Coffee As A Beverage usage in kenya analysis

In Africa coffee producing countries export more than 96 percent .  The coffee supply chain tends to be complex, with many actors, producers, collectors traders/brokers and packers involved. However, the buying and retailing end of the market is dominated by a handful of commercial marketing agents who offer services purely for commercial purposes and the grower marketing agents who market their own coffee. (coffee board of Kenya, 2009).  Bundi (2005) concludes that negative publicity by some scholars is a challenge to the coffee industry  to overcome, thus, the pleasures and benefits of consuming coffee  are not known to many.     The local coffee market absorbs only 3% of the total production (Kenya coffee producers and traders association KCPTA 2005 Kenya Coffee Board).   Many other (leading) producing countries, such as  Brazil, Colombia and Ethiopia  export most of the coffee they produce.  The objectives of the study will be; To find out whether advertising influences the usage of coffee by the residents of Nairobi; To determine whether pricing influences the Coffee usage by the residents of Nairobi; To establish how Branding has influenced the usage of coffee as a beverage to the residents of Nairobi; and to determine the extent to which Culture  influences the coffee usage by the residents of Nairobi.The study will be important to various stakeholders including the management of the outlets selling coffee, the government and future scholars by providing relevant information on the topic of the study.  The research methodology will adopt a descriptive research design and the population size will be 105 from the eleven (11) Java and four (4) Savanna outlets respectively.  A Census of the population of the study will be taken. Data will be collected through a questionnaire that has both closed and open ended questions. Data will be analyzed using descriptive statistics. There will be the use of Microsoft Excel and SPSS software to aid the analysis.  On completion of the study the researcher aims to establish the factors that influence the usage of coffee as a beverage within the city of Nairobi. It will also aim to establish the influence of advertising, price, culture and branding on the coffee usage within Nairobi city.

 

 

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DEDICATION

This work is dedicated to my late dad, SAM KOBIA.

 

                                            

 

 

 

 

 

 

 

 

 

 

 

 

 

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ACKNOWLEDGEMENT

I wish to thank God for giving me this chance to realize my dream. This study is as a result of hard work in which I have been accompanied and supported by many people to whom I am happy to express my gratitude. In particular, I would like to express my sincere appreciation to my supervisors Messrs. Shadrack Bett and Julius Murungi for their valuable guidance and inspiration throughout the study.

I would also like to acknowledge the assistance provided by various resource centres of The Tea board of Kenya, tea research foundation and Williamson Tea.

Finally, I would like to thank my family and friends for sharing with me the challenges I encountered during the process of finalizing this study.

 

 

 

 

 

 

 

 

 

 

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TABLE OF CONTENTS

Title                                                     ………………………………………………………………………..      i

Declaration                                          ………………………………………………………………………..      ii

Abstract                                              ………………………………………………………………………..      iii

Dedication                                          ………………………………………………………………………..      iv

Acknowledgement                              ………………………………………………………………………..      v

Table of contents                                …………………………………………………………………………    vi – ix

Defination of Terms/Abbreviations    …………………………………………………………………                     x

CHAPTER ONE

1.0       INTRODUCTION                ………………………………………………………………………..      1

1.1       Background to the study        ………………………………………………………………………..      1

1.2       Statement of the problem       ………………………………………………………………………..      2

1.3       Objectives of the study                       ………………………………………………………………………..      3

1.4       Research questions                  ………………………………………………………………………..      4

1.5       Significance of the study                    ……………………………………………………………………….      4

1.6       The scope of the study                        ………………………………………………………………………..      5

1.7       Limitations of the study                     ………………………………………………………………………..      5

 

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CHAPTER TWO

2.0       LITERATURE REVIEW               ………………………………………………………………………..      6

2.1       Introduction to Literature Review………………………………………………………………………..            6

2.2       Main Review                           ……………………………………………………………………….      6

2.2.1    Tea drinking culture                ………………………………………………………………………..      6

2.2.2    Price                                        ………………………………………………………………………..      7

2.2.3    Advertising                             ……………………………………………………………………….      9

2.2.4     Branding                                ………………………………………………………………………..      10

2.2.5    Culture                                                ………………………………………………………………………..      12

2.3       Critical Review                                   ………………………………………………………………………..              13

2.4      Summary and gaps to be filled by the study………………………………………………………….            13

2.5      Conceptual Framework                        …………………………………………………………………………            14,15

CHAPTER THREE  RESEARCH METHODOLOGY

3.0    Introduction                               ………………………………………………………………………..      16

3.1    Research design                         ………………………………………………………………………..      16

3.2     Target population                                  ………………………………………………………………………..      16

3.3     Sampling design                                    ………………………………………………………………………..      17

3.4      Data collection procedures/instruments used  ………………………………….. ………….      18

3.5     Data analysis                             ………………………………………………………………………..      19

REFERENCES                                              ………………………………………………………………………..          20-21

APPENDICES                                               ……………………………………………………………        ………….           22-38

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LIST OF FIGURES

2.4 A conceptual framework…………………………………….…………………………………………..               15,16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                                                                                                               

 

                                              

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LIST OF TABLES

 

 

 

3.1 Target population………………………………………………………………………………………………………   17

3.2  Sample design…………………………………………………………………………………………………………..  18

           

 

 

 

 

 

 

 

 

 

 

 

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DEFINATION OF TERMS/ABBREVIATIONS

FAO    –           Food and Agricultural Organization

CRF    –           Coffee Research Foundation

TBK   –           Tea Board of Kenya

EAFCA          –           East African Fine Coffee Association

EPZA –           Export Processing Zones Authority

 

 

 

 

 

 

 

 

 

 

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CHAPTER ONE

INTRODUCTION

  • Background of the study

The study of consumer behavior is helpful to organizations and firms in understanding the psychology of how consumers think, how they are influenced by their environment, understanding their behavior when making shopping decisions and how limitations in consumer knowledge or information processing abilities influences their decision outcomes.  The field of consumer behavior studies how individuals, groups and organizations select, buy, use and dispose of goods, services, ideas, or experiences to satisfy their needs and desires (Kotler 2010). As such, the field of consumer behavior is imperative to this study because the psychology of how consumers go about their consumer choices in the light of other alternative beverages helps marketers to adapt and improve their marketing campaigns and strategies to reach the target consumers more effectively. Consequentlly, the field of consumer behaviour plays two important roles in respect to this study. The first, is that the knowledge should help in improving the marketing strategies in the coffee industry; for instance, proper scheduling of advertisements and promotional campaigns. Secondly, the knowledge helps in making us better consumers.

The consumer buying process in the coffee market can be described in a five-stage process, just as most goods and services. At the first stage, consumers recognize a problem; for which a solution is needed to solve it via a perceived need. At this stage, problem recognition could be as simple as seeing a coffee cup logo or billboard or triggered by marketing and promotional efforts. Continued or incessant marketing and advertisements efforts can arouse curiosity in target consumers and trigger decision making process (Dada, 2007). The second stage in the buying process involves information search. Here, the consumer seeks value through a number of ways; which include: scanning one’s memory to recall previous experiences with the coffee products or brands and inquiry from other sources such as other consumers. The risk of making wrong purchases is increased if the knowledge acquired during this stage is insufficient or if the past experience with the product is not sufficient. There are three basic sources of external information for consumers at this stage. Firstly, the consumer might get information about the coffee brand or product via personal sources such as friends and family. Another source of information is the public sources, and this may include exhibitions and product or brand rating companies. Lastly, the consumer may also get information from the marketer-dominated sources, such as advertising, company websites, and salespeople.

The third stage of the buying process is the alternative evaluation stage where the consumer assesses value in the coffee product by using information gathered at stage two . Basically, the information gathered by the consumer at stage two is important at this stage becasue it helps in suggesting criteria to use for the purchase,  yielding brand names that might meet the criteria, and developing consumer value perception. The  consumer’s evaluative criteria is governed by both subjective factors like prkestige and objective attributes of a product.  After accomplishing this, the consumer moves to the decision making stage where the consumer chooses any of the three possibilities. The first possibility is choosing whom to buy from.  Factors for the consum er to consider include; terms of sale, past buying experience with the seller or return policy. Another option that the consumer considers is when to buy the product under consideration. This option may be influenced by the time pressure,  coffee house atmosphere or pleasantness of the shopping experience. The consumer may also just decide not to buy.

The last stage in the consumer buying process is the post-purchase stage where the consumer evaluates the value in consumption of the bought product or in use of a service.  During all the stages mentioned above, the consumers have their own expectations about the product they are considering to purchase. Hence, they compare their expectations with actual experience to see whether they are satisfied or dissatisfied. Thus, a firm might have high quality products but if the queuing time is longer while the customer’s expectations were of high quality quick service, the end comparison may make the customer never to come back.  A business that understands this is able to improve on service delivery through customer-based approach with many customer care representatives for quick service.

 

1.2 Statement of the Problem

The intricate mode of behavior of the consumer during the buying process shows that understanding consumer behavior and “knowing customers” is never simple (Kotler 2004). Customers may say one thing but do another. They may not be in touch with their deeper motivations. They may respond to influences that change their minds at the last minute. Small and medium companies like the Java chain or big companies like Sasini (savanna) stand to profit from understanding how and why their customers buy.  

2D

Demand conditions are also weak in Kenya further limiting the pressure put on producers to improve quality. Kenya has a tea rather than a coffee culture and consumption is low relative to other coffee producing countries (CRF Journal 2005). While Ethiopians consume 50% of the coffee they produce, Kenyans consume only 1%. Large estates and local roasters have made some effort to encourage the development of a coffee culture by opening retail shops throughout Nairobi but the retail industry is not yet fully developed (World Resource Institute, 2005).It is against this background that the researcher aims to find out the factors influencing the usage of coffee in Java and Savannah coffee houses in Nairobi.

1.3       Objectives of the Study

The objectives of this study will include the following;

General Objective

To investigate the factors that influence the usage of coffee as a beverage in Java and Savannah Coffee houses in Nairobi.

Specific Objectives

  1. To find out to what extent does advertising influence the usage of coffee as a beverage in Java and Savannah Coffee houses in Nairobi.
  2. To determine the extent to which pricing influences the usage of coffee as a beverage in Java and Savannah Coffee houses in Nairobi.
  3. To establish if branding influences the usage of coffee as a beverage in Java and Savannah Coffee houses in Nairobi.
  4. To examine the extent to which socio-economic factors influence the consumption of coffee in Java and Savannah Coffee houses in Nairobi.

 

 

 

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1.4            Research Questions

The study will seek information to answer the following questions;

  1. What is the extent to which advertising influences the usage of coffee in Java and Savannah Coffee houses in Nairobi?
  2. How does pricing of coffee in the outlets influence usage of coffee in Java and Savannah Coffee houses in Nairobi?
  3. Does the branding of coffee influence usage of coffee in Java and Savannah Coffee houses in Nairobi?
  4. To what extent do socio-economic factors influence the usage of coffee as a beverage in Java and Savannah Coffee houses in Nairobi?

1.5 The Significance of the Study

The study will benefit the following groups;

4D

Top management of the outlets that sell coffee as one of their products who may use the study to understand what affects their growth and how to increase their customer base. The government, who will use the information to formulate policies to increase local consumption of coffee in the country, the stakeholders of coffee outlets such as shareholders and partners who will use the information to understand what affects growth for planning purposes. Other researchers will use the study for information purposes.

 

1.6 The Scope of the Study

The scope of this study will be the employees of Java and Savannah coffee Houses within Nairobi.  The research will cover both staff and selected regular customers. Java is the oldest and most representative in terms outlets and while Savanna outlets are the latest in the coffee beverage market in Nairobi.

1.7 Limitations of the Study

The possible or anticipated limitations include uncooperative respondents, unreturned questionnaires, and respondents giving misleading information.  However frequent checks with the respondents and guidance will assist in mitigating these challenges.

 

 

 

 

                                               

 

 

 

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CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

This chapter presents a review of literature pertinent to the study as presented by various researchers, scholars’ analysts and authors. This chapter summarises literature that has been reviewed and will be reviewed for the purpose of the study which is to find out to investigate the factors influencing the usage of coffee beverage in Java and Savannah Coffee houses in Nairobi.

2.2. Main Review

2.2.1 Consumer Behavior

Consumer behavior and consumer decision-making have become prominent areas of focus in the various fields of consumer science in recent years (Fullerton, 2005; Stern, 2000; Anurit et al, 1999). Consumer behavior is generally defined as the behavior or activities that consumers engage in when selecting, purchasing, and using products and services so as to satiate their needs and desires. Such activities involve mental and emotional processes, besides physical actions (Schiffman & Kanuk, 2004).

The significance of consumer behavior is deeply rooted in the marketing strategy. Virtually, all decisions involved in developing an effective marketing mix for a product or service rely on thorough knowledge of the consumers who comprise the target market (Mullen & Johnson, 1990). Understanding the behavior of the consumer can help marketers anticipate reactions to changes in the marketing mix, or determine whether new products are likely to be adopted.

Understanding buyer behavior is one of the more perplexing tasks confronting every business owner. The difficulty arises from the heterogeneity of buyers, from their brand loyal or being groups of individuals who differ from one another. But differences notwithstanding, consumers do share attitudes, opinions, reactions, and desires at various times. Business experience, marketing research, theoretical constructs and models, and trial-and-error methods help to find some of the common denominators.

2.2.2 Consumer Brand Loyalty

Brand loyalty is widely understood to be the ultimate goal a company sets for a branded product. In today’s highly competitive environments, brand loyalty has become a key factor to consider when making critically valuable consumer-targeted decisions in the organization. It is defined by Wilkie (1994) as “a favorable attitude toward, and consistent purchase of, a particular brand”. Repurchase is not sufficient evidence of brand loyalty as it has been described as a behavioral response and as a function of psychological processes (Jacoby & Kyner 1973). Brand loyalty is a function of both behavior and attitudes; hence it closely relates to consumer behavior.

2.2.3 Usage of coffee

The coffee industry in Kenya is noted for its cooperative system of production , processing, milling , marketing  and auctioning coffee ( navigation search). About 70% of kenyan coffee is produced by small scale holders. It is estimated that about 6million kenyans are employed directly or indiretly in the coffee industry.(www.eafca.org). Coffee from Kenya is of the “mild arabica” type and is well known for its intense flavour , full body and pleasant aroma (Porter, michael 2006)

6D

The volume of coffee produced in the country has been on a decline from a high of 128,000 metric tonnes in 1987/88 to 42,000 produced in 2007/08. High production costs as well as limited availability of land, market, labour and water remain key challenges for the coffee industry ( CRF Journal 2007).

Dada (2007) concludes that Kenya is primarily a tea drinking society but the local market for coffee consumption can be developed. A key factor for the low absorption of coffee stems from the prohibitively high purchase price. Based on the current legal framework, producers are expressly prohibited from adding value to the coffee beans. Beyond harvesting, they are not permitted to retain any portion of their coffee for processing for personal consumption. In order to drink coffee, producers would have to buy it at the auction, which, considering their lack of knowledge of the auction system, their limited bargaining power and the simple fact that they cannot afford the high price, results in them being effectively hindered from consuming the product. The same is true for most of Kenya’s low-income population. A consumer buying behavior is influenced by among others, cultural, social, personal and financial factors.

2.2.4 Price

7D

Pricing is one of the most important marketing mix decisions, and it is the only marketing mix variable that generates revenues. Pricing is not a single concept, but a multidimensional one with different meanings and implications for the manufacturer, the middleman and the end customer. Pricing strategy is of great importance because it affects both revenue and buyer behaviour. Pricing involves the determination (and adjustment) of a price structure and price levels, as well as decisions on short-term price changes. A more effective, goal-orientated approach to pricing is needed that explicitly takes into account the role of price as a marketing mix instrument and as a profit generator. This provides a framework for effective, goal-orientated pricing, and helps highlight the major aspects and factors of the pricing decision (Hollensen, 2003).

Price determination for many consumer products is often a function of the cost of production and a desired level of mark-up. Price determination by this desired level of mark-up is often referred to as cost-plus pricing, mark-up pricing or full-cost pricing. Luxury goods and niche products often command a premium which exceed the set mark-up. That is why cost of production, desired mark-up and market demand should all be evaluated when establishing a product’s selling price. To determine a product’s selling price using the mark-up method, the total cost of producing a product on a per unit basis must me known.  Total cost should include all of the costs incurred in getting the product to the point of sale. This would include but is not limited to input costs, labor, overhead costs, transportation costs, warehousing costs, distribution costs and marketing costs (Holland, 1998).

Ellickson & Misra (2008) point out that while firms compete along many dimensions, pricing strategy is clearly one of the most important. In many retail industries, pricing strategy can be characterized as a choice between offering relatively stable prices across a wide range of products (often called everyday low pricing) or emphasizing deep and frequent discounts on a smaller set of goods (referred to as promotional or PROMO pricing.

 

 

 

 

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2.2.5 Advertising

The American Marketing Association defines advertising as “any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor.” Advertising is non-personal as it is not directed to any single individual. Secondly, the sponsor i.e. the manufacturer or producer is identified as his name and address is always contained in an advertisement and he also bears all the cost involved in the process. Thirdly, the producer can also promote an idea regarding quality, design, packing and pricing, etc. of any product or service. Thus, we can say, advertising consists of all activities involved in presenting a sponsored message regarding a product, service or an idea. Kirchhof (2009) defines advertising as the use of images, sounds, and slogans to communicate a message that will spark consumer interest in goods or services. Advertising allows businesses to promote products or burnish corporate reputations. Advertising can improve market efficiency by providing consumers and businesses with information about products or services that increase competition and reduce prices.

Kenyan coffee is traded at the auction, which is usually held on Tuesdays at the Nairobi coffee exchange (NCE). Licensed exporters assemble and bid for the lots listed in the catalogue. Ten days before the auction, the coffee to be auctioned is sent to the dealers and marketing agents for evaluation. Following the bidding, dealers and exporters are given seven days in which to pay for their selected lots. The marketing agents receive the proceeds, subtract the appropriate fees for marketing expenses and statutory deductions and then pay the growers (Export Promotion Zone Authority 2005).

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2.2.6 Branding

The American Marketing Association defines a brand as  a ‘name, term, sign, symbol or design, a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.’ A brand is thus a product or service that adds dimensions that differentiate it in some way from other products or services designed to satisfy the same need (http://www.marketingpower.com). Ambler (1992) takes a consumer-oriented approach in defining a brand as: the promise of the bundles of attributes that someone buys and provide satisfaction .The attributes that make up a brand may be real or illusory, rational or emotional, tangible or invisible.

The objectives that a good brand will achieve include: delivers the message clearly, confirms your credibility, connects your target prospects emotionally, motivates the buyer and concretes User Loyalty. To succeed in branding one must understand the needs and wants of the customers and prospects. It’s important to realize that packaging always either has a negative or positive influence on the purchaser. A negative impression can detour a potential customer, just as a positive reaction can influence a customer to buy. A time to pay special attention to your packaging is when companies are in the launch of a “new” brand (PAR marketing Services, 2010). Aaker (1996) further highlights the strategic importance of understanding brand as it can help brand strategists by enriching their understanding of people’s perceptions of and attitude toward the brand, contributing to a differentiating brand identity, guiding the communication effort and creating brand equity.

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Successful brands must identify an unmet need/desire, advertisers may not have even recognized these themselves, but they can immediately see the potential benefits when the idea is put before them; create a product that is different, relevant and appealing; the whole organization from top to bottom must be committed to the success of the new idea and give the required support: marketers must synchronize advertiser’s perception and attitudes towards brand imagery. The king of positioning and the image a brand seeks may be based on rational and tangible differences based on product performance, or may be more symbolic, emotional and intangible based on brand aspirations or what the brand represents. The latter criterion is mainly influenced by advertisers’ attitudes, perceptions and beliefs and represents added value that brands provide beyond the core products. Marketers often use such differentials to position their products in the advertiser’s perceptual mind. Customer satisfaction occurs after and sometimes during customer experience (Kotler, 2000).

11D

Keller (2004) adds that a brand element is visual or verbal information that serves to identify and differentiate a product. The most common brand elements are: Brand names ,Logos, Symbols , Characters, Packaging and signage and Slogans .Brand elements can be chosen to enhance brand awareness or facilitate the formation of strong, favorable, and unique brand associations. The test of the brand-building contribution of brand elements is what consumers would think about the product if they only knew about its brand elements. Therefore choosing the proper brand elements according to these criteria can help to contribute to brand equity by enhancing awareness and the formation of a positive brand image. Because different elements have different advantages, in most cases a subset or even all of the possible brand elements should be employed.

 

2.2.7 Culture

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A culture is the system of shared beliefs, values, customs, behaviour, and artefacts that the members of society use to cope with their world and with one another (Bates, plog 1999). Cultural factors exert the broadest and deepest influence ( kotler). Culture, sub culture, and social class are particularly important in buying behaviour. Culture is the fundamental determinant of a person’s wants and behaviour. The growing child acquires a set of values, perspectives, preferences and behaviour through his/her family and other key institutions.  Each culture consists of smaller sub-cultures that provide more specific identification and socialization for their members.  Sub-cultures include nationalities, religions, racial groups and geographic regions. When sub cultures grow large, and affluent enough, companies often design specialized marketing programmes to serve them. Such programmes are known as ‘diversity marketing’ because ethnic and demographic niches do not always respond favourably to mass marketing advertising (marketing insight). This is because virtually all human societies exhibits social stratification which sometimes takes the form of a caste system which takes the form of social classes , relatively homogenous and enduring divisions in a society which are hierarchically ordered and whose members share similar values , interests and behaviour. Social classes reflect not only income but other indicators such as occupation, education and area of residence. Social classes have several characteristics; there are those within each class who tend to behave more alike than persons from two social classes.   A social class is indicated by a cluster of variables e.g. Occupation, income, wealth, education and value orientation- rather than by any single variable. Kotler (2004), points out that social classes show distinct product and brand preferences in many areas; including clothing, leisure activities and eating habits.

2.3   Critical Review

Little research has been done with regard to the factors that influence the coffee beverage usage in Kenya and specifically in Nairobi and therefore the variables laid out in the literature review may not clearly relate with each other. The use of literature based on developed countries may also pose a challenge to bringing out the true picture on the Kenyan market.

2.4 Summary and gaps to be filled

Not much has been done on usage of coffee in Coffee houses in Nairobi and in Kenya in General. The literature review shows that little research has been conducted on the topic of the study. This study will thus bridge the gap that exists in the present knowledge in this area

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2.5 Conceptual Framework

 

Figure 2.1 Conceptual Framework

Price

 

 

 

 

 

 

 

 

 

Advertising

 

 

Branding

 

 

(Dependent variable)

 

Independent variables.

 

 

Source: Researcher Study 2011

 

 

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INTERPRETATION OF THE VARIABLES

Advertising – Influences coffee usage in Java and Savannah coffee houses. The use of proper advertising techniques creates proper awareness of a product. Therefore if proper advertising of coffee and coffee products is done, there will be an increase in the number of people using the beverage and its products.

Price- Influences coffee usage. If the price is affordable, most individuals will purchase coffee and coffee products thus promote the coffee usage.

Branding- Influences coffee usage. If proper branding of coffee and coffee products is done, this will attract more individuals to buying the products thus aid the coffee usage.

Culture It is the fundamental determinant of a persons wants and behaviour.

 

 

                            

 

 

 

 

                     

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3.0 CHAPTER THREE

RESEARCH METHODOLOGY

This chapter deals in the way the research will be carried out. These include Research Design, population of the study, sample and sampling design, data collection tools, procedures and data analysis.

3.1 The Research Design

Descriptive design will be adopted. Descriptive studies are undertaken when the characteristics or the phenomenon to be tapped in a situation are known to exist and one wants to be able to describe them better by offering a profile of factors (Sekaran 2003). A descriptive study of Java and Savanna retail coffee selling outlets in Nairobi will be undertaken. This design will be used for its ability to answer research questions and describe the factors that affect the coffee usage in the seleceted outlets.

  • Target Population

The target population of this study will comprise of employees and selected regular customers of the Nairobi Java Coffee  House (11 Branches) and Savannah Coffee &Tea House (4 branches) retail outlets as shown in Appendix V .  One Supervisory and one junior employee will be selected from each of the outlets and  105 customers distributed equally among the outletsThe population will be as indicated below.

 

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Table 3.1 Target Popoulation

Table 3.1 Target Population

Group Population Percentage of the total Population
Supervisory employees 15 15           14.2%
Subordinate employees 15 15          14.2%
Selected regular customers 75 75          71.4%
Total 105 105       100%

 

  • Sample design

Stratified random sampling is appropriate in studies where the research problem requires comparisons between various sub groups. (Ochol & Ngige)

The reason for this sampling design is that the target population is composed of the employees and selected regular customers of the Nairobi Java Coffee and Savannah Coffee Houses. Mugenda and Mugenda (2003) points out that stratified random sampling ensures inclusion in the sample sub group or elements which would otherwise have been omitted because of their smaller numbers in the population.

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Sample size will constitute a census of the target population of employees and selected regular customers of the Nairobi Java and Savanna Coffee Houses. Gay 2005) postulates that a sample size of 20% for smaller populations may be required in descriptive research.This is tabulated below:

Table 3.2 Sample design

Group Population Sample Ratio Samples
Supervisory employees 15 1 15
Subordinate employees 15 1 15
Selected regular customers 75 1 75
Total 105   105

 

3.4       Data Collection tools and procedures

The researcher will use both primary and secondary sources to collect data for the study. The primary data will be more sought due to its nearness to truth and ease for control over errors (Copper and Schiddler, 2003). These primary data will be obtained through the use of a questionnaire, which is one of the main data collection methods in survey research (Sekaran 2003). Both structured and unstructured questionnaires will be issued to sample population.

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Structured questionnaires will be used for their ability to obtain information fairly easily where responses can be easily coded. Unstructured questionnaires will be used to give the respondent freedom of response and provide as much information as possible. The drop and pick method will be used in administration of questionnaires, the reason being that the researcher will get an opportunity to introduce the research topic, the method is less expensive and consumes less time whereby it does not require any skill to administer. Secondary data will be sourced to supplement the primary data. This will be conducted by means of making reference to existing materials such as management reports, journals, other empirical researches in the area and any other relevant documents.

  • Data Analysis Techniques

The collected questionnaires (data) will be thoroughly examined and checked for completeness and comprehensibility. The data will then be summarized, coded and tabulated. Statistical package of social science (SPSS) will be used to aid in this data analysis, to determine correlation and cross tabulation will be applied to help establish patterns, trends and relationships and to make it easier for the researcher to understand and interpret implications of the study. The report will be presented by use of percentages, proportions, cumulative tables and frequency tables.

 

 

 

 

 

 

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REFERENCES

Aaker, D (1996), Building Strong Brands, Free Press, New York, NY, p. 150.

Ambler, T. (1992), Need-to-Know-Marketing, Century Business, LondonPAR marketing services –Branding www.parmarketingservices.com/Branding%20White%20Paper.pdf accessed on 30th December 2010

Baker M (2000),Marketing strategy and management-3rd Edition,Palgra

Ellickson Paul B and Sanjog Misra(2008), Marketing Science- Supermarket Pricing Strategies,Vol. 27, No. 5, September–October 2008, pp. 811–828

Dada, Lade (2007). “The African Export Industry. What Happened and How Can it Be Revived? Case Study on the African Coffee Sector.” Agricultural Management, Marketing and Finance Services of FAO Working Paper, Rome.

Coffee Reseach Foundation KENYA

Kotler, P. (2004) Ten Deadly Marketing Sins: Signs and Solutions, John Wiley and Sons

Andaleeb, S. & Conway, C. (2006), “Customer satisfaction in the restaurant industry: an examination of the transaction-specific model”, Journal of Services Marketing, vol. vol. 20 (1), pp. 3-11

 

Anurit, J., Newman, K. & Chansarker, B. (1999), “Consumer Behavior of Luxury Automobiles: a comparative study between Thai and UK Customers”, Discussion Paper, London: Middlesex University Business School.

Fullerton, G. (2005), “Impact of Brand Commitment on Loyalty to Retail Service Brands”, The Canadian Journal of Administrative Sciences, June 2005.

Stern, P. (2000), “New Environmental Theories: Toward a Coherent Theory of Environmentally Significant Behavior”, Journal of Social Issues, vol. 56 (3), p. 407-424

Eastern African Fine Coffees Association (EAFCA) (2010), Eafca Coffee Outlook 2010, www.eafca.org

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Porter, Michael (1998), On Competition, Harvard Business School Press, Boston, MA.

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