PROJECT REPORT

on

Analyzing the Customer Satisfaction level on Starbucks

Beverage Consumption in Delhi Region
Submitted in partial fulfillment of the requirements for the award of the
degree of

BACHELOR OF BUSINESS ADMINISTRATION

to

Chhatrapati Sahu Ji Maharaj University, Kanpur

Under the Guidance of Submitted by -

Mrs. Taniya Khurana Khushi Gupta
BBA - VI SEM
0302498

Session 2018-2021

PSIT COLLEGE OF HIGHER EDUCATION, KANPUR

Bhauti , Kanpur

DECLARATION

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Abstract
This research focuses on Starbucks' brand image, experience, quality, and services, which will
lead to consumer loyalty through customer happiness. The study examines how consumer loyalty
and brand experience influence Starbucks Coffee quality improvements, as corporate brands are
critical to obtaining improved business performance, such as sales. It creates additional
incentives for potential clients to be satisfied and builds a long-term relationship with them.
According to the findings, organisations with more customer loyalty and satisfaction have a
larger market share and may reduce costs further. As a result, organisations should pay close
attention to all of these elements in order to maintain long-term profitability and obtain a
competitive advantage in the market.

Keywords: Customer satisfaction, competitive advantage, experiences, potential customers,

profitability, relationship building, and success

DECLARATION

I hereby declare that the Project Report entitled “Analyzing the Customer
Satisfaction Level On Starbucks Beverage Consumption in Delhi Region”
submitted to PSIT College of Higher Education, Kanpur in partial fulfillment of
Degree of Bachelor of Business Administration is the original work conducted by
me. The information and data given in the report is authentic to the best of my
knowledge.

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This Project Report is not being submitted to any other University for award of any
other Degree, Diploma and Fellowship.

Place: Kanpur Khushi Gupta

Date: 0302498

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 Preface

Satisfaction is a person's feeling of pleasure or disappointment resulting from a comparing

perceived performance in relation to his or her expectation. If the performance falls short of

expectation, the consumer is dissatisfied. If the performance matches the expectations, he

consumer is satisfied. If the performance exceeds expectation, the customer is highly satisfied or

delighted.

In today's competitive scenario firms consistently tries to satisfy his existing customer to get

more customers in every regards. To meet the desired expectation of customers companies has to

look around all aspects of products services and of course market condition, otherwise they may

be out of the race. Automobile industry has the same competitiveness and every firm in the

industry is consistently working for enhancing their product and services.

The study widely concentrates on the level of satisfaction amongst customers for which I did

Exploratory Research to check the satisfaction level amongst the customers of Starbucks.

Objective of this report is to see the customer satisfaction level of the one of the coffee house

brand Starbucks. At the same time this report is to talk about the customer’s demographic and

geographic situation as well as their behavior for Starbucks and analyze the its service.

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Simultaneously, it is also inspect on the basis of this feedback that how Starbucks can improve

the efficiency level to make them more organized and to meet their customers expectation.

The study is based on the data collected by personal interview with the consumers at two

different Starbucks outlets in Delhi city. An open-ended question has been designed for that

research. The sampling unit covers 100 people combining both male and female those are

Starbuck’s customers. As the size of population is unknown, convenient sampling is done.

I believe that this report will help to those people who are willing to prepare a report on related

fields. This will help the people to know about their own expectations and demands from

Starbucks. At the same time the result of this study will help decision makers to develop their

service, product and quality according to the customer’s expectation

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 Acknowledgment

I would like to thanks my extent sincere thanks to my Mentor Mrs. Tanya Khurana, PSITche,

Kanpur for providing me his continuous support and guidance for successfully completion of

the project.

I would take this opportunity to express my gratitude to my guide and all those people who

helped me in this project with their significant contribution made me capable for doing this

research.

I would like thanks my Dr. Shivani Kapoor, Director, PSITche, Kanpur for her timely

guidance and providing required facilities and information for this project.

I also want to thank my parents for their continuous support and also my respondent; friends, and

everyone who encouraged and help me in this project.

Khushi Gupta

0302498

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 Table of Content

S.No. Title Page No.

1. Introduction

2. Company Profile

3. Literature Review

4. Objective of Report

5. Significance Of Study

6. Research Methodology

7. Data Analysis

8. Finding

9. Recommendation

10. Limitations

11. Conclusion

12. Reference

13. Annexure

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 INTRODUCTION

Customer satisfaction

Customer satisfaction is a term frequently used in marketing. It is a measure of how products and

services supplied by a company meet or surpass customer expectation. Customer satisfaction is

defined as "the number of customers, or percentage of total customers, whose reported

experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals.

It is seen as a key performance indicator within business and is often part of a Balanced

Scorecard. In a competitive marketplace where businesses compete for customers, customer

satisfaction is seen as a key differentiator and increasingly has become a key element of business

strategy.

Customer satisfaction provides a leading indicator of consumer purchase intentions and loyalty.

Customer satisfaction data are among the most frequently collected indicators of market

perceptions. Their principal use is twofold: -

● Within organizations, the collection, analysis and dissemination of these data send a

message about the importance of tending to customers and ensuring that they have a

positive experience with the company's goods and services.

● Although sales or market share can indicate how well a firm is performing currently,

satisfaction is perhaps the best indicator of how likely it is that the firm’s customers will

make further purchases in the future. Much research has focused on the relationship

between customer satisfaction and retention.

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 Retail

Retail is the process of selling consumer goods or services to customers through multiple

channels of distribution to earn a profit. Retailers satisfy demand identified through a supply

chain. The term "retailer" is typically applied where a service provider fills the small orders of a

large number of individuals, who are end-users, rather than large orders of a small number of

wholesale, corporate or government clientele. Shopping generally refers to the act of buying

products. Sometimes this is done to obtain final goods, including necessities such as food and

clothing; sometimes it takes place as a recreational activity. Recreational shopping often involves

window shopping and browsing: it does not always result in a purchase.

Retail refers to the activity of selling goods or services directly to consumers or end-users. Some

retailers may sell to business customers, and such sales are termed non-retail activity. In some

jurisdictions or regions, legal definitions of retail specify that at least 80 percent of sales activity

must be to end-users.

Retailing often occurs in retail stores or service establishments, but may also occur through

direct selling such as through vending machines, door-to-door sales or electronic channels.

Although the idea of retail is often associated with the purchase of goods, the term may be

applied to service-providers that sell to consumers. Retail service providers include retail

banking, tourism, insurance, private healthcare, private education, private security firms, legal

firms, publishers, public transport and others. For example, a tourism provider might have a

retail division th purchases blocks of accommodation, hospitality, transport and sightseeing.

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 Indian Retail Industry:

The Indian retail industry is one of the fastest growing in the world. Retail industry in India is

expected to grow to US$ 1,200 billion by 2021 from US$ 672 billion in 2017E.

India is the fifth largest preferred retail destination globally. The country is among the highest in

the world in terms of per capita retail store availability. India’s retail sector is experiencing

exponential growth, with retail development taking place not just in major cities and metros, but

also in Tier-II and Tier-III cities. Healthy economic growth, changing demographic profile,

increasing disposable incomes, urbanisation, changing consumer tastes and preferences are the

other factors driving growth in the organised retail market in India.

India’s population is taking to online retail in a big way. Online retail sale is forecasted to grow

at the rate of 31 per cent to reach US$ 32.70 billion in 2018. Revenue generated from online

retail is projected to grow to US$ 60 billion by 2020. Organized retail penetration is expected to

increase to 18 per cent in 2021 from an estimated nine per cent in 2017. India is expected to

become the world's third-largest consumer economy, reaching US$ 400 billion in consumption

by 2025. ^Increasing participation from foreign and private players has given a boost to Indian

retail industry. India’s price competitiveness attracts large retail players to use it as a sourcing

base. Global retailers such as WalMart, GAP, Tesco and JC Penney are increasing their sourcing

from India and are moving from third-party buying offices to establishing their own wholly-

owned/wholly-managed sourcing and buying offices. India’s retail sector investments doubled to

reach Rs 1,300 crore (US$ 180.18 million) in 2018. The Government of India has introduced

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reforms to attract Foreign Direct Investment (FDI) in retail industry. The government has

approved 51 per cent FDI in multi-brand retail and 100 per cent in single brand retail under the

automatic route which is expected to give a boost to ease of doing business and Make in India,

and plans to allow 100 per cent FDI in e-commerce. India will become a favourable market for

fashion retailers on the back of a large young adult consumer base, increasing disposable

incomes and relaxed FDI norms.

COFFEE INDUSTRY IN INDIA

The coffee industry of India is the sixth largest producer of coffee in the world, accounting for

over four percent of world coffee production, with the bulk of all production taking place in its

Southern states. India is most noted for its Indian Kathlekhan Superior variety. It is believed that

coffee has been cultivated in India longer than anywhere outside of the Arabian Peninsula.

There are over 1, 71,000 coffee farms in India, cultivating nearly 900,000 acres of coffee trees.

Most coffee production in India is on small farms, with over 90 percent of all farms consisting of

10 acres or fewer. However, such farms account for just over half of all land used for coffee

production and a minority of all coffee produced.

Most coffee in India is grown in three states: Karnataka, Kerala, and Tamilnadu. These states

accounted for over 92 percent of India's coffee production in the 2011-2012 growing season.

While India has a tradition as one of the earlier growers of Arabica coffee, it currently more

substantially more Robusta beans. In the 2010-2011 growing season, approximately 52 percent

of all coffee acreage was dedicated to Robusta trees.

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 About Starbucks

Starbucks Corporation is an American coffee company and coffeehouse chain. Starbucks was

founded in Seattle, Washington in 1971. As of early 2019, the company operates over 30,000

locations worldwide.

Starbucks is considered the main representative of "second wave coffee", initially distinguishing

itself from other coffee-serving venues in the US by taste, quality, and customer experience

while popularizing darkly roasted coffee. Since the 2000s, third wave coffee makers have

targeted quality-minded coffee drinkers with hand-made coffee based on lighter roasts, while

Starbucks nowadays uses automated espresso machines for efficiency and safety reasons

Starbucks first became profitable in Seattle in the early 1980s. Despite an initial economic

downturn with its expansion into the Midwest and British Columbia in the late 1980s, the

company experienced revitalized prosperity with its entry into California in the early 1990s.The

first Starbucks location outside North America opened in Tokyo in 1996; overseas properties

now constitute almost one-third of its stores. The company opened an average of two new

locations daily between 1987 and 2007.

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13
 Company Profile

Starbucks

Starbucks Corporation is an American coffee company and coffeehouse chain. Starbucks was

founded in Seattle, Washington in 1971. As of early 2019, the company operates over

30,000locations worldwide.

TATA Starbucks Private Limited, formerly known as Tata Starbucks Limited is a 50:50 joint

venture company, owned by Tata Global Beverages and Starbucks Corporation, that owns and

operates Starbucks outlets in India. The outlets are branded Starbucks "A Tata Alliance".

HISTORY of Starbucks

The first Starbucks opened in Seattle, Washington, on March 31, 197. by three partners who met

while they were students at the University of San Francisco: English teacher Jerry Baldwin,

history teacher Zev Siegl, and writer Gordon Bowkerwere inspired to sell high-quality coffee

beans and equipment by coffee roasting entrepreneur Alfred Peet after he taught them his style of

roasting beans.] Bowker recalls that Terry Heckler, with whom Bowker owned an advertising

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agency, thought words beginning with "st" were powerful. The founders brainstormed a list of

words beginning with "st", and eventually landed on "Starbo", a mining town in the Cascade

Range. From there, the group remembered "Starbuck," the name of the chief matein the

book Moby-Dick. Bowker said, "Moby-Dick didn't have anything to do with Starbucks directly; it

was only coincidental that the sound seemed to make sense.

The first Starbucks store was located in Seattle at 2000 Western Avenue from 1971–1976. This

cafe was later moved to 1912 Pike Place. During this time, the company only sold roasted whole

coffee beans and did not yet brew coffee to sell. During their first year of operation, they

purchased green coffee beans from Peet's, then began buying directly from growers.

HISTORY of TATA Starbucks

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In January 2011, Starbucks Corporation and Tata Coffee announced plans to begin

opening Starbucks locations in India. Despite a false start in 2007, in January 2012 Starbucks

finally announced a 50:50 joint venture with Tata Global Beverages, called Tata Starbucks Ltd.,

which would own and operate outlets branded "Starbucks, A Tata Alliance". Starbucks had

previously attempted to enter the Indian market in 2007. Starbucks did not cite any reason for the

withdrawal.

On 19 October 2012, Starbucks opened its first store in India, measuring 4500 sq ft in

Elphinstone Building, Horniman Circle, Mumbai. Starbucks opened its first roasting and

packaging plant to supply its Indian outlets in Coorg, Karnataka in 2013.

Starbucks expanded its presence to Delhi on 24 January 2013 by opening 2 outlets at Terminal

III of the Indira Gandhi International Airport, and later one in Connaught Place. Tata Global

Beverages announced in 2013 that they would have 50 locations by the end of the year, with an

investment of 4 billion(US$56 million). However, the company would open its 50th store in

India only on 8 July 2014.

The third city of India to get a Starbucks outlet was Pune, where the company opened an outlet

at Koregaon Park, on 8 September 2013. Starbucks opened a 3,000-square-foot flagship store

at Koramangala, Bangalore on 22 November 2013, making it the fourth city to have an outlet.

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Products of TATA Starbucks

Apart from the usual products offered internationally, Starbucks in India has some Indian style

product offerings such as Tandoori Paneer Roll, Chocolate Rossomalai Mousse, Malai Chom

Chom Tiramisu, Elaichi Mewa Croissant, Chicken Kathi Roll and Murg Tikka Panini to suit

Indian customers. All espressos sold in Indian outlets are made from Indian roasted coffees

supplied by Tata Coffee. Starbucks also sells Himalayan bottled mineral water. Free Wi-Fi is

available at all Starbucks stores.

In January 2017, Tata Starbucks introduced Starbucks' tea brand Teavana offering 18 different

varieties of tea across its outlets in India. One of the varieties, called the India Spice Majesty

Blend, was specifically developed for the Indian market and is exclusively sold only in India.

India Spice Majesty Blend is a blend of full leaf Assam black tea infused with whole cinnamon,

cardamom, cloves, pepper, star anise and ginger.

On 15 June 2015, Tata Starbucks announced that it was suspending the use of ingredients that

had not been approved by the Food Safety and Standards Authority of India (FSSAI). The

company did not specify what the ingredients were or which products they were used. The

company also stated that it was in the process of applying for FSSAI approval for these

ingredients.

According to the Latte Index, a ranking of the cost of a tall hot latte at Starbucks in 44 countries,

India was the fifth most expensive country to purchase the beverage based on January 2016

prices. The index published by US-based consumer research firm Value Penguin found that a tall

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hot latte cost US$7.99 in India, far higher than the $2.75 it costs in the cheapest country, the

United States, but much lower than the $12.32 in the most expensive country Russia.

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 International Presence

The Tata Group and Starbucks Corporation also collaborate on some ventures outside India.

Starbucks Reserve Tata Nullore Estates, the first-ever Starbucks Reserve coffee sourced

exclusively from India, became the first Indian coffee to be roasted and sold at Starbucks home

city of Seattle in 2016. The coffee was later rolled out across Starbucks outlets in the United

States. In the same year, Starbucks began selling Himalayan bottled mineral water at its outlets

in Singapore and also began retailing its products on board all flights of Vistara, a joint venture

between the Tata Group and Singapore Airlines.

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 Location:

As of October 2018, Starbucks operates 126 outlets in 10 cities of India. The 100th store came

up at Kamala Mills in Mumbai

State / Region City No. Of Outlet

Delhi New Delhi 17

Delhi NCR Gurgaon 7

Delhi NCR Noida 3

Maharashtra Mumbai 46

Maharashtra
Pune 11

Karnataka Bangalore 19

Tamil Nadu Chennai 8

Telangana Hyderabad 7

West Bengal Kolkata 4

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 Competitor of Starbucks

Starbucks Corporations is a coffee company founded in the USA in the year 1971 and operates

worldwide. As at 2016, Starbucks was operating in more than 23,500 locations worldwide with

an average of 240,000 employees. Its assets stood at $12.5 billion dollars with a net operating

income of $2.80 billion dollars. As a representative of ‘second wave coffee, Starbucks is known

for its distinguished quality coffee, top notch customer service and best-tasting coffee made from

espresso machines.

Some of its widely known products include Caffe Latte, espresso, Teavana tea products, fresh

juices like Frappuccino and snacks including chips and crackers not to mention bottled coffee

drinks, appetizers, wines and ice cream. Being a coffee producer, the following are the top 11

Starbucks competitors: -

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1) Costa Coffee

This is the second largest coffeehouse in the world after Starbucks and the largest in the UK.

Founded in 1971 in the UK, Costa coffee has expanded to over 3000 stores in over 30 countries.

In the UK alone, it operates over 2000 restaurants. Mid this year, Costa coffee moved its coffee

roaster to Essex. An investment that cost a close to 40 million pounds. This, in turn, increased

the roasting capacity to 44,000 tons of coffee beans from the initial 11,000 tons in a year.

As at the end of 2016, Costa Coffee’s net income was approximate £153 million with revenues

exceeding £1.167 billion. This company reaches to its customers through its advertising slogan

‘a coffee for every mile’ whose aim is to have as many coffee shops as possible. Costa Coffee is

also probably the only Starbucks Competitors on this list which exclusively deals and promotes

its coffee. All other brands have a combination of different products to offer.

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2) McDonalds McCafe

McCafe is strongly coming up as one of the Starbucks Competitors which is gaining market

share. This is because of the backing it has with the huge number of McDonald’s stores across

the globe. This coffee house not only specializes in coffee but food and other beverages as well.

It was formed in Australia in the year 1993 and is a true reflection of espresso coffees. In the

year 2015, McCafe was among the top three coffee sellers with over $1.4 billion from slightly

over 4,500 outlets. However, this is set to increase after McCafe upgraded its equipment to

ensure consistency in the taste of its coffee. Currently, it’s ranked the largest in New Zealand and

Australia.

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3) Dunkin Donuts

Dunkin is a donut company as well as a coffee house based in Massachusetts USA. Founded in

1950, it has expanded to become one of the largest baked food and coffee chain in the world. It

operates in more than 35 countries with over 11,500 restaurants. In the year 2010, its sales were

estimated to be 6 billion dollars and an estimated revenue stream of around US$828.9 Million as

per the 2016 data. In terms of production, Dunkins produces 8% donuts, 65% drinks and 27% of

other food items. Its presence in 35 countries itself tells the success story of the company.

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4) Café Coffee Day

Café Coffee Day is another global company and largest Arabica beans producer and Exporter in

Asia. Started in 1996 CCD is now a world brand with its initial investment capital estimated to

be over160 million dollars. As at mid-2015, Café Coffee Day had over 1,500 outlets across 28

India states. The company is well known for vertically cutting down on costs; this is from

owning Arabica coffee plantations, making furniture for its outlets and also making coffee

machines. Even though it started in Asia, it has expanded to some countries in Africa, Czech

Republic, and Nepal.

Its initial marketing strategy was the change of original Logo with the new Logo showcasing the

chain as a ‘place to hold talks’ leading to total revamp of interiors and addition of lounges.

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5. McDonalds

Starbucks does not serve only Coffee but it also has small pizza’s and other eatables to

accompany the coffee. When we take the coffee out of the equation, Starbucks is literally a fast

food place as well. As a result, McDonalds can be considered a strong Starbucks Competitor.

McDonald’s is an American Fast foods store chain that was founded in the year 1940. As one of

the largest hamburger restaurant chains in the world, it operates 3700 outlets in over 100

countries.

To respond to different consumer tastes and preferences, McDonald’s also sells chicken

products, cheeseburgers, wraps, milkshakes, desserts, salads, fish, soft drinks, smoothies and a

variety of breakfast items. Its marketing strategies include franchising and change of logo.

McDonald’s also receives additional revenues from royalties, rent, and fees paid by franchisees.
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Even though it started as a hamburger stand, its marketing techniques have propelled it to the

global map.

According to the 2012 report published by BBC, McDonald’s is the 2nd largest private employer

after Walmart with almost 2 million employees of which 1.5 million are employed by franchises.

6.) Kentucky Fried Chicken (KFC)

KFC is the world largest restaurant chain that specializes in fried chicken. Its headquarters in

Kentucky USA oversee operations of 20,000 branches worldwide in more than 120 countries.

Founded in 1952, KFC managed to popularize and market fast food chicken though franchising

and advertising. Advertising was done on televisions with the initial advertising budget estimated

to be around 4 million Dollars. In the late 1960s, KFC hired a national advertising agent by the

name ‘Leo Burnett’. In the mid-1970s, the Leo Burnett campaign dubbed ‘get a bucket of

chicken’ made KFC one of the most popular fast food chains in the USA.

Currently, its food menu has expanded to include french-fries, salads, side dishes, coleslaws and

soft drinks among others.

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7. Burger King:

Burger King (BK) is an American global chain of hamburger fast food restaurants.

Headquartered in the unincorporated area of Miami-Dade County, Florida, the company was

founded in 1953 as Insta-Burger King, a Jacksonville, Florida–based restaurant chain. After

Insta-Burger King ran into financial difficulties in 1954, its two Miami-based franchisees David

Edgerton and James McLamore purchased the company and renamed it "Burger King". Over the

next half-century, the company would change hands four times, with its third set of owners, a

partnership of TPG Capital, Bain Capital, and Goldman Sachs Capital Partners, taking it public

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in 2002. In late 2010, 3G Capital of Brazil acquired a majority stake in the company, in a deal

valued at US$3.26 billion. The new owners promptly initiated a restructuring of the company to

reverse its fortunes. 3G, along with partner Berkshire Hathaway, eventually merged the company

with the Canadian-based doughnut chain Tim Hortons, under the auspices of a new Canadian-

based parent company named Restaurant Brands International.

8.Independent Fast food chains & Bakeries:

Coffee is not only sold in large chains but it is also sold in local bakeries and small coffee

centers. In fact, travel sites are generally full of coffee shops you should experience in a place

that you visit. These coffee shops are famous for their personalized service and the friendly staff

whom you know very well. As a result, the 100’s of coffee shops around the corner are the most

widespread Starbucks Competitors and a true competitor for the coffee chain. Starbucks has

itself strived hard to become the coffee shop around the corner. But across the world, there are

many many coffee shops which become an unorganized Starbucks Competitors

.Service offered by Starbucks

The main aim of Starbucks is to become the leading brand and retailer of finest coffee in each of

its target markets nationally and internationally by selling the best quality coffee and related

products, and by providing high class customer service. Starbucks purchases and roasts a high

quality whole bean coffees to sell them with fresh, rich-brewed espresso beverages, different

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varieties of pastries and coffee related accessories and equipment’s (www.starbucks.com).

Moreover, Starbucks also sells coffee and tea products strategically through other channels such

as supermarkets and nontraditional retail channels such as United Airlines, Marriott

International, Barnes & Noble bookstores and Department stores.

More than quality coffee, Starbucks features a variety of hand-crafted beverages, pastries and in

some markets, a selection of sandwiches and salads. Starbucks merchandise includes exclusive

espresso machines and coffee brewers, unique confections and other items related to coffee and

tea. Some of the Starbucks products are as follows;

Beverages: Brewed coffees, Italian-style espresso, cold blended beverages, roasted whole bean

coffees, tea products, fruit juice, sodas, and coffee liqueur.

Food: Sandwich, Salads, pastries and ice creams

Non food items: Mugs, Travel tumblers, coffeemakers, coffee grinders, storage containers,

compact discs, games, seasonal novelty items, Starbucks card, media bar.

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 LITERATURE REVIEW

Some important elements of our study are-

1.1 Consumer Satisfaction

According to Schiffman (2008) satisfaction is a person's feeling of pleasure or disappointment

resulting from comparing perceived product performance with expectations. According to

Lovelock and Wirtz (2007) satisfaction is an emotional state, post-purchase reactions may be

anger, dissatisfaction, irritation, neutrality, excitement, or pleasure. Based on several definitions

of satisfaction, it can be explained that customer satisfaction is a feeling or emotional assessment

of consumers when expectations and needs are met for the use of a company's products or

services. Satisfied consumers will tend to say something good about the product concerned to

others and this is what is expected by the company (Crosby, Evans and Cowles, 1990). Kim and

Cha (2002) argued that companies that adopt a customer orientation perspective are more likely

to provide quality, contribute to customer satisfaction and maintain organizational goals

efficiently and effectively compared to competitors. Oliver (2008) formulated satisfaction as a

comprehensive response that influences the difference between previous expectations and what

is felt after the service product is consumed or retired by a post-sale, where the perception of the

performance of the selected service meets consumer expectations.

Some studies on Customer Satisfaction

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Customer satisfaction is an evaluation of difference between prior expectations about product

and its actual performance. Customer satisfaction is how customers react towards the state of

satisfaction, and how customers judge the satisfaction level (Hanif, Hafez & Riaz, 2010).

Customer satisfaction is the reaction of customer toward state of the fulfillment and judgment of

customer about that fulfilled state (Khayyat & Heshmati,2012).

Customer satisfaction is the expectation before consuming a product regarding quality or it is

a pre-consumption judgment or expectation (bae,2012).

Satisfaction is an outcome of purchase in which consumer compare cost and rewards with the

anticipated consequences (Maxham,2001).

There is always a positive relationship between customer satisfaction and profit maximization of

an organization (bowen&chen,2001).

No one is important than customers and their satisfaction is the ultimate objective through

improvement in services in terms of competitiveness and it saves future revenue plus it becomes

the cause of cost reduction in future (Yuan Hu, Ching-Chan & Cheng, Hong,2010).

Customer satisfaction is the perceived feeling of a customer for which he or she has set standards

if his expectations match with the standard he is satisfied (Eggert&Ulaga,2002).

There are number of imperial studies on specific relationship of employee’s satisfaction. Often

the quality of the relationship is called satisfaction mirror which gives an idea that success

of business is from satisfaction of employee which is reflected in term of the customer

satisfaction. Service quality is derived from employee satisfaction for example if employees are

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satisfied it has direct effect on both customer satisfaction and service quality (Madern, Maull,

Smart&Baker,2005).

There is a significant effect of customer satisfaction on the performance of business and through

customer satisfaction returns of shareholders can be increased and value of any business can be

maximized (O’sullivan,Mccalling, 2010).

Customer satisfaction with offices is resolved by specialized execution, as well as by a many-

sided set of trade procedures, for example, compelling correspondence and administration of

desires. (Campbell&Finch,2004).

Customer satisfaction have antecedent, mediated and moderated effect on personal connections

and enjoyable interactions (Fatima&Razzaque,2013).

Customer satisfaction with offices is resolved not just by specialized execution, additionally by a

multifaceted set of trade methodologies, for example, powerful correspondence and

administration of desires.(Campbell&Finch,2004)

1.2 Consumer Trust

Consumer trust is one of the important factors that determine the success of the company in the

future. An organization must be able to recognize the factors that can form these beliefs in order

to create, organize, maintain, support and enhance the level of relationships with consumers,

(Zineldin, 2000). According to Barnes (2003) trust is a factor that may get the most attention in

the literature on interpersonal relationships and consumer relations. According to Lau and Lee

(1999) there are three factors that influence brand trust. These three factors relate to three entities

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that are included in the relationship between brand and consumer, while these three factors are

the brand itself, the brand making company, and the consumer.

1.3 Consumer Loyalty

The definition of loyalty defined by Griffin (2007) is as a non-random purchase made at any time

by decision makers. Meanwhile, according to Kartajaya (2007) loyalty is a manifestation of the

fundamental needs of humans to own, support, get a sense of security and build attachments and

create emotional attachments ". Based on the definition above, it can be concluded that loyalty is

a customer's commitment to stay in depth by re-purchase products / services consistently selected

in the future, despite the influence of the situation and marketing efforts have the potential to

cause behavior change. Loyalty behavior according to Lin and Ding (2006) can be measured in

three dimensions, namely: subscription (repeat patronage), switching behavior and

recommendations (word of mouth). Baloglu (2002), stated that customer loyalty has five

dimensions or indicators, namely: (1) Trust; (2) psychological commitment; (3) switching costs;

(4) word-of-mouth behavior; (5) cooperation).

Consumers are assets that are valuable for a product or service business. This is due to the

presence of consumers as parties who need products or services offered by the food or beverage

business, thus the products are favored by consumers, the products produced must be made

attractive in the packaging. According to Kotler (2007), customer satisfaction is a feeling of

pleasure or disappointment of someone who comes from a comparison between his impressions

of the performance (results) of a product with his expectations.

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Study on Comparison of Starbucks with CCD:-

● As per the study done by SHREYANSH VATS (Junior committee member at media

relations and ranking) on comparison between ccd and Starbucks we have different

factors by which starbucks wins over the CCD.

● A study on Starbucks vs CCD: A Comparison | The Great Coffee Shop Battle done By

Shilpa Ahuj. She done in-depth comparison of Starbucks vs CCD – on everything

including menu, pricing, ambience, service quality and gives verdict that Starbucks is

quite the winner here. It is giving quite a competition to CCD and for good reason.

35
 OBJECTIVES OF THE REPORT

The main objectives are as follows and we have divided them into some broad and specific

objectives which are given below:

Specific Objectives

● To find the factors associated with the customer satisfaction level towards Starbucks.

● To identify the ways to Enhance the level of Starbucks customers as compared to its

competitors.

● To address the challenges that will be faced by Starbucks in context of customer

satisfaction.

● To identify the way to measure the customer satisfaction level.

36
 SIGNIFICANCE OF STUDY

Customer satisfaction and loyalty is being emphasized to identify qualities increasing customer

loyalty, hotel & beverages companies need to consider what happens before, during, and after

the guest interacts with the property. In that light, it is important to look closely at what is

measured and the way it is measured.

Customer satisfaction is a crucial part of loyalty, but customer loyalty cannot be achieve by

satisfaction alone. An enterprise can offer satisfaction without loyalty, but not loyalty without

satisfaction. Thus, this study provides insights into customer loyalty by examining customer

satisfaction and service quality.

The primary goal of the present study was to provide a framework for other coffee house in

reproducing this research process for their own marketing research. The short-range values of

this study were to better understand current service quality, guest satisfaction, and loyalty of the

Starbucks with participant observation from visitors. It gives clear idea to managers about why

people leave dissatisfied or satisfied from their outlets and where they can take efforts for short

improvements to retain business and customers.

37
 RESEARCH METHODOLOGY

Research Methodology is a careful investigation for enquiring in a systematic manner and

finding solution of a problem. It comprises the defining and redefining of problem connection,

and formulation/evaluation of data, making detection and researching conclusion.

This research consists of following elements-

❖ Source of data

❖ Research design

❖ Sampling design

Source of data:

1. Primary source of data

2. Secondary source of data

38
 ❖ Primary data are those data collected by the investigator himself for the first time and

thus, they are original in character. They are collected for a particular purpose.

❖ A well- structured questionnaire is personally administrated to the selected sample to

collected primary data.

Secondary Source of Data

❖ Secondary data are those which have already been collected by some other person for the

purpose and published.

❖ Secondary data are usually in the shape finished products. External data was generalized

from magazines, research books & internet.

❖ There are two ways for the collection of data which are given below:

a) Through published Data

b) Through unpublished Data

Research Design:

❖ The study was conducted as an Exploratory Sampling Survey Method to collect primary

and secondary data.

❖ After formulation of the research problem the researcher has to work out a design for the

study. According to researchers, a research design is a logical and systematic planning

and redirecting of a piece of research.

39
 ❖ Thus the process of working out a research design involves making decision about the

techniques to be employed for collection of relevant data, and also to check its reliability

and validity. It also includes analysis of data and its interpretation.

Sampling Design:

❖ A sample is a representative part of the population. In sampling technique, information is

collected only from a representative part of the universe and the conclusion are drawn on

the basis of the entire universe.

❖ A random sampling is a sample selective from a population in such a way that every

member of the population has equal chance of being selected and selection of any

individual does not influence the selection of other. The selection is purely depending on

chance. So, while conducting the survey 100 respondents were selected at random.

Sample Size:

It donates the number of respondents selected for the study. For the present study, 100

respondents were selected at random. All the 100 respondent were the customer of starbucks.

Sampling Technique :

❖ The respondent of this dissertation were 100 customers of starbucks in general they all

visit the starbucks outlay when the questionnaire given to them.

40
 Data Analysis

The various questions asked through the questionnaire were collected and its analysis were done.

TABLE-1 Gender of Respondent

Answer Choice Frequency Percentage

Male 64 64%

Female 35 35%

Other 1 1%

Frequency
1%

Male
35% Female
Other

64%

41
TABLE-2 Respondent Distribution by Age Bracket

Answer Choice Frequency Percentage

below 19 15 15%

19-25 35 35%

26-40 36 36%

41-55 10 10%

above 55 4 4%

Age Bracket
below 19 19-25 26-40 41-55 above 55

4%
10% 15%

36% 35%

42
Table-3 Distribution Of Respondent By Educational Background

Answer Choice Frequency Percentage

Illiterate 10 10%

Basic 10 10%

Intermediate 20 20%

Graduate 40 40%

Post -graduate 15 15%

Other_ 5 5%

Educational Detail
Illiterate Basic Intermediate
Graduate Post -graduate Other_

5% 10%
15%
10%

20%

40%

43
 TABLE-4 How often you visit the Starbucks store

Answer Choice Frequency Percentage

Daily 6 6%

Once a week 22 22%

Atleast once a month 24 24%

Once every few months 32 32%

Never 16 16%

How often do people visit Starbucks

5%
16%

Daily
22% Once a week
At least once a month
once every few months
never

32%

24%

44
 TABLE-5 Who pays for you usually

Answer Choice Frequency Percentage

Yourself 50 50%

Friends 2 2%

Parents 40 40%

Other 8 8%

Who pays
1%

Yourself
Friends
43% Parents
other
54%

2%

45
 Table -6 What do you like about Starbucks

Answer Choice Frequency Percentage

Foods / Drink 37 37%

Ambience 14 14%

Accessible Outlets 7 7%

Efficient Service 9 9%

Good place to study 8 8%

Popular spot for hangout 10 10%

Good service quality 9 9%

Cheap 1 1%

Other 5 5%

46
 frequency
F/D Ambience Accon Efficient Good Place
Popular spot Good Service Cheap Other
1%

9%

11%
39%

8%

9%

7%
15%

47
 Table -7 What do you order here

Answer Choice Frequency Percentage

Cake / Pastries 13 13%

Coffee 12 12%

Breakfast items 8 8%

Lunch & Protein box items 33 33%

Hot / Cold drinks 34 34%

What do people order

13%

34% Cake Pastries

12% Breakfast Items
Lunch
Coffee
Hot/Cold drinks
8%

33%

48
Table -8 How Is Employee Service At Starbucks

Answer Choice Frequency Percentage

Great 60 60%

Decent 33 33%

Bad 7 7%

Employee Service

21%

Very Bad
Bad
Average
51%

28%

49
Table -9 Compared to similar stores, how much better do find the quality of the products

Answer Choice Frequency Percentage

Very Bad 8 8%

Bad 11 11%

Average 20 20%

Good 38 38%

Very Good 23 23%

Quality of Products

8%
23% Very Bad
11% Bad
Average
Good
Very Good
20%

38%

50
51
 Table -10 How helpful are the employees at this store

Answer Choice Frequency Percentage

Extremely Helpful 35 35%

Helpful 30 30%

Moderately Helpful 20 20%

Slightly Helpful 10 10%

Not Helpful 5 5%

Employee Helpful
Very Bad Bad Average Good Very good

3%
12%
24%

21%

40%

52
 Table-11 How organized is this store

Answer Choice Frequency Percentage

Extremely Organised 35 35%

Organised 30 30%

Moderately Organised 20 20%

Slightly Organised 10 10%

Not Organised 5 5%

Store Organisation
Extremely Organised Organised Moderately Organised
Slightly Organised Not Organised

5%
10%

35%

20%

30%

53
 Table -12 To improve Starbucks , They should-

Answer Choice Frequency Percentage

Exceed their customer’s expectation 11 11%

Make cheaper price 40 40%

Have it run 24 hours 22 22%

Offer special types of products (ex. Unicorn 12 12%

frappuccino)

Spend more time in training beginners 2 2%

More Advertising 5 5%

Others- 8 8%

54
 To improve Starbucks should...

8% 11% 2% Exceed their customer expec-

5% tation
Spending more time training
beginners
12% Cheaper Price
Run 24 hours
Special type of products
More advertising
other
40%
22%

Table-13 Would You Ever Go To Starbucks Again

Answer Choice Frequency Percentage

Yes 70 70%

No 6 6%

Maybe 24 24%

55
 Go to Starbucks Again
Yes No Maybe

24%

6%

70%

56
Table-14 Would You Recommend Starbucks To Other

Answer Choice Frequency Percentage

Yes 56 56%

No 23 23%

Maybe 21 21%

Recommend Starbucks
Yes No Maybe

21%

56%

23%

57
58
 Table-15 Which Brand You Like Most?

Answer Choice Frequency Percentage

Starbucks 29 29%

CCD 19 19%

McD 28 28%

Dunkin Donuts 10 10%

KFC 14 14%

59
 Most Like By Respondent

13%

26%

Starbucks
CCD
18% McD
Dunkin Donuts
KFC

17%

25%

Finding

● We have noticed that most of the people who took part in the survey were males and

females both.

● People normally visit Starbucks once a month and they pay for themselves.

● Normally people adore getting foods and drinks at Starbucks compare to other menu

options.

● Usually people (around 60%) have noticed that the service provided by Starbucks

employee is remarkable.

60
● Around 38% people rated Starbucks overall quality as good, compare to other coffee

brands.

● Mostly (around 40%) respondent suggest for improving Starbucks, there should be cut in

price for their products.

● Most customer (around 70%) would definitely come back to Starbucks and around 56%

respondent said they will recommend it to other.

● Around 26.5% like Starbucks more than the other coffee houses, and around 17% like

café coffee day and around 26% like McDonalds more.

● We have noticed that McD gives tight Competition to the Starbucks as it is more loved

brand for the customer like, Starbucks.

61
 RECOMMENDATIONS

● After having completing and reviewing all of our survey results we recommend that

Starbucks should a specific discount for student.

● Another recommendation that we have for Starbucks would be that they lower down

their prices by about 0.91%. This would help to attract the new customers.

● A last recommendation for Starbucks would be that they start placing their franchises

within small gas station, which would help in bringing money from a totally different

category.

62
 Limitations

Time constraint:

Refer to the start and end timers of each task in a project’s critical path, which cannot be delayed

without delaying the entire project.

Budgetary Constraints:

It represents all the combinations of goods and services that consumer may purchase given

current prices within his or her given income.

Reliability of the Data:

The quality of researched data depends strictly on the information collected. Most data must be

free and reliable.

Area Constraints:

The survey has been conducted in particular area of Delhi. So the findings are for that particular

place.

63
 Conclusion

The main purpose of research was to know what is the customer satisfaction level for the

Starbucks and what factors the customer want to change or to improve in the Starbucks outlet we

have done a survey regarding this thing to know what are the factors which attracts customer and

how can the Starbucks improve to attain more customer attraction.

From the Findings of our we can say that the mostly customers of Star Bugs are between from 9

to 25 years and from 26 to 40 years, most of them are college student or employee.

To improve the Starbucks most of the respondent said to cut down the prices for the products of

Starbucks and the factors which is most attractive to customers are the Ambience, employee

service, helpful nature of the staff, good quality products etc.

we can conclude our survey report that Starbucks is one of the most likely brand for the

customers and its big competitors are CCD and McDonalds. Customers like Starbucks because

of their good products good services and atmosphere. Also, customer is Satisfied with the

services provided by the Starbucks.

64
 References

Webilography

● www.Starbucks.in

● https://en.m.wikipedia.org/wiki/Starbucks

● https://www.marketing91.com/starbucks-competitors

● https://coffee.fandom.com/wiki/Coffee_industry_of_India

● https://shilpaahuja-com.cdn.ampproject.org/v/s/shilpaahuja.com/the-great-coffee-shop-

battle-starbucks-vs-ccd-a-review

Reference Books:-

● Research Methodology -C.R. Kothari

● Retail Management: A Strategic Approach -Barry Berman and Joel Evans

Reference:

● Schiffman., dan Kanuk. (2008). Perilaku Konsumen. Edisi 7. Jakarta: Index.

● Griffin., Ricki, W., dan Ronal, J. E. (2007). Bisnis Edisi 8. Jakarta: Erlangen.

● Hanif ,M. , Hafeez ,A. & Riaz , A.(2010) journal name( factors affecting
customer  satisfaction)p45
● khayyat,N,T.& Heshmati, a(2012) journal name(Determinants Of Mobile Phone
CustomerSatisfaction In The Kurdistan Region)p3
● Bae, Y,H.(2012) journal name(Three essays on the customer satisfaction-customerloyalty
association)p23

65
● Maxham,J , G. (2001) journal name(Service recovery’s influence on consumer
satisfaction, positive word-of-mouth, and purchase intentions)p1
● Bowen,J,T.& Chen,S,L.(2001) journal name(The relationship between customer loyalty
andcustomer satisfaction)p1
● Hu,H,Y.,Cheng,C,C.,Chiu,S,I.,Hong,F,I.(2011) journal name (A study of customer
satisfaction,customer loyalty and quality attributes in Taiwan’s medical service
industry)p1(187)
● Egger,A. & Ulaga,W.(2002) journal name(Customer perceived value:a substitute for
satisfactionin business markets)P2,17 
● (2/3)Maddaren,H. ,Maul,R,S.,Smart,P,A.&Baker,P.(2005) journal name(Customer sati
sfaction and  service quality in uk financial services) p3&5
● O’SULLIVAN,D.&McCalling,J.(2010) journal name(Customer satisfaction,
earningsand firm value)p1
● Campbell,L.&Finch, (2004) journal (Customer satisfaction and
organisational justice) p1

66
 Annexure

Research Questionnaire:

Section-A (Personal Information)

Q-1 What Is Your Gender?

Male
Female
Other

Q-2 Which age group you belong?

Below 19 years
19-25 years
26-40 years
41-55 years
Above 55 years

Q-3 What is your educational background?

Illiterate
Basic
Intermediate
Graduate
Post – graduate
Other_

67
Section-B ( Attitude , Research & Awareness)

Q-4 How often you visit the Starbucks store?

Daily
Once a week
At least once a month
Once every few months
Never

Q-5 Who pays for you usually?

Yourself
Friends
Parents
Other

Q-6 What do you like about Starbucks?

Foods / Drink
Ambience
Accessible Outlets
Efficient Service
Good place to study
Popular spot for hangout
Good service quality
Cheap
Other

Q-7 What do you order here?

Cake / Pastries
Coffee
Breakfast items
Lunch & Protein box items

68
 Hot / Cold drinks

Q-7 How is employee service at Starbucks?

Great
Decent
Bad

Q-8 Compare To Other Similar Brands, Starbucks Quality Is Overall---

Very Bad
Bad
Average
Good
Very Good

Q-9 How Helpful Are The Employees At This Store?

Extremely Helpful
Helpful
Moderately Helpful
Slightly Helpful
Not Helpful

Q-11 How organized is this store?

Extremely Organised
Organised
Moderately Organised
Slightly Organised
Not Organised

Q- 12 To improve Starbucks , They should.-

Exceed their customer’s expectation

69
 Make cheaper price
Have it run 24 hours
Offer special types of products (ex. Unicorn frappuccino)
Spend more time in training beginners
More Advertising
Others-

Q-13 Would you ever go to Starbucks Again?

Yes
No
Maybe

Q-14 Would you recommend Starbucks to other?

Yes
No
Maybe

Q-15 Which Brand You Like Most?

Starbucks
CCD
McD
Dunkin Donuts
KFC

4) Recommendations:  Starbucks biggest growth is in its International segment. The emerging markets
of Brazil, India, China, South Africa and Mexico with a growing middle-class population continue to offer
significant opportunities to add new stores and serve more customers. Starbucks has already made
significant inroads into the Chinese market but there still is a lot of untapped potential growth in these
markets. Starbucks should grow in these emerging markets by winning locally Starbucks must remain

70
relevant to the customer in order to grow in these markets, and its management teams should have the
freedom to operate within their overall framework to tailor store format, introduce local product mix
and price points to the needs, lifestyles and tastes of each individual market/community.  Under
Starbucks international strategy, it should transfer its core competencies and capabilities country to
country and then gradually build profit drivers in several countries as it continues its global expansion in
an organic way.  Starbucks has great growth opportunities in Tea and Fresh Juice products mix. They
should build up these products along the same line of their core coffee products.  Also as consumer
tastes and lifestyle shift towards more snacks and beverages options, Starbucks should tailor its menu’s
and expand to give more healthy product offerings in its mix.  Coffee beans are a significant input into
Starbucks value chain and there have been wide fluctuations in the market prices of high quality coffee
beans. Starbucks could mitigate this price volatility risky by implementing an effective hedging strategy
like future contracts to lock in their estimated quantity inputs at a low swing price so that the future
costs can be managed to a greater extent.  Starbucks growth strategy in the saturated U.S. market
should focus on getting additional penetration into untapped rural markets.  Another growth sector is
its packaged coffee packets and iced beverage products. Starbucks should build better relationships with
big box retailers to get premium shelf space and increase the efficiency of this distribution channel. 
From their 10-K’s, we can see that Starbucks invest very little in advertising and marketing initiatives. It
would be recommended that Starbucks make significant investments in advertising and marketing
initiatives in the face of increased competition in the market.  Further build and retain customer
loyalty, by building on beta concept of on-the-go home delivery.  Their mobile apps business drove
10% of the sales in the US, so it would be recommended for further building to stream lining ease of use
and payment process which would help drive more customers, decrease wait time in stores and increase
efficiency. Integrating Starbucks loyalty program with the mobile application would also be
recommended.

71