The Impact of Digital Technology on Costa Coffee: A Research Project

This research project investigates the impact of digital technology on Costa Coffee, a British multinational coffee house company. The report examines the influence of digital tools and e-commerce on Costa's operations and performance, with a focus on profitability and customer satisfaction. The study includes an introduction outlining the research's rationale, significance, and objectives, followed by a literature review that explores the relationship between digital technology and Costa's profit, the effects of e-commerce, and the dependence of profit on online shopping. The methodology section details the research approach, philosophy, data collection methods (primary and secondary), data sampling, and ethical considerations. The project employs a mixed research approach, inductive reasoning, and interpretivism philosophy to analyze data and generate insights into how digital technology affects the coffee chain. Overall, the report aims to provide a comprehensive analysis of digital technology's role in Costa Coffee's business strategies and outcomes.

Research Project

Table of Contents
TITLE: ............................................................................................................................................1
Chapter One: Introduction ..............................................................................................................1
Chapter Two: Literature Review ....................................................................................................3
Chapter Three: Research Methodology ..........................................................................................5
Chapter Four: Data Analysis and Presentation ...............................................................................7
Chapter Five: Discussion ..............................................................................................................19
Chapter Six: Conclusion, Recommendations and Implications for Further Research...................22
REFERENCES..............................................................................................................................24
Appendix .......................................................................................................................................26

TITLE:
The impact of Digital Technology on Costa.
Chapter One: Introduction
Overview of the Research
Digital Technologies are considered as the most essential aspect for the growth and
success of an organisation, thus technologies are effective in implementing changes in
organisational operations and functions. The digitalization is also refers as one of the key drivers
in the modern century and has a conspicuous impact over an organisation. In the modern trend,
digitalisation has cover a wide area, thus the living of people are also based on digital tools and
technologies. In the organisational context digital tools and technologies are plays vital role in
improvising the operations and production of firm (Berends and et. al., 2014). In this present
investigation work Costa UK is the chosen organisation. It is a British multinational coffee house
company, which operates at global level. The headquarter of the firm is in Dunstable,
Bedfordshire. The company was founded in the year of 1971, with the significant efforts of
Bruno Costa and Sergio Costa in London. The company is widely concern on attaining higher
growth and profitability through suitable use of digital tools and technologies in their
organisational operations. This project contains the study about the impact of digital technologies
over the operations and performance of Costa. In this aim and objectives will be entitled to
providing support to the research in proper manner. In this proper literature review will be
conducted for the intention of overcoming with the cognitive content in effective way in the
manner of justifying the data by determining the views and opinion of assorted communicator
and composers. Along with this suitable methodology will be selected to support the literature
review and data analysis will also be conducted to analysing appropriate findings of the project.
Rational of the Research
The selected field of survey is based on the analysis of the influence of digital
technologies on Costa Coffee. This section of the research is effective in providing suitable
direction to the researcher to implement investigation in right manner (Broekx and et. al., 2011).
In this the issue is based on the execution of digital technologies within the operations of firm,
this recognised as a issue because there is rapid change arises in the technologies and it is not
easy for an organisation to adopt rapid advancement in their operations. However this study is
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effective for researcher as well as learner in developing their idea and knowledge base which
could result in enacting scope for their personal as well as professional development. This study
provides a brief discussion on the area of the impact of digital technologies in improvising the
operations of Costs, this study also provides a brief analysing on the importance of using digital
technologies for the purpose of attaining higher growth and success within the commercial
centre.
Significance of the Research
The inquiry into thought process is based on analysing the effect of digital technologies
on Costa Coffee. The topic of the investigation report is essential because digital technology has
a huge influence over each organisational sector. However its is effective and will bring a
precious attempt to the instant investigation work (Denzin and Lincoln, 2011). Also, Costa is an
essential part in the selling or merchandising of coffee sector and implicitly, in the economy of
United Kingdom. Further more, this is a management research which is effective for people who
are interested in the similar area or the people who re belongs from the area of business
management studies.
Aim Statement:
A qualitative and quantitative analysis of the impact of the digital technology on Costa in
United Kingdom.
Hypotheses:
The testable hypotheses planned are:
H0: Costa’s profit is positively related to the online shopping.
H1: Costa’s profit is positively related to digital technology.
H2: Costa’s profit is positively related to e-commerce.
Research project objectives
The research project is focused on digital technology and its effects, both positive and
negative, on one of the largest multinational coffeehouse in United Kingdom, Costa.
Research Questions:
 What is the relationship between digital technology and Costa’s profit?
 How e-commerce affects Costa in general?
 To what extent the profit is dependent on online shopping in the case of Costa?
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Chapter Two: Literature Review
The relationship between digital technology and Costa’s profit.
According to TCRN Staff, 2019, everyone knows the challenges of running and grading a
businesses. As growth and success are the most important element of every business. Digital
technology refers to the use of all types of electronic equipments and applications that generates,
stores and processes data in terms of positive and non negative data. It has helped in entirely
modifying the business environment. Costa is the nations favourite and fastest growing coffee
shop. So, adoption of digital technology was must for them in order to enhance the productivity
and efficiency to stand out in the competitive market (Fleming and Koppelman, 2016). Use of
digital technology helped costa in building the goodwill through which they can capture high
market share. Digital technology at Costa not only automated different business process but also
helped in exposing new ways of doing business and it saved time as each task would be done
efficiently which reduces human efforts. By adopting digital technology Costa was able to
enhance its customer base and increase its reach in every area so that more and more customers
are aware about the products and services provided by them and which will help in generating
huge amount of profits. For customers sake various Mobile responsive websites, chatbox, social
media platforms and other online services helped them in resolving issues on time, which build a
level of customer satisfaction and reflected in generation of profit.
E-commerce affects costa in general.
According to Carlos J. Costa, 2016, E-commerce is the act of buying and selling and
delivery of goods and services by an electronic means. It promises benefit for the business by
way of reaching new markets. In today's world, it is relatively cheap to run a business, to
successfully run an online campaign, enough budget is needed to sustain for a period of time.
Electronic commerce is progressively and irreversibly changing the face of many business, it will
impact costa in expanding its business, as most of the times customers prefer to visit the store
and have coffee, which will not be effective if e-commerce is there (Geraldi and Lechter, 2012).
E-commerce is affecting Costa as it is not providing services like to order on phone and pay with
the application, which makes it difficult for customers to visit the store and have coffee so
customer think it as time-consuming process. Use of e-commerce at Costa may lead to
distraction of employees which will effect the productivity of workers and will kill the creativity
of employees. It is difficult for Costa to retain the market share, as more flexible competitors are
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entering the market and making fierce competition. To sustain in the competitive market Costa
needs to create such offerings which will help them in gaining the competitive advantage. It can
also affect the relationship between the employees and managers, as there is no one-on-one
communication between them (Glaub and et. al., 2014). With an incredible global reach offered
by e-commerce, range of risk arises which was not even considered. Virtual risk, online
payment, etc. carries a dangerous risk which can put Costa out of business.
The extent to which profit is dependent on online shopping in case of Costa.
According to Heli Hallikainen, 2017, Over the past years Costa coffee's growth has been
moderate, whereas it is currently the leading coffee chain. Costa is one of the leading coffee
chain which does not offer any online ordering service but it has an application which will help
the customers to find out the local stores and loyalty points. Costa will attract more customers
which will help in generating more profit. Profit in case of Costa is not much dependent on
online shopping because costa is not providing such beneficiaries that will attract customers.
They are providing some offers for customers like discounts, vouchers, points, buy one get
online, etc. which will influence only those customers who want to have coffee, not of those who
wants to have while sitting at home. By creating some unique offers for those who wants to have
while sitting at home they can influence them to buy coffee which will result in attainment of
huge amount of profits (Ghobakhloo and et. al., 2012). Business can be profitable if right things
are done rather than chasing numbers, by keeping this saying in mind Costa made corrections by
shutting down shops and renovating them in good locations which are 100% profitable. By
implementation of digital technology at Costa, customers can pre-book their services which will
lead to build satisfaction amongst customers as there is no wastage of time, customers can order
it as and when required. If Costa is able to build satisfaction amongst customers, it will build
goodwill of the brand and will help Costa in generating huge amount of profits.
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Chapter Three: Research Methodology
Type of investigation
The primary duty of a researcher is to assess the kind of research because it helps producing
direction. Investigation can be done in Qualitative, Quantitative or either mixed manner.
Qualitative research is based on spoken or written data (Hirshkowitz and et. al., 2015). It helps in
gaining an in-depth understanding of human attitudes, experiences, behaviours ,etc. Quantitative
Research is based on proving the theories. Data can be collected through surveys. Mixed
Research is the combination of qualitative and quantitative research. In the present study, Mixed
research has been used, as it will help in assessing the accumulated information and perceptions
of human behaviour through which hypothesis can be generated.
Research Approach
A Research Approach is a detailed method of collecting, interpreting and analysing data. It can
be either Inductive or Deductive approach. Inductive approach is used for the emergence of new
theories from the data and Deductive research is used for testing the validity of theories. In the
present study, Inductive approach has been used as the entire research work depends on
subjective means.
Research Philosophy
A Research Philosophy is a belief about the ways in which data can be collected,
analysed and used. It is categorised into two major types i.e., Interpretivism and Positivism
Research Philosophy. Under this research study, Interpretivism philosophy has been used by the
researcher, as it can employ multiple methods in order to reflect different aspects of issues, thus
it will be effective in providing qualitative report.
Data Collection Methods
Data collection is the most essential aspect of research methodology which helps in
gathering and measuring sources in an appropriate manner. It can be done using primary and
secondary sources (Hwang and Lim, 2012). In the present research study, data is collected from
both the sources according to their reasonableness, as primary sources were effective for
accumulation of real data and secondary sources were effective for literature review part.
Data Sampling
Data sampling is a statistical technique which is used to select and analyse data points to
identify patterns and data. It constitutes two types: Probabilistic and Non-Probabilistic Sampling.
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In Probabilistic sampling, every element gets an equal chance to be selected whereas in Non-
Probabilistic sampling , every element does not gets an equal opportunity to be selected. In the
present study,Probabilistic sampling technique has been used by the researcher, since all the
elements gets an equal opportunity to be selected.
Ethical Consideration
Ethical considerations are the norms and standards which are faced at the time of
research. In the present study, a researcher can manage the time, in order to complete the work
effectively (Lakatos, 2014). Under this study researcher can manage the cost and information of
respondents which will help in improving the efficiency of workers.
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Chapter Four: Data Analysis and Presentation
Questionnaires On The Impact of digital technology on Costa
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8

9

1) Which category describes your age? Frequency
Younger than 18; 2
18-24; 8
25-34; 10
35-55; 6
55+. 4
2)What coffee-house do you usually prefer? Frequency
Starbucks; 5
Costa; 20
Caffe Nero; 2
Pret a Manger. 3
10
2
8
10
6
4
Younger than 18;
18-24;
25-34;
35-55;
55+.

3)Do you consider yourself a frequent Costa customer? Frequency
Yes, I do; 25
Sometimes; 2
No, I do not. 3
4) How often you shop at Costa? Frequency
Never; 3
11
25
23
Yes, I do;
Sometimes;
No, I do not.
5
20
23
Starbucks;
Costa;
Caffe Nero;
Pret a Manger.

Once a week or more; 20
Monthly; 5
Less than once a month. 2
5) How do you usually order at Costa? Frequency
In store; 10
Costa mobile app. 20
6) Do you use Costa mobile app for iPhone/Android? Frequency
12
3
20
52
Never;
Once a week or more;
Monthly;
Less than once a month.
10
20
In store;
Costa mobile app.

Yes, I do. 26
No, I do not. 3
Prefer not to answer. 1
7)Are you registered in Costa’s loyalty scheme “Coffee Club”? Frequency
Yes, I am. 25
No, I am not. 3
Prefer not to answer. 2
13
26
3
1
Yes, I do.
No, I do not.
Prefer not to answer.

8) How useful do you think Costa’s mobile app is? Frequency
Very helpful; 22
Helpful; 4
Neither helpful or unhelpful; 2
Not helpful. 2
9) Did you claim any rewards using “Coffee Club” app? Frequency
Yes, more than once; 18
Yes, once; 2
14
25
3
2
Yes, I am.
No, I am not.
Prefer not to answer.
22
4
2
2
Very helpful;
Helpful;
Neither helpful or unhelpful;
Not helpful.

No, but I will claim one soon; 5
Never 5
10) Are you aware of any benefits Costa offers to their loyal customers? Frequency
Earn and spend points; 8
Special invitations; 7
Exclusive offers (VIP); 7
No, I am not aware of any benefits. 8
15
18
2
5
5
Yes, more than once;
Yes, once;
No, but I will claim one soon;
Never
8
7 7
8
Earn and spend points;
Special invitations;
Exclusive offers (VIP);
No, I am not aware of any
benefits.

11) Do you believe digital technology affects Costa... (please explain your
answer)
Frequency
Positively 25
Negatively 2
No effect on Costa 3
12) Do you believe digital technology have an impact on Costa’s profit? Frequency
Yes, positively; 26
Yes, negatively; 2
No effect on Costa’s profit. 2
16
25
23
Positively
Negatively
No effect on Costa

13) Did you visit Costa’s website? Frequency
Yes, frequently; 23
Yes, once or twice; 3
No, I did not. 7
14) How often did you see ads related to Costa online? Frequency
Often; 15
17
23
3
7
Yes, frequently;
Yes, once or twice;
No, I did not.
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2
2
Yes, positively;
Yes, negatively;
No effect on Costa’s profit.

Rarely; 7
Never. 8
15) I frequently use Costa’s Coffee Club mobile app to order and to collect
points.
Frequency
Strongly agree; 15
Agree; 7
Neither agree or disagree; 4
Disagree; 2
Strongly disagree. 2
18
15
7
8
Often;
Rarely;
Never.
15
7
4
2
2
Strongly agree;
Agree;
Neither agree or disagree;
Disagree;
Strongly disagree.

16) How would you rate your level of satisfaction at Costa? Frequency
Highly satisfied; 26
Somewhat satisfied; 2
Neither satisfied nor unsatisfied; 1
Somewhat dissatisfied; 1
Dissatisfied 0
17) How likely is it that you would recommend Costa to a friend? Frequency
Very likely; 15
Likely; 5
Neither likely nor unlikely; 3
Unlikely; 2
Very unlikely 5
19
26
2
11
Highly satisfied;
Somewhat satisfied;
Neither satisfied nor
unsatisfied;
Somewhat dissatisfied;
Dissatisfied

20
15
5
3
2
5
Very likely;
Likely;
Neither likely nor unlikely;
Unlikely;
Very unlikely

Chapter Five: Discussion
Theme 1) People are belongs from different age groups.
Interpretation: From the overall description of the above mentioned graph it has been
interpreted that people from different age group, thus 30 out of 2 people are belongs from the age
group of below than 18, 8 people are from 18 to 24 and 10 respondents are from 25 to 34 or
remaining people are belongs from 35 to 55 and more than that.
Theme 2) Majority of people prefer coffee-house.
Interpretation: According to the analysis of the project it has been founded that people are
preferring different coffee houses as per their own level of interest. 5 out of 30 people go
Starbucks, 20 people are attracted towards Costa, 2 individuals are going Caffe Nero and
remaining people are in favour of Pret a Manager.
Theme 3) Number of people are the frequent Costa customer.
Interpretation: As per the description of the survey report it has been interpreted that 25 out of
30 customers are the frequent users of Costa Coffee. and remaining people are not visiting Costa
at regular basis.
Theme 4) Once a week or more; people shop at Costa.
Interpretation: The detailed analysis of the project determines that majority of people are
visiting Costa Shop once in a week or more.
Theme 5) People are usually using Costa Mobile app to order at Costa.
Interpretation: According to the description of the graph it has been interpreted that 10 out of 30
customers are usually order facilities at Costa store and remaining people are using Costa mobile
app for taking extra benefits of organisational offerings.
Theme 6) People use Costa mobile app for iPhone/Android as well.
Interpretation: According to the detailed analysis of the project it has been discussed that 26 out
of 30 people are use Costa mobile app for their IPhone and Android. 3 people are not using the
app and remaining people are not providing answer on the same.
Theme 7) Number of people are registered in Costa’s loyalty scheme “Coffee Club”.
Interpretation: From the overall analysis of the project it has been identified that 25 out of 30
people are registered their self in the Costa's Loyalty scheme "Coffee Club". Remaining people
are not registered their self as well.
Theme 8) Costa’s mobile app is very much helpful for customers.
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Interpretation: The above mentioned graph represents that 22 out of 30 people said that Costa's
mobile app is very much helpful for customers, 4 simply select helpful and remaining people are
not in favour with the same.
Theme 9) People claim rewards for using “Coffee Club” app.
Interpretation: From the survey report it has been evaluated that 18 out of 30 people said that
yes they claim for rewards, more than once, 2 people said once, 5 people said they will claim for
soon as they are using mobile app facility and remaining people never claim for the rewards.
Theme 10) People are aware of the benefits Costa offers to their loyal customers.
Interpretation: The detail analysis of project represents that people are aware about the offerings
of Costs. 8 out of 3 people are in favour of earn and spend points, 7 people go with special
invitation, 7 people are in favour of Exclusive offers and remaining people are not aware about
any benefits.
Theme 11) Yes majority of people believe digital technology affects Costa.
Interpretation: This project description determines that 25 out of 30 people said that digital
technology affects the operations of Costa positively, 2 people said it has negative influence and
remaining people said it has no impact over Costa's operations.
Theme 12) Yes people have believe that digital technology have an impact on Costa’s profit.
Interpretation: According to the details of graph it has been interpreted that Majority of people
said that digital technology positively impacted on Costa’s profit.
Theme 13) People visit Costa’s website frequently.
Interpretation: As per the analysis of the project it has been interpreted that 23 out of 30 people
are frequently visiting website of Costa, 3 people are using it once or twice and remaining people
never use website for their services.
Theme 14) At regular basis people see ads related to Costa online.
Interpretation: From the analysis of the graph it has been analysed that 15 out of 30 people see
Costa adds often, 7 people said they see adds rarely and remaining people never see the compay's
add.
Theme 15) Yes people frequently use Costa’s Coffee Club mobile app to order and to collect
points.
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Interpretation: As per the description of the chart it has been evaluated that around 22 out of 30
people are using Costa’s Coffee Club mobile app to order and to collect points. 4 people are
sometime using app facilities and remaining people are not using mobile applications.
Theme 16) People provide different ratings as per their own perception related with level of
satisfaction at Costa.
Interpretation: The detailed analysis of the project represents that 26 out of 30 people are highly
satisfied with the offerings of Costa, 2 people are some what satisfied, 1 respondent is neither
satisfied nor unsatisfied and remaining people are unsatisfied with the offerings of Costa.
Theme 17) Very likely people would recommend Costa to their friends.
Interpretation: From the analysis of the survey report it has been interpreted that majority of
people are likely to recommend Costa to their friends as they are highly satisfied with the
offerings of Costa.
Discussion on Secondary Research
Theme 1: The relationship between digital technology and Costa’s profit.
As per the detailed analysis of the project it has been discussed that there is a positive
relationship in between of digital technology and Costa's profit, thus the use of digital
technologies are beneficial for the firm in developing its profitability within the market place.
The section of literature review represents that the company is using online mobile application
facility which helps the firm in developing its operations within the commercial centre. However
the company is attracting customers by offering them extra point benefits which helps them in
enhancing the sustainability of the firm within the commercial centre.
Theme 2: E-commerce affects costa in general.
According to the overall description of the project it has been discussed that the
operations conducted through the facility of E-commerce the performance of firm is increased at
rapid basis. In this modern era the operations of firm are based on digital tools and technologies
in respect to enhancing the operations at large scale and it is also effective in capturing a wide
area of market. E-commerce is affecting Costa as it is not rendering services like to order on
phone and pay with the application, which makes it difficult for customers to visit the store and
have coffee so customer think it as time-consuming process.
Theme 3: The extent to which profit is dependent on online shopping in case of Costa.
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According to the analysis of the issue it has been discussed that, Costa is one of the
leading coffee chain which does not offer any kind of online facilities and products to their
significant buyers but it has an application which will help the customers to generate points and
that helps them in increasing their loyalty. Costa will attract more customers which will help in
generating more profit. Business can be beneficial if right things are done instead of pursuing
numbers, by remembering this maxim Costa made amendments by closing down shops and
redesigning them in great areas which are 100% gainful. By execution of advanced innovation at
Costa, clients can pre-book their administrations which will prompt form fulfilment among
clients as there is no wastage of time, clients can arrange it as and when required.
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Chapter Six: Conclusion, Recommendations and Implications for Further
Research
Conclusion
This is most important and final section of an investigation work which provides a brief
summary as per the overall analysis of the project, thus in this proper discussion has been made
on the overall outcome of the project. As per the analysis of the overall project it has been
concluded that in this modern business environment digital tools are considered as the key aspect
of an organisational growth and success, thus the analysis represents that each small as well as
large business enterprises are widely concern on using digital technologies in respect to attaining
higher growth and success within the market place. In this modern business era competition is so
high within market place and organisation are using digital technologies like social media,
mobile applications, internet or things, cloud technologies etc. in respect to increasing
opportunities for firm at global level. In this competitive era the potential motive of businesses is
to attaining higher growth and expanding their business operations at wide scale in respect to
reaching at the higher competitive edge.
Recommendation
The selected area of study is based on the analysis of the impact of digital technology on
Costa, Thus the implementation of digital technology has positive influence on the overall
operations of firm. From the detailed analysis of the project it has been recommended that Costa
operates at wide scale and provide online application facility to their customers in respect to
providing them points that helps them at the time of visiting the Costa. The company should
make changes in their applications as per the alteration arises in technology. Company should
also analyse the market in respect to making their offerings more effective. Costa should also
make alteration in their online application, thus to providing benefits to their regular customers
in terms of money or points. Company should also use easy access type on their online
applications, so that people can easily apply them for taking advantages of organisational
offerings.
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Chapter 7: Reflection
The research into consideration is based on the analysis of the impact of Digital
Technology on Costa. It is a wide area of research which helps an individual and learner in
enhnacing their idea and knowledge base base in regards to the area of digital technology as well
as in the field of research project. From the brief analysis of the overall project I have been
consider that there are multiple methodologies are used by researcher in respect to proper
execution of investigation work. As per my observation it has been found that methodology is
the most effective section of investigation which plays vital role in providing support to the
overall work. The present investigation work is based on mixed method thus I have been found
that in this qualitative as well as quantitative methods are used by the researcher to carry out the
investigation in right direction and drawn a positive outcome. Descriptive research design is also
effective in providing detailed analysis on both methodologies, I have also recognise that
interprtivisim philosophy was applied for the manner for developing a proper outcome via the
analysis of the opinion of various authors and writers. Along with this primary as well as
secondary sources were effective in execution of qualitative and quantitative investigation.
According to my observed area I have been understand that in the current research project
secondary tool is used by the researcher for the execution of the part of literature review in
efficient way by gathering data through books, journals, online sites, past research project etc. on
the contrary primary tool is used by the investigator for the intention of conducting primary
investigation with the help of setting up a survey in which data has been collected by fulfilling
questionnaire from the respondents who are basically designated for collection of specific subject
matter and data.
Alternative method
In an investigation data accumulation is the major aspect because the overall
investigation is based on data which are accumulated by the researcher. Primary information
plays vital role in drawing a valid and accurate outcome and this is being gathered through
various sources like survey, observation, focus group, interview etc. In this existing investigation
work questioners is used because, Questionnaire is the best and most suitable source of primary
data collection as with the help of this tool researcher is able to gather valid and actual
information. Researcher can also use another method for accumulation of data and in the area of
wide research interview is considered as the best alternative tool for collection primary
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information, however this is a reliable method which helps a researcher in accumulating small
range of data as in this information is gathered by the people on personal basis, thus in this a
personal interview session is designed for accumulation of actual and fact-full information.
Area for Further study
The considered project is based on the influence of digital technology on Costa Coffee
UK. This is a wide area of research which provides a proper discussion on the selected area. The
major reason behind conducting the research is the personal interest of researcher, thus this
investigation helps the researcher in attaining growth and success in their personal as well as
professional life. With the help of this research the data collection ability of an individual has
increased which helps them in conducting their future project related with similar area of study
in more appropriate manner.
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