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Table of Contents

1. ExecutiveSummary…………………………………………………………...2

2. Background to the problem………………………..………………………….3

3. The objectives of the study………………………...………………………….4

 4. Methodology…..……………………………………………………………………5

5. Data Analysis and Findings…………………………………………………13

 5.1 Demographic……………………………………………………………...13

 5.2 Survey Results…………………………………………………………….14

 5.3 The other finding…………………………………………………………33

6. Recommendations…………………………………………………………..34

7. Limitation of Studies………………………………………………………..37

8. Conclusions…………………………………………………………………38

Bibliography…………………………………………………………………...40

Appendix 1 (Student Population)

Appendix 2 (In-depth interview)

Appendix 3 (Matrix)

Appendix4 (Questionnaire)

 

 

 

 

 

 

 

 

 

 

 

 

 

1.  An Executive Summary

The number of customers and their degree of satisfaction are extremely important and it could be the marketing problem or opportunity to the cafeteria. Hence, the willingness of re-consumption will be crucial for management.  The objective of the study was to determine which factors of customer satisfaction of the cafeteria, such as product (including taste and variety of products), price, and service attitude to the customers are critical in influencing customer satisfaction. In addition, discusses the relationship between the demographic characteristics and the satisfaction of customers.  The current customers at the café NESCA was used in this case study. These customers consisted of the staffs and students of university house.

 

Exploratory research was used at the first step of the study and it included collecting secondary data and opinion of some current customers from an in-depth interview.  Next, it was descriptive research which used descriptive analysis, one sample t-test, independent t-test, and ANOVA test with 100 valid questionnaires collected by judgmental random sampling and conducted according to the stages of gathering, data cleaning, coding and analysis. The questionnaire (see Appendix 4) was designed to demonstrate the hypothesis based on literatures such as customer satisfaction, customer perception of products and price, and service quality from an objective perspective (SERVQUAL) (see Appendix 3).

 

The finding of the study showed that there is a significant difference between Australian and overseas customers in their opinion towards product, price and service of café NESCA according to independent t-test. Additionally, there is a significant difference between customers in different age groups with reference to the ANOVA test.  Generally speaking, the customers showed a high degree of satisfaction toward the service provided by café NESCA, satisfaction of price second, and they were most unsatisfied with the taste and variety of products offered by café NESCA.

 

2. Background to the Problem

The Marketing Problem / Opportunity:

Café NESCA is an outlet of the University of Newcastle Union in University House. The main customers of Café NESCA are from students and staff of the Newcastle Graduate School of Business (NGSB). The diversity of students at NGSB, e.g. large numbers of overseas students (Appendix 1), means the customer structure of Café NESCA is complex. Therefore, Café NESCA provides some drinks produced overseas by companies such as Uni-President. Nevertheless, although Café NESCA tries to meet different customer needs, it does not have any record of customer satisfaction. In other words, Café NESCA is not sure whether customers are satisfied with the services it provides or not. From the above mentioned the marketing problem of Café NESCA is that whether Cafe’s NESCA has performed to customer expectations and if not, what needs to be improved.

 

The Marketing Research Problem:

The management decision problem is whether Café NESCA has performed to customer expectation, so the marketing research should focus on which factors influence customer satisfaction and dissatisfaction. For example, the prices are so competitive in Café NESCA, so this factor attracts customers. As a consequence, the marketing research problem is to understand which factors are critical influencing customer satisfactions in order to improve the degree of customer satisfaction.

 

3. The Objectives of the Study

The objective of this survey is to determine some factors (services, prices and food) influence to purchase at Café NESCA. These hypotheses are tested by applying a one-sample t-Test, independent-samples t-Test and one-way ANOVA to get the rejection or acceptation of the result.

 

Objectives:

O1: To determine which factors in products customers are satisfied or dissatisfied.

O2: To determine whether price strategy is accepted by customers.

Q3: To determine which factors in services customers are satisfied or dissatisfied.

 

Hypotheses: 

H1.1: Customers are dissatisfied with product quality of Café NESCA.

H1.2: There is no variety of product items offered by Café NESCA

H1.3: There is no delicious product offered by Café NESCA.

H1.4: There is no difference between customer satisfaction of products and nationality of customers.

H1.5: There is no difference between customer satisfaction of products and age groups of customers.

H2.1: Customers are dissatisfied with the price strategy of Café NESCA.

H2.2: There is no competitive price offered by Café NESCA.

H2.3: There is no difference between customer satisfaction of prices and nationality of customers.

H2.4: There is no difference between customer satisfaction of prices and age groups of customers.

H3.1: The environment and facilities offered by Café NESCA are not acceptable

H3.2: The service offered by Café NESCA is not effective.

H3.4: The attitudes offered by Café NESCA are not good

H3.4: There is no difference between customer satisfaction of services and nationality of customers.

H3.5: There is no difference between customer satisfaction of services and age groups of customers.

 

 

4. Methodology

Type of Research Design:

The research design is to determine the difference between customers’ expectation and perception of products, prices, and services for Café NESCA. Exploratory research and descriptive research are chosen as the two major types of the research to get qualitative and quantitative data. The mean targets measure the statement, and also develop and test hypotheses concerning Café NESCA.     

 

The exploratory research is expected to explore or search through a problem or situation to provide insights and understanding. The method is in-depth interview to gather information from Café NESCA customers; it provides data on motivation, attitudes and feeling concerning a topic. (Malhotra, Hall, Shaw, Oppenheim, 2002) The interview will ask from general to probing questions (see Appendix 2).  

The descriptive research is when we wish to know how many customers we have 

what products they buy and in what quantities, and what their attitudes are toward Café NESCA (Malhotra, Hall, Shaw, Oppenheim, 2002).The method is to make cross sectional designs, this measures a population of the difference between customers’ expectation and perception for café NESCA. It includes using a sample survey. Cross sectional studies have samples which are drawn in such a way as to be representative of a specific population (Malhotra, Hall, Shaw, Oppenheim, 2002).The research will use traditional panels; that is the same questions will be investigated in the survey for current customers.

 

Scaling Techniques:

Self-administrated survey - directly request interviewees to answer the questionnaire to tell their attitude about something – is the main method that the study uses. (Kolter, & Armstrong, 2004)  The customers’ background and characteristics are categorised into “Nominal Scale” question.  “Likert summated rating scale” method, one of Interval Scale, is used to measure the degree of customer satisfaction with the statements to a five-point scale ranging from Very dissatisfied to Very satisfied in the second part.  The final part of questionnaire also uses interval scale to understand expectation of consumer with the statements to a five-point scale ranging from Not at all true to Very true.

 

Organisation of the Questionnaire:

The composition of the questionnaire includes：

1. Cooperative requests： The purpose of the questionnaire and the time of finishing the questionnaire will be explained in this part.  The interviewees will be requested to spend a few minutes to finish the questionnaire.

2. Instructions： The explanations about how to answer the different parts of questionnaire will be provided on the questionnaire clearly.

1. 3.      Categorized materials： This part will collect interviewees’ characteristics, for

instance, age, gender, occupation, and nationality. 

4. In search of information： This is the main part of questionnaire.  Firstly, it will use “Likert summated rating scale” to understand the degree of customer satisfaction on different items.  Then, it will ask the customers’ expectation on different items.

 

Sampling Issue:  

1. Target population：The population of the study focus on people who work or study at University House.

1. 2.      Ensure sampling frame：The information of staffs and students. Owing to difficult   

to obtain the list of whole staffs and student, the group members just got the number of students who have enrolled in NGSB in Trimester 1, 2004.

1. 3.      Choose sampling method：As the study is focused on the opinion of people who 

have consumption experience at Café NESCA ,”Judgmental sampling” is chosen as sampling method. 

1. 4.      Decide sampling size：If the study requests 95% confidence coefficient (Z=95%), 

the relative precision will be set to 0.1 (r=0.1), and the relative standard deviation , that is variance of population, are expected to be 0.5, therefore the sampling size (n) should be around 96.  In consideration of the rate of questionnaire retrieving, the study expects to prepare 100 samples.

1. 5.      Elect sampling unit：People who have purchased products at café NESCA are

elected as sampling unit.

1. 6.      Collect sampling information：Before giving the questionnaire, investigators

should ensure that whether the sampling unit they choose is correct.

1. 7.      Evaluate sampling result：It will evaluate whether the sample got is suitable for

research need.

 

Field Work / Data Collection:

Field work planning includes：

1. Preparing Work：Preparing questionnaires, collecting investigators (our group members), discussion in advance, and management project during field work are all involved in this part.

2. Meeting：All group members should understand the whole investigative system, procedure of field work, the structure of questionnaires, the content of questionnaires, and interview drilling.
3. Interview Operation：All investigators must observe the procedure discussed before.
4. Retrieve and Scrutiny of Questionnaire：Check and correct the questionnaires immediately.
5. Inspection：Check whether the survey goes according to instructions and procedure.

Data collection：

In order to ensure the quality of data and decrease errors,

1. The questionnaire should be designed carefully. (avoid questions which are sensitive or too personal that may lead to refusal to answer)

2. Group members’ cognition on research process. (training in advance is

necessary) and recognizing the importance of interview techniques. (maintaining a cordial and courteous attitude during the interview)

3. Quality management of filed work must be enforced severely. ( one or several

supervisors should be appointed to increase the efficiency and quality of filed work)

 

Possible Data Analysis:

The steps of data analysis：(Churchill, 1999, p. 630-698)

1. Preliminary check：

This is to check and confirm collected information (data cleaning).  The check items include：

(1) Whether the answers are completed or not         

(2) Whether the writing is legible

   (3) Whether the investigators follow instructions to choose the correct sampling unit

   (4) Whether the answers are unanimous or not

   (5) Whether the meaning of answers are clear

2. Coding： The closed-end question will be pre-coded and open-end question

will not begin encode after the questionnaire being collected.  The study will encode the response according to the following steps：

(1)       Classification set up will be categorized accordingly with regard to the research problem and purpose.

(2)       Appoint the series number.

3. Tabulating： The study will arrange tabulation.  In terms of simple tabulation,

the purpose is to find the errors and outliers, understand the distribution form of variables, and calculate the mean and dispersion.  With regard to cross tabulation, the purpose is to prepare the later statistic analysis.

4.  Statistical analysis： The research will use SPSS software to deal with data. Using the following mentioned data analysis, the study will measure relations among data and then analyses latent causes and factors of these relations (variation       and trend). 

(1) Descriptive analysis：This is for understanding the form of distribution and

dispersion of mean and standard deviation from frequency distribution.

(2)   One sample t-test：It is the main test that the research uses.  The purpose of

one sample t-test is to test customers’ degree of satisfaction in different items. The Hypothesis that will doing one sample t-test are：

     H1.1: Customers are dissatisfied with product quality of Café NESCA.

H1.2: There is no variety of product items offered by Café NESCA

H1.3: There is no delicious product offered by Café NESCA.

    H2.1: Customers are dissatisfied with the price strategy of Café NESCA.

H2.2: There is no competitive price offered by Café NESCA.

    H3.1: The environment and facilities offered by Café NESCA are not acceptable

H3.2: The service offered by Café NESCA is not effective.

H3.4: The attitudes offered by Café NESCA are not good

(3)Independent-samples t-test：The research will conduct independent-samples t-test to test there is a significant difference between different background of customers.  The Hypothesis that will doing independent-samples t-test are：

    H1.4: There is no difference between customer satisfaction of products and nationality of customers.

    H2.3: There is no difference between customer satisfaction of prices and nationality of customers.

    H3.4: There is no difference between customer satisfaction of services and nationality of customers.

(4)one-way ANOVA：The research will conduct one-way ANOVA to test there is a significant difference between different age groups of customers.  The Hypothesis that will doing one-way ANOVA are：

 

    H1.5: There is no difference between customer satisfaction of products and age  

         groups of customers.

   H2.4: There is no difference between customer satisfaction of prices and age 

        groups of customers.

   H3.5: There is no difference between customer satisfaction of services and age

        groups of customers.

 

Research Implementation:

The research project of CAFÉ’ NESCA will be carried out in the following stages:

The first stage of research proposal is to determine the objective. After demonstrating the proposal, the research proposal covers to identify and define market opportunities and problems; establish research objectives and decide the methodology. Next, the sampling techniques and the questionnaire are also designed.  After preparing the report, the proposal will be presented when the dating is decided.  Once the proposal is approved, next, the group members will conduct data-collection.  After data being collected, it will be cleaned, edited, coded and entered to computers.  The next stage is using SPSS to analyse data and to determine whether the hypotheses are accepted or not.  The last step is that using the information getting from data and hypotheses infer the result and make recommendations. In addition, the group members will present and submit the final report.

 

 

 

 

 

5. Data Analysis and Findings

In this research, SPSS9.0 was used for analyzing the collected data. First, the profile of the respondents was analyzed by Frequencies. Second, the hypothesis of products, prices and services were tested by one sample t-Test. The test value of one sample t-Test is set to 3.00 and the significant statistical level of difference is 5%. Third, the relationship between customer satisfaction of products, prices and services and nationality was tested by independent-samples t-Test (for two groups). Finally, the relationship between customer satisfaction of products, prices and services and age groups was tested by one-way ANOVA (more than two groups).

 

5.1 Demographic

(Survey Questions)

Question 1: What is your nationality? ڤ  Australia  ڤOverseas

Question 2: What is your age group? 

ڤ             Under 20  ڤ 21~30  ڤ 31~40  ڤ41~50  ڤ Over 51

 

All of the respondents have consumed at Café NESCA (judgmental research). The questionnaires were surveyed current 100 customers (sample size) of Café NESCA. The results of 100 questionnaires have inputted in the SPSS. All of these 100 questionnaires were valid. Approximately 38% of the respondents were Australian and 62% were overseas (Figure 1). Approximately 2% of the respondents were under twenty years old, 59% were between twenty-one and thirty, 23% were between thirty-one and forty, 13% were between forty-one and fifty and 3% were over fifty-one years old (Figure 2).

 

Figure1

Respondents’ nationality

 

 

Figure2

Respondents’ age groups

              

 

5.2 Survey Results

RO1: To determine which factors in products customers are satisfied or dissatisfied.

H1: Customers are dissatisfied with product quality of Café NESCA. (Accepted)

Q3.1: Product quality of Café NESCA is satisfactory.

 

The responses for Q3.1 were as follow: 0 missing, 100 respondents answering 3% “not at all true”, 43% “not very true”, 30% “Mixed”, 21% “somewhat true”, 3% “very true” (Chart 1) and a mean of 2.78 (Table 1). The one sample t-test indicates: The hypothesis state has negative attitudes that the mean value fall 3. Examining the significance value, it is 0.018 below 0.05 then there is a significant difference between the hypothesis and the answer. This indicates that the t-value is -2.400 (Table 1). T-value is negative towards disagreement. Therefore, the hypothesis is accepted.

 

Chart 1

 

 

Table 1

 

 

 

 

H2: There is no variety of product items offered by café NESCA. (Accepted)

Q3.2: The product items of Café NESCA are multicultural / diversified.

 

The responses for Q3.2 were as follow: 0 missing, 100 respondents answering 14% “not at all true”, 41% “not very true”, 26% “Mixed”, 14% “somewhat true”, 5% “very true” (Chart 2) and a mean of 2.55 (Table 2). The one sample t-test indicates: The hypothesis state has negative attitudes that the mean value fall 3. Examining the significance value, it is 0.00 below 0.05 then there is a significant difference between the hypothesis and the answer. This indicates that the t-value is -4.255 (Table 2). T-value is negative towards disagreement. Therefore, the hypothesis is accepted.

Chart2

 

 

Table 2

 

 

 

 

H3: There is no delicious product offered by café NESCA. (Accepted)

Q3.3: The products of Café NESCA are delicious.

 

The responses for Q3.3 were as follow: 0 missing, 100 respondents answering 18% “not at all true”, 31% “not very true”, 30% “Mixed”, 20% “somewhat true”, 1% “very true” (Chart 3) and a mean of 2.55 (Table 3). The one sample t-test indicates: The hypothesis state has negative attitudes that the mean value fall 3. Examining the significance value, it is 0.00 below 0.05 then there is a significant difference between the hypothesis and the answer. This indicates that the t-value is -4.334 (Table 3). The t-value is negative towards disagreement. Therefore, the hypothesis is accepted.

 

 

 

 

 

Chart 3

 

Table 3

 

 

 

 

Finding: The one sample t-test indicates that Hypothesizes are all accepted. The results mean product quality, product items and delicious products are important factors for customer satisfactory.

 

 

 

H4: There is no difference between customer satisfaction of products and nationality of customers. (Rejected)

Q1: What is your nationality?

Q 3.4: Products provided by Café NESCA are satisfactory.

 

Approximately 38% of the respondents were Australian with a mean of 3.05 and 62% were overseas with a mean of 2.61 (Table 4). The independent-samples t-test indicates: That we want to analyse is there any differences between Australian and Oversea customers (nominally scaled) and their attitudes towards the satisfaction of products? Examining the significance value, it is 0.019 below 0.05 (Table 4) then there is a significant difference between the hypothesis and the answer. This indicates that the t-value is 2.383. The t-value is positive towards agreement. Therefore, the hypothesis is rejected

Table 4

 

 

Finding: The independent-samples t-test indicates that there is a significant difference between customer satisfaction of products and nationality of customers.

 

H5: There is no difference between customer satisfaction of products and age groups of customers. (Rejected)

Q2: What is your age group?

Q 3.4: Products provided by Café NESCA are satisfactory.

 

Approximately 2% of the respondents were under twenty years old with a mean of 2, 59% were between twenty-one and thirty with a mean of 2.54 and 23% were between thirty-one and forty with a mean of 3.17. In addition, 13% were between forty-one and fifty with a mean of 3.07 and 3% were over fifty-one years old with a mean of 3.67. The Sig. was .006 (<0.05) (Table 5). The one-way ANOVA indicates: That we to analyse how differences among more than two groups (nominally scaled) of different age groups and their attitudes are towards the satisfaction of products. Examining the significance value was 0.006 below 0.05 (Table 5). There is a significant difference. Therefore, the hypothesis is rejected

Table 5

 

 

 

Finding: The one-way ANOVA indicates that there is a signification difference between customer satisfaction of products and age groups of customer.

 

RO2: To determine whether price strategy is accepted by customers

H1: Customers are dissatisfied with this price strategy of Café NESCA. (Accepted)

Q 4.1: The price strategy of Café NESCA is satisfactory.

 

The responses for question 4.1 were as follow: 0 missing, 100 respondents answering 10% “not at all true”, 30% “not very true”, 38% “Mixed”, 19% “somewhat true”, 3% “very true” (Chart 4) and a mean of 2.75 (Table 6). The one sample t-test indicates: The hypothesis state has negative attitudes that the mean value fall 3. Examining the significance value, it is 0.012 below 0.05 then there is significant difference between the hypothesis and the answer. This indicates that the t-value is -2.555 (Table 6). The t-value is negative towards disagreement. Therefore, the hypothesis is accepted.

 

 

 

 

 

 

Chart 4

 

 

Table 6

 

 

 

 

H2: There is no competitive price of food offered by café NESCA. (Accepted)

Q4.2: The average prices of products at café NESCA are reasonable.

 

The responses for question 4.1 were as follow: 0 missing, 100 respondents answering 13% “not at all true”, 31% “not very true”, 31% “Mixed”, 15% “somewhat true”, 10% “very true” (Chart 5) and a mean of 2.78 (Table 7). The one sample t-test indicates: The hypothesis state has negative attitudes that the mean value fall 3. Examining the significance value, it is 0.061 below 0.05 then there is a significant difference between the hypothesis and the answer. This indicates that the t-value is -1.897 (Table 7). The t-value is negative towards disagreement. Therefore, the hypothesis is accepted.

 

Chart 5

 

Table 7

 

 

Finding: The one sample t-test indicates that both Hypothesizes are accepted. The results mean price strategy and competitive price are factors for customer satisfactory.

 

 

H3: There is no difference between customer satisfaction of prices and nationality of customers. (Rejected)

Q1: What is your nationality?

Q4.1: The price strategy of café NESCA is satisfactory.

 

Approximately 38% of the respondents were Australian with a mean of 3.21 and 62% were overseas with a mean of 2.46 (Table 8). The independent-samples t-test indicates: That we want to analyse are there any differences between Australian and Oversea customers (nominally scaled) and their attitudes towards the satisfaction of prices? Examining the significance value, it is 0.00 below 0.05 then there is a significant difference between the hypothesis and the answer. This indicates that the t-value 3.947 (Table 8). The t-value is positive towards agreement. Therefore, the hypothesis is rejected.

 

 

Table 8

 

 

 

 

Finding: The independent-samples t-test indicates that there is a significant difference between customer satisfaction of prices and nationality of customers

 

H4: There is no difference between customer satisfaction of prices and age groups of customers. (Rejected)

Q2: What is your age group?

Q 4.1: The price strategy of café NESCA is satisfactory.

 

Approximately 2% of the respondents were under twenty years old with a mean of 1, 59% were between twenty-one and thirty with a mean of 2.60 and 23% were between thirty-one and forty with a mean of 3.08. In addition, 13% were between forty-one and fifty with a mean of 3.00 and 3% were over fifty-one years old with a mean of 4.00 (Table 9). The one-way ANOVA indicates: That we want to analyse how differences among more than two groups (nominally scaled) of different age groups and their attitudes are towards the satisfaction of prices. Examining the significance value was 0.01 below 0.05 (Table 9). There is a significant different. Therefore, the hypothesis is rejected

 

Table 9

 

 

 

 

Finding: The one-way ANOVA indicates that there is a signification difference between customer satisfaction of prices and age groups of customer

 

RO3: To determine which factors in services customers are satisfied or dissatisfied.

H1: The environment and facilities offered by café NESCA are not acceptable. (Rejected)

Q5.1: The environment of café NESCA is acceptable.

 

The responses for question 5.1 were as follow: 0 missing, 100 respondents answering 3% “not at all true”, 13% “not very true”, 35% “Mixed”, 42% “somewhat true”, 7% “very true” (Chart 6) and a mean of 3.37 (Table 10). The one sample t-test indicates: The hypothesis state has negative attitudes that the mean value fall 3. Examining the significance value, it is 0.00 below 0.05 then there is a significant difference between the hypothesis and the answer. This indicates that the t-value is 4.083 (Table 10). The t-value is positive towards agreement. Therefore, the hypothesis is rejected.

 

Chart 6

 

 

Table 10

 

 

 

H2: The services offered by Café NESCA are not effective. (Rejected)

Q5.2: The staff services of Café NESCA are efficient.

 

The responses for question 5.2 were as follow: 0 missing, 100 respondents answering 6% “not at all true”, 19% “not very true”, 28% “Mixed”, 33% “somewhat true”, 14% “very true” (Chart 7) and a mean of 3.30 (Table 11). The one sample t-test indicates: The hypothesis state has negative attitudes that the mean value fall 3. Examining the significance value, it is 0.08 below 0.05 then there is a significant difference between the hypothesis and the answer. This indicates that the t-value is 2.691. The t-value is positive towards agreement. Therefore, the hypothesis is rejected.

 

Chart 7

 

Table 11

 

 

 

 

H3: The attitudes offered by café NESCA are not good. (Rejected)

Q5.3: The staff attitudes at café NESCA are friendly.

 

The responses for question 5.3 were as follow: 0 missing, 100 respondents answering 1% “not at all true”, 11% “not very true”, 18% “Mixed”, 44% “somewhat true”, 26% “very true” (Chart 8)and a mean of 3.83 (Table 12). The one sample t-test indicates: The hypothesis state has negative attitudes that the mean value fall 3. Examining the significance value, it is 0.00 below 0.05 then there is a significant difference between the hypothesis and the answer. This indicates that the t-value is 8.513. The t-value is positive towards agreement. Therefore, the hypothesis is rejected.

 

 

 

 

 

Chart 8

 

Table 12

 

 

 

 

Finding: The one sample t-test indicates that hypothesizes are all rejected. The results mean the environment, efficiency and attitudes are not important factors for customer satisfactory. 

 

 

 

H4: There is no difference between customer satisfaction of services and nationality of customers. (Rejected)

Q1: What is your nationality?

Q5.4: The services provided by café NESCA are satisfactory.

 

Approximately 38% of the respondents were Australian with a mean of 3.39 and 62% were overseas with a mean of 2.91 (Table 13). The independent sample test indicates: That we want to analyse are there any differences between Australian and Oversea customers (nominally scaled) and their attitudes towards the satisfaction of services? Examining the significance value, it is 0.026 below 0.05 then there is a significant difference between the hypothesis and the answer. This indicates that the t-value is 2.265 (Table 13). The t-value is positive towards agreement. Therefore, the hypothesis is rejected

 

Table 13

 

 

 

Finding: independent-samples t-test indicates that there is a significant difference between customer satisfaction of services and nationality of customers

 

H5: There is no difference between customer satisfaction of services and age groups of customers. (Rejected)

Q2: What is your age group?

Q5.4: The services provided by Café NESCA are satisfactory.

 

Approximately 2% of the respondents were under twenty years old with a mean of 1, 59% were between twenty-one and thirty with a mean of 2.85 and 23% were between thirty-one and forty with a mean of 3.65. In addition, 13% were between forty-one and fifty with a mean of 3.54 and 3% were over fifty-one years old with a mean of 3.33 (Table 14). The one-way ANOVA indicates: That we want to analyse how difference among more than two groups (nominally scaled) of different age groups and their attitudes are towards the satisfaction of services. Examining the significance value is 0.00 below 0.05 (Table 14). There is a significant different. Therefore, the hypothesis isrejected

 

Table 14

 

 

 

Finding: one-way ANOVA indicates that there is a signification different between customer satisfaction of services and age groups of customers.

 

5.3 The Other Finding

The finding from data analysis indicated that the age group and different nationality which both go toward customer satisfaction among the products, services and prices were signification different. Therefore, this means different age customers and different cultural perception are both important factors for Café NESCA.

 

The Independent sample test to products and nationality indicated that oversea customers (mean 2.6129) were more dissatisfied than Australia customer (mean 3.0526). The result was closer to one sample t- test to the product quality (mean2.7800), items (mean2.5500) and delicious (mean2.5500).

 

The one way ANOVA to age groups and products indicated that the age groups between under 20 (mean 2) and 21-30 (mean 2.5424) were more dissatisfied than other groups (up than 31 age groups mean up than 3.0769). Therefore, obviously we assure that younger customers dislike the products of Café NESCA.

 

Even though the customers dissatisfied with prices of Café NESCA, the price satisfactory mean was under 2.75. (It was closer the mean 3). It supposed the price strategy of Café NASCA is not an important factor of customer satisfaction than products.

 

The results indicated that the service was satisfactory to customers. On the other hand, the different age groups and nationalities have significantly difference in their attitude. It supposed that the different age groups and nationality have different perceptions for services.        

 

6. Recommendation

Products

In this research, it has been proven that customers are dissatisfied with product quality, items and taste (from hypothesis1, 2, 3 in products). In nationality, obviously overseas customers are dissatisfied with products (a mean of 2.61) and Australian customers are satisfied with products (a mean of 3.05). In age groups, people who are under 20 (a mean of 2) and 21-31 (a mean of 2.54) are dissatisfied with products. As a result, it is recommended that products consider these factors..

 

Product items: Café NESCA can use line extensions and brand extension. “Line extensions occur when a company introduces additional items in a given product category under the same band name and a brand extension involves the use of a successful brand name to launch new or modified products in a new category” (Kotler et al., (1998), p.364-365).

For example:

1. More flavours in one product (line extensions)

2. Creating new products (a brand extension)

3. Special item provided: Café NESCA can set a special food combo to increase the sale.            

 

Product quality: Kotler et al (1998, p10) interpreted in the narrowest sense that quality is in terms of customer satisfaction. Thus, Café NESCA should improve the taste of products to increase the level of customer satisfaction.

For example, standardize food processed: Café NESCA can control the quality and taste of foods for overseas and younger customers

1.Multicultural food provided: Café NESCA can increases their oversea customers base.

2.Novel product created: Café NESCA need to have a special item or flavor to attract innovation customers.  

 

 

Prices and Promotions

In this research, H1 and H2 in prices were not rejected. This result means customers think prices of products at Café NESCA are not reasonable. In nationality, overseas customers are dissatisfied with prices (a mean of 2.46) and Australian customer are satisfied with products (a mean of 3.21). Furthermore, in age groups, people who are under 20 (a mean of 1) and 21-31 (a mean of 2.60) are dissatisfied with the prices of Café NESCA. Youth people are also sensitive about prices. As a result, it is recommendation that these factors are considered.

 

Cost: Kotler et al (1998. p420) interpreted that to price wisely, management needs to know how its costs vary with different levels of production.

For example:

1. Café NESCA should know how to control the cost of products efficiently.

2. Café NESCA should consider the prices and offering of their competitors.

 

Promotions:

1. Special price: It is not just a discount for member, it additionally provides for take-way customers.   

2.Price value:setting a same price policing, the customers can select more choice and variety items.      

3. Coupon: after the customer’s purchase, Café NESCA can give customers coupon to

encourage repurchasing.

 

 

Services

In this research, the average means of services are between 3.30 and 3.83, so Café NESCA should keep going their advantages. However, in nationality, obviously overseas are dissatisfied with services (a mean of 2.91) and Australian are satisfied with services (a mean of 3.39). In age groups, people who are under 20 (a mean of 1) and 21-31 (a mean of 2.84) are dissatisfied with services. According to Hofstede’s five universal dimensions of culture, different cultural values for services are the main reason. Additionally, young people usually have different values such as generation X. As a result, it is recommended that these factors be considered.

 

1. Standardization of food process: it can reduce the waiting time for customers.

2. Café NESCA creates an atmosphere: it is not only a food shop, but also a café shop. Therefore, atmosphere is extremely important. For example, Café NESCA can play relaxing music for customers to enhance the atmosphere.

3. On-line service: it is the trend of Café shop, customers to use a note book on line.

4. Fast cashier service: A number of the simple product items can be quickly purchased through a fast cashier service.

 

 

7. Limitation of Studies

1. 1.      Limitation of information： Due to café NESCA being a local small coffee shop, it was difficult to seek and search secondary data such as sales and accounting information. 
2. 2.      Too many factors impact: Too many factors may bring about negative impact, the study was only focused on relevant and internal factors of café NESCA; the external factors are not within the research range.
3. 3.      The survey population: the target population focuses on the staff and students (oversea and Australia) of University House. In the duration of this survey. It was found that there are many customers from other places. It has some different with target population.
4. 4.      Limitation of store name image: There are many customers that do not know the name of Café NESCA. This can be explained by the location of Café NESCA.    
5. 5.      Limitation of Nationality analysis: The questionnaire surveyed two groups of nationality (Australia and Oversea). There were some problems in analyzing the relative difference in country and culture perceptions .For example: the exchange rates affect the price perception.   

 

 

8. Conclusion

The cafeteria has always been an important area of recreation and rest for staff and students alike, from various educational institutions. Should these consumers feel dissatisfied with the level of service presented at the cafeteria (falling short of expectations); the likelihood of these consumers patronizing the cafeteria will decrease, thus affecting the production and management of the cafeteria.  This study is in hope that such information gathered will provide café NESCA with a direction towards improvements in internal management. Additionally, is should serve as a source of reference when considering competitive strategies.

 

Bringing together the gathered information on consumer satisfaction as a collective whole, the findings can be categorized into two major parts：

 

1. Consumer backgrounds – Results showed that there is a majority of consumers comprising of overseas customers, reaching a proportion of 62%. Furthermore, the majority of the sample was aged between 21-30 then 31-40.  According to independent t-test and ANOVA test, it is found there is a significant difference between Australian and overseas customers in their opinion towards product, price and service of cafe NESCA, and there is a significant difference between customers in different age groups.  In respect to this, though café NESCA primary serves fast food and western cuisine, the major deciding factor of its consumer satisfaction level depends primarily on overseas students. These overseas students’ tastes and preferences can be taken into account, leaves room for consideration of utmost importance when adjustments are made to increase customer satisfaction in the future. 

 

2. Consumer satisfaction analysis – The customers showed a high degree of satisfaction toward service provided by café NESCA, while its competitive pricing ranks second. On the contrary, most faults are found with product quality.  From this, it is found that the most pressing issue at the moment is the need to improve the taste and variety of its products. Maintaining the current level of service or even improving it further will increase the degree of customer satisfaction.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 The Newcastle University of Australia

Peter Lee