1

A STUDY ON PERCEPTUAL DETERMINANTS OF CONSUMERS TOWARDS COFFEE

SHOPS IN INDIA

SIDDHANT SAXENA
A0101913009
MBA (G) CLASS OF 2015
EMAIL ID: siddhant168@gmail.com
AMITY BUSINESS SCHOOL
AMITY UNIVERSITY UTTAR PRADESH
SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA

SUBMITTED TO
Prof. Ashok Sharma
Assistant Professor Marketing & Retail
2

DECLARATION



The title of the Minor Project is A study on perceptual determinants of consumers
towards coffee shops in India.

I declare that (a) the work presented for assessment in this Minor Project Report is my original
work, that it has not previously been presented for any other assessment and that my debts (for
words, data, arguments and ideas) have been appropriately acknowledged; (b) work conforms to
the guidelines laid by the University, and (c) Plagiarism for this report has been checked using
plagrism.net software and is 12%.



Date: SIDDHANT SAXENA
A0101913009
MBA (G) (Class of 2015)



3


CERTIFICATE


This is to certify that Siddhant Saxena student of Masters of Business Administration General
at Amity Business School, Amity University Uttar Pradesh has completed the Minor Project
Report on A study on perceptual determinants of consumers towards coffee shops in India.
, in Partial fulfilment of the Requirements for the Degree of Master of Business Administration
General under my guidance.
The report has been checked for the plagiarism and it is acceptable.



Prof. Ashok Sharma
Assistant Professor Marketing & Retail




















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TABLE OF CONTENTS




1. Introduction 5
2. Objectives of study..6
3. Rationale of the study..6
4. Introduction of companies
Caf Coffee Day and Starbucks..7
Barista and Costa Coffee.8
Caf Mocha..9
5. Research Methodology...10
6. Data analysis and Interpretation..11
Demographics11
Crosstabs29
Regression analysis36
Pearsons correlation..37
Perceptual Mapping....39

7. Findings and Suggestions40
9. References....41
10. Annexure..42

5

Introduction


Coffee shops are increasing at a very high pace in India. Earlier coffee was the main reason why
people visited a particular coffee shop. However today there are many other factors other than
quality of coffee that influence buying behaviour of customers. These Coffee shop customers
look for something specialthe only reason why they are willing to pay so much for a cup of
coffee! The overall experience and aesthetics is today a major constituent in the way customers
perceive about a coffee shop. The coffee will only attain the customer but an overall experience
would retain the customer and make him stay for a long period of time. India has become a
favoured nation for coffee shops popularly referred as Cafes. The coffee chains market is
increasing t a very rapid rate and is expected to increase more in the next five years with the
entry of international giant Starbucks.

Coffee shops are frequently visited by both the young and old, which makes it important
to study the demographics. The service experience must be analyzed by both national and
international chains other than just premium coffee. In order to retain the clientele and maintain
and meet economic criteria every coffee store needs a USP i.e. a distinguishing factor like
offering good ambience, swift service, variety in menu etc. thus coffee shops are expanding
today to cator to the middle class as well who are willing to spend more and be a part of global
lifestyle and culture.
Today every coffee shop ranging from small sized to classy coffee cafes like Costa
Coffee, Caf Coffee Day, Barista, Caf Mocha etc have all been fighting hard to attract Indian
middle class. With Starbucks entry in India the competition would increase and also the coffee
markets outlook would change. Coffee as we all know had a major presence in Indian houses in
the South, in the form of filter coffee. Also before the entry of Starbucks the repeated purchase
patterns and the various consumption patterns were studied which showed that there is high
potential growth in coffee culture in India.
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OBJECTIVES OF THE STUDY


To provide a clear insight about the customer perception we will have following points as our

major objectives for the analysis


To study the factors which influence customers in visiting a coffee shop.
To study consumers opinion and perception about the service, price, staff, ambience etc
of a retail coffee shops.






RATIONALE OF THE STUDY

The coffee retailing sector in India is growing at a very fast pace, with several companies
active today in the market like Caf Coffee Day, Barista, Starbucks, Nescafe outlets etc.
there is cut throat competition and measures are taken by each company to eliminate or
undermine their rivals.
Today coffee shops are more than coffee the success model of each coffee shop
comprises of several factors which influences buying behavior of customers.
Other factors like dcor, product offerings, music, relaxing environment etc are also
certain perceptual determinants which need to be studied.











7

Introduction of Companies


Caf Coffee Day

Caf Coffee Day is the favourite destination for coffee for young and the young at heart. They
are part of India's largest coffee conglomerate, Amalgamated Bean Coffee Trading Company
Limited (ABCTCL). Popularly known as CCD, the company tries to provide an overall
experience to all its customers. The concept of Coffee cafes was introduced in India by CCD.
The first outlet/caf opened in 1996 on Brigade Road in Bangalore and continues to be a lively
place in the city. The young and the young at heart found it a place that they could call their own
for sometime and relax, sit down, listen to conversations and talk, have a lot of good fun or even
hold short meetings while drinking coffee. CCD today is totally in line with the audience it
targets. The brand shares a strong relationship. With an exciting journey CCD is now the biggest
coffee retail chain in India.
Range of outlets

Caf Coffee Day A lot can happen over coffee

Launched in 1996 in Bangalore, India.
Over 1500+ cafes spread across 200 cities/towns across India.
Single largest aggregator of youth in the retail space in India.
Over 300,000 customers visit the caf on a daily basis in India.
First consolidated and pure coffee outlet to find its footprint across the globe.


STARBUCKS

Starbucks and Tata coffee ( Asias largest coffee plantation company) announced a strategic
alliance with Starbucks on January 2011 to introduce Starbucks to India. In January.2012
Starbucks finally made it official by announcing a 50:50 joint venture with Tata and the outlets
would be referred as Starbucks "A Tata Alliance. Starbucks had previously tried to enter India
with a joint venture involving Kishore Biyani of the Future Group and its Indonesian franchise.
However the deal did not fall as per plans.
Starbucks opened its first store in India on 19 October 2012, measuring 4500 sq ft in Elphinstone
Building, Horniman Circle, Mumbai. Starbucks expanded its horizons by opening 2 outlets at
Terminal III of the Indira Gandhi International Airport, in Delhi on 24 January 2013 and later 1
in Connaught Place. In early 2013, Tata Global Beverages announced with an investment of 4
billion (US$65 million)it would meet its target to open 50 outlets in India by 2014.

8

Starbucks are passionate purveyors of coffee and offer an overall experience from teas to fine
pastries and the music is also chosenfor its appeal and artistry. They also offer a selection of
premium Tata Tazo teas.

Customers come to Starbucks to meet up or work or to chat. They claim that they are a
neighbourhood gathering place and they couldnt be happier about it.

BARISTA LAVAZZA


It provides an authentic Italian coffee drinking experience in a friendly, warm and no pressure
environment. First barista outlet came to India in 2000 at Basant Lok, New Delhi. It provides its
customers a third space away from home and work.

It focuses to provide a comfortable place for its customers to unwind over interesting
conversations over a cup of coffee. Barista Lavazza consists of young adults, who appreciate the
authentic flavours and tastes of coffee and are exposed to global lifestyles. Barista Coffee
Company has over 200 Barista Lavazza Crmes and Barista Lavazza Esppresso bars in over 30
cities in India till last count. Besides the Indian sub-continent, Barista Lavazza also has cafes in
locations acrossOman, Sri Lanka and the UAE. Barista is owned by Lavazza, Italy's largest
coffee company. Lavazza, the sixth largest coffee roaster in the world, has a 46.5% share in the
Italian retail market (value, source: Nielsen) and operates in over 80 countries.


Costa Coffee

Costa coffee is completely different from other coffee shops it has a warm and welcoming
atmosphere followed by the great range of coffee drinks. Next is the delicious cafe food and
finally the best trained and most passionate baristas around. It is their USP which makes them
stand out from others.

Making of every cup of coffee is an art and that is why every barista in a Costa Coffee outlet is
professionally trained. It is a skill which takes time to perfect.
DIL brought Costa Coffee to India in 2005 and this fresh whiff of coffee soon became the toast
of Indias coffee aficionados. Costa owned by Whitbread PLC which is UKs leading hospitality
company and is listed on the London Stock Exchange.

With operations in 28 Countries and 2000 outlets and revenues of over GBP 300mn.Costa
Coffee is UKs largest and internationally the second largest coffee chain.





9




MOCHA


At Mocha they serve the selection of best coffees around the world in a warm and relaxed
atmosphere.The coffee shop is inspired by the Quahveh Khannehs of Morocco and Turkey.It is
aplace where people come to talk politics,family or just order coffee and talk about a day.
Mocha is more than a experience as they have selevted the finest of coffees around the world to
serve. You can choose from African or Indian coffee, your flavour of freshly roasted and ground
American, their fruit-flavoured sheeshas from Egypt. Savour their gourmet desserts or take a sip
of their absolutely divine shakes.and if u like it the customer can bring it home.So if it is a
sheesha or a coffee or even a chair that the customer likes he can wrap it and take it home.



























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Research Methodology

Research methodology is a scientific and systematic method of searching for pertinent
knowledge on a specific subject. It is an art of scientific investigation. It is an academic activity
and comprises of the following steps:

Defining the problems

Identification of hypothesis or suggested solutions

Collecting, organizing and evaluating data

Making deductions and reaching on to conclusions

Carefully testing the findings and conclusions to determine whether they fit the
formulating hypothesis

Accepting or rejecting the formulated hypothesis based on the conclusions

Providing a significantly confident solution for the pre-defined problem stated above.

Type of research design used

Descriptive Research Design: It is a more structured, pre-planned and formal researchin which
information is clearly defined and there is prior formulation of specific hypothesis. These studies
are collected for a definite purpose and these are done to get answers to questions of who, what,
where, when and how but not why. It does not show a direct cause and effect between the
variables under study.

Sampling frame:
Respondents from Delhi/NCR and Gurgaon sector have given their response.Consumers which
have been to major coffee houses present in Indian Market have given their response. All the
respondents were age of more than eighteen years. Respondents have given their responses
through different modes. Most of them filled the response through interview and online survey
method. Moreover 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.
Sample Size: 150 respondents.

Sampling Methodology: Convenience Sampling and Judgment Sampling was used
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DATA ANALYSIS AND INTERPRETATION


DEMOGRAPHICS


AGE
Frequency Percent Valid Percent Cumulative
Percent
Valid
18-25 98 65.3 65.3 65.3
25-32 27 18.0 18.0 83.3
32-39 14 9.3 9.3 92.7
40 YEARS AND ABOVE 11 7.3 7.3 100.0
Total 150 100.0 100.0




INTERPRETATION
65% of people surveyed were between the age group 18-25.Followed by 25-32 which were
18%.
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GENDER
Frequency Percent Valid Percent Cumulative
Percent
Valid
MALE 59 39.3 39.3 39.3
FEMALE 91 60.7 60.7 100.0
Total 150 100.0 100.0





INTERPRETATION

Survey included 60.7% females and 39.3% males.




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you associate coffee shops best with
Frequency Percent Valid Percent Cumulative
Percent
Valid
cafe coffee day 114 76.0 76.0 76.0
starbucks 3 2.0 2.0 78.0
barista 19 12.7 12.7 90.7
costa coffee 14 9.3 9.3 100.0
Total 150 100.0 100.0





INTERPRETATION
Cafe coffee day is the most popular coffee shop with which people associate most.


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you prefer to go to a coffee shop mostly with
Frequency Percent Valid Percent Cumulative
Percent
Valid
family 27 18.0 18.0 18.0
friends and collegues 114 76.0 76.0 94.0
partner 8 5.3 5.3 99.3
alone 1 .7 .7 100.0
Total 150 100.0 100.0




INTERPRETATION
People mostly tend to visit coffee shops with friends (76%) followed by family(18%).



15



how often do you visit coffee shops
Frequency Percent Valid Percent Cumulative
Percent
Valid
twice a week 40 26.7 26.7 26.7
weekly 54 36.0 36.0 62.7
monthly 56 37.3 37.3 100.0
Total 150 100.0 100.0




INTERPRETATION
73.3% people tend to visit coffee shops monthly and weekly in total followed by 26.7%
twice a week.Thus most of the respondents were regular visitors of coffee shops.



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how much time spent at coffee shops

Frequency Percent Valid Percent Cumulative
Percent
Valid
less than 15 12 8.0 8.0 8.0
15-30 minutes 36 24.0 24.0 32.0
30-60 minutes 60 40.0 40.0 72.0
60-120 minutes 42 28.0 28.0 100.0
Total 150 100.0 100.0





INTERPRETATION
About 40 % of people visit a coffee shop for 30-60 minutes followed by 60-120 minutes
(28%).this shows that today coffee shops must try to provide an overall experience to its
customers so that they stay more and which in turn would increase the frequency of orders.




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What do you generally do at coffee shops
Frequency Percent Valid Percent Cumulative
Percent
Valid
sitting alone,having coffee
and enjoying the ambience
13 8.7 8.7 8.7
chatting with friends 122 81.3 81.3 90.0
relax 15 10.0 10.0 100.0
Total 150 100.0 100.0





INTERPRETATION

About 81 % of the respondents went to a coffee shop to chat with friends.

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ambience of a coffee shop matters to me
Frequency Percent Valid Percent Cumulative
Percent
Valid
strongly agree 86 57.3 57.3 57.3
agree 45 30.0 30.0 87.3
nuetral 6 4.0 4.0 91.3
disagree 7 4.7 4.7 96.0
strongly disagree 6 4.0 4.0 100.0
Total 150 100.0 100.0




INTERPRETATION

Ambience plays a very vital role for consumers before choosing a particular coffee shop as about
87% respondents feel that ambience of a coffee shop matters to them.

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crowded and a loud environment would effect my decision of visiting a coffee
shop
Frequency Percent Valid Percent Cumulative
Percent
Valid
strongly agree 70 46.7 46.7 46.7
agree 57 38.0 38.0 84.7
nuetral 15 10.0 10.0 94.7
disagree 8 5.3 5.3 100.0
Total 150 100.0 100.0




INTERPRETATION

Crowded and loud environment plays a key role for consumers before choosing a particular coffee
shop as about 84% respondents feel that ambience of a coffee shop matters to them.


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the price at a coffee shop affects my purchase behavior
Frequency Percent Valid Percent Cumulative
Percent
Valid
STRONGLY AGREE 13 8.7 8.7 8.7
AGREE 67 44.7 44.7 53.3
NUETRAL 58 38.7 38.7 92.0
DISAGREE 12 8.0 8.0 100.0
Total 150 100.0 100.0





INTERPRETATION

As compared to ambience and crowded environment price does not play a vital role in defining
consumers purchase behaviour as 83% of responses fall between agree and neutral.


21



VARIETY IN MENU MATTERS TO ME
Frequency Percent Valid Percent Cumulative
Percent
Valid
STRONGLY AGREE 82 54.7 54.7 54.7
AGREE 62 41.3 41.3 96.0
NUETRAL 6 4.0 4.0 100.0
Total 150 100.0 100.0




INTERPRETATION

Variety in menu is also a significant factor which influences consumers to visit a particular coffee
shop as responses mostly lie between strongly agree and agree(96%).



22


QUALITY OF COFFEE AFFECTS ME
Frequency Percent Valid Percent Cumulative
Percent
Valid
STRONGLY AGREE 105 70.0 70.0 70.0
AGREE 29 19.3 19.3 89.3
NUETRAL 16 10.7 10.7 100.0
Total 150 100.0 100.0





INTERPRETATION

About 70% of respondents strongly agree that quality of coffee affects their decision of visiting a
particular coffee shop. Thus coffee shops must focus more on their overall quality standards.



23







SERVICE RENDERED IS IMPORTANT TO ME
Frequency Percent Valid Percent Cumulative
Percent
Valid
STRONGLY AGREE 57 38.0 38.0 38.0
AGREE 71 47.3 47.3 85.3
NUETRAL 22 14.7 14.7 100.0
Total 150 100.0 100.0




INTERPRETATION

Service rendered at coffee shops is also an important factor influencing consumer decision thus a
swift service would help coffee shops to expand their business.
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Statistics
rate ccd on the
following
attributes- price
rate ccd on the
following
attributes-
AMBIENCE
rate ccd on the
following
attributes-
VARIETY
MENU
rate ccd on the
following
attributes-
QUALITY OF
COFFEE
N
Valid 150 150 150 150
Missing 0 0 0 0
Mean 1.91 1.73 1.88 1.76







INTERPRETATION

Ambience of cafe coffee day mainly influences the consumers behaviour to visit CCD.
Moreover customers also feel that the quality of coffee of CCD also makes them visit the
place.


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Statistics
rate
STARBUCKS
on the following
attributes- price
rate
STARBUCKS
on the following
attributes-
AMBIENCE
rate
STARBUCKS
on the following
attributes-
VARIETY
MENU
rate
STARBUCKS
on the following
attributes-
QUALITY OF
COFFEE
N
Valid 150 150 150 150
Missing 0 0 0 0
Mean 2.17 1.67 1.69 1.77






INTERPRETATION

Ambience of Starbucks highly influences the consumers behaviour to visit Starbucks.
However the second attribute which influences consumers most is variety in menu as
Starbucks offers a wide menu ranging from pastries to sandwiches, to coolers, to coffee etc.






26


Statistics
rate CAFE
MOCHA on the
following
attributes- price
rate CAFE
MOCHA on the
following
attributes-
AMBIENCE
rate CAFE
MOCHA on the
following
attributes-
VARIETY
MENU
rate CAFE
MOCHA on the
following
attributes-
QUALITY OF
COFFEE
N
Valid 150 150 150 150
Missing 0 0 0 0
Mean 2.98 2.05 1.96 2.43








INTERPRETATION

Cafe Mocha does well on variety in menu as it offers African or Indian coffee, flavour of
freshly roasted and ground American, fruit-flavoured sheeshas from Egypt are very popular.
Cafe Mocha also does well on the basis of ambience.








0
0.5
1
1.5
2
2.5
3
Price Ambience Variety in menu Quality of coffee
Mean ratings
27


Statistics
rate BARISTA
on the following
attributes- price
rate BARISTA
on the following
attributes-
AMBIENCE
rate BARISTA
on the following
attributes-
VARIETY
MENU
rate BARISTA
on the following
attributes-
QUALITY OF
COFFEE
N
Valid 150 150 150 150
Missing 0 0 0 0
Mean 1.95 1.88 1.91 1.76







INTERPRETATION

Quality of coffee is where Barista does well and it directly competes with Caf Coffee day.








1.65
1.7
1.75
1.8
1.85
1.9
1.95
Price Ambience Variety in menu Quality of coffee
Mean ratings
28



Statistics
rate COSTA
COFFEE on the
following
attributes- price
rate COSTA
COFFEE on the
following
attributes-
AMBIENCE
rate COSTA
COFFEE on the
following
attributes-
VARIETY
MENU
rate COSTA
COFFEE on the
following
attributes-
QUALITY OF
COFFEE
N
Valid 150 150 150 150
Missing 0 0 0 0
Mean 2.06 2.03 2.18 2.00








INTERPRETATION

Costa Coffee does well on the basis of quality of coffee however it must try to improve its
menu as the mean for variety in menu is the lowest.



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CROSSTABULATIONS

how often do you visit coffee shops * AGE Crosstabulation
Count
AGE Total
18-25 25-32 32-39 40 YEARS AND
ABOVE
how often do you visit coffee
shops
twice a week 27 5 4 4 40
weekly 51 0 3 0 54
monthly 20 23 7 7 56
Total 98 27 14 11 150



INTERPRETATION

Age groups 18-25 visit more often ie on a weekly basis. On the other hand all the other age groups
visit coffee shops on a monthly basis.
30



how often do you visit coffee shops * GENDER Crosstabulation
Count
GENDER Total
MALE FEMALE
how often do you visit coffee
shops
twice a week 5 35 40
weekly 29 25 54
monthly 25 31 56
Total 59 91 150




INTERPRETATION

Generally the females make more visits to a coffee shop however on a weekly basis males tend to
visit slightly more.

31


how often do you visit coffee shops * you prefer to go to a coffee shop mostly withCrosstabulation
Count
you prefer to go to a coffee shop mostly wuth Total
family friends and
collegues
partner alone
how often do you visit coffee
shops
twice a week 4 35 0 1 40
weekly 7 47 0 0 54
monthly 16 32 8 0 56
Total 27 114 8 1 150



INTERPRETATION

People tend to visit coffee shops on a weekly basis with friends and colleagues more. On the other
hand visits with family are made on a monthly basis.


32


the price at a coffee shop affects my purchase behavior * GENDER Crosstabulation
Count
GENDER Total
MALE FEMALE
the price at a coffee shop
affects my purchase
behavior
STRONGLY AGREE 13 0 13
AGREE 5 62 67
NUETRAL 29 29 58
DISAGREE 12 0 12
Total 59 91 150



INTERPRETATION

Mostly females are more conscious towards the price and it influences their buying behaviour.
Males are generally neutral towards the price attribute. However there are some which are strongly
affected by the price attribute.

33



you associate coffee shops best with * VARIETY IN MENU MATTERS TO ME Crosstabulation
Count

VARIETY IN MENU MATTERS TO ME Total
STRONGLY
AGREE
AGREE NUETRAL
you associate coffee shops
best with
cafe coffee day 49 36 4 89
starbucks 13 10 1 24
barista 7 8 0 15
costa coffee 13 8 1 22
Total 82 62 6 150








34










you associate coffee shops best with * QUALITY OF COFFEE AFFECTS ME Crosstabulation
Count

QUALITY OF COFFEE AFFECTS ME Total
STRONGLY
AGREE
AGREE NUETRAL
you associate coffee shops
best with
cafe coffee day 74 6 9 89
starbucks 13 6 5 24
barista 0 15 0 15
costa coffee 18 2 2 22
Total 105 29 16 150
35


you associate coffee shops best with * SERVICE RENDERED IS IMPORTANT TO ME Crosstabulation
Count

SERVICE RENDERED IS IMPORTANT TO ME Total
STRONGLY
AGREE
AGREE NUETRAL
you associate coffee shops
best with
cafe coffee day 39 36 14 89
starbucks 7 12 5 24
barista 4 11 0 15
costa coffee 7 12 3 22
Total 57 71 22 150



INTERPRETATION
The 3 cross tabulations done above clearly show that Cafe Coffee Day does best on 3 main attributes
that affect a consumers purchase behaviour ie. Variety in menu, quality of coffee and service
rendered as discussed earlier. Thus other companies can try to improve upon these three factors to
compete against Cafe Coffee Day. Also Barista, Costa coffee and Starbucks do well on the basis of
variety in menu.Barista and Costa coffee also offer good quality.Services at Barista are also good.
36

REGRESSION ANALYSIS

Model Summary
Model R R Square Adjusted R
Square
Std. Error of the
Estimate
1 .354
a
.125 .095 1.181
a. Predictors: (Constant), SERVICE RENDERED IS IMPORTANT TO
ME, the price at a coffee shop affects my purchase behavior,
ambience of a coffee shop matters to me, VARIETY IN MENU
MATTERS TO ME, QUALITY OF COFFEE AFFECTS ME


ANOVA
a

Model Sum of Squares df Mean Square F Sig.
1
Regression 28.716 5 5.743 4.120 .002
b

Residual 200.724 144 1.394

Total 229.440 149

a. Dependent Variable: how often do you visit coffee shops
b. Predictors: (Constant), SERVICE RENDERED IS IMPORTANT TO ME, the price at a coffee
shop affects my purchase behaviour, ambience of a coffee shop matters to me, VARIETY IN
MENU MATTERS TO ME, QUALITY OF COFFEE AFFECTS ME


Coefficients
a

Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1
(Constant) 4.270 .656

6.514 .000
the price at a coffee shop
affects my purchase
behavior
-.492 .153 -.304 -3.214 .002
ambience of a coffee shop
matters to me
-.037 .097 -.031 -.383 .702
VARIETY IN MENU
MATTERS TO ME
.163 .180 .075 .903 .368
QUALITY OF COFFEE
AFFECTS ME
-.174 .173 -.095 -1.004 .317
SERVICE RENDERED IS
IMPORTANT TO ME
.275 .150 .153 1.835 .069
a. Dependent Variable: how often do you visit coffee shops

37


INTERPRETATION

At 95% confidence level through regression analysis the results show that price effects the
number of visits to a coffee shop. The regression slope is negative which shows that if price
increases the number of times an individual visits a coffee shop decreases. Thus if price falls
by 49.2 % the number of visits to a coffee shop increases by 49.2%.


CORRELATIONS


Correlations
how often do
you visit coffee
shops
the price at a
coffee shop
affects my
purchase
behavior
how often do you visit coffee
shops
Pearson Correlation 1 -.305
**

Sig. (2-tailed)

.000
N 150 150
the price at a coffee shop
affects my purchase
behavior
Pearson Correlation -.305
**
1
Sig. (2-tailed) .000

N 150 150
**. Correlation is significant at the 0.01 level (2-tailed).


INTERPRETATION

As per Pearsons correlation there is moderate degree of negative correlation as value is -.305
which lies between -.25~ -.75.In other words if price reduces by 30.5% the number of visits
to a coffee shop would increase to 30.5 %.





38




Correlations
how much time
spent at coffee
shops
you prefer to go
to a coffee shop
mostly wuth
how much time spent at
coffee shops
Pearson Correlation 1 .424
**

Sig. (2-tailed)

.000
N 150 150
you prefer to go to a coffee
shop mostly wuth
Pearson Correlation .424
**
1
Sig. (2-tailed) .000

N 150 150
**. Correlation is significant at the 0.01 level (2-tailed).


INTERPRETATION
As per Pearsons correlation there is moderate degree of positive correlation as value is .424
which lies between -.25~ -.75.In other words your preference of visiting a coffee shop is
moderately determined by your time spent at a coffee shop.














39




























40

FINDINGS

Caf Coffee Day is most popular and generally people visit the coffee shops with
friends and colleagues to chat and it does well on all attributes.
Mostly people visit a coffee shop for a wholesome experience as they visit a coffee
shop for mostly 30-60 minutes.
Today there are several factors like ambience, variety in menu, quality of coffee,
crowded environment which affect the consumers while visiting a coffee shop.
However price also plays an important role.
Also the frequency of visiting a coffee shop decreases with the increase in age and
females make more frequent visits to a coffee shop as compared to males.
Females are more conscious towards the price


SUGGESTIONS

As per regression analysis price is negatively related with frequency of visits. Thus by
offering discounts, vouchers, free coupons, other offers coffee shops can increase
their footfall.
In order to compete with CCD other coffee shops must try to improve their
availability.
Coffee shops should focus more on the youth as they are the ones who frequently visit
coffee shops for a longer period of time.
Barista does well on the variety of its menu however it must try to improve the quality
of its coffee as well.






41

Works Cited
(n.d.). Retrieved from http://www.cafecoffeeday.com: http://www.cafecoffeeday.com/aboutus
(n.d.). Retrieved from http://www.barista.co.in: http://www.barista.co.in/Worldwide
(n.d.). Retrieved from http://en.wikipedia.org: http://en.wikipedia.org/wiki/Tata_Starbucks
(n.d.). Retrieved from http://www.mocha.co.in: http://www.mocha.co.in/concept.html




















42

ANNEXURE


1. You associate coffee shops best with?

Caf Coffee Day
Starbucks
Caf Mocha
Barista
Costa Coffee
Other:

2. You prefer to go to a coffee shop mostly with?
Family
Friends/Collegues
Partner
Alone

3. How often do you visit coffee shops?
Daily
Twice a week
Weekly
Twice a Monthly
Monthly

4. How much time do you generally spend at a coffee shop?
Less than 15
15-30 minutes
30-60 minutes
60-120 minutes

5. What do you generally do at a coffee shop?

Sitting alone, having coffee and enjoying the ambience
Reading
Writing
Working on laptop
Chatting with friends
Relax
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6. Ambience of a coffee shop matters to me

STRONGLY AGREE
AGREE
NUETRAL
DISAGREE
STRONGLY DISAGREE

7. A crowded and loud environment would affect my decision to visit a coffee shop
STRONGLY AGREE
AGREE
NUETRAL
DISAGREE
STRONGLY DISAGREE

8. The Price of the items affects my purchase at a coffee shop
STRONGLY AGREE
AGREE
NUETRAL
DISAGREE
STRONGLY DISAGREE

9. Variety in the Menu matters to me
STRONGLY AGREE
AGREE
NUETRAL
DISAGREE
STRONGLY DISAGREE

10. The Quality of Coffee is essential to me
STRONGLY AGREE
AGREE
NUETRAL
DISAGREE
STRONGLY DISAGREE

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11. Service rendered by the staff is of prime importance to me
STRONGLY AGREE
AGREE
NUETRAL
DISAGREE
STRONGLY DISAGREE

12. On this scale, rate the following attributes of Cafe Coffee Day that influence your buying
behavior cafe coffee day

highly
desirable
desirable nuetral undesirable
highly
undesirable
price

ambience

variety in
menu

quality
of coffee


13. On this scale, rate the following attributes of Starbucks that influence your buying
behaviour

highly
desirable
desirable nuetral undesirable
highly
undesirable
price

ambience

variety in
menu

quality
of coffee











45




14. On this scale, rate the following attributes of Cafe Mocha that influence your buying
behaviour

highly
desirable
desirable nuetral undesirable highly undesirable
price

ambience

variety in
menu

quality
of coffee


15. On this scale, rate the following attributes of Barista that influence your buying behaviour

highly
desirable
desirable nuetral undesirable
highly
undesirable
price

ambience

variety in
menu

quality
of coffee


16. On this scale, rate the following attributes of Costa Coffee that influence your buying
behaviour

highly
desirable
desirable nuetral undesirable
highly
undesirable
price

ambience

variety in
menu

quality
of coffee






46




Name





Age
18-25 years
25-32 years
32-39 years
40 years and above


Gender
Male
Female