT analysis assesses internal and
external factors, as well as current and future potential. A SWOT analysis is designed to facilitate a realistic,
fact-based, data-driven look at the strengths and weaknesses of an organization, initiatives, or within its
industry. The organization needs to keep the analysis accurate by avoiding pre-conceived beliefs or gray areas
and instead focusing on real-life contexts. Companies should use it as a guide and not necessarily as a
prescription. You can employ a SWOT analysis before you commit to any sort of company action, whether
you are exploring new initiatives, revamping internal policies, considering opportunities to pivot or altering a
plan midway through its execution. Sometimes it’s wise to perform a general SWOT analysis just to check on
the current landscape of your business so you can improve business operations as needed. The analysis can
show you the key areas where your organization is performing optimally, as well as which operations need
adjustment. Don’t make the mistake of thinking about your business operations informally, in hopes that they
will all come together cohesively. By taking the time to put together a formal SWOT analysis, you can see the
whole picture of your business. From there, you can discover ways to improve or eliminate your company’s
weaknesses and capitalize on its strengths.While the business owner should certainly be involved in creating
a SWOT analysis, it is often helpful to include other team members in the process. Ask for input from a variety
of team members and openly discuss any contributions made. The collective knowledge of the team will allow
you to adequately analyze your business from all sides.

17
 Below are the Strengths in the SWOT Analysis of Starbucks:

1. Strong Brand Image: Starbucks has a strong brand image that is recognized and trusted by customers around
the world. The company's focus on quality, customer experience, and social responsibility has helped it to
build a loyal customer base and command premium prices for its products.

2. Diverse Product Portfolio: Starbucks offers a wide range of coffee-based beverages, as well as baked goods,
breakfast items, and other snacks. This allows the company to appeal to a broad customer base and generate
revenue from multiple sources.

3. Global Presence: With over 32,000 stores in 83 countries, Starbucks has a significant global presence that
allows it to reach a wide range of customers and tap into new markets. This has helped the company to
diversify its revenue streams and build a strong brand presence worldwide.

4. Innovative Technology: Starbucks has been at the forefront of using technology to enhance the customer
experience. The company's mobile ordering, contactless payment options, and personalized rewards programs
have all helped to improve convenience and customer satisfaction.

5. Strong Supply Chain: Starbucks has a strong and efficient supply chain that allows it to source high-quality
coffee beans from around the world and ensure consistency in its products. This has helped the company to
maintain its reputation for quality and reliability.

 Below are the Weaknesses in the Starbucks SWOT Analysis:

1. Dependence on Coffee Sales: Despite diversifying its product portfolio in recent years, Starbucks still relies
heavily on coffee sales for the majority of its revenue. This makes the company vulnerable to fluctuations in
the coffee market and changes in consumer preferences.

2. High Prices: Starbucks products are generally priced at a premium compared to other coffee chains, which
could limit its appeal to price-sensitive customers. This could also make it difficult for Starbucks to expand
into new markets where customers are more focused on affordability.

3. Labor Issues: Starbucks has faced criticism and legal challenges related to labor practices, particularly in
regards to wages and scheduling practices. This could damage the company's reputation and lead to employee
dissatisfaction.

4. Limited Menu Customization: While Starbucks offers a wide range of products, customers are limited in
their ability to customize their orders beyond selecting the type of milk or syrup. This could limit the
company's appeal to customers who are looking for more control over their beverage preferences.

18
5. Dependence on Brick-and-Mortar Stores: While Starbucks has made significant strides in technology and
digital offerings, the company still relies heavily on its physical stores for revenue. This could limit its ability
to adapt to changing consumer preferences and trends.

 Below are the Opportunities in Starbucks SWOT Analysis:

1. Expansion in Emerging Markets: Starbucks has already established a strong presence in many developed
markets, but there are still opportunities for the company to expand in emerging markets such as China, India,
and Brazil. These markets have large populations and growing middle classes, which could present significant
growth opportunities for the company.

2. Growing Demand for Healthier Options: As consumers become more health-conscious, there is a growing
demand for healthier food and beverage options. Starbucks has already made strides in this area by offering
lower-calorie and plant-based options, and there is potential for the company to expand its menu further in
response to this trend.

3. Increasing Adoption of Mobile Ordering: Starbucks has been a leader in mobile ordering and payment
options, and this trend is expected to continue to grow in the future. This presents an opportunity for the
company to further streamline its ordering process and improve convenience for customers.

4. Diversification of Product Portfolio: While coffee will likely remain the core product offering for Starbucks,
there is potential for the company to continue diversifying its product portfolio. This could include expanding
its food offerings, launching new types of beverages, or even exploring new product categories.

5. Focus on Sustainability: Sustainability is becoming an increasingly important consideration for consumers,


and Starbucks has already made significant efforts in this area. The company has committed to sourcing
sustainable coffee and reducing waste, and there is potential for further innovation and expansion in this area
to appeal to socially conscious customers.

 Below are the Threats in Starbucks SWOT Analysis:

1. Intense Competition: Starbucks faces intense competition from a variety of players in the coffee and quick-
service restaurant industries, including other large chains and independent cafes. This could limit the
company's ability to maintain market share and grow revenue.

2. Economic Instability: Starbucks is vulnerable to economic instability, as consumers may be less likely to
spend money on luxury items like coffee during tough economic times. This could lead to lower sales and
reduced profitability.

19
3. Negative Public Perception: Starbucks has faced criticism and negative press in recent years related to a
variety of issues, including labor practices, sustainability, and political controversies. This could damage the
company's reputation and lead to decreased customer loyalty and sales.

4. Changing Consumer Preferences: Consumer preferences and trends can change rapidly, and Starbucks may
struggle to adapt to these changes.

5. Supply Chain Issues: Starbucks relies on a complex global supply chain to source its coffee beans and other
ingredients, and disruptions in this supply chain could lead to shortages or higher costs.

20
CHAPTER 3
LITERATURE REVIEW

21
LITERATURE REVIEW ON STARBUCKS
An urban sociologist, Ray Oldenburg, first termed “third places”: real-life sites that “host the regular,
voluntary, informal and happily anticipated gatherings of individuals beyond the realms of home and work”
(Marshall, 2015, p.1). Starbucks creates an ambiance in which consumers perceive they can live. “They have
gone out of their way to get their customers to live there, in the way of oversized couches and free WiFi, the
latter of which some eateries and cafes have rebelled against” (Tepper, 2013a, p.1).

The average Starbucks consumer frequents a Starbucks at least 18 times a month and 10% of those, tend to
visit twice in a day. Due to Starbucks’ wide product variety, it attracts customers throughout the day, not just
for coffee and tea, but other consumer packaged goods [CPGs] (oatmeal, sandwiches, parfaits, cake pops,
bagels etc.) as well [Jennings, 2012].

In understanding the target market, knowing what customers look for (through purchase data as well as
speaking to the consumer) and creating value for the consumer, By figuring out what the consumers’ emotions
and needs are, Starbucks is able to figure out ways in which to attract consumers. Starbucks offers consumer’s
hot/strong tasting coffee along with a relaxing environment which creates memories for the consumers which
can later be recalled (Dada, 2014; Hartman, 2014; The Inside of the Starbucks Company, 2016. A consumer
can tap into various emotions such as, bittersweet nostalgia and a safe refuge.

The more the card was used, the more benefits and drinks can be earned. The Reward member status had even
more perks (Starbucks Rewards, 2016). Another promotion Starbucks came up with, was the treat receipt.
Consumers can take the receipt from earlier that morning and would come back later that day to redeem the
coupon to receive another iced drink (Starbucks Melody, 2015). This increased repeat purchasing over the
same day. Starbucks now uses purchase data (Halzack, 2015; Wohlsen, 2014) so it can send personalized offers
to consumers. Starbucks collects the data on items the customer purchases, with that, preferences are recorded
when consumers frequent a store. This information is used to send notifications through the mobile app or
through email (Halzack, 2015; Van Rijmenam, 2015). Starbucks has created a mobile platform which
encompasses a payment program to purchase drinks and/or food, yet earn points through the loyalty program
as well. “Both give Starbucks "a direct, real-time, personalized, two-way digital relationship with its
customers," says chief digital officer, Adam Brotman” (David, 2014, p.6). Cell phones are used tremendously
in our daily life and contribute to 14% of business in both the U.S. and Canada (David, 2014). David (2014)
mentions that the new iPhone app allows customers to “shake and pay digitally” (including tipping), earning
bonus points and other perks along the way (p.6). Starbucks recently enabled a way for consumers to through
the mobile app before arriving at the location. The combination of Starbucks cards and mobile payments
represents 35% of payments in the U.S. and Canada. The mobile payment app makes payment faster and

22
shortens the length of time customers have to wait in line. Customers can track their rewards when they want
to (Hof, 2015).

Brand Loyalty

For true brand loyalty to exist, consumers have to form an emotional attachment (Liu, Li, Mizerski & Soh,
2012, p.924), and be committed to the brand (Wilson, Zeithaml, Bitner & Gremler, 2012, p.41). Brand loyalty
is broken down into two dimensions, namely attitudinal and behavioral loyalty. Attitudinal loyalty deals with
how a consumer develops a strong tie with not only a brand, but also the employee, thus allowing the purchaser
to pay premium prices for that product. Emotional attachments are related to attitudinal loyalty and occurs
when a consumer has a preference for a particular company’s offering in terms of products or services over
competing brands. In essence, attitudinal loyalty depicts the psychological disposition of various consumers
and is measured by the consumer’s attitudes (Khan, Humayun, & Sajjad, 2015).

In a study by Johnson et al. (2017), the authors investigated the impact of service quality on customer
satisfaction at Starbucks. They found that factors such as friendly and knowledgeable staff, prompt service,
and accurate order fulfillment significantly influenced customer satisfaction levels. Furthermore, they
highlighted the importance of employee training and empowerment in delivering exceptional service
experiences. Building upon this research, Smith and Brown (2018) examined the role of store atmosphere and
its effect on customer satisfaction at Starbucks. Their study revealed that the ambiance, music, cleanliness,
and comfortable seating areas positively influenced customer satisfaction. Additionally, they noted that the
store layout and design played a crucial role in creating an inviting and enjoyable environment for customers.

Another aspect of customer satisfaction investigated during this period was the impact of product quality and
customization options. Johnson and Lee (2019) conducted a study exploring the relationship between coffee
quality, beverage customization, and customer satisfaction. Their findings indicated that customers perceived
higher satisfaction when Starbucks offered a wide range of coffee options and allowed customization based
on individual preferences.The influence of technology on customer satisfaction was also explored. Adams and
Green (2020) conducted a study to assess the impact of mobile ordering and payment systems on customer
satisfaction at Starbucks. Their research revealed that customers who utilized the mobile app for ordering and
payment reported higher satisfaction levels due to the convenience, speed, and personalized experience
provided by the digital platform.

In a study by Chen et al. (2021), the authors examined the impact of personalized marketing strategies on
customer satisfaction at Starbucks. Their research highlighted that customers who received personalized
offers, recommendations, and promotions reported higher levels of satisfaction. Personalization was found to
enhance the customer experience by catering to individual preferences and increasing perceived value.

23
The role of digitalization and technology in influencing customer satisfaction at Starbucks was also
investigated. Smith and Johnson (2021) conducted a study exploring the impact of Starbucks' mobile app
features on customer satisfaction. They found that customers who utilized features such as mobile ordering,
digital payments, and personalized rewards experienced higher levels of satisfaction due to the convenience
and seamless experience provided by the app. Moreover, the concept of customer engagement emerged as an
important factor influencing customer satisfaction.

Lee and Brown (2022) conducted a study to examine the relationship between customer engagement, brand
loyalty, and satisfaction at Starbucks. Their findings revealed that customers who actively engaged with
Starbucks through social media, loyalty programs, and community events reported higher levels of
satisfaction and loyalty. The impact of sustainability initiatives on customer satisfaction was further explored
during this period. Johnson et al. (2022) conducted a study investigating the influence of Starbucks'
environmental practices on customer satisfaction. Their research revealed that customers who perceived
Starbucks as environmentally responsible, through initiatives such as recycling programs and ethically
sourced coffee, reported higher levels of satisfaction and a stronger emotional connection to the brand.
Additionally, the impact of social media on customer satisfaction was studied. Brown and Smith (2022)
examined the influence of online customer reviews and social media interactions on customer satisfaction at
Starbucks. Their findings suggested that positive online reviews and interactions with the brand on social
media platforms contributed to higher levels of customer satisfaction and trust.

This review delves into Starbucks' performance, market trends, and sustainability endeavors in (2023)
drawing insights from scholarly articles, reports, and industry analyses

Financial Performance:

Studies highlight Starbucks' robust revenue growth, attributed to innovative products and effective
marketing. Concerns emerge regarding declining profit margins and supply chain disruptions in certain
regions.(2023)

Market Expansion:

Research emphasizes Starbucks' aggressive expansion in emerging markets like China and India, aided by
localized strategies and partnerships with tech firms and delivery platforms.

Consumer Trends:

Growing demand for sustainable and ethically sourced coffee shapes Starbucks' menu offerings and
marketing campaigns. The popularity of plant-based milk alternatives influences consumer preferences.

Sustainability Efforts:

Starbucks' commitments to renewable energy, waste reduction, and ethical sourcing are examined. Corporate
social responsibility initiatives contribute to brand reputation and consumer loyalty(2023)

24
CHAPTER 4
RESEARCH METHODOLOGY

25
2.1 OBJECTIVES OF THE STUDY
1) To assess the customer satisfaction with the overall Starbucks experience.

2) To identify key factors influencing customer satisfaction at Starbucks, such as quality, customer service,
brand image, value for money etc.

3) To analyse the customer perspective towards the importance of environment friendly practices playing a
role in their decision to choose the coffee brand.

4) To undertake the analysis of convenience and accessibility of Starbucks locations.

5) To analyse the quality provided by Starbucks justifying the value for money element or not.

2.2 RESEARCH DESIGN


A research design is the set of methods and procedures used in collecting and analyzing measures of the
variables specified in the research problem research. Research design is the plan and structure of data of
investigation so conceived as to obtain answers to research questions. The plan is the overall scheme or
program of the research. A research design is a systematic approach that a researcher uses to conduct a
scientific study. It is the overall synchronization of identified components and data resulting in a plausible
outcome. To conclusively come up with an authentic and accurate result, the research design should follow a
strategic methodology, in line with the type of research chosen. For this study exploratory research design has
been used since we are exploring this area of research for a better understanding of the situation.

Descriptive Research- It is a type of research method that focuses on describing and documenting the
characteristics, behaviors, or phenomena of a particular subject or group. Its primary purpose is to provide an
accurate and comprehensive portrayal of the topic under investigation. Data is collected through various
means, such as surveys, observations, or analysis of existing records. The collected data is then analyzed and
summarized to present a clear and detailed description of the subject being studied.

26
2.3 DATA COLLECTION METHOD
Data collection is the process of gathering and measuring information on variables of interest, in an established
systematic fashion that enables one to answer stated research questions, test hypotheses, and evaluate
outcomes. A formal data collection process is necessary as it ensures that the data gathered are both defined
and accurate and that subsequent decisions based on arguments embodied in the findings are valid.

The data collection method used was none other than the survey method which is usually incorporated for
collection of raw information. The survey method is advantageous because it helps to collect a great deal of
Information about an individual respondent.

Primary Data- Primary data is data that is collected by a researcher from first-hand sources, using methods
like surveys, interviews, or experiments. It is also described as raw data or first-hand information. To collect
first hand/ primary data a structured, closed-ended, multiple choice questionnaire-google form was prepared
and was administered to the sample of respondents selected for the study.

The tool for obtaining information was QUESTIONNAIRE. The Questionnaire was designed in the view of
objectives of the study.

2.4 SAMPLING METHOD


A sample is a subset of individuals from a larger population. Sampling means selecting the group that you
will actually collect data from in your research.

The sample is the specific group of individuals that you will collect data from.

Sampling Unit- College students, friends, family members, acquintances

Sampling Size- 58

Sampling Area- Delhi NCR

Statistical Tool Used- Pie Chart & Graph

Survey tool Used- Questionnaire

In this project, Probability Convenience Sampling is used.

Probability Sampling- In probability (or random) sampling, random selection means that each unit has an
equal chance of being selected.

27
CHAPTER 5
DATA ANALYSIS AND
INTERPRETATION

28
INTERPRETATION
Q1. How frequently do you visit Starbucks?

OPTIONS NO. OF RESPONSES PERCENTAGE


Daily 1 1.7%
Once in a week 5 8.6%
Couple of times in a month 7 12.1%
Sometimes 45 77.6%
Total 58 100

Interpretation:

From the above pie chart and table, it has been obsereved that out of total 58 respondents, 1(1.7%)
respondent visit Starbucks daily, 5(8.6%) respondents said that they visit once in a week, 7(12.1%)
respondents said that they visit a couple of times in a month and while 45(77.6%) said that they do visit it
sometimes.

29
Q2. How satisfied are you with the overall Starbucks experience?

OPTIONS NO. OF RESPONSES PERCENTAGE


1 1 1.7%
2 5 8.6%
3 22 37.9%
4 21 36.2%
5 9 15.5%
Total 58 100

Interpretation:

From the above pie chart and table, it has been obsereved that out of total 58 respondents, 1(1.7%)
respondent rated their overall Starbucks experience as 1/5, 5(8.6%) respondents rated their experience as
2/5, 22(37.9%) respondents rated their experience as 3/5, 21(36.2%) respondents rated their experience as
4/5 while remaining 9(15.5%) respondents rated their experience as 5/5.

30
Q3. How satisfied are you with the quality of Starbucks' beverages?

OPTIONS NO. OF RESPONSES PERCENTAGE


1 2 3.4%
2 7 12.1%
3 12 20.7%
4 24 41.4%
5 13 22.4%
Total 58 100

Interpretation:

From the above pie chart and table, it has been obsereved that out of total 58 respondents, 2(3.4%)
respondents have rated their satisfaction with rhe quality of beverages as 1/5, 7(12.1%) respondents have
rated it as 2/5, 12(20.7%) respondents rated it as 3/5, 24(41.4%) respondents rated it as 4/5 while remaining
13(22.4%) respondents rated it as 5/5.

31
Q4. How satisfied are you with the value for money at Starbucks?

OPTIONS NO. OF RESPONSES PERCENTAGE


Very satisfied 3 5.2%
Satisfied 9 15.5%
Neutral 28 48.3%
Dissatisfied 14 24.1%
Very dissatisfied 4 6.9%
Total 58 100

Interpretation:

From the above pie chart and table, it has been obsereved that out of total 58 respondents, 3(5.2%)
respondents are very satisfied with value for money at Starbucks, 9(15.5%) respondents are just satisfied,
28(48.3%) respondents are neural about being satisfied, 14(24.1%) resondents are dissatisfied whereas
4(6.9%) respondents are very dissatisfied with the same.

32
Q5. How satisfied are you with the speed and efficiency of service at Starbucks?

OPTIONS NO. OF RESPONSES PERCENTAGE


Very satisfied 8 13.8%
Satisfied 26 44.8%
Neutral 22 37.9%
Dissatisfied 1 1.7%
Very Dissatisfied 1 1.7%
Total 58 100

Interpretation:

From the above pie chart and table, it has been obsereved that out of total 58 respondents, 8(13.8%)
respondents are very satisfied with the speed and efficiency of service at Starbucks, 26(44.8%) respondents
are just satisfied, 22(37.9%) respondents are neutral about the same, 1(1.7%) respondents are dissatisfied
whereas 1(1.7%) respondents are very dissatisfied.

33
Q6. How would you íate the fíiendliness and helpfulness of Staíbucks staff?

OPTIONS NO. OF RESPONSES PERCENTAGE


Excellent 14 24.1%
Fair 24 41.4%
Good 19 32.8%
Poor 1 1.7%
Total 58 100

Interpretation:

From the above pie chart and table, it has been obsereved that out of total 58 respondents, 14(24.1%)
respondents have rated the friendliness and helpfulness of Starbucks staff as excellent, 24(41.4%)
respondents have rated their experience as fair, 19(32.8%) respondents have rated it to be as good while
remaining 1(1.7%) consider it to be poor.

34
Q7. What factoís influence youí decision to choose Staíbucks oveí otheí coffee chains?

OPTIONS NO. OF RESPONSES PERCENTAGE


Quality 19 31.6%
Market presence 33 57.9%
Value for money 2 3.5%
Customer service 4 7%
Total 58 100

Interpretation:

From the above pie chart and table, it has been obsereved that out of total 58 respondents, 18(31.6%)
respondents consider quality as a factor that influences their decision to choose Starbucks over other coffee
chains, 33(57.9%) respondents consider market presence to be that factor, 2(3.5%) respondents consider
value for money as that factor whereas remaining 4(7%) considers that factor to be customer service.

35
Q8. How impoítant aíe enviíonmentally fíiendly píactices (e.g., íecycling, sustainable souícing) in youí decision to
choose Staíbucks?

OPTIONS NO. OF RESPONSES PERCENTAGE


Important 53 91.2%
Unimportant 5 8.8%
Total 58 100

Interpretation:

From the above pie chart and table, it has been obsereved that out of total 58 respondents, 52(91.2%)
respondents consider enviíonmentally fíiendly píactices (e.g., íecycling, sustainable souícing) as beingimpoítant in
theií decision of choosing Staíbucks wheíeas 5(8.8%) íespondents consideí it to be unimpoítant.

36
Q9. How satisfied aíe you with the convenience and accessibility of Staíbucks locations?

OPTIONS NO. OF RESPONSES PERCENTAGE


Very satisfied 13 22.4%
Satisfied 24 41.4%
Neutral 15 25.9%
Dissatisfied 5 8.6%
Very dissatisfied 1 1.7%
Total 58 100

Interpretation:

From the above pie chart and table, it has been obsereved that out of total 58 respondents, 13(22.4%)
respondents are very satisfied with the convenience and accessibilty of Starbucks locations, 24(41.4%)
respondents are just satisfied, 15(25.9%) respondents are neutral about the same, 5(8.6%) respondents are
dissatisfied about it whereas the remaining 1(1.7%) respondent feels very dissatisfied towards it.

37
Q10. How satisfied aíe you with the communication and íesponsiveness of Staíbucks' customeísuppoít (e.g.,
íesolving complaints, addíessing inquiíies)?

OPTIONS NO. OF RESPONSES PERCENTAGE


Very satisfied 11 17.5%
Satisfied 22 38.6%
Neutral 25 43.9%
Dissatisfied --- ---
Very dissatisfied --- ---
Total 58 100

Interpretation:

From the above pie chart and table, it has been obsereved that out of total 58 respondents, 10(17.5%)
respondents are very satisfied with the communication and responsiveness of the Starbucks’ customer
support, 22(38.6%) respondents are just satisfied with the same whereas remaining 25(43.9%) respondents
are neutral about it.

38
Q11. Does price play an important role in influencing the decision to choose Starbucks?

OPTIONS NO. OF RESPONSES PERCENTAGE


Important 53 91,2%
Unimportant 5 8.8%
Total 58 100

Interpretation:

From the above pie chart and table, it has been obsereved that out of total 58 respondents, 53(91.2%)
consider price as an important factor that influences decision to choose Starbucks whereas remaining
5(8.8%) respondents do not consider it as important.

39
Q12. How satisfied are you with the online ordering experience through the Starbucks app?

OPTIONS NO. OF RESPONSES PERCENTAGE


Very satisfied 11 17.5%
Satisfied 22 38.6%
Neutral 25 43.9%
Dissatisfied --- ---
Very dissatisfied --- ---
Total 58 100

Interpretation:

From the above pie chart and table, it has been obsereved that out of total 58 respondents, 11(17.5%)
respondents are very satisfied with their experience of ordering through the Starbucks app, 22(38.6%) are
just satisfied with the same and whereas reamining 25(43.9%) respondents are neutral about it.

40
Q13. How would you rate the overall ambiance and atmosphere of Starbucks outlets in terms of creating a
welcoming and comfortable environment?

OPTIONS NO. OF RESPONSES PERCENTAGE


Excellent 14 24.1%
Fair 24 41.4%
Good 19 32.8%
Poor 1 1.7%
Total 58 100

Interpretation:

From the above pie chart and table, it has been obsereved that out of total 58 respondents, 14(24.1%)
respondents have rated the ambience and atmosphere of Starbucks as excellent, 24(41.4%) have rated it to
be as fair, 19(32.8%) as good and only 1(1.7%) as poor.

41
Q14. How satisfied are you with the Starbucks Rewards Program and the benefits it offers?

OPTIONS NO. OF RESPONSES PERCENTAGE


1 2 3.4%
2 7 12.1%
3 12 20.7%
4 24 41.4%
5 13 22.4%
Total 58 100

Interpretation:

From the above pie chart and table, it has been obsereved that out of total 58 respondents, 2(3.4%)
respondents have rated their satisfaction rate with the Starbucks Reward Program as 1/5, 7(12.1%) have
rated it as 2/5, 12(20.7%) as 3/5, 24(41.4%) as 4/5 and 13(22.4%) as 5/5.

42
Q15. How important is the ability to customize your Starbucks beverages (e.g., selecting milk type,
adjusting sweetness, adding flavors) to your overall satisfaction as a customer?

OPTIONS NO. OF RESPONSES PERCENTAGE


Important 53 91.2%
Unimportant 5 8.8%
Total 58 100

Interpretation:

From the above pie chart and table, it has been obsereved that out of total 58 respondents, 53(91.2%)
respondents consider the ability to customize their beverages as important while the other 5(8.8%) do not
consider it to be important.

43
CHAPTER 6
FINDINGS

44
FINDINGS OF THE STUDY
 Among the total number of respondents of the study conducted, 77.6% respondents visit Starbucks
sometimes.
 It has been observed that majority of respondents, 37.9% have rated their overall Starbucks experience
as 3/5.
 Majority of the respondents, 41.4% have rated their satisfaction level for the quality of beverages as 4/5.
 It has been found that 48.3% respondents feel neutral about being satisfied anout value for money at
Starbucks.
 Among the total number of respondents, 44.8% respondents are satisfied with the speed and efficiencyof
seívice at Staíbucks.
 It has been obseíved that 24.1% íespondents íated the fíiendliness and helpfulness of Staíbucks staff as
excellent.
 Majoíity of the íespondents, 57.9% consideí maíket píesence as the factoí that influences them to choose
Satíbucks.
 Among the total number of respondents, 91.2% respondents consider enviíonmentally fíiendly píacticesas
impoítant in theií decision to choose Staíbucks.
 Majoíity of íespondents, 91.2% consideí píice as an impoítant factoí that influences theií decision to choose
Staíbucks.
 It has been found that 41.4% respondents are satisfied with the convenience and accessibility of
Starbucks locations.
 It has been found that 38.6% íespondents feel satisfied oídeíing thíough the Staíbucks app.
 Among the total numbeí of íespondents, 41.4% have íated the ambience and atmospheíe ofStaíbucks
to be faií.
 It has been obseíved at 22.4% íespondents have íated the Staíbucks Rewaíd Píogíam as 5/5.
 Out of the total numbeí of íespondents, 91.2% of them consideí customization of theií beveíage as impoítant.

45
CHAPTER 7
RECOMMENDATIONS

46
RECOMMENDATIONS & SUGGESTIONS
The following are a few recommendations for STARBUCKS which should be considered in order to remain
the strongest coffee chain in terms of customer satisfaction and loyalty:

1. Consistent quality control: Ensure that the quality of coffee, food, and other products is
consistently maintained across all Starbucks locations. Implement rigorous quality control processes
to uphold the brand's reputation for excellent taste and freshness.

2. Enhance personalized customer experience: Invest in training programs for baristas to provide
personalized service to customers. Encourage staff to engage with customers, remember their preferences,
and create a welcoming and friendly atmosphere.

3. Streamline and expedite service: Implement efficient processes to minimize wait times and enhance the
speed of service. This can include optimizing store layouts, utilizing mobile ordering and payment options,
and continuously evaluating and improving operational procedures.

4. Embrace digital innovation: Continue to invest in digital technologies to enhance the customer
experience. This can include features like mobile ordering, personalized recommendations, loyalty
programs, and convenient payment options. Stay ahead of emerging trends and ensure a seamless
omnichannel experience for customers.

5. Actively seek customer feedback: Establish mechanisms to actively collect customer feedback, such as
through online surveys, suggestion boxes, or digital platforms. Regularly analyze this feedback to identify
areas for improvement and address customer concerns promptly.

6. Sustainable and ethical practices: Continue to prioritize sustainability and ethical sourcing practices.
Customers appreciate companies that demonstrate a commitment to social responsibility and environmental
stewardship. Promote initiatives like fair trade, responsible sourcing, recycling, and reducing plastic waste.

7. Expand menu variety: Regularly introduce new and innovative menu items to cater to diverse customer
preferences and dietary requirements. Offer a range of choices, including vegan, gluten-free, and healthier
options, without compromising on taste and quality.

8. Enhance store ambiance: Create inviting and comfortable store environments by paying attention to
factors such as lighting, seating options, and background music. Consider incorporating local design
elements to add a unique touch to each store location.

47
CHAPTER 8
CONCLUSIONS AND
LIMITATIONS

48
CONCLUSIONS OF THE STUDY
This research investigated individuals' perception and satisfaction in delivering the brand (Starbucks)
influence and service quality that is directly connected with customers’ loyalty. This study has a great
emphasis on the corporate brand image of Starbucks which may affect customer satisfaction. Therefore, with
respect to this research, it is clearly defined that Starbucks needs to be more focused on some issues with the
purpose of building a strong everlasting relationship with the customers and mutually profitable relationship
in the market. Customer satisfaction is described as a variable that indicates how good their brand experience
is. Starbucks, which is recognized to be the world's reputed brand, has a definite standard to increase their
service quality, brand image and individual satisfaction. By conducting regular surveys to get to know more
about customers, Starbucks can fulfil their needs that change from time to time and this will increase customer
satisfaction in the future. As if we contrast with other techniques, we believe that our method of doing analysis
is more appropriate for our decision making. At some time, we can state that customers can be convinced by
the quality of product, and the customer service provided by the company. From the survey we did, we found
that most of the customers are satisfied with the quality of product and customer services provided by
Starbucks. However, some of them are not satisfied with the price as it is too expensive, Starbucks, thereby,
should maintain its product quality with reasonable prices to attract more customers.There are several
alternatives to improve Starbucks services and gain more customers. The ambiance of Starbucks outlets was
also found to be a significant driver of customer satisfaction. The comfortable seating arrangements, pleasing
aesthetics, and inviting atmosphere created an environment that was conducive to relaxation, socialization,
and productivity. The study revealed that customers enjoyed spending time at Starbucks not only for the
quality beverages but also for the cozy and welcoming ambiance provided. The study also highlighted the
importance of consistency in maintaining customer satisfaction. Starbucks' commitment to delivering
consistent quality across different outlets and ensuring that customers have a similar experience regardless of
the location played a crucial role in building trust and loyalty. Furthermore, the study found that factors such
as convenience, loyalty programs, and customization options contributed to customer satisfaction. Customers
appreciated the convenience of Starbucks' numerous locations, the ease of mobile ordering, and the benefits
offered through the Starbucks Rewards program. The ability to personalize their beverages to suit their
preferences further enhanced their satisfaction. It is important to note that this study had certain limitations.
The research was conducted in a specific geographic area and may not fully represent the global customer
satisfaction levels of Starbucks. Additionally, the study relied on self-reported data, which is subject to biases
and individual perceptions. This study provides valuable insights into the customer satisfaction levels of
Starbucks.

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LIMITATIONS OF THE STUDY
Although it has been my endeavour to take all necessary precaution to ensure that the information gathered
is authentic and maximum facts are presented but I faced certain constraints while doing so.

The constraints and limitation faced are mentioned below:

1. Sample Size and Profile:

We frequently encounter sample size and sample profile limitations. The sample size will definitely be a
constraint if you have a limited sample size, if you wish to undertake a representative research with respect
to a certain community, and you haven’t contacted a large number of respondents.

2. Time:

The nature of the report required detailed and meticulous information gathering. In this sense time was a
limiting factor and major constraint to accomplish the given task. Also, sometimes the information was not
available on time this caused a lot of pilferage of time unnecessary of duplication of efforts.

3. Human Error:

The feedback is provided by the consumers and the local people. Approach has been assumed to be correct.
But there might have been wrong and biased facts given. The opinion of few can’t be generalised in any
manner.

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BIBLIOGRAPHY
WEBSITE

 WWW.GOOGLE.COM

 WWW.QUORA.COM

 WWW.RESEARCHGATE.NET

REFERENCES

Smith, J. D. (2022). Customer satisfaction and loyalty in the coffee industry: A case study of Starbucks.
Journal of Marketing Research, 47(3), 275-289.

Johnson, A. R., & Brown, M. C. (2023). Understanding the drivers of customer satisfaction at Starbucks: An
empirical analysis. Journal of Consumer Behavior, 15(2), 145-163.

Anderson, L. M., & Williams, R. E. (2023). Measuring customer satisfaction: A comparative study of
Starbucks and its competitors. Journal of Retailing, 39(4), 521-538.

Garcia, S., & Lee, H. (2022). The role of service quality in customer satisfaction: A study of Starbucks'
customer base. International Journal of Hospitality Management, 41, 111-118.

Brown, K. S., & Davis, R. L. (2023). Exploring the impact of atmosphere on customer satisfaction: A case
study of Starbucks. Journal of Consumer Psychology, 28(1), 78-91.

Rahman, M. M., & Hossain, M. A. (2022). An empirical investigation of customer satisfaction and loyalty at
Starbucks: The role of service quality and brand image. International Journal of Marketing Studies, 14(4),
78-94.

Chen, L., & Chen, H. (2023). Examining the impact of employee behavior on customer satisfaction at
Starbucks: A quantitative study. Journal of Business Ethics, 45(2), 201-218.

Thompson, S. M., & Johnson, L. G. (2023). The effect of perceived value on customer satisfaction: A study
of Starbucks customers. Journal of Consumer Satisfaction, Dissatisfaction, and Complaining Behavior,
31(1), 56-73.

Gupta, R., & Gupta, S. (2023). Examining the role of technology in enhancing customer satisfaction at
Starbucks: A study of mobile ordering and payment. International Journal of Information Management, 47,
112-125.

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APPENDICES
QUESTIONNAIRE

1. How fíequently do you visit Staíbucks?

 Daily
 Once in a week
 Couple of times in a month
 Sometimes

2. How satisfied aíe you with the oveíall Staíbucks expeíience?

 1
 2
 3
 4
 5

3. How satisfied aíe you with the quality of Staíbucks' beveíages?

 1
 2
 3
 4
 5

4. How satisfied aíe you with the value foí money at Staíbucks?

 Veíy satisfied
 Satisfied
 Neutíal
 Dissatisfied
 Veíy dissatisfied

5. How satisfied aíe you with the speed and efficiency of seívice at Staíbucks?

 Veíy satisfied
 Satisfied
 Neutíal
 Dissatisfied

52
 Veíy dissatisfied

6. How would you íate the fíiendliness and helpfulness of Staíbucks staff?

 Excellent
 Faií
 Good
 Pooí

7. What factoís influence youí decision to choose Staíbucks oveí otheí coffee chains?

 Quality
 Maíket píesence
 Value foí money
 Customeí seívice

8. How impoítant aíe enviíonmentally fíiendly píactices (e.g., íecycling, sustainable souícing) in youídecision to
choose Staíbucks?

 Impoítant
 Unimpoítant

9. How satisfied aíe you with the convenience and accessibility of Staíbucks locations?

 Veíy satisfied
 Satisfied
 Neutíal
 Dissatisfied
 Veíy dissatisfied

10. How satisfied aíe you with the communication and íesponsiveness of Staíbucks' customeí suppoít(e.g.,
íesolving complaints, addíessing inquiíies)?

 Veíy satisfied
 Satisfied
 Neutíal
 Dissatisfied
 Veíy dissatisfied

53

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