TEAM NUMBER: MKT 470.6.

GR01

TEAM NAME: Goal Seekers

Factors Influencing Loyalty Intentions of

Customer in Preferring Coffee Shops
Submitted to:
Tasneem Binte Morshed (TBM)
Lecturer
North South University

Submitted From:
Submitted to:
NAME ID
Tasneem Binte Morshed (TBM)
1. Md. Mashuk Anam 1611306630
2. Md. Akib Reza 1610845030
Lecturer
3. Md. Mohaimenul Islam 1430218030
North South University
4. Ahasanul Hoq Arif 1511232630
5. Mouly Tasnim Badrul 1430263630

SUBMISSION DATE & TIME: August 8, 2019 [11.59 AM]

Contents
Significance of the study ............................................................................................................................... 2
Introductions:................................................................................................................................................ 2
Background ................................................................................................................................................... 3
Purpose of the Study: ................................................................................................................................... 3
Gap Analysis: ............................................................................................................................................. 4
Rationalize and scope of the study: .......................................................................................................... 5
Objectivities of the research: .................................................................................................................... 5
Conceptual Model Analysis: .......................................................................................................................... 6
Definitions of our Variables: .................................................................................................................... 7
Development of Hypothesis: ........................................................................................................................ 7
Literature review:.......................................................................................................................................... 9
Research Methodology: .............................................................................................................................. 10
Research Design: ..................................................................................................................................... 10
Questionnaire Design:............................................................................................................................. 10
Primary research: ................................................................................................................................... 10
Secondary research: ................................................................................................................................ 10
Timetable: ............................................................................................................................................... 11
Budget: .................................................................................................................................................... 11
Scale selection:........................................................................................................................................ 11
Sampling:................................................................................................................................................. 12
Fieldwork: ............................................................................................................................................... 13
Data Analysis: .............................................................................................................................................. 13
SPSS ANALYSIS......................................................................................................................................... 13
Findings and interpretations ....................................................................................................................... 18
Recommendation & Managerial Implication: ............................................................................................. 19
Limitations of the research ......................................................................................................................... 19
Scope of Further Research: ......................................................................................................................... 20
Creative Insights:..................................................................................................................................... 20
Conclusion: .................................................................................................................................................. 21
Appendix: .................................................................................................................................................... 22
Pictures ................................................................................................................................................... 25
 Significance of the study
The study on the topic will enable us to understand the mind of our consumers and also the
psychological tricks that the restaurant uses to use to influence behavior among consumers. This
research will allow us to define loyalty intentions more clearly and we can also get to know some of
the primary factors that affect consumers' loyalty intentions. Our Study will also enable to analyze
the impact of customer loyalty in food industry as a whole and the prospects of it

Introductions:
Bangladesh is a fast-growing developing country. This development is affecting not only the economy but
also the lifestyle of every Bangladeshi people. If, we look back to 10/15 years. It was tough to find any
foreign food restaurant. Back at that time, the idea of the restaurant was not popular among the young
champs. In, recent 5/7 years the restaurant industry boomed in Bangladesh. For example, I’m counting the
booming restaurant age from beginning of 2014. We can find immense growth. Kazi food island was one
of the first movers in this industry. From then to now we can see the change.

In the middle of 2015, another new era started which is a coffee craze among young people. A considerable
number of new businesses and entrepreneurs have shown great interest in opening the coffee shop business
and resulting in many opening of coffee shops rapidly. And they are also receiving great response from this
generation of customers. Back to ’15 the there was the existence of two types of coffee shops. First one was
local coffee shops and secondly branded coffee shops. Locals coffees shops were managed and in a
conventional was in different places of Dhaka city such. Apon coffee shop was one of the leading shops
among the locals. And some entrepreneurs introduced modern coffee shops. Such as Tabaq, North End,
Gloria Jeans, Horse and Horse and many more. They entered the concept of coffee bins and rosters
coffee.

Previously, Bangladeshi peoples were very much into tea. Now the scenario started to change. According
to the world data atlas, 355 tones of coffee bins were imported in 2015, and just after one year it increased
to 462 sounds. Now the gradual growth is visible of the coffee industry. (Bangladesh - Coffee green and
roast imports quantity, 2016)

Each brand is attempting to pull in more clients to increase sales. But, it’s customers choose where they
want to visit and keep visiting. So, we tried to bring out the points. What makes the customers loyal to a
specific brand. And what are the variables which are playing a significant role in influences customers'
buying intention?
The objective of our study is to determine a model that can be used to predict brand loyalty intentions. To
get the actual result, we survey among the young’s people of different universities from Dhaka city.

Background
Indian sub-continent is the largest tea producer and consumer in the world, almost 70%. Initially, it was
brought in 1662 for medical purposes. In 1820 British east India company started commercial production
of tea in Indian sub-continent. After 200 years of colonization left the nation addicted to tea and it became
a part of our everyday food habit. Every Bengali started their day with drinking tea, whether they are rich
or poor. But because of Globalization the youth are acquiring new foreign tastes and coffee is one of them.
(Hossain, 2019).The millennials of Bangladesh have the idea of coffee as a social stimulant, means that
going out for a coffee has more social implications than the physical need of caffeine (Amatya, Mahin, &
Sadaaf, 2017). As people are losing their media of entertainment. Coffee shops have a chameleon nature,
people go there to study, a place to celebrate friend’s new job, a perfect place for a first date, and also a
favorite place for the youth to relax and spend time with friends. So we can say that the credit of bringing
the coffee culture to Bangladesh truly goes to the millennials.

Purpose of the Study:

Bangladesh has a quickly developing shopper showcase, and because of a vast populace base, the interest
for food is consistently on the ascent. The market and the item range have developed altogether in the course
of the most recent decade, and numerous organizations have entered the food business which was generally
not into this degree of diversification previously. (Food industry in Bangladesh, 2019).

In recent years the restaurant business in Bangladesh, especially in Dhaka city growing at a considerable
rate. The cause could be the choice of population is influenced by many factors like westernization, loyalty
towards restaurant, ambiance. Also the restaurant business has been one of the most profitable business in
recent years, so all the entrepreneurs take the change to introduce new category of restaurant businesses,
and all the subcategory of restaurant business are on the rise. For example, (Fine dining restaurants, Steak
and grill houses, Bangla dining restaurants, coffee shops, food courts, juice bars) all these subcategories of
restaurants are introduced to the demography of Dhaka city. We also can see these subcategory restaurants'
success in our own eyes. Another example can be given which is Just in a mere year Kazi Food Island
became the most popular food court in Dhaka city.

So diversification in food business leads us to some specialized restaurants like coffee shops. And the coffee
shops are becoming a popularized concept in Dhaka city specially targeting the high-end customer. As one
of the articles of Dhaka Tribune states, “The quantity of bistros in Dhaka is taking off at a passing rate.
Interest for assortment by a consistently expanding number of conscious and monetarily fit urban natives
is on the ascent. What's more, in this way, topics, sustenance, and insides of cafés, both old and new, nearby
and universal, are developing progressively assorted to suit that request" (Bhuiyan, 2018)

So as these coffee shops are making an impact on the customers of Dhaka city. There are a lot of factors
that still need to learn. We don’t know about the factor that making them consume coffee more, and also
the intention of their behavior.

Gap Analysis:
After conducting some secondary research and interviewing with food industry experts, we found out that
there’s a lot of research conducted based on the loyalty intentions and factors affecting the restaurant
business or food/ beverage industry as a whole.

For example there’s excellent research conducted by Dr. Naznin Islam called, “Factors Influencing the
Selection of Restaurant for Dining in Dhaka City of Bangladesh” (Islam, 2018).

But there’s no depth research can be found which is done with the subcategory restaurant business as we
talked about previously. So also research on coffee shops is rarely seen. So there is a gap in which we can
work further study.
Rationalize and scope of the study:
In the food industry there are lots of categories and lots of subcategories of restaurants. In each group are
unique in their way. And customers show completely different behavior or characteristics in each class.
Our topic is coffeeshop, as in coffeeshops customers behave differently and affection by various factors
than other dining or fast food café.

So, the purpose of the research is to find out “The Loyalty Intentions of Customers in Coffee Shops.”

The study in the coffee shop is a new field of research. The outcome of this study is to identify the factors
that create loyalty between upper-middle-class consumers in Dhaka. Therefore, we would have further
insight into consumers’ needs and wants. Restaurant businesses in the modern world are all about providing
more value to their customers by creating a point of difference and gaining competitive advantage over
their competitors. This study will help to understand the consumer behavior and loyalty intentions, which
would help out new entrepreneurs/ owners of coffee shops business to apply tactics to maximize profit.

The scope of our study is depended on consumers of coffee shops, especially why they choose one coffee
shop over the other and what factors motivated them to go back to same coffee shop over and over again.
All businesses want to retain their loyal customers, but to do that, they need to be up to the mark all the
time. Satisfaction and commitment are two significant factors that will improve customer retention
(Terblanche and Boshoff, 2010). Thus, it is essential to specify the factors that have more considerable
significance on consumers' loyalty intentions.

Objectivities of the research:

So as we already discussed, our study came from a gap of the study. We are doing this research because we
did not find any similar type of research in our marketplace. But the importance of this research can not be
ignored. As this article mentioned, “The current coffee market is worth in any event BDT 600 mn+, with
fermented coffee making up around 66% of that and moment coffee representing the remainder of the rest
of market share. There are about 50 premium cafes that have to serve nearly 160 million consumers” (Holt,
2019). So as we can see, we got an opportunity to work/ research on this topic to identify some
characteristics that were never done before.
We are not defining a problem statement as we are not working to find the solution to a problem. Our
research is based on Research Objectives. Our research objectives are:

• Reasons behind the recent increase in coffee consumption.

• The connection between the selection of restaurants based on their ratings.
• How friend and family affect the decision of customer going to coffee shop
• Current social view on coffee shops.
• How frequent they visit in a coffee shop

Conceptual Model Analysis:

Definitions of our Variables:

Loyalty Intentions

The intention to repurchase a given product or service. Customer satisfaction is the primary way to
determine customer loyalty, and it is generally said that satisfied customers stay loyal to a brand rather than
switching to other brands. (Upamannyu & Sankpal, 2014).

Ambiance

The “experience” is the most common thing that is believed to be sold in hospitality, and when it is a
restaurant, it is the sensory experience. Although the food itself is the core product of a restaurant, the
ambiance, the service, the staff are the augmented products (İŞÇİ, TÜVER, & GÜZEL, 2018)

Peer Influence

The company you keep says a lot about you. Friends and family have a significant influence on how you
feel, think, and behave. (Morin, 2015)

Westernization

Western culture is a wide range of cultures performed by the whole world. Nowadays this culture is highly
spreading in our country, and people are paying their interest in western culture with the help of
globalization. (Akter, n.d.)

Development of Hypothesis:
Based on these objectives and the independent variables, we developed these three hypotheses.

• Westernization leads to stronger loyalty intention towards coffeeshop

• Peer influence acts as a significant driver of customer’s loyalty intentions.
• Ambiance has significant impact on loyalty intention of customers towards coffee shops.

Loyalty intentions can be viewed as a customer's psychological disposition toward an object. In a purchase
situation, loyalty intentions reflect favorable attitudes toward the brand or firm (Dick and Basu 1994).
Drivers of loyalty are complex and dynamic, and they change and evolve (Johnson, Hermann, and Huber
2006). Several specific psychological antecedents motivate commitment.

Westernization is a concept that arises from the recent changes in our society. So there is a shift in the
restaurant businesses that is eager to follow the western culture or western style in their restaurant. They
also incorporated many picture paintings inside the coffee shop that give a western vibe. Nowadays the
coffee shop owner designs the interior as it looks vintage from the inside so that not only this westernization
of restaurant business attract the customer it will play an essential role in the customers as it motivates them
to come again and repurchase from the coffee shop. There is also factors lies with social media and the
esteem need of millennials, as millennials often thought posting from high-end restaurant makes them
look good on social media. (Naderian, 2015). So they go back to the same restaurant again and again just
for their esteem needs. Thus our first hypothesis is.

H1: Westernization leads to stronger loyalty intention

The degree of the dependability of customers to a specific brand communicated through their recurrent
buys, regardless of the promoting weight created by the contending brands is a well-known definition of
brand loyalty. On research found out that television advertisement was the most influential variable in
building brand loyalty followed by family. (Shobri, 2012)

Peer influence is a term basically falls under socialization of customers. In Bangladesh we are a collective
society to friends, family, outing with groups are essential to our community. Not as the Americans who
go to the coffee shop to enjoy his/her lonely times or to do work. We go to coffee shops and conversating
with our friend circle for an extended period. Sometimes the main reason to go to a coffee shop is to have
a long conversation with our friends. So as we can see family and friends are significant drivers of loyalty
intention in coffee shops. Thus our Second hypothesis is

H2: Peer influence acts as a significant driver of customer’s loyalty intentions.

Café ambiance plays an essential job in setting up a restaurant image, and to draw in customers to eat and
revisit. Interior and exterior plan both are important as it is attractive, eye-catching will dismantle the client
to revisit in the cafes (Omar, 2015)

Serving the best food on the planet doesn't always mean a full house restaurant consistently if nobody knows
exactly how excellent your sustenance is. Here and there you have to do some additional advancement to
draw in more clients to your cafe. So a restaurant interior design, its refreshing environment, its beautiful
music, its's superb seating area can create a difference in attracting and retaining more customers towards
cafes. A restaurant's ambiance can affect customer so much that, once they’re inside and trying the
restaurant's food, they’ll keep coming back time and time again.

Thus based on this information, our third hypothesis was developed.

H3# Ambience has a significant impact on loyalty intention of customers towards coffee shop
Literature review:
Coffee shop market has now become a fashionable trend in the global economy (Homayoon, 2014). The
coffee shop sector is becoming one of the most profitable industries worldwide. Bangladesh is no exception.
There are hundreds of coffee shops that have grown up across the country. Coffee shops in general sells
specialty coffee with various types of foods and beverages. Coffees generally have distinct characteristics
such as iced coffee, frozen coffee beverages, cappuccino, cafe mocha, latte mocha and espresso (Brown,
2015). People of all ages in Bangladesh visits coffee shops every day.

For Coffee shops, customer loyalty is an important thing to make profit in the end. There are many factors
influencing the customer‟s brand choice and his loyalty, but the ones that play an important role are
memorable experience and service quality that leads the customer to the level of satisfaction based on the
age and gender specifications (Abel, 2009). In competitive and aggressive market, customer loyalty is vital.
According to Homayoon (2014), the customer becomes loyal when their service demands are satisfied and
their expectations are met. There are factors like product quality, memorable experience, service quality;
customer satisfaction and price are affect the customer loyalty. Every businesses final goal should be to
retain loyalty of the customers as many as possible. (Beibei et al., 2013).

To gain customer loyalty the Marketers has to provide the customer with values. Holbrook (1994, p. 27)
defines customer perceived value as an “interactive relativistic preference experience”. According to Chen
& Hu, (2009) it is important for the marketers to ensure positive customer value and to gain knowledge of
what customers perceive as important in evaluating coffee shop. It is essential for a coffee shop to offer an
unquestionable and meaningful experience at the same time understand the motive. (Nadiri & Gunay, 2013)

To gain customer loyalty the entrepreneurs can implement experiential marketing strategy. Some of the
fastest growing sectors of the global economy are related to the consumption of experiences (Pine,Gilmore
1999).In today’s market the entrepreneurs are focusing more on providing better experience in terms of
coffee shops (Wu,2016). Today, providing experiences is seen as the way to remain competitive in
markets.(Nadiri & Gunay, 2013). Thus selling experience along with the products can create customer
loyalty at the same time can be beneficial for the business. (Nadiri & Gunay, 2013)

Customer plays a major role in services. Therefore, customer satisfaction should be valued mostly as
satisfaction leads to loyalty. (Wu,2016) Customer’s switches brand when they are not satisfied with the
service. In order to gain loyalty and reduce switching the entrepreneur has to think of providing diversified
products along with the services that can satisfy a wide range of customers. (Homayoon, 2014) Along with
many things, attractive packaging and friendly services can lead to high brand loyalty. (Han et. Al, 2018)
Last but not least; product quality is key to customer satisfaction. (Nadiri & Gunay, 2013) A product of
highest quality can help coffee provider retaining customer. Finally, a memorable experience can make a
client loyal and force a customer to revisit. (Homayoon,2014)

Research Methodology:
Research Design:
We choose a Conclusive research design to conduct our research (Malhotra, 1993). Specifically, this
research is generalized to a large population. We mainly select this research to test our specific hypothesis.

In Conclusive research, there are two types of research (Descriptive & Causal). Our research falls under the
causal investigation as we are trying to obtain evidence regarding the relationship between our independent
and dependent variables.

Questionnaire Design:
We want to conduct our research on a large population sample most likely maximum the participant is from
youth generation. So, we will need quantitative information, and for collecting data, we will do the survey
questionnaire. So, we will design a questionnaire with different types of related questions so that we will
get a range of useful data. Then the compiled research will be more on point and help us to define whether
our hypothesis is right or wrong And for designing our questions we are doing structured questionnaire
method. We are implying scaling method so that we can have proper question-wording. And we also used
Likert scale as it contains dual- statement so-that respondents both agree or deny our reports.

Primary research:
To conduct our fundamental analysis, we circulate physical survey questionnaire which will represent
sampling of different university students of Dhaka city who has an interest in the coffee shop to some extent
and frequently visit coffee shop. Which is designed to get the insights from the sample about their
preference. By using qualitative methods because we wish to understand and describe experiences of people
regarding their choices and the factors influencing the decisions. Then we will analyze the gathered
information and critically evaluate them using data processing software (SPSS) to see if the hypothesis gets
accepted or not. We collected data on 200 university students in Dhaka city.

Secondary research:
For gathering data from secondary research, we had to go through many articles related to the restaurant
industry. As we have given the critical review it holds the output of our secondary data analysis. More
importantly, we conducted interviews with hot beverage industry experts. To know their opinion about
customer loyalty intension. That helped us in developing the independent vairiables for research.

Research

Primary Secondary

Collective
Quantitively Qualitative
Survey

Timetable: Within a very short range of time period we have to conduct research. Dates are
followed.

Primary Research by 15th Secondary Research by 20th Final Research report by 8th
Aug,2019 Aug,2019 Sep,19

Budget: Is Important for any research. Though it was a small research for academic purpose. We
allocated bdt 5000. For rumination purposed we spend bdt2000. Transportation and printing of
papers costs another bdt1000.

Scale selection:
We conducted our research on quantitative information, and for collecting information we choose a non-
comparative scale, which is a scalling tecniques where each subject of the question is not related or not
copeared with each other it is conducted when measurement of single subject. So in our case we are not
using comperative scale as we are using one subject coffeeshops. And within comperative scale we are
using Likert Scale to collect our our data.

As we worked on loyalty intension of coffee shops. Which is relatable to customers attitude to loyalty. The
main reason to choose Likert chart is it gives highly relatable data than others scale toward attitude. And
attitude is a complex thing, On the other hand Likert scale allow us to capture the variation on attitude.
Other reasons are it’s simple to understated for respondent and gives a clear idea about human thoughts to
researcher. Our scale selection was Strongly disagree to Strongly agree. As we

1. Strongly 5. Strongly
2.Disagree 3. Neutral 4. Agree
disagree Agree

Sampling:
For designing the samples, careful measurements have been followed so that samples on the basis of
behaviors, demography and food choices can be selected. In coffee shops we found most of the customers
are young and student. As we mention on introduction coffee shop is a new concept. Which is boomed by
or popular among the Millennials. As our target respondents mostly belong to the young generation so the
sources of our data is our North-South University. Our we target group of students from different university
students. Total sample size was 200. Mostly, aged between 20-26.

So as we mentioned we select the sample from NSU for the convenience in collecting information. So we
are using Convenience Sampling.

We are also using Judgmental Sampling as we selecting the sample who regularly or irregularly goes to
coffee shop. We felt judgmental sampling can give us the more accurate insights about loyalty intension of
coffee shop.
Fieldwork:
As we already mentioned we surveyed 200 respondent in north south university. All student doesn’t belong
to the same department. SO for collecting the data we don’t hire any third party or agency. We have very
limited time. So we divided our surveying responsibilities into 5 people. And each of our team members
collected 40 surveys by themselves. Our faculty TBM maam work as a supervisor in this process, She
helped us in collecting information form her students.

Data Analysis:
We will use multiple regression analysis to analyze the relationship between the dependent variable
(Loyalty Intentions and three independent variables. (Ambience, Peer Influence, Westernization) In our
conceptual model. We will set specific metrics and use the data analysis methods that have learned from
the course (Li, 2013) to test the hypothesis we developed. ANOVA, Reliability Test, Correlation and
Coefficient Demographic test were conducted on SPSS analysis. We have also measured the
reliability of our question, and this data was analyzed through Cronbach’s Alpha model. We have done
some demographic research which shows us information about gender and age.

SPSS ANALYSIS
Dependent Variable

Our Dependent Variable was Loyalty Intension.

Independent Variable

Our Independent variables were:

Westernization.

Ho: Westernization doesn’t lead to stronger loyalty intention towards coffeeshop

H1: Westernization leads to stronger loyalty intention towards coffeeshop

Peer Influence.

Ho: Peer influence doesn’t act as a major driver of customer’s loyalty intentions

H1: Peer influence act as a major driver of customer’s loyalty intentions

Ambiance

Ho: Ambience doesn’t have any significant impact on loyalty intention of customers towards a coffee
shop

H1: Ambience has a considerable effect on loyalty intention of customers towards coffee shop

Descriptive Statistics

Mean Std. Deviation N

Loyalty_Intensio
3.56 .601 200
n

Ambience 4.01 .489 200

Peer_Effect 3.30 .574 200

Westernization 3.39 .647 200

Demographic

The respondents were fairly young belonging to the age group of 18-28. Vast majority of the respondents
were university students. Respondents of specific gender were not targeted, both male and female randomly
participated in the survey.

Age Gender

15-18 18-23 23-28 28 or above

Male Female
Empirical Results

Reliability (Cronbach’s Alpha)

Variable Name Cronbach’s Alpha Interpretation

Loyalty Intension .390 39% of the variance in the
score is reliable variance.
Therefore, 61% is error
variance.
Westernization .523 52% of the variance in the
score is reliable variance.
Therefore, 48% is error
variance.
Peer Influence .374 37% of the variance in the
score is reliable variance.
Therefore, 63% is error
variance.
Ambience .325 32% of the variance in the
score is reliable variance.
Therefore 68% is error
variance.

Correlations

Loyalty_Intens Ambience Peer_Influence Westernization

ion

Loyalty_Intensio
1.000 .076 .294 .379
n

Pearson Correlation Ambience .076 1.000 .223 .158

Peer_Influence .294 .223 1.000 .327

Westernization .379 .158 .327 1.000

 Loyalty_Intensio
. .143 .000 .000
n

Sig. (1-tailed) Ambience .143 . .001 .013

Peer_Influence .000 .001 . .000

Westernization .000 .013 .000 .

Loyalty_Intensio
200 200 200 200
n

N Ambience 200 200 200 200

Peer_Influence 200 200 200 200

Westernization 200 200 200 200

Variables Entered/Removeda

Model Variables Variables Method

Entered Removed

Westernization
, Ambience,
1 . Enter
Peer_Influence
b

a. Dependent Variable: Loyalty_Intension

b. All requested variables entered.

Model Summary

Model R R Adjusted R Std. Error of the Change Statistics

Square Square Estimate
R Square F df1 df2 Sig. F
Change Change Change

1 .420a .176 .164 .550 .176 14.001 3 196 .000

a. Predictors: (Constant), Westernization, Ambience, Peer_Influence

Interpretation

Here we can see that the value of the R Square is .176 which means the independent variables altogether
account for 17% of the variance in the dependent variable which is loyalty intension.

ANOVAa

Model Sum of Df Mean Square F Sig.

Squares

Regression 12.685 3 4.228 14.001 .000b

1 Residual 59.190 196 .302

Total 71.875 199

a. Dependent Variable: Loyalty_Intension

b. Predictors: (Constant), Westernization, Ambience, Peer_Influence

Interpretation

From the ANOVA table, we can see that the p-value is .000, which is less than .05. This implies that
our Regression model is significant also our independent variables Westernization, Peer Influence
and Ambience have substantial impact on our dependent variable Loyalty Intension.
Coefficients

Model Unstandardized Coefficients Standardized t Sig.

Coefficients

B Std. Error Beta

(Constant) 1.971 .375 5.254 .000

Ambience -.022 .082 -.018 -.267 .790

1
Peer_Influence .203 .073 .194 2.774 .006

Westernization .296 .064 .319 4.628 .000

a. Dependent Variable: Loyalty_Intension

Findings and interpretations:

First of all, from our data analysis, we can say that only two of our variables have significant impact on our
dependent variables. And one of the variables has no significant effect on the dependent variable... Saying
that we can conclude that we can accept two of our hypotheses and reject one hypothesis.

Hypothesis 1

From the coefficient table, we can see that the p-value for ambiance is .790, which is higher than .05. So
we accept the null hypothesis which means Ambience does not impact loyalty intension in terms of coffee
shops.

Hypothesis 2

From the coefficient table, we can see that the P-value for peer influence is .006, which is less than .05. So
we can reject the null hypothesis and accept the alternative hypothesis, which is,

Peer influence impacts loyalty intension in terms of coffee shop.

Hypothesis 3

From the coefficient table we can see that work Westernization’s P-value is .000 which is less than .05. So
we reject the null hypothesis which is, and accept the alternative hypothesis, which is
Westernization impacts loyalty intension.

Recommendation & Managerial Implication:

1. Giving more Bundle Offer promotion: At the current era people are now busier than ever. Because of
their busy life, it becomes very hard for them to socialize with others. Their social interactions are limited
to 'facebooking', 'whatsapping' and 'twittering,'. As a result real face to face interactions becomes priceless
for them (Hossain, 2018). To that end what better way to de-stress than to enjoy a wholesome 'Adda' session
over a cup of coffee, with friends and family at any of the local joints. Our survey results also support the
findings of our secondary research, that peer influence is a major factor for loyalty intension. So giving
bundle offers will be much more effective than other offers as customers tend to visit the cafes in groups.
Bundle offers will further encourage this trait of the customers.

2. They should follow the western standard in providing their service: Western influence has led to
more nation accepting coffee as a beverage for daily consumption (Huang & Dang, 2014). Bangladesh has
also witnessed a change in people’s habit because of westernization. From our secondary data analysis, we
found out that more successful cafes follow western style and standards. They follow western menu, where
they provide various dessert items such as Cheese Cake, Brownie, and Chocolate Mousse etc. which are
definitely not originated from Bangladesh. Our primary data analysis also supports that customers have a
positive vibe towards western style coffee shops. So, it is vital for coffee shops to introduce the customers
with new western flavors and make sure that every element in the coffee shop gives a western vibe.
Focusing more on staff’s behavior, so that they can represent the coffee shops standards in a proper way.

Limitations of the research

1. Difficult to get genuine answer

Vast majority of our respondents were university students. The research was conducted just before NSU’s
Summer 19 final exams. As a result the students were very busy and it became very difficult for us to get
the answers and when we managed to get response from the respondents, there were concerns regarding
how genuine were the responses. These lead to the poor result in our reliability statistics.

2. Data Manipulations

Many respondents didn’t care about the survey. They just wanted to be done with it, this lead to data
manipulation by the respondents, which was also a reason for poor result in the statistical analysis.
3. Technological

Although SPSS is a powerful tool for statistical analysis, it had not changed much since its release in 1968.
The world of statistical analysis has changed a lot in the last half century, and now some alternatives to
SPSS exists which are faster and better. Like SPSS, Q is a robust analysis and reporting platform. It been
explicitly designed as an improvement over SPSS, automating much of the analysis process and making
advanced analysis accessible to everyone.

Scope of Further Research:

Value Equity, the primary driver of loyalty Intentions, can be comprehended as the apparent proportion of
what is gotten (e.g., an item) to what must be relinquished (e.g., the cost paid for the subject). In this way,
a significant value quality proportion is demonstrative of high esteem value. On the off chance that a
customer result input proportion compares to their very own reference result input proportion, the
experience of internal reasonableness results (Oliver and DeSarbo 1988). Value hypothesis keeps up that
apparent value produces positive powerful expresses that lead to uplifting frames of mind, for example,
fulfillment and loyalty (Adams 1965; Homans 1961; Walster, Walster, and Berscheid 1978).

In our research paper we mainly talk about how the factor in coffee shop affected customer loyalty. So as
the coffee shop regarded as a premium resturant in western culture we thought that value and price might
plays a smaller roles than our selected independent variables. So we exclude value, quality and price from
our independent variable because we had a limited time,

But by doing this study we feel that For coffeeshop Price, Quality, Value is the main factors that makes
customer loyal in Bangladeshi price sensitive Market. So further research can be done in this area; which
will relate price, quality and value with loyalty intentions.

Creative Insights:
Bangladesh is a country where people still prefers the tea as a hot beverage rather than the coffee. Even
though the Bangladeshis consider the tea as their primary hot beverage, yet they prefer coffee outside their
home. Through our extensive research and data analysis, we have found that two of our hypothesizes were
proven while the ambiance had the negative impact although it is significant. Ambiance is negatively related
because of the fact that the coffee shops with superior ambiance often perceived as expensive. The
Bangladeshi customers are mostly the price sensitive hence; they often prefer products that falls under their
estimated budget.
Conclusion:
The coffee shop industry in Bangladesh is booming. To gain more sustainability the coffee shops must on
various things that helps to gain customer loyalty. Therefore, we have tried to conduct this research on
loyalty intention of customers in visiting coffee shops. This research is not based on any problem statement
thus; we tried to observe the perception of the Bangladeshi people on this specific topic which is long
ignored. In doing our research, we found few things that highly affects the consumer loyalty in visiting a
coffee shop. Through this research, we have also learnt the variables like the westernization and peer
influence greatly affects the customer loyalty intentions. The coffee shops has focusing on their services
also. They has create such an environment that will allow the customers come in peer and feel comfortable
inside the coffee shop. In conduction this interesting research we had the opportunity to learn many things.
This research did not only enhanced our knowledge in a particular topic rather opened the gateway of further
research for us.
Appendix:
References

Amatya, S., Mahin, T., & Sadaaf, B. H. (2017, 12 12). Coffee: a lifestyle or just another alternative
to tea? Retrieved from The Daily Star:
https://www.thedailystar.net/lifestyle/reader%E2%80%99s-chit/coffee-lifestyle-or-just-
another-alternative-tea-1503541

Bangladesh - Coffee green and roast imports quantity. (2016). WORLD DATA ATLAS.
knoema.com.

Boshoff, C., and N. S. Terblanche. "Quality, value, satisfaction and loyalty amongst race groups:
A study of customers in the South African fast food industry." South African Journal of
Business Management 41, no. 1 (2010): 1-9.

Bhat, A. (n.d.). Quantitative Market Research : The Complete Guide. Retrieved from QuestionPro:
https://www.questionpro.com/blog/quantitative-market-
research/amp/?fbclid=IwAR2Ydv_DyyZp_Bj0D53dYXSZNPjSBBx8YtITjP1JGAJIJQ5
HjuJ7mvShknE

Bhuiyan, S. M. (2018, February 8). 4 reading cafés gaining traction in the capital. Dhaka Tribune
Magazine.

Bhat, A. (n.d.). Quantitative Market Research : The Complete Guide. Retrieved from QuestionPro:
https://www.questionpro.com/blog/quantitative-market-
research/amp/?fbclid=IwAR2Ydv_DyyZp_Bj0D53dYXSZNPjSBBx8YtITjP1JGAJIJQ5
HjuJ7mvShknE

Chen, P. and Hu, H. (2010), "How determinant attributes of service quality influence customer‐
perceived value", International Journal of Contemporary Hospitality Management, Vol. 22
No. 4, pp. 535-551. https://doi.org/10.1108/09596111011042730

Dick, Alan S. and Kunal Basu (1994), "Customer Loyalty: Toward an Integrated Conceptual
Framework," Journal of the Academy of Marketing Science, 22 (2), 99-113.
Food industry in Bangladesh. (2019, September 8). Retrieved from The Daily Star:
https://www.thedailystar.net/food-industry-in-bangladesh-6622

Heesup Han, B.-L. C. (2018). Drivers of brand loyalty in the chain coffee shop industry.
International Journal of Hospitality Management, 86-97.

Holt, J. (2019, January 23). The Appeal of the Untapped Coffee Market in Bangladesh. Retrieved
from sdasia.co: https://sdasia.co/2019/01/23/the-appeal-of-the-untapped-coffee-market-
in-bangladesh/

Hossain, S. (2019). The coffee house hangouts. The Daily Star.

Huang, Y.-F., & Dang, H. S. (2014). An Empirical Analysis on Purchase Intention on Coffee
Beverage in Taiwan . European Journal of Business and Management , 182-188.

Hossain, S. (2019). The coffee house hangouts. The Daily Star.

Huang, Y.-F., & Dang, H. S. (2014). An Empirical Analysis on Purchase Intention on Coffee
Beverage in Taiwan . European Journal of Business and Management , 182-188.

Halil Nadiri & G. Nazan Gunay (2013) An empirical study to diagnose the outcomes of customers’
experiences in trendy coffee shops, Journal of Business Economics and Management, 14:1,
22-53, DOI: 10.3846/16111699.2011.631742

Islam, D. N. (2018). Factors Influencing the Selection of Restaurant for Dining in Dhaka City of
Bangladesh. Kathmandu: Asian Institute of Technology.

Johnson, Michael D., Andreas Herrmann, and Frank Huber (2006), "The Evolution of Loyalty
Intentions," Journal of Mar keting, 70 (April), 122-32.

Li, J. (2013, April 12). Quantitative Data Analysis Techniques for Data-Driven Marketing.
Retrieved from I-Acquire: https://www.iacquire.com/blog/quantitative-data-analysis-
techniques-for-data-driven-marketing-2?fbclid=IwAR13j4Qr-
EWxvyj1Ini3hys4FAJ9uyrbQarYwCL6k9yA0YIxqTKnXMZAazo

Li, J. (2013, April 12). Quantitative Data Analysis Techniques for Data-Driven Marketing.
Retrieved from I-Acquire: https://www.iacquire.com/blog/quantitative-data-analysis-
 techniques-for-data-driven-marketing-2?fbclid=IwAR13j4Qr-
EWxvyj1Ini3hys4FAJ9uyrbQarYwCL6k9yA0YIxqTKnXMZAazo

Malhotra, N. K. (1993). Marketing Research.

Naderian, A. (2015). Service Quality and Consumer Satisfaction and Loyalty Association
Moderated by Switching Cost in Hospitality Industry. Malaysia: Universiti Teknologi .

Omar, M. a. (2015). The Relationship between Restaurant Ambience and Customers' Satisfaction
in Shah Alam Arabic Restaurants, Selangor. international Journal of Administration and
Governance, 1-8.

Shobri, N. a. (2012). The Influence of Consumer Socialization on Brand Loyalty: Survey on

Malaysian Fast Food Consumer. Procedia - Social and Behavioral Sciences, 523–529.

TOPCU, Y., & UZUNDUMLU. (2009). aNaLYSIS OF FaCTOrS aFFeCTING CUSTOMer

reTaILer LOYaLTY IN THe TUrKISH FOOD MarKeT: THe CaSe STUDY OF erZUrUM.
Erzurum: Department of Agricultural Economics, Collage of Agriculture, Ataturk
University.

TOPCU, Y., & UZUNDUMLU. (2009). aNaLYSIS OF FaCTOrS aFFeCTING CUSTOMer

reTaILer LOYaLTY IN THe TUrKISH FOOD MarKeT: THe CaSe STUDY OF erZUrUM.
Erzurum: Department of Agricultural Economics, Collage of Agriculture, Ataturk
University.

Wu, H. (2017), "What drives experiential loyalty? A case study of Starbucks coffee chain in
Taiwan", British Food Journal, Vol. 119 No. 3, pp. 468-496. https://doi.org/10.1108/BFJ-
08-2016-0349
Pictures