ANGELES UNIVERSITY FOUNDATION

College of Business and Accountancy

Thesis Proposal

The Effect of Customer Habits on Revisit Intention in

Starbucks Coffee Company in Angeles, Pampanga.

Name/s of Author/s and Adviser

* Correspondence: [email protected]; [email protected]

Submission: June 23, 2023;

Abstract: With around 300 outlets in the Philippines, Starbucks has captured the attention of

Filipinos, focusing on warm hospitality, connection, and love of coffee. The company's rapid

development has altered the Philippine coffee consumption scene, with 15 strategically located

locations in Pampanga. Customer satisfaction is a strong predictor of consumer intention to

repurchase or revisit. Revisit intention, or the willingness of customers to return or repurchase

the same product, is influenced by factors such as lifestyle, the establishment's environment,

and the quality of the food or service. This study investigates the impacts of brand awareness,

perceived service quality, perceived product quality, and the physical environment on the

intention of revisiting a Starbucks coffee shop. There are 11 branches of Starbucks within the

Angeles City Pampanga with a total of 462,982 city population, within the stated population of

the said city, we will gather 384 respondents thru Convenience Sampling Technique. The

method will be used to gather data is Descriptive statistical tool to describe the respondents'

age, sex, marital status, level of education, socio-professional category, and monthly income

with the use of frequency distribution to know the relationship of revisiting intention to its

demographics and Inferential Statistical tool in order to know the relationship of two variables

involved in the study.

Coffee Industry

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1. INTRODUCTION

A coffee shop serves many purposes for its customers. Originally, a coffee shop was

intended for coffee enthusiasts to enjoy a cup of coffee while relaxing. However, the evolution

of culture and generations modified the function of coffee shops. As a result, coffee shops have

evolved into meeting places for groups. Every consumer can use the coffee shop to determine

the numerous roles of fulfillment, enjoyment, status, and wants. (Ismoyowatiet et al., 2021).

Some coffee shops, as they are known, also provide clients with a variety of food options, such

as cupcakes, cakes, spaghetti, muffins, soup, cold drinks, sandwiches, and many more. From a

cultural standpoint, coffee shops have evolved into a gathering place and ideal area for people

to connect, talk, write, read, or pass the time, whether with or without company. (Suarez et al.

2017).

Starbucks Corporation, one of the largest coffee businesses, began in 1971 as a modest

shop in Seattle's Pike Place Market. When Starbucks established itself to sell more than just

coffee, it became an excellent corporation. Notably, through its current forms (latte,

frappuccino, mocha, and espresso), it successfully Americanized the European coffee heritage

and became a permanent part of the urban and gastronomic environment (Sakal, 2018).

Starbucks has roughly 300 outlets in the Philippines, demonstrating that the corporation has

captured the attention of Filipinos. Starbucks coffee and the Filipino people have three things

in common: a tradition of warm hospitality, a persistent craving for connection, and a love of

coffee (Starbucks Philippines, 2019). Starbucks' quick development has altered the Philippine

coffee consumption scene in practically all regions across the country. The province of

Pampanga, from where the evidence was collected, has 15 Starbucks locations strategically

situated in urban areas (Starbucks Philippines, 2020). Starbucks offers several services in

addition to coffee, such as free wifi, music, and so on. These things provide extra value to

consumers who use their products, resulting in a sense of satisfaction and joy in using them.

This trend grew rapidly with a focus on segmentation and customer satisfaction.

Customer satisfaction assesses whether a company's products or services match the

expectations of its customers (Tuncer et al., 2021). In any coffee shop, local or franchised, to

increase customer satisfaction, organizations must continually strive to improve the quality of

their goods and services. (Hassani & Taati, 2020). And according to (Carranza et al., 2018;

Mensah & Mensah, 2018; Saulina & Syah, 2018), Customers will rate their satisfaction or
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dissatisfaction with the products and services that they receive as expected. As a result, to

broaden the scope of the business, customer satisfaction is a strong predictor of consumer

intention to repurchase or revisit (Azlan & Shamsudin, 2020). In a business context, the

positive outcome of performing tasks correctly is often reflected in customers' likelihood to

return or repurchase, also known as "revisit intention." This refers to the willingness of

customers to come back to the same establishment or repurchase the same product. Numerous

factors can impact revisit intention, such as lifestyle, the environment of the establishment, and

the quality of the food or service. (Therok et., 2021).

As a result, the purpose of this study was to investigate the impacts of brand

awareness, perceived service quality, perceived product quality, and the physical environment

on the intention of revisiting the Starbucks coffee shop.

2. STUDY OBJECTIVES

2.1 General Objectives

Coffee shops have become a significant market in Angeles City in Pampanga. It brings

value not only to the people who are fond of coffee around the area but also to the tourism of

the Angeles City. It brings a positive impact on the local economy as local tourism has become

prominent in the developing province of Pampanga. The study aims to investigate the

consumer behavior habits that affect their intention to revisit Starbucks Coffee Company in

Angeles City.

2.2 Specific Objectives

1. To describe the profile of the respondents in terms of:

1.1. Age

1.2. Sex

1.3. Civil Status

1.4. Highest Educational Attainment

1.5. Employment Status

1.6. Monthly income

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 2. What is the respondent’s perception on customers habits in terms of:

2.1 Brand Awareness

2.2. Product Quality

2.3 Service Quality

2.4 Physical Environment

3. What is the customer's perception on revisit intention?

4. Is there a significant difference between the respondent’s demographic profile and

revisit intention?

5. Is there a significant relationship between brand awareness and revisit intention?

6. Is there a significant relationship between perceived product quality and revisit

intention?

7. Is there a significant relationship between perceived service quality and revisit

intention?

8. Is there a significant relationship between Physical environment and revisit

intention?

HYPOTHESIS

Ha1: There is a significant difference between the respondent’s demographic profile and revisit

intention.

Ha2: There is a significant relationship between brand awareness and revisit intention.

Ha3: There is a significant relationship between perceived product quality and revisit

intention.

H4: There is a significant relationship between perceived service quality and revisit intention.

H5: There is a significant relationship between physical environment and revisit intention.

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3. Review of Related Literature

Based on previous research, the following variables will be able to help to analyze the

causal factors and factors affecting customer satisfaction on Revisiting intention in Starbucks

has been developed for this study.

3.1. Brand Awareness

Customer revisit intention is significantly related to brand awareness (Pham, Do, and

Phung, 2016). Numerous studies on food and beverage consumption have found that revisit

intention is crucial for earnings in the food and beverage industry (Majid et al., 2016; Namin,

2017; Pham et al., 2016b). Furthermore, when a customer is familiar with a brand, they are

likely to return. [Hyun and Kim (2011); Loomis (2013)]. Brand awareness refers to the

association of a certain brand in memory, whether positive or negative consumer impacts.

Many brands exhibit this, particularly in the fast-food restaurant sector. (Nurhayati et al. 2019).

Previous research has shown that increasing brand awareness and brand imagery in the minds

of customers increases their intent to return (Pham, Do, & Phung, 2016a).

According to Romaniuk, Wight, and Faulkner (2017), brand awareness refers to a

customer's ability to identify or remember that a specific brand falls into a specific product

category. The brand gets more attention as awareness grows. (Herrero and Salmones, 2018)

According to Javad (2016), improving customer happiness can also improve brand awareness

among customers. Furthermore, according to Ramadania et al. (2020), Darmawan (2019), and

Yulianto (2021), brand awareness has a significant effect on consumer satisfaction. It is essential

to provide service aspects that meet customers' expectations while also reflecting positive

company identities. Customer satisfaction and a positive corporate image promote positive

word of mouth, and customers are more inclined to return to the business (Hussain, 2016).

3.2 Perceived Product Quality

According to Marakanon, L., & Panjakajornsak, V. (2017), Perceived quality is the

consumer's perception regarding offered services of a business that could satisfy and delight

the consumers. It is also known as Green Perceived Quality. According to Lomboan (2017), the

perceived quality of a product's or service's overall quality or superiority in comparison to

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what the customer expects can be described as perceived quality. It is impossible to determine

perceived quality objectively because it depends on the customer's viewpoint. Consumers

evaluate product quality subjectively based on their prior experiences and emotions, known as

perceived quality.

According to Chen, H., Chen, H., & Tian, X. (2022), not only does the perceived

product quality encourage consumers to buy the product, but also there is a negative effect

that influences the perceived value. According to Kotler and Keller in Herviana and Anik

(2018), "product quality" is a collection of a product or service's features and qualities that

depend on its capacity to satisfy explicit or implicit needs. Based on Akpoyomare's (2018)

research in Djumarno et al., better products tend to increase consumer loyalty. The

components of product quality used in this study, such as performance, features, reliability,

compliance, durability, serviceability, aesthetics, and perceived quality, were taken from Kotler

and Keller in Ismail et al. (2016).

According to Pangaribuan, Sofia, and Sitinjak (2020), for service quality, the coffee shop

may want to enhance hospitality while making quick responses to meet the needs of the

customers. Service quality is perceived as good and it resulted in the intention to revisit the

coffee shop from the customer. Customers that the business is ready to assist any person

employing fast service and proper timelines. The ability to respond accurately to customers'

complaints and address the issues with dependability could attract more customers. Owners or

operators should also maintain cleanliness and a comfortable ambiance to encourage

customers (Lim et al., 2022). The way Services are provided is essential because it makes sure

that clients consistently receive the same quality of service. It provides a competitive

advantage over rivals and is crucial for increasing the number of service consumers

(Rittboonchai & Thongrawd, 2018). It could be decided by how well workers are meeting client

demands, how well their skills are developed, how well the equipment is managed, how well

the quality of what is sold is recognized, the price, and the emotional status of the customer

(Cho et al., 2015).

3.3 Perceived Service Quality

According to Pangaribuan et al. (2019), factors affecting service quality had a positive

impact on customer satisfaction, with satisfied customers more likely to anticipate to revisit

and recommend the business to others. The likelihood of a consumer revisiting is greatly

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 influenced by how well-rounded they feel the services are. One instance comes from

Kopitiam in Malaysia, where the customer expressed a desire to return after having a positive

experience there. Additionally, service quality perception is significantly influenced by

cleanliness where a store with clean physical amenities produces satisfaction and encourages

customers to revisit (AbuThahir & Krishnapillai, 2018).

Customers' perceived value and perceived service quality both have a positive impact

on satisfaction, which in turn influences revisiting intention for which restaurant satisfies a

customer's psychological expectations and moral standards can be determined. The number

of loyal customers at restaurants that don't live up to the requirements will shortly fall (Ge et

al., 2021). The likelihood of returning is influenced by the perception of service quality and

pricing awareness. Theoretically, a frequent visit to a location can be consistently and

rationally explained by factors like customer value, service quality, and attractiveness (Liu &

Lee, 2017).

3.4 Physical Environment

According to Ji et al. (2023), a study which tackled Starbucks in Korea, suggests that the

areas where the food and beverages are prepared need to be tidy and visible, as customers use

this as physical evidence to assess the food's safety by seeing where the food and beverages are

made. Return visits from customers would then rise, resulting in more sales and a larger

market share. Additionally, Lee (2022) concluded that when consumer satisfaction with the

environment where services are offered thrives, so does revisit intention. The frequency with

which consumers revisit coffee shops is directly impacted by environmental aspects such as

lighting, temperature, interior décor, interior design, and facility layout.

Customers take notice of both the store's exterior and interior physical condition.

Customers' desire to return to the store will increase the more sociable the physical

environment of the store appears. Physical ambiance provides added value to the store's

reputation while offering a comfortable setting for customers who come to the store to make

purchases. Loyal customers are being provided with a positive retail environment, which will

enable coffee shops to continue doing business (Lestari, 2023). Starbucks Coffee's physical

environment has a direct and considerable impact on customers' intentions to return, thus

enhancing customer loyalty. Additionally, it has been discovered that the physical

environment, which includes the choice of a strategic position, aesthetics, interior design,

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tables and chairs, layout, sound system, cleanliness, and air conditioning has a substantial

impact on customer loyalty (Asniwaty et al., 2018).

4. Conceptual Framework

The present investigation employed the structural equation modeling (SEM) analytical

approach to examine the structural interdependence among variables that influence the

inclination to engage in revisit intention. It enables researchers to examine and analyze the

factors that affects to Customer Satisfaction in order for them to have a revisit intention to the

coffee shop. The utilization of path diagrams that involve latent variables with multiple

indicators is a common practice in analyzing the customer satisfaction that a customer basis to

do revisit in Starbucks.

5. METHODS

5.1 Study Design

The research design applied in this study is correlational, as the researchers want to

determine the connection between the customer's satisfaction and their revisit intention in all

the (Starbucks in Angeles city). Correlational research is a method that allows researchers to

establish a connection between two variables that are related to one another.

Quantitative research seeks to determine how many individuals believe, behave, or feel

in a specific way. This design is used to analyze and determine the connection between the

customer's satisfaction and their revisit intention. Furthermore, the data from respondents is

solely based on what they have experienced, and the respondents' opinions will be respected.

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The researchers will be able to identify Starbucks' concerns and impacts on the study by

assessing the relationship between customer satisfaction and intent to return.

In addition, according to Nowell, L. S., Norris, J. M., White, D. E., & Moules, N. J.

(2017), the survey questionnaire collected from the selected participants will only focus on

their personal experiences and opinions, which will be treated and taken with respect. To

minimize misunderstandings and conflicts, the researchers will guarantee that the data

acquired is trustworthy and not biased.

5.2 Research Locale

The study was carried out by management and entrepreneurship students from

Angeles University Foundation in Angeles City, Philippines, which is located in central Luzon.

Furthermore, the private institution is regarded as one of the best universities in the

Philippines. The researchers’ participants are the customers of Starbucks around Angeles City,

Pampanga

This study will be conducted for customer who goes to Starbucks branches in Angeles

City. There are a total of 11 branches in Angeles City. This will determine the connection

between the customer's satisfaction and their revisit intention at Starbucks. The chosen

respondents will answer survey questionnaires online that will be done by the researchers and

as of today Angeles City's 2022 population is now estimated at 462,982.

5.3. Sample Size and Sampling

To wrap up the survey, a total sample size of 200 respondents was chosen. To avoid a

distorted result, the respondents are drawn from various institutions. In addition, the smaller

sample size of 200 can help reduce costs and shorten the time required for data collection. 200

questionnaires were disseminated, but only 197 have been returned; 191 are eligible, while the

remaining 6 have been deemed ineligible due to incompletion.

5.4. Inclusion and Exclusion Criteria

Revisit intention is a crucial aspect of customer loyalty, which is a fundamental goal of

many businesses. In the case of Starbucks, the company depends on repeat customer visits to

maintain profitability, which makes it essential to understand the factors that influence

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customers’ revisit intention. In this regard, inclusion and exclusion criteria are important

aspects to examine when analyzing revisit intention in Starbucks.

5.4.1 Inclusion Criteria

The inclusion criteria in Starbucks would include the demographics of the customers

who visit the store most frequently. These could include age, gender, income, and ethnicity.

Starbucks could use this information to uncover which particular demographic groups are

most likely to revisit their stores. The company could then target these groups with marketing

strategies to encourage them to revisit the store, thereby increasing their chances of customer

loyalty.

5.4.2 Exclusion Criteria

Exclusion criteria for revisit intention could include customers who only visited

Starbucks once or who had a negative experience during their previous visit. These customers

would not be included in Starbucks' revisit intention strategy as they may not be willing to

return to the store again in the future. Additionally, customers who only visit during

promotional periods or events may not be loyal, and thus may not be included in Starbucks'

revisit intention strategy. Therefore, it is important to understand the characteristics of

customers who are most likely to return to the store and to adjust the marketing strategy

accordingly.

5.5. Research Instruments

The researchers conducted a semi-structured interview with the customers of

Starbucks and will then transcribe it. The researchers gathered information through a recorded

interview, may it be an audio or a video recording. Another data collection method is the

observation checklist wherein the proponents would be the ones to make their checklist based

on what developments should Starbucks be considering. Five factors will be scrutinized to

determine the revisit intention of the customers.

The survey questionnaire was adapted from the study of Lee, H.-J. (2022), and the

researchers altered the instrument to develop a well-designed and useful tool for the present

study. Further, the researcher uses the survey questionnaire as the primary instrument to

collect the data required for the study based on the literature review and other relevant studies

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available. The researchers will personally construct the survey questionnaire, which will be the

primary tool for collecting the data and information.

Strongly Agree 6

Agree 5

Agree to a certain extent 4

Disagree to a certain extent 3

Disagree 2

Strongly Disagree 1

Table 1: Six-point Likert Scale

6.4. STATISTICAL ANALYSIS OF DATA

The gathered data will undergo statistical analysis to establish analysis and

interpretation. Statistical treatments that the researchers will make use of:

6.4.1 Descriptive Statistics

To understand the effect of customer satisfaction on revisit intention in Starbucks

Coffee Company in Angeles, Pampanga, descriptive data will be utilized to describe the

respondents' revisit intention in Starbucks. To describe the respondents' age, sex, marital

status, level of education, socio-professional category, and monthly income, the researchers

will use frequency distribution. Additionally, this will be applied to the dependent variable—

consumers' satisfaction—and the independent variable, customers revisit intention.

Additionally, to explain the effect of customer satisfaction on revisit intention, the researchers

will also use the mean, a measure of central tendency.

6.4.2. Inferential Statistics

Inferential statistics will also be utilized in determining the relationship between the

independent and dependent variables namely the Customer Satisfaction and consumers’

revisit intention.

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6.5. Ethical Considerations

State the issuing agency for the ethics clearance or exemption from ethics review.

6.5.1. Informed Consent Process, Duration of Participation, and Withdrawal

Criteria

Participants must read an informed consent document before participating in the

survey. They can indicate their willingness by clicking the "AGREE" button on Google Forms.

The survey is self-administered and lasts 10-15 minutes. Participants can withdraw at any time

without repercussions or further inquiry. Personal information collection is not solicited, and

participants are not subject to financial costs. No appreciation token is provided, but

participants will receive a copy of the research results.

6.5.2. Risks and Inconveniences

The study poses no significant hazards to participants, given that their identity will be

confidential during the interview session. The study will exclusively utilize relevant data and

refrain from collecting any additional information. Typically, the completion of the interview

and survey questions requires approximately 10 - 15 minutes of one's time. The designated

individual will be accessible to assist in the questionnaires' and interview fulfillment.

6.5.3. Benefits of the Study

The research does not provide any immediate or concrete benefits to individuals who

opt to participate. The results of the study have the potential to provide significant insights and

benefits that are essential for improving the organization's management of accounts receivable.

Through participation in this survey, individuals have the chance to make a valuable

contribution towards the enhancement of programs designed to improve the company's

receivable management and financial performance by providing honest and authentic

feedback. The data obtained from the study can be utilized to inform the development of

policies that are essential and relevant to the enhancement of the company's management of

receivables. This research undertaking will not incur any financial expenses as the interview

will not necessitate any remuneration.

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 6.5.4. Privacy, Confidentiality, and Data Management

The researchers will guarantee the confidentiality of all data gathered about the study

and restrict its use solely to research purposes. The confidentiality of the data will be upheld

and its usage will be restricted solely to research purposes. The solicitation of personal

information will not be required. Upon the termination of the investigation, the investigators

will preserve the initial survey documents and suitably discard them after a year. No

compensation will be offered as a token of appreciation for your participation. Nevertheless,

you will receive a copy of the research findings.

6.5.5. Conflict of Interest

The researchers assert that there are no potential conflicts of interest about the research

and/or dissemination of findings presented in this study.

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