MKTG861: Starbucks Customer Satisfaction & Qualitative Research Design

This report analyzes Starbucks customer satisfaction in New Zealand, particularly focusing on the introduction of the iconic kiwi flavored drink. It outlines a research design and method for data collection from secondary sources to assess customer satisfaction levels. The study aims to understand customer satisfaction related to in-store experience, the new kiwi flavored drink, and overall perception of quality and price. Findings reveal significant customer satisfaction but also highlight issues such as service delays and high prices affecting Starbucks' market share in New Zealand. The research uses a positivism research philosophy with an exploratory design, relying on qualitative data from journals and internet sources. The report concludes by emphasizing the need for improved service quality and competitive pricing strategies to enhance customer satisfaction and market position.

STARBUCKS CUSTOMER SATISFACTION
ANALYSIS
MARKETING RESEARCH
ASSESSMENT 1: PROBLEM DEFINITION & QUALITATIVE RESEARCH PROPOSAL
STUDENT NAME
STUDENT ID
SUBJECT NAME: UNDERSTANDING MARKETS
SUBJECT ID: MKTG861
DATE DUE
PROFESSOR NAME
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ABSTRACT
Organizations globally are trying to devise their products as well as services to match
customer expectations and satisfaction levels. Product innovation is a technique that is adopted
by companies in order to please its customers. The scope of the following report analyses
Starbucks customer satisfaction levels in general and post the introduction of Iconic kiwi
flavored drink. A research design and method has been proposed to allow suitable collection of
data from secondary sources. Then subsequent analysis of such data has been conducted to arrive
at findings related to the study. The findings of the study reveals significant levels of customer
satisfaction, however there are delays with services once order is placed and high prices which is
responsible for lower share of market for Starbucks New Zealand.
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Table of Contents
ABSTRACT....................................................................................................................................2
1.0 INTRODUCTION................................................................................................................4
2.0 PROBLEM DEFINITION.........................................................................................................5
2.1 Research Objectives.............................................................................................................10
2.2 Research Questions..............................................................................................................10
2.0 RESEARCH DESIGN........................................................................................................11
3.0 SECONDARY FINDINGS................................................................................................12
4.0 RESEARCH METHOD.....................................................................................................16
6.0 CONCLUSION........................................................................................................................17
7.0 REFERENCE LISTS...............................................................................................................19
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1.0 INTRODUCTION
Organizations globally are striving to adopt innovation and other means to achieve customer
satisfaction (Grewal, Chandrashekaran, & Citrin, 2010). Customer satisfaction drives sales and
profitability which in turn is provides companies with growth. Market research methods are
adopted such that customer satisfaction can be attended. Market research methods encompass
diversified means and methods for collecting country wise data and then industry factor data.
Internal capability analysis of the Company also needs to be conducted to understand, the
company’s capability to grow and expand their businesses. The scope of the current analysis
deals with Starbucks coffee shop in New Zealand.
Figure 1: Starbuck's Global Presence
Starbucks Corporation is an American coffee company founded in Seattle, Washington with
currently worldwide operations. Jerry Balswin, Zev Siegl and Gordon Bowker are the founding
members of the coffee store and currently Myron E. Ullman is the Chairman, Mellody hobson is
Vice Chairman and Kevin Johnson is President and CEO for the Company. The Company’s
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worldwide revenue earning is US$22.387 billion as of 2017 with over 238,000 employees. The
New Zealand branch of the Company’s business is profitable however is faced by intense
competitive pressures which forces it to devise innovative products. In New Zealand, product
development department has introduced kiwi flavored drink (Eisingerich, Auh & Merlo, 2014).
Hence the scope of this study encompasses research methods and procedures to understand if the
product will be able to provide customer satisfaction through data collection methods.
2.0 PROBLEM DEFINITION
New Zealand is a rapidly developing economy characterized by open markets. Globalized
firms are easily able to set up their operations in New Zealand given the easy requirements of
setting up business in the country (Marinova, Ye & Singh, 2008). The government within the
country is also providing impetus to local entrepreneurs to establish business with ease of access
to funds and loan facilities. This has led to emergence of a number of indigenous coffee stores in
the country.
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Figure 2: New Zealand's Environment Analysis
Source: Author
Due to large number of coffee shop presence and limited population, companies within
the country face tremendous competition (Jacobson & Mizik, 2009). Due to industry rivalry
amongst coffee stores within the Country, Starbucks, which is global player in coffee and
beverage business in order to emerge as a leader in the country continuously innovates products
and services.
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New
Zealand's
Macro
Factors
Political Factors:
Low Bureacratic
Interferance
Economic Factors:
Stable markets,
currency, WPI
Social Factors:
Stable Population
Presence of Young
demographcis
Techological Factors:
Updated technology
4G and Ecommerce
Legal Factors:
Good Judicial System
Conduccive Labor
Laws
Environmental
Factors:
High consciousness
regarding environemnt
Sustainability Driven

Figure 3: Coffee Shops in New Zealand
Source: Google Maps
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Figure 4: Industry Competition
Source: Author
Recently the Company has introduced kiwi flavored drink. Introduction to its menu is
done often in order to gain customer surprise and satisfaction. However in this current menu
introduction a survey of customers has to be conducted to so as to understand whether customer
is satisfied or not (Kim & Seoung, 2011). The problem definition here includes identifying
customer satisfaction rates with the new menu, in order to determine such research objectives
and research questions needs to be defined in detail as given below.
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Industry
Rivalry:
High
Bargaining Power of
Buyer's :
High
Threat from
Substitute Products:
Medium (Tea/ Drinks
& Beverages)
Threat from New
Entrant:
High
Bargaining Power of
Suppliers:
Medium (Suppliers
of coffee)

Figure 5: Starbucks Position in the Market Quality/Price
Source: Author
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C4
Coffee
Raglan
Roast
Tahunanui
Starbucks
The Hanger
People's
Coffee
Roastery

2.1 Research Objectives
In order to attain aims of the research which is as given below, there are various
objectives that needs to be attended to;
Research Aim: Understand Customer Satisfaction from the newly introduced kiwi flavored
drink
Below are some of the research objectives;
 Research Objective 1: To analyse satisfaction of Starbucks customer related to their in-
store experience
 Research Objective 2: To analyse satisfaction from introduced local flavor Iconic Kiwi
Starbucks drink Research Objective 3: To understand overall customer perception related to Starbucks
quality and price
2.2 Research Questions
In order to attain to the research aims and objectives, the following research questions needs
to be adhered to.
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 Research Question 1: What is customer satisfaction of Starbucks in their in-store
experience?
 Research Question 2: Are the customers satisfied from newly introduced local flavor
Iconic Kiwi Starbucks drink?
 Research Question 3: What is the overall customer perception related to Starbucks
quality and price?
2.0 RESEARCH DESIGN
The proposed study will be conducted using positivism research philosophy with
exploratory research design (Brannen, 2017). This study through exploratory research design,
will aim at exploring research questions to arrive at final and conclusive solution to arrive at
existing problems. The scope of the current research design is not directed at providing
conclusive evidences however, it will allow analysing the existing problem in a better manner. In
this study Starbucks has comparatively lower position within coffee stores in New Zealand, in
spite of its global dominance in coffee business (Tu, Wang & Chang, 2012). Through analysis of
customer’s perception related to its newly introduced product, its overall in-store perception and
understanding its price and quality perception will allow the Company to extend its products in a
better manner.
Qualitative data had been mostly collected for the study from sources secondary in nature.
Primary sources had not been resorted to by the scholar due to lack of time and resources to
establish the study (Neuman, 2013). Through secondary data collection from journals and several
internet sources, the study has been developed and sourced. The Company will be also able to
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extend its brand perception in an enhanced fashion. This study through exploratory research will
provide basis for more conclusive research, which in turn will allow tacking new problems
regarding this study. This design will allow developing range of solutions for research problem
to be identified (Rothman, Greenland & Lash, 2008). This design was selected due to its
capability to adapt and be flexible and providing groundwork for future studies to take shape.
3.0 SECONDARY FINDINGS
Data collected from sources secondary in nature to arrive at the certain findings related to
the study. The findings for the study had been developed using qualitative analysis from the data
collected relating them to research questions (Chua & Banerjee, 2013). Through exploratory
design answers to the research questions helped reveal the following secondary findings related
to the study.
 Research Findings 1: Customer satisfaction of Starbucks in their in-store experience
Collection of several data collected from journals and internet sources revealed that in-store
experience of customers was connected to SERVQUAL (Hafeez & Muhammad, 2012).
SERVQUAL includes identifying tangibles, reliability, responsiveness, assurance and empathy.
o Tangibles: Starbucks coffee shops have glass walls which allows see-through. All
stores of Starbucks have parking facilities so that customers can easily park their cars.
The store layout is neat and kept tidy with wooden furnishing. The walls are painted
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