RESEARCH METHODOLOGY

Continuous Internal Assessment – 3

By

ADOLF TOM -2228004

ANJANA RS-2228006

ASHISH FELIX TIGGA -2228011

ESHA KUMARI -2228019

NISHITHA S-2228034

MBA LOS4

Under the Guidance of

PROF. BIKASH KUMAR RUP

SCHOOL OF BUSINESS AND MANAGEMENT

CHRIST (DEEMED TO BE UNIVERSITY), BANGALORE

April 2023

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 TABLE OF CONTENTS

SL.NO PARTICULARS PAGE NO.

1 INTRODUCTION TO COMPANY-STARBUCKS 3

RESEARCH PROBLEM
2 3

PROBLEM STATEMENT
3 3

RESEARCH OBJECTIVES
4 3-4

VARIABLES
5 4

DATA COLLECTED
6 4

STATISTICAL ANALYSIS
7 5-12

8 RECOMMENDATION 12

9 CONCLUSION 13

10 REFERENCE 14

11 APPENDIX 14-19

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INTRODUCTION TO COMPANY-STARBUCKS

Starbucks is a multinational chain of coffeehouses and roastery reserves headquartered in

Seattle, Washington. It was founded in 1971, and since then has become one of the world's
largest and most recognizable coffee companies, with over 30,000 locations in 80 countries.
Starbucks is known for its high-quality coffee, cosy atmosphere, and commitment to social
responsibility, including sustainable sourcing and ethical practices, under Kevin Johnson the
current CEO. The company's mission is " one person, one cup, and one neighbourhood at a
time, in an effort to inspire and strengthen the human spirit. The company offers a variety of
beverages and food items, including seasonal specials and vegan options, and also sells its own
brand of coffee and merchandise. In fiscal year 2021, the company reported a total net revenue
of $28.5 billion.

RESEARCH PROBLEM

ISSUES WITH THE STARBUCKS EXPERIENCE MARKETING

Starbucks Experience Marketing had several issues, including Experience Desalination,

Quality Issues, Reducing Service Quality, and Weekend Corporate Culture. The changes in
people's lifestyles due to globalization have affected their needs and preferences, especially in
the coffee market. To address these issues, we will explore how implementing the best practices
of experiential marketing at Starbucks can enhance brand image and promote brand loyalty.
The company faced challenges in its marketing strategy, as some customers perceived it as
inaccessible and relying too heavily on traditional marketing methods. Starbucks responded by
updating its marketing approach, focusing on social media and digital channels, and making
the brand more accessible and affordable to a broader audience. The experience taught the
importance of adapting to changing customer preferences to remain successful in the market.
The challenge is to make Starbucks' new store's experience marketing more manageable while
improving experiential marketing.

PROBLEM STATEMENT

What challenges does Starbucks face in maintaining a consistent and satisfying customer
experience across its stores, and how EM can be a factor to improve customer loyalty and
brand image?

RESEARCH OBJECTIVES

1. To identify the challenges and issues faced by Starbucks in its Experience

Marketing campaign.

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 2. To examine the impact of these challenges on the company's brand image and
customer loyalty.
3. To evaluate the effectiveness of Starbucks' updated marketing strategy that focuses
on social media and digital channels.
4. To explore the best practices of experiential marketing at Starbucks and how they
can be applied to enhance the customer experience and build brand loyalty.
5. To provide recommendations for Starbucks to address the issues and challenges in
its Experience Marketing campaign, and to improve its overall marketing strategy.

VARIABLES

Dependent variables:

• Customer satisfaction with the Starbucks experience

• Perception of the Starbucks brand image
• Customer loyalty to the Starbucks brand

Independent variables:

• Quality of products and services

• Store design and layout
• Employee training and behaviour

DATA COLLECTED

The data used for the analysis is the primary data. It was collected directly from the people who
are aware of the Starbucks experience marketing irrespective of age, gender, usage rate,
profession etc. this was to get the direct opinion and behaviour of the society towards
Starbucks. The questionnaire was prepared and circulated around the people who are aware of
Starbucks experience marketing There were 52 responses we got from different people
irrespective of gender, age, profession and occupation. In order to collect primary data by cross
sectional method, we would rely mainly on the e-questionnaire form as our survey. The e-
questionnaire would include the questions which cater to all the objectives of our research such
as knowing attitude, perception of the respondents and factors which affect attitude and
perception. It would include multiple choice questions which will include the different types
of scale like nominal scale for uniquely identifying questions, interval scale and five-point
Likert scale. The questionnaire focused into the close details which was helpful to interpret the
Starbucks experience marketing and how people are convenient with regards to those services
provided and to confirm if they are influencing to choose Starbucks as their first preference
among service available across.

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STATISTICAL ANALYSIS

Statistical analysis is the process of using mathematical and statistical methods to analyze and
interpret data. It involves collecting, organizing, analyzing, and interpreting data to draw
conclusions or make predictions about a population based on a sample. Statistical analysis can
be used in a wide range of fields, including social sciences, health sciences, business, and
engineering.

SPSS (Statistical Package for the Social Sciences) is a software program widely used in
statistical analysis. It provides a comprehensive set of tools for data analysis, including
descriptive statistics, inferential statistics, regression analysis, and factor analysis. The
scientific data related to surveys can be analysed with the help of this simple programme. The
software will assist in simplifying the processing of the significant information. The software
uses data transformation to change the format of data gathered. The same data collected in one
location was integrated. Therefore, it is simple to handle. SPSS is popular because it is user-
friendly and can handle large datasets, making it a valuable tool for researchers and data
analysts.

To support our Problem statement, we are performing the following tests:

1) CORRELATION

Correlation is a statistical method used to assess a possible linear association between two
continuous variables. Correlation is measured by a statistic called the correlation coefficient,
which represents the strength of the putative linear association between the variables in
question.

HYPOTHESIS

Null Hypothesis, H0: There is no significant relationship between Age and purchasing
decision of an individual.

Alternative Hypothesis, H1: There is Significant relationship between Age and the
purchasing decision of an individual.

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INTERPRETATION

Here we are taking into consideration whether there is significant relation or not between Age
and purchasing Decision. From the above analysis we can clearly understand that the Pearson
correlation between age and purchasing decision is -181, that is there is a negative correlation
between the both. So, there is no relationship between the two.

2) REGRESSION

In statistical analysis, regression is used to identify the associations between variables

occurring in some data. It can show both the magnitude of such an association and also
determine its statistical significance (i.e., whether or not the association is likely due to chance).

• The linear equation for regression is Y=b0+b1Xi, where

• Y is the dependent variable
• X is the independent variable
• b0 is the estimation of regression intercept
• b1 is the estimation of regression slope
• Here we are considering customer experience and atmosphere and ambiance for
regression analysis and considering 5% level of significance (alpha) and assuming 95%
confidence level.
• Here our dependent variable is customer experience and Atmosphere and ambiance as
our independent variable, that is if there is a change in Atmosphere and ambiance then

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 there will be change in the customer experience of Starbucks. So, by Regression we can
generally take “y” as customer experience and “x” as Atmosphere and ambiance

HYPOTHESIS

H0: There is no relationship between Atmosphere and ambience with that of customer
experience.

H1: There is a significant relationship between atmosphere and ambience with that of
customer experience.

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INTERPRETATION

• Here from the model summary table R square means Regression Coefficient which is
generally known as goodness of fit which is 0.471 it is the proportion of variation in
customer experience that can be predictable from the Ambiance and atmosphere of
Starbucks. There is 47% of variance in dependent variables by independent variables.
• The correlation coefficient R=.686 which shows a positive correlation between the two
variables.
• Adjusted R squared value is used to determine the variation of the dependent variable
when the independent variable is adjusted. Here the value is 0.457.
• From ANOVA table, as we are considering the significance value as 5% and the p value
is 0.00, so we can clearly interpret that as our p value is less than 0.05 this model is
significant. So, with 95% confidence we can say that this is significant.
• Beta: These coefficient values indicate which will be obtained if independent variables
are standardized prior to analysis. A standardized beta coefficient measures the strength

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 of each independent variable's effect. The bigger the influence, the larger the absolute
value of the beta coefficient.

3) ANOVA

An ANOVA (“Analysis of Variance”) is a statistical technique that is used to determine

whether or not there is a significant difference between the means of three or more independent
groups. The two most common types of ANOVAs are the one-way ANOVA and two-way
ANOVA.

A One-Way ANOVA is used to determine how one factor impacts a response variable. For
example, we might want to know if three different studying techniques lead to different mean
exam scores.

A Two-Way ANOVA is used to determine how two factors impact a response variable, and to
determine whether or not there is an interaction between the two factors on the response
variable. For example, we might want to know how gender and how different levels of exercise
impact average weight loss.

HYPOTHESIS

H0: There is no significant relationship between Customer experience and

recommendation to marketing and promotion.

H1: There is significant relationship between Customer experience and recommendation

to marketing and promotion.

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INTERPRETATION

• The ANOVA test compares the variance between groups to the variance within groups.
Here for both the variables like recommendation and customer experience the variance
between groups is lesser than the variance within groups, it suggests that there is no
significant differences between the groups being compared.
• The ANOVA test produces an F-statistic and a p-value that can be used to determine
whether the differences between the groups are statistically significant. Here (P-Value)
for recommendation 0.00 < 0.05(α value) also calculated F value is 7.035 Since P-Value
is less than alpha so we reject the null hypothesis H0 that is There is significant
relationship between Customer experience and recommendation to marketing and
promotion.
• But in the case of customer experience p- value is .374 which is greater than 0.05 so we
accept the null hypothesis and good to go with the next step.

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4) ONE-SAMPLE T-TEST

HYPOTHESIS

H0: There is no significant relationship between Customer experience and Purchase

decision.

H1: There is a significant relationship between Customer experience and Purchase

decision.

INTERPRETATION

• The output of t-test provided the results including the t-value, degrees of freedom, and
p-value.
• The t-value indicates the size of the difference between the sample mean and the
population mean, in standard error units. The degrees of freedom is the number of
observations minus-1.
• Here all the p-values of each variable are <.001 as we are considering the alpha as 0.05
it indicates strong evidence against the null hypothesis and suggests that the observed

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 difference between the sample mean and the population mean is unlikely to be due to
chance alone.
• In the context of a t-test, a p-value less than .001 suggests that the sample mean is
significantly different from the population mean at the 0.1% level of significance. So
the factors like customer experience, purchasing decision, store experience and
recommendation have significant relationships. This means that we can reject the null
hypothesis and conclude that the sample mean is statistically significantly different
from the hypothesized population mean.

RECOMMENDATION

It can clearly understand that many factors are influencing STARBUCKS EXPERIENCE
MARKETING in one way or the other. It is evident that how Ambiance and atmosphere, Customer
experience and recommendation, purchasing decision, store experience all these factors positively
affect the experience marketing and brand image of Starbucks. Other than this they can improve in other
ways which include

1. Improve in-store experiences: Starbucks should focus on enhancing customer

experience in-store by ensuring clean and inviting store layouts, friendly and attentive
customer service, and quality product offerings. This will help to retain existing
customers and attract new ones.
2. Personalization: Starbucks should personalize the customer experience by offering
customized drinks, food items, and promotions based on individual customer
preferences. This can be done through data analytics and leveraging customer feedback.
3. Online and mobile ordering: Starbucks should continue to invest in online and mobile
ordering to improve convenience for customers. This includes improving the
functionality of the Starbucks mobile app and ensuring efficient order fulfilment.
4. Social media engagement: Starbucks should engage with customers on social media
platforms to build a stronger brand following and create a sense of community among
customers. This can be done through social media campaigns, influencer partnerships,
and user-generated content.
5. Sustainability: Starbucks should continue to prioritize sustainability in its marketing
efforts by highlighting its commitment to environmental and social responsibility. This
can be done through eco-friendly packaging, sourcing sustainable ingredients, and
promoting ethical labour practices.
6. Innovative products: Starbucks should focus on introducing new and innovative
products to keep customers engaged and excited about the brand. This can include
seasonal offerings, limited-time promotions, and collaborations with other brands.

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CONCLUSION

The Starbucks experience marketing is a key element of Starbucks' success, which has helped
the company to differentiate itself from competitors and create a strong brand image. The
research's expected outcomes provide a breakdown of how BI, BL, and EM impact consumer
behaviour, purchase decisions, the evolution of traditional marketing in a somewhere to
anywhere context, the significance of utilizing social media/questionnaire data collection, and
the engagement promises that will drive Starbucks sales and profit growth.

From our data we can conclude that there is a significant relationship between customer
experience and recommendation to marketing and promotion. The regression coefficient (R
square) of 0.471 indicates that almost half of the variation in customer experience can be
predicted by the ambiance and atmosphere of Starbucks. This suggests that creating a positive
ambiance and atmosphere in Starbucks can significantly improve the customer experience and
lead to better recommendations and sales. On the other hand, there is no significant relationship
between age and purchasing decision, as indicated by the negative correlation coefficient of -
181. This suggests that age does not have a strong influence on purchasing decisions. The t-
test results suggest that factors such as customer experience, purchasing decision, store
experience, and recommendation have significant relationships. This means that the sample
mean is statistically significantly different from the hypothesized population mean, and we can
reject the null hypothesis.

Overall, the data suggests that creating a positive customer experience through a good
ambiance and atmosphere in Starbucks can lead to better recommendations and sales, while
age may not be a significant factor in purchasing decisions. The success of Starbucks is heavily
influenced by its experience marketing (EM) strategy, which aims to create a memorable and
positive customer experience that leads to brand loyalty and a positive brand image. They
should carefully consider the potential risks and benefits of experience marketing and strike a
balance between creating a compelling customer experience and delivering on customer
expectations. By doing so, companies can create a more inclusive and successful business that
meets the needs of customers and employees alike.

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REFERENCE

• Xu, D. (2021). Cross-cultural Human Resource Management Research by the

Case of Starbucks (China). Academic Journal of Humanities & Social Sciences,
3(9).
• Chang, W.-J. (2020). Experiential marketing, Brand Image and brand loyalty: A
case study of Starbucks. British Food Journal, 123(1), 209–223.
https://doi.org/10.1108/bfj-01-2020-0014
• Datta, V. (2017). A conceptual study on experiential marketing: Importance,
strategic issues and its impact. International Journal of Research -
GRANTHAALAYAH,5(7),26–30.
https://doi.org/10.29121/granthaalayah.v5.i7.2017.2105
• Lenderman, M. (n.d.). An overlooked announcement from Starbucks has major
repercussions for experiential marketing. LinkedIn. Retrieved March
17,2023,from https://www.linkedin.com/pulse/overlooked-announcement-
from-starbuckshas-major-max-lenderman/
• Liu, Y., & Gui, P. (2017). An analysis of the problems and countermeasures in
the application of experiential marketing - A case study of Starbucks.
Proceedings of the 7th International Conference on Education, Management,
Information and Mechanical Engineering (EMIM 2017).
https://doi.org/10.2991/emim-17.2017.76

APPENDIX

Data Set:

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Questionnaire:

Starbucks Experience Marketing & Brand

Loyalty
This research is to understand the relationship between Starbucks experience marketing and
its brand image & brand loyalty, conducted by the students of MBA, Christ (Deemed to be
University) purely for academic purpose.
Note: The data collected shall be considered as the intellectual property of SBM, Christ
(Deemed to be University).

Q1. Name
____________________________

Q2. Age
____________________________

Q3. Gender
• Male
• Female
• Prefer not to say

Q4. Have you ever visited a Starbucks store before?

• Yes
• No

Q5. How often do you visit Starbucks in a month?

• More than once a week
• Once a week
• 2-3 times a month
• Rarely
Q6. How would you rate the overall customer experience at Starbucks?
Poor
1
2
3
4
5
Excellent

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Q7. What was your first impression of Starbucks?
• Positive
• Negative
• Neutral

Q8. How would you rate the overall atmosphere and ambiance of a Starbucks store?
Poor
1
2
3
4
5
Excellent

Q9. How important is the overall experience (e.g. atmosphere, customer service,
music, etc.) in influencing your decision to visit Starbucks?
Not at all important
1
2
3
4
5
Very important

Q10. How often do you participate in Starbucks' loyalty rewards program?

Never
1
2
3
4
5
Every time I visit

Q11. What makes you feel loyal to the Starbucks brand?

• Quality of products
• Customer service
• Atmosphere and ambiance
• Loyalty rewards program

Q12. Do you think Starbucks' marketing campaigns are effective in promoting its
brand and products?
• Yes
• No
• Maybe

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Q13. How did the promotions or events( e.g. free drink promotions, holiday cups,
etc.) impact your decision to visit Starbucks?
Did not impact my decision
1
2
3
4
5
Made me visit more frequently

Q14. Does STARBUCKS brand image tend to make purchase decisions?

Not at all likely
1
2
3
4
5
Extremely likely

Q16. How likely are you to recommend Starbucks to a friend or colleague?

Not at all likely
1
2
3
4
5
Extremely likely

Screenshot of the Questionnaire:

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.

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