Customer experience of stabucks coffeescientific research research about customer experience of starbucks coffee in viet nam

The study was conducted to analyze the factors that cause influence users when using and experiencing coffee at Starbucks in the Vietnam market, find out why Starbucks still cannot satis

HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES

INFORMATION TECHNOLOGY FACULTY OF BUSINESS ADMINISTRATION

SCIENTIFIC RESEARCH RESEARCH ABOUT CUSTOMER EXPERIENCE OF STARBUCKS COFFEE IN VIET NAM

Instructor: Ms Pham Thi Mong Lanh

Student’s name

Lai Thi Thi ID Student: 2 1DH485208

Ho Chi Minh City, August 2023

Abstract Starbucks entered the Vietnamese market in 2013, the first facility was located at the New World Hotel, which attracts many tourists and is right in the heart of Ho Chi Minh City Starbucs intends to bring romantic experiences, sophistication, and a sense of community into the atmosphere of its stores, products, and customer services Up to now, Starbucks has more than 63 stores in Vietnam, much lower than Southeast Asian countries such as China, Malaysia, The study was conducted to analyze the factors that cause influence users when using and experiencing coffee at Starbucks in the Vietnam market, find out why Starbucks still cannot satisfy Vietnamese people, research methods based on data collection methods raw and quantitative analysis.

Acknowledgment First of all, we would like to thank our instructor Pham Thi Mong Lanh for guiding us that we could complete the report completely and successfully Without her support and dedicated involvement in every step of the process, this paper could have never been accomplished I am extremely grateful to you for supporting and understanding me during the past time Thank you Passenger Cat Cafe for creating a quiet and relaxing environment for us to do well in our exams, and the cute cats for motivating us.

Table of Contents

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V Conclusion 23 hoan na 23 bia 9i 0n 24 5.2.1 Cooperating with KOLs on social networking sites to increase the rate of interaction w1th potentiaÏ €uSfOI€Ys - 2 0 2212220122211 121 1115111155111 1 xe 24

5.2.2 Changing price policies

5.2.3 DIversified menus suitable for the Vietnamese market 5.3 Limitation and future research

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I Introduction

1.1 Overview of research

According to the International Coffee Organization (ICO), Vietnam is one of the second largest coffee exporters in the world, after Brazil Vietnam's coffee consumption market is very developed and is assessed to be fiercely competitive According to Euromonitor International, the market for coffee and tea shops in Vietnam is worth an estimated $1 billion According to CNBC (2020), only 15.3% of the coffee shop market share in Vietnam is held by 5 major coffee chains including Highlands Coffee, The Coffee House, Phuc Long, Trung Nguyen Legend, and Starbucks, Starbucks market share accounts for approx 2.9% The Vietnamese market is a fertile ground for foreign food companies, because the rate of hiring costs is cheaper than in European countries, in addition, the proportion of the F&B industry contributes 15% to the total GDP nation That shows that the demand for food and drink in the market accounts for 35% of the total personal income of each individual In recent years, young customers are also changing in the purchasing perception process, they pay more attention to famous brands and foreign brands And the constant changes in consumer expectations for food and drink consumption are also influenced by Western style This situation is a shift in food and beverage consumption that directly leads to increased awareness of foreign brands The Vietnamese market constantly appears with famous brands in the field of food and beverages, especially in the coffee segment, along with Vietnamese brands such as Highland Coffee, Phuc Long, etc Globally popular brands such as Starbucks However, Starbucks entered the Vietnamese market in 2013, but there are only 63 stores on the entire S-shaped strip of land, much lower than the markets of China, Thailand, Malaysia, etc Therefore, what makes people in Vietnam afraid to try global drinks? To answer this question, the research will focus on the user experience when using Starbucks in the Vietnam market

1.2 Research objective

The objective of this research is to focus on three main points, which are to analyze the factors affecting the customer experience when using Starbucks products in the

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Vietnamese market In addition, the study points out the points that make Starbucks unpopular and thrive in Vietnam Finally, suggest some measures to improve the above situation

1.3 Reasons for choosing topic

The topic of the F&B market, especially coffee, is one of the hot topics in recent years, due to the appearance of the coffee shop giant, Starbucks, which entered the Vietnamese market in 2013 but only There are a few dozen stores in the entire S territory, which shows that Starbucks is falling in the famous land of coffee export ranked second in the world We study the experiences of Vietnamese customers when they enjoy drinks at Starbucks

1.4 The scope of research

Starbucks Coffee in the VietNam market

Starbucks was founded in 1971 in the United States, the predecessor was a small coffee shop with high-class grinding equipment After more than 50 years of being run and led

by Howard Schultz specializing in exploiting and focusing on serving Italian coffee to the

US market Starbucks has reached out to all continents and brought modern coffee features to non-coffee-loving regions such as Japan, Hong Kong, etc [ CITATION

Pe¿2L \ 1033 ]

1.5 Research Structure

The study is divided into 5 parts to understand in general and in-depth the factors that directly affect the customer experience when using Starbucks Coffee in the Vietnam market, analyzed from survey data from articles, research articles from accurate and highly reliable sources

Chapter l Introduction: a brief introduction to the

topic

Chapter 2:

Review: Detailed study of factors

affecting the topic of customer experience

and explain some terms (CX),

Chapter 3 Methodology: Using quantitative

methods to identify and study the

customer experience of Starbucks in the

Chapter 4 Data Analysis: Collecting raw đata from the second data collection method and continuing to analyze the issues deeply to answer the question of whether the service experience at Starbucks is enough to satisfy customers’ requirements Vietnamese

Chapter 5: Conclusion

Provide future solutions and

recommendatfions for Starbucks im the

Vietnam market

II Literature Review

2.1 General information about customer experience

We can see that the keyword “customer experience” on Google is searched for more than

90 million results, it can be seen that society is increasingly civilized, and people have higher demands, leading to businesses that always adapt and meet customer requirements more diverse and more effective The customer experience occurs when a customer has any sensation or knowledge acquisition resulting from some level of interaction with different elements of a context created by the service provider (Gupta & Vajic, 2000) Customer experience plays an essential role in the process of brand building and is a factor that affirms the influence of a company Customer experiences provide sensory, emotional, cognitive, behavioral, and relational values that replace functional values They expect brands to meaningfully connect with them in every interaction and enhance their experience along the way Positive experiences strengthen the relationship between businesses and customers, improve their trust, maintain their buying habits, and turn them into brand advocates In the process of customers experiencing services or products of the business, there will be many stops, also known as touchpoints, at this point, customers will have to interact and feel at each moment of that experience In each stage of reaching customers, businesses will have to implement strategies to make an impression and make customers pay attention to the product try to believe, create many incentives for customers, thereby affirming the position deep in the customer's subconscious Research

by Kankaine et al, (2012), describes the customer journey as the service process through different touchpoints through the service process Touchpoints are all the points of contact between the business and also the different ways of contacting the customer with the business that creates customers’ perception of the business based on the actual experiences they have used use the product or service

2.2 The criterion affecting customer experience

Customers are an important element of a business and that is the business must make customers happy and loyal, to make customers happy and trust the business, the business must pay attention to the customer experience customer experience and will find out the criteria that influence the customer experience To increase the customer experience we

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must create a clear customer experience strategy Customer experience satisfaction can seem like an elusive term ASQ (American Society for Quality) defines customer satisfaction as a measurement of how satisfied customers are when experiencing and using the services and products of that business

2.2.1 Quality product innovation

Product quality novation is always imperative for businesses to be more suitable and developed in the eyes of customers Product innovation keeps companies relevant to the markets they want to reach Product quality innovation here is the new ideas, new designs, new services, new experienceand s brought to customers

2.2.2 The price of the product

The product price factor is also one of the factors affecting consumer psychology to decide whether to buy a product or not Consumers always want to choose products that are affordable and come with high quality For each product, depending on different customer segments, there will be criteria to attract customers to the product

2.2.3 The Satisfaction of Customers

Customer satisfaction is the level of a person's sensory state resulting from comparing the results obtained from consuming a product, or service with their expectations (Kotler & Keller, 2009) According to Baemin Academy, customer satisfaction is one of the important factors affecting customer experience and is the first step to building a reputation and sustainable value in the market and the hearts of customers In the current digital era, customer satisfaction will bring many benefits to businesses through the experience, when a lower level of satisfaction will lead to negative reviews, creating a bad reputation for the company, and affecting the quality of the entire service of the company’s reputation On the contrary, when customers have a good experience with a product or service, retaining customers is no longer a difficult problem, the rapid spread

of word-of-mouth advertising campaigns will create curiosity in new customers to use products and services

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2.2.5 The service customer department of branding

Much of the customer experience is directly impacted by the interactions between the service department, specifically the customer service staff The human factor always plays a big role in all industries, especially the service and food industries, so customer care and providing a great experience for customers are always highly valued Consumers always have alternatives and are getting more and more standards for customer service They always want and have high expectations for products that can meet their needs, based on past experiences including marketing campaigns from that company (Barbara

&Vincent,1990) The staff is always the direct force to contact and capture customer psychology, a gesture, employees’ attitude towards customers is always trained in the basic and standard way, helping customers get comfortable and feel satisfied with the company's products and services Since then, the direct customer care department has always been a significant part of attracting and retaining customers

Consumers are becoming more aware of the alternatives on offer, and rising standards of service, expectations are desires or wants of consumers — what they feel a service product should offer which are formed based on previous experience with a company and its marketing mix inputs which include physical evidence, process, and people

2.2.4 Applying advanced technology to the Product

Advanced technologies are a fusion of digital and key enabling technologies and the integration of physical and digital systems They give rise to innovative business models and new processes, and the creation of smart products and services The application of modern technological equipment to the customer service process, especially the advanced speed of the product, creates convenience for customers when using the product In the current digital era, customers’ standards for products go hand in hand with increasing product quality, from which businesses must know how to make the most of the benefits

of technology such as Chatbots, Al, etc in too client service servers When businesses apply advanced equipment to products, this will help increase revenue, attract more potential customers, control the customer care system on the website,

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2.3 The Role of customer experience in Business

Bezos once said: “If you make an unhappy customer in real life, they will talk about it with 6 friends If you make customers unhappy on the Internet, they will complain to 6,000 other people.”

Customer experience is an important bridge of the relationship between customers and businesses and today consumer expectations for quality and service are increasing Business executives have realized that customer satisfaction is an important indicator of success

Customers do not contribute much to the business, not only pay and use services and products Customers are the ones who directly evaluate and contribute to the development and progress of the business When customers make requests for instant, efficient, omnichannel, proactive, and personalized services That business's customer service has become an important part of the customer experience

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Ill Methodology

To study the effects and analyze the customer experience in many aspects when using Starbucks Coffee in the Vietnamese market Explain why Starbucks 1s still not preferred and popularity used by Vietnamese people although this is a world-famous brand 3.1 Approach methodology

The paper approaches the descriptive research method used to develop a theory based on the method of taking data from official sources and documents Descriptive research design is a type of research methodology that aims to describe or document the characteristics, behaviors, attitudes, opinions, or perceptions of a group or population being studied

Descriptive research design does not attempt to establish cause-and-effect relationships between variables or make predictions about future outcomes Instead, it focuses on providing a detailed and accurate representation of the data collected, which can be useful for generating hypotheses, exploring trends, and identifying patterns in the data 3.2 Research design

According to Kerlinger, "Research design is the plan, structure, and strategy of Investigation conceived to obtain answers to research questions and to control variance” Research design is the method that a researcher selects to organize their research project

or study Research designs can provide instructions for collecting, analyzing, and measuring data effectively

3.2.1 Descriptive Research

Descriptive research is research that is intended to collect information about the status of

an existing symptom, namely the symptom at the time the research was conducted (Siedlecki, 2020) Descriptive design is used to compare different research object groups, and demographic issues, and conduct questionnaire surveys to understand Starbucks' customer needs in Vietnam In addition, this method is also used to measure data using statistical data Descriptive research designs can measure and track trends in time data, and review them to see any changing trends The use of descriptive research design is to

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