1st Chapter - COFFEE SHOP
1st Chapter - COFFEE SHOP
1st Chapter - COFFEE SHOP
CHAPTER 1
THE PROBLEM
Rationale
environments has become more than just a cup of coffee. It signifies a place
customer satisfaction and brand loyalty have been critical to the survival of
shop owners must track how their customers' demands and requirements
vary over time because shifting trends directly impact customer satisfaction
and brand loyalty, leading to increased sales, business growth, and word-
about two centuries ago. Locally, it is also a source of income for many
farmers and businesses (Tan, 2021). Moreover, coffee is the world's second
their favorite coffee shops. In the study by Tumanan and Lansangan (2012),
most respondents (46 percent) answered that going to coffee shops for
drinking and dining is their top motivation. Other reasons include relaxation,
becoming more popular across the world. Coronavirus disease (COVID) -19
forecasts that the country's love and purchasing of coffee will recover to pre-
pandemic levels and exceed them by the year 2025. Although consumption
further by the year 2025; yet, in 2020, the average Filipino consumed 3.05
the country has long been known for its love of instant coffee, there is a
saturated (Lee & Kim, 2016). This rapidly increasing alert owner or manager
convince them to return. As a result, every owner faces a high failure rate
As a result, any coffee shop must find a way to survive in this industry
service quality. They should develop unique brands that would set them
brand loyalty. They claimed that boosting service quality would improve
quality and its relationship with customer satisfaction and brand loyalty in
priority actions and choices they should enhance the service quality and
(Le et al., 2022). Moreover, this study also stated that achieving customer
with competitors.
and goods, such as listening to customers' needs and concerns and being
problem since it has a major significant, and direct influence on the success
et al., 2019). Thus, it is critical to make customers feel valued and unique by
in the global marketplace. On the other hand, the term brand loyalty through
connection and the degree to which customers feel "in sync" with the brand.
Customers with genuine brand resonance are highly devoted to the brand.
They actively seek ways to engage with it and share their experiences with
Hence, the present study will be conducted to know the service quality
of coffee shops and its effects on their customers’ satisfaction and brand
loyalty in the cities of Ilocos Norte, Philippines. In addition, the study wanted
these coffee shops. Thus, this motivated the researchers to conduct this
study.
Theoretical Framework
extinction of organizations.
to survive. Thus, the requirement for legitimacy dominates the early market,
Inertia sets in when age becomes a problem for older businesses, making it
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SCHOOL OF BUSINESS AND ACCOUNTANCY
This theory was used in the study because this is connected to the
business, including the coffee shop. Additionally, this examined the tension
risk based on the age of firms. Also, the conflict between the
commencement of a new coffee shop and the aging of the older coffee shop
has become competitive resulting in tight competition, and has been critical
conceptualize and measure quality (Cronin & Taylor, 1992; Gronroos, 1984;
related to, but not the same as, satisfaction (Parasuraman et al., 1988).
Each component was split into two statements: one measuring views on the
statements in SERVQUAL, and half of them test the expectations and the
al., 1991).
with questions such as "Is the company reliable in providing the service?" Is
customer is reliability.
Customers’
perceptions of the
service quality of the
accounting firms
Reliability
Assurance
Tangibles
Empathy
Responsiveness
decision.
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SCHOOL OF BUSINESS AND ACCOUNTANCY
customers’ perceptions of the service quality among coffee shops. The five
expectations for the second service encounter are high, the consumer is
likely to demand the same high level of service again, raising the stakes for
repetitive and loyal customer, it benefits from free and incredibly effective
have high expectations and the reality falls short, they will be unsatisfied and
likely rate their experience as less than satisfying (Gligor & Bozkurt, 2021).
This theory provided the foundation for the main premises of the study
that a customer’s level of satisfaction and the factors that must be addressed
in its analysis, therefore its application in this study on the factors that affect
coffee shops.
Dover, 1979).
The idea believes that customers are motivated enough to adjust their
perceptions of how well it works changed. Customers can lessen their stress
performance gap.
attachment to a single brand, such that when they continue to buy products
intangible asset that can outlast product life cycles. As a result, if a brand
has a large number of loyal customers, it may keep its leading position even
theory.
that when they continue to buy products from that brand, they no longer
Conceptual Framework
coffee shops and its effects on their customers’ satisfaction and brand
expectation of the service quality of the coffee shops and the customers’
perception of the service quality of the coffee shops, along with reliability,
Customers’
expectations of the
service quality among
coffee shops
• Reliability Level of
• Assurance Customers’
• Tangibles Satisfaction
• Empathy
• Responsiveness
Customers’
perceptions of the
service quality among
• Reliability
coffee shops Level of
• Assurance Brand
• Tangibles Loyalty
• Empathy
• Responsiveness
expectations.
On the other hand, there are two criterion variables of the study.
These are the level of customer satisfaction and the level of brand loyalty
dedication and great connection with the brand that is unlikely to be affected
(2014) the majority of researchers believe that brand loyalty may result in
mouth, higher profit, increased market share, and a competitive edge in the
market.
of the coffee shops and the customer perception of the service quality of the
coffee shops. It also determined the level of customer satisfaction and level
of coffee shops and its effects on their customers’ satisfaction and brand
1.1 reliability;
1.2 assurance;
1.3 tangibles;
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SCHOOL OF BUSINESS AND ACCOUNTANCY
1.5 responsiveness
2.1 reliability;
2.2 assurance;
2.3 tangibles;
2.5 responsiveness?
coffee shops?
customer satisfaction and the level of brand loyalty among coffee shops?
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SCHOOL OF BUSINESS AND ACCOUNTANCY
Hypotheses
customer satisfaction and the level of brand loyalty among coffee shops.
shops and its effects on their customer satisfaction and brand loyalty in the
The parameters of the study were the customers of the two cities of
Ilocos Norte: Laoag City and the City of Batac. Purposive sampling was used
in gathering the data, which contributed to the accuracy of the results of this
study.
Laoag City and the City of Batac Ilocos Norte, Philippines. This study was
limited only to the customers of coffee shops who availed of the services at
least three times and were willing to participate and available at the time of
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SCHOOL OF BUSINESS AND ACCOUNTANCY
the study conducted. Each respondent has given the same questionnaire to
answer.
shops. The result of this study will be a great help for them to go to a place
wherein they can purchase the best goods to satisfy their desires and need
in order to have the best experience that is worth the price they are going to
pay.
Owners of the Coffee shops. The result of the study will help the
marketing strategy of the business, which will improve the strategic planning
identify trends in the market and to be more aware of the factors that could
potentially affect their products and services so that they will be ready to do
customers' satisfaction and brand loyalty. Through the findings, they will be
research skills as well as their analytical ability. They will be more aware of
skills.
study, this study may serve as a method for deepening a study’s point and
advancement.
Definition of Terms
from a company, not because it is the only option but because they trust the
company.
Coffee shops. This refers to shops that sell coffee, tea, cakes,
define and describe how services might be offered in such a way that the
customer is satisfied
well.
or feeling.