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IMPACT OF EIGHT DIMENSIONS ON THE BUSINESS OF SPECIALTY COFFEE SHOPS

Year 2019, Volume: 6 Issue: 1, 79 - 87, 30.03.2019
https://doi.org/10.17261/Pressacademia.2019.1023

Abstract

Purpose- The impacts of eight dimensions, including customer communication, customer relationship management, customer satisfaction,

customer loyalty, strategy management, customer trust, and service quality, on the business of specialty coffee shops were investigated,

Methodology- A questionnaire was designed to collect the data from 197 valid respondents; Structural Equation Modeling (SEM) was utilized to

analyze the data, and finally, Smart PLS was employed to validate the structural model.

Findings- Nine of the eleven hypothesized relationships were confirmed and supported, while two were not supported.

Conclusion- Results of this study can provide business owners of specialty coffee shops with valuable information and management implications.

References

  • Bull, C. M. (2003). Strategic issues in customer relationship management (CRM) implementation. Business Process Management Journal, vol. 9, no. 5, pp.592-602.
  • Cailleba, P., Casteran, H. (2009). A quantitative study on the fair trade coffee consumer. The Journal of Applied Business Research, vol. 25, no. 6, pp.31-46.
  • Chen, P. T., Hu, H. H. (2010). How determinant attributes of service quality influence customer‐perceived value: An empirical investigation of the Australian coffee outlet industry. International Journal of Contemporary Hospitality Management, vol. 22, no. 4, pp.535-551.
  • Chin, W., Newsted, P. (1999). Structural Equation Modeling Analysis with Small Samples Using Partial Least Squares. In R. H. Hoyle (Ed.), Statistical Strategies for Small Sample Research. Thousand Oaks: Sage Publications. pp.307-341.
  • Hair, J., Hult, G., Ringle, C., Sarstedt, M. (2014). A primer on partial least squares structural equation modeling (PLS-SEM). SAGE Publications.
  • Han, H., Nguyen, H. N., Song, H., Chua, B. L., Lee, S., Kim, W. (2018). Drivers of brand loyalty in the chain coffee shop industry. International Journal of Hospitality Management, vol. 72, pp.86-97.
  • Heri, H. (2017). Analysis the effect of service quality, customers value, customer satisfaction and customer trust on corporate image. Journal of Business and Management, vol. 19, no. 6, pp.38-46.
  • Hsieh, C. M., Chen, T. P., Hsieh, C. J., Tsai, B. K. (2018). Moderating effect of membership status on the quality-value-loyalty chain at museums. Social Behavior and Personality: an international journal, vol. 46, no. 1, pp.107-126.
  • Hulland, J. (1999). Use of partial least squares (PLS) in strategic management research: a review of four recent studies. Strategic Management Journal. vol. 20, no. 2, pp.195-204.
  • Kablan, S., Ftiti, Z., Guesmi, K. (2017). Commodity price cycles and financial pressures in African commodities exporters. Emerging Markets Review, vol. 30(C), pp.215-231.
  • Kang, J., Tang, L., Lee, J. Y., Bosselman, R. H. (2012). Understanding customer behavior in name-brand Korean coffee shops: The role of self-congruity and functional congruity. International Journal of Hospitality Management, vol. 31, pp.809-818.
  • Kim, S. E., Lee, S. M., Kim, K. O. (2016). Consumer acceptability of coffee as affected by situational conditions and involvement. Food Quality and Preference, vol. 52, pp.124-132.
  • King, C. (2017). Brand management – standing out from the crowd: A review and research agenda for hospitality management. International Journal of Contemporary Hospitality Management, vol. 29, no. 1, pp.115-140.
  • Kotler, P. (2000). Marketing management: analysis, planning, implementation and control (seventh ed). New Jersey: Prentice Hall.
  • Lian, S. B. Yoong, L. C. (2017). The effectiveness of strategic relationship marketing: exploring relationship quality towards customer loyalty. International Business Research, vol. 10, no. 12, pp.159-166.
  • Likert, R. (1932). A technique for the measurement of attitudes. New York: Archives of Psychology.
  • Murthy, P. S., Naidu, M. (2012). Sustainable management of coffee industry by-products and value addition-A review. Resources Conservation and Recycling, vol. 66, pp.45-58.
  • Mitussis, D., O’Malley, L., Patterson, M. (2006). Mapping the re-engagement of CRM with relationship marketing. European Journal of Marketing, vol. 40, no. 5, pp.572-589.
  • Nadhar, M., Tawe, A., Parawansa, D. (2017). The effect of work motivation and entrepreneurship orientation on business performance through entrepreneurial commitments of coffee shops in Makassar. International Review of Management and Marketing, vol. 7, no. 1, pp.470-474.
  • Ou, W. M., Shih, C. M., Chen, C. Y., Tseng, C. W. (2012). Effects of ethical sales behaviour, expertise, corporate reputation, and performance on relationship quality and loyalty. The Service Industries Journal, vol. 32, no. 5, pp.773-787.
  • Parasurman, A., Zeithaml, A., Berry, L. (1985). A conceptual model of service quality and its implications for future research. Journal of Marketing, vol. 49, no. 4, pp.41-50.
  • Payne, A., Frow. P. (2005). A strategic framework for customer relationship management. Journal of Marketing, vol. 69, pp. 167-176.
  • Ringle, C., Wende, S., Beck, J. (2015). SmartPLS 3. Boenningstedt: SmartPLS GmbH.
  • Samoggia, A., Riedel, B. (2018). Coffee consumption and purchasing behavior review: Insights for further research. Appetite, vol. 129, no. 1, pp.70-81.
  • Setiawan, H., Sayuti, A. (2017). Effects of service quality, customer trust and corporate image on customer satisfaction and loyalty: An assessment of travel agencies customer in South Sumatra Indonesia. Journal of Business and Management, vol. 19, no. 5, pp.31-40.
  • Soltani, Z., Navimipour, N. (2016). Customer relationship management mechanisms: A systematic review of the state of the art literature and recommendations for future research. Computer in Human Behavior, vol. 61, pp. 667-688.
  • Stroebaek, P. S. (2013). Let’s have a cup of coffee! Coffee and coping communities at work. Symbolic Interaction, vol. 36, no. 4, pp.381-397.
  • Tarak, P. (2014). Customer communication dimension of marketing mix- a review of gap between mutual fund investors’ expectation and experience. Scholars Journal of Economics Business and Management, vol. 1, no. 5, pp.197-202.
  • Terho, H., Eggert, A., Haas, A., Ulaga, W. (2015). How sales strategy translates into performance: The role of salesperson customer orientation and value-based selling. Industrial Marketing Management, vol.45, pp.12-21.
  • The Statistics Portal. (2018). https://www.statista.com/statistics/270091/coffee-house- chains-ranked-by-revenue/
  • Trainor, K., Andzulis, J., Rapp, A., Agnihotri, R. (2014). Social media technology usage and customer relationship performance: A capabilities-based examination of social CRM. Journal of Business Research, vol. 67, no. 6, pp. 1201-1208.
  • Triznova, M., Mat’ova, H., Dvoracek, J., Sadek, S. (2015). Customer relationship management based on employees and corporate culture. Procedia Economics and Finance, vol. 26, pp. 953-959.
  • Verhoef, P. C. (2003). Understanding the effect of customer relationship management efforts on customer retention and customer share development. Journal of Marketing, vol. 67, pp.30-45.
  • Young, L. J., Chiu, C. H. (2017). Is it feasible to use service quality, trust, and commitment management to determine customers’ loyalty?. Transylvanian Review, vol. 20, pp. 5609-5619.
  • Zapata, J., Londoño, V., Naranjo, M., Osorio, J., Lopez, C., Quintero, M. (2018). Characterization of aroma compounds present in an industrial recovery concentrate of coffee flavor. CyTA - Journal of Food, vol. 16, no. 1, pp.367-372.
Year 2019, Volume: 6 Issue: 1, 79 - 87, 30.03.2019
https://doi.org/10.17261/Pressacademia.2019.1023

Abstract

References

  • Bull, C. M. (2003). Strategic issues in customer relationship management (CRM) implementation. Business Process Management Journal, vol. 9, no. 5, pp.592-602.
  • Cailleba, P., Casteran, H. (2009). A quantitative study on the fair trade coffee consumer. The Journal of Applied Business Research, vol. 25, no. 6, pp.31-46.
  • Chen, P. T., Hu, H. H. (2010). How determinant attributes of service quality influence customer‐perceived value: An empirical investigation of the Australian coffee outlet industry. International Journal of Contemporary Hospitality Management, vol. 22, no. 4, pp.535-551.
  • Chin, W., Newsted, P. (1999). Structural Equation Modeling Analysis with Small Samples Using Partial Least Squares. In R. H. Hoyle (Ed.), Statistical Strategies for Small Sample Research. Thousand Oaks: Sage Publications. pp.307-341.
  • Hair, J., Hult, G., Ringle, C., Sarstedt, M. (2014). A primer on partial least squares structural equation modeling (PLS-SEM). SAGE Publications.
  • Han, H., Nguyen, H. N., Song, H., Chua, B. L., Lee, S., Kim, W. (2018). Drivers of brand loyalty in the chain coffee shop industry. International Journal of Hospitality Management, vol. 72, pp.86-97.
  • Heri, H. (2017). Analysis the effect of service quality, customers value, customer satisfaction and customer trust on corporate image. Journal of Business and Management, vol. 19, no. 6, pp.38-46.
  • Hsieh, C. M., Chen, T. P., Hsieh, C. J., Tsai, B. K. (2018). Moderating effect of membership status on the quality-value-loyalty chain at museums. Social Behavior and Personality: an international journal, vol. 46, no. 1, pp.107-126.
  • Hulland, J. (1999). Use of partial least squares (PLS) in strategic management research: a review of four recent studies. Strategic Management Journal. vol. 20, no. 2, pp.195-204.
  • Kablan, S., Ftiti, Z., Guesmi, K. (2017). Commodity price cycles and financial pressures in African commodities exporters. Emerging Markets Review, vol. 30(C), pp.215-231.
  • Kang, J., Tang, L., Lee, J. Y., Bosselman, R. H. (2012). Understanding customer behavior in name-brand Korean coffee shops: The role of self-congruity and functional congruity. International Journal of Hospitality Management, vol. 31, pp.809-818.
  • Kim, S. E., Lee, S. M., Kim, K. O. (2016). Consumer acceptability of coffee as affected by situational conditions and involvement. Food Quality and Preference, vol. 52, pp.124-132.
  • King, C. (2017). Brand management – standing out from the crowd: A review and research agenda for hospitality management. International Journal of Contemporary Hospitality Management, vol. 29, no. 1, pp.115-140.
  • Kotler, P. (2000). Marketing management: analysis, planning, implementation and control (seventh ed). New Jersey: Prentice Hall.
  • Lian, S. B. Yoong, L. C. (2017). The effectiveness of strategic relationship marketing: exploring relationship quality towards customer loyalty. International Business Research, vol. 10, no. 12, pp.159-166.
  • Likert, R. (1932). A technique for the measurement of attitudes. New York: Archives of Psychology.
  • Murthy, P. S., Naidu, M. (2012). Sustainable management of coffee industry by-products and value addition-A review. Resources Conservation and Recycling, vol. 66, pp.45-58.
  • Mitussis, D., O’Malley, L., Patterson, M. (2006). Mapping the re-engagement of CRM with relationship marketing. European Journal of Marketing, vol. 40, no. 5, pp.572-589.
  • Nadhar, M., Tawe, A., Parawansa, D. (2017). The effect of work motivation and entrepreneurship orientation on business performance through entrepreneurial commitments of coffee shops in Makassar. International Review of Management and Marketing, vol. 7, no. 1, pp.470-474.
  • Ou, W. M., Shih, C. M., Chen, C. Y., Tseng, C. W. (2012). Effects of ethical sales behaviour, expertise, corporate reputation, and performance on relationship quality and loyalty. The Service Industries Journal, vol. 32, no. 5, pp.773-787.
  • Parasurman, A., Zeithaml, A., Berry, L. (1985). A conceptual model of service quality and its implications for future research. Journal of Marketing, vol. 49, no. 4, pp.41-50.
  • Payne, A., Frow. P. (2005). A strategic framework for customer relationship management. Journal of Marketing, vol. 69, pp. 167-176.
  • Ringle, C., Wende, S., Beck, J. (2015). SmartPLS 3. Boenningstedt: SmartPLS GmbH.
  • Samoggia, A., Riedel, B. (2018). Coffee consumption and purchasing behavior review: Insights for further research. Appetite, vol. 129, no. 1, pp.70-81.
  • Setiawan, H., Sayuti, A. (2017). Effects of service quality, customer trust and corporate image on customer satisfaction and loyalty: An assessment of travel agencies customer in South Sumatra Indonesia. Journal of Business and Management, vol. 19, no. 5, pp.31-40.
  • Soltani, Z., Navimipour, N. (2016). Customer relationship management mechanisms: A systematic review of the state of the art literature and recommendations for future research. Computer in Human Behavior, vol. 61, pp. 667-688.
  • Stroebaek, P. S. (2013). Let’s have a cup of coffee! Coffee and coping communities at work. Symbolic Interaction, vol. 36, no. 4, pp.381-397.
  • Tarak, P. (2014). Customer communication dimension of marketing mix- a review of gap between mutual fund investors’ expectation and experience. Scholars Journal of Economics Business and Management, vol. 1, no. 5, pp.197-202.
  • Terho, H., Eggert, A., Haas, A., Ulaga, W. (2015). How sales strategy translates into performance: The role of salesperson customer orientation and value-based selling. Industrial Marketing Management, vol.45, pp.12-21.
  • The Statistics Portal. (2018). https://www.statista.com/statistics/270091/coffee-house- chains-ranked-by-revenue/
  • Trainor, K., Andzulis, J., Rapp, A., Agnihotri, R. (2014). Social media technology usage and customer relationship performance: A capabilities-based examination of social CRM. Journal of Business Research, vol. 67, no. 6, pp. 1201-1208.
  • Triznova, M., Mat’ova, H., Dvoracek, J., Sadek, S. (2015). Customer relationship management based on employees and corporate culture. Procedia Economics and Finance, vol. 26, pp. 953-959.
  • Verhoef, P. C. (2003). Understanding the effect of customer relationship management efforts on customer retention and customer share development. Journal of Marketing, vol. 67, pp.30-45.
  • Young, L. J., Chiu, C. H. (2017). Is it feasible to use service quality, trust, and commitment management to determine customers’ loyalty?. Transylvanian Review, vol. 20, pp. 5609-5619.
  • Zapata, J., Londoño, V., Naranjo, M., Osorio, J., Lopez, C., Quintero, M. (2018). Characterization of aroma compounds present in an industrial recovery concentrate of coffee flavor. CyTA - Journal of Food, vol. 16, no. 1, pp.367-372.
There are 35 citations in total.

Details

Primary Language English
Subjects Library and Information Studies, Other Fields of Education, Labor Economics, Ethics, Behaviour-Personality Assessment in Psychology, Business Administration
Journal Section Articles
Authors

Chiu-chi Wei This is me 0000-0002-9433-9114

Chin-hsin Chiu This is me 0000-0003-1842-5747

Suz-tsung Wei This is me 0000-0002-1641-158X

Chiou-shuei Wei This is me 0000-0001-5925-7490

Publication Date March 30, 2019
Published in Issue Year 2019 Volume: 6 Issue: 1

Cite

APA Wei, C.-c., Chiu, C.-h., Wei, S.-t., Wei, C.-s. (2019). IMPACT OF EIGHT DIMENSIONS ON THE BUSINESS OF SPECIALTY COFFEE SHOPS. Research Journal of Business and Management, 6(1), 79-87. https://doi.org/10.17261/Pressacademia.2019.1023
AMA Wei Cc, Chiu Ch, Wei St, Wei Cs. IMPACT OF EIGHT DIMENSIONS ON THE BUSINESS OF SPECIALTY COFFEE SHOPS. RJBM. March 2019;6(1):79-87. doi:10.17261/Pressacademia.2019.1023
Chicago Wei, Chiu-chi, Chin-hsin Chiu, Suz-tsung Wei, and Chiou-shuei Wei. “IMPACT OF EIGHT DIMENSIONS ON THE BUSINESS OF SPECIALTY COFFEE SHOPS”. Research Journal of Business and Management 6, no. 1 (March 2019): 79-87. https://doi.org/10.17261/Pressacademia.2019.1023.
EndNote Wei C-c, Chiu C-h, Wei S-t, Wei C-s (March 1, 2019) IMPACT OF EIGHT DIMENSIONS ON THE BUSINESS OF SPECIALTY COFFEE SHOPS. Research Journal of Business and Management 6 1 79–87.
IEEE C.-c. Wei, C.-h. Chiu, S.-t. Wei, and C.-s. Wei, “IMPACT OF EIGHT DIMENSIONS ON THE BUSINESS OF SPECIALTY COFFEE SHOPS”, RJBM, vol. 6, no. 1, pp. 79–87, 2019, doi: 10.17261/Pressacademia.2019.1023.
ISNAD Wei, Chiu-chi et al. “IMPACT OF EIGHT DIMENSIONS ON THE BUSINESS OF SPECIALTY COFFEE SHOPS”. Research Journal of Business and Management 6/1 (March 2019), 79-87. https://doi.org/10.17261/Pressacademia.2019.1023.
JAMA Wei C-c, Chiu C-h, Wei S-t, Wei C-s. IMPACT OF EIGHT DIMENSIONS ON THE BUSINESS OF SPECIALTY COFFEE SHOPS. RJBM. 2019;6:79–87.
MLA Wei, Chiu-chi et al. “IMPACT OF EIGHT DIMENSIONS ON THE BUSINESS OF SPECIALTY COFFEE SHOPS”. Research Journal of Business and Management, vol. 6, no. 1, 2019, pp. 79-87, doi:10.17261/Pressacademia.2019.1023.
Vancouver Wei C-c, Chiu C-h, Wei S-t, Wei C-s. IMPACT OF EIGHT DIMENSIONS ON THE BUSINESS OF SPECIALTY COFFEE SHOPS. RJBM. 2019;6(1):79-87.

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