Lee Choong Enn (John)

0807LA86387

Sim Poh Leng

0804LA86540

Amanda Lee Wei Lyn

0804LA86601

Luo Yan (Kevin)

0804LA85787

BD 30/31 HR 3

MKT L 123 Marketing Study Project

Dr. Catheryn Khoo

Table of Content

Particulars Pages

Abstracts

Acknowledgement

1.0 Introduction

2.0 Literature Review

2.1 Food Quality

2.2 Physical Environment

2.3 Service Quality

2.4 Consumer behavior & Loyalty

2.5 Buying Power& Decision Making

2.6 Price Perception

2.7 Hypotheses Generation

2.7.1 Food Quality

2.7.2 Service Quality

2.7.3 Physical Environment

2.7.4 Relationship between Price Perceived and

Switching Brand

3.0 Conceptual Framework

4.0 Methodology

4.1 Pilot Test & Focus Group

4.2 Questionnaire

4.3 Data Collection

5.0 Analysis of the findings

5.1 Respondents

5.2 Reliability Testing

5.3 Hypotheses Testing

6.0 Limitation & Future Research

7.0 Conclusion

8.0 References

9.0 Appendices

1

2

3

4

5

7

8

9

10

11

13

14

15

16

17

20

25

25

26

30

1

Sippsss……THE IMPACT OF THE THREE

DIMENSIONS OF QUALITIES ON YOUNG

CONSUMER’S SATISFACTION

Lee Choong Enn (John)

Sim Poh Leng

Amanda Lee Wei Lyn

Luo Yan (Kevin)

Abstract

The purpose of this study is to examine the relationship of food and beverage quality,

service quality and physical environment quality of coffee house towards satisfaction

of young consumers. Empirical data were gathered from 200 young diners at several

properties of chain coffee house (Starbucks, The coffee bean and tea leaf) via survey

questionnaires to access overall fit of the proposed model and test hypotheses. Despite

the importance of foodservice quality, academics and managers know relatively little

about how the combined effects of quality (food, service, and physical environment)

as well as price perception elicit customer satisfaction which, in turn, affects

behavioral intention. As a result, the uniqueness of this study is in its focus on the

significantly of physical environment related with the customer satisfaction. The

findings may provide restaurateurs with a guideline for enhancing customer

satisfaction and behavioral intention level towards young adults

2

Acknowledgements

On the completion of our research, we would like to express our deepest gratitude to

all, whose kindness and advice have made in this work possible.

First and foremost, our group would like to show our deepest thanks to our lecturer,

Dr. Catheryn, a respectable, responsible and resourceful scholar who has provided us

with valuable step by step guidance in every stage of the writing of this thesis.

Without her instruction, kindness and patience, we could not have completed our

research in time and that successfully. Her keen and vigorous academic observation

enlightens us not only in this research but also in our future study.

Besides, we would like to thanks Mr.Erdo for all his kindness and constructive

suggestions, and also for sending his article journal for us to have better

understanding in the questionnaire. Also, we would also like to thank all our lecturers

who have helped us to develop the fundamental and essential academic competence.

Our sincere appreciation also goes to the respondents of Sunway Pyramid and Subang,

who participated in this study.

Last but not least, we would like to thank all our course mates and classmates who

also participate in our questionnaire and teaching us how to use SPSS software. We

appreciate those who have offered a quiet situation to compose this research and for

their encouragement and support.

3

1.0 Introduction

In this few years, coffee house for examples, Starbucks, The Coffee Bean and Tea

Leaf, San Francisco Coffee (Amy & Ada 2008) is continuously popping out in

Malaysia and it attracts most of the young consumer (age between 18 to 25) in

patronizing, as it becomes highly competitive in restaurant industry, due to this, coffee

house is seeking for higher value of quality for example, food, service, marketing

oriented, physical environment to satisfy customer and compete with other

competitors. „Customer satisfaction is fundamental to the marketing concept as the

notion of satisfying the needs and desires of consumers‟ (Lee et al 2009). Influence of

the food quality (Namkung & Jang 2007, Ryu& Han 2009), environment (Ryu& Jang

2007, Ryu& Han 2009), and service quality have tremendous effect in satisfactions,

emotion and behavioral of customer, and they are more likely to make decision to

patronage a restaurant based on many different attributes (such as, location, food

quality, service, previous experience and brand name) (Sulek& Rhonda 2004, M.

Heide& K.Gronhaog 2006, Lee et al., 2009).

It has been found that, customers more likely to use price in evaluating their expenses

in a product, service and in shaping their attitudes towards a provider (Bolton&

Lemon, 1999; Varki& Colgate, 2001).It is possible for consumer to display the

intention to purchase or repurchase if they perceive that the price of a service or

product is reasonable. In the same point, Anderson, Fornell& Lehmann (1994) think

that price is an important factor of consumer satisfaction, because whenever

consumers evaluate the value of an acquired service, they always think of the price.

Customers who are brand loyal are known to be less price sensitive (Jensen&

Drozdenko 2008; Murthy& Raji 1991). However, for young consumers, they have a

limited spending power (Ozgen& Boyoglu, 2005), but they tend to consume premium

coffee in a specialty coffee house.

Nonetheless, no study has explored why youngster would like to spend money on

meal and coffee in coffee house even they only have a limited spending power and it

is remain unexplored within the background of coffee house industry. Moreover,

young consumer‟s behavior toward the coffee industry and the reason of

re-patronizing the coffee house, for examples, Starbucks, The Coffee Beans & Tea

Leaf or San Francisco Coffee. To fill this research gap, the current study focus on the

reasons of young consumers spends money on meals and coffees in coffee house and

their needs and wants. More specifically, the objective of current study will (a) to

explore the combined influence of the perceived quality of food, service and physical

environment on young consumer‟s satisfaction towards coffee house, (b) to provide

the industry information on needs of young consumers as customer.

This report is structured as follows Chapter 2 will begin with a literature review,

Chapter 3 will discuss about the methodology with pilot test, questionnaire and data

collection. Chapter 4 will show the analysis of the findings, and Chapter 5 and 6 will

be the limitation and conclusion for this research.

4

2.0 Literature Review

Quality is viewed as attribute performance of product and service (Namkung & Jang

2007). In the fast growing of quick casual dining sector, for examples, Starbuck, The

Coffee Bean & Tea Leaf, McDonald, the customer are seeking for a high value of

quality of food and beverage, physical environment and quality of service which will

directly affects postpurchase phenomena, for instances, attitude change, repeat

purchase and brand loyalty. (Namkung& Jang 2007, Ryu& Han 2009) In the

following sections, it will review the critical points in this research area, for examples,

food quality, physical environment, service quality, consumer behavior, buying power

as well as price perception.

2.1 Food Quality

Food Quality is an essential element of the overall restaurant experience. According to

Namkung& Jang (2007), food quality had many attribute which are presentation,

variety, healthy option, taste, freshness and temperature. By using the Structural

Model and Hypotheses Testing, they found that importance of food quality in

restaurant has a related impact on customer satisfaction and behavioral intention.

However, the healthy options of food were not a significant impact on satisfaction but

behavioral intentions.

Besides the attributes of food quality for examples, presentation, variety, freshness,

physical environment is also playing a main role in attracting customer in dining in

the restaurants.

2.2 Physical Environment

„If the only thing to purchase at a restaurant were food, it would be called a grocery

store‟ (Peck 2008). Food quality is a must in restaurant, but physical environment also

have a tremendous effect on customer satisfaction which reflects the quality, for

examples, attractive décor/design, music, lighting, color. Investing in the operation of

physical environment (for examples, interior design/ décor, comfortable seat, high

quality of furniture, pleasant music/ lighting/color and appearance of employee) will

directly increase sales and purchase intention dramatically (Ryu & Jang 2007, Ryu &

Han 2009).

Furthermore, environment will affect the emotion of customer, for examples, the

background music (e.g. Jazz, Classic) will help them feel pleased and relaxed.

Disarrangement of seats may annoy the customer, seat that are too close to each other

can cause customer to feel crowded., customer are more likely to stay in a restaurant

which provide in a comfortable seat (Joanne & Rhonda 2004).

According to M. Heide& K.Gronhaug (2006), there are three essential factor; (1)

ambient factors, (2) social factors, (3) design factors. Ambient factors are background

conditions in the environment, such as temperature, scent, noise, music and lighting.

Social Factor represents the „people‟ component which might affect customer‟s

5

perception of atmosphere. Design Factor consists of the architecture, style and layout.

Nowadays, customers are more focusing in finding a „third place‟ between work and

home, where providing a warm, comfort, clean and inviting environment for customer

to escape the chaos of their daily life. The fast growing of coffee house in Malaysia

has using the physical environment marketing strategy as a guideline in boost the

repeat patronage of customer, for example, some people dine in to Starbuck for the

bonhomie, others for the soothing music, as well as wi-fi access.

As a conclusion, to provide a comfortable and relax place, customer will more likely

to return to the coffee house. Except food quality and physical environment is the

tangible product, intangible product for example, service quality will also be

evaluated by customers.

2.3 Service Quality

Besides of tangible product, service as an intangible product is playing a main role in

restaurant. Unlike tangible product, service is difficult to evaluate prior to purchase

and consumption. The research of Sachin, et al., (2007) showed that service quality

related to employee greeting, friendliness, appearance have the higher satisfaction

than food quality. Customers are more likely to return to the restaurant because of

service of the staff. A cheerful greeting will give a relax environment for the customer.

Not only will the lighthearted restaurant atmosphere affect the customer in emotion, it

will also improve staff energy and performance dramatically. Peck (2008) believes

that happy people are more productive. Thus, in performing a good quality service

will be easier in the restaurant.

With all the satisfaction from food quality, physical environment and service quality,

customers tend to return to the business again, and it also creates a loyalty towards the

coffee house.

2.4 Consumer Behavior & Loyalty

In the marketing world, customer loyalty is an important factor in ensuring repeat

business from customers. While the behavioral dimensions consider consistent repeat

patronage or repeat purchase frequency, the attitudinal dimension considers

psychological commitment toward the store or brand (Bolton & lemon, 1999;Vakri &

Coglate, 2001). Based on the studies conducted on the research, there are a number of

factors that influence customers‟ loyalty as well as consumers‟ behavior.

According to (Babin & Darde, 1996; Dawson at al., 1990; Desai & Mahajan, 1998;

Oliver, 1993), emotions have been considered an antecedent to customer satisfaction.

Besides, Biel (1993) also stated that brand personality evokes emotions in consumers,

which in turn leads to behaviors. Young consumers tend to seek for a brand

personality to represent their self-image. Aaker(1997), on the other hand, developed a

brand personality scale (BPS) to explore the 37 meanings of commercial brand by

6

examining how brand personality attributes are structured in the minds of individuals

in US. A total of 42 BPS personalities were identified on five dimensions which are

sincerity, excitement, competence, ruggedness, and sophistication. For instance,

Starbucks was rated high on both sincerity and competence.

From the mid-twentieth century, the concept of value is mainly focused on how to

manufacture products with high quality (Croshy, 1979; Feigenbaum, 1951; Juran et al,

1974). Also, how to meet customers‟ expectation and to measure customers‟

satisfaction turns to be the focus of value creation (Gorst et al., 1998; Kristensen et al.,

1992; Parasuraman et al., 1988). Successful businesses create repeat and loyal

customers by providing unforgettable experiences. However, Pine and Gilmore (1999,

2000) argued that to meet customers‟ needs and expectations is not enough to create

value in the next generation. According to Pine and Gilmore‟s framework, value

added usually comes from product, service and experience. The former adds less and

the latter adds more. Experience can offer higher value because it is personal and

memorable.

There are 3 elements which will influences experience, which are environment,

atmosphere and layout. On the other point of view, those youngsters‟ unprecedented

spending power shows that they are handling more cash than any generation before

them. However, if the customer is not sure of the purchase of a brand, the probability

of peer influence impacting the decision whether to continue the brand or to change it

would increase (Eeltham, 1998). The greater the peers influence on the brand choice,

the lower the depth of brand relationship.

It shows that lower income and lower frequent customers value the product quality

more than service and experience; while higher income and higher frequent customers

value the contextual experience and service more. (Yu, et al., 2009). However, in the

study, it did not state what kinds of experiences is it, which can contribute to the value

perceptions. Pine & Gilmore then provided a classification to explain the evolution of

economic offerings. On this stage, customers pay more attention to experience rather

than product; while companies are selling more into experience and memories. For

instance, “one pound of coffee beans is worth only one dollar at a plantation, but a

cup of coffee costs more at Starbucks”. (Pine& Gilmore, 1998). Yet, the importance of

different needs can change over time. When incomes are low, there are possibilities

customers will demand more than product quality. (Wakefield & Bladggett, 1999)

further added that one main reason customers pursue hedonic consumption is to have

special emotional experience such as pleasure & excitement. Besides, Rusell and Pratt

(1980) indicated that degree of pleasure and arousal in a hedonic service may

determine their satisfaction and subsequent behaviors. However, (Hall, Babubaka &

Oppenheim, 2001) have found that women (age 18-30) has considerable spending

power. They seek for healthier eating alternative and product that are low in fat,

carbohydrate and calories due to media influence.

7

Experiential marketing is further separated into five concepts: sense, feel, think, act

and relate marketing (Schmitt, 1999). The main point of experiential marketing is

extracting the essence of products and then applying it to intangible and physical

experience that can increase the value of product or service and help customers in

making their purchasing decisions (Williams, 2006). Blattberg (1998) pointed out that

customers are the most critical asset for long term business, so businesses should

focus on maintaining their relationship with customers. To maintain, creating special

and innovative customer value is necessary. (Kotler& Armstrong, 2000). However,

these data were only collected from four Starbucks in Taipei, Taiwan.

On the other hand, Heathnew (July 21st, 2010), from Health News organization argued

that location must be convenient for people to be able to purchase it quickly,

especially on the way to or from work. Besides, he added that customers are willing to

pay extra for great tasting cup of coffee. Also, let the customers feel that they are

important and appreciated. It is said that friendly staff hold back loyal customers.

Therefore, we should show we are listening to customers‟ needs by offering value

right off the bat. (Ann Marsh, 2009). Also, Klye Magi (May 19th

, 2010) supported it

by saying “Coffee should be an experience and a place to enjoy time with friends and

family.”

Many researchers have provided empirical evidence of a positive relationship between

customer satisfaction and loyalty (Cronin & Taylors, 1992; Fornell et al, 1996). (John

Peter, editor of TQM magazine, 1997) found a support from (William Shakespeare,

Othello 3:3) that a brand is built not just only for girls and boys, but it is an asset

which defines who and what we are in the markets where technological differentiation

can be aped and exceeded in a few days or weeks, which means when a brand is

steady, the state could go for three or five years without winning anything and would

still sustain the business. (Jensen & Drozdenko, 2008; Krishnamurthy & Raj, 1991;

East et al, 1995) says that those who are brand loyal are known to be less price

sensitive. (Fournier, 1998) then also added that consumer brands are to describe their

self-concept as well communicate their identity.

In short, consumers‟ personality towards a brand can be seen through their behavior,

whether they are brand loyalty due to self-image, experience, and etc. However, if the

consumer does not have a stable brand loyalty, the possibility of peers influence will

direct them to switch brand is high although they have the buying power.

2.5 Buying Power and Decision-Making

The restaurant industry is different between the others industries, whether or vested

interests from the perspective of long-term strategy to study people's purchasing

power for consumption are an essential link. And with economic growth, more and

more people increase their spending power and the capacity of purchase, so they tend

to dine in to a coffee house to enjoy their lunch or tea-time, especially business

worker and youngster.

8

Rapid growth of retail sales of catering industry as an important factor driving growth

in consumption is a major highlight of the consumer goods market. With the

improvement of people's living standards, accelerated pace of life and lifestyle

innovation, catering revenue climbing higher and higher, sustained growth (B.Holt

1995). The developments of food industry directly increase the development of

economic and social. Moreover, it also improves consumer‟s capacity in purchasing a

product. (Park 1982)

The coffee house became a meeting place for young people. The economic and social

recovery from the war meant that young people were gradually getting a higher level

of disposable income. They wanted their own place away from their parents for

socializing. They could afford to congregate at coffee shops. (Lye et al., 2006)

Moreover, some studies have shown that adolescents' preference for products and

brands are influence by those of their peers. (Saunders et al., 1973; Ryan 1966; Vener

1957). From the study of Gitomer (2009) , he found the a few of the reasons in people

visiting to Starbucks: Atmosphere, Warmth, People friendly, The ability to customize

your order, Speed of delivery, Consistent quality of product, It‟s easy to buy and pay,

Technology friendly, Business friendly, Social friendly, Clean restrooms, The little

green stick, Beyond a cup of coffee

The customers‟ coffee knowledge has grown and they are aware of a good cup of

coffee and a poor one and the benefit of the coffee to the health. „Some 80 percent of

coffee drinkers say they have not changed their coffee-drinking habits, other than

brewing more at home or looking for deals on the beans. A bright spot is young adults

aged between 18 to 24; they drank an average of 3.2 cups a day, up from 2.5 cups per

day in 2005‟ (Coffee Watch 2008). Successful coffee houses thrive on diversity in all

aspects, whether it‟s in food, the entertainment or the drink (Sheffield 1990).

2.6 Price Perception

In coffee industry, the consumer is always paying for the added value that the operator

is putting in, in term of theatre, confidence, style. This is how the operator charges the

price. There are two points for charging the highest possible price: (a). Ambience (b).

Overall experience. “Taste isn‟t critical in achieving a good price” (Mckenzie, 2008).

Price is an important factor on customer satisfaction. Price decision has an impact on

consumer‟s satisfaction in service industries (Voss et al., 1998). People are satisfied

when they perceive that the price of the service or product is reasonable. (Anderson,

et al., 1994) also emphasized price as an important factor of consumer satisfaction

because whenever consumer evaluate the value of an acquired service, they usually

think of the price (Anderson and Sullivan, 1993; Athanassopoulos 2000; Cromin, et al.

2000; Fornell 1992; Zeithaml). However, youngster starts under more economic

pressure as they are now on their own and have to purchase product, like house, car,

household staples, insurance, etc. It is interesting to note that they claimed to use a

9

“best-buy” strategy in connection with all product categories (Gronhoj, 2007). But

nowadays, customers are more seeking benefit from the product and service they

purchase, especially youngster. For example, youngster are high users of the internet,

they have greater access to market information and knowledge. They are clearly

known that what kind of benefits they are seeking, such as product quality, service

quality and atmosphere quality. Customers tend to use price as a cue in evaluating

their experiences with a product or service and in shaping their attitude toward a

provider (Bolton and Lemon, 1999; Varki and Colgate, 2001).

According to the news of Nation‟s Restaurant News, 2008 in United States, Starbucks

Coffee customer would be more likely to renew their patronage if the chain lowered

its prices due to the economy pressure. From the survey (Morgan Stanley & Co., 2008)

of 2500 coffee drinkers found that nearly one third of existing Starbucks customers

have cut back on their number of visits in the past three months. However, there still

have 48% of Starbucks customer said that they had no interest in switching other

cheaper brand and they are tend to be loyal, despite economic pressure. As you can

see that perceived price fairness has positive effects (through customer satisfaction)

on consumer loyalty.

Price is another important criterion in the consumers‟ decision making process for

switching brands. In general, young consumers have a low budget (Ozgen and

Boyoglu, 2005) and are more likely to switch brands under influence of price change.

The magnitude of price change is known to influence consumers‟ action (Tellis, 1988).

As the young consumers do not have strong financial backup, they tend to switch over

to be less priced brand. Demographics do have an important role play as far as price

sensitive is concerned – age, income, occupation and education how much a consumer

would switch due to price change. Therefore, they are more likely to switch brands if

price of their brands increase or decreases at similar price level.

As conclusion, price is one of the important components which have an impact on

customer satisfaction. The magnitude of price change also will influence consumer‟s

action. The findings in literature review has shown the relationship and how the food

quality, service quality, physical environment quality, price perception effect on

customer satisfaction, led to customer loyalty. The literature review is going to

provide information for this study and support our research. Next, the hypothesis will

show the relationship between food quality, service quality, physical environment

quality, price perception and customer satisfaction.

2.7 Hypotheses Generation

Based on the literature reviewed, this section now explains how the hypotheses for

this study are generated. It is therefore essential to reiterate here some of the studies

discussed in the previous sections.

10

2.7.1 Food Quality

Quality of food, service from staff, menu variety, atmosphere, cleanliness, styling,

price, interior design and décor, professional appearance of staff and store location are

important component in food and beverage industry. (Baker et al., 1994, pg3) These

components will directly influence post purchase phenomena, for example customer

satisfaction, repeat purchase, and brand loyalty. (Namkung & Jang, 2007, Ryu & Han,

2009) MacLaurin (2000) found that nine factors of theme restaurant in Singapore and

included food quality as one of the important elements. Some study findings

suggested that food quality was the most influential predicator of consumer loyalty,

for example Clark and Wood (1998), they developed dimension relevant to creating

customer loyalty in restaurant choice. There are top three reasons for customer to

repeat patronize their target restaurant in casual dining sector which are food quality,

atmosphere and service. (Mattila, 2001) Therefore, food quality as viewed one of the

important attribute in food and beverage industry and is expected to have positive

relationship on customer satisfaction and loyalty.

Hypothesis 1: Food and beverage quality of coffee house has a positive effect on

customer satisfaction.

2.7.2 Service Quality

In the quick-casual segment of restaurant industry, the attractiveness of restaurant

facilities, exceptional food and acceptable level of service quality can affect customer

satisfaction. Service quality and consumer satisfaction are inarguably the two core

concepts in marketing theory and practice (Spreng & Mackoy, 1996). Service quality

included the performance of service staff, customer perception and their expectation

of service. Garvin (1984) believed that service quality derives not from customers‟

objective evaluation but from subjective recognition of service. It is also considered

an attitude about an overall evaluation of service. For instance, when the perceived

service is beyond a customer‟s expectations, the customer is satisfied; when the

service is below expectations, the customer is dissatisfied.

Hypothesis 2: Service quality of coffee house has a positive effect on customer

satisfaction.

2.7.3 Physical Environment

The importance of physical environment to create an image and to influence customer

behavior is particularly pertinent in the restaurant industry (Hui et al., 1997; Milliman,

1986; Raajpoot, 2002; Robson, 1999; Ryu & Jang, 2007, pg4). There are several

studies have shown how the physical environment influences customer satisfaction

and predicts post purchase behaviors. (Hui et al., 1997; Knutson & Patton, 1995;

Mattila & Wirtz, 2001; Wakefield & Blodgett, 1994) For instance, Knutson and Patton

(1995) found that the importance of physical surroundings, such as décor and artifacts,

in influencing customer satisfaction and post purchase behavior. The music played in

coffee houses are always relaxing and at the appropriate volume. It becomes a

11

favorable feature to the product or service. Hui et al., (1997) stated that creating

favorable ambience such as playing music in the environment is like adding a

favorable feature to a product, and the outcome is a more positive evaluation of the

environment. On the other hands, when the ambient scent and music are congruent in

quality, it led to high evaluations of the environment, high satisfaction level, and

favorable behavioral responses. Although the food and the service should be of

acceptable quality, pleasing physical surroundings, for example lighting, décor, layout,

and employee appearance, it may determine to a large extent the degree of overall

satisfaction in the restaurant industry. Because services are mainly intangible and

often require the customer to be present during the process, the physical environment

can have an impact on perceptions of the overall quality of the service, which in turn

affects customer satisfaction in the restaurant industry (Bitner, 1990, 1992, Brady &

Cronin, 2001; Kotler, 1973; Parasuraman et al., 1988; Ryu & Jang, 2007).

Hypothesis 3: Physical environment of coffee house has a positive effect on customer

satisfaction.

2.7.4 Relationship between Price Perceived and Switching Brand

Price has been considered a significant component in explaining customer behavior in

marketing (Bolton & Lemon, 1999; Ranaweera & Neely, 2003; Vakri & Colgate,

2001). Price perceptions were evaluated as fair or fairness. Some findings indicated

that customer perceptions of price fairness or unfairness significantly affected their

overall satisfaction and behavioral intentions (Bolton & Lemon, 1999). Customer

feelings about the reasonableness of price may capture evaluated price perception

(Martins & Monroe, 1994). For instance, customer is always willing to pay when they

get the food and service in quality. According to Sirohi, et al., (1998), this affects

customer loyalty. Furthermore, price perception may be a way to enhance a firm‟s

profit level as well as customer‟s level of satisfaction, and increasing the perception

that price is reasonable is also highly associated with both customer retention and firm

success (Ranaweera & Neely, 2003, pg. 495).

The magnitude of price change is known to influence consumers‟ actions (Tellis,

1988). As young consumers do not have a strong financial backup, they will more

tend to switch over to the less priced brand. It shown the magnitude of price change

will influence the brand relationship and switching intention.

Hypothesis 4a: Price has a positive effect on customer satisfaction.

Hypothesis 4b: Price change has a positive effect on switching brand.

Several research have stated that the relationship between customer satisfaction and

behavior intention in business and hospitality field. While the behavioral dimension

considers consistent repeat patronage or repeat purchase frequency, it will led to

customer loyalty (Julander et al., 1997; Kandampully & Suhartanto, 2000). Getty and

Thompson (1994, pg. 4) examined the roles of service quality and satisfaction in

explaining behavioral intention. Their findings indicated that high level of satisfaction

12

increases customers‟ intentions to repurchase and recommend the product.

Furthermore, satisfaction is a critical determinant of positive behavioral intention in

various service sectors, for example fast food, banking, and dry cleaning (Cronin &

Taylor‟s, 1992). Thus, satisfaction is a major component in any customer loyalty

program in the restaurant industry.

Hypothesis 5: Customer satisfaction has a positive effect on customer loyalty and

repeat purchase.

13

3.0 Conceptual Framework

Figure 1 below shows the framework from literature review, which outline the

possible linkage from food quality, service quality, physical environment and price

link to customer satisfaction and behavioral.

H1 (Hypothesis 1): Food and beverage quality of coffee house has a positive effect on

customer satisfaction.

H2 (Hypothesis 2): Service quality of coffee house has a positive effect on customer

satisfaction.

H3 (Hypothesis 3): Physical environment of coffee house has a positive effect on

customer satisfaction.

H4a (Hypothesis 4a): Price has a positive effect on customer satisfaction.

H4b (Hypothesis 4b): Price change has a positive effect on switching brand.

H5 (Hypothesis 5): Customer satisfaction has a positive effect on customer loyalty

and repeat purchase.

Service

Quality

Food Quality

Physical

Environment

Quality

Behavioral

Intention

Price

Perception

Customer

Satisfaction

H1

H2

H3

H4a H4b

H5

Figure 1

14

4.0 Methodology

Dining in coffeehouses has become an increasingly important sector of the food

service industry in Asia and the trend is expected to continue (Amy & Ada 2008).

Youngsters nowadays tend to purchase or repurchase if they perceive that the price of

a service or product is reasonable. Despite its popularity, there are no in-depth studies

conducted on the reason why young consumers are willing to spend in coffeehouses.

Therefore, we are to explore the reasons for it.

In order to measure the quality of food, service, physical environment, price, and

customer satisfaction, a structured questionnaire was prepared based on a pilot test,

focus group and also on the literature reviews of the previous studies. (Bitner, 1992;

Brady & Cronin, 2001; Garbarino & Johnson, 1999; Kandampully & Suhartanto,

2000; H. Lee et al., 2000; Maxham & Netemeyer, 2002; Nguyen & Leblanc, 2002;

Oh, 2000; Parasuraman et al., 1988; Powpaka, 1996; Prendergast & Man, 2002;

Taylor & Baker, 1994; Zeithaml, et al., 1996). All the answers were measured on a

5-point Likert-type scale ranging from „strongly disagree‟ to „strongly agree‟.

4.1 Pilot test & Focus group

Two pilot tests were conducted on undergraduates who often dine in coffeehouses and

it was found that the respondent‟s answers were more or less similar to that of the

previous studies. After that, two focus groups were conducted on the spot with actual

customers who were dining in coffeehouse at that time. The answers we got from

pilot tests and focus groups were roughly the same also as those from past literature

reviews. Thereafter, we added a few more respondents‟ answers which were not

found in the past literature reviews into the questionnaire.

4.2 The Questionnaire

There are two types of questionnaires, which are structured questionnaire and

open-ended (unstructured) questionnaire. Structured questionnaire is that which the

questions asked are precisely decided in advance. Furthermore, it is needed to

understand the consumers‟ thinking by first building a list of standard questions to ask

people (focus group). Open-ended questionnaire means the possible answers are not

suggested, the respondents need to answer it in their own words. Such questions usually

begin with a how, what, when, where, and why question and it is more towards

qualitative method.

In our research, we are using structured questionnaire due to time constraints and it‟s

easier to conduct. Besides, it is also an inexpensive way to gather data from a

potentially large number of respondents as the questionnaire is administered and we

need not have professional interviewers. Also, quantitative questionnaire is an easy

and quick method and it can be formed in many ways such as factual to opinion based,

“check-the-boxes” and etc.

15

The questionnaires were designed for this purpose, based on the food quality, physical

environment, service quality and price, depending on the outcome of the pilot tests

and focus groups‟ answers. This allows the research to discover the roots of the

reason as to why youngsters like to and are also willing to spend in coffeehouses.

4.3 Data collection

Finally, the survey forms were distributed to young consumers who dine in

coffeehouses, for example, Starbucks and The Coffee Bean at Sunway and Subang

area, and also to undergraduates around that area, and those in the estimated age

group of 18 – 25 years. Each participant spent about 5 to 7 minutes to complete the

survey form. A total of 218 questionnaires were collected, however, 18 were unusable

and uncompleted. Among the survey participants, 41.5% were male, 58.5% were

female, and 68% of them are undergraduates.

The findings arising from this study are reported in the following chapter, and the

tables of the findings are generated using SPSS software.

16

5.0 Analysis of the findings

In this chapter, the findings will be showed in table form, 4.1 will show the profile of

the respondents, 4.2 will report the reliability of each section, for example, food

quality, service quality and others. 4.3 will present the hypotheses tests result for each

hypothesis.

5.1 Respondents

Table 1 reports the profile of the respondents in current study. Most of the

respondents are female (n=117, 58.5%). Most of the participants is undergraduate

(68%), and there are more willing to spend below RM 50 in a coffee house (92.5%).

Table 1

Description of the Respondents (N= 200)

Characteristic n %

Gender

Male

Female

Age

18 to 20 years

21 to 23 years

24 to 26 years

Marital Status

Single

Married

Occupation

Student

Manager

Executive

Education Level

High School

Undergraduate

Post Graduate

Income

Below RM 1000

RM 1001 to RM 3000

Above RM 3000

Spending Power in F&B

Below RM 50

RM 51 to RM 69

RM 70 to RM 89

RM 90 to RM 109

Above RM 110

83

117

41

133

26

193

7

186

4

10

16

136

48

121

67

12

185

14

1

0

0

41.5

58.5

20.5

66.5

13.0

96.5

3.5

93.0

2.0

5.0

8.0

68.0

24.0

60.5

33.5

6.0

92.5

7.0

0.5

0

0

17

5.2 Reliability Testing

The reliability of the research in this study is reported in Table 2

Table 2: Reliability Scale

Reliability Scale: Food & Beverage Quality

Reliability Statistics

Cronbach's

Alpha N of Items

.529 6

Item-Total Statistics

Scale Mean if

Item Deleted

Scale

Variance if

Item Deleted

Corrected

Item-Total

Correlation

Cronbach's

Alpha if Item

Deleted

Presentation 11.47 6.411 .449 .422

Menu Variety 11.13 6.063 .373 .436

Temperature of

beverages

11.45 6.611 .274 .485

Tasty 11.27 5.653 .504 .369

Freshness 11.19 6.342 .295 .474

Price- Expensive 11.56 7.354 -.037 .671

Reliability Scale: Service Quality

Reliability Statistics

Cronbach's

Alpha N of Items

.825 9

Item-Total Statistics

Scale Mean if

Item Deleted

Scale

Variance if

Item Deleted

Corrected

Item-Total

Correlation

Cronbach's

Alpha if Item

Deleted

Friendly and Courtesy 18.87 17.450 .596 .800

Patient 18.77 17.655 .565 .804

Cheerful 18.71 17.636 .538 .806

Willingness to help 18.82 17.418 .553 .805

Make Recommendation 18.70 17.540 .482 .814

18

Knowledgeable 18.78 17.831 .482 .813

Apperance 18.96 18.059 .529 .808

Professional and

Enthusiastic

18.76 17.852 .525 .808

Prompt service 18.85 17.890 .494 .812

Reliability Scale: Physical Environment Quality

Reliability Statistics

Cronbach's

Alpha N of Items

.776 8

Item-Total Statistics

Scale Mean if

Item Deleted

Scale

Variance if

Item Deleted

Corrected

Item-Total

Correlation

Cronbach's

Alpha if Item

Deleted

Lighting 15.75 13.736 .473 .752

Decoration 15.81 13.572 .502 .748

Music Relaxing 15.51 12.864 .501 .747

Music Volume 15.63 13.338 .454 .755

Cleanliness of

environment

15.64 13.205 .496 .748

Seat Space 15.41 13.439 .457 .755

Temperature of

environment

15.51 13.206 .479 .751

Furnishing 15.53 13.507 .457 .755

Reliability Scale: Customer Satisfaction

Reliability Statistics

Cronbach's

Alpha N of Items

.733 4

Item-Total Statistics

Scale Mean if

Item Deleted

Scale

Variance if

Item Deleted

Corrected

Item-Total

Correlation

Cronbach's

Alpha if Item

Deleted

19

Satisfaction in Dining

Experience

6.99 2.593 .614 .618

Satisfaction in Service 6.84 2.772 .538 .665

Satisfaction in F&B 7.04 2.923 .487 .694

Satisfaction in

Environment

7.17 2.956 .460 .709

Reliability Scale: Price & Value

Reliability Statistics

Cronbach's

Alpha N of Items

.476 5

Item-Total Statistics

Scale Mean if

Item Deleted

Scale

Variance if

Item Deleted

Corrected

Item-Total

Correlation

Cronbach's

Alpha if Item

Deleted

Value for F&B 10.41 3.589 .595 .184

Value for Service 10.40 3.618 .561 .204

Value for Atmosphere 10.56 4.389 .372 .357

Willigness to spend if

price increased

10.07 3.900 .290 .396

Switch brand if price

increased

10.64 6.343 -.254 .740

Reliability Scale: Behavioural intention

Reliability Statistics

Cronbach's

Alpha N of Items

.711 4

Item-Total Statistics

Scale Mean if

Item Deleted

Scale

Variance if

Item Deleted

Corrected

Item-Total

Correlation

Cronbach's

Alpha if Item

Deleted

Expectation fulfilled 7.02 3.020 .398 .704

Revisit coffee house 7.24 2.829 .484 .656

Recommend to others 7.16 2.487 .669 .542

20

Item-Total Statistics

Scale Mean if

Item Deleted

Scale

Variance if

Item Deleted

Corrected

Item-Total

Correlation

Cronbach's

Alpha if Item

Deleted

Expectation fulfilled 7.02 3.020 .398 .704

Revisit coffee house 7.24 2.829 .484 .656

Recommend to others 7.16 2.487 .669 .542

Say positive about

coffee house

7.27 2.612 .459 .677

Cronbach‟s alpha was used to assess the reliability of the results. All Cronbach‟s

alpha value which exceeded the suggested cut off of .70 are considered acceptable, as

showed in the table, service quality (.82) , physical environment quality (.77),

customer satisfaction (.73) and behavioural intention (.71) showed that the reliability

of the measured used in the research appears adequately.

5.3 Hypothesis Testing

In order to identify the relationship of the food and beverage quality, service quality,

physical environment quality of coffee house with the customer satisfaction for young

consumers, a multiple regression analysis was conducted.

Table 3

Coefficientsa of Satisfaction in Food & Beverage Quality

Model

Unstandardized

Coefficients

Standardized

Coefficients

B Std. Error Beta t Sig.

1 (Constant) 1.263 .208 6.078 .000

Presentation .251 .078 .243 3.228 .001

Menu Variety .029 .060 .036 .489 .625

Freshness .056 .059 .070 .947 .345

Tasty .134 .068 .163 1.986 .048

Temperature of

beverages

-.009 .060 -.010 -.151 .880

a. Dependent Variable: Satisfaction in F&B

b. R2= .153, Adjusted R

2= .131

c. This result (Table 3) reflects that food quality will affect the customer satisfaction. The R2

value

of .15 in the model indicates that 15% of the variance in customer satisfaction was explained by

food quality of coffee house, so, Hypothesis 1 was valid.

21

Table 4

Coefficientsa of Satisfaction in Service Quality

Model

Unstandardized

Coefficients

Standardized

Coefficients

B Std. Error Beta t Sig.

1 (Constant) 1.233 .221 5.580 .000

Friendly and Courtesy .088 .085 .095 1.035 .302

Patient .125 .088 .134 1.414 .159

Cheerful .010 .079 .012 .132 .895

Willingness to help .048 .072 .055 .667 .506

Make Recommendation -.004 .069 -.006 -.065 .948

Knowledgeable .052 .072 .061 .730 .466

Apperance .177 .080 .181 2.217 .028

Professional and

Enthusiastic

.064 .076 .070 .853 .395

Prompt service -.005 .068 -.006 -.077 .939

a. Dependent Variable: Satisfaction in Service

b. R2= .178, Adjusted R

2= .139

Table 4 indicates the R2 value of .18 which is 18% of the variance in customer

satisfaction with service quality of the coffee house. Thus, Hypothesis 2 was

supported.

Table 5

Coefficientsa of Satisfaction in Physical Environment

Model

Unstandardized

Coefficients

Standardized

Coefficients

B Std. Error Beta t Sig.

1 (Constant) .634 .196 3.235 .001

Lighting .141 .075 .148 1.884 .061

Decoration .160 .075 .169 2.133 .034

Music Relaxing .094 .060 .119 1.563 .120

Music Volume .138 .060 .166 2.284 .023

Cleanliness of

environment

-.020 .064 -.024 -.315 .753

Seat Space .119 .061 .138 1.960 .051

22

Temperature of

environment

-.039 .062 -.046 -.617 .538

Furnishing .108 .064 .124 1.696 .092

Dependent Variable: Satisfaction

in EnvironmentR2= .283, Adjusted R

2= .253

The R2 of the model was approximately 28% which showed the physical environment quality of

coffee house can affect the customer satisfaction. Thus Hypothesis 3 is valid.

Table 6

Coefficientsa of Price and Customer Satisfaction

Model

Unstandardized

Coefficients

Standardized

Coefficients

B Std. Error Beta t Sig.

1 (Constant) 1.242 .204 6.091 .000

Willigness to spend if

price increased

.101 .050 .137 2.041 .043

Revisit coffee house .351 .071 .330 4.918 .000

a. Dependent Variable: Satisfaction in Dining Experience

b. R2= .146, Adjusted R

2= .137

Table 6 showed that customer satisfaction has a positive effect on willingness to spend. The R2

value of .15 in the model indicates that 15% of the variance in customer satisfaction and repeat

purchase. Thus, Hypothesis 4a and 5 were supported.

Table 7

Coefficientsa of Customer Loyalty

Model

Unstandardized

Coefficients

Standardized

Coefficients

B Std. Error Beta t Sig.

1 (Constant) 1.519 .215 7.079 .000

Switch brand if price

increased

.225 .084 .188 2.693 .008

a. Dependent Variable: Price- Expensive

R2= .035, Adjusted R

2= .030

Table 7 presents the relationship with the price ad customer loyalty; The R2 is .04

which showed 0.3% of variance in price increased lead to the intention of switching

brand. Thus, Hypothesis 4b is valid but it is not significantly.

23

Table 8

Summary of Hypothesis Testing

Hypothesis Path t- Value Results

Hypothesis 1 : Food&

Beverage Quality @

Satisfaction

Hypothesis 2: Service

Quality @ Satisfaction

Hypothesis 3: Physical

Environment@ Satisfaction

Hypothesis 4a: Price

Perception @ Satisfaction

Hypothesis 4b: Price

Increased @ Switching

Brand

Hypothesis 5: Customer

Satisfaction @ Repeat

purchase and loyalty

6.078***

5.580***

3.235***

2.041*

4.918***

7.079***

Supported

Supported

Supported

Supported

Supported

Supported

*p< .05,

**p< .01,

***p< .001

In the summary of hypothesis testing (Table 8), all hypotheses are valid, and the

p-value is lower than .05, therefore it showed that there is significant different

between each of the two variable in the hypothesis.

This study makes important contributions towards understanding the relationship of

food and beverage quality, service quality and physical environment quality of coffee

house towards satisfaction of young consumers. Besides that, it also showed that their

behavioural of them, for examples, buying decision and re-patronage the coffee house

(loyalty). When young consumers are satisfied with the beverage, service and

environment of the coffee house, they are more likely to spend the money in dining in

the coffee house.

Furthermore, the physical environments of coffee house take a tremendous effect in

attracting young consumer to dine in. In our research, the physical environment

attributes explained approximately 28% of the variance in customer satisfaction. Not

only the service and beverage quality of the coffee house, but physical environment

affect them the most. Besides that, the physical environment, for examples, lighting,

interior design, music, and wi-fi service are able to give them relax, comfortable place

and also an ideal place for study or places hanging out with friends.

24

On the other sides, in our study, it showed that, young consumers are more likely to

switching brand if the price increased. Due to the limited of spending power, they will

switch brand if the coffee offered in coffee house increase price continuously. Thus,

our research providing the industry that if coffee house intend to focus business in the

range of young consumers, it should be more focusing in their spending power.

As a conclusion, the uniqueness of this study is in its focus on the significantly of

physical environment related with the customer satisfaction. Overall, the findings

suggest that the coffee house should take the price and physical environment of the

coffee house in consideration to generate revenue from the young consumers.

25

6.0 Limitations & Future Research

Although we managed to find some amusing findings, there are also many limitations

in it. Firstly, as we are still a new researcher, we weren‟t aware of the available

measurement on young consumers‟ motive in dining in specialty coffee houses.

Secondly, due to time consuming, the data collection were only focus on distributing

the questionnaire throughout specific area coffee houses (Sunway Pyramid and

Subang) such as Starbucks and The Coffee Bean as our measurement tools to get the

answers on the experience of young consumer dining in coffeehouses. Besides, the

participants might not answer the questions diligently. For instance, the participants

answer the questions just for the sake of filling up the boxes. Therefore, it is

inevitable that the respondent‟s answers in our study turn out to be not generally

distributed.

In future research, a better foundation on our measurement is needed to ensure the

questionnaire is suitable for the topic. Also, other kinds of experiences such as

hedonic, control, participation and familiarity (Chang, 2006; Fitzmaurice, 2005;

Soderlund, 2002) could be pursued to go deeper into understanding the consumer‟s

value perception.

7.0 Conclusion

In the conclusion, this study shows that coffee houses in Malaysia should take price

perception and physical environment in consideration in order to gain revenue from

young consumers. It also shown the physical environment affects them the most, for

example, the appropriate brightness of lighting will affect their studying mood and the

style of interior design will let young people feel comfortable and stay there longer.

However, young consumers will switch the brand due to the limited allowance. Coffee

house should come out some idea which can match their spending power, for example

discount for students or promotion in order to expand young consumer segmentation.

Although our data collection were only focus on several specific area coffee houses,

we should go somewhere which the lifestyle may different with Subang and Sunway

area, such as Bangsar and Kuala Lumpur area. Because there are different types of

young people in Bangsar and Kuala Lumpur area, not just only students, their lifestyle

and pattern may different with Subang and Sunway area as well. As conclusion, this

study provides a lot of important information for us and industry as well.

26

8.0 References

Amy Y.F.Tan, Ada S.Y.Lo. (2008). A Benefit-Based Approach To Market

Segmentation: A Case Study of an American Specialty Coffeehouse Chain in Hong

Kong. Journal of Hospitality & Tourism Research, 32(3), 342-362

Ann, M. (2009). Starbucks give you customers’ free stuff for a price.

http://www.bnet.com/article/starbucks-give-your-customers-free-stuff-for-a-price/322

691, Retrieved Aug 18, 2010

Boughton, Ian. (2008). Inside beverage: Coffee, Caterer & Hotelkeeper, Vol. 198,

42-48

Cunningham.J. (2004). From coffee house to multiplex, Metro Magazine No.143-144.

Campos, Baylin. (2007). Coffee consumption and risk of type 2 diabetes and heart

disease. Nutrition Reviews, 65(4), 173-179.

Coffee Watch. (2008). Menu Trend Beverages, September 2009, Pg 52.

C.WHAN PARK. (1982). Decision Plans and consumer choice Dynamics, Journal Of

Marketing Research, Vol. XIX, 108-115.

Douglas B.Holt. (1995). How consumers consume: A typology of consumption

practices, Journal Of Consumer Research. Vol. 22 June 1995.

Gupta, McLaughlin, Gomez. (2007). Guest satisfaction and restaurant performance.

Cornell Hotel and Restaurant Administration Quarterly, 48(3), 284-298.

Han, Ryu. (2009). The role of the physical environment, price perception, and

customer satisfaction in determine customer loyalty in the restaurant industry, Journal

of Hospitality & Tourism,33(4), 487-510

Han.H, Ryu.K. (2009). The Role of the Physical Environmant, Price Perception, and

Customer Satisfaction in Determine Customer Loyalty in the Restaurant Industry.

Journal of Hospitality & Tourism Research, 33(4), 487-510

Hueiju Yu, Wenchang fang. (2009). Relative Impacts from Product Quality, Service

Quality, and Experience Quality on Customer Perceived Value and Intention to Shop

for the Coffee Shop Market, Total Quality Mgmt & Business Excellence, 20(11),

1273-1285

Healthnew. (2010). How to succeed in the coffee shop business.

http://healthnew.org/2010/07/how-to-succeed-in-the-coffee-shop-business/, Retrieved

Aug 19, 2010

27

Jennings.L. (2008). „Study: Coffee Fans want Starbucks to cut prices; rivals lose

fewer guests‟, Nation‟s Restaurant News, 42(41), pg 45

Jeffrey Gitomer. (2009). Good morning, I need a cup of coffee and good service,

Grand Rapids Business Journal. 13 July, 2009.

Ki-Joon Back, Sara C. Parks. (2003). A Brand Loyalty Model Involving Cognitive,

Affective, and Conative Brand Loyalty and Customer Satisfaction, Journal of

Hospitality & Tourism Research, 27(4), 419-434

Kyle, M. (2010). New coffee house values family experience, Theunion.

http://www.theunion.com/article/20100519/NEWS/100519693, Retrieved Aug 18,

2010

Kaur, Singh. (2006). Children in family purchase decision making in India and The

West: A review, Vol. 2006, No.8, http://www.amsreview.org/article/kaur08-2006pdf

Keith Suter. (n.d.) The rise and fall of English coffee house. Contemporary Review,

Feb, 2005.

Lien-Ti Bei, Yu-Ching Chiao. (2001). An integrated model for the effects of perceived

products, perceived service quality, and perceived price fairness on consumer

satisfaction and loyalty, Journal of Consumer Satisfaction, Dissatisfaction and

Complaining Behavior, Vol. 14

Lye.A, Shao & Fausnaugh.C. (2006). Decision waves: consumer decisions in today‟s

complex world, European Journal of marketing , 39(1/2), 216-230.

Marshall.D. (1999). Understanding children as consumers, Journal Of Consumer

Affairs 13 (winter) 297-310.

Mokhlis.S (2009). An investigation of consumer decision-making styles of

young-adults in Malaysia, Vol. 4, No. 4, http://www.ccsenet.org/journal.html

M. Sulek, L. Hensley. (2004). The relative importance of food, atmosphere, and

fairness of wait. Cornell Hotel and Restaurant Administration Quarterly, 45(3),

235-247.

M. Heide, K. Gronhaug. (2006). Atmosphere: Conceptual Issues and Implication for

Hospitality Management. Scandinavian Journal of Hospitality and Tourism, 6(4),

271-286.

28

Moschis, Moore. (1979). Decision making among the young: A socialization

perspective, Journal of Consumer Research, 6(2), 101-112

Namkung, Jang. (2007). Does food quality really matter in restaurant? Its impact on

customer satisfaction and behavioral intentions. Journal of Hospitality & Tourism

Research, 31(3), 387-410.

O‟Mahony.B, Hall.J. (2007). The influence of perceived Body Image,Vanity and

Personal Values on Food Consumption and Related Behaviour, Journal of Hospitality

& Tourism Research, 14(1), 57-69

O‟Sullivan.F. (1987). Why coffee so popular in Europe, Washington Monthly, July 1,

2003

Peak. C. (2008). A lighthearted restaurant atmosphere gives your guests a

much-needed break from the daily grind. Nation‟s Restaurant News, 24 November

2008, Pg 19.

Peter. J. (1997). Branded, TQM Magazines, 9(5), 320-321

Peter, C & Robin. (2007). The Loyalty Guide Volume Ⅱ: six key factors that

influence customers loyalty.

http://www.thewisemarketer.com/news/read.asp?lc=w29860tx2320zs, Retrieved

Aug19,2010

Phyllis A. Marshall. (2009). Isn‟t that special?, Management Science, 23 September,

12-26.

Ryu.K, SooCheong Shawn Jang. (2007). The Effect of Environmental perceptions on

Behavioral Intentions Through Emotions: The Case of Upscale Restaurant, Journal of

Hospitality & Tourism Research, 31(1), 56-71

Ryu, Han. (2009). Influence of the quality of food, service and physical environment

on customer satisfaction and behavioral intention in quick casual restaurant. Journal

of Hospitality & Tourism, Vol. XX, No. X, xx-xx.

Ryu, Jang. (2007). The effect of environmental perception on behavioral intention

through emotion. Journal of Hospitality & Tourism Research, 31(1), 56-72.

„Studies show coffee may help prevent liver, colon cancers‟ Nation‟s Restaurant

News, 28 February 2005, Pg 14.

Saturno.S. (2008). “Entrepreneurial spirit of Peekskill coffee house brews success”

Hudson Valley Business Journal 14th

July 2008.

29

Sahay.A, Sharma.N. (2010). Brand relationship and switching behavior for highly

used products in young consumers, 35(1), from

http://www.vikalpa.com/pdf/articles/2010/vol-35-1jan-mar-15-30.pdf

Sheffield.C. (1990). Trendy coffee houses going to mainstream, 92 F&B Sales, 1990

R&J 400.

Western Mail Nov 25th

, 2009, „Youngster‟ spending contributed pounds 5bn to

economy‟, p14.

Yi-Hua “Erin”Yuan, Chihkang “kenny”wu.(2008). Relationship Among Experiential

Marketing, Experiential Value, and Customer Satisfaction, Journal of Hospitality &

Tourism Research, 32(3), 387-410

Yi-Hua, Chihkang. (2008). Relationship Among Experiential Marketing, Experiential

Value, and Customer Satisfaction, Journal of Hospitality & Tourism Research, 32(3),

387-410

Yong-Ki, Ki-Joon, Jin-Young. (2009), Family restaurant brand personality and its

impact on customer‟s emotion, satisfaction, and brand loyalty, Journal of Hospitality

& Tourism, 33(3), pg305-328

30

9.0 Appendices

A questionnaire that used for this research will be attached.