Topic factors inuencing the consumer behavior in purchasing decisions at the coffee house shop among e commerce students at

Therefore, our group chose the topic: "Research on the factors influencing consumer behavior in purchasing decisions at The Coffee House among e- commerce students at UEF." For The Coffe

MINISTRY OF EDUCATION AND TRAINING

HO CHI MINH UNIVERSITY ECONOMICS AND FINANCE

TOPIC: Factors Influencing the Consumer Behavior in Purchasing Decisions at The

Coffee House Shop Among E-Commerce Students at UEF

Lecturer: Ms Nguyén Ngoc Thuy Tién

Subject’s ID: 241.EBU1130E

Class: A01

Student’s Group Name: The Coffee House Shop

Nguyễn Thị Thu Hién — 215120133 Nguyễn Phạm Tuân - 215121601

Ly Dang Huan — 215120795

Hà Bé Xuân Nghi - 215120390 Doan Anh Kién — 215121628 Mai Công My Kim — 215122155 Bùi Vũ Lân - 215122255 Tràn Thanh Thanh - 215122334

Ho Chi Minh City, August 2024

TEAMWORK EVALUATION

1 Nguyén Thi Thu Hién 215120133 100%

4 Hà Bé Xuân Nghỉ 215120390 100%

8 Tran Thanh Thanh 215122334 100%

INTERGRITY COMMITIMENT TH HT HT TK ki kh KH 1 ACGKNOWLEGEMENT QQ LH HH HH» TH Hành Ki ki Họ HE KE EU 2 CHAPTER I OVERVIEW QL LH TK KH Thọ 3

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6 Research Subject 0n ẤẮH 4Ầ 5

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CHAPTER II LITERATURE HREVIEW QQQQ HH HH Hành nh ki 6

CHAPTER III THEORET ICAL FRAMEWORK QQ nành 14

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TABLE OF CONTENTS

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2 INVESTIGATE QUESTIONS LH» nh kh KH kh 25

ở PERSONAL QUESTIONGS - LH HH Họ Họ Họ KH ĐK 28 CHAPTER VI DATA ANALYSIS - QQ LH» nh KHE Kkh 29 II? 897/109 Z((((((Lddjdgj(4 29

CHAPTER VII REASEARCH RESULTS - Q1 SH» vu 35

1 Cronbach’s Alpha Reliabiliy 'Ïlesf - - ST kh nọ Họ Hà 35

1.1 The first variable: Service Quality .ccccccsccsccceceeeeeeeeeeeeeeeesaeeeesennsensaseeeeeeeees 35 1.2 The second variable: PrOdUCI - - + + SH Họ nh 35 1.2.1 Results after removing the variable CLSP3 Ặ nhe 36

1.3.1 Results after removing the variable HATH1 . - cà 37 1.4 Fourth variable: Promotion .cceeeeeseenneeneeee eee ee terre rere eres eeaaaaaaaaaeaaeeeeeeeenenes 38

2 Exploratory Factor Analysis (EFA) -LLLQ LH» HH KH Ekh 39 2.1 Exploratory analysis for the independent variables -cccẮSẶS<Ằ 39 2.2 Exploratory analysis for the dependent variable - - - che 42

4 Demographic analySÌS nọ» nh TH nọ ki Hình BE KEU 44

CHAPTER VIII LIMITATIONS AND CAVEATS cccececccceececeeteeeeeeeeeeeeeeeeeeeeesaeeaaaaaea

1 Limitation in sampling me†hod - -ccc TH» Họ ket 46

2 The caveats in the questionnaire desÌgn - - - xxx nhe, 46

CHAPTER IX CONGLUSION AND RECOMMENDATIONS ẶẶĂĂ 48

TABLE OF FIGURES

Figure 1 Framework of Factors on Purchasing Decisions - Literature Review 1 7

Figure 2 Framework of Factors on Purchasing Decisions - Literature Review 2 8

Figure 3 Framework of Factors on Purchasing Decisions - Literature Review 3 9

Figure 4 Framework of Factors on Purchasing Decisions - Literature Review 4 11

Figure 5 Framework of Factors on Purchasing Decisions - Literature Review 5 12

Figure 6 Theoretical framework 00 cecceeeeee eee e ee ằằ 14

Figure 7 The new research model after running the EFA :::::e:sesseeseeeecereeeeeeeeeeeeees 41 Figure 8 Illustration of improving The Coffee House's Brand Among Fourth-Year Students On En nn ne eee eee 48 Figure 9 The latest new matcha collection from the coffee NOuSE eee eeeeeeeeneeeteeeeeees 49 Figure 10 Illustration of How The Coffee House Can Position Itself as the Ideal M/9).‹9:8e- 0g -(‹cd3 50

Table 1 Rating table 13 Table 2 Coding filter qU@S†ÏOInS -. .- ch gi và 30 Table 3 Coding investigate ques†ÏO'S -ccccnnn nh» ng» Họ nh 31

Table 4 Coding Personal ques†iOPS HH HH HH Hành ki Hy 31

Table 6 Direct Data File Import into SPSS LH HH» nh 32

Table 8 Corrected ltem - Total Correlation for Service Quality Ăằ cà 35 Table 9 Cronbach's Alpha for PrOdUCT - - TS S SH HH Hành Ki 35 Table 10 Corrected Item - Total Correlation for Product eeeeeeeeeeeceece eee eeeeeeeeeeeeeeeeees 36 Table 11 Cronbach's Alpha after removing the variable CLSPS 0 i eeeeeeeeeeeeeeeeeeees 36 Table 12 Corrected Item - Total Correlation after removing the variable CLSP$ 36 Table 13 Cronbach's Alpha for Brand lmage . - - - + 5S xxx the 37 Table 14 Corrected ltem - Total Correlation for Brand lmage - -< -+ 37 Table 15 Cronbach's Alpha after removing the variable HATH1 . se 37 Table 16 Corrected Item - Total Correlation after removing the variable HATH1 38

Table 17 Cronbach's Alpha for PromotiOn LH TT 38

Table 18 Corrected Item - Total Correlation for Promotion Ăn 38 Table 19 Observed Variables for Exploratory Factor Analysis (EFA) 39 Table 20 KMO and Barletts Test for independent variables . -c c2 39 Table 21 Total Variance Explained for independent variables .-. - 40

Table 22 Rotated Component MlatfiX HS HH HH ni Hit 40

Table 23 KMO and Barletts Test for dependent variables .-ẶẶ Sàn 42 Table 24 Total Variance Explained for debpendent variables -cẶ<<2<5 42

Table 25 Model SUMMAPY .- SH SH HH HH KH nh 43

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Table 29 Visit ÍreQU©TICY SH HH HH HH» Ki KT kế 45 IEl9 6 ĐC ao C)aẳiâẳaẳẲẮẲẮŨÚỚỚ 45

Table 31 Usage frequency and student year levelÌS -. Hs nh, 45

INTERGRITY COMMITMENT The members of Group The Coffee House, commit to upholding the highest standards of integrity in all our work and interactions We pledge to be honest, transparent, and accountable in our actions, ensuring that our contributions are genuine and free from any form

of dishonesty or misconduct We will respect each other's ideas and efforts, fostering a

collaborative environment built on trust and mutual respect Together, we strive to achieve

our goals with integrity and fairness at the core of everything we do

ACKNOWLEGEMENT

We would like to extend our heartfelt thanks to Ms Nguyen Ngoc Thuy Tien for her invaluable guidance and support throughout our group assignment for the Market Research

in e-commerce course Her insightful feedback, dedication, and encouragement have been

instrumental in helping us navigate the complexities of this project We deeply appreciate her

commitment to our learning and growth, and we are grateful for the knowledge and expertise she has shared with us This assignment would not have been possible without her contributions, and we are sincerely thankful for her unwavering support

We would also like to express our sincere thanks to our teammates for their hard work,

collaboration, and dedication throughout this group assignment Each member's unique

contributions and commitment to excellence played a crucial role in the successful completion

of our project The teamwork and mutual support we experienced have been truly invaluable,

and we are grateful for the collective effort that brought our assignment to fruition

In addition, we wish to express our appreciation to the authors and researchers whose works

served as key references for our project Their valuable insights and research provided the

foundation upon which we built our analysis and findings, significantly enriching our

assignment and guiding us in the right direction We also acknowledge the authorities

responsible for preserving and regulating access to these academic resources, as their role ir

maintaining the availability of these high-quality materials has been instrumental in

advancing our educational pursuits and ensuring the overall success of this assignment Thank you all for your contributions and support, which have been vital to the success of this

market research project

The diversity of coffee shop types has particularly contributed to meeting the increasing

consumer demand (1) One of the prominent brands in this development is The Coffee House,

with widespread presence and a business strategy favored by many customers

2 Symptoms

The Coffee House, established in 2014, quickly grew into one of the largest coffee chains in

Vietnam With more than 101 stores nationwide, this brand has attracted a large customer base thanks to its modern space and high-quality drinks (2) However, in recent years, The Coffee House has faced challenges in maintaining revenue growth due to fierce competition and changes in consumer behavior

During the 2019-2021 period, The Coffee House experienced continuous revenue decline, from 862 billion VND (2019) down to 735 billion VND (2020), and only 475 billion VND in

2021 Although the 2022 revenue increased by 67%, reaching 800 billion VND, post-tax profit remained negative, showing that the brand is struggling to maintain profitability

3 Problems

The main reasons for this situation stem from the loss of customer goodwill due to switching from glass cups to plastic ones, along with fierce competition from large coffee chains like

Highlands Coffee and new brands like Phé La (3)

In addition to the challenges of competition and service, The Coffee House experienced a serious incident in May 2024 when an accident occurred at one of their locations, causing injuries to both staff and customers Although this may have been an unintentional event, the subsequent handling of the crisis communication sparked controversy

Rather than acting quickly and clearly, The Coffee House's response was criticized as being

too late and lacking sincerity, leading to a wave of backlash on social media By August 2024,

3

public outrage continued, demonstrating the severe damage to the brand’s image in the eyes

of the public This event highlighted that poor crisis communication management can directly

affect customer trust, leading the brand to face boycotts and loss of goodwill from the public

(4)

4 Reason for choosing the topic

The challenges to brand image after the accident, combined with factors such as changes in services and fierce competition, have significantly impacted customer purchasing behavior at The Coffee House Due to these negative effects, it has become increasingly necessary to conduct in-depth research on the factors influencing purchasing behavior at The Coffee House By gaining a clearer understanding of these factors, we can draw important lessons about how brands can improve services, image, and meet customer demands in a highly competitive market Therefore, our group chose the topic: "Research on the factors influencing consumer behavior in purchasing decisions at The Coffee House among e- commerce students at UEF."

For The Coffee House, the research results will provide the necessary information to optimize marketing campaigns, develop products and services that align with student needs, thereby

enhancing competitiveness Additionally, the research may offer valuable insights into the

consumption habits of a young and dynamic demographic, contributing to the adjustment of business strategies in a more consumer-friendly direction By assisting one business in increasing its revenue, it can also contribute to the economic development of Vietnam,

especially as coffee chains are experiencing rapid growth

5 Research objectives

Topic: “Research on the factors influencing consumer behavior in purchasing decisions at

The Coffee House among e-commerce students at UEF.”

« Find out the Factors Influencing the Consumer Behavior in Purchasing Decisions at The Coffee House Shop Among E-Commerce Students at UEF

« Evaluate the impact of these factors Influencing the Consumer Behavior in Purchasing Decisions at The Coffee House Shop Among E-Commerce Students at UEF

e Solutions/Recommendations

Time Scope: The study will be conducted from the assignment start date, October 30, until

all necessary work is completed before November 1 Therefore, the study will take place over

approximately one month

Content Scope: In this research, our group focuses only on exploring the factors influencing consumer behavior in purchasing decisions at The Coffee House among E-commerce students

at UEF

8 Significance of Research

Although The Coffee House’s issues are broad in scale and affect various Customer groups,

focusing on e-commerce students at UEF offers many advantages Narrowing the scope of research to a specific group allows us to delve deeper into the unique factors that influence purchasing decisions According to studies on the effectiveness of small sample sizes, limiting the research to a specific group allows for thorough analysis and produces more detailed and

reliable conclusions for that group (5)

Moreover, our group chose to study e-commerce students because this is our field of study,

making it more convenient to access resources At the same time, we wish to explore how our peers perceive and think about the factors affecting consumer behavior Focusing the research

on this target group not only helps us better understand our own perspectives but also provides insight into the consumer behavior of students in this field

CHAPTER II LITERATURE REVIEW

1 Customer Puchasing Decision Theory

According to (Kotler and Armstrong, 2018), purchasing decisions are influenced by unforeseen circumstances Expected revenue, expected costs, and anticipated benefits of <

product are all factors that consumers can use to formulate their purchase intentions

Sudaryono (2014) defines purchasing decisions as the act of selecting one option from two or

more In other words, the person taking on the problem must be able to choose one option from a number of others A person is in a position to make a purchase decision when presented

with two options to buy or not to buy and then decides to buy Knowing a problem, finding

out more about a product or brand, and evaluating how well each alternative can solve the problem are the first steps in a series of processes that culminate in a purchasing decision (Tjiptono, 2014) In addition, (Kotler and Keller, 2012) state that consumers go through a five-stage process when making purchases

These stages include problem recognition, information search, evaluation of alternatives that can solve the problem, purchase decision, and post-purchase behavior, which begins long before the consumer actually makes a purchase and lasts a long time (22)

2 Servicescape Theory

According to Bitner (1992), servicescape is a crucial element in shaping customer experiences

in physical service environments, including cafes It encompasses ambient conditions such as lighting, music, and scent, along with the spatial layout and functionality, all of which contribute to customers' perceptions and interactions within the space (24)

Wakefield and Blodgett (1994) describe servicescape as the physical setting that influences customer satisfaction and behavior, such as deciding to stay longer or make a repeat visit The physical environment becomes an active factor in shaping customer expectations and engagement, thus motivating them to return In a cafe setting, this means using intentional

design elements—comfortable seating, pleasing decor, and well-planned layouts—to create a

welcoming space that promotes customer loyalty (25)

Bitner's model suggests that the servicescape can evoke emotional responses that impact satisfaction and loyalty This aligns with Pine and Gilmore's (1998) view that sensory appeals,

such as lighting and scent, play an essential role in making the environment memorable

6

According to Han and Ryu (2009), a well-designed servicescape can increase perceived value and customer satisfaction, encouraging a sense of connection and likelihood of return The

components of servicescape thus shape the in-store experience, influencing customer behavior from their initial impression through to post-visit reflections

3 The first literature review

at coffee shops in Bogor City Brand image affects final purchasing decisions more than

intentions, while ambiance creates initial interest without directly impacting purchases

Service quality significantly drives both purchase intention and decision-making, highlighting

its role in enhancing customer satisfaction and loyalty (6)

Theory of Consumer Purchasing Decisions

According to Marshall & Johnston (2015), purchasing decisions are motivated by underlying consumer needs and involve a decision-making process where consumers evaluate and

choose among available options This process, as noted by Sumarwan & Tjiptono (2018),

includes factors such as price, promotion, and brand image, especially relevant in competitive coffee shop markets (Wulandari & Calista, 2022) Amellinda et al.'s (2023) study aligns with

this theory, demonstrating that factors such as brand image and service quality significantly impact purchasing decisions, with atmosphere acting primarily on purchase intentions Hypotheses Development

Based on this literature and theoretical foundation, the study proposes three hypotheses:

7

e« H1: Brand image positively impacts consumer purchasing decisions (Kotler & Keller, 2013)

« H2: Coffee shop atmosphere influences purchase intention, contributing to a positive

consumer experience but does not directly affect final purchase decisions (Purnomo, 2017)

«ồ H3: Service quality positively impacts both purchase intention and purchasing

decisions, acting as a critical determinant in consumer choice (Fandy & Gregorius,

Purchasing Decisions

H3

Figure 2 Framework of Factors on Purchasing Decisions - Literature Review 2

The second study by Libiran et al (2024) examined factors influencing customer revisit intentions and recommendations for coffee shops in Manila, highlighting product quality and

price as major contributors to customer satisfaction and repeat patronage While product

quality enhances loyalty through sensory appeal, and price aligns with perceived value, service quality had a lesser impact on satisfaction The physical environment, though not

directly affecting purchase behavior, enriches customer experiences, fostering a welcoming ambiance that encourages extended visits and engagement (7)

Theoretical Foundation in Consumer Purchase Behavior

The study of consumer purchasing behavior, particularly in coffee shop settings, draws from

Niyar's (2014) hooked model, which explains the process through which external stimuli

(triggers) drive customer engagement In this context, factors like product quality, service quality, price, and physical environment serve as potential triggers that guide purchase

8

behavior Drawing on Marshall & Johnston (2015), purchasing decisions arise from internal

needs and are influenced by external stimuli, where factors such as brand image, price, and

quality impact consumer choices (Sumarwan & Tjiptono, 2018) Libiran et al.'s (2024)

research aligns with this theory by demonstrating how purchasing behavior, influenced by

product and price quality, mediates the link between customer satisfaction and revisit intentions

Hypothesis Development

Based on this literature and theoretical background, the following hypotheses are proposed:

e H1: Product quality positively impacts consumer satisfaction and purchasing behavior (Ganea, 2012)

«ồ H2: Service quality indirectly affects purchase behavior by influencing customer

perception, though it may not have a direct impact on purchasing behavior

(Parasuraman et al., 1988)

« HS: Price quality has a significant positive impact on purchasing behavior,

encouraging repeat visits and customer recommendations (Zeithaml, 1988)

e H4: Physical environment quality, while impactful on the in-store experience, may not

directly drive purchasing behavior but contributes to a favorable consumer experience

The third study by Hiéu (2019) investigated factors influencing consumer choices in coffee

chains in Ho Chi Minh City Research on consumer preferences in coffee chain selection

commonly considers elements such as product quality, location, price, customer service, brand image, and store ambiance, which collectively influence consumer behavior (Hiéu, 2019) Hiéu's findings suggest that these factors play a significant role in consumer choices,

with price and location being particularly impactful This indicates that coffee chains should prioritize competitive pricing and strategic location choices to enhance consumer satisfaction and foster loyalty (8)

Theoretical Foundation in Consumer Choice

Consumer choice in retail, particularly within coffee chains, aligns with theories that emphasize the role of product, price, place, and service According to Marshall & Johnston

(2015), consumer decisions are influenced by underlying needs and a decision-making

process where factors like product quality, price, location, and brand image guide choices

(Sumarwan & Tjiptono, 2018) Hiéu’s (2019) research aligns with these theories,

demonstrating that competitive pricing and convenient locations directly contribute to consumer selection in coffee chains

Hypothesis Development

Based on the literature and theoretical foundations, the following hypotheses are proposed:

« H1: Product quality has a positive impact on customer satisfaction and selection of coffee chains (Agyekum et al., 2015)

» H2: Store location significantly influences consumer choice, with convenient locations

enhancing customer satisfaction (Jaravara & Chitando, 2013)

« H3: Price has a positive impact on consumer purchasing behavior, as customers prefer competitive pricing in coffee chains (Kotler & Armstrong, 2011)

« H4: Service quality positively influences customer loyalty and purchasing decisions

in coffee chains (Pugazhenthi, 2010)

e« H5:Brandimage significantly impacts consumer choice, with strong brand perception attracting more customers (Kotler, 2001)

10

6 The fourth literature review

Product Quality

Nopendra, Wijaya, and Andharini (2022) explored how product quality, store atmosphere, and promotion affect consumer purchasing decisions at Hagaa Coffee in Malang Product

quality had the most significant impact on customer choices, emphasizing the importance of

quality in customer satisfaction and loyalty The store atmosphere also played a key role in attracting customers, while promotions boosted awareness and influenced buying behavior Together, these elements highlight the need for quality offerings, a welcoming ambiance, and targeted promotions to drive purchasing decisions effectively (9)

Theoretical Foundation in Consumer Purchasing Decisions

According to Kotler & Armstrong (2001), the purchase decision is the culmination of a

decision-making process where consumers choose an action from multiple alternatives Schiffman & Kanuk (2007) describe this decision-making process as one where customers select from options based on factors like product quality, atmosphere, and promotion

Nopendra et al.’s (2022) research aligns with these theories, illustrating that product quality, store atmosphere, and promotion play critical roles in driving consumer purchasing behavior Hypothesis Development

Based on the literature and theoretical foundation, the following hypotheses are proposed:

e H1: Product quality positively influences consumer purchasing decisions by providing

a competitive edge and meeting consumer expectations (Goeth & Davis, 2005)

favorable atmosphere encouraging customer visits and purchases (Kotler, 1973)

„ H3: Promotion has a positive impact on consumer purchasing behavior by enhancing consumer awareness and driving sales (Kotler & Armstrong, 2015)

11

7 The fifth literature review

Product differentation

1

the Coffee House Shop

Figure 5 Framework of Factors on Purchasing Decisions - Literature Review 5 Aziz, |khwan, Riono, and Islami (2023) analyzed how product differentiation, brand image, and price impact purchasing decisions among Rajaswa Coffee customers in Brebes County Their study revealed that product differentiation significantly influences customer choices, with unique features and qualities enhancing consumer preference Brand image and price also showed positive effects on purchasing decisions, indicating that a strong brand identity

and competitive pricing contribute to customer retention and attraction These findings

emphasize the importance of distinct product offerings, a strong brand presence, and

affordable pricing strategies to drive effective purchasing decisions (23)

Theoretical Foundation in Consumer Purchasing Decisions

Kotler and Armstrong (2018) explain that purchasing decisions are a structured process where

consumers weigh product attributes, brand perception, and price Purchasing decisions are influenced by how well a product meets consumer expectations (Kotler, 2017) Aziz et al.'s study is consistent with these theories, indicating that product differentiation, brand image,

and price collectively drive consumer choices, with differentiation having the most significant impact on decision-making

Hypothesis Development

Based on the literature and theoretical foundation, the following hypotheses are proposed:

« H1: Product differentiation positively affects purchasing decisions by offering unique attributes that fulfill specific consumer needs (Nugraha, 2020)

« H2: Brand image enhances purchasing decisions by creating a strong, recognizable identity that appeals to customer loyalty (Kotler & Armstrong, 2017)

12

« H3: Price has a positive impact on purchasing decisions, making products accessible

to a broader audience through competitive and value-based pricing (Tjiptono, 2019)

Quality (Rating: 3), and Promotion (Rating: 3)—stand out as key variables for the theoretical

framework to understand consumer preferences

13

CHAPTER Ill THEORETICAL FRAMEWORK

1 Proposed theoretical framework

Figure 6 Theoretical framework

Consumer Behavior in Purchasing Decisions at The Coffee House Shop

H1: Service Quality has a positive effect on the Consumer Behavior in Purchasing

There are four items that have been identified and needed to be evaluated:

- Product trend update

H3: Brand Image has a positive effect on the Consumer Behavior in Purchasing Decisions at The Coffee House Shop Among E-Commerce Students at UEF

There are four items that have been identified and needed to be evaluated:

- Brand reputation

14

- Brand superiority

- Social impact

- Positive reviews

H4: Promotion has a positive effect on the Consumer Behavior in Purchasing Decisions

at The Coffee House Shop Among E-Commerce Students at UEF

There are four items that have been identified and needed to be evaluated:

- Direct product discount

- Partnership promotion with e-wallets

3 Foundation of the proposed theoretical framework

In constructing a theoretical framework based on the four literature reviews, we observe that

each hypothesis (H1-H4) aligns with findings across these studies, which highlight critical factors shaping consumer purchasing behavior in coffee shops Here’s how each hypothesis

reflects the insights gained from the literature:

H1: Service Quality and Its Impact on Consumer Purchasing Decisions

Both Amellinda et al (2023) and Libiran et al (2024) emphasize service quality as a vital component in influencing purchasing behavior According to Amellinda et al., service quality

has a positive impact on both purchase intention and actual purchasing decisions Key elements of service quality that influence consumer choices include:

¢ Staff Friendliness: Personal interactions significantly affect consumer perceptions of service quality, aligning with Amellinda et al (2023) and Kotler & Keller’s (2015)

emphasis on friendly service as a driver of loyalty

e Lighting System: As Purnomo (2017) and Widodasih et al (2021) suggest, ambiance elements like lighting can shape emotional responses that influence purchase

intentions

15

« Service Speed: The promptness of service meets customer expectations and affects satisfaction, as noted in Parasuraman et al.'s SERVQUAL model (1988)

suitable noise levels enhance the customer experience, as confirmed by Najib et al

(2020)

Based on these insights, “H1: Service Quality” positively impacts consumer purchasing decisions at The Coffee House Shop among e-commerce students at UEF

H2: Product Quality and Its Influence on Consumer Purchasing Decisions

Product quality is a prominent factor in consumer purchasing behavior, supported by multiple

studies Libiran et al (2024) found it critical for customer satisfaction, while Hiéu (2019) and

Nopendra et al (2022) showed that product quality influences loyalty and repeat visits

Elements defining product quality in coffee shops include:

« Product Variety: Offering diverse options enhances customer satisfaction, meeting

various preferences (Brun & Pero, 2012)

« Drink Quantity and Taste Preferences: These elements relate directly to customer expectations, aligning with product quality dimensions such as performance and

reliability (Armstrong, 2014; Yee & Sidek, 2008)

e Product Trend Update: This attribute addresses consumer demand for novelty and

aligns with Siswati’s (2021) concept of satisfying changing tastes

Thus, “H2: Product Quality” positively influences consumer purchasing decisions at The Coffee House Shop among e-commerce students at UEF

H3: Brand Image and Its Impact on Consumer Purchasing Decisions

Amellinda et al (2023) and Hiéu (2019) demonstrate that brand image plays a critical role in influencing consumer decisions Brand image shapes consumer trust, loyalty, and perception

of quality, affecting their likelinood to purchase Important attributes of brand image include:

« Brand Reputation: Refers to the aggregate perception of quality and trustworthiness

(Fombrun & Rindova, 2000; Milewicz & Herbig, 1994)

« Brand Superiority: Customers perceive value in brands they consider superior or

prestigious (Keller, 1993, 2003)

« Positive Reviews: Consumer reviews significantly impact perceptions of quality and reliability due to the bandwagon effect (Brunner et al., 2019; Doh & Hwang, 2009)

16

¢ Social Impact: This includes the brand’s influence on society and aligns with

consumers' desire for socially responsible products (Emerson, Wachowicz, & Chun, 2000; Clark et al., 2004)

Therefore, “H3: Brand Image” positively influences consumer purchasing decisions at The Coffee House Shop among e-commerce students at UEF

H4: Promotion and Its Role in Influencing Consumer Purchasing Decisions

Promotional activities significantly impact consumer purchasing behavior, as noted in studies

by Nopendra et al (2022) and Hiéu (2019) Effective promotions help in increasing awareness and influencing consumer choices Key promotional elements include:

e Direct Product Discounts: Discounts attract price-sensitive customers, as suggested

by Zeithaml (1988)

encourage purchases through convenience and perceived value

create urgency, as noted in Kotler & Armstrong’s (2015) work on the promotional mix

« Frequency of Advertisements: Frequent exposure reinforces brand recall, influencing purchase decisions over time

Thus, “H4: Promotion” positively influences consumer purchasing decisions at The Coffee House Shop among e-commerce students at UEF

This theoretical model, grounded in insights from prior research, offers a comprehensive

structure to examine the impact of service quality, product quality, brand image, and

promotion on purchasing decisions Each hypothesis is well-supported by literature, enabling

a focused analysis of consumer behavior at The Coffee House Shop

17

CHAPTER IV METHOD

1 Type of research design

Marketing effects are caused by multiple variables, and the relation- ship between cause and effect tends to be probabilistic Moreover, we can never prove causality (i.e., demonstrate it

conclusively); we can only infer a cause-and-effect relation- ship This study employs a causal

research design to understand the impact of identified factors on consumer behavior at The Coffee House In this context:

Purpose of Causal Research Design: To determine whether changes in independent

variables: service quality, product quality, brand image, promotion) cause a change in the dependent variable (consumer purchasing behavior) We do causal research in order to infer

causality by measuring the strength and direction of relationships between variables Data Collection Method: A quantitative survey-based approach is used, aiming to gather

numerical data suitable for inferential statistics Survey questions are designed to evaluate each item under the respective hypotheses (H1, H2, H3, H4)

Key Concepts in Causal Design: Independent Variables (IV) - Variables manipulated to observe their effects, also known as treatments Based on the literature review, the

independent variables are: Service Quality; Product Quality; Brand Image; Promotion

Test Units - Entities whose responses to independent variables are examined In this study, college students who have used services from The Coffee House are the test units Their responses will provide insights into how the independent variables influence consumer behavior at The Coffee House

Dependent Variables (DV) - Variables affected by the independent variables For this study,

customer satisfaction, loyalty, and willingness to repurchase at The Coffee House serve as dependent variables These measure the impact of the independent variables on the test units

3 Sampling techniques

3.1 Define the target population

In the first step, define the target population: Male or Female E-commerce students are studying at UEF university that have been using service at The Coffee House

3.2 Determine the sampling frame

In the second step, dtermine the samping frame, it consists of a list or set of directions for identifying the target population In this cases, list of directions for the target population

would be:

- College students at UEF

- Have used service at The Coffee House at least less than once a week

3.3 Select a sampling techniques

In the third step, select a sampling technique, we use non probability sampling, which allows for the intentional selection of participants who meet specific research criteria

Nonprobability sampling relies on convenience or the personal judgment of the researcher

rather than chance to select sample elements The researcher can arbitrarily or consciously

decide what elements to include in the sample

Convenience sampling is the least expensive and least time-consuming of all sampling techniques The sampling units are accessible, easy to measure, and cooperative In spite of

these advantages, this form of sampling has serious limitations Many potential sources of

selection bias are present, including respondent self-selection Convenience samples are not

representative of any definable population Hence, it is not theoretically meaningful to

generalize to any population from a convenience sample, and convenience samples are not

appropriate for marketing research projects involving population inferences In this case, e-

commerce students at UEF who have used service at The Coffee House are chosen

We use Judgmental sampling is a form of convenience sampling in which the population elements are selected based on the judgment of the researcher Judgmental sampling allows

us to intentionally target specific participants, in this case, E-commerce students at UEF with actual experience at The Coffee House This approach ensures that responses are directly relevant to the study’s goals, as it narrows the sample to individuals who meet predefined

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criteria This method is also efficient in terms of time and cost, as it focuses-data collection

on a specific, relevant group rather than a broader, less targeted pool Additionally,

judgemental sampling grants we control over sample quality by allowing for the selection of

individuals who are likely to provide valuable insights This targeted approach fosters a deeper understanding of participant behaviors and preferences, which is particularly valuable

in exploratory studies where the goals is to derive insights rather than represent a broader

population

3.4 Determine the sample size

The fourth step is detemine the sample size, the survey is structured with 4 independent factors and approximately 20 observed variables, ensuring that the collected information is

detailed and aligned with the research objectives We decided to use 150 samples, although the minimum calculation based on the formula n = 5* (20 variables) = 100 samples Selecting

a larger sample size helps eliminate invalid responses and increases the reliability of the

research results

3.5 Execute the sampling process

The fifth step is to execute the sampling process After completing the above four steps, we proceeded to send out the survey sample

4 Questionnaire development and pretesting

Questionnaire design will be presented as a series of steps These steps are (1) specify the information needed, (2) specify the type of interviewing method, (3) determine the content of individual questions, (4) design the questions to overcome the respondent’s inability and

unwillingness to answer, (5) decide on the question structure, (6) determine the question

wording, (7) arrange the questions in proper order, (8) identify the form and layout, (9) repro-

duce the questionnaire, and (10) pretest the questionnaire

4.1 Specify the information needed

In line with our research objectives and hypotheses, the information needed for this study will revolve around four main constructs: Service Quality, Product Quality, Brand Image, and

Promotion Each construct contains specific items that require measurement to assess their

impact on the target audience's purchasing behavior The survey will use friendly, easy-to-

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understand language and a clear structure suitable for college students A familiar Likert scale will support accurate measurement of students' perceptions

4.2 Type of interviewing method

The interview method using Google Forms is categorized as an Internet questionnaire It is

self-administered, so it should be simple, with clear instructions to ensure respondents understand and complete it correctly

4.3 Determine the content of individual questions

We avoid using double-barreled questions that attempt to address two issues at once Each

question will be designed to measure only one item

4.4 Design the questions to overcome the respondent’s imability and unwillingness to answer

Not all respondents are likely to be informed about the topic of interest, filter questions that measure familiarity, product use, and past experience should be asked before questions about

the topics themselves Filter questions enable the researcher to filter out respondents who are not adequately informed In this case we have 3 filter questions to help inform customer about

the topic In order to increase the willingness of respondents, we place sensitive topics such

as receiving emails and asking for personal information at the end of the questionnaires

4.5 Decide on the question structure

In self-administered questionnaires, respondent cooperation is improved if the majority of the questions are structured All questions have been designed as structured types, utilizing Likert scales and multiple-choice responses

4.6 Determine the question wording

We avoid using phrases like “usually”, “normally”, “frequently”, “often”, “regularly” or

“occasionally” to reduce ambiguity and prevent respondents from making broad

generalizations, which can lead to inconsistent answer Similarly, questions that ask respondents “how they feel” or “their perception” without specific context can also lead to

subjective generalizations

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4.7 Arrange the question in proper order

The survey is arranged in three parts: The first part includes filter questions to familiarize respondents with the topic The second part uses likert scale questions to measure respondents opinions on each variable The final part collects personal data, as these questions are more difficult, sensitive, or complex and are therefore placed toward the end of the sequence

4.8 Identify the form and layout

In our research, the questionnaire will be organized into sections aligned with the independent

variable and dependent variable: Service Quality, Product, Brand Image, Promotion, and

Purchasing Decision The layout, spacing, and placement of questions can greatly impact

responses, so we position the filter and Likert scale questions at the beginning, while personal

information questions are placed at the end

4.9 Reproduce the questionnaires

The questionnaire should be designed for easy reading and response, with a large, clear font

to enhance accessibility We will use Google Forms, incorporating The Coffee House’s brand

colors in orange along with an introductory brand image at the start to create a visually

appealing experience Important questions, particularly those measuring key items, will be

bolded for emphasis to draw attention Additionally, we will ensure that the layout is straightforward and intuitive, guiding participants through the survey seamlessly Including

progress indicators can also help participants stay engaged and informed about their completion status

4.10 Eliminate bugs by pretesting

The survey will be tested on a small sample of participants to enhance its effectiveness by

identifying and addressing potential issues In this research study, we initially asked

participants to provide their email addresses at the beginning of the survey, but this method proved ineffective, as many people were reluctant to share personal information Therefore,

we decided not to collect emails at the start and moved this section to the end of the survey

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