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Analysis of Factors Affecting Customer Loyalty to Starbucks
- 1 Mechanical Engineering, Zhejiang Sci-tech University, Hangzhou, China
- 2 College of Letter and Science, University of California Santa Barbara, Santa Barbara, USA
- 3 Guangzhou Foreign Languages School, Guangzhou, China
* Author to whom correspondence should be addressed.
Abstract
This article focuses on the key factors influencing customer loyalty within Starbucks' coffee brand business. To comprehend which factors have the greatest impact on coffee purchasing behavior, we employed various statistical methods and modeling techniques, including logistic regression and hypothesis testing, utilizing the R programming language. Our results reveal that Starbucks customers' price evaluations and spending patterns significantly influence their behavior. We also found that customers perceive the prices as somewhat expensive, and spending less than 20RM per purchase is the most crucial factor in fostering loyalty. We subsequently formulated these factors into a binary logistic regression equation to establish their relationship with loyalty, which is statistically reliable. Moreover, we conducted a series of analyses to identify potential causes. It is estimated that customers who spend between RM 20 and RM 40 may find the product reasonably priced and may develop brand loyalty or even a coffee addiction. Finally, we propose a series of solutions to address these findings.
Keywords
Starbucks, Customer Loyalty, Spending Patterns
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Cite this article
Hou,Y.;Zhu,T.;Zhang,X. (2024). Analysis of Factors Affecting Customer Loyalty to Starbucks. Advances in Economics, Management and Political Sciences,92,75-82.
Data availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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Volume title: Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
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