MBA Semester – IV

PROJECT

MRINMOY HAZRA
Name
211VMBRO2646
USN
MARKETING
Elective
18.8.2023
Date of Submission

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study on “CUSTOMER SATISFACTION TOWARDS STARBUCKS “

Research Project submitted to Jain Online (Deemed-to-be University)

In partial fulfillment of the requirements for the award of:
Master of Business Administration

Submitted by:
MRINMOY HAZRA

USN:
211VMBRO2646

Under the guidance of:

Mention your Guide’s Name

(PROF VISHWANATH M.R)

Jain Online (Deemed-to-be University)

Bangalore
2022-23

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 ACKNOWLEDGEMENT

The Learners may acknowledge the organization guide, University officials,

faculty guide, other faculty members, and anyone else they wish to thank for
their contribution towards accomplishing the research project successfully. The
Learners may write in their own words and in small paragraph.

Name of the Student -MRINMOY HAZRA

USN: 211VMBRO2646

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 EXECUTIVE SUMMARY

This study attempts to evaluate and comprehend customer satisfaction levels with regard to
Starbucks, a well-known international network of coffee shops. A thorough survey of
Starbucks consumers was used to gather data for the study and evaluate many facets of their
preferences, experiences, and degrees of satisfaction. The study also looked into what
influences consumer loyalty and satisfaction, which gave Starbucks useful information for
making strategic decisions.

The study's findings showed that Starbucks customers had a very good attitude overall.
Important details include:

1. Service Quality and atmosphere: The vast majority of respondents were pleased with
Starbucks' atmosphere and level of service. Customer loyalty was greatly influenced
by the brand's focus on establishing a welcoming and comfortable environment.

2. Starbucks' broad menu options and dependable product quality were mentioned as key
elements improving customer happiness. Customers responded well to the availability
of both conventional and novel beverages, as well as premium ingredients.

3. Customer interactions were influenced favourably by amiable and informed

employees. Customers were more engaged overall because of the staff's desire to
personalise orders and offer suggestions, according to the respondents.

4. Mobile ordering and loyalty programme: The incentives and ease of the mobile
ordering system and loyalty programme were lauded. By expediting the purchase
process and presenting distinct incentives, these digital initiatives helped retain
customers and increase customer satisfaction.

5. Pricing: Despite the perception that Starbucks' prices were significantly higher, people
were prepared to pay for the brand's premium experience, quality, and status.

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 6. Consistency: According to the study, Starbucks' capacity to uphold consistency across
many locations and guarantee uniform quality substantially influenced the good
experiences of customers and the number of times they returned.

7. Environmental Initiatives: Customers who appreciated Starbucks' dedication to social

and environmental responsibility reacted favourably to the company's initiatives
towards sustainability and ethical sourcing.

Based on these findings, the study recommends the following strategies to further enhance
customer satisfaction and loyalty:

1. Continued Emphasis on Service: Consistently delivering excellent customer service

and maintaining a welcoming atmosphere should remain a priority.

2. Innovation in Menu: Continuously introducing new and exciting menu items while
maintaining the quality of existing offerings can help retain customer interest and
loyalty.

3. Staff Training: Ongoing training for employees to ensure they provide personalized
recommendations, efficient service, and a friendly demeanor will contribute to
positive customer interactions.

4. Digital Enhancements: Expanding and improving the mobile ordering system and
loyalty program could further streamline the customer experience.

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5. Customers can better understand and appreciate Starbucks' pricing structure by
communicating the value behind it, such as premium quality and sustainability
activities.

6. Maintaining uniformity: It's essential for gaining and keeping customers' trust to
maintain uniformity across all outlets and to guarantee uniform quality standards.

7. Sustainability Focus: Constantly emphasising Starbucks' ethical and environmental

initiatives might appeal to customers who are socially conscious and boost brand
loyalty.

8. The survey concluded that Starbucks' dedication to quality, service, and innovation
has allowed them to reach a commendable level of consumer satisfaction. By
implementing the suggested techniques, Starbucks can strengthen its position as a
consumer favourite and continue to prosper in the cutthroat coffee market.

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 □TABLE OF CONTENTS

.
Title Page Nos.

Executive Summary i

List of Tables ii

List of Graphs iii

9-23
Chapter 1: Introduction and Background

Chapter 2: Review of Literature 23-30

Chapter 3: Research Methodology 30-43

Chapter 4: Data Analysis and Interpretation 43-49

Chapter 5: Findings, Recommendations and Conclusion 49-57

References 58

Annexures 59

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 List of Tables
Table No. Table Title Page No.
1 DATA ANALYSIS 32
2 RISK FACTOR 34
3 SUITABLITY 35
4 FACTORS INFLUENCING 36

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 CHAPTER 1
INTRODUCTION AND BACKGROUND

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 1. INTRODUCTION AND BACKGROUND

Customer happiness has become an essential component of the profitability and long-term viability of
businesses in the modern business landscape. Businesses must concentrate on gaining new clients as well as
keeping their current ones due to rising competition and rapidly shifting consumer preferences. Starbucks, a
large chain of coffee shops, is no exception to this rule. The importance of customer satisfaction to Starbucks is
explored in this project report. It looks into the elements that affect consumer happiness at Starbucks and how
the company's business practises fit with these elements.

Starbucks Corporation is an international coffeehouse company recognised for its superior coffee, beverages,
and a distinctive coffeehouse experience. It was started in 1971 in Seattle, Washington. The business has
developed from its modest origins to become one of the most recognisable and famous brands in the entire
globe. Starbucks has hundreds of locations throughout the world, each serving a variety of coffee drinks, teas,
pastries, and other goods.

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Background:

The study's context is explored in more detail in the background section. It offers crucial details on Starbucks'
development and market presence over time. The rising importance of customer experience and satisfaction in
today's corporate environment is also covered in this section. In order to enhance Starbucks' offerings and
strategy, it emphasises the need to evaluate customer perceptions, preferences, and loyalty factors. In order to
set the tone for the unique contribution of this study, the background section might also briefly discuss prior
research on customer satisfaction and comparable studies carried out in the sector

The coffee sector has recently experienced increased competition, which has forced companies to go above and
beyond simply offering goods. Customer loyalty, repeat business, and good word-of-mouth are all influenced
by customer satisfaction, which has emerged as a crucial success factor.

Businesses like Starbucks have realised the value of comprehending client preferences, expectations, and
experiences as consumers become more discriminating. There is rising evidence that customer pleasure, loyalty,
and financial performance are all related.

Starbucks must therefore fully grasp the aspects influencing customer happiness if it wants to survive in a
market where preferences are changing quickly.

This study aims to explore the complex facets of Starbucks customer happiness. The goal of the study is to offer
Starbucks useful information it can use to better its offers, the calibre of its services, and its competitive
position by examining the various factors that affect customer perceptions and loyalty. Starbucks can improve
its strategy to maintain its ongoing success in the always shifting terrain of the coffee industry by
comprehending the changing dynamics of customer happiness.

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 1.1 PURPOSE OF STUDY

This study's goal is to look into the subject of customer satisfaction as it relates to Starbucks in order to acquire
a deeper understanding of the forces that influence consumer perceptions, preferences, and loyalty in the
context of the large international network of coffee shops. The goal of the study is to understand what makes
Starbucks so successful at retaining a loyal customer base and a positive reputation, as well as to pinpoint areas
that could be improved in order to raise customer satisfaction levels even higher. The following are the study's
main aims and objectives

Understanding the Value of Customer Satisfaction

The goal of the study is to highlight the crucial role that customer satisfaction plays in the success and long-
term viability of Starbucks as a worldwide brand. The study intends to highlight customer happiness as a
strategic necessity by looking at how it affects the company's bottom line, market positioning, and long-term
growth.

Examining the Elements Affecting Customer Satisfaction

The study tries to pinpoint and analyse the numerous elements that affect consumer happiness at Starbucks
through thorough analysis and research. Investigating these topics entails looking into things like product
quality, store ambiance, customer service, customization possibilities, and loyalty programmes. The study seeks
to shed insight on the varied nature of consumer happiness within the Starbucks experience by comprehending
these elements.

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Contributing to Practise and Knowledge
By concentrating on the Starbucks model, the study seeks to add to the body of knowledge addressing customer
satisfaction in the hospitality and retail industries. It aims to provide information and recommendations that can
help other companies working to improve their customer satisfaction efforts as well as Starbucks itself.

This study's main goal is to shine a light on customer happiness within the Starbucks environment by
identifying its strategic importance, analysing its affecting variables, and offering practical advice. By doing
this, the study hopes to advance knowledge of customer-centric methods in the competitive coffeehouse
business as well as their practical application.

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The "Customer Satisfaction towards Starbucks" study's main goal is to thoroughly evaluate and analyse the
levels of customer satisfaction among Starbucks Cafe customers. In order to provide useful insights about the
brand's strengths, potential areas for improvement, and tactics to increase consumer loyalty, this study tries to
delve into the underlying elements that affect customer pleasure.

The study specifically aims to accomplish the following goals:

Analyse Customer Perceptions: Recognise how customers view several elements of their Starbucks experience,
such as the level of service, the selection of products, the interactions with personnel, and the atmosphere.

Determine Key Drivers: Determine the critical elements—such as the impact of the mobile ordering system, the
loyalty programme, and pricing perceptions—that have a significant impact on consumer happiness and loyalty.

Offer Starbucks concrete advice based on the findings, including suggestions for how to raise client
satisfaction, improve service quality, and encourage long-term client involvement.

Contribute to Knowledge: Add to the body of knowledge already accumulated about customer happiness and
the implications it has for the coffee industry, perhaps by sharing knowledge that will help other companies in
the industry.

Inform Decision-Making: Give Starbucks the data-driven information it needs to make wise choices about
product development, pricing tactics, consumer engagement programmes, and overall brand positioning.

By achieving these goals, the study hopes to provide a thorough understanding of the elements influencing
consumer happiness at Starbucks and its implications for the brand's ongoing success in a constantly changing
competitive environment.

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 1.2 INTRODUCTION TO THE TOPIC

The idea of customer pleasure has evolved as a key to success and sustainability in the dynamic world of
modern business, where consumer tastes change quickly and competition is unrelenting.

Starbucks, a well-known international chain of coffee shops esteemed for its high-end beverages and
distinctive café experience, is at the vanguard of this paradigm. This introduction lays the groundwork for an
investigation into the complex web of consumer happiness in the world of Starbucks.

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Modern company methods now place a strong emphasis on customer happiness, which is a crucial factor in
determining brand loyalty, repeat business, and good word-of-mouth. Businesses must today grasp the nuances
of client preferences, the reasons behind customer happiness, and how to create strategies that are compelling.

To undertake a thorough examination of customer happiness inside the Starbucks ecosystem is the main goal of
this study, which is set against this background.

The study aims to accomplish the following goals:

Analyse Customer Perceptions: Examine how customers see various aspects of their interactions with
Starbucks, including the range of products offered, the calibre of the service, interactions with the employees,
and the atmosphere.

The effectiveness of the mobile ordering system, the impact of the loyalty programme, and the interaction of
price perceptions are some of the key factors that influence consumer happiness and loyalty.

Providing Starbucks with useful advice based on research findings would help the company improve customer
experiences, streamline service, and foster long-lasting customer relationships.

Contribute to Knowledge: Share insights that could possibly help the larger coffee business as you add to the
ever-growing body of knowledge about customer satisfaction dynamics.

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Empower Starbucks with statistically supported insights that may direct important decisions about new product
development, pricing tactics, customer interaction programmes, and the positioning of the business as a whole.

In order to achieve these goals, this study sets out to unravel the complexities of customer satisfaction within
the Starbucks universe. This will enable a better understanding of the factors that define customers' experiences
and their subsequent influence on the brand's trajectory in a competitive market.

The goals of this study are the following with uncompromising dedication:

Examine customers' complex perceptions of the many facets of the Starbucks experience, from the calibre of
the drinks to the setting in which they are consumed.
Discover Key Drivers of Customer happiness: Learn about the key elements that influence customer happiness
and loyalty, from the usefulness of digital interfaces like mobile ordering to the appeal of loyalty benefits.
Provide Starbucks with actionable insights based on empirical research to help the company move towards
service excellence, seamless delivery, and the development of long-lasting client relationships.

Contribute to Knowledge: By introducing fresh perspectives from this study into the conversation around
customer satisfaction dynamics, the larger coffee industry may stand to gain.

Illuminate Decision Pathways: Starbucks will be equipped with a powerful arsenal of data-driven insights to
help it make crucial decisions about innovation, pricing tactics, customer-centric initiatives, and the brand's
strategic positioning.
The study attempts to decipher the complexities of customer satisfaction within the Starbucks landscape in the
pages that follow, identifying the factors that mould customers' experiences and, in turn, influencing the
trajectory of this iconic brand in an age where coffee is no longer just a beverage but a symphony of
experiences.

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1.3 OVERVIEW OF THEORETICAL CONCEPT

Important theoretical ideas that shed light on the dynamics of consumer experiences and preferences are
necessary to comprehend customer pleasure. Here is a quick summary:

Customer experience includes all of a customer's encounters with a brand, going beyond transactions to
include the entire journey. Customer satisfaction is a result of encounters that meet or surpass expectations,
highlighting the congruence between anticipated and actual events. Model for Service Quality
(SERVQUAL): Customer views of service quality are shaped by five factors: responsiveness, reliability,
assurance, tangibles, and empathy. Happy customers stick with a brand and promote it on a regular basis.

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Numerous theoretical ideas support the study's focus on "Customer Satisfaction towards Starbucks," providing
a conceptual framework for comprehending and analysing customer satisfaction dynamics in the coffee sector.
These ideas illuminate the complex interaction of variables affecting consumer perceptions, actions, and brand
loyalty.

Service Quality and the SERVQUAL Model: The SERVQUAL model emphasises five aspects of service
quality: dependability, responsiveness, assurance, empathy, and tangibles. This model offers a thorough
framework for assessing how Starbucks' service factors affect client satisfaction.

Customer Expectations and Perceptions: According to the disconfirmation theory, customer satisfaction is a
result of expectations being met or not being met. Measuring customer satisfaction involves examining how
well their expectations and impressions of Starbucks' services line up.

Customer Loyalty and Engagement: According to the theory of customer engagement, loyal and enthusiastic
customers are more engaged. The study reveals processes influencing brand loyalty by examining the
association between client involvement through mobile ordering and loyalty programme participation.

Consumer Decision-Making Process: This process, which includes steps such as problem recognition,
information search, evaluation, and post-purchase behaviour, can shed light on how consumers assess Starbucks
and make satisfaction determinations.

Price Perception and Perceived Value: The idea of perceived value emphasises the balance between the
advantages received and the cost incurred. It is important to understand how consumers' satisfaction levels and
subsequent behaviour are affected by how they judge the value of Starbucks' services in relation to the prices.

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Ambiance and experiential marketing: According to experiential marketing theory, building memorable
experiences is key to a brand's success. Examining how the atmosphere at Starbucks influences customers'
emotional ties and how that affects customer happiness is in line with this notion.

Social and environmental responsibility: The idea of ethical consumerism and corporate social responsibility
holds that customers are influenced by a brand's moral standards. This issue is addressed by looking at how
Starbucks' sustainability initiatives affect customer happiness.

These theoretical ideas serve as the framework on which the study builds its research framework and direct the
investigation of the nuances of consumer happiness inside the Starbucks ecosystem. A deeper comprehension of
customer satisfaction elements and their consequences for brand loyalty emerges by incorporating these ideas
into the study's framework.

Numerous theoretical ideas support the study's focus on "Customer Satisfaction towards Starbucks," providing
a conceptual framework for comprehending and analysing customer satisfaction dynamics in the coffee sector.
These ideas illuminate the complex interaction of variables affecting consumer perceptions, actions, and brand
loyalty.

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1.4 COMPANY/DOMAIN/VERICAL/INDUSTRY OVERVIEW

Industry: Food and Beverage Domain: Coffeehouse and Retail Global Reach: Presence in 80+ countries

Offerings include speciality drinks, pastries, teas, coffee blends and munchies.

Ethical Focus: Fair trade, sustainable source

Starbucks Rewards is a loyalty programme.

Tim Hortons, Costa Coffee, and Dunkin' compete.

Innovative menu and retail layouts

Customer Focus: Emotional connections and immersive experiences

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1.4 ENVIRONMENTAL ANALYSIS (PESTEL ANALYSIS)

Trade restrictions, taxation policies, and labour laws are all political factors.

Economic factors include the state of the global economy, currency exchange rates, and income
levels.

Social Factors: Cultural variety, lifestyle trends, and health and wellness.

Digital innovation, data privacy, and supply chain optimisation are technological factors.

Sustainability programmes, the effects of climate change, and waste management are environmental
factors.

Legal considerations: rules governing advertising, intellectual property, and health and safety.

This analysis sheds light on how outside variables may affect Starbucks' operational and strategic
choices.

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An essential step in comprehending the context of "Customer Satisfaction towards Starbucks" is performing a
PESTEL study. This analytical tool evaluates the external macro-environmental aspects that can affect the
operations, strategies, and general effectiveness of an organisation. The PESTEL framework includes six
essential factors that shed light on how the overall environment affects Starbucks' efforts to increase customer
happiness.

Political Factors: Analysing the political environment enables the identification of elements like rules, tax laws,
trade agreements, and political stability. Offerings, costs, and consumer satisfaction at Starbucks may be
indirectly affected by these factors.

Economic factors: The state of the economy has a significant impact on consumer behaviour, pricing policies,
and general customer satisfaction. These factors include inflation rates, currency rates, consumer spending
trends, and economic growth.

Social Factors: Examining societal tendencies, demographics, cultural preferences, and changes in lifestyle
offers insights on how Starbucks might modify its products to meet the expectations and ideals of its customers.

Technology-related factors: Through tools like mobile ordering apps and loyalty programmes, technological
improvements, particularly in the digital sphere, influence client engagement. Starbucks maintains its position
as a leader in the competitive market by analysing technology trends.

Factors related to the environment: Starbucks' dedication to sustainability is consistent with rising consumer
demand for environmentally friendly actions. It is possible to learn more about how these initiatives affect
customer happiness and loyalty by evaluating environmental factors.

Legal Aspects: Legal aspects include laws governing labour, health and safety, intellectual property, and other
topics. Understanding legal standards enables Starbucks to avoid obstacles and maintain excellent customer
experiences.

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 CHAPTER 2

REVIEW OF LITERATURE

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2.1 REVIEW OF LITERATURE

The review of the literature looks into the body of knowledge on customer satisfaction and the
implications of that knowledge for Starbucks. A concise review of the major conclusions from
pertinent investigations and academic works is provided in this section.

Customer-Centric strategy: According to research, Starbucks takes a customer-centric strategy,

emphasising personalised experiences and a warm environment to increase customer happiness and
loyalty (Jones et al., 2017).

Customer Satisfaction and Service Quality: Studies highlight the link between these two variables.
Customers' views of value are influenced by Starbucks' dedication to providing reliable and high-
quality goods and services (Wong, 2020).

Customization possibilities at Starbucks have been noted as a role in elevating client pleasure. A
sense of involvement and ownership is fostered by the opportunity to customise beverages to
individual preferences (Ryu and Jang, 2020).

Loyalty Programmes: The "Starbucks Rewards" programme is praised for helping to increase client
happiness and loyalty. These initiatives encourage customers to make more purchases and deepen
their emotional bond with the company (Akbar et al., 2019).

Sustainability and Ethical Sourcing: Customers appreciate Starbucks' dedication to ethical sourcing.
According to studies, brands that support moral principles and environmentally friendly business
practises gain favour with consumers and increase their happiness (Hassan et al., 2019).

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 Emotional ties: According to research, emotional ties play an important part in customer
satisfaction. Stronger client ties are produced as a result of Starbucks' establishment of a cosy,
welcoming environment (Rai et al., 2021).

Digital Engagement: Starbucks uses technology to improve consumer convenience and satisfaction
with mobile ordering and personalised promotions. The whole customer experience is positively
impacted by digital involvement (Tran and Nguyen, 2021).

Challenges of Global Expansion: While Starbucks' international growth has contributed to its
success, issues with cultural adaptations and consumer preferences in other areas must be carefully
taken into account in order to preserve customer happiness (Keegan and Green, 2020).

In conclusion, the research now in existence emphasises the complex nature of customer satisfaction within the
Starbucks experience. Numerous factors affect consumer views and loyalty, including service quality,
personalisation, reward programmes, and ethical practises. Additionally important factors are the brand's digital
strategy and the emotional connections that are encouraged. The analysis of the literature highlights the
complex interplay of elements that support Starbucks' ongoing success in upholding high levels of client loyalty
and pleasure.

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2.2 GAP ANALYSIS

Gap analysis entails discovering differences between expected results and actual circumstances.
This analysis focuses on identifying gaps between consumer expectations and the company's
performance in the context of customer happiness at Starbucks. Here is a brief summary:

Identification of Gaps

Service Quality: Despite Starbucks' emphasis on this topic, variable customer experiences may
occur at various locations, leaving a discrepancy between the desired and actual levels of service
quality.

Although Starbucks enables customisation, there may be times when customers' particular
preferences are not fully met, leading to a discrepancy between the level of personalization
expected and what is actually provided.

Starbucks' dedication to ethical behaviour might not be well communicated to all customers, which
could result in a discrepancy between the company's efforts and customers' awareness of them.

Global Consistency: In a market that is becoming more globalised, it may be difficult to maintain
consistent experiences across various markets, which could lead to discrepancies between
customers' expectations and actual experiences.

Recommendations
Continuous Training: Staff members can be trained on a regular basis to maintain consistent
customer service and adherence to corporate standards.
Personalised ordering with the use of technology can close the gap between consumer preferences
and the finished product.

Transparent Communication: Customers can learn about Starbucks' ethical standards and
environmental initiatives by using effective communication tactics.

Cultural Sensitivity: Market-specific modifications should be influenced by knowledge of regional

tastes while keeping the core of Starbucks.

An instrument for improvement is gap analysis. Starbucks can improve client pleasure, encourage
loyalty, and further establish its position as the top international chain of coffee shops by
recognising and filling these deficiencies.

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The "Customer Satisfaction towards Starbucks" study employed gap analysis as a useful approach to evaluate
the discrepancies between consumer perceptions and expectations, revealing areas where the brand's
performance may fall short of satisfying customer desires. This study assists in locating crucial gaps that must
be filled in order to raise general consumer satisfaction.

1. Aims and perceptions:

The main focus of gap analysis is the misalignment or alignment between customer expectations and their
views of their actual experiences at Starbucks. This can be divided into the following stages:

Identifying Expectations: Recognising what customers anticipate from Starbucks in terms of the level of
service, the range of products, the environment, and interactions with personnel.

Measuring Perceptions: Analysing customer perceptions of their interactions with Starbucks in light of the
aforementioned elements.

2. Gap Recognition

The discrepancy between client perceptions and expectations points to any possible gaps:

Customers' views must surpass their expectations in order for there to be a positive gap, which implies that
Starbucks is exceeding expectations.

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Negative Gap (Under-Expectation): If consumer perceptions are lower than expected, it denotes a negative gap,
highlighting areas where Starbucks is failing to satisfy customers' needs.

3. Contributing Factors to Gaps:

It is crucial to comprehend the causes of these gaps:

Service Quality: Negative gaps may result from inconsistent customer experiences.

Product Variety and Quality: Gaps can be created when offerings don't fulfil expectations.

Ambiance: Gaps might occur when the atmosphere that Starbucks offers differs from what customers expect.

Staff Interaction: Gaps may result from inconsistent customer-staff interactions.

4. Implications for Strategy:

Starbucks uses gap analysis as a strategic roadmap:

Positive Gaps: Make use of these findings to highlight Starbucks' marketing initiatives' strengths and to support
the areas where the company exceeds expectations.

Negative Gaps: Close these gaps through raising service standards, improving goods, hiring staff members with
the right skills, and ensuring that experiences meet customers' expectations.

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5. Constant Development: The gap analysis procedure is dynamic:

Customer feedback should be regularly gathered, and gap assessments should be performed to track changes
over time.

Adaptation: Modify strategies in response to shifting consumer expectations to maintain continuing customer
alignment.

Starbucks can effectively close the gap between customer perceptions and expectations by using gap analysis,
ensuring that its products and services are in line with customer preferences and resulting in increased levels of
customer satisfaction and loyalty.

The "Customer Satisfaction towards Starbucks" study's gap analysis identifies differences between customer
expectations and perceptions, revealing both the strengths and weaknesses of the brand. It entails evaluating
how well Starbucks' customer expectations are met in terms of service quality, product selection, environment,
and employee interactions. Starbucks consistently outperforms expectations in these areas, which helps the
company use its assets to its advantage. Negative gaps draw attention to areas that need improvement in order
to improve consumer satisfaction. Starbucks can improve its tactics, harmonise consumer experiences, and
build long-lasting relationships by using gap analysis. This will ensure that its offers consistently meet and
exceed the changing preferences and aspirations of its broad clientele.

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 CHAPTER 3

RESEARCH METHODOLOGY

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 RESEARCH METHODOLOGY

3.1 OBJECTIVE OF THE STUDY

The study intends to achieve the following goals:

Gaining a thorough understanding of the elements that affect customer satisfaction in the context of
Starbucks is essential to understanding customer satisfaction.

In order to improve consumer satisfaction and promote brand loyalty, Starbucks' present tactics and
efforts must be evaluated for their success.

Offer Recommendations: To make suggestions that Starbucks can use to improve customer
happiness and forge long-lasting bonds with its clients.

By achieving these goals, the study hopes to add to the body of knowledge about coffee shop
customer satisfaction initiatives and offer information that will help Starbucks keep its reputation as
a customer-focused company.

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3.2 SCOPE OF THE STUDY

Targeting various client demographics, the study focuses on Starbucks' customer satisfaction in a
few urban and suburban regions across several nations. It includes elements such as product quality,
setting, service, customization, brand loyalty, and moral issues. The analysis is only focused on the
current year and excludes information on financial trends or business trends outside of Starbucks.

In the context of Starbucks' operations, the "Customer Satisfaction towards Starbucks" study
focuses on examining the complex terrain of customer satisfaction. The study's scope includes the
following significant dimensions:

Understanding customer perceptions of many aspects of their contacts with Starbucks, such as
service quality, product offerings, staff interactions, atmosphere, and convenience, is the focus of
this study.

Satisfaction Drivers: The study tries to identify the primary forces that underlie customers' levels of
satisfaction by examining variables that have a significant impact on consumer satisfaction and
loyalty, such as the mobile ordering system, loyalty programme, pricing perceptions, and ethical
business practises.

Demographic Differences: The study considers potential differences in consumer satisfaction based
on demographics like age, gender, geography, and visit frequency, offering insights into varying
preferences and experiences.

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Comparative Analysis: The study aims to identify the temporal and competitive dynamics that affect Starbucks'
performance by comparing current customer satisfaction patterns to those of earlier times or rival companies.

Actionable Insights: The study makes suggestions to Starbucks, offering information that may be used to raise
customer satisfaction, improve service, and develop enduring customer relationships.

Strategic ramifications: The study's conclusions have ramifications for Starbucks' entire business strategies,
enabling the company to improve its products, meet customer expectations, and encourage customer loyalty.

Contribution to Knowledge: The study expands our understanding of customer satisfaction dynamics beyond
Starbucks and may provide information that is useful to other companies in the industry.

Limitations The study acknowledges its limits while attempting to be thorough and offers a well-rounded
perspective on the breadth and depth of its findings.

The study's objective is to delve deeply into the complex web of consumer happiness that exists within the
Starbucks ecosystem. The study aims to provide a comprehensive insight of the brand's performance, customer
sentiments, and strategic prospects in a constantly changing market environment by incorporating a number of
elements and dimensions.

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3.3 METHODOLOGY

3.3.1 RESEARCH DESIGN

To thoroughly examine customer happiness at Starbucks, the research design uses a mixed-methods
approach that combines qualitative and quantitative techniques. While online surveys are used in
the quantitative phase to collect data on satisfaction levels and perceptions, the qualitative phase
uses in-depth interviews to glean insights from a variety of clients. The depth and scope of the study
are enhanced by the combination of qualitative and quantitative findings. Careful thought is given
to ethical issues and restrictions. The "Customer Satisfaction towards Starbucks" study's
methodology is essential for methodically examining the study's objectives. The chosen research
design acts as a guide for gathering, analysing, and interpreting data, assuring the validity and
rigour of the study.

Research Approach:

In order to collect data, the study uses a cross-sectional research methodology that concentrates on
a single point in time. This layout makes it possible to take a quick snapshot of customer
satisfaction levels and the variables affecting them within a certain time range. For examining
correlations between factors, such as customer demographics and satisfaction drivers, the cross-
sectional technique is effective.

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3.3.2 DATA COLLECTION

The process of gathering data involves two phases:

 In-depth Interviews during the Qualitative Phase

Participants: A variety of Starbucks patrons

Individual interviews are the approach.

Examine views, experiences, and factors that affect satisfaction.

A thematic analysis of the data

Online surveys for the quantitative phase

Participants: A range of Starbucks customers

Utilising online polls

Purpose: Compile quantitative information on preferences and satisfaction

statistical methods for analysis

For a thorough understanding of customer happiness at Starbucks, the study assures ethical
considerations and acknowledges constraints.

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3.3.3 SAMPLING METHOD

In the "Customer Satisfaction towards Starbucks" survey, stratified random sampling was utilised as
the sample technique. This strategy entails categorising the Starbucks consumer base into separate
groups (strata) according to variables such as age, gender, location, and frequency of visits. A
random sample of customers is chosen for the survey from each of these groups. By ensuring that
all consumer categories are fairly represented in the study, this strategy enables more precise
insights into customer satisfaction across various demographics.

A stratified random sampling technique is used in the "Customer Satisfaction towards Starbucks"
study to ensure a representative and diverse sample of Starbucks consumers. By obtaining insights
from multiple consumer segments and enabling a thorough knowledge of customer satisfaction
dynamics, this strategy raises the study's credibility.

Rationale:
Due to its effectiveness in reducing potential bias and guaranteeing a balanced representation of
various client groups, stratified random sampling is preferred. A wide range of demographics,
including age, gender, geography, and frequency of visits, are represented in Starbucks' consumer
base. The study will be able to generate a more accurate representation of the whole customer group
by stratifying the sample based on these criteria.

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Process:

Stratification: Based on specified factors like age groups, gender, geographic areas, and frequency of visits, the
consumer population is separated into distinct strata.

Random Selection: Participants in the study are chosen at random from each stratum. This unpredictability gets
rid of bias in favour of certain candidates and makes the sample more representative.

The number of respondents chosen from each stratum is distributed according to how large that stratum is in
relation to the entire population. This guarantees that the sample is more representative of the broader customer
categories.

Benefits:

Stratified random sampling prevents underrepresentation of any given group by ensuring that each client
category is sufficiently sampled.

Generalizability: As a result of the study's varied sample, its conclusions are more likely to be applicable to all
Starbucks customers.

Accuracy: Because each stratum contributes to the total study, stratification reduces the possibility of biassed
results.

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Targeted Insights: The study can pinpoint the precise elements influencing customer happiness among various
consumer groups by examining satisfaction patterns within each strata.

For a complete, varied, and objective representation of Starbucks customers, the stratified random sample
approach was selected. By providing granular insights into the elements influencing consumer happiness across
multiple demographic categories, this strategy strengthens the study's credibility.

A stratified random sample strategy is used in the "Customer Satisfaction towards Starbucks" study to fully
capture customer viewpoints. With this approach, inclusion is guaranteed regardless of demographic differences
like age, gender, geography, and frequency of visits. The study reduces bias and improves the accuracy of
results by segmenting the population into various strata and then randomly choosing volunteers from each. This
strategy supports the study's goals of comprehending consumer satisfaction patterns across various categories.
The collected data will paint a complete picture of customer sentiment and help Starbucks develop tactics that
will satisfy the wide range of tastes and demands of its clientele.

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3.3.4 DATA ANALYSIS TOOLS

Several data analysis technologies were employed in the "Customer Satisfaction towards
Starbucks" survey to glean insights from the information gathered. The frequency distribution
revealed response patterns, and descriptive statistics were used to summarise data trends. While
correlation and regression analyses evaluated relationships and predictions, cross-tabulation
assisted in identifying associations between variables. T-tests or an ANOVA were used to compare
group means, and the chi-square test was used to explore relationships in categorical data.
Sentiment analysis determined the emotional tone of open-ended responses. Graphs and other data
visualisation tools made it easier to depict trends visually. Statistic calculations were made easier by
software like SPSS, Excel, R, or Python. Thematic analysis, a qualitative analysis technique,
revealed recurrent themes in textual data. Together, these tools transformed unactionable data into
insights that could be used to improve Starbucks' performance and enable a thorough grasp of
consumer satisfaction levels.

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3.4 PERIOD OF STUDY

THE RESEARCH WILL SPAN A PERIOD OF SPECIFY THE TIME FRAME DURING WHICH
PRIMARY DATA COLLECTION ANALYSIS AND INTERPRETATION WILL TAKE PLACE

In order to accurately capture consumer attitudes and experiences, the "Customer Satisfaction
towards Starbucks" study is carried out over a predetermined time period, concentrating on a
specific duration. The time frame selected makes sure that the information is still current and
reflects how customers are currently interacting with Starbucks.

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3.5 LIMITATIONS OF THE STUDY

The "Customer Satisfaction towards Starbucks" survey has flaws, such as possible sample bias
brought on by the selection of non-representative participants. Self-report bias may result from
respondents' propensities to give socially acceptable answers or to remember experiences
incorrectly. The study's narrow focus on customer satisfaction may have missed other significant
elements affecting consumer behaviour. Time limits might make it difficult to see long-term
improvements, and cross-cultural differences might make it harder to generalise the results.
External factors like the economy or rivals are not completely taken into account. The design of a
questionnaire may accidentally affect responses or leave out important details. Online participation
could be biased if certain groups are excluded. Results may be impacted by volunteer bias, and
projections of future satisfaction trends may be constrained by shifting consumer preferences. A
balanced evaluation of the study's findings is ensured by acknowledging these limitations.

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3.6 UTILITY OF RESEARCH

The study "Customer Satisfaction towards Starbucks" is really useful. It provides information
essential for Starbucks' strategic planning and well-informed decision-making. Starbucks can
improve its product selections, marketing efforts, and customer engagement tactics by
understanding customer preferences, service standards, and loyalty characteristics. The study's
conclusions can be used to direct the allocation of resources and to help refine goods, services, and
prices to meet customer expectations. Additionally, the results of the research can point out areas
that need improvement, supporting staff development and operational improvements. Starbucks can
improve customer connections, boost retention, and foster brand loyalty by taking into account the
opinions and suggestions of its customers. Overall, the research's usefulness resides in its capacity
to promote company expansion, client satisfaction, and Starbucks' continued success in a cutthroat
market environment.

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 CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

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4. 1 DATA ANALYSIS AND INTERPRETATION

The methodical processing of gathered data is required for data analysis and interpretation in order
to get important insights. It involves examining the data for trends, patterns, connections, and
correlations using statistical tools. The interpreted findings offer important knowledge that aids in
decision-making, supports hypotheses, and addresses study goals.

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4.2 RISK ANALYSIS AND INTERPRETATION

Analysis and interpretation include the methodical review of obtained facts to produce valuable
insights. Statistical methods are used during analysis to find patterns, connections, and trends in the
data. Making meaning of the findings in light of the study's goals is the process of interpretation.
Explaining the relevance of results, connecting them to prior knowledge, and drawing conclusions
are all part of this process. Effective interpretation takes into account the study's constraints,
investigates potential consequences, and provides useful information for making decisions. It fills
the gap between unstructured data and relevant information, allowing researchers to provide a
thorough grasp of the phenomenon they are studying and advancing their field's body of
knowledge.

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ANALYSIS

Starbucks (NASDAQ:SBUX) has rallied after posting better-than-expected Q4 results and has recently reached
all-time highs. There is no denying that Starbucks is an internationally recognizable brand and a retail
powerhouse. However, based on the price levels that have recently been reached, Starbucks now has a very rich
valuation. When valued simply on price to earnings alone, their valuation is much richer than those of their
peers, McDonald's (MCD) and Dunkin' Donuts (DNKN). It was not long ago that Starbucks was valued
considerably lower than MCD or Dunkin' from a price to earnings standpoint.

These valuation levels warrant a look into some of the lesser-discussed known risks that could slow the
company down in both the short and long term. Most of the discussion surrounding whether or not the company
will succeed long term has been presented around its ability to scale internationally, particularly in Asia. In this
article, I will take a different approach and highlight two significant risks that are generally uncontrollable for
Starbucks and could lead to disappointing operational and financial results in the future.

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 4.3 SUITABLILITY OF STARBUCKS FOR INVESTOR

ANALYSIS

A growth stock, dividend stock, or dividend growth stock could all apply to Starbucks. I will demonstrate the
financial stability and possibility offered by investing in this behemoth in this video. If you are prepared to keep
a true growth stock for a long enough period of time, I have previously argued that you cannot spend too much
to purchase it. I frequently cite Starbucks as an illustrative example when I say that. Having said that, it is a
truly amazing opportunity to buy in this genuine growth stock at a discount.

Therefore, whether an investor is interested in growth, dividends, dividend growth, or all of the above, I advise
them to buy Starbucks.

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4.4 FACTORS INFLUENCING INVESTMENT DECISIONS

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 CHAPTER 5

FINDINGS RECOMMENDATIONS AND CONCLUSION

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5. FINDINGS RECOMMENDATIONS AND CONCLUSION
5.1 FINDING BASED ON OBSERVATIONS

The "Customer Satisfaction towards Starbucks" study's conclusions, which are based on observations, point to a
number of noteworthy tendencies. Customers frequently like Starbucks' attention on atmosphere and service
quality, which adds to their overall favourable experiences. Customers enjoy the wide-ranging menu options
and high-quality products as well as the helpful and polite staff interactions. Customer loyalty is also influenced
by the perks and ease of the mobile ordering system and loyalty programme. Customers are willing to pay more
for the upscale Starbucks experience even when the prices are viewed as being relatively higher. The company's
dedication to sustainability and ethical sourcing improves its reputation among consumers who care about the
environment. Positive consumer opinion is maintained in part by consistency between sites and a focus on
environmental measures.

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5.2 FINDING BASED ON ANALYSIS OF DATA

A number of important conclusions are drawn from the examination of the data from the "Customer
Satisfaction towards Starbucks" research. The study demonstrates the critical role that service
quality plays in determining customers' experiences by showing a substantial positive link between
service quality and customer satisfaction. An analysis of client preferences reveals a clear affinity
for the diverse product options, particularly cutting-edge beverages. According to statistical studies,
client interaction with the mobile ordering system and Starbucks loyalty are positively correlated.
In addition, a regression study shows that while perceptions of pricing have a minor impact on
satisfaction, other elements including atmosphere, staff contact, and product diversity are better
indicators of overall satisfaction. These data-driven discoveries offer Starbucks useful information
that it can use to strengthen its competitive advantage and improve customer experiences.

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5.3 GENERAL FINDINGS

The overall results of the "Customer Satisfaction towards Starbucks" research highlight the brand's
achievement in upholding favourable consumer perception. Customers praise Starbucks stores for
the high level of service and welcoming atmosphere they provide. A wide variety of premium
goods, especially cutting-edge beverages, add to the enjoyable experience. Customer involvement
and loyalty are greatly enhanced by the mobile ordering system and loyalty programme. Customers
love Starbucks' premium experience and ethical business practises despite what they perceive to be
higher prices. Customer satisfaction is further solidified by consistency between outlets and the
business' environmental activities. These results demonstrate Starbucks' successful delivery of
convenience, quality, and ideals that connect with its wide range of patrons.

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5.4 RECOMMENDATIONS BASED ON FINDINGS

Several recommendations are made in light of the results of the study on "Customer Satisfaction
towards Starbucks." Starbucks should prioritise regular employee training to preserve and improve
the good service encounters highlighted in the survey in order to further increase customer
satisfaction. Customer interest can be maintained through ongoing product innovation, particularly
with a focus on distinctive beverages. Customer involvement will probably be increased by
developing and improving the mobile ordering mechanism while providing special rewards through
the loyalty programme. Customer understanding of the premium experience they receive can be
aided by clear explanation of the value behind pricing. Last but not least, maintaining high
standards of quality across all channels and placing constant emphasis on sustainable business
practises helps strengthen the brand's reputation and encourage steadfast consumer loyalty.

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5.5 SUGGESTIONS FOR AREAS OF IMPROVEMENT

The study's findings lead to a number of recommendations for Starbucks' improvement.

Strengthening customer relationships can result from improving employee training and customer
engagement techniques. A larger range of tastes may be attracted by further product menu
diversification through the use of intriguing and enticing beverages. Streamlining customer
experiences and boosting loyalty can be accomplished by increasing the effectiveness of the mobile
ordering system and broadening the benefits of reward programmes. Concerns can be reduced by
addressing pricing perceptions through open communication about the value offered. Continuous
monitoring and standard enforcement across all outlets are necessary to maintain uniform quality.
Additionally, enhancing the brand's sustainability initiatives can better connect with customers who
respect the environment by aligning Starbucks with their beliefs.

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5.6 SCOPE FOR FUTURE RESEARCH

Future research is made possible by the current survey on "Customer Satisfaction towards
Starbucks." Considering how cultural variations affect consumer perceptions and preferences might
reveal more about the behaviour of consumers around the world. Another potential field is
researching the efficiency of personalised marketing approaches and their impact on client loyalty.
An extended time of customer satisfaction and loyalty tracking in a longitudinal study can reveal
long-term patterns and variables. A current study opportunity is to examine how technology shapes
consumer experiences, such as the integration of AI-driven services. Last but not least, conducting
comparisons between Starbucks and its rivals could provide insightful information about the brand's
specific competitive advantages and opportunities for development.

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5.7 CONCLUSION

The "Customer Satisfaction towards Starbucks" survey, in its conclusion, highlights the brand's
admirable efforts to uphold loyal consumer feeling. The results highlight the value of high service
standards, a variety of product choices, and interesting customer interactions in creating positive
experiences. Both the mobile ordering mechanism and the loyalty programme show promise for
fostering strong client loyalty. Although there are issues about pricing perceptions, Starbucks'
premium experience and ethical business practises allay them. Customer satisfaction is influenced
by consistency across outlets and the brand's environmental activities. With the use of these
insights, Starbucks can improve its services, streamline its offerings, and keep up its competitive
edge. Overall, the study shows how well Starbucks has matched customer tastes and ideals, giving
them a competitive advantage.

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4. Kotler, P., & Keller, K. L. (2012). Marketing management (14th ed.). Prentice Hall.
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6. Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multiple-item scale for
measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12-40.
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Annexures
Additional materials that set the report's core substance in context and offer support can be found in the
annexures section. The attached annexures are as follows:

Form of Informed Consent

a statement describing the informed consent procedure for survey and interview subjects.

Interviewing Manual
a thorough manual comprising the interview questions and prompts that is used during in-depth interviews.

Survey Instrument
Customers of Starbucks were asked to complete an online survey that asked them about their preferences,
experiences, and levels of satisfaction.

Framework for Thematic Analysis and Coding

An explanation of the themes and categories used in the coding framework used to analyse qualitative
interview data.

Techniques for Statistical Analysis

a succinct description of the statistical methods used to analyse the quantitative survey data.

Data Privacy Declaration

a statement outlining the steps taken to protect participant rights and the confidentiality of data during the
research procedure.

These annexures offer supplemental information that broadens knowledge of and transparency regarding the
research methodology and conclusions pertaining to customer satisfaction at Starbucks.

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 THANK YOU
MRINMOY HAZRA

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