Analyzing Customer Satisfaction Level: Basis for Improving

Customer Service in Keopi @38 Glamang Branch

A Research Paper Presented to the Faculty of

Senior High School

In Partial Fulfillment of the Requirements

Of Senior High School Program

Submitted by:
Bulabon, Niel V.
Burlasa, Mariel B.
Dadula, Nicole Andrea C.
Daquiado, Angel Griece S.
Longakit, Cyndy A.
Natividad, Ma. Faithe Leandre A.
 April 2024
Chapter I

The Problem and Its Setting

Introduction

Coffee is a has a special place in many cultures around the world. Based on market

research company, they conducted a survey and gathered fascinating coffee statistics from

1,300+ people in the U.S. in January 2024. Nearly 3 in 4 Americans drink coffee every day

(73%) and 36% of people drink 3 to 5 cups of coffee a day.

In addition, Yogyakarta offers customers for the coffee industry because it is a

cultural, educational, and touristic city. Since more people are purchasing coffee, coffee shops

are expanding along with the population, which has given rise to opportunities for new

companies. Every kind of store has its own customers; they include stores that sell only

coffee and other beverages, stores that sell coffee and snacks, and restaurants that sell coffee,

snacks, and the main course of the menu. The growing number of coffee shops creates issues

because the competition is becoming more intense. As such, coffee businesses employ a

variety of business methods to entice customers. Customers also include a variety of

demographics, the most common of which are tourists and students (Riswara et al.,2021).

As well as that, coffee has become an integral part of the Philippines’ culture and

economy. In recent years, the consumption of coffee in the country has increased. While the

consumption of coffee has shown an upward trend over the last few years, the production

value of the commodity in the Philippines has dipped to approximately 3.37 billion Philippine

pesos in 2022, according to Statista Research Department. Filipinos are now considered

heavy coffee drinkers, with 80% of them consuming an average of 2.5 cups of coffee per day,

as reported by Laurico, et al (2021). In addition according to Jimenez (2023) 93% of

households in the Philippines purchased coffee every week. Despite this fact, the Philippines

is not one of the leading coffee-producing countries in the world. In 2023, it ranked 24th in

terms of coffee production, falling behind countries such as Indonesia, Vietnam, and Brazil.

Moreover, innovation in the food sector has led to significant changes in people’s

lifestyles. Maginhawa Street, known for its restaurants and cafes, is witnessing an increase in

coffee shops and cafe chains. Filipinos of Quezon City of all ages adapt to this modern

lifestyle, seeking holistic experiences in cafes with comfortable atmospheres, a place to

refresh with friends or family. These coffee shops provide trendy beverages and food options,

contributing to the society’s style and offering good value. The welcoming atmosphere

encourages repeat visits (Abidog et al., 2016).

The purpose of the research study is to comprehensively evaluate the level of

customer satisfaction with the services provided at Keopi@38 Glamang Branch. By gathering

and analyzing the data, the study aims to identify areas for improvement in customer service

leading to enhanced customer satisfaction and a better overall experience for patrons at

Keopi@38 Glamang Branch. This information will be valuable for the management team to

make data-driven decisions and implement strategies that cater to the needs and preferences

of their customers and fostering a positive business environment.

Statement of the Problem

This study aims to analyze the level of customer satisfaction at Keopi @38 Glamang

Branch in basis for improving their customers service. This study will seek answers to the

following questions:

1. What is the demographic profile of the respondents in terms of;

1.1 age

1.2 gender, and

 1.3 grade level

2. What is the customer satisfaction level in Keopi @ 38 Glamang Branch?

3. What is the most effective strategies to retain customers?

Conceptual Framework

The major concept of this study is focused Analyzing Customer Satisfaction Level:

Basis for Improving Customer Service in Keopi @ 38 Glamang Branch.

Independent Variable Dependent Variable

Improving Customer Service in

Customer Satisfaction Level
Keopi @ 38 Glamang Branch

Figure 1. Conceptual Framework of the Study

Customer satisfaction level serves as the independent variable in this research, which

essentially means it is the factor that is being manipulated or influenced to observe its effect

on the dependent variable. In the context of this study, customer satisfaction level refers to

the overall satisfaction experienced by customers at the Keopi@38 Glamang branch. This

satisfaction can be influenced by various aspects, such as the quality of the products or

services offered, the friendliness and efficiency of the staff, the cleanliness, and the overall

ambiance of the branch. By examining the customer satisfaction level, we aim to understand

how it is linked to the improvement of customer service at the branch.

 The dependent variable in this research is the improvement of customer service at the

Keopi@38 Glamang branch. This variable is the outcome that is expected to change or be

affected by the manipulation of the independent variable, which in this case is the customer

satisfaction level. By focusing on improving customer service, the study aims to enhance the

overall experience of customers visiting the branch. This improvement will be achieved

through various strategies, such as staff training, implementing new policies, upgrading

facilities, and gathering customer feedback. The relationship between the independent

variable (customer satisfaction level) and the dependent variable (improving customer

service) will be analyzed to determine how changes in customer satisfaction directly or

indirectly impact the quality of service provided at the Keopi@38 Glamang branch.

Scope and Delimitation

This study focuses on assessing the Customer Satisfaction Level of students from

Nicolas B. Barreras National High School who are regular customers of the Keopi@38

Glamang Branch. The study aims to gather insights into their experiences regarding the

services provided by Keopi@38 Glamang Branch. By understanding their satisfaction levels,

the Keopi@38 Glamang Branch can identify areas for improvement in their customer service,

leading to enhanced customer satisfaction and a better overall experience for the students.

The research will be limited to the customers from junior to senior high school and will not

encompass the entire customer base of Keopi@38 Glamang Branch. This targeted approach

will provide valuable information for the Glamang Branch to patronize their services and

strategies to better cater to the needs and preferences of their key customer segment.

Significance of the Study

This study is beneficial to the following:

The Keopi @38 will have an idea on how to improve their customer service to maintain their

customers.

The Customer it will help them to still patronizing the Keopi@38

The future researchers it will be able to help them and will serve as their guide to any related

future study.

The future coffee vendor they will have an idea what should do to have a loyal and satisfied

customers.

Definition of Terms

The following are defined conceptually and operationally:

Customer conceptually, a person or a purchaser of goods or services. (Oxford Dictionary).

Operationally, refers to the person accustomed to buy something.

Satisfaction level conceptually, defined as the extent to which a customer experience a

product or service exceeds their satisfaction goals. (Typeset.io) Operationally, refers to the

feeling of pleasure that someone experience when their expectations are met.

Customer service conceptually, is about serving the needs of customers. (Blog.hubspot)

Operationally, is the support you offer your customers.

 Chapter II

Review of Related Literature

In present times, the coffee shop industry has witnessed remarkable growth and

widespread appeal. As coffee consumption culture has expanded, and the demand for coffee

has increased, coffee shops have emerged as a vital component of urban settings. (Dahlan, et

al., 2023)

Customer Satisfaction

Oliver (2014) emphasizes that customer satisfaction is derived from exceptional

customer experiences. Both marketing mix and customer experience are crucial factors in

achieving high levels of satisfaction. To foster customer loyalty, companies should focus on

these fundamental elements. Satisfaction is an evaluation of the interaction with a service

provider up until the present time and is used by customers to predict future experiences

(Rahmani, Firoozbakht, & Taghipoor, 2014). Furthermore, Amissah (2013), Yulisetiarini and

Si (2016), and Amissah (2013) identified key indicators of customer satisfaction, which

include reliability, responsiveness, assurance, empathy, and tangibles.

Customer Expectation

According to Nabi (2012), customer expectations involve the various beliefs

customers hold regarding the company, which serve as a standard for evaluation. Oliver
(2014) highlights that these expectations are shaped by diverse, uncontrollable factors.

Bowie, et al (2016) further explain that customer expectations consist of intricate

considerations, including pre-purchase beliefs and the opinions of other customers (Ariyanti

& Rafiah, 2017; Gaschler, et al., 2012). Esangbedo (2014) and Toporek (2013) add that

customers anticipate specific outcomes when experiencing novel situations. When companies

successfully meet customer expectations, they will undoubtedly achieve customer loyalty and

satisfaction.

Customer Experience

Improving customer experience is crucial for businesses today. Key factors to

consider when measuring customer experience include ease, novelty, learning, comfort,

personalization, relaxation, and involvement (Deshwal & Khanna, 2013). According to

Vanharanta, Kantola, and Seikola (2015), leading international companies now focus on

strong customer experiences. Rocco (2016) also highlights this trend. De Luca and Pegan

(2014) emphasize understanding customers' personalities to provide tailored experiences,

which can strengthen the relationship between companies and their customers.

Marketing Mix

According to Chiang (2013) and Kumar (2015), companies adapt their marketing

strategies based on market expectations. To succeed internationally, businesses must

understand various marketing aspects for customer loyalty (Clarke et al., 2013; Wichailert &

Yousapornpaiboon, 2017). Ingram (2017) notes that marketing a coffee shop requires unique

strategies for success. Al-Debi and Mustafa (2014) and Umeze, Ohen, et al. (2015) emphasize

that the marketing mix, which includes product, price, place, promotion, people, process, and

physical evidence, is crucial for customer satisfaction and loyalty.

The Strategy of Increasing Customer Satisfaction of Coffee Shop in Yogyakarta through

GAP Analysis

Yogyakarta, a city known for tourism and education, primarily consists of a young

population who are potential coffee consumers. To cater to these customers and ensure their

satisfaction, it is crucial to provide quality service. The research conducted in this context

focuses on a five-dimensional service quality approach to enhance customer satisfaction. The

study highlights that essential factors like efficient first and next service, a pleasant room

atmosphere (not too noisy), friendly and helpful staff, and patient employees in handling

customer complaints contribute to average expectation and performance levels. However,

there are two significant issues that need attention: maintaining the right cold room

atmosphere and ensuring cleanliness. (Purwadi et al., 2021)

Satisfaction of Customers at Coffee Shops

In addition, according to the study of Tomyachati, K. (2012) it focused on customer

satisfaction with coffee shops in gas stations within Bangkok. He examined their contentment

using the Marketing Mix strategy (the four P's: product, price, place, and promotion). The

study highlighted significant customer traits, revealing that most participants were male,

company employees aged 26-35. They frequently visited these coffee shops, more than three

times a week, primarily to buy coffee. Notably, their revisit rate was 97.38%. The findings

indicated that customers were "very satisfied" with the coffee shops in gas stations based on

the four P's Marketing Mix aspects, namely price, place, product, and promotion.

Attributes of Coffee Shop as Antecedent of Customer Satisfaction

 In a study by Darussalam (2020) on the Indonesian coffee shop industry, four

attributes were found to significantly impact customer satisfaction: coffee quality, store

atmosphere, price fairness, and employee attitude. These findings support previous research

and suggest that coffee shops should focus on these aspects to improve their competitiveness.

Coffee quality had the most significant impact on customer satisfaction, followed by store

atmosphere. Providing a comfortable and relaxing atmosphere can also enhance satisfaction.

Lastly, offering fair prices is crucial for customer satisfaction in the Indonesian coffee shop

market.

In addition, Limna et al. (2023) states that the study's goal is to clarify the antecedent

characteristics of patron loyalty and pleasure in Krabi, Thailand's coffee shop industry. The

four essential components of product, pricing, place, and promotion are known as the

marketing mix method (4Ps). It is beneficial to marketers and owners of coffee shops alike,

as it offers insightful guidance on creating strategies that effectively address the primary

drivers of customer happiness and loyalty, as well as to other industries. Better business

performance and results could result from putting these methods into practice.

Effects of Coffee Shops' Food Quality, Service Quality and Ambience Quality on

Customer Satisfaction and Loyalty in Batman, Turkey

In Batman, Turkey, a study of Duman(2023) Customer satisfaction covers both

tangible and intangible elements of product offerings. In these product offerings, perceived

service quality and value are found to be significant in customer satisfaction in service firms

e.g. coffee shops, restaurants and hotels as being service providers. According to the results

of the study of Prasetyo et al., (2023) the quality of the service and the facilities provided

have a positive impact on customer satisfaction both partially and simultaneously. Good
service is a special consideration before deciding to visit, as are good and complete facilities

that affect interest in visiting. The better the coffee shop's service and facilities are, the better

the consumer's assessment of the place visited will be, which will increase consumer

satisfaction.

Determining the Role of Customer Satisfaction in Gaining Customer Loyalty among

Cafés

In Tagbilaran, Bohol, Philippines, a study by Abrau, et al. (2020) reveals that

customers play a significant role in business success and customer satisfaction. The findings

indicate that participants were highly satisfied with the product, price, location, and service

quality, while moderately satisfied with promotions. Most café customers, at 69%, were

between 18-25 years old which ranked the highest with 63.80% of that was female. These

customers were generally pleased with the diverse coffee offerings, bakery, and snacks; the

fixed pricing based on quality and quantity; the clean, well-decorated coffee shop with a

welcoming atmosphere; and the eagerness to assist and prompt service provided to them.

A path analysis of customer loyalty of homegrown coffee shops in Davao Region

The research gathered information from local coffee shops in Davao Region,

Philippines. The goal was to explore the connections between the marketing mix, customer

expectations, customer experiences, and customer satisfaction in relation to customer loyalty.

The results showed that customers perceived all these factors, including marketing mix,

customer expectations, customer experiences, customer satisfaction, and customer loyalty, as

high. This signifies a strong customer satisfaction and loyalty towards homegrown coffee

shops in Davao Region. Furthermore, the study found that marketing mix, customer

expectations, customer experiences, and customer satisfaction have a significant impact on

customer loyalty. Consequently, any changes in these aspects will directly influence customer

loyalty (Hinlayagan, 2018).

Perceived Service Quality and its Relationship with Customer Satisfaction in Coffee

Shops

In the research conducted by Crisologo, et al., (2022) they examined customer

satisfaction and service quality in coffee shops located in Imus City, Cavite. Their study

analyzed the demographic profiles of respondents to determine if factors like age, gender,

civil status, employment, and education significantly impacted their perception of service

quality. The findings revealed that individuals aged 49 and above, as well as those with

college or postgraduate degrees, had notable differences in perceiving service quality. The

respondents generally considered the chosen coffee shops’ responsiveness, assurance,

empathy, and reliability as having high levels of service quality, while they perceived the

tangibility aspect as being at a very high level.

Effects of Experiential Quality on Experiential Loyalty: Evidence from Starbucks

Coffee Chains in Pampanga, Philippines

In the Philippines, specifically in Pampanga, Lacap & Sicat (2022). They focused on

how the quality of experiences affects customer loyalty at Starbucks coffee shops. They

discovered that perceived value plays a significant role in three aspects: enhancing

satisfaction, building trust, and increasing loyalty. Among these, the impact of trust on loyalty

was the strongest, followed by the effect of satisfaction and perceived value on loyalty. The

study also revealed that both satisfaction and trust act as intermediaries in the relationship

between overall experience quality and loyalty. However, satisfaction has a more powerful

mediating effect compared to trust.

 Chapter III

Methodology

In this chapter, the researchers will discuss the question of how the problem will be

investigated. This will include the research design, research locale, research participants,

research instruments, data gathering procedures, ethical considerations, and statistical

treatment of data.

Restatement of the Problem

The study aims to identify the demographic profile of respondents concerning age,

gender, and grade level, determine the customer satisfaction level at Keopi @ 38 Glamang

Branch, and explore the most effective strategies to retain customers.

Research Design

This study is a quantitative descriptive non-experimental research design in order to

faithfully represent a population that will be selected based on a particular trait. For the

purpose on how satisfied the student-customers from Nicolas B. Barreras National High

School in the services offered by Keopi@38 Glamang Branch. Additionally, it tried to learn

more about the customer service that might improve in Keopi@38 Glamang Branch based on

what is the level of satisfaction of the student-customers .

Research Locale

This study will be conducted at Nicolas B. Barreras National High School found at

Brgy. Glamang. It is a foundation that provides assistance to the Municipality at Polomolok

in the South Cotabato Province. Junior High Level basic education is also available. The

school also comprises senior high school and provides three tracks: Technical Vocational

Livelihood (TVL), Humanities and Social Science (HUMSS), and Accountancy and Business

Management (ABM).

Respondents of the Study

In the research study aim at analyzing customer satisfaction level to improve customer

service at the Keopi@38 Glamang Branch, the respondents would be the students from

Nicolas B. Barreras National High School who are regular customers and have visited

Keopi@38 Glamang Branch. The study would involve collecting feedback, opinions, and

experiences from these customers to understand their satisfaction levels and identify areas for

the improvement in the service provided.

Sampling Procedure
 To analyze customer satisfaction levels at Keopi @38 and the basis for improving

customer experience, this study will be conducted through a purposive sampling method. The

method of purposive sampling is used by researchers to select the best samples for research

purposes based on their expertise. To ensure sufficient statistical power for the study, the

sample size shall be determined using a power analysis. The purpose, procedures, and risks of

the research study shall be communicated to the selected participants. Moreover, throughout

the study, the confidentiality and privacy rights of participants will be respected.

Research Instruments

The research study will employ a survey as the primary research instrument to collect

data from students from Nicolas B. Barreras National High School who are regular customers

of Keopi@38 Glamang Branch. This survey will be designed to gather information on

various aspects of customer satisfaction. The survey questions will be crafted in a manner that

is easy to understand and complete, ensuring that the responses accurately reflect the

customers’ experiences. By using this method, the research study aims to gather valuable

insights that will help improve customer service in Keopi@38 Glamang Branch and enhance

the satisfaction levels of its customers.

Data Gathering Procedure

To facilitate the collection of data, the following steps will be taken:

1. The researchers will ask their research advisor for assistance in filing the permit to the

principal’s office of the school to request authorization to interview the students as the

regular customers of Keopi@38 Glamang Branch.

2. The student- customers are requested in a letter of agreement from the researchers to

took part in the survey by responding to the questions.

 3. The information that will be taken from the survey will be collated, encoded, and put

via statistical tools.

4. The results, interpretations, and suggestions will be presented.

Ethical Consideration

In the study, the researcher want to be accurate and avoid making mistakes, and the

information will be gathered are not fabricated or misrepresented. Respondents are informed

of the study’s goal in order to guarantee that the researcher will only use the information

obtained for academic reasons and in the strictest of confidence to promote evidence-based

research. Also included, is a letter of consent from Nicolas B. Barreras National High

School’s Selected Vendors asking for permission to use them as study respondents. The

researchers are also confirmed that plagiarism is avoided, that this paper is original, and all

references to sources will use correctly. No one’s personal interests are influence by this

investigation.

Statistical Treatment of Data

The researcher will utilize a percentage and a weighted mean in the statistical formula
that will be use to appropriately evaluate and interpret the data that will be gathered. The
following terms will be defined using these methods:

Percentage Formula:

f
%= x100
n

f = frequency count

n = number of respondents
 In the analysis of customer satisfaction level of student-customers from Nicolas B.
Barreras National High School, the weighted mean will be used to answer the questions in the
problem.

Weighted Mean Formula:

WM =
∑ Fx
N

∑Fx = frequencies to the given

N = number of respondents

In analyzing the customer satisfaction level of the student-customers, the Likert Scale

will be use. It will use a five-point scale, each point corresponding to a Likert item.

Point Scale Verbal

Interpretation

5 4.21 – 5.00 Always

4 3.41 – 4.20 Often

3 2.61 – 3.40 Sometimes

2 1.81 – 2.60 Seldom

1 1.00 & 1.80 Never