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Research project presentation

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Tinnie Leung

on 19 November 2013

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Transcript of Research project presentation

(cc) photo by Metro Centric on Flickr
(cc) photo by Franco Folini on Flickr
(cc) photo by Metro Centric on Flickr

The concept of service quality
Measure service expectations
Emphasize information quality
Capture customers' words
Link service performance to business results
Reach every employee
of Service
Different Target market for McCafé and Starbucks
Starbucks is a premier specialty coffee brand
Position itself as an upscale brand and differentiate its offerings as being not just coffee products, but rather a rich "experience". This Starbucks "experience" has been the company's selling point.
Between office and work
Young college students
Social classes and neighborhoods
Receptive to the idea of buying $35 a cup of coffee
Spending time with friends at their stores.

Theory of Reasoned Action

Suggestions for future research

The topic was a good one but because of its limitations and/or outcome, there is a need
for further research. Because the study did not consider employees who provide the
services to customers; further research could be to study relationship among customer satisfaction, service quality and job satisfaction.

Another further study could be to test among the dimensions with the use of another statistical method to see which of them will be more important to service quality and/or customer satisfaction.
1. To evaluate the
concept of
service quality.

2. To discuss customers expectations before and the satisfaction after they purchase coffee in two different coffee shops.
3.To evaluate the different target market for these two coffee shops.
The aim of this report is to evaluate the service quality factor influencing the satisfaction of coffee shops:
4.To evaluate the future of these two coffee shops
Providing quality service is considered an essential strategy for success and survival in today's competitive environment.
A case study of McCafé and Starbucks in HK.
1. The Reasoned Action Theory
(Fishbein & Ajzen, 1975) supports the hypothesised relationships between perceptions, attitudes and intention behaviour.
2.The concept
of Lifestyle
(The Applied Psychology of Business Management) provides the rationale to how a person lives. It is how one enacts his or her self-concept
3. Maslow's Theory of Needs Hierarchy
4. The theory of consumer loyalty
(Kaj Storbacka, Tore Strandvik, and Christian Grönroos 1994) provides the rationale to attract the right customer, getting them to buy, buy often, buy in higher quantities and bring even more customers.
1. Sampling Population:
Customers within McCafé and
Starbucks in Queen’s Road,Central.
And also develop a survey in the internet.
2. Sampling Technique:

Stratified sampling
65 interviewees
including 4 different classes:
High School Students,Young Blue-collar worker,Middle-aged professionals and retired
3. Sampling size:
Theoretical framework and proposed model
The important factor(s) will be considered before interviewees are making a decision
of the coffee shop
Choosing McCafé or Starbucks because of the quality of service for different classes

The expectation of customers before they are choosing coffee shop McCafé or Starbucks
Taste of food and drink
The expectation of service that customers before they are choosing coffee shop McCafé or Starbucks
McCafé is the second line of McDonald's
The world's largest chain of hamburger fast food restaurants, Headquartered in the United States.
McDonald's opened McCafé in Hong Kong
Offers a wide variety of cakes, pastries and muffins, as well as specialty coffee and tea.
Background of
Background of
Starbucks Coffee began in 1971.
The first store in Seattle’s
In May 2000 Central's Exchange Square in HK
More than 100 stores across Hong Kong's commercial, shopping & entertainment and residential areas.

Research of interviewees are satisfied with the service of McCafé after purchasing
Research of interviewees are satisfied with the service of Starbucks after purchasing
Completely Dissatisfied
Completely Dissatisfied
Completely Satisfied
Completely Satisfied
Appreciate coffee in low price (HKD14 up)
Enjoy McDonald's food at the same time

The average price of interviewees
spend in McCafé per time
The average price of interviewees
spend in Starbucks per time
Intention behaviour
Beliefs are defined as subjective perceptions of the consequence if an individual consumes the product.

Sensation and Perception
For example: Scents, Sound, Exposure, Touch and Taste these five sensations and perceptions in coffee shop.
This is the first hint of how the coffee will taste. In fact, most of the sense of taste actually comes from the sense of smell – which is why coffee can smell so sublime and taste so satisfying.

Jazz and light music will be played in store.
Lighting will be dimmed to warm yellow.
Coffee bean~
Customers can touch the coffee beans in store.
This is the all-important melding of Scents, Sound, Exposure, Touch that creates an overall impression. The flavor of the coffee remind of customers.

Maslow's Hierarchy of Needs
Examining customer loyalty
Kano's model cites three levels of requirements:
1.Must be requirements;
2.Satisfier requirements; and
3.Attractive requirements.

Literature review
Hypotheses based on Maslow's Hierarchy of Needs
According to Maslow's Hierarchy of Needs (Maslow, 1943, 1970), people have innate desires to satisfy a set of needs such as physiological needs, security needs, belongingness needs, esteem needs and self-actualisation needs. Needs of knowledge/understanding and needs of aesthetics are later augmented (Maslow, 1987). Maslow believes that these needs are arranged in a hierarchy of importance. Individuals prioritise basic physiological needs, moving with increasing incomes to the higher order of needs (Trigg, 2004). Although past studies reveal that the needs hierarchy is not always present, these theories still provide a general framework for categorising and prioritising needs (Wahba & Bridwell, 1976), and are commonly used by marketers in market segmentations (Schiffman & Kanuk, 2000).
In this paper, product quality is supposed to fulfil the basic needs such as physiological needs and security needs. Service satisfies the social needs such as belongingness and esteem needs. The experience is accordingly to fulfill the even higher level of needs, such as self-actualisation, knowledge/understanding and aesthetics. People with more income are assumed to be willing to pay the price for experience to satisfy the higher level of needs. As a result, this paper hypothesises that the impact of product quality, service satisfaction and experience on perceived value would be different across income levels.



The objective of this study was to evaluate the service quality factor influencing the satisfaction of coffee shops: McCafé and Starbucks in HK.
From the result section; the individual results showed that the research questions were answered by each of customers.The research was able to expose service quality with the relationship between service quality and customer satisfaction because there was a significant relationship between service quality and customer satisfaction, this could mean that, relationship between customer satisfaction and service quality might be depending on service quality dimensions. Thus, there could be relationships among customer satisfaction and service quality, but customers of service sectors might be satisfied because of reasons other than service quality.
Strategies to Renew the “Starbucks Brand Name”
Advertising and Promotion

Coffee Variety and Quality Control for McCafé

Strategies to Build and Retain Customer Loyalty both of McCafé and Starbucks
Service quality in the management and marketing literature is the extent to which customers' perceptions of service meet and/or exceed their expectations, for example as defined by Zeithaml et al. (1990), cited in Bowen & David, 2005, p. 340) Thus service quality can intend to be the way in which customers are served in an organization which could be good or poor.

Parasuraman defines service quality as “the differences between customer expectations and perceptions of service” (Parasuraman, 1988). They argued
that measuring service quality as the difference between perceived and expected service was a valid way and could make management to identify gaps to what they offer as services.
The aim of providing quality services is to satisfy customers. Measuring service quality is a better way to dictate whether the services are good or bad and whether the customers will or are satisfied with it.
Since customer satisfaction has been considered to be based on the customer’s experience on a particular service encounter, (Cronin & Taylor, 1992) it is in line with the fact that service quality is a determinant of customer satisfaction, because service quality comes from outcome of the services from service providers in organizations.
The study used a convenience sample, although an advantage of this kind of sampling technique is that the study could provide springboard for future research or allow links to be forged with an existing finding, there is a limitation in that the study can not be generalized. (Bryman & Bell, 2003, pg 105). Some of the limitations of the study were that; although service quality also involves employees, the study did not consider the employees. Also, the study could only test the service quality dimensions separable which it could have combined them as one variable also and test to know which the most important dimension is.
Thank you
Research Project
Hong kong Block

Presented by Tinnie Leung Shuk Ting

Do interviewees are satisfied with the service of McCafé and Starbucks?
Books and Articles
Agresti, A & Finlay, B (2009) Statistical Methods for the Social Sciences. 4th edition.
New Jersey, Pearson Education, Inc.
Anderson, E.W., Fornell, C., & Lehmann, D.R. (1994), customer satisfaction, market
share and profitability: findings from Sweden, Journal of Marketing, 58(3), 53-66
Barbara R. Lewis (1993) Marketing Intelligence & Planning, MCB University Press,
11(4), 4-12. 0263-4503
Bennett. R and Barkensio A. (2005) Relationship quality, relationship marketing, and client
perceptions of the levels of service quality of charitable organisations, International
Journal of Service Industry Management , 16(1) 81-106
Boulding, William, Ajay Kalra, Richard Staelin, and Valarie A. Zeithaml (1993) , A
Dynamic Process Model of Service Quality: From Expectations to Behavioural
Intentions, Joumal of Marketing Research, 30, , 7-27
Fishbein & Ajzen, 1975
The Applied Psychology of Business Management Maslow, 1943, 1970,1987
Kaj Storbacka, Tore Strandvik, and Christian Grönroos 1994
Woodruff, 1997 Trigg, 2004 Wahba & Bridwell, 1976
Schiffman & Kanuk, 2000 Majumdar (2005) Oliver (1997) Uncles et al., 2003
Jacoby and Chesnut (1978) Dick and Basu (1994) Terblanche and Boshoff, 2006
Crosby and Johnson (2004) Terblanche and Boshoff (2006)
Gustafsson et al. (2005) Anderson and Weitz, 1992 Muthuraman et al. (2006)
Sivadas and Baker-Prewitt, 2000 Reichheld et al., 2000 Berman (2005)
Constantinos N. Phellas, Alice Bloch and Clive Seale2011 Encyclopedia.com 2009

Web sites
David Armano (April 2009)Logic+Emotion:
Available via:
[Retrieved: October 09, 2009]
DeLayne Stroud J. (2000-2010) isixsigma.com
Available via:
[Retrieved: January 26, 2010]
NBRI (2009) Customer Survey White paper:
Available via:
[Retrieved: October 27th, 2009]
Piet Levy, (2009, p. 6),
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