As coffee market in Korea grows and expands more and more competition between franchise shop and single business shop is getting fierce. As the competition is intensified, single shop owners need to secure their competitive advantage by implementing u...
As coffee market in Korea grows and expands more and more competition between franchise shop and single business shop is getting fierce. As the competition is intensified, single shop owners need to secure their competitive advantage by implementing unique competition strategy that can overcome hostile environments such as brand power, aggressive expansion and partnership strategy of huge franchise business.
Most of researches, however, focus on large coffee brand with major coffee chains and actually small-sized business is not included in research area.
The present study is to find out the competitive advantage of both franchise and single business coffee house, to compare the importance and satisfaction by different customer factors of choice and then, to identify what kind of factors in which features affect customer satisfaction.
Total 477s, out of whole questionnaires distributed, were used for analysis and were sorted by franchise coffee shop and single business coffee shop. As a result, 275 of them were for franchise and the rest 200 of them were for single business.
Here is the summary of the result of the present study:
For age group, young respondents who's in their 20s were the most majority. For frequency of visit, 'once or twice' a week was the most majority(201 out of total respondents) and 'more than 5 times' a week was the least(48).
For average expense, less than '\5000~\7000' shows the largest distribution. For purpose of visit, most of respondents answered that they visit coffee shop to meet their friends or lover.
For factor analysis, 3 factors of importance and 4 factors of satisfaction were extracted, respectively.
To verify the difference between importance and satisfaction, paired t-test was initiated and the importance factor was higher than satisfaction factor in most of the variables.
In IPA analysis, distribution charts of both coffee shops were similar each other.
Only the "catchy praise and menu" and the "offering coupons" shows different distribution.
According to regression analysis, the effect of importance on satisfaction was mostly result in similar consequences but effect of importance of franchise shop on external image shows, none of the factors were affective.