7. Conclusion
7.1 Recommendations
In conclusion, Expresszo can use the insights from its guests to improve its coffee experience and increase cash flow during off-‐season to the following extent.
According to the profit-‐chain (Heskett, Jones, Loveman, Sasser Jr. & Schlesinger, 2008), higher revenues are influenced by customer satisfaction resulting in loyalty. By closing the gaps between customers’ expectations and perception, Expresszo can influence the coffee experience directly and increase its guests overall satisfaction. The improved guests satisfaction will increase guests’ loyalty and lead to better reputation and higher revenues (Alrousan &
Abuamound, 2013). The finding identified two major gaps referring the dissatisfaction in coffee preparation and complaint management as well as one minor gap identifying the lacking of professional coffee knowledge of employees. By improving these gaps, customer satisfaction and coffee experience will directly be and enhanced.
Furthermore, guests show sincere interest in expanding their knowledge and experience with coffee including their reason for visiting and choices of events. Expresszo should use this strong position on the market of providing coffee experience/coffee culture and tackle seasonality by product diversification (Allcock, 1989, in Witt, Brooke & Buckley, 1991). Since guests have shown significant interest in product diversification in form of both passive and co-‐created events, Expresszo should answer to the market demand. By implementing the strategy of product diversification, Expresszo can target the same market and increase the conative loyalty of its guests. In combination with the background of the desired emotions and gender differences, a foundation has been found out to plan successful events. The interest of guests regarding passive or active entertainment varies, however; in general customers would appreciate both and show also significant interest in co-‐creation. When the events will be planned according to the findings and tailored to the preferences of the less loyal guests, their loyalty can be increased resulting in more frequent visits and consequently higher revenues.
Moreover, engaging the guests more actively in the participation of social media events should increase the guests’ action loyalty on the social platform. Hereby, the concept of co-‐creation and the guests’ interest in coffee knowledge can be implemented. The increased action loyalty will act as a low cost promotion tool by attracting new customers.
Therefore, improving the coffee experience two-‐dimensional can increase the loyalty of guests during the off-‐peak season and stabilize the business. Firstly, the management has to target the closing of satisfaction gaps shown in the SERVQUAL and secondly implement passive and active events tailored to the preferences of the guests with low or medium conative loyalty.
Additionally, further research should be considered in development of a more suitable measurement tool for perceived service quality designed especially for businesses operating in hospitality industry as well as on a more precise definition on the dimensions of action loyalty and its relation to perceived satisfaction. Moreover, this research data set can be used as a base for further research to determine further interrelations between the tools with more advanced clustering techniques such as SPSS.
7.1 Recommendations
In the following, it will be explained in detail how Expresszo should use the insights of the research to its advantage with the goal to improve guests’ coffee experience and increase cash flow during the off-‐season.
The recommendations are structured in two parts. At first, it will be explained how the current service quality can be improved with the goal to increase guests’ satisfaction leading to loyalty
and at second, it will be stated how Expresszo can add value to its guests’ coffee experience by product diversification causing a higher level of loyalty.
The perceived service quality will be improved by closing the gaps of guests’ satisfaction.
Thereby, it is crucial to pay the biggest attention to the main major gaps of tangibles and reliability. Both if not improved can lead to decline in satisfaction and revenue loss. Expresszo should pay more attention to accurate preparation of its drinks and food by making the employees to understand how crucial it is to be consistent in the preparation. Preheating the drinking cups and using a thermometer while foaming the milk can reassure the max temperature of 70 °C. Furthermore, the gap cannot only be tackled from the perception part but the management can influence the guests’ expectations. Since the barista-‐made coffee can only be served with a max of 70 °C, Expresszo should communicate this to his guests and involve them more into the knowledge of preparation. This can be done through an explanation on a board in the shop or posted coffee facts on Facebook. When the market gets to know the reason for the lower temperature of coffee and its value to the taste, its expectations will be lowered and the gap will be closed more easily. Moreover, the management should take the dissatisfaction in complaint management very seriously and develop a guide for its employees how to handle difficult situations and dissatisfaction from guests’ side. The guide can include scenarios of complains or problems followed by possibilities that show the solutions for that problem. Additionally, during the monthly meetings difficult situations and its possible solutions can be discussed with the whole team. Another gap is the professional coffee knowledge from employees’ side. Since Expresszo has its market position as a provider of coffee experience, employees should be part of this by showing interest in knowledge in the field of their work. It is important that the employees know at least the facts about the coffee used in the café such as the beans in their origin and characteristics, the roaster and the preparation process. Since Expresszo works with Single Estate Coffee Roaster, it would also present a good opportunity to advertise the high quality of its coffee. Single Estate trades directly with the farmers from over the world to ensure fair trade and long lasting business relationships whereby Expresszo beans are coming from a farm in Guatemala. Since Expresszo knows the farm and even the farmer of the beans, it could not only use it as a mean to close the gap but even add value to the guests experience that bridges the cup of coffee to its origin roots by transparency and a feeling of interconnection. At last, the possibility of opening hours should be discussed within the management. Although the café should not extent it due to revenue reasons, it should consider the following compromise. Habitually, the café is closed at 5pm and guests cannot order coffee any more. To make the coffee longer available but do not extent the employees working hours, the coffee machine should be cleaned at last instead of first. That way it is ensured that guests have the possibility to take-‐away coffee and their orders do not have to be declined. All this changes should be done as a preparation before the off-‐peak season in the coming months of summer so that guests’ satisfaction increases during the summer causing higher loyalty in the off-‐peak season of autumn.
As concluded from the research, the seasonality can be tackled with product diversification of experience economy including passive and active events. By implementing the researched preferences of guests with low or medium conative loyalty, Expresszo can increase these guests’
visit frequency resulting in enhanced purchasing behavior. By implementing Event 5 ‘Coffee learning and Tasting’, Event 2 ‘Create your own Latte Heart’ and Event 6 ‘Art Gallery’, the customer group with lower conative loyalty can be targeted and influenced. During the creation of the events, the management should follow five key experience-‐design principles for developing memorable experience according; theme the experience, harmonize impressions with positive cues, eliminate negative cues, mix in memorabilia, and engage all five senses. The researched feelings associated with coffee drinking (comfy/warmness, pleasure/enjoyment, relaxation, togetherness/interconnection) can support the creation of memorabilia.
Furthermore, Event 2 should be tailored especially for women. Expresszo could offer a Latte Art workshop in combination with High Tea. The women could enjoy delicious sandwiches and cakes while learning how to make a heart in their latte or cappuccino.
To be able to reach a wide range of guests during the promotion of the events, Expresszo should increase its social media activities especially followers on Facebook using passive and co-‐
created strategies. The increased stimulation will increase the action loyalty on social media and ensure the better market penetration during the off-‐peak season. Hereby, the stimulants can be the interest in coffee knowledge in form of posted articles and engagement in co-‐creation. The co-‐creation on Facebook can be activities where customers can vote for cake for the coming Saturday or suggest a name for calf, which Expresszo is about to buy in the coming future.
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Appendix 1
1. Survey
Enhance your coffee experience!
Dear Guest
For my graduation at HZ University of Applied Sciences, I write my thesis for Expresszo with the intention to improve its products and services and
that way enhance its guests’ coffee experience.
I will appreciate it if you fill in the following questions. The questionnaire will take approx. 10
min.
The questionnaire is anonymous and your data will be used confidentially.
Yours faithfully, Nadja Poterjaev
Let’s get started!
1. What are your expectations of espresso bars?
This section of the survey deals with your general opinion of espresso bars. Please show to what extent you agree with the given statements below concerning espresso bars.
What we are interested in is the score, which reflects your expectations you have in general when visiting an espresso bar.
You should rank each statement as follows:
Strongly Disagree Strongly Agree 1 2 3 4 5 6 7
Statements
Score 1. Espresso bars need to have modern technical equipment.
2. The interior design of espresso bars needs to be cohesive and cozy.
3. Employees at espresso bars need to be neat and tidy in their appearance.
4. Served food and drinks need to be visually appealing at espresso bars.
5. Served food and drinks at espresso bars need to have the correct
temperature.
6. Served food and drinks served at espresso bars need to be tasty.
7. The food and drinks served in espresso bars has to be of high quality.
8. Espresso bars have to provide fast service.
9. When a customer has a problem or is not satisfied, espresso bars need
to show sincere interest in solving it.
10. Espresso bars need to perform good service right from the first time.
11. Espresso bars need to provide the service and products they promise
their guests.
12. Espresso bars need to insist upon improving their mistakes.
13. Employees of espresso bars need always to be willing to help guests.
14. Employees of espresso bars should never be too busy to respond to
customers’ requests.
15. The behavior of employees in espresso bars should make you feel at ease.
16. Guests of espresso bars need to feel safe in consuming their food and
drinks.
17. Employees of espresso bars need to be consistently friendly and polite
with customers.
18. Employees of espresso bars need to have the knowledge to answer customers’ question with regard to their products.
19. Espresso bars should have time to give guests individual attention.
20. Espresso bars need to have opening hours convenient to all their
guests.
21. Espresso bars need to have their customers’ best interest in heart.
2. What is your perception of Expresszo?
The following statement relate to your feelings about the café Expresszo. Please show to what extent you believe this espresso bar has the features described in the following statements. Here, we are interested in a number from 1 to 7 that shows your perception about Expresszo.
You should rank each statement as follows:
Strongly Disagree Strongly Agree
1 2 3 4 5 6 7
Statement Score
8. Expresszo has modern technical equipment.
9. Expresszo’s interior design is cohesive and cozy.
10. Expresszo’s waitresses and baristas appear neat and tidy.
11. Served food and drinks at Expresszo appeal visually.
12. Served food and drinks at Expresszo have the correct temperature.
13. Served food and drinks at Expresszo are tasty.
14. Expresszo’s food and drinks are of high quality.
15. Expresszo gives a prompt and neat service.
16. When you have a problem, Expresszo shows sincere interest in solving
it.
17. Expresszo performs excellent service right from the first time.
18. Expresszo provides the service and products they promised to their guests.
19. Expresszo insists to improve their mistakes right away.
20. Employees of Expresszo are always willing to help you.
21. Employees of Expresszo are never too busy to respond to your request.
22. The behavior of Expresszo’s employees makes you feel at ease.
23. You feel safe in consuming the food and drinks at Expresszo.
24. Employees of Expresszo are consistently friendly and attentive with
you.
25. Employees of Expresszo have the knowledge to answer your questions
about their products.
26. Employees of Expresszo have time to give you individual attention.
27. Expresszo’s opening hours are convenient to you.
28. Expresszo has your best interest in heart.
29. Expresszo welcomes extra wishes for products.
If you like to give explanation to your assessment or leave a comment, please note it here:
3. Please rank the reasons why you selected Expresszo whereby 1 is the most accurate and 7 the least one.
____Appearance ____Lunch options ____Coffee
____Cakes ____Service ____Employees ____Other:
4. What is the main time when you visit Expresszo?
o College/School break o Work break
o Leisure time
5. What is the main reason you drink coffee at Expresszo? Please rank following reasons whereby 1 means the most important reason and 6 is the least important one.
____Taste ____Energy ____Relaxation ____Socializing ____Concentration ____Other:
6. What feelings/emotions are you associating with coffee at Expresszo the most?
Please rank the 3 most accurate feelings for you whereby 1 is the most accurate one.
____Feeling comfy/Warmness ____Pleasure/Enjoyment ____Relaxation/Rest ____Boosting/Empowering ____Focused mental state
____Feeling of togetherness/interconnection ____Other:
7. How regularly do you visit Expresszo?
o It is my first time.
o Every day o Every week o Every month o Every holidays o Every year
8. Would you recommend Expresszo to friends and family?
o Yes o No
9. Did you recommend Expresszo to somebody in the past?
o Yes o No
10. Did you tag, share or follow Expresszo on Facebook, Twitter or other social
media platforms?
o Yes o No
11. Have you ever taken friends/family/co-‐workers to visit Expresszo?
o Yes o No
12. Please read the stated scenarios and answer the following questions by imagining yourself being involved in these experiences.
Event 1 Thriller night: A writer/talented reader will read out of an interesting book.
Event 2 Create your own Latte Heart! Guests can learn to make latte art.
Event 3 Slam poetry evening: Guests can present their best poems and compete with
each other.
Event 4 Board Game Night: Guests can compete in playing one of the games such as
Chess, Checkers, Scrabble, Labyrinth, Chutes and Ladders, Backgammon, Connect Four etc.
Event 5 Coffee learning & tasting! Guests will learn about different roast techniques,
types of beans, and preparation as well as taste coffees prepared with different beans.
Event 6 For one day Expresszo turns the shop into a miniature art gallery of local artists.
13. Please select 3 events you would like to participate the most in:
1. Event ____
2. Event ____
3. Event ____
14. Could you explain the reason you have chosen these events?
15. How often would you like to participate in your chosen events?
o Only once o Weekly o Monthly o Yearly
15. Do you like the idea to participate actively in an event?
o Yes o No
16. Do you have any other ideas for creating an event that you would like to share with us?
Last but not least J
Gender:
o Female o Male Your Age:
Your occupation:
Thank you very much for your participation! I wish you a nice day! Nadja Poterjaev