Improvement of Customer Satisfaction Level: A Case Study of Starbucks Café

Improvement of Customer Satisfaction Level 1
Improvement of Customer Satisfaction Level: A Case Study of Starbucks Café
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07 Nov. 2017

Improvement of Customer Satisfaction Level 2
Executive Summary
This study survey is aimed at examining how Starbucks can improve its levels of customer
satisfaction in relation to their competitors. The particular objectives of the study were to
examine the relationship between customer service and customer satisfaction, to determine
the importance of customer service in customer satisfaction, to identify the primary features
of customer service, to determine the effective strategies to eliminate the challenges of
customer satisfaction, and to find out how the level of customer satisfaction can be enhanced
in comparison with its competitors. The researcher used descriptive research design and
questionnaires to gather primary data. Both qualitative and quantitative methods of data
analysis were used, and the findings presented in the form of figures and tables. A total of 20
respondents’ from different competitor companies were surveyed. The experience of
customer service at Starbuck was satisfactory (72%) to most of the respondents. 65% of the
respondents strongly agreed that customer service was very important towards overall
customer satisfaction levels, while 45% considered helpful staff as a significant customer
service feature that would make them satisfied. Half of the respondents (50%) proposed
valuing customers as a strategy for Starbuck towards the improvement of its customer
service. Thus, the study findings showed a significant relationship between customer service
and satisfaction. The primary features of customer service in order of importance were
Helpful staff, Quality products, and Value for money respectively and the most effective
strategy for the improvement of Starbucks’ customer service was helpful staff.

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Table of Contents
CHAPTER ONE........................................................................................................................5
BACKGROUND INFORMATION...........................................................................................5
1.1 Introduction......................................................................................................................5
1.2 Research questions...........................................................................................................6
1.3 Research objectives..........................................................................................................6
CHAPTER TWO.......................................................................................................................7
RESEARCH DESIGN AND METHODOLOGY.....................................................................7
2.1 Introduction......................................................................................................................7
2.2 Research Design...............................................................................................................7
2.3 Qualitative research..........................................................................................................7
2.4 Quantitative research........................................................................................................8
2.5 Target Population.............................................................................................................8
2.6 Sampling technique and Sample size...............................................................................8
2.6.1 Sampling techniques..................................................................................................8
2.6.2 Sample size................................................................................................................8
2.7 Research limitations.........................................................................................................9
2.8 Research reliability and validity.......................................................................................9
2.8.1 Reliability...................................................................................................................9
2.8.2 Validity....................................................................................................................10
2.9 Data Collection and analysis Instruments...................................................................11
2.9.1 Questionnaires.........................................................................................................11
2.9.2 Data analysis............................................................................................................11
CHAPTER THREE..................................................................................................................12
RESEARCH FINDINGS, ANALYSIS, PRESENTATON AND DISCUSSION...................12
3.1 Introduction....................................................................................................................12
3.2 Presentation of Findings.................................................................................................12
3.2.1 Rate of response.......................................................................................................12
3.2.2 Response by gender.................................................................................................13
3.2.3 Response by age bracket..........................................................................................14
3.2.4 Frequency with which respondent visits Starbuck..................................................15

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3.2.5 The most liked Starbuck product.............................................................................16
3.2.6 Customer Service experience...................................................................................17
3.2.7 Importance Of Customer Service In Customer Satisfaction Level..........................18
3.2.8 Customer service features........................................................................................19
3.2.9 Strategies to eliminate customer satisfaction challenges.........................................20
3.3 Summary of the Findings...............................................................................................21
3.3. 1 What is the relationship between customer service and customer satisfaction?.....21
3.3.2 Is customer service important in customer satisfaction?.........................................21
3.3.3 What are the primary features of customer service?................................................21
3.3.4 What are the effective strategies for overcoming the challenges of customer level
satisfaction?......................................................................................................................21
CHAPTER FOUR....................................................................................................................23
CONCLUSIONS AND RECOMMENDATIONS..................................................................23
4.1 Conclusions....................................................................................................................23
4.2 Recommendations..........................................................................................................24
4.2.1 The relationship between customer service and customer satisfaction...................24
4.2.2 Importance of customer service in customer satisfaction level...............................24
4.2.3 Primary features of customer service.......................................................................24
References................................................................................................................................25
Appendix..................................................................................................................................27

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CHAPTER ONE
BACKGROUND INFORMATION
1.1 Introduction
Starbucks café is a common organization that deals with beverages such as Coffee, Consumer
Products, Fresh Food, and Handcrafted Beverages. The consumer goods offered by the
company are grouped into three namely coffee and tea, ready‐to‐drink, and Starbucks Ice
Cream. The company is based in Australia and was launched eight years. The employees of
Starbucks are its key partners. Starbucks café takes into consideration three significant factors
in fulfilling their business responsibility in the market; these include environmental
stewardship, community involvement, and ethical sourcing (Krueger et al., 2014).
The three main competitors of Starbucks in Australia include McDonald's, Local coffee
shops, and Gloria Jens. Since these companies are already established in the market, the
primary challenge that they pose to Starbucks is that they provide their high-quality products
at a relatively low price because of their significant market share. The market of Australia is
multicultural thus customer attraction, and retention becomes complicated. The expected
primary target market of Starbucks is 60% men and women of the age bracket 25-40 and are
attracted by contemporary store design. Secondary target customers are of the age bracket of
18-24 and represent 40% of the adults. The geographical location of the target market in
Australia in Sydney, Melbourne, and Brisbane.
The objective of this survey is to examine how Starbucks can improve its levels of customer
satisfaction about their competitors. To achieve this goal, this study will consider the
relationship between customer service and customer satisfaction, importance of customer
service in customer satisfaction level, the primary features of customer service, effective

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strategies for addressing customer satisfaction challenges and the ways to enhance customer
satisfaction levels.
1.2 Research questions
1. What is the relationship between customer service and customer satisfaction?
2. Is customer service important in customer satisfaction?
3. What are the primary features of customer service?
4. What are the effective strategies for overcoming the challenges of customer satisfaction
level?
5. How can customer satisfaction level be enhanced in comparison to the competitors?
1.3 Research objectives
The main purpose of this research survey is to improve the customer satisfaction level of
Starbucks about its competitors. These are outlined below:
• To examine the relationship between customer service and customer satisfaction.
• To determine the importance of customer service in customer satisfaction.
• To identify the primary features of customer service.
• To determine the effective strategies to eliminate the challenges of customer satisfaction.
• To find out how the level of customer satisfaction can be enhanced in comparison with its
competitors.