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Student Coffee Venue Preferences:Factors That Influence a College Student’s Decision to Choose a Specific Coffee Venue Report IIChristina Pizzella, Kate Sinervo, and Stephanie VermillionBoston UniversityDecember 8, 2011Table of Contents:Introduction 4The Client. The Competition. The IndustryThe Client??????????????????????????????????????????????????????????????????????? 5The Competition ?????????????????????????????? ????????????????????????????????????????????????????????? 8The Industry ?????????????????????????????????????????????????????????????????????????????????????????? ?? 10Literature ReviewScholarly Journals ???????????????????????????????????????????????????????????????????????????????????? 13Newspapers and Magazines ????????????????????????????????????????????????????????????????????? 13Industry and Trade Publications ???????????????????????????????????????????????????????????????21Proposed Predictors ???????????????????????????????????????????????????????????????????????????????????????? 28Measures 29Instrument 38Methodology 42ResultsAnalysis of Measures 44Analysis of Variation of Measures 46Correlations 54Discussion 58Summary 61Conclusion and RecommendationsRecommendations 62Recommendations for further study 69Assessment 74References ??? 77??????????????????????????????????????????????????????????????????????????????????????????????????I. IntroductionDunkin’ Donuts wants to increase its college student customer base, specifically on the Boston University campus. Our research team will answer the follow research question: What factors influence a college student’s decision to choose a specific coffee venue? Using our own research, as well as the research of others, we will make informed recommendations to help Dunkin’ Donuts reach their objective.II. The Client. The Competition. The Industry. The ClientDunkin’ Donuts is an international doughnut and coffee retailer founded in 1950 in Quincy, Massachusetts by William Rosenberg. Dunkin’ Donuts originally focused on sales of donuts and other baked goods, however, today over half of Dunkin' Donuts business is generated from coffee sales, as it is officially America's largest retailer of coffee-by-the-cup (Dunkin’ Donuts, 2011). Dunkin’ Donuts, now headquartered in Canton, Massachusetts, has begun to expand from its original New England base. While focusing its expansion near its core markets in the Northeast, Dunkin’ Donuts continues to expand its presence in the Mid-Atlantic and Southeastern states. Additionally, Dunkin’ Donuts has over 2,600 stores in 30 countries outside of the U.S. From Asia to Latin America, Dunkin’ Donuts serves an estimated 1.5 billion cups of brewed coffee each year, and over 30 each second (Dunkin’ Donuts, 2011). Dunkin' Donuts, along with Baskin-Robbins, is owned by Dunkin' Brands Group Inc., the world's leading franchiser of quick service restaurants serving hot and cold coffee and baked goods, as well as hard-serve ice cream (Dunkin’ Donuts, 2011). As of the end of 2010, Dunkin' Brands' owned 9,760 Dunkin' Donuts restaurants and 6,433 Baskin-Robbins restaurants, whose combined sales reached approximately $7.7 billion (Dunkin’ Donuts, 2011).Dunkin’ Donuts customers serve as the foundation for the organization’s praised advertising campaign, introduced in 2006, America Runs on Dunkin’ (Dunkin’ Donuts, 2011). In addition to local presence in the United States, Dunkin’ Donuts has a strong presence internationally, “with nearly 3,000 Dunkin' Donuts locations in 30 countries, including the Philippines, Indonesia, South Korea and Thailand” (Dunkin’ Donuts, 2011). In 2005, Dunkin’ Donuts rolled out a new restaurant design for all Dunkin’ Donuts restaurants of the future (Dunkin’ Donuts, 2011). The modern restaurant design mixes retro elements inspired by the first Dunkin’ Donuts establishment (Dunkin’ Donuts, 2011). The new layout includes advanced technology to provide customers a more positive in-restaurant experience. Dunkin’ Donuts is also known around the world for its quality menu items and dedication to customer service, as a result, the organization has been ranked No. 1 for customer loyalty in the “Coffee and Doughnuts” in Brand Keys Customer Loyalty Engagement Index for the past 4 years (Dunkin’ Donuts, 2011).Dunkin’ Donuts’ aim is to “serve high-quality food and beverages at low cost to busy people on-the-go” (Dunkin’ Donuts, 2011). Dunkin’ Donuts offers baked goods, over 1,000 varieties of donuts, breakfast sandwiches, hash browns, oven-toasted items, coffee beverages and other hot and cold beverages. Dunkin’ Donuts also offers many seasonal food items and beverages such as pumpkin, apple and caramel flavored hot and iced coffees, as well as pumpkin donuts, and donuts with seasonal frostings and sprinkles. ???????? In 2008, Dunkin' Donuts opened its first eco-friendly store in St. Petersburg, Florida. The eco-friendly store is Leadership in Energy and Environmental Design (LEED) certified and features worm casting, water-efficient plumbing fixtures, and uses well water for all irrigation (Dunkin’ Donuts, 2011). This year, in 2011, Dunkin’ Brands Group Inc. issued its very first Corporate Social Responsibility Report, which included information about the nutrition of their products, sustainable sourcing, and support for local communities through charitable donations to charities like The Jimmy Fund ("Dunkin' Brands Publishes”, 2011). ???????? Dunkin’ Brand Group Inc. has also established The Dunkin’ Donuts & Baskin-Robbins Community Foundation, which focuses its support on three critical issue areas including neighborhoods, to fulfill critical hunger needs in communities through partnerships with local food banks and hunger relief organizations, health and wellness of children, through partnerships with children's hospitals and organizations that support children's physical activity, and safety of neighborhoods and communities, through partnerships with organizations to firefighters, public safety officers, and troops at home and abroad (Dunkin’ Donuts, 2011).Dunkin’ Donuts engages in minimal promotional events that pertain to young adults/college students. For example, Dunkin’ Donut sponsors events called “Caught Cold” days both to promote their iced coffee, and give people, particularly sports fans in the Boston area, a chance to win Bruins and Patriots tickets, as well as opportunity to view the with Boston sports championship trophies (“Dunkin’ Donuts; Dunkin’ Donuts Celebrates”, 2011). Dunkin’ Donuts also began a new promotion in fall 2011 called “Chance for StarDDom”, which is a contest to find the “biggest” Dunkin’ Donuts coffee fan by asking Dunkin’ Donuts lovers to post photographs of themselves on the StarDDom Facebook page, with descriptions of why they love Dunkin’ Donuts coffee (“Dunkin’ Donuts; for National Coffee Day, 2011). The eventual contest winner, announced in November 2011, will have an opportunity to appear in a Dunkin’ Donuts advertisement and receive free Dunkin’ Donuts coffee for a year, along with ten runner-ups (“Dunkin’ Donuts; for National Coffee Day, 2011). ?In addition, in August 2011, Dunkin’ Donuts awarded a number of $25 thousand scholarships to students in the Philadelphia region (“Dunkin’”, 2011). In terms of social media, Dunkin’ Donuts has its own corporate website, a renowned blog, regional Twitter accounts, a Facebook account, as well as featured YouTube videos. Dunkin’ Donuts uses these social media tools as a way to promote its brand as well as products and services, advertise special events and offerings, hold contests, and connect with younger audiences.On the Boston University campus, there is one Dunkin’ Donuts located inside the Buick Street Market, which is just off of Commonwealth Avenue at the entrance to the Student Village residences. This Dunkin’ Donuts is open to all Boston University college students as well as customers off the street.The Competition?Dunkin’ Donuts faces much competition both locally, in the Boston area, and nationally. To be specific in our research, we will focus on the presence of Dunkin’ Donuts and its competitors on and around the Boston University campus. The Boston University campus has several Dunkin’ Donuts competitors including Starbucks, Espresso Royal Café, and the City Convenience store. Starbucks and Dunkin’ Donuts are long-time competitors, and industry research often directly compares the two. Starbucks has a total of 17,018 stores worldwide and their mission is to provide gathering places for people to enjoy their coffee (Starbucks Coffee Company, 2011). They take extensive measures to train their employees to offer the best services possible to customers, and call their employees the heart of the “Starbucks Experience” (Starbucks Coffee Company, 2011). ?Starbucks offers whole bean coffee, from around the world, as well as Starbucks Reserve Coffee, which Starbucks chooses from coffee plants worldwide to offer exclusively in their stores. They also offer VIA Ready Brew coffee packets that come flavored and non-flavored as instant coffee mix (Starbucks Coffee Company, 2011). Starbucks stores offer specialty coffee drinks, as well as tea and non-coffee drinks, such as lemonade. Starbucks offers seasonal, limited-time beverages such as the fall-time Pumpkin Spice Latte. They have a food selection that ranges from fruit cups to pastries. In every U.S. Starbucks coffee shop, Starbucks offers free Wi-Fi to its customers. Some stores even exhibit entertainment such as live music for special events (Starbucks Coffee Company, 2011).Espresso Royal Café has a smaller national presence than Starbucks or Dunkin’ Donuts with stores only in the states of California, Illinois, Massachusetts, Michigan, Minnesota and Wisconsin. Espresso Royal Cafés are mostly located on or in proximity to university campuses. Their coffee shops are designed for customers to sit down and stay while drinking coffee or eating meals (Espresso Royal Café, n.d). Espresso Royale offers a variety of beverages including coffee, cappuccinos, lattes and other non-coffee drinks such as lemonade or tea. They also offer a menu including foods such as breakfast bagel sandwiches, pastries, salads and soups. They pride themselves on quality customer service and friendly employees (Espresso Royal Café, n.d). In contrast The City Convenience Store offers self-serve coffee to its customers, usually in five to ten varying flavors per day. The store is designed as a convenience store with no places to sit or drink coffee. City Convenience Stores are open seven days a week, 24 hours a day. They offer snacks as well as groceries and school supplies to customers, unlike traditional coffee shops (City Convenience Store, n.d.). The IndustryCoffee itself dates back as far as the ninth century, at least in legend, and the first beans were roasted around A.D. 1000. Coffee had spread to the Near East and Northern Africa by the thirteenth century (“Coffee”, n.d.). As thousands of Muslim pilgrims visited Mecca each year, word was carried around the world about the public coffee houses, or qahveh khanneh, and their delicious beverage (“NCA”, n.d.). By the seventeenth century, coffee had made its way to Europe and gained the attention of the Catholic Church. While some clergy men were skeptical of the new beverage, Pope Clement VIII enjoyed it so much that he gave it Papal approval (“NCA”, n.d.).Despite coffee’s mixed reviews, coffeehouses started to appear across Europe. “In Britain, the first coffeehouse was opened in Oxford in 1651 and by 1700 there were 3,000 coffeehouses in London” (“BCA”, n.d.). These coffeehouses became the community centers for socializing, conversation, and became to be known as “penny universities”, named for the price of a cup of coffee the time (“NCA”, n.d.).Around the same time as the first coffeehouse, coffee was brought to New Amsterdam, or modern day New York. However, tea was still the drink of choice by colonists until 1773 when King George imposed higher taxes, which resulted in the Boston Tea Party and an increased popularity in coffee drinking (“NCA”, n.d.). Coffee’s popularity quickly spread throughout the British and French empires “and by the end of the eighteenth century, coffee had become one of the world’s most profitable export crops” (“NCA”, n.d.).According to the Massachusetts Travel Journal, the first coffee shop in the United States was opened in 1676, in Boston. Three hundred years later, in 1950, this coffeehouse would become the Dunkin’ Donuts franchise, getting its start in Quincy, Mass (“America’s First”, n.d.).Through the economic depression of the 1930s, both World Wars, a severe draught in Brazil in the 1950s, and the Korean War, the price of coffee fluctuated drastically over this 30-year period. In 1962, the International Coffee Organization was created to help regulate prices based on the supply and demand of the current markets. The International Coffee Agreements were amended seven times between 1973 and 2007. The current agreement is intended to remain in affect for ten years with the possibility of an eight-year extension. The new agreement added new provisions to protect smaller coffee producers and increase information, research, and availability of sustainable business practices (“ICO”, n.d.). Today, the coffee industry operates about 20,000 stores nationwide and draws in a combined revenue of $11 billion annually. The top 50 companies in the industry make up about 70% of the market. “Approximately 20 million people work in the coffee industry worldwide” (“Overview”, n.d.). According to data collected from the Coffee Research Organization and the National Small Business Development Support Center Clearinghouse, 400 billion cups of coffee are consumed each year, making it the most widely consumed beverage in the world. However, each day Americans consume over 400 million of those cups, making them the leading consumers of coffee (“Overview”, n.d.). There are two main types of coffee beans: arabica and robusta. Arabica makes up about 70% of the coffee consumed today and although it contains a lesser amount of caffeine than robusta, it is considered “better tasting” (“Types”, n.d.). Coffee beans are further broken down by region or country of origin and blend.However, the variation in coffee is not only derived from the beans, but from how they are roasted. “When heat is applied to raw beans, those beans produce and release oils, and their natural sugars caramelize, contributing to the bean’s colors and flavors” (“Roasting”, n.d.). Coffee beans have been roasted over open flames and in ovens until the invention of the larger roasting equipment in the 1800s (“Roasting”, n.d.).In 1903, Luigi Bezzera, an Italian, designed a way to brew his coffee quicker by adding pressure to the ground beans. Bezzera created the first “Fast Coffee Machine” or espresso (which means fast in Italian). He also found that not only did the pressurized method reduce the brewing time, it actually made a better cup of coffee. “The quick brewing time allowed the best qualities of the bean to be extracted, avoiding some of the unfavorable qualities associated with over-extraction” (“Espresso”, n.d.).Although, Bezzera had no money to market his new machine, Desidero Pavoni bought the patent rights and introduced espresso-based drinks in Italy (“Espresso”, n.d.).Coffee is not the only caffeinated beverage sold in coffee shops today. The debate over which is better for you, coffee or tea, has been an on going debate for centuries. Each has its medicinal benefits and drawbacks. For example, drinking four cups of black coffee a day is proven to help prevent diabetes and tea is proven to help fight the onset of Alzheimer’s. However, coffee discolors teeth and breaks down the enamel and tea is proven to fight cavities. Also, while coffee suppressed the appetite, tea actually speeds up the metabolism aiding in quicker weight loss (“Better”, 2007). The list of medicinal benefits and/or drawbacks is endless and the medical research is ongoing. The most recent advancement in the coffee industry is the introduction of the single-serve home brewing machine. Companies like Keurig, Cuisinart, and Nespresso offer these machines that use single serve cups of coffee grounds, which are best known as “pods” or “K-cups”, to brew just one cup of coffee at a time (“Ultimate”, n.d.). The idea actually dates back to the 1970s, but did not become popular until recent years (“Ultimate, n.d.). Today, there is a large variety of coffee brands available for these machines, including companies like Starbucks and Dunkin’ Donuts, are starting to enter the market (“Ultimate”, n.d.).III. Literature Review Scholarly JournalsBradford and Desrochers (2009) studied how companies use scents to influence consumer behavior. They state that, “with scent, your brain responds before you think” (p. 142). They also contend that many marketers use scent to draw consumers because it creates a subconscious, continued purchasing response that no other sense can duplicate. In 2005, Exxon on the Run convenience stores used coffee scents as a promotional tactic to highlight their new brewing system. The authors found that the scent marketing techniques have been successful and vendors use them more often. They also found that “some scents are capable of evoking responses before the consumer is even conscious of their presence” (Bradford and Desrochers, 2009, p. 151).In another article, Katrinli, Gunay, and Biresselioglu examined how Starbucks uses corporate social responsibility as a way to gain more customers. Starbucks uses corporate social responsibility to enhance their reputation, charge a premium price and create trust among customers (Katrinili, Gunay, Biresselioglu, 2011). Kartinili et al. note that Starbucks is also dedicated to a sustainability effort to decrease energy used in stores. They say Starbucks’ social responsibility practices attract consumer loyalty by generating a positive view of the company (Katrinili, et al., 2011). Walsh, Shiu, Hassan, Michaelidou, and Beatty (2011) found that store atmosphere plays a large role in customer satisfaction. They note that the emotions and pleasures of the store environment are “critical mediators of the impact of store-related cognitions on customer satisfaction and loyalty” (Walsh et al., 2011, p. 8). They also note that the environmental atmosphere, especially music and aroma, positively affects customers’ emotions. Walsh et al. explained how atmosphere’s importance goes beyond the customer, to the public through word-of-mouth reviews. With positive public perceptions, places such as coffee shops will retain customers as well as generate new customers (Walsh, et. al., 2011). Luo (2010) studied the use of calorie-postings in Starbucks stores to determine how they affect customer purchasing. He found that in New York, where Starbucks posted calories, the Starbucks venues had an advantage over Dunkin’ Donuts, where calories were not posted. ?This resulted in a 3% rise in business for New York Starbucks stores (Luo, 2010). Luo (2010) noted that drinkers did not make fewer purchases; they adjusted their drink selection. Most of these adjustments were with food purchases. A study by Patterson, Scott, and Uncles (2010) presents factors to explain why Starbucks had to close three quarters of their Australian coffee shops. Patterson, Scott and Uncles (2010) found that in 2008, Starbucks had to close 61 of its 84 Australian shops. One reason was that while Australians were initially attracted to Starbucks, they found that the coffee shops were not unique enough to maintain their business. Additionally, they found that as Starbucks increased its number of coffee shops, their customer service decreased with subpar baristas, and therefore, since other coffee shops had friendly, knowledgeable baristas, many Australians took their business elsewhere (Patterson, et al., 2010). Rosenbaum (2006) evaluated the consumer’s need for a third place in his or her life. Specifically, he looked at the consumer need to have a pub, coffee shop or restaurant to spend time away from work and home. Rosenbaum (2006) suggests that these places are necessary for humans. “Some consumers choose to immerse themselves in commercial establishments, which they transform into significant centers of their lives and personal experiences” (p. 60). Rosenbaum (2006) also concluded that as people become emotionally attached to a certain place, they begin to associate that place as almost a home, thus they are more loyal and return as customers consistently. Previous research shows that overall this third party desire is prevalent in older generations, but Rosenbaum (2006) says that it can be generalized to all consumers. He notes that people view shops as third places if that place provides them a connection with other customers as well as employees for social support (Rosenbaum, 2006). In a qualitative research study, conducted to explain contemporary issues of coffee consumption and lifestyle for coffee house customers in Scotland, Scott (2006), found that customers choose to go to coffee houses of certain brands of coffees largely because they want the sophisticated, chic image that goes along with it. He notes: “The cup itself becomes a fashion statement with lifestyle connotations” (Scott, 2006, p. 61). He also deduces that people choose specific coffee venues for their hip and trendy images in the popular media, specifically 83% of survey respondents stated that lifestyle issues were important to them in choosing where to get their coffee (Scott, 2006). Scott (2006) also found that 26% of coffee drinkers believe that coffee brand packaging and advertising is important to their choice of coffee venue because it allows them to display to others what they are drinking.In the same study, Scott (2006) used a survey to determine that females are the most likely to sit in coffee shops and socialize for long periods of time (Scott, 2006). He also found that a total of 36% of the women who said they socialized in coffee shops for long periods of time were students, and 18% were women in senior management positions. In the same survey, 50% of respondents also claimed that they choose their coffee shop based on convenience with respect to proximity and socialization (Scott, 2006). One study by Plog (2005) focused on the recent expansion of Starbucks to locations in China. The study looked at how Starbucks, with numerous international expansions, was able to perform an efficient, revenue-building business. ?In the study, Plog (2005) discovered that one major reason Starbucks is doing well in China is that the Chinese people are already well acquainted with American products and therefore are more willing to buy Starbucks coffee. The author notes that Starbucks has been successful because “[it] has changed lifestyles of its customers, and it does that in every country that it enters” (Plog, 2005, p. 285). Plog (2005) goes on to explain that Starbucks offers people their own personal space where they can relax, socialize or read in peace, which is a major reason Starbucks has been so successful.A study published in 1996 looked at the importance of Starbucks’ employees to their business with regard to their affect on customer satisfaction. The findings show that because Starbucks offers competitive employee benefits they help create happy workers. With happy workers, Starbucks believes that the interaction between worker and customer is pleasant which overall creates the better customer experience (Anonymous, 1996). ?Starbucks also believes that to develop the best employees possible, it is?important to invest $1,000 to train each new worker. Wintrich and Barone (2011) showcased a study on the effectiveness of donation-based research versus discounted prices. The study used survey methodology to examine the consumer’s tendency to identify with particular groups and relate their social identities to various causes (Wintrich and Barone, 2011). They found that consumers are more likely to purchase a certain donation-based brand if the charity associated with the purchase is reputable. They also found that “committing to an altruistic act provides consumers with a basis for rationalizing subsequent, indulgent behaviors” (Wintrich and Barone, 2011, p. 866). They suggest that managers create donation-based promotions that give money directly to charitable causes that affect their target consumer groups. Overall, they noticed that interdependent consumers, who identified with various groups that receive charitable donations, were more likely to participate in donation-based purchases (Wintrich and Barone, 2011).Waxman (2006) studied the factors that would influence a person to spend more or less time in a coffee shop. She completed her research by observing several coffee shops, administering surveys and conducting personal interviews and found that there were five design features that most attracted patrons. The five factors were: cleanliness, appealing aroma, adequate lighting, comfortable furniture, and a view of outside. Waxman (2006) obtained positive feedback from her study indicating that each coffee shop had its own sense of community that attracted various types of patrons based on their activities and feelings toward that community.Radder and Huang of Nelson Mandela Metropolitan University conducted a study of South African college students to determine the difference in brand awareness and recognition in high- and low-involvement products. They chose to survey 300 students between ages 18 and 25 about their awareness of sportswear brands (high-involvement) and coffee (low-involvement). Radder and Huang (2008) found that for coffee brand awareness, in-store and television advertising were the most affective, and that the brands were more recognizable among the older set of students (25+). The article also referenced studies that said that most people make their brand preferences between the ages of 15 and 25, so, especially in low-involvement products, it is important to target that age group. Also, with coffee products, the brand name is far more important than the logo (Radder & Huang, 2008).Goldkuhl and Styven (2007) reviewed the role that scent plays in the service industry. Goldkuhl and Styven found that the presence of a scent is “something that the customer cannot ignore” and certain scents “can influence customers’ intentions to visit and return to a store” (Goldkuhl and Styven, 2007, p. 1298). The authors state that smell has the potential to directly and positively affect a customers’ choice to purchase (Goldkuhl, 2007). Based on their findings, they propose that coffee shops and restaurants try to gain a competitive advantage by using scent in creative ways to “communicate some kind of information about what is sold” (p. 1298), and to create a sense of pleasantness about a product or service they offer that will “positively affect [a customer’s] time spent in a store” (Goldkuhl and Styven, 2007, p. 1299). The authors also note that scents can be used to evoke memories, and when those memories are pleasant, customers will want to continue spending time in that purchasing environment, thus creating brand loyalty.Pelsmacker, Janssens, Sterckx, and Mielants (2005) discuss the importance that consumers place on the ethical value of a product. Specifically, in the coffee industry, consumers place high value on fair trade and environmentally friendly products. Pelsmacker et al. deduce that “American consumers [are] prepared to pay a 6.6 per cent price premium for environmentally friendly products” (p. 513) yet overall, “label issuers wanting to promote bio- or eco-products face an up-hill struggle for appreciation by consumers, while promoting social and fair-trade labels seems to be more top-of-mind with consumers” (Pelsmacker et al., 2005, p. 526). They found that educated consumers place high value on fair trade products, ahead of eco-friendly products, while both educated and uneducated consumers are less likely to purchase items, specifically coffee, if they are confused about ethics or labeling (Pelsmacker et. al., 2005).In their field study, d’Astous and Mathieu (2008) found that it is “important to make sure that consumers are attentive to a concrete message concerning fairly-traded products for this message to have any impact on purchase behavior” (p. 154). In other words, if customers know the difference between fair trade and non-fair trade products, they will be more likely to purchase the fair trade products, however, if they do not understand the difference between the two, it will have no impact on their judgment (d’Astous and Mathieu, 2008). They also determined that to inform consumers about fair trade products so that they will be interested in buying them, it is best to use forms of advertisement where the consumer has ample time to read them, such as emails or brochures, as opposed to commercials or posters in crowded areas where people have limited viewing time (d’Astous and Mathieu, 2008). Lastly, they noted that “consumers who were told that their peers had some interest in these products, spent more money than consumers who were not” (p. 155) which they tied to strategies for marketing fair trade products (d’Astous and Mathieu, 2008). They assess that the best marketing strategy to attract consumers to fair trade products is to use some type of information about peer consumption (d’Astous and Mathieu, 2008).Another study released by the American Dietetic Association notes the influence of nutrition information on college student food and beverage purchases (Freedman and Connors, 2011). The study found that college students are more likely to buy healthy food or drink from vendors if the nutritional information is specified and/or clearly labeled as a something that will benefit their health (Freedman and Connors, 2011). The study also found that the lower the cost of the healthy food or drink with the label, the larger quantity the college students were willing to purchase. However, when the items were all priced the same, college student consumers made their purchases based on the “perceived nutritional benefit, not economics”(Freedman and Connors, 2011, p. 1225).Taylor and Long-Tolbert (2002) found that companies that distribute coupons to people, specifically students who are prior customers to strengthen their relationships with those customers thus, encouraging them to continue purchasing from that particular company. They found that prior-customers, in general, were the people more likely to use or redeem coupons. Also, Taylor and Long-Tolbert determined that coupons led customers to make certain purchases early or purchase a greater number of items due to the promotional incentive (Taylor and Long-Tolbert, 2002). Newspapers and MagazinesThe Spartanburg Herald in South Carolina featured an article on a local coffee house called Interlude, whose largest proportion of customers is college students. This coffee shop has an atmosphere that targets college students by offering Wi-Fi to customers, as well as unique sandwich wraps and muffins to supplement their beverage menu items (Brow, 2008). The coffee house also offers a 10% discount for students (Brow, 2008). This article is relevant to the research because of its focus on the atmosphere, menu and discount aspects of the coffee house in relation to the college students’ choices to purchase coffee that particular venue. ??In her magazine article, “Flat out for Business,” Jane Bainbridge discusses the new coffee industry trend of loyalty cards (2011). She notes that loyalty cards are becoming a must for coffee shop chains to retain business (Bainbridge 2011). In her article, she also examines how the younger generation (i.e., college students) is attracted to coffee shops offering take-away beverage options (Bainbridge 2011).In her article, “Coffeehouses stir strategies”, Judith Nemes discusses the difficulty of competing with Starbucks in the coffee industry and addresses ways coffee companies can attract customers to purchase coffee at their coffee shops, including changing their menus to offer unique food and refreshment items (Nemes, 2002). She also suggests that customers prefer food variety and healthy menu options when choosing a coffee shop (Nemes, 2002). ?In addition to menu variation, Nemes suggests that coffee shops attempting to compete with Starbucks should offer entertainment, including poetry readings, book club gatherings, low-key meetings or local band performances because younger customers look for entertainment aspects when choosing a coffee shop (Nemes, 2002).Industry and Trade PublicationsIn the trade publication Beverage Industry, the article “Demand for flavors, customization in brew” details customer trends in the industry and explains that coffee drinkers are now more than ever seeking convenience when choosing coffee venues (Sichtermann, 2011). Convenience coffee comes in several forms including ready-to-drink coffee, such as the Starbucks Double Shot canned coffee, which can be found in convenience stores, and single-serve coffee offerings such as the Starbucks Via Ready Brew, which is a packet mixed with water to create a Starbucks iced coffee anywhere. RTD (ready-to-drink) coffees and single-serving coffees are easily accessible in grocery stores, pharmacies, gas stations and convenience stores.In the Beverage Industry article, “Demand for flavors, customization in brew,” Sichtermann also notes that another factor for choosing a particular coffee venue is the ability for customers to customize and create their own personal brews (Sichtermann, 2011). He notes the coffee industry has expanded to include frozen, hot and iced coffees with flavor shots, and different choices of dairy to put into each cup. This allows customers to create unique blends that satisfy their personal tastes. The author states, “As consumers are able to obtain their favorite beverage the way they want it and when they want it, coffee consumption will only increase” (Sichtermann, 2011, p. 102).In their article “BK, McD’s wake up to premium coffee”, Halliday and MaCarthur further prove the consumer desire for customized coffees. They state that: “Although Starbucks is the biggest coffeehouse chain, just 20% of its beverage sales are from the unadulterated coffee cup, and the majority of sales come from blended and espresso drinks” (Halliday and MaCarthur, 2005, p. 14). This same article notes that many coffee consumers are more price conscious in choosing coffees, and therefore choose venues such as Dunkin’ Donuts, which have less expensive, non-flavored coffees. Dunkin’ Donuts controls 17% of the market compared with McDonald’s at 15% and Starbucks at 6% for non-flavored, basic coffees (Halliday and MaCarthur, 2005). The authors state, “One reason for the doughnut chain’s dominance in basic brew is the pocketbook-friendly prices, often 50 cents or less per cup than Starbucks” (Halliday and MaCarthur, 2005, p. 14).Along these same lines with price, Halliday and MaCarthur note that one reason Dunkin’ Donuts’ coffee venues have such a percentage of the marketplace is because of their location. Dunkin’ Donuts often locates venues in the blue-collar communities to attract consumers with their lower prices. Starbucks is beginning to follow this trend as well (Halliday and MaCarthur, 2005). ?The Beverage Industry article “Spilling the Beans” details that recently, coffee consumers have opted for home-brew coffee over purchasing coffee from coffee shops, as a way to save money (Scott, 2009). “Ground coffee sales increased 6.5%, earning more than $2.4 billion for the 52 weeks ending Oct. 4 in supermarkets, drug stores and mass merchandise outlets” (Scott, 2009, p. 12). They also note that as branded coffee begins appearing in these places, that customers will recognize and purchase these brands more frequently. Starbucks has begun mass-producing packaged coffee to sell in their stores, grocery stores, drug stores and mass retail stores to follow this consumer trend (Scott, 2009).The article “BK, McD’s wake up to premium coffee” details that coffee drinkers are seeking high-quality coffee, not only in the morning to accompany breakfast, but also during the later morning, lunch and afternoon hours (Halliday and MaCarthur, 2005). The authors state that 84% of coffee drinkers have their fix at breakfast, but with consumers looking for coffee throughout the day, McDonald’s has adjusted its offerings to serve premium coffee all hours of the day (Halliday, MaCarthur, 2005). In the article “Coffee for the Millennial Generation,” the author explains 7-Eleven’s decision to revamp its business to attract younger coffee drinkers based on factors they found that resonate with a younger crowd. The store’s new features include a coffee bar with a modernized look and functional layout, redesigned cups with coffee branding and new promotions for a younger crowd (Lisanti, 2010). After restructuring their coffee bars, 7-Eleven found that more people were spending time at their stores customizing their drinks, and since the bars had a newer, fresh look they noticed a higher appeal to the Millennial consumer (Lisanti, 2010). York (2009) finds that many coffee consumers have been cutting back on fancy, expensive drinks and have opted for more traditional, affordable coffee drinks (York, 2009). The consumers cutting back are on average between 45 and 54 years old and in the lower-income brackets. The cutbacks are affecting companies unevenly, with Starbucks losing some business, while Dunkin’ Donuts is expanding (York, 2009). Analysts found that after the economy worsened in 2008, specialty coffee drink purchases have decreased significantly. Specialty coffee drinks make up more than half of the coffee industry (York, 2009). Emily York reports that Advertising Age hired Lightspeed Research to find out whether the decrease in coffee sales is due to the economy or to New Year’s Resolutions. The research showed that 90% of participants say they are trying to save money (York, 2009). Most of the survey participants said they have either scaled down to smaller, less expensive coffee shops or have started brewing at home. Oddly though, “Starbucks has reported same-store sales down…, Dunkin' Donuts has opened more stores, expanding the once-regional chain” (York, 2009). However, York notices a “trickle down effect”, where costumers move down from Starbucks to Dunkin’, the industry may soon see a further move from Dunkin’ to convenience store chains (York, 2009). She also notes that all three companies cited in the article are worried about the installation of coffee bars in McDonald’s restaurants, which is sure to take business away from everyone, due to pricing (York, 2009).A newsletter distributed by Wireless News in 2011 details the struggle between buying virtue, or healthy, foods versus buying vice, or treat-type, foods based on whether the consumer gets a quantity increase or a discounted price. The study, done at the University of Utah, “revealed that while the preference for bonus quantity over price discounts hold for virtue food, the reverse is true for vice foods” (Wireless News, 2011). David Eccles School of Business researchers, Arul and Himanshu Mishra, conducted an experiment at a campus coffee shop. They offered a choice between virtue and vice options in muffins and cookies to customers leaving the store as either a bonus to what they already purchased, or at a discounted price. They found that more students took the low-fat muffin as a bonus item and the cookie at a discounted price. The Mishras attributed their findings to the “justification factor”, where consumers are more likely to give into their vices or splurge on their virtues if they can justify it somehow (Wireless News, 2011).In an article written for Restaurants and Institutions, Erin Shay looks at the relationship between students and cart service items, such as coffee, tea and snacks. At the University of Maryland and Central Michigan University, she found that selling coffee and food items in convenient locations for students to grab-and-go turned enough profit to be sustainable. And, the cart did not serve anything the schools’ dining service already offered or take any business away from traditional dining. She contends that the addition of these carts and kiosks on campuses will help keep students and faculty on campus, so they do not leave to find food elsewhere (Shea, 2005).In her article in the Sacramento Business Journal, Yolanda Cuesta takes a look at a number of coffeehouses that serve as Starbucks competitors. She assesses that, “Consumers have not only become more educated about coffee, but they demand higher quality, excellent service and an opportunity to express their individuality” (Cuesta, 2001, p. 25). ?Cuesta quotes the district manager of Java City in her article noting that, “[People] find their niche or their style of café. Whether it's the small mom-and-pop café, or the corporate café, once they find what they like they stick with it” (Cuesta, 2001, p. 25). The author also notes that it is important to style a café in a way that attracts the surrounding demographic, because the same café can attract consumers differently depending on what it looks like in comparison with its location (Cuesta, 2001). For example, if a café is located in a wealthier area of a city, it should have a classier atmosphere than a lower income area (Cuesta, 2001).An article entitled, “Coffeehouses brew new-artist promotions”, details the growing consumer need to discover new musical artists through visits to coffeehouses (“Coffeehouses”, 2003). ?According to the article, this consumer need leads to a win-win situation for local or emerging bands looking to expand their fan bases and coffeehouses looking to feature new artists and musical performances (“Coffeehouses”, 2003). The article also contains information about impulse buying and the tendency for consumers to buy music on a whim if they hear the artist live in a coffeehouse setting versus the radio (“Coffeehouses”, 2003). Billboard suggests that coffeehouses sell coffeehouse mixes in the form of CDs, even though they are outdated, to make extra money while meeting consumer needs to discover new or unique artists (“Coffeehouses”, 2003). In her article “Coffeehouse talk”, Elizabeth Fuhrman notes that as of the 2009 Mintel reports, consumer trends, with regard to coffee and donut shops, will be in line with value pricing (Fuhrman, 2009). She notes that the coffee shops that offer cheap coffee, as well as quick service, will be consumers’ number one choice. Fuhrman also writes “Eighteen to 34-year-olds are the group that avidly patronize coffeehouses, yet the group is least likely to be swayed by coffee alone. These consumers are looking for variety in coffee drinks, other beverages and even the food they buy when they go out” (Fuhrman, 2009). In other words, it is important to offer a variety of caffeinated and non-caffeinated beverages on a coffeehouse menu to best serve the eighteen to 34 year old population (Fuhrman, 2009).IV. Proposed PredictorsHealth Variables:Attitude toward calorie content (Luo, 2010)Attitude toward nutrition labels (Freedman and Connors, 2011)Corporate Social Responsibility (CSR) Factors:Emotional involvement with CSR (Katrinili, Gunay, Biresselioglu, 2011)Importance of donation-based purchases (Wintrich and Barone, 2011)Importance of the ethical value of product (Pelsmacker, Janssens, Sterckx andMielants, 2005)Importance of Fair trade information (d’Astous and Mathieu, 2008)Atmosphere Variables:Attitude toward store atmosphere (Walsh, Shiu, Hassan, Michaelidou, and Beatty,2011)Importance of uniqueness (Patterson, Scott and Uncles, 2010)Attitude toward scents (Bradford and Desrochers, 2009)Need for personal space to relax, do work (Plog, 2005)Need for personal space to do work (Plog, 2005)Importance of Wi-Fi internet (Brow, 2008)Attitude toward modern design (Lisanti, 2010)Importance of ambiance (Cuesta, 2001)Promotional Factors:Desire for holiday-themed products (McLaughlin, 2004)Desire for unique food options (Brow, 2008)Desire for discounted products (Brow, 2008)Importance of coupon promotions (Taylor and Long-Tolbert, 2002)Importance of loyalty cards (Bainbridge, 2011, May 04)Desire for menu variation (Nemes, 2002)Entertainment Variables:Desire for new music (“Coffeehouses”, billboard)Importance of entertainment (Nemes, 2002)Convenience Factors:Need for convenience in coffee purchasing (Sichtermann, 2011)Desire for ready-to-drink coffees (Scott, 2009)Importance of coffee venue location (Halliday and MaCarthur, 2005)Desire for home-brew coffee availability (Scott, 2009)Importance of coffee availability throughout the day (Halliday and MaCarthur, 2005)Desire for a variety of beverage and food items (Fuhrman, 2009)Personal Factors:Desire for third place in life (Rosenbaum, 2006)Desire to fit into chic, sophisticated lifestyle (Scott, 2006)Desire to interact with friendly employees (Anonymous, 1996)Desire to personalize own coffee drink and brew (Sichtermann, 2011), (Halliday andMaCarthur, 2005)Importance of lower-priced coffees (Halliday and MaCarthur, 2005)Importance of affordability (York, 2009)Desire for reasonable prices (Fuhrman, 2009)Importance of peer persuasion (d’Astous and Mathieu, 2008)V. MeasuresOur research team developed original set of predictors for this study (displayed in section IV) using our literature review of the coffee industry and purchasing habits. This list of potential predictors included variables related to location (i.e., the importance of coffee shop proximity to study spaces), store design (i.e., importance of clean physical facilities), atmosphere, store employees (i.e., the importance of friendly and knowledgeable employees), menu variety (i.e., importance of numerous menu options), convenience (i.e., the importance of a bank‘s hours of operation), unique menu options (i.e., importance of one-of-a-kind menu items), specialty beverage options (i.e., the importance of seasonal and limited-time-only beverages), posted nutritional information (i.e., importance of available menu items’ nutrition contents), coupon promotions, loyalty cards (i.e., impact of loyalty cards on brand loyalty), and other (i.e., the importance of a coffee shop’s corporate social responsibility).From this extensive list of 35 potential predictors, our team chose the most frequently used and most prevalent predictors from past coffee industry and purchasing research. In order to better serve our client, our team removed the potential predictors that were least significant in previous research. We narrowed down our predictors, which allowed us to implement a study to test our dependent variable: the likelihood that a student will choose a specific coffee venue when influenced by certain independent variables (i.e., coffee venue location, etc.). The final predictors for this study included ten major influencers: location, design, atmosphere, employees, unique menu options, specialty beverage options, nutritional information, coupons, loyalty cards, and corporate social responsibility.We then selected measures from the Marketing Scales Handbook that corresponded with our list of final predictors. Next, we altered the most relevant scales and measures to fit our study including Store Image Pleasantness (Brady and Cronin, 2001), Ambience (Brady and Cronin, 2001), Store Design (Baker, Grewal and Parasuraman, 1994), Store Images (Signh, 2006), Design (Brady and Cronin, 2001) and Coupon Involvement (Lichtenstein, Netemeyer, and Burton, 1990).We also independently developed additional measures including Importance of Coffee Venue Location, Attitude Toward Store Employees, Importance of Menu Variety, Importance of Unique Menu Options, Importance of Specialty Beverage Options, Attitude Toward Posted Nutritional Information, Importance of Loyalty Cards and Importance of Corporate Social Responsibility. All of our 35 measures were paired with Likert-type scales with five points. One of the scales we used was 1-Strongly Disagree, 2-Disagree, 3-Neutral, 4-Agree, and 5-Strongly Agree. The other scale we used was 1-Does Not Describe Me At All, 2-Doesn’t Really Describe Me, 3-Can’t Really Tell, 4-Sometimes Describes Me, 5-Definitely Describes Me.The construct, Importance of Coffee Venue Location, measured the extent to which individuals perceive location as important. Location-related variables were pertinent in past research (Halliday and MaCarthur, 2005; Sichtermann, 2011). The individual measures were:The location of a coffee shop is important to me. It’s important that a coffee shop is close to where I live. It’s important that a coffee shop is close to where I take classes. It’s important that a coffee shop is close to where I study (i.e., dorm, library, student lounge)The Attitude Toward Store Design construct measured the extent to which individuals appreciate store design. We found this construct to be relevant in past research, as well (Walsh, Shiu, Hassan, Michaelidou, and Beatty, 2011). The individual measures were:A coffee shop’s interior design is important to meThe interior design of a coffee shop attracts my attentionI prefer a coffee shop with merchandise that appears organizedI prefer a coffee shop with clean physical facilitiesI prefer a coffee shop with attractive physical facilitiesThe Importance of Atmosphere construct measured the extent to which individuals appreciate store atmosphere. This construct was created using predictors that Lisanti (2010) and Cuesta (2001) identified in their research. This construct’s individual measures were:A Coffee shop’s atmosphere is important to meI prefer a coffee shop that has a pleasant atmosphereThe Attitude Toward Store Employees construct measured the consumer’s tendency to choose one coffee shop over another based on interactions with store employees. We drew this construct from predictors identified in a Starbucks corporate publication (1996); it consisted of the following measures:It is important to me that a coffee shop has friendly employeesI prefer store employees to greet me courteously when I enter a storeI expect coffee shop employees to be knowledgeable I expect coffee shop employees to provide service in a timely mannerThe Importance of Unique Menu Options measured the extent to which individuals perceive unique food and beverage options as important. Fuhrman (2009) and Brow (2008) used these predictors in their research studies. These measures included: Unique beverage options are important to meUnique food options are important to meThe construct Importance of Specialty Beverage Options measured the extent to which individuals perceive specialty beverage options as important. These measures included:When visiting a coffee shop, I am likely to purchase a seasonal beverageWhen visiting a coffee shop, I am likely to purchase a limited-time-only beverageAttitude Toward Posted Nutritional Information on menus measured the extent to which posted nutritional information affects a customer’s choice to purchase a food or beverage item. These measures included:I feel that posting nutritional information on menus is importantWhen nutritional information is available at a coffee shop, I take it into consideration when orderingKnowing the nutritional contents in my food is important to meKnowing the nutritional contents in my beverage is important to meThe construct Importance of Coupon Promotions measured the importance of coupon promotions in a consumer’s selection of a coffee shop. Taylor and Long-Tolbert (2002) used this construct in their research. These measures included:I use coupons when I purchase coffeeI have favorite brands, but most of the time I buy the brand I have a coupon forI am more likely to buy brands for which I have a couponCoupons have cause me to buy products I normally would not buyOur Importance of Loyalty Cards construct measured the importance of loyalty card programs in a consumer’s selection of a coffee shop. Bainbridge (2011) used this loyalty card construct in past research. The construct’s measures included:I use loyalty cards when I purchase coffeeI use a coffee shop’s loyalty card every time I make a purchase at that shopI am more likely to buy brands for which I have a loyalty cardBeing a member of one coffee shop loyalty card program makes me less sensitive to the benefits offered by other coffee shop loyalty card programsThe Importance of Corporate Social Responsibility construct measured a consumer’s tendency to purchase coffee based on a company’s corporate social responsibility practices. Katrinili, Gunay and Biresselioglu (2011) used this construct in their research. This construct’s measures included:I am likely to buy coffee from a company that helps the global communityI am likely to buy coffee from a company that helps the local communityI am likely to buy coffee from a coffee company that helps the environmentWe tested the dependent variable in one of our demographic measures. We asked: “If you were to make a decision about purchasing coffee from a shop today, how likely would you be to purchase coffee at each of the following?” Underneath the question, we listed Dunkin’ Donuts and its competitors, first City Convenience, then Dunkin’ Donuts, Starbucks, and a fill-in-the-blank space labeled “Other.” We measured the responses to this question using a five-point, Likert-type scale that included 1-Very Unlikely, 2-Unlikely, 3-Neither Unlikely Nor Likely, 4-Likely to 5-Very Likely.Additionally, we included one question that read, “At which coffee shops do you currently purchase coffee?” with the options to check City Convenience, Dunkin’ Donuts, Starbucks and “Other.” This question gave us an idea of where most students are already getting their coffee. After this question, we wanted to test how likely students would be to switch from one coffee venue to another, so our next question read, “What is the likelihood that you will switch coffee shops in the next 6 months?” We measured the responses to this question using a five-point Likert-type scale that included 1-Very Unlikely, 2-Unlikely, 3-Neither Likely Nor Unlikely, 4-Likely, 5-Very Likely.We included four questions about demographics, as well. First, we asked academic level and provided boxes for survey participants to select freshman, sophomore, junior, senior, or master’s. Next we asked “How many times a week do you purchase coffee from a coffee shop” and provided boxes where survey participants could select 0-2, 3-5, 6-8, 9-11, and 12 or more. Third we asked “How old are you” and provided a line for the survey participants to write their ages. The last question asked about gender, we provided survey participants a space to select male or female. Table 1A: Constructs and Measures?Importance of coffee shop location: The extent to which individuals perceive location as important.Strongly DisagreeDisagreeFeel NeutralAgreeStrongly AgreeThe location of a coffee shop is important to me. ?????It’s important that a coffee shop is close to where I live.?????It’s important that a coffee shop is close to where I take classes.?????It’s important that a coffee shop is close to where I study (i.e. dorm, library, student lounge).??????Importance of menu variety: The extent to which individuals perceive variety of food and beverage options as important.Strongly DisagreeDisagreeFeel NeutralAgreeStrongly AgreeA coffee shop’s food choices are important to me.?????A coffee shop’s beverage choices are important to me. ?????Importance of unique menu options: The extent to which individuals perceive unique food and beverage options as important.Strongly DisagreeDisagreeFeel NeutralAgreeStrongly AgreeUnique beverage options are important to me. ?????Unique food options are important to me.Importance of specialty beverage options: The extent to which individuals perceive specialty beverage options as important.Strongly DisagreeDisagreeFeel NeutralAgreeStrongly AgreeWhen visiting a coffee shop, I am likely to purchase a seasonal beverage.When visiting a coffee shop, I am likely to purchase a limited-time-only beverage.??????Attitude toward posted nutritional information on menus: The extent to which posted nutritional information affects a customer’s purchases.Strongly DisagreeDisagreeFeel NeutralAgreeStrongly AgreeI feel that posting nutritional information on menus is important. ?????When nutritional information is available at a coffee shop, I take it into consideration when ordering.?????Knowing the nutritional contents in my food is important to me.?????Knowing the nutritional contents in my beverage is important to me. ??????Attitude toward store design: Extent to which individuals appreciate store design.Strongly DisagreeDisagreeFeel NeutralAgreeStrongly AgreeA coffee shop’s interior design is important to me.?????The interior design of a coffee shop attracts my attention. ?????I prefer a coffee shop with merchandise that appears organized.I prefer a coffee shop with clean physical facilities.?????I prefer a coffee shop with attractive physical facilities.?????Importance of atmosphere: The extent to which individuals appreciate store atmosphere.Strongly DisagreeDisagreeFeel NeutralAgreeStrongly AgreeA coffee shop’s atmosphere is important to me.?????I prefer a coffee shop that has a pleasant atmosphere. ?????Importance of coupon promotions: The importance of coupon promotions in a consumer’s selection of a coffee shop.Strongly DisagreeDisagreeFeel NeutralAgreeStrongly AgreeI use coupons when I purchase coffee.?????I have favorite brands, but most of the time I buy the brand I have a coupon for.?????I am more likely to buy brands for which I have a coupon.?????Coupons have caused me to buy products I normally would not buy.?????Importance of loyalty cards: The importance of loyalty card programs in a consumer’s selection of a coffee shop.Strongly DisagreeDisagreeFeel NeutralAgreeStrongly AgreeI use loyalty cards when I purchase coffee.?????I use a coffee shop’s loyalty card every time I make a purchase at that shop. ?????I am more likely to buy brands for which I have a loyalty card.?????Being a member of one coffee shop loyalty card program makes me less sensitive to the benefits offered by other coffee shop loyalty card programs.?????Importance of corporate social responsibility: A consumer’s tendency to purchase coffee based on a company’s corporate social responsibility.Does not describe me at allDoesn’t really describe meCan’t really tellSometimes describes meDefinitely describes meI am likely to buy coffee from a company that helps the global community.?????I am likely to buy coffee from a company that helps the local community.?????I am likely to buy coffee from a coffee company that helps the environment.?????VI. InstrumentStudent Opinion SurveyWe are collecting surveys for a graduate research class and are hoping to learn about your experiences with coffee shops. All answers are anonymous. Thank you!This section will ask questions about the coffee shops you use. Please check the answer box that best describes you and only choose one. ?Strongly DisagreeDisagreeFeel NeutralAgreeStrongly AgreeThe location of a coffee shop is important to me. ?????It’s important that a coffee shop is close to where I live.?????It’s important that a coffee shop is close to where I take classes.?????It’s important that a coffee shop is close to where I study (i.e. dorm, library, student lounge).????? This section will ask questions about your preferences for design and atmosphere of coffee shops. Please choose the box that describes you and only choose one.*Atmosphere: A special mood or character associated with a place.?Strongly DisagreeDisagreeFeel NeutralAgreeStrongly AgreeA coffee shop’s interior design is important to me.?????The interior design of a coffee shop attracts my attention. ?????I prefer a coffee shop with merchandise that appears organized.I prefer a coffee shop with clean physical facilities.?????I prefer a coffee shop with attractive physical facilities.???????Strongly DisagreeDisagreeFeel NeutralAgreeStrongly AgreeA coffee shop’s atmosphere is important to me.?????I prefer a coffee shop that has a pleasant atmosphere. ?????This section will ask you about your preferences of coffee shop’s employees. Please choose the box that describes you and only choose one.Attitude toward store employees: The consumer’s tendency to choose one coffee shop over another based on interactions with store employees. Strongly DisagreeDisagreeFeel NeutralAgreeStrongly AgreeIt is important to me that a coffee shop has friendly employees.?????I prefer store employees to greet me courteously when I enter a store.?????I expect coffee shop employees to be knowledgeable. ?????I expect coffee shop employees to provide service in a timely manner.?????This section will ask questions about menu selections in coffee shops. Please choose the box that describes you and only choose one.Strongly DisagreeDisagreeFeel NeutralAgreeStrongly AgreeUnique beverage options are important to me. ?????Unique food options are important to me.Strongly DisagreeDisagreeFeel NeutralAgreeStrongly AgreeWhen visiting a coffee shop, I am likely to purchase a seasonal beverage.When visiting a coffee shop, I am likely to purchase a limited-time-only beverage.??????Strongly DisagreeDisagreeFeel NeutralAgreeStrongly AgreeI feel that posting nutritional information on menus is important. ?????When nutritional information is available at a coffee shop, I take it into consideration when ordering.?????Knowing the nutritional contents in my food is important to me.?????Knowing the nutritional contents in my beverage is important to me. ?????This section will ask questions about loyalty cards and coupons for coffee shops. Please choose the box that describes you and only choose one.Loyalty Cards: A swipe card issued by a chain store to a customer used to record customer points awarded for money spent in the store.Strongly DisagreeDisagreeFeel NeutralAgreeStrongly AgreeI use coupons when I purchase coffee.?????I have favorite brands, but most of the time I buy the brand I have a coupon for.?????I am more likely to buy brands for which I have a coupon.?????Coupons have caused me to buy products I normally would not buy.?????Strongly DisagreeDisagreeFeel NeutralAgreeStrongly AgreeI use loyalty cards when I purchase coffee.?????I use a coffee shop’s loyalty card every time I make a purchase at that shop. ?????I am more likely to buy brands for which I have a loyalty card.?????Being a member of one coffee shop loyalty card program makes me less sensitive to the benefits offered by other coffee shop loyalty card programs.?????This section will ask your opinion on a coffee company’s corporate social responsibility, environmental sustainability and fair trade practices. *Corporate Social Responsibility: Operating a business in a manner that accounts for the social and environmental impact created by the business.* Fair trade: the negotiation of fair prices and certification of producers’ work, the finished products, and the mechanisms that are used for trade. Does not describe me at allDoesn’t really describe meCan’t really tellSometimes describes meDefinitely describes meI am likely to buy coffee from a company that helps the global community.?????I am likely to buy coffee from a company that helps the local community.?????I am likely to buy coffee from a coffee company that helps the environment.?????I am likely to buy coffee if it is fair tradeThis section will be asking questions about you and your current coffee usage.1) At which coffee shops do you currently purchase coffee? Check all that apply. City Convenience Dunkin’ Donuts Starbucks Other: ____________2) What is the likelihood that you will switch coffee shops in the next 6 months? Check one. very unlikely unlikely neither likely nor unlikely likely very likely3) If you were to make a decision about purchasing coffee from a shop today, how likely would you be to purchase coffee at each of the following? Check one for each row.Very UnlikelyUnlikelyNeither Likely Nor UnlikelyLikelyVeryLikelyCity ConvenienceDunkin’ DonutsStarbucks?????Other _______________1092201524004) Which of the following describes your current academic level: Check one.? Freshman Sophomore Junior Senior Master’s 004) Which of the following describes your current academic level: Check one.? Freshman Sophomore Junior Senior Master’s 1092208204205) How many times a week do you purchase coffee from a coffee shop? Check one.? 0-2 3-5 6-8 9-11 12 or more005) How many times a week do you purchase coffee from a coffee shop? Check one.? 0-2 3-5 6-8 9-11 12 or more10922017646656) How old are you? ____________ 7) Are you male or female? Check one. Male Female006) How old are you? ____________ 7) Are you male or female? Check one. Male FemaleVII. MethodologyOur research team first conducted background research on previous research studies. We derived potential predictors from those studies for our dependent variable: the factors that impact a college student’s decision to choose a specific coffee venue. We then created a list of measures based on our dependent variable, some of which, we adapted from the Marketing Scales Handbook (1990, 1994, 2001, 2006). Our team developed all of the other measures on our own. Finally, we defined our constructs and created items to determine the strength of each measure that influences a college student’s decision to choose a specific coffee venue.Next, we administered our 35-measure, self-report survey to a random sample of college students, during various times and on various days. Due to limited resources, we administered the survey to students at Boston University, rather than at a variety of universities, understanding that the Boston University student population is not wholly reflective of the college student demographic in general.We administered the first set on November 3, 2011 from 2:30pm to 4:00pm and we administered the second set on November 8, 2011 from 10:00am to 12:00pm. Our research team passed the surveys out to a random sample of students at Boston University’s George Sherman Union, a central gathering place for the University’s college students. We offered candy to student participants as an incentive. Our team tried to vary the times in which we administered the surveys in order to secure the optimal level of randomness.We administered the survey to a total of 100 students, 13 of which were male, and 37 of which were female. Our sample was comprised of people with very similar demographic characteristics. The survey respondents were all Boston University students between the ages of 18 and 36. Our team did not disclose our affiliation with Dunkin’ Donuts.After we collected the data, we coded the responses with numerical values that we then subsequently entered into SPSS. We assigned coding scales to fill-in-the- blank demographic information, which we created in order to make sure that our questions were exhaustive and given numerical values into SPSS. We then cleaned the data and tested the reliability of our multiple-item measures. We used Cronbach’s alpha on SPSS to do this. Measures that were .60 and greater, we considered reliable. All of our measures were reliable according to their corresponding Cronbach’s alpha scores.We then used the remaining, reliable measures to calculate the composites. Once we calculated the composites, we found their averages. Our team ran frequency tests of these averages in order to extract the percentage of students who displayed certain qualities. We examined the individual percentages for all responses. For composites where most respondents agreed or strongly agreed, we added the valid percentages together.Our research team then tested the correlations between the dependent and independent variables. We used Pearson’s coefficient (r) to find the direction and the strength of each correlation, which helped us understand how applicable these correlations were to the general college student population. After reviewing the results, we extracted the strongest predictors for our dependent variable, analyzed the trends within the predictors, and examined the relations among them.VIII. ResultsAnalysis of MeasuresAfter we collected all of our survey data and entered it into SPSS, we tested the reliability of each construct and the range of frequencies. The Importance of Coffee Venue Location construct consisted of four five-point Likert-type questions. Cronbach’s Alpha reliability for these items was 0.902, indicating excellent reliability. The Attitude Toward Store Design consisted of five five-point Likert-type questions. Cronbach’s Alpha reliability for these items was 0.744. The next construct, Importance of Atmosphere, consisted of two five-point Likert-type questions, with a Cronbach’s Alpha reliability of 0.794. Students’ Attitude Toward Store Employees consisted of four five-point Likert-type questions. It had a Cronbach’s Alpha reliability of 0.697. Importance of Unique Menu Options consisted of two five-point Likert-type questions. Cronbach‘s alpha reliability for these items was 0.701. The two five-point Likert-type questions that made up the Importance of Specialty Beverage Options construct had a Cronbach’s Alpha reliability of 0.886. Our next construct, Attitude Toward Posted Nutritional Information on Menus, consisted of four five-point Likert-type questions Cronbach‘s Alpha reliability of this construct was 0.943. The Importance of Coupon Promotions consisted of four five-point Likert-type questions. Cronbach’s Alpha reliability for this construct was 0.835. The Importance of Loyalty Cards construct consisted of four five-point Likert-type questions and had a Cronbach’s Alpha reliability of 0.89. The Importance of Corporate Social Responsibility construct, which consisted of four five-point Likert-type questions, had a Cronbach’s Alpha reliability of 0.929.CONSTRUCTSCRONBACH'S ALPHANUMBER OF ITEMSImportance of coffee shop location0.902 (excellent)4Attitude toward store design0.744 (very good)5Importance of atmosphere0.794 (very good)2Attitude toward store employees0.697 (good)4Importance of unique menu options0.701 (very good)2Importance of specialty beverage options0.886 (excellent)2Attitude toward posted nutritional information on menus0.943 (excellent)4Importance of coupon promotions: 0.835 (excellent)4Importance of loyalty cards0.89 (excellent)4Importance of corporate social responsibility0.929 (excellent)4Table 2A: Reliability of ConstructsAnalysis of Variation of MeasuresOur team developed 10 multiple-measure predictors. All 10 predictors had a reliable Cronbach’s Alpha Score; the lowest score was .697. For the 10 multiple-measure predictors, we used the SPSS program to generate frequency, as well as mean, median and mode. All measures were scored using the five-point Likert-type scale. Frequency Distribution, Sampling Error and Mean/Median/Mode of Multi-Item Measures-11430011430We had 100 valid responses for the predictor Importance of Coffee Shop Location. The 5-point Likert-type scale ranged from 1-Strongly Disagree to 5-Strongly Agree. The mean score was 4.15, the median was 4.00 and the mode was 5.00, correlating with Strongly Agree. Two (2%) respondents answered Strongly Disagree; 3 (3%) answered Disagree; and 24 (24%) of respondents chose Neutral. We had 47 (47%) respondents that answered Agree and 24 (24%) that answered Strongly Agree. In total, 71 (71%) chose Agree and Strongly Agree. These results indicate that student coffee consumers value coffee shop location as highly important.The predictor Attitude Toward Store Design had 100 valid responses. Again, the 5-point 21717000Likert-type scale ranged from 1-Strongly Disagree to 5-Strongly Agree. The mean score for this predictor was 4.14, the median was 4.00 and the mode was 4.00, correlating with Agree. This predictor was in the Agree range. We had 0 (0%) respondents that answered Strongly Disagree; 1 (1%) that answered Disagree; and 37 (37%) respondents that answered Neutral. We had 57 (57%) respondents that answered Agree and 5 (5%) that answered Strongly Agree. In total, 62 (62%) chose Agree and Strongly Agree. These results indicate that student coffee consumers value store design as moderately important.08255Our predictor Importance of Atmosphere had 100 valid responses. The 5-point Likert-type scale ranged from 1-Strongly Disagree to 5-Strongly Agree. The mean score for this predictor was 4.14, the median was 4.00 and the mode was 4.00, correlating with Agree. This predictor was in the Agree range. We had 0 (0%) respondents that answered Strongly Disagree; 0 (0%) that answered Disagree; and 24 (24%) respondents that answered Neutral. We had 54 (54%) respondents that answered Agree and 22 (22%) that answered Strongly Agree. In total, 76 (76%) chose Agree and Strongly Agree. These results indicate that student coffee consumers value atmosphere as important.083820With the predictor Attitude Toward Store Employees, we had 100 valid responses. The 5-point Likert-type scale ranged from 1-Strongly Disagree to 5-Strongly Agree. The mean score for this predictor was 4.07, the median was 4.00 and the mode was 4.00, correlating with Agree. This predictor was in the Agree range. We had 0 (0%) respondents that answered Strongly Disagree; 2 (2%) that answered Disagree; and 30 (30%) respondents that answered Neutral. We had 58 (58%) respondents that answered Agree and (10%) that answered Strongly Agree. In total, 68 (68%) chose Agree and Strongly Agree. These results indicate that student coffee consumers value store employees as moderately important when choosing a coffee shop.The predictor Importance of Unique Menu Options had 100 valid responses. The 5-point Likert-type scale ranged from 1-Strongly Disagree to 5-Strongly Agree. The mean score for this predictor was 3.48, the median was 3.50 and the mode was 3.00, correlating with Neutral. We had 0 (0%) respondents that answered Strongly Disagree; 7 (7%) that -1143000answered Disagree; and 61 (61%) of respondents that answered Neutral. We had 27 (27%) respondents that answered Agree and 5 (5%) that answered Strongly Agree. In total, 32 (32%) chose Agree and Strongly Agree. These results indicate that coffee consumer students are very neutral to the importance of unique menu options when choosing a coffee shop.2171700160020We had 100 valid responses for our predictor Importance of Specialty Menu Options. The 5-point Likert-type scale ranged from 1-Strongly Disagree to 5-Strongly Agree. The mean score for this predictor was 3.41, the median was 3.50 and the mode was 3.00, correlating with Neutral. We had 2 (2%) respondents that answered Strongly Disagree; 19 (19%) that answered Disagree; and 40 (40%) respondents that answered Neutral. We had 30 (30%) respondents that answered Agree and 9 (9%) that answered Strongly Agree. In total, 39 (39%) chose Agree and Strongly Agree Disagree. These results indicate that student coffee consumers are neutral toward specialty menu options, leaning toward valuing specialty menu options as important.022860The predictor Attitude Toward Posted Nutritional Information on Menus had 100 valid responses. The 5-point Likert-type scale ranged from 1-Strongly Disagree to 5-Strongly Agree. The mean score for this predictor was 3.85, the median was 4.00 and the mode was 4.00, correlating with Agree. We had 3 (3%) respondents that answered Strongly Disagree; 12 (12%) that answered Disagree; and 22 (22%) respondents that answered Neutral. We had 43 (43%) respondents that answered Agree and 20 (20%) that chose Strongly Agree. In total, 63 (63%) chose Agree and Strongly Agree. These results indicate that student coffee consumers value posted nutritional information as important when choosing a coffee venue.0221615We had 100 valid responses for the predictor Importance of Coupon Promotions. The 5-point Likert-type scale ranged from 1-Strongly Disagree to 5-Strongly Agree. The mean score for this predictor was 2.65, the median was 2.50, and the mode was 2.00, correlating with Disagree. We had 13 (13%) respondents that answered Strongly Disagree; 49 (49%) that answered Disagree; and 31 (31%) respondents that answered Neutral. We had 6 (6%) respondents that answered Agree and 1 (1%) that answered Strongly Agree. In total, 7 (7%) chose Agree and Strongly Agree These results indicate that student coffee consumers are less likely to choose a coffee venue based on coupon promotions.0297180The predictor Importance of Loyalty Cards had 100 valid responses. Again, the 5-point Likert-type scale ranged from 1-Strongly Disagree to 5-Strongly Agree. The mean score for this predictor was 2.94, the median was 2.88 and the mode was 2.00, correlating with Disagree. We had 3 (3%) respondents that answered Strongly Disagree; 47 (47%) that answered Disagree; and 33 (33%) respondents that answered Neutral. We had 11 (11%) respondents that answered Agree and 6 (6%) that answered Strongly Agree. In total, 17 (17%) chose Agree and Strongly Agree. These results indicate that student coffee consumers are less likely to choose coffee venues based on their loyalty card programs.We had 100 valid responses for the predictor Importance of Corporate Social Responsibility. The 5-point Likert-type scale ranged from 1-Strongly Disagree to 5-Strongly Agree. The mean score for this predictor was 3.58, the median was 3.75 and the -3683040640mode was 4.00, correlating with Neutral to Agree. We had 3 (3%) respondents that answered Strongly Disagree; 13 (13%) that answered Disagree; and 35 (35%) respondents that answered Neutral. We had 41 (41%) respondents that answered Agree and 8 (8%) that answered Strongly Agree. In total, 49 (49%) chose Agree and Strongly Agree. These results indicate that student coffee consumers value corporate social responsibility as moderately important when choosing coffee venues.Table 4A: Analysis of Variation of Multi -Item MeasuresPREDICTORNFREQUENCYMEANMEDIANMODEImportance of coffee shop location1002 (2%)- Strongly Disagree3 (3%)- Disagree24 (24%)- Neutral47 (47%)- Agree24 (24%)- Strongly Agree 4.154.005.00Agree and Strongly Agree combined:71 (71%) Attitude toward store design1000- Strongly Disagree1 (1%)- Disagree37 (37%)- Neutral57 (57%)- Agree5 (5%)- Strongly Agree 3.984.004.00Agree and Strongly Agree combined:62 (62%)Importance of atmosphere1000- Strongly Disagree0- Disagree24 (24%)- Neutral54 (54%)- Agree22 (22%)- Strongly Agree 4.144.004.00Agree and Strongly Agree combined:76 (76%)Attitude toward store employees1000- Strongly Disagree2 (2%)- Disagree30 (30%)- Neutral58 (58%)- Agree10 (10%)- Strongly Agree4.074.004.00Agree and Strongly Agree combined:68 (68%)Importance of unique menu options1000- Strongly Disagree7 (7%)- Disagree61 (61%)- Neutral27 (27%)- Agree5 (5%)- Strongly Agree3.483.503.00Agree and Strongly Agree combined:32 (32%)Importance of specialty beverage options1002 (2%)- Strongly Disagree19 (19%)- Disagree40 (40%)- Neutral30 (30%)- Agree9 (9%)- Strongly Agree3.413.503.00Agree and Strongly Agree combined:39 (39%)Attitude toward posted nutritional information on menus1003 (3%)- Strongly Disagree12 (12%)- Disagree22 (22%)- Neutral43 (43%)- Agree20 (20%)- Strongly Agree3.854.004.00Agree and Strongly Agree combined:63 (63%)Importance of coupon promotions10013 (13%)- Strongly Disagree49 (49%)- Disagree31 (31%)- Neutral6 (6%)- Agree1 (1%)- Strongly Agree2.652.502.00Agree and Strongly Agree combined:7 (7%)Importance of loyalty cards1003 (3%)- Strongly Disagree47 (47%)- Disagree33 (33%)- Neutral11 (11%)- Agree6 (6%)- Strongly Agree 2.942.882.0Agree and Strongly Agree combined:17 (17%)Importance of corporate social responsibility1003 (3%)- Strongly Disagree13 (13%)- Disagree35 (35%)- Neutral41 (41%)- Agree8 (8%)- Strongly Agree 3.583.754.00Agree and Strongly Agree combined:49 (49%)Demographic- related questions:Which of the following describes your current academic level?1001 (1%)- Freshman58 (58%)- Sophomore27 (27%)- Junior5 (5%)-Senior9 (9%)-Master’s2.632.00(Sophomore)2.00(Sophomore)How old are you?1003 (3%)- 18 years old47 (47%)- 19 years old30 (30%)- 20 years old10 (10%)- 21 years old5 (5%)- 22 years old2 (2%)- 23 years old1 (1%)- 24 years old1 (1%)- 30 years old1 (1%)- 36 years old20.0319.5019.00Are you a male or female?10013 (13%)- Male87 (87%)- Femalen/an/an/aPredictors Ranked by High Positive ResponsesWe generated the frequency distribution to help us determine what factors were more important than others. We found that the single most important factor was Importance of Atmosphere, with 76% of respondents who Agreed or Strongly Agreed. The second most important was Importance of Coffee Shop Location with 71% who Agreed or Strongly Agreed. Attitude Toward Store Employees was third with 68% who Agreed or Strongly Agreed, followed by fourth, Attitude Toward Posted Nutritional Information with 63% who Agreed or Strongly Agreed. Next was Attitude Toward Store Design with 62% Agreed or Strongly Agreed, followed by sixth, Importance of Corporate Social Responsibility with 49% Agreed or Strongly Agreed. The seventh most important factor was Importance of Specialty Beverage Options with 39% who Agreed or Strongly Agreed and next, Importance of Unique Menu Options with 32% who Agreed or Strongly Agreed. The least important factors were Importance of Loyalty Cards at 17% who Agreed or Strongly Agreed and last, Importance of Coupon Promotions at 7% who Agreed or Strongly Agreed. CorrelationsWe used the SPSS software to measure correlations of the strength and the direction of the relationships between the dependent variables and the independent variables (Pearson product moment co-efficient, (r)). We ran the correlations, the first was: “If you were to make a decision about purchasing coffee from a shop today, how likely would you be to purchase coffee at each of the following…?” The answer choice for this question included our client, Dunkin’ Donuts, along with our two major competitors, City Convenience and Starbucks. We ran these three answer choices (dependent variables) with our 10 predictors (independent variables) on the SPSS program.After we ran these correlations, we found that the measure, “If you were to make a decision about purchasing coffee from a shop today, how likely would you be to purchase coffee at City Convenience” had a relationship with three of our predictors; two positive relationships and one inverse relationship. These predictors were Importance of Specialty Menu Options, Importance of Unique Menu Options, and Attitude Toward Store Employees. We found that the relationship between students who purchase coffee and our construct, the Importance of Specialty Beverage Options, was moderate, with a score of r = .29 and a probability of p =.003. The correlation for Importance of Unique Menu Options also had a moderate score of r= .278 and a probability of p=.005. And the correlation for Attitude Toward Store Employees had a moderate inverse relationship with a score of r= -.227 and a probability of .023. This indicates that respondents choose to purchase coffee at City Convenience because of, most importantly, their specialty beverage options and also their unique menu options. Respondents also did not factor store employees into their choices to purchase coffee from City Convenience. Our second dependent variable measure, “If you were to make a decision about purchasing coffee from a shop today, how likely would you be to purchase coffee at Starbucks,” had a positive relationship with three of our predictors. These predictors include Importance of Coffee Shop Location, Attitude Toward Store Employees and Attitude Toward Store Design. The independent variable, Importance of Coffee Shop Location, had a moderately strong relationship with a score of r= .279 and a probability of p= .005. The independent variable, Attitude Toward Store Employees, had a weak relationship, approaching statistical significance, with a score of r= .189 and a probability of p= .06. Also, the independent variable, Attitude Toward Store Design, had a moderate score, approaching statistical significance, of r= .18 and a probability of p= .073. This indicates a strong correlation between location and a respondent’s choice to go to Starbucks to purchase coffee. Respondents were also moderately likely to choose to purchase coffee from Starbucks based on store design, and a weak correlation suggests that students are potentially likely to choose Starbucks based on its employees.The third dependent variable, “If you were to make a decision about purchasing coffee from a shop today, how likely would you be to purchase coffee at Dunkin’ Donuts” had two positive relationships and one inverse relationship, as well, with three of our predictors/independent variables. These predictors include Importance of Atmosphere, Importance of Coupon Promotions, and Importance of Specialty Beverage Options. The predictor Importance of Atmosphere had a moderate inverse relationship, with a score of r= -.295 and a probability of p= .003. The Importance of Coupon Promotions had a moderately positive relationship, with a score of r= .294 and a probability of p= .003. Another predictor, Importance of Specialty Beverage Options, had a moderate relationship, with a score of .204 and a probability of p= .042. These findings indicate that students do not choose to purchase coffee from Dunkin’ Donuts based on store atmosphere, but based on coupon promotions and specialty beverage options.Table 5A-5C: Correlations between 10 predictors and dependent variable, “If you were to make a decision about purchasing coffee from a shop today, how likely would you be to purchase coffee at each of the following?” Listed by coffee venue, in rank of highest correlation to lowest.A. “If you were to make a decision about purchasing coffee from a shop today, how likely would you be to purchase coffee at City Convenience?”PredictorrProbability trend wouldn't project to population (p)Importance of Specialty Menu Options0.290.003Importance of Unique Menu Options0.2780.005Attitude Toward Store Employees-0.2270.023Importance of Coffee Shop Location0.1120.265Attitude Toward Posted Nutritional Information0.0790.436Importance of Coupon Promotions0.0580.564Importance of Corporate Social Responsibility-0.0040.996Importance of Loyalty Cards-0.0210.834Importance of Atmosphere-0.1270.207Attitude Toward StoreDesign-0.1470.144B. “If you were to make a decision about purchasing coffee from a shop today, how likely would you be to purchase coffee at Starbucks?”PredictorrProbability trend wouldn't project to population (p)Importance of Location0.2790.005Attitude Toward Store Employees0.1890.06Attitude Toward Store Design0.180.073Importance of Loyalty Cards0.1310.193Attitude Toward Posted Nutritional Info0.1030.309Importance of Specialty Menu Options0.0930.358Importance of Atmosphere0.0550.588Importance of Corporate Social Responsibility0.0470.642Importance of Coupon Promotions0.0320.752Importance of Unique Menu Options0.0160.871C. “If you were to make a decision about purchasing coffee from a shop today, how likely would you be to purchase coffee at Dunkin’ Donuts?”PredictorrProbability trend wouldn't project to population (p)Importance of Atmosphere-0.2950.003Importance of Coupon Promotions0.2940.003Importance of Specialty Menu Options0.2040.042Importance of Location0.060.555Importance of Loyalty Cards0.0190.851Attitude Toward Posted Nutritional Information00.999Importance of Corporate Social Responsibility-0.030.764Attitude Toward Store Employees-0.0660.515Importance of Unique Menu Options-0.0790.434Attitude Toward Store Design-0.1660.1IX. DiscussionDependent variableOur research team observed a number of features and tendencies regarding coffee purchasing habits in our student population. A composite of 53% of students surveyed were likely to purchase coffee from Dunkin’ Donuts, while in comparison a composite of 81% were likely to purchase coffee from Starbucks, the leading industry competitor. The survey indicated that 52% were likely to purchase coffee from City Convenience as well, making it almost even with Dunkin’ Donuts. The results also allowed our team to capture and describe a student’s likelihood to switch coffee shops. Overall, a composite of merely 8% of student survey respondents said they were actually willing to switch coffee shops in the next six months. The results of the survey showed that 64% of student survey respondents were unlikely to switch their coffee shops, and 28% were neutral.The results also indicated that respondents who are likely to choose a particular coffee venue over another found the following factors to be very important: location, atmosphere, specialty beverage options and coupons. Also, these respondents believed that they were moderately affected by unique menu options and store employee interactions.DemographicsThe demographic results allowed our team to understand the major characteristics of our respondents. Our survey respondents were primarily undergraduate females between the ages of 18 and 36, with the highest concentration of female respondents ages 19 and 20. A majority of our respondents were sophomores and fewer freshmen, junior, senior and master’s students.PredictorsFor our predictor Importance of Coffee Shop Location we found that the vast majority of students felt that coffee shop location was an important factor in their choosing of a particular coffee venue. This is consistent with the findings of Halliday and MaCarthur (2005). It also coincides with Shea’s research that finds selling coffee and food items in locations convenient to students is profitable (2005). Importance of Coffee Shop Location also directly correlated with a student’s choice of Starbucks as their coffee venue, making it an even more important predictor. Respondents also indicated that Importance of Atmosphere was an important factor in choosing a certain coffee venue over another. This result was consistent with Walsh, Shiu, Hassan, Michaelidou and Beatty’s research, which proved store atmosphere is very connected with customer satisfaction and loyalty (2011). We also found that the predictor, Attitude Toward Store Design, was important to students when choosing a coffee venue. This coincides with Waxman’s research that design features including cleanliness, lighting and comfortable furniture influence people to frequent certain coffee shops (2006). This predictor was not as important as atmosphere, though.Our predictor Importance of Specialty Menu Options was also a relatively important factor in a student’s choice of coffee venue. The article in the Spartanburg Herald coincides with this result, as the article details how a coffee house, which targets college students, offers unique and specialty menu options to successfully attract students (2008). While the Importance of Specialty Menu Options was only moderately important to students, it directly correlated with a student’s choice to purchase coffee at City Convenience, making it an important factor in choosing a coffee venue.Our predictor Importance of Coupon Promotion was of neutral importance to a student’s choice of coffee venue. This result is slightly inconsistent with Taylor and Long-Tolbert’s study, which indicated that coupons enticed customers to purchase items or a larger number of items due to promotional incentives (2002). This predictor was directly correlated to a student’s choice to purchase coffee at Dunkin’ Donuts, making it important for choice of coffee venue. Our predictor Importance of Loyalty Cards was also proven moderately important to students, but had no correlation to a student’s choice of a particular coffee venue. Our predictor Attitude Toward Posted Nutritional Information was moderately important to a student’s decision to choose a particular coffee venue. This is consistent with Freedman and Connors’ study, which indicates the high influence of nutritional information on college students’ choices regarding food and beverages (2011). Through our research, we also found that the predictor Attitude Toward Store Employees had a moderately high level of importance for students when choosing a coffee venue. This is consistent with the article we mention in our literature review published in 1996, which indicates that Starbucks’ employees are crucial to their business (Anonymous, 1996).Our predictor Importance of Unique Menu Options turned out to be of neutral importance for a student when he or she chooses a specific coffee venue. This is inconsistent with the article from our literature review about how a South Carolina coffee shop uses unique sandwiches and muffins to attract customers (Brow, 2008). Apparently only the specialty beverage items were deemed important to student respondents.Our last predictor Importance of Corporate Social Responsibility proved to be of neutral importance to students. This is inconsistent with Pelsmacker, Janssens, Sterckx and Mielants’ study, which indicated that consumers view the ethical value of a product as very important, especially in the coffee industry (2005). It is also inconsistent with Wintrich and Barone’s study about the high effectiveness of corporations using donation-based products.SummaryDunkin’ Donuts does not have as large of a presence on Boston University’s campus as its main competitor, Starbucks, and has nearly the same percentage of customers as another competitor, City Convenience. Starbucks has about 1/4 the number of student customers as Dunkin’ Donuts and City Convenience, according to our survey results. We found through our survey that the majority of students were not likely to switch coffee venues in the next six months.Our correlation results indicated that students view coffee shop location as important, which is why many students choose to purchase coffee at Starbucks. The predictor Importance of Atmosphere was also important, but had an inverse relationship with students who purchase coffee at Dunkin’ Donuts, indicating that students were not likely to choose Dunkin’ Donuts based on its atmosphere. This represents a potential area of growth for Dunkin’ Donuts. Additionally, our predictor, Importance of Coupon Promotions, was important, not so much based on the survey findings but in correlation to a student’s choice to purchase coffee at Dunkin’ Donuts based on coupon promotions. The last predictor we looked at was Importance of Specialty Beverage Options, which was only relatively important to students based on the survey, but had a strong correlation to a student’s choice to purchase coffee at City Convenience. While other factors were relatively important, these four had the strongest correlations with students’ choices to purchase coffee at particular coffee venues. X. Conclusions and RecommendationsRecommendationsOur research from this study indicates that while Dunkin’ Donuts has a moderate student consumer base, it is far behind its largest competition, Starbucks. While the majority of students we surveyed said they would not be likely to switch coffee venues in the next six months, we have developed several recommendations that could attract new student customers. From our study, we found that a main draw to Starbucks is location. Therefore, if Dunkin’ Donuts becomes more convenient for students, we believe Dunkin’ Donuts can attract more customers that usually purchase coffee at Starbucks. Also, we can attract City Convenience’s customers, who purchase coffee based on specialty beverage options, by offering unique, specialty beverage options at Dunkin’ Donuts.Our research also indicated a correlation between coupon promotions and the tendency for respondents to purchase coffee at Dunkin’ Donuts. By continuing to provide coupon promotions, Dunkin’ Donuts can also retain its current customers. Additionally, the inverse correlation between Dunkin’ Donuts and atmosphere indicates that college students do not go to Dunkin’ Donuts if they want a good atmosphere. Therefore, we believe that if Dunkin’ Donuts alters the store atmosphere, including design (which was important to 62% of students) and overall ambience, they can attract new customers.Additionally, we came across several areas that we will recommend for further study. Atmosphere: After compiling our survey results, we found an inverse relationship between store atmosphere and Dunkin’ Donuts, which indicates that students who are looking for a coffee venue with a good atmosphere will not choose Dunkin’ Donuts. Therefore, if Dunkin’ Donuts revamps its atmosphere, it is likely to attract more customers. This is why we have several recommendations involving store atmosphere.Currently, Dunkin’ Donuts does not offer a sit-down coffee shop atmosphere. It is focused on getting customers in and out quickly, with few places to sit and enjoy coffee and food. According to Walsh, Shiu, Hassan, Michaelidou and Beatty’s research, atmosphere is directly connected with customer satisfaction and retaining loyal customers (2011). Atmosphere as a whole includes ambience, cleanliness and store design (which we tested, and found was important to 62% of students). With these research results, as well as past research, we decided on the following four recommendations to increase Dunkin’ Donuts’ base of student customers. First, we recommend altering Dunkin’ Donuts’ interior design to have a retro, 1950’s theme that resembles the original Dunkin’ Donuts interior. By redeveloping the Dunkin’ Donuts stores and creating excitement surrounding a new Dunkin’ Donuts look, Dunkin’ Donuts will gain media publicity, as well as draw in new customers excited about the 1950’s theme. This will give the Dunkin’ Donuts stores a better overall setting where customers will want to sit and soak in the retro theme and designs.We also recommend that Dunkin’ Donuts provide comfortable seating for students. Waxman found that one of the most important parts of a coffee shop’s atmosphere is comfortable seating (2006). With comfortable seating, students will most likely frequent Dunkin’ Donuts, as well as stay there after they purchase a beverage or meal. When students need to study for classes, they tend to go where they are able to sit and study for an extended time period. If Dunkin’ Donuts offers more comfortable seating, students will be more likely to choose Dunkin’ Donuts as their coffee venue, and purchase Dunkin’ Donuts coffee and food.In addition to providing students with better seating in order for them to choose Dunkin’ Donuts and stay there, we recommend that Dunkin’ Donuts promote the fact that each store is equipped with Wi-Fi. This will help the overall Dunkin’ Donuts goals of gaining a larger student customer base by offering an atmosphere conducive to studying, especially with Wi-Fi for customers. To further promote the studying atmosphere, we recommend that Dunkin’ Donuts installs outlets or charging stations, for laptops and mobile devices, near tables and booths. This will attract student customers who need to charge their laptops while they study and complete school assignments. As Walsh, Shiu, Hassan, Michaelidou and Beatty found in their research, if a coffee shop has a better overall atmosphere, customers are more likely to be satisfied and willing to come back (2011). If Dunkin’ Donuts combines a new, exciting retro store design with a student focus, they will gain new student customers. Coupon Promotions: Our research also indicated that coupon promotions are directly and strongly correlated with students choosing to purchase Dunkin’ Donuts. It had a direct correlation with a student’s choice to purchase coffee specifically at Dunkin’ Donuts versus one of their competitors. Dunkin’ Donuts should continue to draw in customers by using new coupon promotions. According to Taylor and Long-Tolbert’s research, coupons entice customers to purchase new items or purchase more items due to promotions (2002). Currently, Dunkin’ Donuts sends coupons in the mail to customers. We recommend that Dunkin’ Donuts develop new coupon promotions to attract student customers. One recommendation for Dunkin’ Donuts with regard to coupon promotions is to develop universal coupons redeemable at all franchise store locations. Since Dunkin’ Donuts stores are franchised, often coupons only work at certain stores. But, if Dunkin’ Donuts develops coupons that can be redeemed at all stores, it will be easier for customers, including student customers, to use coupons. They will also be more likely to use coupons if they can be redeemed at the most convenient store, especially when there is a time concern.We also recommend that Dunkin’ Donuts have a representative dress as a recognizable seasonal character to represent a seasonal beverage (i.e., the pumpkin from Pumpkin Spice coffee), and hand out coupons on BU’s campus for the particular specialty beverage. Using representatives as seasonal characters will promote the products as well as create excitement surrounding seasonal beverages, which our research showed was an important indicator for students choosing coffee venues. Additionally, having the representative hand out coupons for seasonal beverages will entice students to try new beverages. As Taylor and Long-Tolbert discovered, coupons will make students more wiling to try new beverages (2002).Similar to the previous recommendation, we also recommend that Dunkin’ Donuts have a representative distribute coupons on college campuses twice per month. These coupons will make students more likely to try Dunkin’ Donuts, especially the discounted menu items, and will develop new, brand-loyal student customers. Handing out coupons directly on college campuses will also directly reach our target student audience.We also recommend that Dunkin’ Donuts create a mobile application entitled “DDU” (Dunkin’ Donuts University) for students to download on mobile phones and tablets. The app will include exclusive student offers, to further entice students to choose Dunkin’ Donuts as their preferred coffee venue. The app will also have the capability to register and store scanned QR codes from Dunkin’ Donuts coupons distributed by representatives or featured in local advertisements. The DDU app will store all coupons in one place so students have to use their mobile devices for discounts instead of keeping track of paper coupons. Offering a simple way to use coupons will further entice students to engage in using coupons and purchasing coffee and food from Dunkin’ Donuts.Our last coupon promotion recommendation is that stores offer scratch-off coupons for point of purchase discounts in on-campus Dunkin’ Donuts stores. We recommend that as students check out and pay for their orders, they receive scratch-off coupon tickets that they can use for future purchases. These scratch-off tickets will also have QR codes that students can scan and store in the DDU app, to use at their convenience. This will entice students to return to a local store to use their coupon. As Taylor and Long-Tolbert (2011) suggest, it will also make students more willing to try new products, therefore building the Dunkin’ Donuts student customer base. Specialty Beverage Options: Through our research, our team found that survey respondents look specifically for specialty beverage options when choosing a coffee venue. These tend to include menu items such as seasonal drinks and non-coffee beverage options. We developed six recommendations based on this research. Based on the premise of Dunkin’ Donuts’ current “Chance for StarDDom” contest promotion, our team recommends Dunkin’ Donuts host a contest entitled “Design your DDrink,” where participants design a specialty drink of their own creation with an opportunity for the most creative or popular entry to be sold in Dunkin’ Donuts stores across the country. We suggest that this contest be primarily promoted through social media to reach our targeted audience of college students.We also recommend that Dunkin’ Donuts allocate a percentage of their corporate marketing budget toward creating television commercials to promote popular seasonal beverages. These commercials will raise awareness and create excitement among customers and potential customers about new flavors that are only available for a limited amount of time. With the increasing popularity of single-serve coffee home-brewing machines and the convenience of buying coffee in larger quantities for groups, our team recommends that Dunkin’ Donuts offer their seasonal flavors in K-cups for home brewing and “Box o’Joe” for larger groups. Currently, only basic flavors of Dunkin’ Donuts coffees are offered in these ways, but we believe offering a variety of favors, as well as limited-time-only and seasonal flavors, will bring in new customers as well as drive sales of the already popular “Box o’Joe” and K-cup options. For the home brewer without the single-serve machine, it will be beneficial for Dunkin’ Donuts to offer their seasonal and limited-time-only flavors in 24 oz. big bags of loose grounds for conventional, home coffee brewers.Through our research, our team found that not all college students drink coffee on a daily basis. We believe it will be beneficial for Dunkin’ Donuts to expand their selection of non-caffeinated beverage and tea options. This includes seasonal flavors for iced and hot teas, smoothies, hot chocolates, and ciders. In doing so, Dunkin’ Donuts will attract the non-coffee drinking population.Location: Our team found that store location, with regard to proximity to busy student areas on campus, is very important. We have come up with five recommendations to remedy this concern. First, our team recommends that Dunkin’ Donuts open more stores on or near the Boston University campus, including class buildings, the student union, libraries, and dorms. According to our own research, more students prefer Starbucks because of its proximity to regularly visited student areas on campus. In order to compete with Starbucks, Dunkin’ Donuts needs to open more locations on and near BU’s campus. Currently, there is only one Dunkin’ Donuts store located inside the Buick Street Market, which is just off of Commonwealth Avenue at the entrance to the Student Village residences. Although our recommendations do not include lower prices, and Dunkin’ Donuts’ products are already more reasonably priced compared to competitors, the study by Halliday and McCarther (2005) shows the importance of placing Dunkin’ Donuts in proximity to the specific customer group it is trying to reach. In the study, Dunkin’ Donuts opened stores in traditionally blue-collar communities to attract customers with lower priced items. The same principle applies to student populations as well. In instances where it is not possible to open new physical Dunkin’ Donuts stores inside of buildings with high student traffic, our team recommends that Dunkin’ Donuts launch a series of food truck services. This will make it possible to park close to the high traffic areas and add convenience for students walking to and from class, the library, and/or dorms. The added convenience, and quick service, that a food truck provides will attract students to visit existing Dunkin’ Donuts store locations. Shae’s research supports the idea of food cart services with regard to on-campus purchase convenience, specifically of food and beverage items (2005). To increase convenience and give students better accessibility to existing Dunkin’ Donuts locations, our team recommends that Dunkin’ Donuts work with universities and schools to be included on campus maps and mobile application maps. This will allow students to easily find the nearest Dunkin’ Donuts location using readily available resources. In addition to presence on existing university mobile applications, our team recommends adding a store locator to the above-mentioned “DDU” application, to allow students to find the closest Dunkin’ Donuts store locations both on and off campus. Recommendations for further studyCorporate Social Responsibility Practices: Although our study tested attitudes toward corporate social responsibility, it did not specifically test respondents’ attitudes toward a coffee shop’s charitable contributions or promotion of a social cause, involvement with environmentally-friendly practices or promotion of fair trade practices as separate constructs. Our previous research noted the importance of donation based purchases with regard to coffee shops (Wintrich and Barone, 2011), as well as the importance of the ethical value of a product (Pelsmacker, Janssens, Sterckx and Mielants, 2005) and distribution of fair trade information (d’Astous and Mathieu, 2008). Although our previous research did not focus on environmentally-friendly practices with relevance to corporate social responsibility, with the growing popularity of the green movement, our team advises that further research study the importance of these factors to college students. If people pay more attention to the environment and social causes, their attitudes toward coffee shops may be different.Store Employees: Although a majority of respondents in this study felt neutral toward store employees, a study of Starbucks, the leading industry competitor to Dunkin’ Donuts, showed that people have a great desire to interact with friendly store employees (Anonymous, 1996). It is important for Dunkin’ Donuts to conduct further research on the impact of the college student consumer’s attitude toward store employees in relation to their choice of coffee venue. We believe that future studies should concentrate on the effects of high quality of service, employee friendliness and knowledge of products and whether or not these factors actually affect where a student chooses to purchase coffee. Loyalty Card Programs: Our study only touched upon the importance of coffee shop loyalty card programs. Further research could be done to study different types of loyalty card programs, and college students’ preferences in terms of program offerings. Past studies, such as Bainbridge, 2011, indicate that loyalty card programs are a coffee industry norm and have an effect on a consumer’s choice to purchase coffee at a particular venue. Nutritional Information: Although our study only touched upon the importance of attitude toward nutrition labels, the results of our survey indicated a potential factor for further research. As there was no direct correlation between a college student’s choice to purchase coffee from Dunkin’ Donuts with regard to nutritional information, a majority of survey respondents said they found nutritional information at least somewhat important. Recent studies, such as Luo, 2010 and Freedman and Connors, 2011 indicate that display of nutritional information and healthy menu options have growing effect on a consumer’s choice to purchase coffee at a particular venue. Our research team recommends that future studies investigate the importance of nutrition labels, calorie content and healthy menu options with regard to students’ choices to purchase coffee from particular coffee venues.Menu Variety: Our study did not test respondents’ desires for menu variation with respect to their choice of where to purchase coffee. Previous research noted the importance of menu variation in consumers’ choices of where to purchase coffee (Nemes, 2002). Our research group recommends that further research examine the importance of menu variation with regard to college students’ coffee purchasing habits as specialty beverage options, a specific category of menu items, had a direct correlation with a college student’s choice to purchase coffee from a particular coffee venue.Scent: Our study did not test respondents’ attitudes toward scents in relation to their choices to purchase coffee from particular coffee venues because of the direct relation of scent to subconscious choice to purchase coffee. Previous research noted the importance of scent with regard to the purchasing habits of food and beverage consumers (Bradford and Desrochers, 2009). Since college students would not be able to consciously indicate their awareness of food and beverage scents in relation to coffee purchases, it would be important for Dunkin’ Donuts to further study the effect of the scent of food and beverage items on college students’ choices to purchase coffee at a particular coffee venue using experimental methods.Entertainment: Our study did not test the importance of entertainment with regard to respondents’ choices to purchase coffee from a particular coffee venue. Previous research, studies such as Nemes, 2002, and articles like the one in our literature review published in 2003, note the importance of new music and entertainment offerings at coffee venues with regard to the coffee purchasing habits of college students. We recommend that Dunkin’ Donuts further study the importance of entertainment with regard to a student’s choice to purchase coffee from a particular coffee venue.Table 6A: RecommendationsMAJOR INFLUENCERRECOMMENDATIONSAtmosphereAlter Dunkin’ Donuts’ interior to have a retro 1950’s theme that resembles the original Dunkin’ Donuts interiorProvide comfortable seating for students Promote Wi-Fi in Dunkin’ Donuts stores Install outlet plugs or charging stations near tables and boothsCouponsDevelop universal coupons to be redeemed at all franchise store locationsDistribute coupons in college student orientation packetsHave Dunkin’ Donuts representative dress as a recognizable seasonal character to advertise seasonal drinks and hand out coupons for seasonal beveragesDistribute coupons personally to students on college campuses two times per month Create a mobile application entitled “DDU” for college students to offer exclusive coupons, and coupons via QR codesOffer scratch-off coupons for point of purchase discounts in on-campus Dunkin’ Donuts storesSpecialty Beverage OptionsHost a contest entitled “Design your DDrink” via social mediaAllocate marketing budget to create commercials for seasonal beveragesOffer “Box o’ Joe” coffee in seasonal flavorsCreate K-cups in seasonal flavorsOffer 24 oz. big bag coffees in seasonal flavorsOffer specialty beverage options for non-caffeinated beverages and teas LocationOpen Dunkin’ Donuts stores on or near Boston University campus buildings including class buildings, student union, library, dorm buildingsLaunch food truck servicesWork with schools to get on campus maps and mobile applicationsSpecifically place Dunkin’ Donuts promotional materials in and around locations of closest proximity to the Dunkin’ Donuts storesAdd a Dunkin’ Donuts locator to “DDU” mobile application for students to locate the closest Dunkin’ Donuts storeXI. AssessmentMeasuresAfter conducting our literature review and evaluating the most important predictors that influence coffee purchasing behavior, we compiled our list of the top ten predictors. After this we used the Marketing Scales Handbook to find measures for our predictors. The Marketing Scales Handbook only had suitable predictors for Attitude Toward Store Design and Importance of Atmosphere that fit within these predictors’ constructs. Because of this, we decided to create our own measures to correspond with the remaining predictors. Using Cronbach’s alpha, we found that our measures were all very reliable (.70 or greater). None of our measures were unreliable. We were restrained in our survey due to time and resources, so we were only able to explore the top ten predictors we found to be most prevalent in previous research. With more time and resources, we would have liked to test attitudes toward other predictors we found less prevalent in our background research, including scents, menu variety and entertainment.Since all of our measures proved to be reliable, we are confident in the results we generated from our survey. InstrumentWe used a 35-measure self-report survey, with three demographic questions and three single-item questions to give us a background on where students currently purchased their coffee, and whether or not they would be likely to switch coffee venues. We sampled students entering the George Sherman Union on November 3, 2011 from 2:30pm to 4:00pm and November 8, 2011 from 10:00am to 12:00pm. Since students were in a rush to and from class, and in between eating lunch and class, we may have gotten hurried responses with imperfect responses to certain measures. We constructed the survey in sections, with the instructions for each section directly above the measures, so the repondents could understand how to complete the survey. This ensured the students knew what they were being asked at all times and would not mark an unintentional answer, except for the restrictions such as hurried students listed above. We used an easy-to-read, reasonably-sized font with enough spacing to make the measures clear and readable. We had no more than five measures per section.Our largest problem involved the fill in the blank “other” section, which was listed under “at which coffee shops do you currently purchase coffee” and “If you were to make a decision about purchasing coffee from a shop today, how likely would you be to purchase coffee at each of the following?” with a blank to fill in the particular name of the coffee venue. Our problem was that many did not fill that section in, and others filled in a wide array of responses, including the most interesting, “wa-wa” which is not even a coffee venue. We ended up disregarding the “other” section and focusing on our three main coffee venues, Dunkin’ Donuts, City Convenience and Starbucks. MethodologyDue to time and resource limitations, we were unable to get more than 100 surveys completed, which may have been why we had a larger majority of females than males, or a majority of 19-20 year-old students. Had we been able to survey more students, we may have been able to collect more general results relating to all college students, not just the demographics we surveyed. Had we handed out the survey in places other than the GSU, where a majority of freshmen and sophomore students use their meal plans, we may have gotten a wider variation of respondent demographics.Had we performed focus groups before creating the survey, we may have been able to get a better idea of where students tend to purchase coffee on BU’s campus. Our literature review indicated that Dunkin’ Donuts’ largest competition was Starbucks, but had we talked one-on-one with students, we may have learned about other coffee venues that attract student consumers that we did not propose in our study. We also could have used focus groups to learn what students value as important when choosing coffee venues, and then tested those findings in our survey. If we were to perform our research over again, we would conduct a focus group prior to the survey in order to test all possible factors that influence a college student’s decision to choose a specific coffee venue.XI. 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