Customer Satisfaction Study: Costa Coffee Performance Analysis Report

This report presents a study of customer satisfaction at Costa Coffee, examining various aspects of customer behavior and the company's performance. The introduction highlights the importance of customer satisfaction for business growth, especially in the competitive UK coffee market. The literature review explores factors influencing customer satisfaction, drawing on existing research to provide a theoretical framework. The methodology section describes the research approach, including the use of interpretivism, descriptive research, and a combination of primary and secondary data collection methods, such as surveys and online resources. The findings section analyzes data on customer visiting frequency, satisfaction with product quality, and overall customer opinions. The report concludes with recommendations for Costa Coffee to improve customer satisfaction and maintain its competitive edge. The analysis of the data reveals that majority of the customers are satisfied with the products and services offered by Costa Coffee and are regular visitors of the coffee shop. The report also highlights areas for improvement, such as addressing the concerns of dissatisfied customers and exploring ways to enhance product quality. The study also determines the relationship between customer satisfaction and business performance.

Study of Customer satisfaction at
Costa Coffee

Table of Contents
1.1 Introduction...............................................................................................................................3
1.2 Factors affecting selection of project.........................................................................................3
1.3Literture review................................................................................................................................4
1.4 Project specification........................................................................................................................5
METHODOLOGY (2.1, 2.2,2.3).........................................................................................................6
DATA ANALYSES AND FINDINGS (3.1).......................................................................................6
RECOMMENDATION.....................................................................................................................12
REFERENCES..................................................................................................................................27
Appendices.........................................................................................................................................29

1.1 Introduction
Background of the research: Customer satisfaction is essential for each and every business
organization in order to maintain the long term growth and development. For this the
business unit is required to conduct feedback by using various tools and techniques. So that
they can improve product performance which can help to increase customer satisfaction.
Coffee industry one of the competitive and attractive sector in the United Kingdom. The
present report is related with customer satisfaction of in the Costa Coffee which the quality of
product and services having a great significant (Ajmal, Helo and Kekäle 2010). In this
context the cited business organization is try to understand various factors which are related
with the customer and its role in the product improvement. The research based on customer
satisfaction of products and services offered by costa coffee implies that all the customers
who are using products and services are generating a rich taste of all the products and
services offered by the company in contrast to other competitors in the market.
1.2 Factors affecting selection of project
Starbucks being the highest among all the cafe coffee outlets still lack a lot of products and
services which are the main unique selling prepositions in the international market for being a
small business organization to that of big organization that caters to all the needs of the
customers from being generated. Therefore, costa coffee has a large number of customers
which have a trust and faith in the company's selling and distribution strategies being
adopted worldwide. All the customers are provided the healthier product with cost effective
basis and these products are available in such a way that every customer gets attracted
towards the product and services and try to buy them at the outlet available with all the
necessary requirements, This customer satisfaction in recent times helps the company to grow
and develop on the grounds of customer being satisfied by the main aim of improving the
level of quality checks which enables them to work and foster the growth of operations at the
management level of development(Bloch, Blumberg and Laartz, 2012). Costa coffee is one of
the leading company in Coffee chain. They conduct their business operations in the United
Kingdom and provide a wide range of products to its customers such as cold coffee, hot
coffee, mineral water, fresh fruit juices etc. They also provide breakfast and a small segment
of meal to its customers. They having large number of outlets approx. 2000 and more 6000
vending machines in the United Kingdom. Today, UK market having a large competition in
the coffee chain which can reducing the company profit and market share. Therefore, this is

the responsibility of the cited business organization is to determine the issues which are
related with the firm;s product and the level of customers satisfaction.
1.3Literture review
Customer satisfaction is an evaluation of difference between prior expectations about the
product and service and its actual performance. It refers the customer attitude towards the
product of the company and its satisfaction level. According to the Maxham (2011),
Satisfaction is the result of purchase where the customer reviews the cost and the return in an
appropriate manner. they feel that the role of customer satisfaction level can help to maintain
the consistency in the business of the company in the long run. Customer satisfaction is
considered as the major objective of every organization which helps in growth and
development of business activities which are being catered at the aim of providing judgment
to customers about the products and services offered by the company (Eckerson, 2010). It is
an outcome of customer rewards and cost which are being analyzed at the consciousness level
of providing all the benefits which are required for customers to grow and develop on the
grounds of better quality and services which are being provided at the level of economic
development. There's always a positive relation between customer satisfaction and profit
maximization that caters the growth of the organization. Through the customer satisfaction
any company can develop its products and services that includes all the rules, regulations and
the methods which are abided by the law code of conduct. According to experts customer
satisfaction is the basic objective of very business organization who wants to grow and
develop on the grounds of product and service development as any product or service which
is being analyzed for the growth and development caters to require all the necessary law rules
and policies that are being used for the satisfaction of product and service development and
it’s a long process as each and every customer is considered equal and important in the
company and if one customer feels that the product or service is not up to the standards then
it can create a negative impact on company's future performance and the ability by which
every new and new customer is considered equal and important just because of the fact that
more customers can bring out the positive change in the company. According to marketing
expert’s customer satisfaction is the main driving force with which every customer has to
undergo by analyzing all the marketing aspects required for development of products and
services (Freeman, 2010). It is considered effectual on the part of products and service to
grow and develop on the grounds of human resource management. So every customer is
treated an equal way other company is treating them if they want to grow and develop and if

they want to earn profit by providing a lot of products and services at affordable cost to the
consumers. Thereby, creating the environments such a way that can enable the company to
achieve new ways of developing business relations. When an organization grows and
develops then all the factors responsible for growth and development like profitability, cost,
human resources, marketing strategies should be considered on the main criteria as each
factor caters the following ways of product and service development. Profitability means that
if any company wants to grow and develop then it should analyze the ways to generate
profits. As profit is the main objective of an organization who is there for serving products
and services to the customers so it must analyses the growth rate, business processes, etc.
Marketing strategies means all the strategies through which each and every product is being
provided to the customers with the objective of product and service development. According
to Bloch, Blumberg, S and Laartz (2012), the role of customer satisfaction is too significant
for a business and its current and future performance. If a company provide a high quality of
service such as after sale service and other aspect, it can transform in to customer loyalty.
Therefore, each and every business is more focused on these issue and tries to develop
customer relationship management system. If a company spend time on various customer
aspects such as after sale service, high product quality, positive response etc. These all are the
parameter of competitive advantage in the market which is too significant for the frim and
meet their short and long term goals and objectives in an effective manner. On the other hand,
various authors said that there is direct relationship between customer performance and
business performance of a company are directly influences. Each and every firm today era,
concentrate on customer centric approach so that they can meet its short and long term
targets.
1.4 Project specification
The main purpose of this report is to identify these issues and try to resolve it in an
appropriate manner. So that they can attain their long term goals and objectives (den Hertog,
van der Aa and de Jong, 2010)
Research questions: The research question of this report is given below:
 Is the customer is satisfied with the firm's product and services?
 Is the company performance is quite good in the UK market?
 Is the any relation between the customer satisfaction and business performance?
Aims and objectives:

 To identify the customer satisfaction level
 To understand the business performance of the company
 To determine the relationship between customer satisfaction and business
performance
METHODOLOGY (2.1, 2.2,2.3)
This is one of the most important chapter of the research which is related with the
research methodology to be used in the proposed project. These are:
Research philosophy: It is one of the most appropriate method to construct an effective
conclusion and in this report interpretivism philosophy has been used
Research approach: There are two types of research can be used in a report. One is
descriptive research and another one is analytical research. In the present report the
descriptive research is used which can help to solved their issues in an effective manner.
Data collection methods: The another aspect in the research methodology is related with the
collection of data (KellerParameswaran and Jacob 2011). There are two types of collection
data one is primary data and another one is secondary data collection. In the current report
both primary and secondary data is to be used. In the primary data the total number of
respondents are 80 selected through random sampling. Questionnaire survey is used for the
collection of primary data from the loyal customers of the company. On the other hand, the
secondary data is collected by the news articles, newspapers, government websites and other
data. With the help to these data it can help to meet the firm's desired goals and objectives in
an appropriate manner. Qualitative data is to be used in this report in order to analyses the
primary data of the company (Kerzner 2013).
DATA ANALYSES AND FINDINGS (3.1)
Theme 1: Customer are visiting Costa Coffee?
When the customers of Costa coffee were asked about that whether they are visit the
coffee shop on the regular basis. The majority of the respondents are replied in the
affirmative. Their opinion was positive of the company and most of the respondents are visit
the store.

Yes No
0
2
4
6
8
10
12
14
16
17
3
Findings: From the geographic representation is has been determined that 17 customers out of
20 are visit the store on the monthly basis. It shows that the company provide a high quality
product to its loyal customer which can help to increase the customer loyalty in an effective
manner. on the only 3 customers who are not visit the coffee ship.
Theme 2: Visiting frequency of the customers in Costa Coffee?
When the questioning to the frequency which is related with visiting of the customer
in the Costa coffee store. There are various customers which are visit the store on regular
basis which is categorizes in to four part. In the first category those customers who visit the
store only single time in a month like that these categories as given below:
One time Two time Three time Four time
0
2
4
6
8
10
12
5
10
2 3

Findings: As per the above given data the most of the respondents visit costa coffee store two
times in a month. 5 customers visit only single time and 2 visitors are visit three times in a
month. There are also 3 customers who visit the store more than 4 times which are the part of
loyal customers of the company. It can help to provide competitive advantage in the market.
Theme 3: Customer satisfaction level of the product at Costa Coffee?
When the question to customers were asked regarding the product quality the most of
the customer are satisfy with the coffee quality and other products. Whereas only few
customers are not satisfied with the customer which needs to improve product quality in an
effective manner.
Satisfied Highly satisfied Dissatsified Highly dissatsified
0
2
4
6
8
10
12
14
Findings: As per the above given information there are large number of visitors who are too
satisfy with the products which offered by the cited business organization. There are 8
customers who chose option one which is related with the satisfaction and there are 8
customers who are highly satisfied with the product which can leads to increase customer
satisfaction. The rest of the respondents are not satisfied with the product in an appropriate
manner.
Theme 4: Customer satisfaction over service quality
This question is related with the service quality. In the coffee industry the level of
service is played a prominent role in the customer satisfaction. Therefore, it is the
responsibilities of the cited business unit is to provide highly quality service to its customer
so that they can attain their long term goals and objectives.

Satisfied Highly satisfied Dissatsified Highly dissatsified
0
2
4
6
8
10
12
14
12
4
2 2
Findings: According to the given diagram, the majority of the customers were satisfied with
the service which is provided by the cited business organization. More than half of the total
customer approx. 68 respondents satisfied and highly satisfied with the such service. They
feel that there are various services which are up to the mark.
Theme 5: Satisfaction of pricing of the product at Costa Coffee.
This question is related with the pricing of the product which offered by the
customers. Price is one of the critical aspects of the success for each and every business
organization. In this context the cited business unit is required to provide an appropriate price
of their product so that they can increase their sales revenue. Most of the respondents are
satisfied with the price which is set by the business organization.
Satisfied Highly satisfied Dissatsified Highly dissatsified
0
2
4
6
8
10
12
14
13
5
1 1

Findings: As per the above give data 13 customers out of 20 respond that they are satisfied
with the price, 5 customers are highly satisfied with these prices. There are only few
customers which are not satisfied with such process. Therefore, it is the responsibility of the
company is to focused on these unsatisfied customers and set their price accordingly.
Theme 6: Modification required in the existing product
When the question asked about to its respondents regarding the changes needed in the
existing offering products of its customers. there are large number of customer who feels that
they want a new product.
16
4
Yes No
Findings: According to the given data there are 16 customers among 20 which want few
changes in the existing product of the company. Whereas only 4 customers who chose option
two which says no. it shows that the cited business organization required that to change their
product which can help to increase customer satisfaction.
Theme 7: Adding new product range in the existing product
This question is related with introduction of new products which can help to satisfy
the customer needs in an effective manner. Most of the customer are want to change new
product in the different flavor of the coffee. Therefore, this is the responsibility of the
company is to provide these products without compromising with the quality of the products.

16; 80%
4; 20%
Yes
No
Findings: According to the given table approx. 90 percent customer wants new food product
which can help to provide competitive advantage in the market.
Theme 8: Customer opinion about the theme of project
When the question was asked to the customers about the new theme which is related
with theme of the project.
Yes No
0
2
4
6
8
10
12
14
16
18
16
4
Findings: As per the above mentioned data, it shows that 16 respondents who wants to add
new theme at the coffee store. On the other hand, only 4 respondents are not agreeing with
such theme.

Theme 9: Customer recommendation.
Interpretation: On the basis of customer response there are only 8 out 20 customer
respondents. They said that costa coffee need to maintain product quality.
CONCLUSION (4.1)
As per the above mentioned report it has been concluded that customer satisfaction played a
prominent role in the long term growth of the company. The present report explained about
the research which conducting for the improve in the customer satisfaction level. It discussed
regarding to various factors which having a large impact on the customer satisfaction and
business performance. With the help of above research, they can have solved these issues in
an effective manner. Research help to collect new and effective information that help to
develop business in the effective manner and help to achieve the goals and objectives of the
company. To collect the actual information and review about the company and their products
and goods of the company if customers are not that much satisfied so easy to improve quality
of them and resolve issues and problems of the customers and give them proper satisfaction
to them.
RECOMMENDATION
Treat them as they are the boss and work according to their requirements that can enable the
organization to develop and grow.
 Focusing on customer satisfaction means that every product or service should be
provided to the customers at the hierarchical level in the economy and it should focus
on providing customers the best services at affordable prices.
 Avoid making customer retention errors means that all the customers are treated equal
and important and every problem should be analyzed for the purpose of providing
equal and effectual working of the organization. So every organization should avoid
making mistakes so that it can deliver best quality products to the customers.
 Management is considered as the major driving force that helps the organization to
grow and develop on the formulation of customer satisfaction.
 Leadership is a technique that the customers to grow and develop on the level of
providing effective and successful evaluation of products being developed on the level
of generating employment.