Inter-Observer Agreement

Inter-Observer Agreement

Introduction

Starbucks started operations in 1971 and is both a specialist freshly ground coffee retailer and a coffee shop operator. It sells coffee, pastries, coffee accessories and, recently, breakfasts and sandwiches. The company was publicly listed in 1992. At the end of fiscal 2011, total company stores numbered 17,003, compared with 16,858 in 2010. The total number of US stores fell from 11,131 in 2010 to 10,787 in 2011, while the number of international stores grew from 5,727 to 6,216 (IBIS World, 2012). The company may also increase its market share by greatly expanding its stake in the single-serve coffee market, either by purchasing a stake in Green Mountain Coffee Roasters, Inc. or by producing its own product to compete with Keurig (IBIS World, 2012). Increasing disposable income is expected to boost coffee consumption on-premises as people relax their budgets. Higher coffee consumption has a positive effect on industry revenue.

Consumers educated themselves more about coffee beans and traded up in quality over the five years to 2011. Numerous research studies have revealed an array of health benefits from coffee. A 2008 National Coffee Association survey (most recent data available) revealed that 17.0% of the adult population consumed a gourmet beverage on a daily basis, particularly those in the 25-to-29 age group (IBIS World, 2012). Although this growth stalled during the recession, it picked back up as of 2010.

Research Question

This research explores the purchase decision and choices of customers in the Starbucks Coffee restaurants. This research will provide valuable insight to the Starbucks coffee regarding management of payment structure at the café across the country. Understanding consumer preferences for payment structure of the company will not enable the company to benefit by improving its service quality, but also taking steps to cut down its expenses from activities that have low value for customers (Creswell, 2009).

Introduction to the Observational System

The subjects of this study were the customers of the Starbucks Coffee. Customers were observed for their behavior whether they take cash receipt or not at the time of payment. Data was collected from the Starbucks coffee centre in three observational sessions of 30-40 minutes each on three random days. Data was recorded from the Cash Register desk.

Method for Data Collection

Data was collected using observational method from the Starbucks coffee restaurant. At predetermined time, observer reported whether customers are willing to take the receipt of payment or they do ...