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A STUDY ON CONSUMER PREFERENCE ON CAFE COFFEE DAY
The report submitted to the Department of Management studies in partial
fulfilment for the award of the degree of
MASTER OF BUSINESS ADMINISITRATION
SUBMITTED BY
T.G.BRIYANGA
REG. NO: 1511022
Under the g!d"n#e $%
Dr. M. &ee'"n"nth"n
De("rt)ent $% M"n"ge)ent Std!e*
T+IAGARA&AR SC+OO, OF MANAGEMENT-AUTONOMOUS
-A%%!/!"ted t$ M"dr"! ")"r" Un!'er*!t
M"dr"! 3 425 004.
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TAB,E OF CONTENT
TOPIC PAGE NO.
ACNO,EDGEMENT I
C+APTER 1 INTRODUCTION 1
1.1 Background
1.2 Growth Of Cafe Industry In India1.3 Cafe Coffee Day
1.4 Scope of the study
1. O!"ecti#e of the study
C+APTER 2 RE6IE OF ,ITERATURE
2.1 $e#iew of %iterature
C+APTER 7 RESEARC+ MET+ODO,OGY
3.1 $esearch Design
3.2 Data Sources
3.3 Sa&p%ing
3.4 Sa&p%ing 'echni(ue
3. 'oo%s )or *na%ysis
C+APTER 8 ANA,YSIS AND INTERPRETATION
4.1 *na%ysis a&ong $espondents
C+APTER 5 RECOMMENDATION AND ,IMITATION
.1 )indings
.2 +i&itations
C+APTER 4
CONC,USION
APPENDI9
i. Bi!%iography
ii. $eferences
iii. ,uestionnaire
ACNO,EDGEMENT
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We take this opportunity to express our deepest and sincere gratitude to our professor
Dr. M. ee!ananthan" for his insightfu# ad!ice" $oti!ating suggestions" in!a#ua%#e guidance"
he#p and support in successfu# co$p#etion of this pro&ect and a#so for his constant
encourage$ent and ad!ice throughout our course.
We 'ou#d #ike to con!ey our thanks to the teaching and non(teaching staff of the )hiagara&ar
*choo# of Manage$ent for their in!a#ua%#e he#p and support throughout the course. We are
a#so gratefu# to a## our c#ass$ates for their he#p" encourage$ent and in!a#ua%#e suggestions.
C+APTER I
1. INTRODUCTION
1. 1 BACGROUND : )oday +offee has %eco$e a #ifesty#e. A#so" it has caught the fancy of
today,s generation ( youth. )hese 'ere not the typica# coffee drinking target
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custo$ers. -ut no' they are a %ig part of the target %ase for coffeehouses. And it is
fashiona%#e to %e seen at the +offee Pu%s. It is in a 'ay" a #ifesty#e state$ent. )hat is
%ad ne's for tea ( sti## the fa!ourite %re' for a $a&ority of Indians" 'hich has %een
#osing out to coffee in recent years. India is one of the 'or#d,s #argest exporters of tea
and a#so one of its %iggest consu$ers. -ut it is coffee drinking 'hich is increasing#y
%eco$ing a state$ent of young and up'ard#y $o%i#e Indians. And coffee %ars" an
unheard of concept ti## a coup#e of years ago" are sudden#y %ig %usiness. +orner %ars
#ike these are offering $ore than &ust coffee and snacks to their custo$ers. or $any
of their regu#ar patrons" a !isit to these %ars is a#so a part of the 'estern #ifesty#e they
so $uch 'ant to identify 'ith. )he +offee retai#ing sector in India is %oo$ing today"
'ith se!era# co$panies acti!e in the $arket. *o$e are #oca# entities" so$e ha!e co$e
fro$ a%road and ha!e tied up 'ith #oca# co$panies" and so$e see$ to prepare
the$se#!es for an entry sooner or #ater. )he $arket gro'th is expected to %e /0 to
02 annua##y in the next coup#e of years.
1.2 GROT+ OF CAFE INDUSTRY IN INDIA
3ot %e!erages ha!e a#'ays %een a part of the tradition of India"
especia##y *outh India. +offee took the first seat in *outh India 'hen the traditiona# -rah$in
c#asses %rought do'n the %e!erage fro$ the ru#ing -ritish around the 140s. During the ear#y
years the drink 'as confined on#y to traditiona# rich -rah$in fa$i#ies 'ho ser!ed fi#ter
coffee in a 5da!ra( tu$%#er6. +offee is no $ore confined to the rich -rah$in c#ass no'"
though the tradition of ser!ing fi#ter coffee in the 5da!ra( tu$%#er6 continues to this day. In
order to spread the drink" coffee houses e$erged at !arious p#aces in the country" 'hich a#so
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ser!ed as the opposite p#aces for #a'yers and the educated c#ass to ho#d discussions ranging
fro$ po#itics to cine$a. It is a#so %e#ie!ed that $any scripts and ideas for fi#$s e!o#!ed here.
One of the o#dest coffee houses in *outh India is the 7aayars $ess" +hennai" 'hich ser!es
first c#ass fi#ter coffee e!en today. )he $ess 'as esta%#ished in the 1480s and continues the
tradition of coffee %ut supp#e$ents it 'ith 1 tiffin a#so. )he !intage #ocation of the $ess
attracts huge cro'ds e!en today ear#y in the $ornings" +offee ho'e!er 'as not the on#y ite$
on the $enu. )hese p#aces a#so ser!ed food and other drinks to their custo$ers.
1.7 CAFE COFFEE DAY
+afe +offee Day is a di!ision of India,s #argest coffee
cong#o$erate" A$a#ga$ated -ean +offee )rading +o$pany 9td. :A-+)+9;" popu#ar#y
kno'n as +offee Day" a 7s. 00 +rore I*O 400/ certified co$pany. +offee Day sources
coffee fro$
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Europe" Eurasia" Egypt and *outh East Asia in the co$ing $onths.
1.8 SCOPE OF T+E STUDY
)he purpose of the study is to kno' the different pro%#e$s faced %y the indi!idua#s 'ho
are !isiting +afe +offee Day. )heir #e!e# of a'areness a%out the !arious aspects of prices"
products and it6s a!ai#a%i#ity at cafe coffee day are sur!eyed. No'(a(days" indi!idua# 'ho
are !isiting caf coffee day #ook out for $any faci#ities and co$fort Hone. )he $ain
purpose of this study is to understand the different pro%#e$s faced %y the indi!idua# 'ho
are !isiting cafe coffee day and 'hat are their preferences to'ards it and a#so to gi!e
!isitors suggestion to so#!e the pro%#e$s.
1.5 OB&ECTI6E OF T+E STUDY
)o study a%out the custo$er preference to'ards +afe +offee Day
)o study the !arious factors inf#uencing the custo$er to !isit +afe +offee
Day
)o study a%out the attitude of the custo$er to'ards the +afe +offee Day.
)his research pro&ect 'i## inc#ude the fo##o'ing issues ( Identifying the factors that
inf#uence the custo$er the $ost :factors such as coffee taste" a$%iance" afforda%i#ity;
+usto$ers purchasing %eha!iour and attitude to'ards coffee houses :in ter$s that for
'hat purpose they !isit a coffee(house" on 'hat occasions they prefer to !isit a coffee(
house" 'ho inf#uence their preference" ho' $uch they spend etc.;
C+APTER II
2. RE6IE OF ,ITERATURE
+usto$er preferences is a &udg$ent %y the custo$er" post purchase.
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)he $ost popu#ar !ie' of custo$er preferences in acade$ia is that custo$er preferences
is the &udg$ent %orne out of the co$parison of preJpurchase expectations 'ith post
purchase e!a#uation of the product or ser!ice experience :O#i!er" 144B;. +usto$er
preferences can resu#t fro$ any di$ension :'hether or not it is Kua#ity re#ated; and its
&udg$ents $ay arise fro$ non(Kua#ity issues :e.g. needs" eKuity" perceptions of 5fairness6;
and reKuire experience 'ith the ser!ice or pro!ider :)ay#or and -aker1448;L 3o'ard and
*eth" 144;. *trong #inkages ha!e %een apparent %et'een ser!ice Kua#ity di$ensions :for
exa$p#e speedy responses to enKuiries; and o!era## custo$er preferences :Anderson and
*u##i!an" 144;.
*eth et a# :/00; ana#ysed that there is re#ati!e i$portance of
ser!ice Kua#ity attri%utes and sho'ed that responsi!eness is the $ost i$portance
di$ension fo##o'ed %y re#ia%i#ity" custo$er percei!ed net'ork Kua#ity" assurance"
con!enience" e$pathy.
Carun ).+. :/00; in his study F+onsu$er preferences of +offee in
arnataka $entioned +offee is drunk in $ost countries" %ut typica##y one predo$inates.
+offee is the preferred drink in Europe and A$erica. =nti# the ear#y eighteenth century"
coffee production and consu$ption 'as confined to the Is#a$ic Wor#d. European traders
a#tered this pattern dra$atica##y. )he present pattern of coffee consu$ption is inf#uenced
%y inco$e per capita. 7e#igious inf#uence p#ayed so$e part in the ear#y de!e#op$ent of
coffee %ut ha!e #itt#e re#e!ance at the present. In the past" coffee 'as regarded as an o#d
fashioned %e!erage for o#der peop#e" 'ith &ust t'o f#a!ours regu#ar and decaf. +offee" of
#ate has %eco$e re#e!ant and conte$porary.
C+APTER III
7. RESEARC+ MET+ODO,OGY
7esearch $ethodo#ogy is a 'ay to syste$atica##y so#!e the research
pro%#e$. )his section exp#ains a%out the #ogic %ehind the $ethods 'e used in the context of
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our research and exp#ain 'hy 'e used a particu#ar $ethod or techniKue and not the other
techniKues so that research resu#ts are capa%#e of %eing e!a#uated easi#y and accurate#y.
7.1 RESEARC+ DESIGN
A research design is the arrange$ent of conditions for co##ection and
ana#ysis of data in a $anner that ai$s to co$%ine re#e!ance to the research purpose 'ith
econo$y in procedure. )he $ethodo#ogy used in pro&ect is Descripti!e 7esearch. Descripti!e
research studies are those studies 'hich are concerned 'ith descri%ing the characteristics of a
particu#ar indi!idua# or a group.
Descripti!e research is a#so ter$ed as Ex post facto research. )he $ain
characteristic of this $ethod is that the researcher has no contro# o!er the !aria%#esL one can
on#y report 'hat has happened or 'hat is happening. *ince our o%&ecti!e 'as to deter$ine
the factors of happiness a$ong a sa$p#e 'e used descripti!e research design.
7.2 DATA SOURCES
*ince our o%&ecti!e is to find out a rea# #ife pro%#e$ it is often found that
data at hand are inadeKuate" and hence" it %eco$es necessary to co##ect data %ased on our
o%&ecti!e. )here are se!era# 'ays of co##ecting data 'hich differ considera%#y in context of
$oney costs" ti$e and other resources.
PRIMARY DATA
Pri$ary data are those 'hich are co##ected afresh and for the first ti$e" and
thus happen to %e the origina# in character. Pri$ary data can %e co##ected through experi$ent
or through sur!ey. 3ere" sur!ey $ethod 'as adopted %ecause it he#ps to procuring data and
detai#ed infor$ation fro$ the respondents.
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3ere 'e co##ected data through Kuestionnaires. A Kuestionnaire consists of a nu$%er of
Kuestions re#ated to the sur!ey. We created a Goog#e for$ of the Kuestionnaire and circu#ated
a$ong the sa$p#e to co##ect the data. We opted to use Kuestionnaire $ethod %ecause it is #o'
cost and #arge sa$p#es can %e $ade use of and thus the resu#ts can %e $ade $ore dependa%#e
and re#ia%#e.
7.7 SAMP,ING
*ince our fie#d study 'as undertaken in a practica# #ife" considerations of ti$e
and cost a#$ost in!aria%#y #ead to a se#ection of respondents. )he respondents se#ected shou#d
%e a representati!e of the tota# popu#ation as possi%#e in order to produce a $iniature cross(
se#ection. )he se#ected respondents constitute 'hat is technica##y ca##ed as 5sa$p#e6 and the
se#ection techniKue is ca##ed 5sa$p#ing techniKue6.
)he sa$p#ing techniKues considered to se#ect the sa$p#e are as fo##o'sL
1. *a$p#e siHe?
*a$p#e siHe refers to the nu$%er of respondents se#ected fro$ the uni!erse to
constitute the sa$p#e. )he siHe of the sa$p#e shou#d neither %e excessi!e#y #arge" nor too s$a##. On#y an opti$u$ sa$p#e can fu#fi# the reKuire$ents of efficiency"
representati!eness" re#ia%i#ity and f#exi%i#ity. *o %ased on the para$eters of our
interest in our study kept in !ie'" 'e decided that the $ini$u$ sa$p#e siHe shou#d %e
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each indi!idua# of the popu#ation has the eKua# chance of %eing se#ected as a
respondent.
Our popu#ation does not constitute a ho$ogenous group and so 'e used stratified
sa$p#ing techniKue to se#ect the sa$p#e. In stratified sa$p#ing" the popu#ation is
di!ided into se!era# su%(popu#ations" so 'e di!ided the popu#ation into su% groups
%ased on occupation and gender that are indi!idua##y $ore ho$ogenous than the
popu#ation. )hese indi!idua# groups are ca##ed as 5strata6. )hen 'e se#ected the
sa$p#e fro$ each sing#e stratu$ to constitute the entire sa$p#e.
7.8 TOO,S FOR ANA,YSIS
)he too#s used for ana#ysis is *P** *oft'are. )he too#s used to interpret are the
fo##o'ings
1. One Way ANOCA
/. reKuency ta%#e ana#ysis
. +hi *Kuare )est
ONE AY ANO6A
)he one('ay ana#ysis of !ariance :ANOCA; is used to deter$ine 'hether there are
any significant differences %et'een the $eans of t'o or $ore independent :unre#ated; groups
:a#though you tend to on#y see it used 'hen there are a $ini$u$ of three" rather than t'o
groups;.
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ASSUMPTIONS
)he resu#ts of a one('ay ANOCA can %e considered re#ia%#e as #ong as the fo##o'ing
assu$ptions are $et? 7esponse !aria%#e residua#s are nor$a##y distri%uted :or approxi$ate#y nor$a##y
distri%uted;.
*a$p#es are independent.
Cariances of popu#ations are eKua#.
7esponses for a gi!en group are independent and identica##y distri%uted nor$a#
rando$ !aria%#es :not a si$p#e rando$ sa$p#e :*7*;;.
ANOCA is a re#ati!e#y ro%ust procedure 'ith respect to !io#ations of the nor$a#ity
assu$ption. If data are ordina#" a non(para$etric a#ternati!e to this test shou#d %e used such
as ruska#JWa##is one('ay ana#ysis of !ariance.
C+APTER 3 I6
ANA,YSIS AND INTERPRETATION
De*#r!(t!'e St"t!*t!#* 3 C$)("r!*$n $% )e"n*
Descriptive Statistics
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N Mean Std. Deviation
Gender 50 1.48 .505
Age 50 2.02 .473
Occupation 50 1.48 .646
o! o"ten do #ou vi$it a
co""ee $%op50 2.88 .&82
On an average %o! 'uc%
ti'e do #ou $pend at co""ee
$%op
50 2.46 .676
o! 'uc% 'one# do #ou
$pend at a co""ee $%op(50 2.44 .733
)%# do #ou go to co""ee
$%op50 2.16 .510
o! 'an# peop*e do #ou go
to a co""ee $%op !it%( 50 2.24 .555
Sta"" +e%aviour o" ,,D 50 1.&6 .807
Avai*a+i*it# o" pre"erred
-te'$50 2.08 .&66
o! do #ou no! ,,D 50 3.22 .&54
/a*ue o" 'one# at ,,D 50 2.16 .&55
De*iver# i'e at ,,D 50 1.82 .&62
Are #ou $ati$"ied !it% t%e
*ocation o" ,,D50 1.10 .303
)%at do #ou nor'a**# eat ordrin at ,,D
50 2.10 1.074
ua*it# o" "ood drin 50 1.64 .776
/a*id N *i$t!i$e 50
ro$ the a%o!e ta%#e it can %e inferred that the a'areness regarding the cafe coffee day
o'ards !isiting and a!ai#a%i#ity of products a$%ience ha!e #arge differences in their $eans
than the preferences of the custo$ers to'ards !isiting cafe coffee day.
One ;" ANO6A
)he one('ay ana#ysis of !ariance :ANOCA; is used to deter$ine 'hether there areany significant differences %et'een the $eans of t'o or $ore independent :unre#ated; groups
:a#though you tend to on#y see it used 'hen there are a $ini$u$ of three" rather than t'o
groups;.
One3;" ANO6A Re*/t* %$r De)$gr"(h!# '"r!"
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)o ascertain the o%&ecti!e of kno'ing the i$pact of de$ographic !aria%#es on the
di$ensions one 'ay ANOCA has %een constructed as sho'n in the ta%#e gi!en %e#o'.
C$)("r!*$n $% An$'" t"
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ota* 26.320 4&
At
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Sta"" +e%avior o" ,,D
et!een Group$ 1.257 1 1.257 1.&67
)it%in Group$ 30.663 48 .63&
ota* 31.&20 4&
/a*ue o" 'one# at ,,D
et!een Group$ 2.133 1 2.133 2.405
)it%in Group$ 42.587 48 .887
ota* 44.720 4&
Avai*a+i*it# o" pre"erred -te'$
et!een Group$ .347 1 .347 .367
)it%in Group$ 45.333 48 .&44
ota* 45.680 4&
De*iver# i'e at ,,D
et!een Group$ .431 1 .431 .461
)it%in Group$ 44.&4& 48 .&36
ota* 45.380 4&
At
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is a#'ays testing 'hat scientists ca## the nu## hypothesis" 'hich states that there is no
significant difference %et'een the expected and o%ser!ed resu#t.
)he ana#ysis ha!e %een 'ith co$parison of staff %eha!ior to'ards the custo$er satisfaction
Are you satisfied with the location of CCD * Staff behavior of CCD Cross tabulation
,ount
Sta"" +e%avior o" ,,D ota*
9ce**ent Good Average Sati$"actor#
Are #ou $ati$"ied !it% t%e
*ocation o" ,,D
:e$ 13 25 5 2 45
No 1 2 1 1 5
ota* 14 27 6 3 50
Chi-Square Tests
/a*ue d" A$#'p. Sig. 2;
$ided
atio 1.81& 3 .611
=inear;+#;=inear A$$ociation 1.651 1 .1&&
N o" /a*id ,a$e$ 50
a. 5 ce**$ 62.5? %ave e9pected count *e$$ t%an 5. %e 'ini'u'
e9pected count i$ .30.
3ere at
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Sati$"actor# 5 10.0 10.0 100.0
ota* 50 100.0 100.0
According to custo$er preferences the de#i!ery ti$e at ++D is Exce##ent and they prefer
ser!ing peop#e at fu## extent.
!uality of food " drin#
reuenc#
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Good 27 54.0 54.0 76.0
Average 6 12.0 12.0 88.0
Sati$"actor# 5 10.0 10.0 &8.0
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indings ?
It is that differentiated %et'een the AGE category 'ith respecti!e to the Kuestions of 'hy
custo$ers prefers to go to coffee shop and ho' $uch ti$e they spend at coffee shop.
It is inferred that"
Age category %et'een /1 (0 is !isiting ++D to +atch up 'ith their riends
+usto$ers don6t prefer !isiting ++D to ha!e &ust an cup of coffee
Age category of /1 J 0 is a#one spending $ore than 1 hour at ++D as their co$fort
#e!e#.
+o$parison of Age %et'een factors of $oney they spend and ho' they co$e to kno' a%out
++D
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indings ?
• It6s is that peop#e tends to find a%out ++D %y friends rather than other $eans of
co$$unications
• Age category of /1 J 0 is a#one spending their part at ++D $ore than 1
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indings ?
*taff %eha!ior of ++D is categoriHed as Exce##ent %y Ma#e rather than e$a#e
)he a!erage $easure$ent is categoriHed %y e$a#e they tends to say that ++D
shou#d i$pro!ised in fie#d of staff %eha!ior.
+o$parison of Ca#ue of Money at ++D %y c#assification of Gender
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indings ?
• Ma#e prefers that !a#ue of products at ++D is Good than e$a#e
• *o$e category of e$a#e says that !a#ue of $oney is poor as %ecause they see$s it is
too high
• It is inferred that price has to %e reduced so to a!oid custo$ers shifting
C+APTER 6
RECOMMENDATION AND ,IMITATION
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5.1 FINDINGS
It is that $any consu$ers prefer going ++D to spend their #eisure ti$e a#ong
'ith their friends. +onsu$ers !isiting ++D ne!er $ind of spending on $oney
Many consu$ers !isiting ++D prefers of s$oothies rather than eata%#es
)he $ode of co$$unication is #acking %ecause those peop#e !isiting ++D ca$e
to kno' on#y through their friends
*o ad!ertise$ent shou#d %e $ade effecti!e#y to reach custo$ers
)he #ocation of ++D is a#so $ain pro%#e$ %ecause custo$ers doesn6t kno'
a%out ++D and it6s #ocations.
5.2 ,IMITATIONS OF T+E STUDY
)he study is confined on#y to Madurai +ity.
)he ti$e period of the study 'as #i$ited.
On#y #i$ited sa$p#e siHe 'as possi%#e for such a !ast research
C+APTER 3 6I
CONC,USION
ro$ the pro&ect 'e can conc#ude the fo##o'ing?(
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• )hat $a&or things is that custo$ers gi!e top priority to the Kua#ity of ser!ice Rproduct
and a$%ience.
• )he $a&or co$petitor of caf coffee day is undou%ted#y %arista as %oth of the ser!ice
pro!ides cater to sa$e $arket seg$ent India as they find India ne' target $arket.
+afe coffee Day? ( )his has %een positioned for younger generation usua##y co##ege and
younger peop#e. With out#ets strategica##y positioned near co##ege" soft'are co$panies and
p#aces 'here they can target custo$ers. On ana#ysis it can %e seen that $a&ority of the
custo$ers are of 1(/0 age group. Peop#e prefer coffee day #ocation for treats.
APPENDI9
!. B!
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• http?RR'''.ats.uc#a.eduRstatRspssRoutputRfactor1.ht$#
• *tudy on custo$ers attitudes %y *.*. Gonsa#!es J /01<
• '''.cafecoffeday.co$R
• '''.casestudying.co$Rcafe(coffee(strategy(india
!!!. >e*t!$nn"!re
>UESTIONNAIRE7espected *irRMada$"
I sincere#y reKuest you to spend so$e of your !a#ua%#e ti$e to fi## this Kuestionnaire" as I a$
undergoing a pro&ect on J F+usto$ers Preferences to'ards +afe +offee Day.
I reKuest you to kind#y co(operate 'ith $e in o%taining re#e!ant infor$ation.
1. Na$e? TTTTTTTTTTTTTTTTT
/. Gender? U Ma#e U e$a#e
. Age? U V/0 ears U /1 J 0 ears U 1 ears
8. Occupation ? U *tudent U Working U -usiness
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. 3o' $uch $oney do you spend at a coffee shop
U#ess than 100
U100 ( 1
8/18/2019 Final a Study on Consumer Preference on Cafe Coffee Da1
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8/18/2019 Final a Study on Consumer Preference on Cafe Coffee Da1
28/29
8/18/2019 Final a Study on Consumer Preference on Cafe Coffee Da1
29/29
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