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Strategy Innovation for Taza Mia Coffee, Philippines: Service Quality Approach

Prof. Ramon George Atento, MBA,

Faculty of College of Business and Accountancy

Lyceum of the Philippines University-Laguna, Philippines; george_atento@lpl.edu.ph

Christelle Mae Angulo

Student of College of Business and Accountancy

Lyceum of the Philippines University-Laguna, Philippines; christelle.angulo@

Diane Carandang

Student of College of Business and Accountancy

Lyceum of the Philippines University-Laguna, Philippines; carandangdiane@

Paulinne Jane Porras

Student of College of Business and Accountancy

Lyceum of the Philippines University-Laguna, Philippines; paulinne.porras@

Abstract: The study was conducted to propose an enhancement of service quality in Taza Mia Coffee, Sto. Tomas, Batangas, Philippines, a small-scale family-owned company. The findings of the study showed that the expectation, perception, and satisfaction of the customers of Taza Mia Coffee (TMC) to the products and service quality, are significantly related to the quality of the factors, which TMC achieved. Though there are some factors that need to improve, the researchers proposed some recommendations for the enhancement of service quality in TMC. Competitive Profile Matrix was prepared using an online survey of customers of TMC as well as its main competitors in the area. SWOT and confrontation matrix was prepared to ascertain strategic options for the company.

Keywords: Service Quality, Competitive Profile Matrix, SWOT confrontation, Business Strategy

I. INTRODUCTION

The enhancement of service quality is essential, especially in this age of service. Competition among food outlets has become fiercer. Companies need to compete because this is an age of competition, especially on the service side. Consumers not only value products, but also relationship with companies (Atento, 2012). Walker (2013) puts it as buying loyalty with service.

Customer satisfaction is a measure of how products and services supplied by a company meet or surpass customer expectation and defined as the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals.

This study focuses on the enhancement of service quality in Taza Mia Coffee, Sto. Tomas, Batangas. Since Taza Mia Coffee was newly opened last year, the researchers chose to focus on the enhancement of their service quality. The success of the service provider depends on a high-quality relationship with customers (Panda, 2003) which determines customer satisfaction and loyalty (Jones, 2002 as cited by Lymperopoulos et al., 2006). Also, the research has shown that service quality influences organizational outcome such as performance superiority (Poretla & Thanassoulis, 2005), increasing sales profit (Levesque & Mc. Dougal, 1996; Kish, 2000; Duncan & Elliot, 2002) and market share (Fisher, 2001), improving customer relations, enhanced corporate image and promote customer loyalty (Newman, 2001; Szymigin & Carrigan, 2001; Caruana, 2002; Ehigie, 2006. That is the reason for choosing enhancement of service quality rather than the other areas of the business.

Review of Related Literature and Studies

“The coffee-shop industry has been undergoing substantial change during the latter part of the twentieth and early part of the twenty-first century, reflected by continuous changes in consumer behaviour”, as written by Burge (2013). This realization is important for Taza Mia Coffee (TMC), especially since it is operating within the context of this industry that was made popular by Starbucks. Even in the Philippines, the “Starbucks Experience” (Michelli, 2007) is regarded with awe and admiration.

Wolf (2006) notes that almost 100% of tourists dine out while traveling, and Shenoy (2005) supported that food and beverage consistently rank first in visitor spending. These findings suggest one explanation for the major growth of coffee shops (Bishop, 2012).

Services are intangible as they are unable to see, touch or feel, as is clear in Parasuraman et al. (1985). It is said to be perishable because it is unable to store; and inseparable because service are attached to the service provider. Further, it isunsubstantial due to heterogeneousness ;(Hoffman and Bateson, 2002). In Proomprow (2003), it was made clear that the word SERVICE may be understood in the context of ServQual, in that S is Satisfaction; E is Expectation; then, Readiness, Value, interest, Courtesy, and Efficiency. These areas are indeed important to understanding ServQual.

Service quality, developed over time, relates to customer expectations, whereas satisfaction is transaction-specific, as appears in Hernon, Nitecki, and Altman (1999)

Wherefore, satisfaction may be considered short-term measure, and hence, focuses on personal, and emotional reaction to service.

Service quality is comprised of product service, service environment, and delivery of services, or it consists of interaction in physical environment quality and outcome quality. (Karatepe, 2013)

Service quality and Customer satisfaction are one of the basic opportunities which help to run and improve business as well as its profit, and especially gain the loyalty of customers. Good service quality is an outcome of well-organized corporate culture, which in general can be considered as a kind of social culture. (Asya Archakova, 2013)

Service quality must be determined by assuring the external and internal factors of an organization. If there is awareness with the specific content of factors, the more obscure they are considered in the progress of the Service Quality, the greater the probability that it will be effective. (Ronzina, 2010)

Service quality is defined in terms of reducing the gap between the customer expectations and the service provided and expectations is one of the focus dimensions on service quality research (Hernon & Nitecki, 1999). If companies want to increase the service quality, the gap needs to be narrowed.

Service quality is a concept that has aroused considerable interest and debate in the research literature because of the difficulties in both defining it and measuring it with no overall consensus emerging on either (Wisniewski, 2001).

The potential payoff is considerable from an improved quality of service. The goal of every organization is to provide excellent service, which leads to greater efficiency and effectiveness and a loyal customer base (Zeithaml, Parasuraman, & Berry, Delivering Quality Service - Balancing Customer Perceptions and Expectations, 1990).

Hanson (2000) suggested that service quality shows the ability of an organization to meet customer’s needs and desires. So to meet the customer's demand, the business must improve their service. It is found that the perception of customers in the service quality is very significant for managers or owner of a business in competing in the market (Hoffman and Bateson, 2002).

The most widely discussed measure of performance today is the customer satisfaction measurement. The theory is that more satisfied customers will return and patronize the business again in the future. The apparent qualities of customer satisfaction measures are well recognized by companies, and these companies cite customer satisfaction in the mission statement as their primary objective (Lambert, 1999). Service quality is considered very important indicator towards customer satisfaction (Spreng and Machoy, 1996).

In the study of Rapp (1999) about the customer satisfaction through service quality, he found out that customer satisfaction was achieved by the overall performance of the company. The dimension of performance could be distinct as product quality, service quality, reputation, reputation quality, relationship quality and price elements. The main aspect of the marketing relationship approach is customer satisfaction leads to customer loyalty. Therefore, customers demand and satisfaction had been the key to survival and development of organizations.

The study of Opperud, Khalid, Helandera, Xi Yang, Qianli Xua, and Jiao (2008) demonstrated that the Kano model can effectively incorporate customer preferences in product design, while leading to an optimal tradeoff between customer's satisfaction and producer's capacity.

From the book of “Strategic Management” wrote by David, Competitive Profile Matrix (CPM) determines a firm’s major competitors and its distinct strengths and weaknesses in relation to a sample firm’s strategic position. A CPM not just constructs a powerful visual catch point, but it also conveys information about competitive advantage. This tool is the basis for the company’s strategies and is useful to communicate those attributes and show how the competition is addressing them (Borajee & Yakchali, 2011). “The matrix identifies a firm’s key competitors and compares them using industry’s critical success factors”. According to Bullen and Rockart, Critical success factors (CSF) are, "the limited number of areas in which satisfactory results will ensure successful competitive performance for the individual, department or organization. CSFs are the few key areas where “things must go right” for a business to flourish and for the manager's goals to be attained. (Bullen & Rockart, 1981).

Satisfaction means a feeling of pleasure because one has something to achieve, and it is an action of fulfilling the needs, desire, demand or expectation of customers. Every customer compares the cost (price) and benefit (utility) of any product or services. Customers compare their expectations about what they have experienced with the product/services and its actual benefits. This comparison results into three types of customers: (1) dissatisfied customers whom expectations are more than actual performance of the service; (2) satisfied customers whom actual benefits realized from services are equal to or more than expectations; and (3) indifferent customers where actual performance and expectation are exactly equal. According to Bowbrick (2002), achieving higher customer satisfaction does not come without cost. Economic theories argue that a customer is a function of product or service attributes. Increasing customer satisfaction requires higher levels of these attributes and additional cost, particularly at higher satisfaction levels.

Westbrook (1981) reported that the outcome of the evaluation of customers with the experienced linked with a specific service provider is an overall satisfaction. It is observed that the concentration on customer expectations of an organization results into greater satisfaction. (Peters and Waterman, 1982).

The most popular measure of service quality is SERVQUAL, an instrument developed by Parasuraman et al. (1985; 1988). Not only the research on this instrument has been widely cited in the marketing literature, but also it has been quite widespread in the industry (Brown et al., 1993).

According to Berry et al. (1985) and Zeithaml and Bitner (1996) the five specific dimensions of service quality are as follows:

1.Tangibles - the appearance of physical facilities, equipment, staffs, and other written materials.

2.Reliability - the ability to perform the required and promised services dependably and accurately.

3.Responsiveness - the willingness to approach and help customers and to provide prompt service.

4.Assurance - the knowledge and courtesy of staffs and their capability to inspire trust and confidence.

5.Empathy - the caring and individual attention for the customers provide by the business.

A comprehensive service quality measurement scale (SERVQUAL) is empirically evaluated for its potential usefulness in a service environment. Active participation by management helped to address practical and user-related aspects of the assessment. The completed expectations and perceptions scales met various criteria for reliability and validity.

Since its launch in 1985, SERVQUAL has become a widely adopted technology for measuring and managing service quality. Recently, a number of theoretical and operational concerns have been raised concerning SERVQUAL (Francis Buttle, 1996).

“A competitive profile matrix is the basis for company’s strategy and it conveys information about one's competitive advantage and not only creates a powerful visual catch-point. (Bygrave and Zacharakis, 2011). According to Nilsson and Rapp (2005) It is essential; in the development of the firm to understand the processes that lead to the creation of a competitive advantage.

The SWOT Matrix is widely used among both practitioners and academicians of strategic management (David, 2009). This analytical tool utilizes the underlying internal and external factors to generate strategies that would be feasible to consider for a more competitive position of the company.

Service quality and customer satisfaction are important to researchers studying customer's evaluation about the product and services that create competitive advantages and customers loyalty.

In the research “How determinant attributes of service quality influence customer‐perceived value: An empirical investigation of the Australian coffee outlet industry” of Po‐Tsang Chen from Department of Hospitality Management, Ming Chuan University, Gui‐Shan, Taiwan and Hsin‐Hui Hu of Department of Hospitality Management, Ming Chuan University, Gui‐Shan, Taiwan, they investigated empirically how the determinant attributes of coffee quality, service quality, food and beverage, and extra benefits influenced customer‐perceived value in the coffee outlet industry. The study found that factors of determinant attributes of service quality significantly influenced functional and symbolic dimensions of perceived value with the former being related with coffee quality, service quality, and food and beverage, whereas the latter is positively related with coffee quality, food and beverage, and extra benefits.

In a similar research by Atento (2012), they evaluated the current operations of the two branches of The Park – the Calamba and Tanauan branches. The goal of the study was to determine the current and future needs and to present strategic and specific recommendations to improve the operations of the park and improve the customer perception of The Park’s product and service. The study proved how important the areas are in assessing service quality perceptions and expectations in order to gain successful operations of the business. One of the strategies that they use is the SWOT Analysis and the Confrontation Matrix of SWOT resulting in the effectiveness of this environmental analysis in enhancing business operations, products and services.

It is most important to have some understanding about consumer expectations, how such expectations develop, and their significance related to service quality. “Knowing what customers expect is the first, and possibly most critical step in delivering service quality” (1994). However, expectations have been variously defined as wants, desires, ideal standards, normative expectations, what is the offered service, and a pair of accurate standards composes what the consumer expected to receive and acceptable service.

The thesis written by Josephine R. Ignacio – Cosino (2006) in “Service Quality of a University Foodservice Expectations and experiences of Students” used SERVQUAL as an effective quality tool concerning service quality. The study concerns about maintaining the ability to provide high-quality service of the Leslie Hardinge Library by determining the quality of its service from the quality of the service from the perspective of users. Also, they determined if the instrument that was used in the study that is SERVQUAL, is a reliable and valid tool in evaluating service quality in the context of a library based in the Philippines. The study found out that SERVQUAL is a reliable tool in assessing service quality in the LHL as shown by the high internal consistency of its construct/dimensions. However, these construct/dimensions did not hold fast as indicated by the three-factor solutions produced from principal axis factoring.

A research about” Taiwanese tourists' perceptions of service quality on outbound guided package tours: A qualitative examination of the SERVQUAL dimensions” of Jui-Chi Chang was a research also proved by SERVQUAL method. Guided package tours are popular for certain market segments and represent a significant tourism market. However, research on service quality in guided package tours is rather limited. This research used a modified SERVQUAL dimensions to evaluate travelers’ perceptions of service quality on the guided package tour. SERVQUAL has been widely used in various disciplines including numerous studies in the hospitality and tourism industries and has received considerable recognition in service marketing. Some have found empirical support for the five dimensions, but some question the five service dimensions. Instead of using traditional questionnaire surveys, this study used qualitative approach to gain an insight into tour participants' views. The study found that the dimension of `tangibility' was less significant when compared with other dimensions in terms of customers' perceptions of service quality. Other elements such as `communication' and `sociability' were critical when applied to the travel industry in a particularly ethnical group

The research about “Service improvements in Public Services using SERVQUAL” by Alexandria Brysland and Adrienne Curry also talks about SERVQUAL as a tool for the Public service quality improvements. This paper begins by explaining the new context in which public services are delivered and why improving service quality is especially relevant. The SERVQUAL model has been used in a number of public service environments to assess the quality of service provision in terms of what consumers expect and what they actually receive. A particular advantage of SERVQUAL is that it is a tried and tested instrument that can be used comparatively for benchmarking purposes. The two service case examples featured in this paper illustrate the use of the SERVQUAL instrument to improve both process management and strategic planning in North Lanarkshire Council. Expectations, perceptions and gap scores are compared, and their significance interpreted.

According to Mik Wisniewski, (2001), using SERVQUAL to assess customer satisfaction with public sector services, the UK Government’s Best Value initiative is intended to ensure that local authorities provide best value in service delivery and emphasizes the importance of ensuring a clear customer/citizen focus across all services. Local authorities are already using a variety of methods to capture the voice of the customer, with customer surveys being one of the most popular. Such surveys, however, have tended to focus solely on customers’ perceptions of services and not their expectations. The paper presents the results of using an adapted SERVQUAL approach across a range of Scottish council services.

According to the research study of Elizabeth J. Siapco about “Factors Influencing Customer Satisfaction of selected College Cafeteria”, it determined which variables best predict the likeliness of customer satisfaction. In the findings of the study, majority of the respondents indicated that they are more likely to be satisfied if the cafeterias will focus on employee service, quality of food, food variation, ambiance of place, serving time and realistic in setting the price.

Researchers have started to develop on process by which delivering high quality of product and influence of quality of services through customer satisfaction. Satisfied customers are more willing to pay for the experienced they have received and were more likely to come back and recommend the products and services to other consumers.

II. METHODOLOGY

The method emphasized the perception of the respondents from Taza Mia Coffee, Sto. Tomas, Batangas City, particularly the customers and patrons of Taza Mia on the service quality of the business. Taza Mia Coffee, Sto. Tomas Batangas started its business last year, December 8, 2013 and they have two other businesses located at San Pablo City, Laguna which is the main and the newly built Taza Mia Coffee in Cabuyao City, Laguna. The researchers chose the business location because it has a well geographic investment of business and, therefore, there is a growing population of 124,740 customers who will be the respondents of the study.

Research Instruments

Primary information was gathered with the aid of a set of specially-designed survey questionnaire which will be answered accurately by the customers and patrons of Taza Mia Coffee.

The researchers collect the data to determine the importance of service quality of Taza Mia Coffee in Sto. Tomas, Batangas. The following are the factors affecting the service quality: Taste and Flavor of food, Variety of offering, Reasonable prices, Presentation of food, Waiting time for order, Ambiance, Grooming and appearance of staff, Friendliness and Courtesy of staff, Promptness and efficiency, Wi-Fi Connection, Restroom, Queuing, Security, Facilities and Equipment (Ex. Ventilation, Tables and chairs), Accessibility and Parking. This method of data collection is more accessible and could attain more data because respondent’s replies will supply the necessary information to complete the research study.

Data Gathering Procedure

The study observed the following procedure. The researchers presented a proposal and asked permission from the owner and manager of Taza Mia Coffee to conduct a study.

Before the questionnaire was formulated, a thorough reading and review of survey sample pertaining to service quality, customer expectation, perception and satisfaction was conducted. The researcher designed a set of questions for the customers and patrons of Taza Mia Coffee.

In gathering the data, survey questionnaires was given to the customers and patrons of Taza Mia after they finished their food, the retrieval of the questionnaire from the respondents was through the help of the Team Leader and other staff of Taza Mia Coffee, respectively.

Then the answers of the respondents were tallied to come up with results. Data gathered were then collated, summarized, analyzed and interpreted.

III. RESULTS

This deals with the presentation, analysis and interpretation of the data gathered out of the instruments used in the study to find out the perception, expectation and satisfaction of customers as to service quality of Taza Mia Coffee. The succeeding sections show the information that would eventually answer the problem statements.

Table 1. Distribution of Respondents in terms of importance of the areas

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Table 1 shows the distribution on how important are the following areas to customers. The Wi-Fi Connection having a weighted mean of 3.93 is the lowest among the other areas which interpreted as important and the Taste and Flavor of food having a weighted mean of 4.69 is the highest among the other areas which interpreted as the most important factor in satisfying the customers. Most of the answer of the respondents according to those areas is important which results to average weighted mean of 4.46.

he survey questionnaire: 5-Most Important, 4-Important, 3-Important or Not Important, 2-Not Important, 1-Least Important.

Table 2. Frequency Distribution of Respondents in terms of visit

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Table 2 presents the times of visit of respondents. There were 45 respondents wherein, 6 respondents visits daily comprised of 13.33%, 14 respondents visits weekly comprised of 31.11%, 12 respondents visits once a month comprised of 26.67%, 4 respondents visits two to three times a month comprised of 8.89%, 1 respondents visits once a year comprised of 2.22%, 8 respondents visits less often comprised of 17.78% of the total respondents. It shows that there were more weekly visitors in Taza Mia Coffee.

Table 3. Frequency Distribution of Respondents in terms of Budget

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Table 3 shows the budget of the respondents whenever they go to Taza Mia Coffee. A budget of less than 50 pesos has a frequency of 0 with the percentage of 0%, a budget of 50 to 100 pesos has a frequency of 1 with the percentage of 2.22%, a budget of 101 to 200 pesos has a frequency of 9 with the percentage of 20%, a budget of 201 to 500 pesos has a frequency of 26 with the percentage of 57.78%, and a budget of 501 to 1000 pesos has a frequency of 9 comprised of 20% of the total respondents. It shows that there were more respondents have a budget of 201 to 500 pesos with the percentage of 57.78%.

Table 4. Frequency Distribution of Respondents in terms of Price

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Table 4 shows that 40 respondents answered that the price is affordable with the percentage of 88.89%, and 5 who answered that the price is expensive with the percentage of 11.11% of the total respondents.

Table 5. Distribution in terms of customer’s expectations

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Table 5 shows the distribution in terms of perception rate of the customers in the areas. The Grooming and Appearance of staff having a weighted mean of 4.49 is the highest among other areas interpreted as exceed expectations and the Restroom having a weighted mean of 3.6 is the lowest among the other areas interpreted also as exceed expectations. Most of the respondents according to those areas exceed their expectations that result to average weighted mean of 4.16.

For the interpretation, the rate is based on the survey questionnaire: 5-Greatly Exceed Expectations, 4-Exceed Expectations, 3-Matched Expectations, 2-Less than Expected, 1-Much Less than Expected.

Comparison of Means

Table 6. Age vs. Expectations

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*Significant if p is < 0.05

Table 6 shows that customer’s age has no significant difference with the areas according to expectations.

Table 7. Gender vs. Expectations

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*Significant if p is < 0.05

Table 7 shows that according to expectations as to age of respondents, there is a significant difference on the following areas; reasonable prices with p=0.036, presentation of food p=0.002, waiting time for order has p=0.011, grooming and appearance of staff p=0.024, friendliness and courtesy of staff with p=0.011 and restroom with p=0.038.

Table 8. Occupation vs. Expectations

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*Significant if p is < 0.05

Table 8 shows that customer’s gender has a significant difference according to their expectations, and these are Variety of offering and Parking.

Table 9. Age vs. Ratings for Expectations

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*Significant if p is < 0.05

Table 9 shows that customer’s age has no significant difference with the areas according to ratings.

Table 10. Gender vs. Ratings for Expectations

[pic]

*Significant if p is < 0.05

Table 10 shows that customer’s gender has no significant difference with the areas according to ratings.

Table 11. Occupation vs. Ratings for Expectations

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*Significant if p is < 0.05

Table 11 shows that customer’s occupation has no significant difference with the areas according to ratings.

COMPETITIVE PROFILE MATRIX

The Competitive Profile Matrix identifies the major competitors of the business and its particular strengths and weaknesses in relation to a strategic position of a sample business.

Critical Success Factors

If a business wants to succeed in a particular industry, the critical success factors are the key areas that must be performed at the highest realizable level of superiority. It includes both internal and external factors, and they vary between different industries or even strategic groups.

Weight

Each critical success factor should be assigned a weight ranging from 0.0 (low importance) to 1.0 (high importance) with a sum of weights equal to 1.0. The rate indicates how significant a factor is in making it in the industry.

Ranking

The ranking in CPM refers to how well companies are doing in each area. They range from 4 to 1, where 4 is a major strength, 3 – minor strength, 2 – minor weakness and 1 is a major weakness.

Total Weighted Score

The result of each business must receive a score on each factor by multiplying the weight to the ranking. Total score is the sum of all individual score of the business on each factor. The business that receives the highest total score is relatively stronger than its competitors.

The following analysis is based on the online survey questions given to the customers who experienced the service of the three coffee shops.

The Competitive Profile Matrix shows the clear picture of strong points and weak points relative to the areas of three different coffee shops. Based on the perception rate of the researchers Taza Mia Coffee got a total weighted score of 3.14, Starbucks got 3.8 and Boss Pete got 3.09. The table presents that Starbucks is a great competitor of both business but Taza Mia Coffee still prove that even though Starbucks is better known and ahead of them, Taza Mia Coffee can still compete. The use of this competitive profile matrix is to show and give Taza Mia Coffee an idea on what areas do they need to improve in order to exceed the other product and services offered by the competitors.

SWOT ANALYSIS

The following analysis is based on the perception and experience of the researchers and also comments and suggestions of the respondents.

Strengths

The atmosphere in the coffee shop provides customers with a feeling of sophistication, style and a sense of knowledge. Taza Mia Coffee has valued and motivated staff that helps and assists the customers who can provide a good work environment. It provides satisfaction and convenience to the customers because of its high-end equipment, offered products with reasonable price and free access of Wi-Fi Connection.

Weakness

A potential weakness of Taza Mia Coffee is brand positioning which the business has a high level of competition with a well-known coffee shop, Starbucks Coffee. TMC is a new entrant in the market, and it needs to promote its product and services, as for Taza Mia Coffee they are lack in marketing expertise. Another weakness in the coffee shop is its small size that can lead to a crowded shop. The high price of its products is also a weakness, which targets only the well-to-do-class of customers.

Opportunities

Being new entrant in the market, there will be a lot of opportunities for Taza Mia Coffee. There is an opportunity for a wide range of target of customers because of the presence of many industrial parks, opening of new projects in the area and the proliferation of populations in Sto. Tomas, Batangas. Expansion into retail operations is also an opportunity for Taza Mia Coffee for it to become one of the well-known and successful coffee shops not only in the Philippines, but also worldwide. There is also an opportunity to expand the coffee shop for a wider and convenient place.

Threats

One of the major threats for Taza Mia Coffee is the nearest well-known competitor which is Starbucks Coffee and the proliferation of competitors in Sto. Tomas, Batangas, which will be difficult for Taza Mia Coffee to position its product in the market that has well-established competitors. The supply disruptions and rising prices of coffee and dairy products are another factors that will force Taza Mia to increase the price of products. The consumer trends toward more healthy ways and away from caffeine is also a threat because people nowadays are becoming health conscious which may lead to straying away of consumers from caffeinated drinks.

Strategic Options (from confrontation matrix of SWOT)

Area of Offense (Strengths and Opportunities)

"HIGHLIGHT ON THE FACILITIES"

Taza Mia Coffee ought to capitalize its high-end equipment in order to produce more quality food and service offering. Wi-Fi Connectivity in Taza Mia Coffee is an area of strength and should be viewed thus, especially by residential and industrial customers. The expansion into retail operations with comfortable atmosphere can be an advantage of Taza Mia Coffee against competitors. Taza Mia Coffee can offer unique kind of service which is not commonly seen in a coffee shop like having an Acoustic Singers which starts at 7:00pm to 1:00am every Friday, Saturday and Sunday to attract large public.

Area of Defense (Weakness and Opportunities)

"CAPITALIZE ON THE NEW"

Taza Mia Coffee, as being new in the market can give way to a new opportunity. Brand competitive can be strengthened by introducing Taza Mia Coffee in new costumers since there is the presence of many industrial parks in the place. They can start improving their marketing strategy by advertising in these industrial parks.

Area of Adjustment (Strengths and Threats)

"FREEBIES AND MORE"

The preference for higher-quality product is being reinforced as customers are being subjected to an increasing number of options. So it is recommended to focus on their quality product and high-end equipment with still reasonable price lower than its competitor Starbucks. To mitigate the rising prices of coffee and other dairy products, we recommend that they can raise their price but they can also offer some freebies like “Selfie with Me” which is taking a picture with the Baristas and having the template of Taza Mia Coffee itself.

Area of Survival (Weakness and Threats)

"IMPROVE BRAND POSITIONING"

Taza Mia should clear their brand positioning. The price is not very low compared to Starbucks, but if one looks at the place, it is crowded. TMC should also think of offers other than the existing products and services. Taza Mia should go lower than Starbucks, improves the place or use blue ocean strategy that can add something only Taza Mia offers. Taza Mia can also transfer to a bigger place which has fewer competitors but the presence of industrial parks or big population in the location.

Other enhancement possibilities:

1. Taza Mia may add more automatic espresso machines to lessen the time and human errors.

2. Aside from tumblers and mugs, Taza Mia may develop and sell products like clothes and key chains with Taza Mia Coffee template on it.

3. Taza Mia may feature ordinary Santo Tomas folks by having a picture of them dining in the coffee shop.

4. Taza Mia Coffee may promote its products with freebies on it (Ex. Giving flyers or brochures with key chains and lanyards having the template of Taza Mia Coffee or offer free tastes of product.).

IV. CONCLUSION

The study was conducted at Taza Mia Coffee in Sto. Tomas, Batangas. The respondents were customers and patrons who dine and experience the service of business. The researchers surveyed 45 customers.

Generally speaking, the basic objectives of this research study were achieved.

On the basis of the preceding findings, the following conclusions were drawn:

1. Most of the consumers of Taza Mia Coffee visited the coffee shop weekly and went there to dine with a budget range from 201-500. Most of them are female students, ages ranges from 12 – 25.

2. The Taste and flavor of food are the highest important areas in Taza Mia Coffee, and the lowest is Wi-Fi Connection area. The overall score on the areas is interpreted as important in assessing service quality of business.

3. The overall score on the areas meets and exceed the expectations of customers in a coffee shop but the restroom and security needs a little more improvement.

4. The expectation, perception, and satisfaction of the customers of Taza Mia Coffee to the products and services are significantly related to the quality of those factors mentioned in the objectives of this research, which Taza Mia Coffee achieved.

5. There is a significant difference in the areas as to expectations in gender and occupation while the expectations in age, ratings in age, gender and occupation has no significant difference.

6. The strong and weak points of the coffee shop were determined by the use of Competitive Profile Matrix and SWOT Matrix Analysis.

7. Several strategic options were given by the researchers utilizing the confrontation of the SWOT.

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