The impact of coffee brands on the purchasing pattern of consumers - Dissertation Example

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Dissertation Contents Contents 2 Chapter 4 – Findings 4 4 Introduction  4 4.2 Qualitative Data Analysis 4 4.2 Qualitative Finding 4 4.2.2 Qualitative Finding 2  5 4.3 Quantitative Data Analysis  6 4.3.1 Quantitative Finding 1  6 4.3.2 Quantitative Finding 2  10 4.4 Conclusion  14 Chapter 5 – Discussion of Findings 14 5.1 Introduction  14 5.2 Discussion of the Key Results  15 5.2.1 Key Finding One –  15 5.2.2 Key Finding Two –  15 5.2.3 Key Finding Three – 16 5.3 Conclusion  18 CHAPTER 6 – Conclusion 18 6.1 Introduction  18 6.2 Summary of the study  18 6.3 Methodology of the Study and Data Analysis  19 6.4 Key Finding/Discussion  20 6.5 Limitations Future recommendations for research  20 6.6 Conclusion 21 References 22 Appendix 23 Questionnaire 23 Qualitative Finding 1 and Qualitative Finding 2 23 Quantitative Finding 1 and Quantitative Finding 2 23 Chapter 4 – Findings 4.1 Introduction  The coffee industry in United Kingdom is constituted by products that can be marketed on a mass plane and those that are especially dedicated to meet special needs of the people. The coffee brands are marketed by companies like Nestle and Kraft Foods along with other normal brands. Again coffee companies like Starbucks account for the speciality consumer groups in the region (Hollensen and Banerjee, 2009, p.142) . In the light of the above understanding the paper would now focus on understanding the impact of coffee brands on the purchasing pattern of consumers. 4.2 Qualitative Data Analysis 4.2.1 Qualitative Finding 1  For the first set of findings the age group that would be interview would range from 15 to 43 years that would be again subjected to two income groups ranging from 974 Pounds to 2184 Pounds and 2688 Pounds to 5217 Pounds. Research would be conducted based on open ended questions aiming to gain a broader understanding of the consumer mindset. A.1 The respondents to the first question stated that they liked the drinking of coffee as a significant beverage over the consumption of tea. They stated that a change has ushered in the British culture with the introduction of smart coffee outlets that led them to gain increased interest in the drinking of coffee in respect to tea (Berdichevsky, 2008). A.2 The interviewees stated that they prefer purchase and consumption of coffee from speciality outlets rather than purchasing such from retail joints. The respondents further stated that they prefer speciality coffee outlets for consumption and purchase as the area also helps to gain a further work exposure (The Independent, 2011). A.3 The interviewees in response to the brand affinity for coffee purchase stated that they generally tend to go over branded coffee than ordinary ones while taking a purchase decision. This is because the branded coffee reflects a sign of fair trade over which the consumers can easily rely upon for consumption purposes (Hayden, 2010, p.10). A.4 The respondents in the age group of 15 to 43 stated that they are more keen to purchase established and premium brands over the ordinary brands in that the purchase of high branded products reflects the consumption of ethical products. These people state that consumption of ethical products would be hygienic enough and thus safer to consume (The Telegraph, 2012). 4.2.2 Qualitative Finding 2  The second set of findings the age group ranging from 44 to 82 years would be considered. This age group would also be subjected to the income groups ranging from 974 to 2184 Pounds and 2688 to 5217 Pounds. This would also be conducted based on open set of questions. A.1 The second group consisting of more elderly people however responded that they liked tea more than coffee in that it reflected the culture of the bygone era. These people thus pertaining to the old culture stated that they liked consuming tea more often than coffee and thereby tea stood as a more popular beverage to them. A.2 These respondents also mentioned that they liked the consumption of coffee from speciality corners rather than from retail outlets in that they could enjoy their pastimes out there. Thus speciality coffee outlets appeared to them as a more attractive option than retail stores in procuring the best coffee product. A.3 The old people and also the visual elites of the society tended to have both a flair for lucrative coffee products like cappuccinos and also desired to consume hygienically safe commodities. Thus these sets of consumers also responded to the fact that they desired to consume branded products over ordinary products available in the market. A.4 The set of consumers interviewed for this analysis reflected high gross monthly income. Thus these consumers tended to go for premium branded coffee products over the low branded ones to satisfy their desires for flavoured coffee delights. 4.3 Quantitative Data Analysis  The quantitative data analysis for this section would depend on a set of questionnaires that would be prepared based on close ended questions and would strictly focus on the impact of brands in regards to the purchase of coffee by consumers. The findings for set 1 and 2 of quantitative analysis would be based on demographic variables relating to the parameters of age, gender and income taking a sample size of 200 respondents for each set. Further the inferences drawn from such aspects would be represented in the form of charts and graphs that would in turn help gain a more in depth understanding of the research conducted. 4.3.1 Quantitative Finding 1  The quantitative finding herein would be conducted on a group of 200 respondents who would belong to the age group 15 to 43 years and subject to a gross monthly income level of 974 to 2184 Pounds and 2688 to 5217 Pounds. A.1 The age group ranging from 15 to 43 years mainly reflect the people who feel to the passion to modernise them in regards to social and cultural changes and also those people who are professionals in their field. Thus an increasing affinity over coffee as a beverage product can be observed in regards to such consumer groups. The following pie-chart also reflects that out of 200 respondents, 120 people tend to have an affinity over brands going for coffee purchase. Again 60 respondents also state that they prefer brands while going over for the purchase of coffee. A.2 Again in resposnse to the frequency of visits by the population set to coffee bars or coffee parlours for consuming and procuring coffee it is found that around 65 percent of the total 200 resposndents commented on the increasing frequency of their visits. Around 25 percent of the resposndents also stated that they frequently visit the coffee parlours to get a taste of the branded coffee served to them. Thus this shows that consumers in this age group are highly brand concious in consuming coffee. A.3 In resposnse to the third question the resposndents belonging to the age group 15 to 43 years mentioned that they would desire to procure and consume coffee from speciality outlets like Starbucks and Costa rather than from any small retail outlet. The respondents mentioned that gaining coffee from branded stores helps them to get the best product which is hygenic enough to consume. The pie-chart below reveals that around 75 percent of the consumers prefer to procure coffee from speciality outlets while only 20 percent of the consumers belonging to the low to middle income group of 974 Pounds to 2184 Pounds reflected little preference in regards to such. A.4 The respondents belonging to the age group 15 to 43 years also reflected an increasing interest to purchase premium brands of coffee than other normal brands. The respondents thus flock to speciality coffee outlets like Starbucks or Costa to procure and get the taste of premium coffee brands than normal brands gained from retail outlets. Moreover the respondents belonging to the middle and higher income profiles also desire to consume special coffee products that are produced by speciality outlets like Starbucks. Thus around 65 percent of the total 200 resposndents reflected an interest in gaining premium brands while around 25 percent of them reflected moderate interest. 4.3.2 Quantitative Finding 2  The quantitative findings for this set would be conducted on the age group of 200 consumers belonging to 44 to 82 years and to a gross monthly income profiles ranging from 974 to 2184 Pounds and 2688 to 5217 Pounds. A.1 This set of population consists of elderly consumers of around 60 percent of the total 200 respondents who prefer to go for branded coffee products for it helps them to get hygienically safe products. However people belonging to the lower and middle income groups of around 30 percent stated that too some extent they rely over branded coffee products over general coffee while only a meagre low income population of 5 percent reflected less interest on branded products for purchase of coffee. A.2 Again it is found that consumers belonging to the older age group ranging from 44 to 82 years favor the speciality outlets like Starbucks for procuring and consuming coffee. Thus around 68 percent of the total 200 resposndents reflect a growing liking to visit the coffee bars. However on account of the elderly population being also present in the low to middle income groups around 26 percent of the total population state of frequent visits while below 5 percent of the targeted respondents reflect disinterest in visiting such coffee bars. The elderly elites consider the speciality coffee outlets as places of frequent visits for they can enjoy gossips for long hours. A.3 The second set of 200 respondents belonging to the elderly profile render higher priority to procuring coffee from speciality stores in that it helps them to gain safer and ethically manufactured products. However again some around 22.5 percent of the population belonging to the low to middle income profile set a low preference for gaining coffee products from speciality corners in that they can also avail such from retail outlets. The same can be reflected through a pie chart as follows. A.4 In resposnse to the fourth question around 55 percent of the total 200 resposndents stated that they would desire to get hold of the premium brands rather than procure the normal brands while purchasing coffee. These consumer groups belong to the higher income groups in the society. However around 30 percent of the population belonging to the middle level income group reflected a moderate interest in the premium brands while 15 percent of the 200 respondents belonging to the lower income group stated that they rarely purchase such premium coffee brands. 4.4 Conclusion  The analysis conducted through the close ended questions reflects that the respondents pertaining to the two age groups are quite aware of brands while going for purchase of coffee. However the consumer groups belonging to the lower income groups sometimes depend on normal brands in that the premium brands for coffee are too high priced. Still both the consumer groups enjoy coffee served in speciality stores like Starbucks in that it gives them a larger place and hygienic beverage options. Chapter 5 – Discussion of Findings 5.1 Introduction  The above findings reflect that the consumers of United Kingdom are tending to grow an increasing affinity for coffee products as a beverage item. The consumers were divided essentially into two groups in regards to age and income variables. It was found that the younger generation reflected an increasing affinity for taking coffee as a beverage than tea while the older generation still depended on tea as their main beverage product. Further both the younger professionals and the older groups reflected an increasing desire to consume coffee from speciality coffee parlours in that they created a niche market. Moreover it was found that premium and established brands gains a significant importance in the purchase criteria for coffee for the consumers of both age groups. The above facts can be further elucidated as follows. 5.2 Discussion of the Key Results  5.2.1 Key Finding One –  The first set of key findings indicate on the group of consumers who belong to the younger and middle aged profile ranging from 15 to 43 years and also to the lower and middle level income groups. These set of consumers reflect a growing passion to get a taste of modern beverages like coffee served at coffee parlours. Coffee to them acts as a symbol of modernity and that too when served at coffee parlours and speciality outlets indicated or reflected a niche market segment. Further these people were also quite fashion trendy and also health conscious for which they desired to depend on branded products rather than on ordinary ones. Branded products reflected a sense of hygiene and safety of consumption to the customer group for which they laid an increased stress on such products. Again the consumers pertaining to this segment also desired getting hold of premium products to set a class apart attitude. Henceforth in here also the consumers were increasingly found to take resort to premium coffee blends that would provide them with the best taste and flavour than all the other brands of coffee available in the market. 5.2.2 Key Finding Two –  This set of consumers belonged both to the elder population segment with people in the age group ranging from 44 to 82 years. These people are also classified as those belonging to the lower to middle income groups and also from the middle to higher income groups. However for being older these people reflected a tendency to depend on tea as the best beverage other than coffee. Though they frequently took tea as their beverage yet they still took coffee as an occasional beverage item. Again like the previous consumer profile pertaining to lower and middle level age groups these consumers also desired to take coffee while sitting in the parlours or in the speciality outlets. Thus they also desired to be a part of the niche consumer profile. Further these consumer groups also reflected an increasing consciousness to stay healthy. Thus they largely depended on the intake of hygienic and branded products for their consumption purposes. The consumer groups belonging to the middle and higher level income groups also reflected an increased affinity for the intake of premium consumer brands than that of other normal brands. Henceforth these people also largely took resort to the consumption of premium coffee brands than depending on other normal coffee brands. The above conditions henceforth signify that the consumers of United Kingdom are more brand centric and owing to the rise in the level of per capita income their affinity towards the premium brands have increased in a considerable fashion. 5.2.3 Key Finding Three – The third finding based on quantitative results focuses on consumer group aging from 15 to 42 years. This group of consumers are further divided along two income groups lower to middle level and middle to higher level income groups. These groups of consumers reflect an increased interest in regards to branded coffee and desire to get flavoured coffee served in speciality coffee outlets like Starbucks. Herein it is found that the consumer groups are quite health conscious in nature and thereby depend on branded and hygienic products for consumption. Further the consumer groups being professionals and those belonging to the younger generation also regard speciality outlets for coffee as Starbucks as the hub centre for procuring coffee products. They relate those outlets as their work centres. However when going for premium coffee products rather than normal brands the consumers generally make a choice in that some of them belong to low or middle level income groups. These consumer groups also reflect their health consciousness from the fact that they desire to procure coffee from speciality coffee stores rather than from ordinary retail outlets. These consumer groups feel that procuring coffee from such standardised stores signifies a fair purchase and thereby would be of better quality. Thus going for a brand in regards to coffee purchase works not only as a style statement for the different individuals belonging to this group but also helps them the coffee marketers and producers to carve out a niche market segment. 5.2.4 Key Finding Four –  The targeted respondent groups of 200 customers belong to the age group ranging from 44 to 82 years and thus belong to the matured level consumers. These people thus are both health conscious and again desire to get the best out of the available market products. The consumers belonging to this profile desire to visit to coffee speciality stores to consume coffee and at the same time spend their time on gossips. Henceforth a large percentage of such customers frequent to such coffee outlets. Again the consumers being health conscious focus on gaining only the established branded products rather than the normal ones which are readily available. However in that the matured consumers strike a bargain while going for the purchase of coffee. The consumers who belong to the higher age groups and whose income belong to the lower and middle level thus take to the purchase of normal brands rather than depending on premium coffee products. It is because with the rise in the income level of the consumers the price of the premium coffee segments have also largely raised making it hard for all consumer profiles to savour upon. 5.3 Conclusion  The above set of discussion reflects that consumers in United Kingdom owing to changing cultures have become very brand conscious in their purchase decisions to procure coffee. Further with the rise in speciality stores in several regions like Starbucks the consumers have become more dependent on such to get flavoured coffee and at the same time get free of the fear of being unhygienic in nature. However again consumers belonging to the lower income groups are found to take resort to the consumption of normal brands than premium ones for they are quite highly priced owing to a similar rise in the income level of the consumers. CHAPTER 6 – Conclusion 6.1 Introduction  This chapter focus on drawing important conclusions to the subject under research as to whether the availability of brands for coffee in United Kingdom happens to impact the purchase decisions of the consumers procuring coffee. In the course of the research it takes into consideration both secondary and primary data sources to help enhance the quality of the research conducted. Possible inferences are drawn through dividing the targeted consumer groups taken to be 200 for each random sample set based on age and income profiles as to how their purchase and consumption trends of coffee are influenced by the presence of brands. Graphical analysis is also presented to help elucidate the matter in a more effective way and thereby to help the reader get a formal understanding of the research objective and the inference sought. 6.2 Summary of the study  The study summarizes that the people in United Kingdom are quite conscious about the different brands of coffee available in the market and tends to demand the best product that would meet their tastes and hygienic needs. Further it also reflects that the consumers though being conscious of the different brands are also frugal in nature. It is because though the consumer groups raise interest for the purchasing of different healthy and renowned brands yet the mature consumer groups think twice before going for high class premium brands than normal brands. The study thus also hints that the price of the coffee brands has evidently raised owing to the rise in the level of income of the people in United Kingdom and thus calls for frugal spending on the part of low profile consumers. 6.3 Methodology of the Study and Data Analysis  The data analysis for the study consists of data sets retrieved both from secondary sources and as well as from primary sources. In regards to qualitative analysis the data obtained from secondary sources is used that helps the researcher to understand the impact of branding on the purchase decisions of the consumer in regards to coffee. Secondary sources are used for it helps the researcher to gain a thorough understanding of the consumer mindset in the light of authentic data sets obtained from books and articles. This also acts as a key support to the primary analysis that would be conducted at a later stage by the researcher to help gauge the impact of brands on the purchase decisions of the consumer. The qualitative data sets are obtained through an interview based on an open questionnaire set. The interview is conducted over a sample size of 200 respondents in ach set belonging to two different age groups 15 to 43 years and 44 to 82 years. The sample size of 200 respondents is selected on a random basis and also can be divided into two income group mower to middle level and middle to higher level income groups. Again the quantitative data sets are obtained through an interview based on close set of questionnaires where the responses of the interviewees are measured along a three to five point scale. Data sets retrieved from the primary data sources are evaluated based on a graphical analysis which includes graphs like pie charts. Both the primary and secondary research methodology help in enhancing the quality of the research and in helping to draw feasible inferences to the research question. Graphical analysis is largely incorporated to help in enhancing the understanding of the research potential. 6.4 Key Finding/Discussion  The research conducted reflects that the availability of different brands and speciality stores in United Kingdom for coffee products happen to render a significant impact on the purchase decisions of the consumer. The consumer groups taken on a random sample size of 200 respondents pertaining to two age groups 15 to 43 years and 44 to 82 years reflect that they are quite keen to visit the coffee speciality stores to consume and procure coffee. However it is found that matured consumer groups belonging to the age group 44 to 82 years tend to depend on normal brands rather than endeavouring to procure premium brands only. It is because with the rise in the level of income the price of coffee brands also has tended to rise making it hard for normal people to procure such quite frequently. Thus the consumers of United Kingdom though conscious about the different brands of coffee along with the rise of speciality stores are still frugal in their purchase decisions for the coffee brands. 6.5 Limitations Future recommendations for research  Future recommendations can be placed in regards to the research where the consumer preferences for the different coffee speciality outlets can be studied. Thus the study can be further extended to include the study of the service qualities of the different speciality coffee outlets and why the consumers tend to have a preference over one coffee speciality outlet over other. This study would thus help to understand the parameters that in turn tend to help augment the brand value of the speciality outlets in the market. In turn it would also help the researcher to understand the specifications that the consumer tends to demand from the different speciality outlets and coffee brands and thereby helps one to acknowledge the brand awareness of the consumer. 6.6 Conclusion The consumption pattern and desire to taste coffee as a potent beverage has of late developed in the region of United Kingdom owing to a rise of changing cultural and social scenarios. The rise of large number of speciality outlets for coffee in different parts of United Kingdom has in fact led to the rise in the demand for the consumption of special coffee products. However it is also found that the price of branded coffee and coffee products has risen owing to the rise in the income level of the consumers. The research in question thus aims to probe about how the emergence of different coffee brands has led to the change in the demand patterns of the consumers in United Kingdom and also how the consumers deal with the rising prices for the brands of coffee. In that the research takes into hold both secondary and primary data sets through which effective inferences are drawn that is then elucidated through use of graphs and charts. This research methodology used helps in enhancing the quality of the research through augmenting the key understandings of the research. References Berdichevsky, N. (2008). Coffee or Tea: The Cultural Geography of Consumption. [Online]. Available At: http://www.newenglishreview.org/custpage.cfm/frm/2432/sec_id/9972. [Accessed on March 3, 2012]. Hayden, D. (2010). Brand Matters: The Use Of Branding By Public And Private Regulatory Regimes. [Pdf]. Available At: http://regulation.upf.edu/dublin-10-papers/2I2.pdf. [Accessed on March 3, 2012]. Hollensen, S., and Banerjee, M. (2009). Global Marketing, 4/E. Pearson Education India. The Independent. (2011). Thirsty Work: The coffee shop as office. [Online]. Available At: http://www.independent.co.uk/life-style/gadgets-and-tech/features/thirsty-work-the-coffee-shop-as-office-2290725.html. [Accessed on March 3, 2012]. The Telegraph. (2012). Nestle consumer boycotters admit they buy the brand's coffee. [Online]. Availability At: http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/8906534/Nestle-consumer-boycotters-admit-they-buy-the-brands-coffee.html. [Accessed on March 3, 2012]. Appendix Questionnaire Qualitative Finding 1 and Qualitative Finding 2 Q.1 How and why do you prefer coffee over other beverages? Q.2 Do you purchase coffee from any retail store or from speciality outlets? Q.3 Are you brand conscious while going for purchasing of coffee? Q.4 Do you always tend to go over premium brands for coffee or can go for ordinary brands? Quantitative Finding 1 and Quantitative Finding 2 Q.1 How much do you prefer branded coffee over general ones? A.1 (a) Very Much (b) To some extent (c) Indifferent (d) Not at all Q.2 How frequently do you visit speciality outlets or coffee bars for procuring and consuming coffee? A.2 (a) Very frequently (b) Frequently (c) To some extent (d) Infrequently (e) No at all Q.3 What preference do you render in procuring coffee through speciality stores than from retail outlets? A.3 (a) High Preference (b) Little Preference (c) No Preference Q.4 What is the frequency in which you tend to purchase premium coffee brands than other normal brands? A.5 (a) Very High (b) Moderate (c) Low Frequency Read More