Influence Consumer Purchase Behaviour for the Coffee Bean

Topics: Branding, Brand equity, Branding companies Pages: 11 (3038 words) Published: February 19, 2012
In this 21st century, a demand of the coffee and tea is ever-increasing in complexity due to the new life style of modern people. People become more particular in choosing the coffee brand. Buyers hence may have to mainly rely on the brand image and the reputation of the manufacturers in order to simplify their purchase decisions. In addition to brand image, there are other factors that contribute to consumer purchase decision-making such as price of the products, servicescape and so on. Through the identification of the ‘Management Decision Problem’; Hypotheses and Research Objectives were developed based on the THREE independent variables identified in the Conceptual Schema earlier. These factors will in a way affect the purchase intentions and decisions of consumers in the automotive industry. This literature review will provide a detailed view as to whether or not these variables have a relationship with the consumer choice. After which, a survey questionnaire will be conducted on a sample population of 90-100 respondents. The survey results will be compiled, tabulated and tested against the hypotheses identified. The information will then be analyzed and interpreted, and concluded for managerial decisions.

2.Statement of management decision problem:
Problem definition:
Since its establish in 1963, The Coffee Bean & Tea Leaf has grown to become an international icon with more than 750 café outlets in 22 countries included Singapore. However, its sale has not been doing well comparing to other coffee brand like StarBucks which is one of the best coffee leaders in the world. To identify this issue, this research paper‘s objective will be testing on the three key factors that contribute to Coffee Bean’s consumer’s willingness of purchase as being defined in the Conceptual Schema earlier. They are price, brand name and servicescape which will be examined through this entire research paper by supporting with previous articles. In addition, the hypothesis model will also be established to test these relationships. Research question:

Is the price of Coffee Bean’s products perceived as reasonable to consumers? •Is the price of Coffee Bean’ product value to consumers? Servicescape
Does physical environment affect consumer’s willingness to buy from Coffee Bean? •Do the elements of servicescape influence consumer’s duration spent at the coffee outlet? Brand name
How do consumers perceive the brand image of Coffee Bean? •What is the consumer’s attitude towards brand image of Coffee Bean? •How can the environment perceived be improved to consumers’ favorable/ optimal level? Research Objective:

To verify out the influence of price, servicescape and brand image factors toward the choice of consumers to Coffee Bean. •To identify key elements of servicescape that entice consumers to patronise Coffee Bean and thereby delivering to their level of expectation and satisfaction •To explore consumers’ perceptions of Coffee Bean’ pricing and brand image

3.Literature review:
This study will place emphasis on the following three variables namely price, brand image and servicescape with all the past researches and articles. This literature review will provide a detailed view as to how these variables are effect on the customer’s choice. Price:

The purpose of written this literature review is for in-depth researching between and price and perceived quality. Past papers have shown that there is a positive link between these two variables. In Halliday (2004), one of the main reasons for consumers to buy that particular brand is the cost of ownership (Price). Price is often linked to other perceive variables such as quality and value. Hence, there has a relationship between price, perceived quality, perceived value and willingness to buy based on the Monroe’s (1979) conceptual schema from Monroe and Krishnan (1985). In this model, price is an arguable indicator of the level of quality,...

References: Dodds, W., Monroe,K., and Grewal, D. (1991).“Effects of Price, Brand, and Store Information on Buyers ' Product Evaluations”. Journal of Marketing Research, vol. 28, p. 3
DelVecchio, D., and D. C. Smith (2005). “Brand-Extension Price Premiums: The Effects of Perceived Fit and Extension Product Category Risk.” Academy of Marketing Science Journal, 33(2): 184-196.
Halliday, J. (2004). “Little Else Matters: Quality, Price Key Factors for Car Buyers.” Advertising Age, 75(33): 6.
Kenesei, Z. (2003). “The Use of Price in the Purchase Decision”. Journal of Empirical Generalisation in Marketing Science, 8 , 1-21.
Kim, W. G., and Moon, Y. J. (2009). “Customers’ cognitive, emotional, and actionable response to the servicescape: A test of the moderating effect of the restaurant type.” International Journal of Hospitality Management, vol. 28, pp. 144-156.
Namasivayam, K., and Mattila, A. S. (2007). “Accounting for the Joint Effects of the Servicescape and Service Exchange on Consumers’ Satisfaction Evaluations”. Journal of Hospitality & Tourism Research, vol. 31, no. 3.
Page, G., and Fearn, H. (2005). “Corporate reputation: what do consumers really care about?” Journal of Advertising Research, vol. 45, no. 3, pp. 305-309.
Strizhakova, Y., Coulter R. A, Price L. L.(2008). “The meanings of branded products: A cross-national scale development and meaning assessment”. International Journal of Research in Marketing, vol. 25, pp. 82–93.
Stroebele, N., and De Castro, J. M. (2004). “Effect of ambience on food intake and food choice.” Nutrition, vol. 20, no. 9, pp. 821-838.
Vida, I. (2008). “The impact of atmospherics on consumer behavior: the case of the music fit in retail stores.” Economic and business review, vol. 10, no. 1, pp. 21-35.
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