Abstract
Coffee market in Korea has rapidly grown much more 10 times in the last 10 years. Along with the growth of the coffee market, many studies related to coffee shops have been carried out, but these research subjects focused on large franchis...
Abstract
Coffee market in Korea has rapidly grown much more 10 times in the last 10 years. Along with the growth of the coffee market, many studies related to coffee shops have been carried out, but these research subjects focused on large franchises and foreign companies. And coffee shops selection properties, behavior, customer satisfaction and loyalty have been main topics to researchers. In compared to the studies of the restaurant that provides similar services, the related information mostly can not be found for small budget independent coffee shops.
By applying VMD of the fashion retail stores, this study has identified relations among the repurchase intentions, brand equity and preference. This research results will be a real help to coffee shop business owners and preparers in terms of the appropriate strategic plan for successful coffee shop managements.
The VMD model of coffee shop consists of harmony, trend, attractiveness. And brand equity were composed with brand awareness, perceived quality and brand image.
In this study, VMD factors of coffee shops, brand equity, and brand preference shows as the independent variables, and the repurchase intention as the dependent variables.
The purpose of the study is to know about how much the configuration factors of coffee shop influence to brand equity, brand preference and repurchase intention. In order to verify the mediating effects of brand preference between brand equity and repurchase intention, regression analysis was used. The measurement items already obtained reliability and validity in the previous study, but some modifications were done for the purpose of this study.
Questionnaires were distributed to 550 consumers on a national scale and 517 consumers among them were finally used for SPSS 17.0 statistical program.
The results are as follows.
First, trend, attractiveness among the VMD configuration factors of the coffee shop has a positive impact on the brand equity(brand awareness, perceived quality, brand image). It also shows that harmony has a positive effect in brand image but it's not statistically significant in brand awareness and perceived quality. Second, brand equity have a positive effect in brand preference.
Third, brand preference has a positive effect in repurchase intention.
Fourth, brand preference plays a role as mediators in that brand awareness and brand image impact on customer repurchase intentions. However, perceived quality comes into effect on repurchase intentions just as a part of mediators.
The theoretical implications can be summarized as follows.
First, this study proposes a theoretical basis that can be adapted VMD for coffee shop by identifying the relationship between brand equity and coffee shops through applying the VMD factors to the coffee shops and also presents a new research model by examining the relationship among VMD components of coffee shop, brand equity, brand preference and repurchase intention.
Second, it serves as a momentum to establish clearly the relationship between the brand equity and brand preference by identifying the mediating effects of brand preference in that brand equity has a positive effect in repurchase intention.
Practical aspects of the implications are as follows. First, Development of brand equity and management can be important components for coffee shops by identifying that the VMD configuration factors of the coffee shops have an impact on brand equity.
Second, Attractiveness and Trend among VMD configuration factors have a positive influence in choosing coffee shops so that store atmosphere should be attractively designed, and the menu, interior should be periodically complemented and modified to be suitable for the newest trend.
Third, VMD configuration factors confirmed is not easily changed. Changes need spending time as well as bringing greater burden. Therefore, the appropriate VMD configuration factors must be thoroughly pre-planned before opening of business by choosing the correct target customer group.
Fourth, large franchises and foreign companies have its strengths in scale, locations and brand. The rapid response can be also strong aspect of the independent coffee shops. If the independent coffee shops can appropriately prepare for changes such as menu, seasonal demand, their strengths can be maximized.
Fifth, the different way of campaign should be taken in comparison with large franchises and foreign companies in order to increase brand equity with VMD configuration factors.
Key Words : Coffee shops, VMD, Brand equity, Brand awareness, Perceived quality, Brand image, Brand preference, Repurchase intention.