Assignment 2: Group 5
Assignment 2: Group 5
Assignment 2: Group 5
Group 5
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ASSIGNMENT 02 FRONT SHEET
Qualification BTEC Level 5 HND Diploma in Business
Student declaration
I certify that the assignment submission is entirely my own work and I fully understand
the consequences of plagiarism.
I understand that making a false declaration is a form of malpractice.
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Grading grid
P1 P2 P3 M1 M2 D1
Assessor name:
Table of Contents
1. Introduction..............................................................................................................................6
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2. Literature Review.....................................................................................................................6
3. Methodology and Data.............................................................................................................6
4. Analysis of research.................................................................................................................6
4.1. Objective 01:.........................................................................................................................6
4.2. Objectives 02........................................................................................................................8
5. Conclusion and Recommendation..........................................................................................10
References..............................................................................................................................11
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1. Introduction
Food and Beverage is an industry that being more popular choice for almost people who want to
start-up. However, almost of them had fail, and the reason why they failed is they never focus on
customer satisfaction. In fact, there are a lot of factors affect to customers decision, and
satisfaction is the top tier factors, the higher level of satisfaction, the more loyalty customers. In
this assignment, the factors will be listed to analyze the effect level to customer satisfaction.
2. Literature Review
After the assignment 1, there are many factors affect to customers satisfaction. In the assignment
2, the food and service quality, physical environment of food outlets, price are the factors affect
to will be analyzed to show its affect to customers decision at Starbucks. According to Ivyanno
U.Canny [CITATION Ivy13 \n \l 1033 ], food quality described as interpret which the
restaurant must reliably and dependably represent the food with apposite cleanness, temperature,
discrimination, and performance. Meanwhile, service quality is a result from comparison
between customer expectations and perceptions performance of services [ CITATION Ivy13 \l
1033 ]. Marija Pecitié [ CITATION Mar14 \l 1033 ] stated that physical environment of the
restaurant has a great influence on brand image and it has to be following trend in the market to
have an impact on customers. Monroe defined price as an important objectives clue about the
level of service that affects to customers purchasing behavior[CITATION Mon85 \l 1033 ].
There will be different views of every customer, however, the factors are same. This study will
contribute how these factors affect to customers satisfaction. Specifically, the objectives of the
study are 1) to test the impact of food and service, physical environment and price to customer
satisfaction through one sample data test and 2) comparing influencers of physical environment,
and service quality through pair sample data test.
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4. Analysis of research
Test Value = 0
Lower Upper
As the above Table shows the factors have influence on the customers satisfaction that approve
the hypothesis. They all have influence on customers experience during using Starbucks product
and services. In fact, Starbucks satisfied almost customers when all of factors is higher than the
mean. Comparing with all the experience Starbucks is bringing to customers, the high price is
acceptable, in addition, Starbucks prefers their customers to use member card that they will get a
lot of promotions. Meanwhile, customers are being attracted to service than food quality.
Moreover, these factors have a relationship that can affect each other.
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Tables. Correlations 1
As the Correlation 1 table shows that food quality and service quality have a high connection
with each other (r=.726’’). Because consumers prefer services quality than food quality, this high
connection will cause to the different experience of customers when the services can be same as
expected. Meanwhile, the price is not affected to customers satisfaction a lot and have a weak
correlation with the rest of factors (r=.340’’;.348’’ and .435’’). That means the quality and
environment can make customers willing pay for it.
Total 105.354 98
With the zero significant (p=.000), price and physical environment have impact to the service
quality. Because of that, almost business prefer to increase the service quality and lower the food
quality, but success businesses can control all of them.
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4.2. Objectives 02
To achieve the objectives 2, the physical environment and services quality will be analyzing
through 2 pair sample data tests.
Lower Upper
P
a
Ideal place for working
i .210 .998 .100 .012 .408 2.104 99 .038
Ideal place for dating
r
1
N Correlation Sig.
The first pair sample test shows the physical environment of Starbucks in two case ideal place
for working or dating. Because of young person do surveys, they prefer Starbucks as an ideal
place for dating. However, the Table 4 show the relationship of working and dating (r=.599) with
a strong correlation. In fact, Starbucks is making an ideal place for everyone, customers will be
satisfied not only through product and service, but also the warm place where can be their third
place.
Lower Upper
Professionalism in service
and attitude of staff - The .140 .697 .070 .002 .278 2.010 99 .047
agility in service
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Table 6. Paired Samples Correlations 2
N Correlation Sig.
The strong relationship of service quality and agility in service (r=.757) with the strong
correlation. Different from restaurant industry, coffee industry required a quality product in an
instant time, Starbucks obligatory their employees to do follow the routine to ensure the quality.
However, the high deviation also shows the worst of Starbucks. Starbucks wants their customers
to come to get their goods through call name, some people choose to stay at the hand-off plane,
and that make them unsatisfied.
According to Dr. Deepali Bhatnagar [CITATION DrD17 \n \l 1033 ], service quality and
customers satisfaction are critical factors for success. Comparing with the result, the attention of
customers about food quality is reducing, meanwhile, the attraction from service quality is
increasing rapidly. The network social trend makes the physical environment become more
important. And customers will expect more from business to be satisfied, Starbucks is doing well
in that side, however the price also increasing to ensure the revenue.
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References
Canny, I. U., 2013. The Role of Food Quality, Service Quality, and Physical Environment on
Customer Satisfaction and Future Behavioral Intentions in Casual Dining Restaurant. [Online]
Available at:
https://www.researchgate.net/publication/303498040_The_Role_of_Food_Quality_Service_Qual
ity_and_Physical_Environment_on_Customer_Satisfaction_and_Future_Behavioral_Intentions_i
n_Casual_Dining_Restaurant
[Accessed 06 05 2019].
Dr. Deepali Bhatnagar, 2017. Factors Affecting Customer Satisfaction of Food and Beverage.
[Online]
Available at: http://www.iosrjournals.org/iosr-jhss/papers/Vol.%2022%20Issue9/Version-
6/I2209066571.pdf?fbclid=IwAR1BXwWw30n7k_SChTJ40LPcHI-
fGBnsdUYHaCs58dSa7Vwdj9bZKGugmac
[Accessed 07 05 2019].
Monroe, K., 1979. Pricing: making profitable decisions.. New York: s.n.
Pecotic, M., 2014. Interior Design in Restaurants as a Factor Influencing Customer. 4 ed.
s.l.:RIThink.
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