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Marketing Strategies of Successful Coee Shop
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Abi Adeleke
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Walden University
College of Management and Technology
This is to certify that the doctoral study by
Abi Adeleke
has been found to be complete and satisfactory in all respects,
and that any and all revisions required by
the review committee have been made.
Review Committee
Dr. Warren Lesser, Committee Chairperson, Doctor of Business Administration Faculty
Dr. Timothy Malone, Committee Member, Doctor of Business Administration Faculty
Dr. Jill Murray, University Reviewer, Doctor of Business Administration Faculty
Chief Academic Officer
Eric Riedel, Ph.D.
Walden University
2019
Abstract
Marketing Strategies of Successful Coffee Shop Owners
by
Abi Adeleke
MPA, Indiana University Northwest, 2001
MA, University of Ibadan, Nigeria, 1988
BA, University of Ilorin, Nigeria, 1986
Doctoral Study Submitted in Partial Fulfillment
of the Requirements for the Degree of
Doctor of Business Administration
Walden University
June 2019
Abstract
Failure is an issue with small businesses globally; some owners of small businesses lack
the knowledge of business administration and marketing strategies necessary to help
ensure success. The purpose of this multiple case study was to explore what marketing
strategies some coffee shop owners use to sustain business operations during the first 5
years of operation. The targeted population consisted of 5 coffee shop owners in
Arkansas who successfully implemented marketing strategies to sustain business
operations during the first 5 years of operation. Goldsmith’s 8Ps of marketing mix was
the conceptual framework used in the study. Data were collected from semistructured
interviews and a review of publicly available data and company websites. Data were
analyzed using the principles of the content analysis method, which included identifying
codes and themes. Findings indicated owners of successful coffee shops were actively
engaged in the day-to-day business operations and in the community; provided premium
products; used social media for marketing, promotion, and branding; used competitive
pricing; were precise about the location; provided exceptional customer service and
personalization, and had points of marketing differentiation to promote their brand. The
implications of this study for positive social change include the potential to support the
welfare of the citizens of Arkansas, and owners of coffee shops across the United States
that could provide independent coffee shop owners with marketing strategies necessary to
sustain business operations, contribute to new job creation and regional economic
sustainability.
Marketing Strategies of Successful Coffee Shop Owners
by
Abi Adeleke
MPA, Indiana University Northwest, 2001
MA, University of Ibadan, Nigeria, 1988
BA, University of Ilorin, Nigeria, 1986
Doctoral Study Submitted in Partial Fulfillment
of the Requirements for the Degree of
Doctor of Business Administration
Walden University
June 2019
Dedication
I want to dedicate this study to my children, Michael, Victor, and Abigail. Thank
you for the times you have had to wait for Mom. I would also like to dedicate this study
to all SMEs and especially, women entrepreneurs on the continent of Africa! Finally, I
would like to dedicate this study to my mother and father; you always said I could. I
know both of you are up there with God saying, "That is our daughter!" God deserves all
the praise for the fulfillment of Jeremiah 29:11.
Acknowledgments
To Dr. Warren Lesser, I am thankful our paths crossed. I could not have asked for
a better chairperson. I want to give special thanks to him for his steadfast support and
feedback during this journey. I never doubted he had good intentions for me to graduate.
I want to thank my second committee member, Dr. Tim Malone for his great insight and
input during the oral defense. I want to thank my URR, Dr. Jill Murray for her valuable
contribution to my study. I could not have completed my DBA without the help of the
committee. I want to thank the DBA Program Director, Dr. Susan Davis for the support
and guidance during my DBA journey here at Walden University. I want to thank
everyone who gave a listening ear or a word of encouragement. My parents, especially
my dad, encouraged me to complete this journey and was the reason I continued after he
passed away during my DBA program. To my children, I say thank you! To the
participants in my study, I want to thank them for sharing their successful marketing
strategies. We have come this far by faith (II Corinthians 5:7).
i
Table of Contents
List of Tables.................................................................................................................. iv
List of Figures ................................................................................................................. v
Section 1: Foundation of the Study .................................................................................. 1
Background of the Problem........................................................................................ 1
Problem Statement ..................................................................................................... 2
Purpose Statement ..................................................................................................... 2
Nature of the Study .................................................................................................... 3
Research Question ..................................................................................................... 4
Interview Questions ................................................................................................... 4
Conceptual Framework .............................................................................................. 6
Operational Definitions .............................................................................................. 7
Assumptions, Limitations, and Delimitations ............................................................. 8
Assumptions ........................................................................................................8
Limitations ...........................................................................................................8
Delimitations .......................................................................................................9
Significance of the Study ......................................................................................... 10
Contribution to Business Practice ....................................................................... 10
Implications for Social Change .......................................................................... 11
A Review of the Professional and Academic Literature ............................................ 11
Transition ................................................................................................................ 33
Section 2: The Project .................................................................................................... 35
ii
Purpose Statement ................................................................................................... 35
Role of the Researcher ............................................................................................. 35
Participants .............................................................................................................. 37
Research Method and Design ................................................................................... 38
Research Method ............................................................................................... 39
Research Design ................................................................................................ 40
Population and Sampling ......................................................................................... 42
Ethical Research ...................................................................................................... 43
Data Collection Instruments ..................................................................................... 45
Data Collection Technique ....................................................................................... 47
Data Organization Techniques ................................................................................. 48
Data Analysis .......................................................................................................... 49
Reliability and Validity ............................................................................................ 51
Reliability .......................................................................................................... 51
Validity .............................................................................................................. 52
Transition and Summary .......................................................................................... 54
Section 3: Application to Professional Practice and Implications for Change ................. 55
Introduction ............................................................................................................. 55
Presentation of the Findings ..................................................................................... 55
Applications to Professional Practice ....................................................................... 78
Implications for Social Change ................................................................................ 80
Recommendations for Action ................................................................................... 80
iii
Recommendations for Further Research ................................................................... 82
Reflections ............................................................................................................... 84
Conclusion ............................................................................................................... 84
References ..................................................................................................................... 87
Appendix: Interview Protocol ...................................................................................... 112
iv
List of Tables
Table 1- Sources of Data for the Review of Academic Literature ................................... 12
Table 2 - Personal Demographics .................................................................................. 56
Table 3 - Business Operations........................................................................................ 58
Table 4 - Community Involvement and Engagement ...................................................... 60
Table 5 - Premium Products........................................................................................... 62
Table 6 - Use of Social Media for Marketing, Promotion, and Branding ........................ 64
Table 7 - Competitive Pricing Strategy .......................................................................... 66
Table 8 - Location ......................................................................................................... 69
Table 9 - Customer Service and Personalization ............................................................ 70
Table 10 - Points of Marketing Differentiation ............................................................... 72
Table 11- Mapping Interview Questions to the Conceptual Framework ......................... 74
v
List of Figures
Figure 1. 8Ps of Marketing Mix for Local Coffee Shops ................................................ 79
1
Section 1: Foundation of the Study
Background of the Problem
Failure is an issue with small businesses globally (Hyder & Lussier, 2016).
Business failure is the termination of participation in an undertaking because it has not
met a minimum threshold for economic survival envisaged by the business owner (Fang
He, Sirén, Singh, Solomon, & von Krogh, 2018; Hsu, Wiklund, & Cotton, 2017). Some
small business owners lack knowledge of business administration including marketing
strategies and technology to survive in small business (Alford & Page, 2015; Lotfizadeh
& Shamsi, 2015; Nguyen, Newby, & Macaulay, 2015). The purpose of this study is to
provide coffee shop owners with marketing strategies to sustain business operations
during the first 5 years of operation. Understanding how to market the coffee shop
business effectively can increase the ability of coffee shops to survive during the first 5
years of operation.
Business survival is an issue with small businesses. In the second quarter of 2015,
234,000 businesses started up; in the same period, 213,000 businesses faced demise in the
United States (Small Business Administration [SBA] Office of Advocacy, 2017a). In the
state of Arkansas, there were 6,437 establishments with less than 100 employees (United
States [U.S.] Census Bureau, 2016). Coffee shops (on-premise brewing) belong to the
same North American Industry Classification System (NAICS) description code
(722515) as snacks and nonalcoholic beverages bars (U.S. Census Bureau, 2017). In the
second quarter of 2015, 1,893 businesses started up, and in the same period, 1,765
businesses faced demise in the state of Arkansas (SBA Office of Advocacy, 2017b).
2
There is no documentation from government agencies unique to the closure of coffee
shops. However, Starbucks, the largest coffee shop company, has closed 443 stores
throughout the company history: 240 stores in 2009, 42 in 2010, and 161 in 2011
(Knoema, 2016). Scholars have asked whether a marketing plan incorporating an element
of personal branding, perseverance, practice, and coproduction, may assist owner-
managers in surviving in small businesses (Resnick, Cheng, Simpson, & Lourenço,
2016).
Problem Statement
Coffee shop owners find it increasingly difficult to remain in business because of
intense competition and the vagaries of customer preferences (Muhammad & Lee, 2015).
Only 54% of small businesses, including coffee shops, opened in the United States in
2012, managed to remain in business longer than 5 years (Bureau of Labor and Statistics
[BLS], 2016). The general business problem is that some small businesses owners are
unable to survive during the first 5 years of operation. The specific business problem is
that some coffee shop owners lack the marketing strategies to sustain business operations
during the first 5 years of operation.
Purpose Statement
The purpose of this qualitative multiple case study was to explore what marketing
strategies some coffee shop owners use to sustain business operations during the first 5
years of operation. The targeted population consisted of five coffee shop owners in
northwest Arkansas who successfully implemented marketing strategies to sustain
business operations during the first 5 years of operation. Positive social change may
3
result in a reduction in the number of coffee shop failures, thus improving employees’
worth and dignity, and reducing the unemployment rates, which can result in building
stronger communities through gainful employment.
Nature of the Study
I selected the qualitative research method so I can more deeply explore and
understand the thought processes of my study subjects. Qualitative researchers use open-
ended questions to explore the participants’ experiences within their natural setting
(Harrison, Birks, Franklin, & Mills, 2017). In contrast, quantitative researchers use
closed-ended questions to examine relationships between or among variables through
testing null hypotheses (Zhou, Wang, Zhang, & Guo, 2017). Mixed-method researchers
combine both qualitative and quantitative methods in a single study (Johnson, 2015;
Shekhar, Prince, Finelli, Demonbrun, & Waters, 2018; Venkatesh, Brown, & Sullivan,
2016). However, for my study, I decided not to use the quantitative method since I was
not testing any hypotheses. Also, Yin (2017) noted that qualitative researchers could use
multiple data sources to support findings and this feature is consistent with my plan to
use data from interviews, observations, and any written materials my study’s participants
provide.
Several research study designs are accessible to the qualitative researcher, which
include (a) ethnography, (b) phenomenology, (c) narrative, and (d) case study (Marshall
& Rossman, 2016; Yin, 2017). Ethnographic researchers explore group cultures through
observations and interviews (Letourneau, 2015). The ethnographic design was not
appropriate for this study because I was not investigating group cultures.
4
Phenomenological researchers describe participants’ perspectives and interpretation of
experiencing a phenomenon (VanScoy & Evenstad, 2015; Yüksel & Yildirim, 2015). The
phenomenological design was not appropriate for this study because I was not exploring
the primary meanings of experiencing a phenomenon through the personal perspectives
of individuals. Narrative researchers focus on the life stories and experiences of
individuals presented through their own stories (Yin, 2017). The narrative design was not
appropriate for this study because I was not seeking to explore the life stories of the
business owners who participate in the study. Multiple case study researchers are
interested in an in-depth exploration of a problem or issue in the natural setting and real-
world context of the participants to understand and report on the similarities (and
differences) among cases (Park & Park, 2016; Yin). I explored successful marketing
strategies that coffee shop owners have used to sustain business operations during the
first 5 years of operation. Thus, I chose a multiple case study design for my doctoral
study.
Research Question
What marketing strategies do some coffee shop owners use to sustain business
operations during the first 5 years of operation?
Interview Questions
The interview questions I asked the owners of coffee shops were the following:
1.
What marketing strategies have you used to sustain business operations during the
first 5 years of operation?
5
2.
What were the key challenges you had in implementing your marketing strategies
during the first 5 years of operation?
3.
How did you address the key challenges to your marketing strategies during the
first 5 years of operations?
4.
What marketing strategies helped you to increase your customer base during the
first 5 years of operation?
5.
How did you establish your pricing strategy compared to the pricing of your
competitors during the first 5 years of operation?
6.
How did the physical location of your business contribute to increasing your
customer base during the first 5 years of operation?
7.
What media were most effective at creating more foot traffic into your coffee
shop during the first 5 years of operation?
8.
What were the main points of differentiation that you emphasized in your
promotional messages during the first 5 years of operation?
9.
How did you merchandise your products to be more appealing to customers
during the first 5 years of operation?
10.
What examples of superior service offered by your coffee shop during the first 5
years of operation do you recall?
11.
What additional information can you provide regarding marketing strategies you
used to sustain business operations during the first 5 years?
6
Conceptual Framework
The conceptual framework for this multiple case study was the 8Ps marketing mix
theory. Goldsmith (1999) developed the 8Ps of marketing mix theory. Goldsmith
determined productivity (and quality) or offering a good deal for the customer, could set
a brand apart from its competitors. Goldsmith emphasized the importance of the 8Ps of
the marketing mix to carry marketing theory and practice into an era of competitive
advantage. The crux of Goldsmith’s argument for the 8Ps relevance was the need for
managers to create marketing strategies which featured productivity alongside
McCarthy’s (1960) traditional 4Ps (product, price, promotion, place). Booms and Bitner
(1981) added personnel, physical evidence, and process, to form the 7Ps. Goldsmith
added productivity to the 7Ps to form an innovative marketing mix, the 8Ps. Mukherjee
and Shivani (2016) argued that the traditional marketing mix elements of product, price,
place, and promotion were inadequate in achieving the marketing objectives in services.
Furthermore, Pomering (2017) suggested that small business owners who use the
marketing mix could benefit by successfully adapting to a changing, dynamic
marketplace and achieve competitive advantage.
The coffee shop owners’ use of the 8Ps of marketing mix which includes
productivity could provide a unique positioning and marketing strategy in achieving a
competitive advantage over competitors and sustaining business operations. Therefore,
Goldsmith’s (1999) 8Ps of marketing mix conceptual framework could provide a means
for exploring and understanding the marketing strategies coffee shop owners use to
sustain business operations during the first 5 years of operation.
7
Operational Definitions
Business failure: Business failure occurs when the business owner exits from the
small business sector if the entrepreneurial initiative has fallen short of its (business or
personal) goals. Business failure is also the inability of a business owner to build a
scalable business model (Nair & Blomquist, 2018).
Business success: Business success is the term researchers have used to describe
the state in, which business owners, have achieved entrepreneurial success, through the
resourcefulness of the small business owner. Business success occurs when the business
owner has maintained a customer-focused strategy in addition to the quality/price ratio of
its products and services (Fombrun, Ponzi, & Newburry, 2015).
Marketing strategies: Marketing as a strategy focuses on how businesses compete
in their markets using segmentation, targeting, and positioning (Ahmad & Saber, 2015).
The marketing strategy of a company owner expresses the way the company owner wants
to accomplish the company’s goals (Marek, 2014).
Small business: Small businesses are independent businesses, with one or more
persons, with less than 500 employees (or $7.5 million in average annual sales for many
nonmanufacturing industries (Cater & Young, 2016; U.S. Small Business Association
[SBA], 2018).
Small business owner: The small business owner is the person who shows,
manages, and makes all the necessary management decisions regarding the business with
the primary purpose of furthering personal goals (de Oliveira, Escrivão, Nagano,
Ferraudo, & Rosim, 2015).
8
U.S. Small Business Administration (SBA): A U.S. governmental agency, which
defines what is or is not a small business and provides resources to assist small business
owners including existing companies and start-ups (Anastasia, 2015).
Assumptions, Limitations, and Delimitations
In this subsection, I discussed the various assumptions, limitations, and
delimitations of my research. Researchers agreed that the researcher should outline the
research process and the assumptions, limitations, and delimitations thereof to the reader
(Marshall & Rossman, 2016).
Assumptions
Assumptions are facts the researcher of a study assumes to be true (Marshall &
Rossman, 2016). I made three assumptions in this study. My first assumption was that
coffee shop owners would provide adequate and truthful responses during the interviews.
My second assumption was that the participants would share useful information on their
marketing strategies. My final assumption was that the sample size of 5 coffee shop
owners in the study was adequate for a multiple case study.
Limitations
It is inevitable that researchers deal with some limitations in their studies and the
present study is no exception. Arbussa, Bikfalvi, and Marquès (2017) explained that the
researcher of a study of small-medium enterprises might need to overcome some of the
sized-caused limitations. One of the limitations of my study was the choice of a multiple
case study, which may not represent all information possible from studies with more
9
subjects from the same industry (Yin, 2017). The second limitation of my study was that
the sample size was small and was from only the state of Arkansas.
Successful coffee shop owners might limit the research scope due to my exclusion
of unsuccessful coffee shop owners. An exploratory multiple case study of five small
business owners of coffee shops from Arkansas may not yield enough data to answer the
research question and may not be representative of the population of coffee shop owners
in the United States or other countries. The findings of the study may not apply to small
businesses with over 100 employees. The third limitation of my study may include the
specified area (northwest Arkansas and metropolitan area of Little Rock, Arkansas) for
the study location. I may not be able to generalize the information gathered from this
study to locations with high population densities. The final limitation of my study was
that the interviewees might not be willing to share in-depth marketing strategy
information in an interview setting.
Delimitations
Delimitations are limits purposely presented or placed by the researcher to restrict
the scope of the study (Bloomberg & Volpe, 2018; Snelson, 2016). The first delimitation
was that the study participants were from the coffee shop industry and excluded other
small businesses and services. Other delimitations of this study included the sample size,
population, and the location of Arkansas. I was focused on successful coffee shop owners
because I was interested in the coffee shop industry. I gathered data from the owners
regarding the marketing strategies they used to run successful coffee shops. The final
delimitation was that I only interviewed small business owners who had successfully
10
used marketing strategies to sustain business operations during the first 5 years of
operation.
Significance of the Study
The findings from a qualitative case study may add value to the business
community by documenting how coffee shop owners use marketing strategies to sustain
business operations during the first 5 years of operation. Coffee shop owners may benefit
from study findings in providing awareness on becoming successful. Learning from
successful coffee shop owners may provide insights to help potential coffee shop owners
in adopting a successful marketing strategy during the first 5 years of operation. Finding
the right value proposition to be successful during the first 5 years of operation includes
the consideration of the traditional marketing mix elements of product, price, place, and
promotion as well as the newer elements of participants, physical evidence, and process
(Mukherjee & Shivani, 2016). The knowledge obtained from study outcomes could
benefit potential coffee shop owners through a better understanding of traditional and
more contemporary marketing strategies, which may increase the businesses’
survivability and contribute to beneficial social change.
Contribution to Business Practice
The knowledge gained about the marketing strategies used by coffee owners to
sustain business operations during the first 5 years of operation could provide awareness
of the survivability of other coffee businesses. With effective marketing strategies, coffee
shop owners could better appeal to customers in their marketplace. Other coffee shop
owners can adopt these insights to increase better or sustain sales.
11
Implications for Social Change
The potential social change benefits from the proposed study include sustained
employment of coffee shop employees in Arkansas, which can improve self-worth and
human dignity for employed individuals. Small business coffee shop owners may find
study outcomes so helpful that they hire more employees in Arkansas. Also, increased
business and employment may result in more tax revenues for communities, which can
help local citizens
A Review of the Professional and Academic Literature
The purpose of this section was to provide a review of the past literature that
relates to the present study and to enhance the body of existing research. Booth, Sutton,
and Papaioannou (2016); Maggio, Sewell, and Artino (2016) posited the purpose of a
literature review is to provide, review, critically examine, and synthesize contributions of
earlier researchers. Furthermore, Thakurta, Müller, Ahlemann, and Hoffmann (2017)
stated in conducting a literature review, a researcher might also identify bias, scholarly
gaps, and develop newer insights. Therefore, a crucial part of any research study is the
synthesis of the literature review, which goes beyond just summarizing the literature to
developing a theory (Okoli, 2015).
In this literature review, my primary goal was to understand and describe the
literature about marketing mix relevant to coffee shops. Reviewing relevant literature to
date and earning the readers’ confidence about the validity, reliability, and relevance of
the study findings are some of the steps in the research process (Templier & Paré, 2015).
I used the Walden University business and management online databases as the primary
12
databases for this study. The databases I utilized included: (a) Business Source Complete,
(b) ABI/INFORM collection, (c) SAGE Journals, (d) ScienceDirect, and (e) Emerald
Insight.
Key search words used in the databases included combinations of the small
business owner, small business success, small business failure, marketing, strategy (-ies),
coffee shop, small business or SME, and marketing mix. The primary source of
information for the literature review was peer-reviewed journal articles. I also used
dissertations, seminal articles, and books about marketing strategies which contribute to
small business survivability. Finally, government publications with statistical information
about the health of small businesses are also a vital source of information for this study.
Table 1 includes a breakdown of the material reviewed:
Table 1
Sources of Data for the Review of Academic Literature
Publications
Published within 5
years of expected
graduation date
Older than 5
years
Total
% of sources
Journal articles
155
4
159
90%
Government websites
6
0
6
3%
Seminal works/books 6
4
10
6%
Others
1
0
1
1%
Total sources
168
8
176
100%
% of sources
95%
5%
100%
13
The approach I selected for this study included a section with background
information about 8Ps of marketing mix and small business characteristics. In this
review, I discussed the chronological history of the marketing mix, marketing strategy,
and small business survivability. I included discussions in the literature regarding the
major themes and subthemes of the study. Major themes for review in this study included
the 4Ps, 7Ps, and 8Ps of marketing mix, marketing strategies. Subthemes included the
application of successful marketing strategies, and small businesses and change.
8Ps of Marketing Mix Theory
The 8Ps marketing mix of Goldsmith (1999) was the conceptual framework for
this research study. The purpose of this qualitative multiple case study was to explore
what marketing strategies some small business owners use to sustain business operations
during the first 5 years of operation. Goldsmith developed the 8Ps of marketing mix
theory. Goldsmith determined that personalization of products could set a brand apart
from its competitors. Goldsmith emphasized the importance of the 8Ps of the marketing
mix to carry marketing theory and practice into an era of personalization. The crux of
Goldsmith’s argument for the relevance of the 8Ps, was the need for managers to create
marketing strategies which featured personalization alongside McCarthy’s (1960)
traditional 4Ps (product, price, promotion, place), Booms’s and Bitner’s (1981) 7Ps
(adding personnel, physical evidence, and process), to form an innovative marketing mix,
the eighth P. Mukherjee and Shivani (2016) argued that the traditional marketing mix
elements of product, price, place, and promotion were inadequate in achieving the
marketing objectives in services. Furthermore, Pomering (2017) suggested that small
14
business owners who use the marketing mix can benefit by recalibrating the traditional
4Ps to a changing, sustainable society.
The coffee shop owners use of the 8Ps of marketing mix, which includes
personalization, could provide a unique positioning and marketing strategy in achieving a
competitive advantage over competitors and sustaining business operations. Therefore,
Goldsmith’s (1999) 8Ps of marketing mix conceptual framework could provide a means
for exploring and understanding the marketing strategies that coffee shop owners use to
sustain business operations during the first 5 years of operation.
Small Business
In the United States, the role of small businesses in the economy is significant.
According to the Office of Advocacy, a small business has two unique features, (a) it is
independent, and (b) has fewer than 500 employees (SBA, 2018). Small business success
is crucial to the stability of society and the economy, particularly the local economy and
job creation (Guzman & Lussier, 2015; Memili, Fang, Chrisman, & Massis, 2015).
According to the SBA officials (2018), small businesses make up 99.9% of U.S.
employer firms, 99.7% of firms with paid employees, 48.0% of private sector workers,
and 41.2% of private-sector.
History of Marketing Mix Theory
Neil Borden invented the term marketing mix in his 1953 American Marketing
Association presidential address and formalized it in his Borden (1964) article. Borden
based the marketing mix phrase on a suggestion of a colleague's article (Culliton, 1948)
15
on the marketer as a mixer of ingredients. The original marketing mix framework
consisted of 12 elements.
The 12 elements of Borden’s marketing mix were: (a) product planning, (b) price
planning, (c) brand, (d) channels of distribution, (e) personal selling, (f) advertising, (g)
promotion, (h) packaging, (i) display, (j) servicing, (k) physical handling, and (l) fact-
finding and analysis. Borden also developed a list of four elements of the marketing mix
of manufacturers: (a) consumer’s buying behavior, (b) trade behavior, (c) competitors’
position and behavior, and (d) government behavior. In the short term, the use of the
marketing mix shows marketers how to determine the allocation of expenditures among
the different elements in effective marketing methods. In the long term, the marketer can
use the marketing mix to design a combination of marketing ingredients based upon long-
range planning to ensure business owners successfully meet the demands of the changing
marketplace. Mutandwa, Taremwa, and Tubanambazi (2015) asserted one of the factors
that determined the performance of small and medium enterprises is marketing.
Therefore, a small business owner must employ marketing skills to ensure sustenance of
business operations. In this study, I applied the 8Ps of marketing mix framework to
discover the marketing strategies that coffee shop owners used to sustain business
operations during the first 5 years of operation.
4Ps of Marketing Mix
McCarthy (1960) built upon Borden’s (1964) marketing mix framework, but
reduced Borden’s twelve elements and offered the 4Ps marketing mix conceptual
framework. The critical components of McCarthy’s 4Ps marketing mix conceptual
16
framework were product, price, place, and promotion. McCarthy used the conceptual
framework to explain translating marketing planning strategies into a holistic practice,
enabling managers to configure their product or service offerings to match customers’
preferences. McCarthy’s (1960) 4Ps marketing mix conceptual framework comprised (a)
product, (b) price, (c) place, and (d) promotion. Scholars define marketing mix as the
combination of marketing ingredients or tools marketing managers use to achieve the
response company leaders desire in their target market and achieve the goals of the
company (Arafah, Nugroho, Takaya, & Soekapdjo, 2018). Other researchers define
marketing itself as a set of activities and exchanging offerings which, have value for
customers, clients, partners, and society (American Marketing Association, 2016).
7Ps of Extended Marketing Mix
Booms and Bitner (1981) added 3 more Ps, applicable to service industries,
namely: (a) people, (b) process, and (c) physical evidence. Booms and Bitner recognized
the influence of (a) physical evidence (b) people, and (c) process, may help transform
marketing planning strategies into practice. Researchers revealed that the owner’s
utilization of the various variables of the marketing-mix model might contribute to the
success of small businesses (Al Badi, 2018). In criticizing the 4Ps, Kent (1986) thought
of these four important elements, termed the holy quadruplets, as no more than a handy
mnemonic for recalling the elements of McCarthy’s marketing mix, and not a conceptual
framework. Bruner (1988), following the critique of Kent, postulated McCarthy’s 4Ps
model of the marketing mix had outlived its usefulness and needed new paradigms.
17
Bruner (1988) recommended new paradigms which would keep the relevant
portions of the earlier conceptual framework while re-examining the relevance of
McCarthy’s 4Ps in the era of modern marketing. Researchers dismissed the 4Ps as a
traditional concept needing retirement in favor of the 4Cs, with emphasis on the more
customer-focused marketing philosophy (Zafar, 2017). The critical components of 4Cs
were (a) convenience to buy (substituting for the place), (b) consumer cost (substituting
for the price), (c) communication (substituting for promotion), and (d) studying consumer
needs and wants (substituting for the product). Gummesson (2017) advocated a shift from
traditional marketing to a more customer relationship-oriented approach.
Consumers in international markets differ regarding product preferences and
economic buying power. Researchers evaluated the recalibration (versus standardization
by country of origin) of marketing mix components including product features and
distribution channels in global and emerging markets (Sert, 2017). Sert found the market
factors, including customer, cultural preferences, and legal considerations affected the
local adoption of marketing mix elements, namely, products and promotion. Kotler and
Keller (2016) stated that as marketing trends evolved, it is pertinent to add people (the
human capital), a fifth, but a crucial component to the implementation of a company’s
marketing plan. Fan, Lau, and Zhao (2015) adopted the 5P model of marketing mix
conceptual framework, adapting McCarthy’s 4Ps, but incorporating people. The
introduction of people (customers) is crucial in the era of big data management of
marketing intelligence (including data mining methods), in developing and implementing
of competitive marketing strategies in the information age (Erevelles, Fukawa, &
18
Swayne, 2016; Fan et al., 2015). When the marketer adds the customer to the marketing
mix, the role of the marketer shifts to one of creating value to the customer and for the
society at large (Pomering, 2017).
The marketer could shift focus from traditional marketing to more strategic
marketing focused on the co-creation of value with customers and sustainability
(Pomering, 2017). In examining the role of customer participation in emerging markets,
Chang and Taylor (2016) asserted that engaging customers in the innovation strategy may
improve the short-term outcomes of a new product development project and may create a
long-term competitive strategy for the business owner. The market, industry and
economic (including manufacturing) are factors which influence the adoption of price in
international markets. The preferences of companies also influence the adaptation of
place (including distribution, inventory, and supply chain) in international markets. In
discussing the use of marketing mix in global markets, researchers found the place and
price components of marketing mix had a more significant impact in both emerging and
developed countries, while the product and promotion components had more impact in
emerging markets in comparison to developed countries (Bahadir, Bharadwaj, &
Srivastava, 2015).
In exploring emerging markets, Dadzie, Amponsah, Dadzie, and Winston (2017)
argued that the 4Ps of marketing was not always suitable for emerging market business
conditions and proposed the 4A marketing mix, comprising affordability, accessibility,
acceptability, and awareness marketing capabilities. Affordability means ensuring that
customers are able and willing to pay for the products and services; accessibility means
19
ensuring the products and services are readily available and accessible to buy.
Acceptability means ensuring that the products and services meet and exceed customers’
needs and awareness means ensuring that customers know about the products and
services and the brand. In their study of the usefulness of the 4As using samples from the
product and service sectors of the market, in Ghana, an emerging market, the authors
found that the implementation of a marketing strategy focused on affordability and
accessibility was a vital ingredient for business sustenance and market share growth. The
authors also found that marketing strategy must be on acceptability, affordability, and
accessibility marketing capabilities in emerging business markets to maximize financial
performance.
In connection with business markets, Marek (2014) suggested that company
owners who carefully examine marketing mix elements of place and price may operate
more profitably, provide value for customers, and sustain their businesses for more
extended periods. Internal and external factors shape a company’s marketing strategy.
Therefore, an understanding of the strategic and competitive environment may impact the
development of a business owner’s marketing capabilities and in turn, may lead to an
effective marketing strategy (Qureshi, Aziz, & Mian, 2017). Coffee shop owners who
study the marketing mix could also shape the marketing strategy of an organization.
Marek posited that vital components in building a company’s competitive strategy
included the quality and availability of products, branding, service delivery, pricing, and
a good reputation. Researchers who previously studied the tourism industry highlighted
the importance of identifying and implementing service quality and service delivery
20
components that impact customer satisfaction and customer retention (Prayag, Hosany,
Muskat, & Del Chiappa, 2016).
A business owner could create value for the customer through customized
marketing strategies to drive their satisfaction, loyalty, and profitability, resulting in
higher rates of business success (Kumar & Reinartz, 2016). Marketers must obtain
concise information about their customers’ preferences as input into strategic marketing
decisions. Furthermore, in a survey of 400 coffee shop customers in Kuala Lumpur,
Malaysia, researchers Mohamud, Khalifa, Abuelhassan, and Kaliyamoorthy (2017) found
that coffee shop operators must focus on responsiveness, reliability, assurance, customer
satisfaction, trust, and price acceptance, which are factors that positively affect the
customers' experiences resulting in customer retention and increased market growth. By
obtaining concise information about customers’ preferences, the marketer could revise
the traditional marketing mix of product, price, place, and promotion components to align
with the customers’ gravitation towards the e-commerce marketplace (Pogorelova,
Yakhneeva, Agafonova, & Prokubovskaya, 2016).
In support for customers’ gravitation towards the e-commerce marketplace, Kotler
and Keller (2016) posited business owners should begin to adopt an integrated marketing
mix of digital communication which aligned with the uniqueness of the e-commerce
marketplace. Small businesses are using digital marketing tools to provide products and
services directly to current and potential customers (Lamberton & Stephen, 2016).
Prasetyo and Lo (2016) stated that it is possible to develop each variable of the marketing
21
mix for a more robust discussion. In the next section, I began my review of the literature
with a discussion of the traditional, tested 4Ps of marketing mix
4Ps of Marketing Mix – Product
A consumer’s personal preferences and extrinsic attributes (brands and
packaging) are critical factors of consideration in creating value for the customer
(Samoggia & Riedel, 2018). Therefore, making unique products that stand out in the
market and appeal to customers is a crucial ingredient to attaining competitive advantage
and may increase a company’s profits (Hsu, Lu, Chien, Hsieh, & Wang, 2017). Beyond
the creation of superior products and services, a company may attain a higher competitive
advantage through customer engagement (Hidayanti, Herman, & Farida, 2018).
Companies have incorporated customer feedback in the ideation, product development,
and launch stages of new and improved upon products (Chang & Taylor, 2016). Chang
and Taylor found that customer participation in new product development may maximize
a company’s reputation with existing customers but may not impact or may even damage
the relationship with potential customers without an existing relationship. In a study of
459 coffee consumers conducted in Belo Horizonte, MG, Brazil, researchers found that
product features, followed by the coffee’s taste, type of coffee, and its roasting point were
the most critical considerations in the consumer buying decision process (De Sá, de
Paiva, Souki, & Moura, 2017).
The ability of the packaging of a product to entice customers to buy a product
makes packaging a “silent salesman” or “salesperson on the shelf.” The design of the
coffee packaging and sustainability labeling convey a message to the consumers
22
including an appreciation of quality in the consumers’ minds (Samoggia & Riedel, 2018).
While the income of consumer may be one of the reasons for the frequency and choice of
coffee, coffee drinkers are loyal to their preferred brand and do not readily switch.
Shariff, Sapawi, and Wee (2016) affirmed product attributes (labels, brand, appearance,
functionality, price, and taste) correlated positively with customer satisfaction and
retention of preferred brands.
Customer brand preference, positive customer experience, and customer
satisfaction were some of the factors responsible for retention. In discussing product
offerings, Wang and Yu (2016) found that content sensory, packaging design and
branding, and content, functional attributes in ready-to-drink coffee beverages impacted
consumer-perceived value and consumer repurchase intentions. Business owners of RTD
coffee beverage shops could enhance consumer repurchase intentions of products by
focusing on the packaging and branding, and content sensory attributes in their marketing
strategies (Wang & Yu).
4Ps of Marketing Mix – Price
Pricing plays a vital part in customers’ choice of products. Pricing is also a
significant factor in the determination of a business’s profitability. It is common for
customers to do a price check on an item before purchase. Flatten, Engelen, Moller, and
Brettel (2015) posited that pricing capability is a business owner’s ability to integrate
resources to control the best price for maximum profit. In a service-based environment,
hybrid bundle pricing capability is a way to achieve corporate profitability (Meyer,
Shankar, & Berry, 2017). Hybrid bundle pricing is dependent on the understanding of the
23
drivers of a customer’s willingness to pay for the bundle of services. These drivers
include service autonomy, service complementarity, and overall bundle quality. If
customers decide the price of a product or service is too high, they are going to take their
business elsewhere. To grow the customer base and achieve a competitive advantage in
the coffee shops, a business owner must pay attention to pricing (Rajasekaran, 2015). The
marketer’s use of pricing strategies may involve price differentiation, dynamic pricing,
service bundling or partitioning, and consumer-driven pricing. Conversely, some business
owners may base their pricing strategies on competition or cost-based pricing (Liozu &
Hinterhuber, 2015).
Regardless of the pricing strategy a marketer chooses to adopt, the best pricing
strategy requires the collaboration of all stakeholders. As it relates to coffee, Samoggia
and Riedel (2018) found that customers’ perceptions of coffee packaging, branding and
the prices of coffee increased the customer’s purchase intention. Another pricing strategy
which may increase the customer’s purchase intention is the Pay-What-You-Want
(PWYW) pricing strategy which empowers the customer to choose their price. Park,
Nam, and Lee (2017) found that when the marketer adopted the PWYW pricing strategy
and combined it with charitable giving and a suggested price, the business yielded net
revenues as substantial as what would have come in through fixed pricing. The PWYW
pricing strategy may influence customers’ buying decision (Park et al.) The optimal
pricing strategy of a service company may require the business leaders to understand the
delay sensitivity of, established and potential customers which may enable them to create
24
a competitive advantage based on their priority service pricing (Cao, Wang, & Xie,
2017).
Kienzler (2018) advocated for the value-based pricing, a customer-focused model
based on the customer's perceived value as a transition from the traditional one-size-fits-
all pricing strategy. In addressing a broad array of customer needs, wants, and willingness
to pay for the product or service, marketer strategists, unveiled the good-better-best
market segmentation to expose the customer to several price points. Kienzler further
posited value-based pricing innovation allows the business owner to gain competitive
advantage, increase profits, and ensure customer value and customer satisfaction.
Offering different price points and product types may allow a small business owner to
grow their business.
4Ps of Marketing Mix – Place
Coffee shop owners could emphasize creating the ambiance (interior design,
décor (lighting, smells, music level) and thematic integration of the local community for
the experience of the third place. Zhang, Kim, and Goodsir, 2019 found that ambiance
was a vital element in customer’s perception of value for money spent on the coffee cup.
Third places are public gathering places that contribute to the strength of a community
(Yuen & Johnson, 2016). Customers use third places to interact and engage outside of
work and home (Van der Merwe & Maree, 2016). Sugiyama, Shirahada, and Kosaka
(2015) posited in the case of Starbucks; the company announces its business model as
one which provides the third place with an array of beverages. Therefore, the baristas
receive training in achieving third place qualities such as friendliness, hospitality, and
25
recognition (and retention) of customers which includes remembering favorite beverages.
Customers are service receivers in a sustainable relationship with the service provider as
they spend time interacting with others or in solo technology-related activities in the
coffee shop.
In the era of technology, coffee shop owners attempt to create a welcoming
environment which resembles a home away from home, fostering a place of socialization
and lingering. In support of this development, Ardekani (2016) posited coffee shops,
especially specialty coffee shops, are transforming from a place of socialization (third
place) to a multifunctional space to work, read and use electronic devices within
environments of economic opportunities. Additionally, the customers' expectations of
third places in the era of technology now include a wider variety of features including the
provision of free wireless connection (Wi-Fi).
4Ps of Marketing Mix – Promotion
Social Media as a means of promoting the business. Promotion is a crucial
component of the marketing mix. Social media gives business owners the opportunity to
expand their digital footprint beyond their immediate geographical location (Warren &
Szostek, 2017). Promotion mix determines the positioning of the product in the target
market (Thabit & Raewf, 2018). Companies and organizations must attract and retain
customers so that the business operations may survive. Consumers are embracing more
omnichannel platforms in their research of products, purchase, and consumption of goods
and services, and communicate with others about their experiences with these products
and services (Stephen, 2016). This communication may help owners in the development
26
of product and services. This assertion is congruent with Choshin and Ghaffari (2017) in
the sense that a business owner’s success in e-commerce depends upon determining,
embracing, and implementing effective factors in e-commerce. In the dynamic
marketplace, the small business owner may face marketing challenges without proactive
social media adoption (Ogbuji & Papazafeiropoulou, 2016). Elena (2016) also made a
compelling argument for the use of social relationship management as statistics revealed
higher percentages of people skipped TV commercials, who never opened or
unsubscribed from direct email marketing campaigns.
To use social media as a marketing tool, business owners must have a marketing
communication strategy (Key & Czaplewski, 2017). Furthermore, the business owner
must develop a plan for where they want to have an online social media presence, social
media content, and the return on the investment in the online presence (Kujur & Singh,
2016). For social media marketing to be successful, marketers must develop social media
geared towards (a) helping people improve existing relationships or building new ones;
(b) leveraging the power of celebrities; and enhancing (c) customer collaboration (Zhu &
Chen, 2015). Taecharungroj (2016) found that on Twitter, the brand Starbucks utilized a
three-pronged approach of information-sharing, emotion-evoking, and call-to-action
content.
Taecharungroj (2016) found that six types of replies, namely, information,
apology and support, positive comment, question and inquiry, chit-chat, and gratitude.
Business owners face the challenge of how to distribute resources to the alternative
complaint-handling initiatives in a way; the outcome satisfies each customer (Cambra-
27
Fierro, Melero, & Sese, 2015). Procrastination is not an acceptable complaint-handling
technique. No complaint should go unattended for more than 24 hours (Ramsey, 2016).
Deleting a negative comment may hurt a company. The impact of negative postings may
be immediate, and businesses cannot afford to be tone-deaf about the potential effects of
customers’ actions on their brands. Thus, business owners must monitor the quantity and
content of comments on social media concerning goods and services in real-time (Sexton,
2015). Managers may use complaints to learn what is working and what is not within the
different departments or sales team and resolve customer issues (Agnihotri, Dingus, Hu,
& Krush, 2016). The use of social media as a marketing strategy involves effectively
handling of customer complaints in a manner which satisfies the complainant and the
observers of the complaints (Einwiller & Steilen, 2015). The use of customer relationship
management (CRM) or social customer relationship management (sCRM) databases or
techniques gives the marketer the required visibility to this performance review (Carmen
& Marius, 2016). The effectiveness of the exposure is dependent on understanding what
customers value via social media platforms. In the era of personalization of goods and
services, Ramaj and Ismaili (2015) asserted that the business-to-business (B2B) marketer
must monitor the social media as a data collection point for insights into the consumer's
preferences, likes, and dislikes and in turn, plan interaction and engagement.
Customer relationship management as a means of promoting the business.
The essence of customer relationship marketing (CRM) is the interactions
between the buyer and seller. Customer relationship management is a vital strategy for
business success. Hidayanti et al. (2018) posited that the rapid development of the
28
Internet had accelerated the transition from traditional means of customer relationship
management towards electronic Internet customer relationship management. Smaller
companies have close interaction with customers. Small business owners can leverage
this relationship to promote their businesses, strengthen customer loyalty, and increase
customer retention beyond the limits of one-time transactions. Zhang, Watson, Palmatier,
and Dant (2016) noted that the understanding and managing of customer relationships are
central in the marketing of businesses.
Consumers’ loyalty contributes significantly to the long-term sustenance of a
business (Utami, Bayani, & Eprilisanti, 2018). Utami et al. found that coffee shop
operators experienced higher customer loyalty because of higher service quality.
Moreover, Marek (2014) posited that business owners could more easily focus on
promoting their brands and customer loyalty than larger competitors because of the
limited geographical market coverage of small-to-medium size enterprises. As I
conducted a review of the literature on the marketing mix, I focused on marketing mix
ingredients specifically relevant to coffee shops, with an emphasis on creating value for
the customer.
Small business owners could benefit from reaching out and incorporating
customer feedback into product development and service delivery. Customer engagement
marketing is a company’s strategy to incorporate and measure customer contributions
including feedback into its marketing functions (Harmeling, Moffett, Arnold, & Carlson,
2017). Harmeling et al. asserted that customer engagement goes beyond the immediate
economic transaction, to incorporate voluntary word of mouth blogging and to provide
29
customer ratings for a product or service. Customers use various social media platforms
to evangelize their own experiences with more customers (Alalwan, Rana, Dwivedi, &
Algharabat, 2017). Researchers group social media platforms into four main functional
categories, namely, creativity, relationship management, entertainment, and
newsgathering (Killian & McManus, 2015). Hudson, Huang, Roth, and Madden (2016)
posited that electronic word of mouth had more reach than the traditional word of mouth
sharing of product or service experience.
Both the business owner and customers can utilize social media platforms
function as a medium of creativity, content creation, and customer engagement. Russo,
Confente, Gligor, and Autry (2016) stated that the inclusion of social customer
relationship management resulted in ongoing customer engagement. The essence of
customer engagement also incorporates customer contributions to product development
and offering. Similarly, Kumar and Pansari (2016) opined that customer engagement
incorporates the level of connectedness among customers and employers. Examples of
this customer engagement include customer purchases and post-purchase actions like
posting content on social media and customer referrals. However, Hollebeek, Srivastava,
and Chen (2016) argued that the effectiveness of customer engagement marketing
depended on the company’s ability to identify and leverage customer-owned resources to
contribute to the company’s overall marketing strategy objective.
Gupta et al. (2018) stated that customer feedback avenues include surveys (one-
to-one, telephone, online), customer forums, and social media. However, the authors
agreed that concerning feedback evaluation, it is challenging to find objectivity in the
30
feedback as customers usually indicate their personal and subjective insight of
satisfaction and importance. Simon and Tossan (2018) found that customer engagement
with a brand via social media including reading and re-posting content was a part of the
reciprocal responses of grateful consumers and a sense of belonging to the brand
community.
7Ps of Marketing Mix – Personnel, Physical Evidence, and Process
Booms and Bitner (1981) created the extended marketing mix to incorporate
services. In doing so, Booms and Bitner added 3 new elements (people, physical
evidence, and process) to the 4Ps of marketing mix to include services. The proponents of
the 4Ps of marketing mix used employed it about tangible products (Lau, 2016). Booms
and Bitner argued that by adding the 3 new elements, he wanted to draw attention to the
expressed importance of these elements to service-firm managers. Therefore, the focal
point of the 7Ps of marketing mix was customer satisfaction coupled with service quality
(Kushwaha & Agrawal, 2015). Booms and Bitner asserted that personnel (people) was a
crucial element in achieving excellent service quality in a customer-centric environment.
Furthermore, all businesses need people, the human actors to provide quality
service to the consumers of the service. However, company managers played a role in
creating work environments conducive for the provision of quality service to customers
and improving the organizational outcome (Kim et al., 2017). However, Dhar (2015)
supported the importance of people element as a critical component of marketing mix.
Dhar found that the perception of training related activities positively impacted
employees’ commitment level to the company and subsequently impacted the service
31
quality. Furthermore, Rauch and Hatak (2016) asserted that highly qualified employees
were more committed to advancing the company’s objectives.
Booms and Bitner (1981) argued that physical evidence was the environment in
which the service took place including other intangible aspects (the ambiance, the
background music, and the physical layout of the company). Physical evidence could
include corporate branding, packaging practices, and bundling of services. Booms and
Bitner argued that the components of physical evidence contributed to the customer’s
perception of value. Researchers confirmed the direct relationship between the overall
physical image of a destination, customer satisfaction, and intention to recommend
(Prayag et al., 2016).
Consistent with Prayag et al. (2016), Lau (2016) summed up physical evidence as
the tangible products which may assist the business owner in the delivery of exceptional
service. The tangible products include the appearance of the building, landscaping,
employees’ uniforms, and layout of the business space (Loo & Leung, 2016). The
business needed process as a way the business and the consumer interface in a systematic
manner to achieve the company’s desired objectives and the customers’ expectations and
satisfaction. The process relates to the execution of service production and delivery (Loo
& Leung). Lau (2016) stated that the process involved a series of incidents in the delivery
of a service to the customer. Hidayanti et al. (2018) found that customers want to be
involved in the creation of products, services, and company processes which meet the
customers’ needs. The process of delivery of service to customers may be a time-
sensitive construct which has a significant effect on organizational performance.
32
8Ps of Marketing Mix – Personalization
In the 1990s, Goldsmith (1999) added an 8th element of the marketing mix,
personalization. The rationale behind Goldsmith’s 8P was that alongside making strategic
marketing decisions about product, price promotion, and place, managers should
incorporate considerations of service delivery personnel, the physical assets surrounding
the product, and the processes by which customers purchase the product. Consumers
wanted the shopping experience personalized for them and demanded great products and
even more exceptional customer service. Goldsmith argued that the marketing manager
must determine whether the personalization of the product occurred in a manner which,
offered the customer a fair deal in exchange for payment.
Productivity or quality the customers experienced from the personalization of
products or services was the focus of the eighth P. Goldsmith (1999) posited that
increasing levels of customer service result in customer satisfaction and may yield more
profits. Goldsmith also reiterated the importance of the concept of personalization, as a
way that business owners could seek input from consumers before, during, and after the
consumption of a product. This assertion is congruent to that of Mohamud et al. (2017)
that traditional coffee shops could boost their services by understanding customers'
satisfaction needs and preferences. In seeking input from consumers, the business owner
could determine the possible degree of consumer personalization. Goldsmith
acknowledged that consumer personalization might not be feasible in every product
category or to every customer. Thus, if the business owner is unable to personalize the
product, the business owner may not be able to personalize the pricing and advertising to
33
a targeted consumer base which is willing to pay for the personalized products and
services. The concept of personalization underscores the importance of understanding,
creating, communicating, and providing value and satisfaction to customers (Fernandes,
2018).
In providing value and satisfaction to customers, Stock, de Jong, and Zacharias
(2016) suggested that the frontline employees may help the customer by making product
recommendations, product add-ons, and uncover customers’ latent needs. The
investigators in the Stock et al. study support the findings in the Dhar (2015) regarding
the correlation between employer training-related activities and employee-customer
relationship outcomes. Hidayanti et al. (2018) found that customer interactions via social
media can increase customer engagement. In turn, customer engagement facilitates co-
creation which may help businesses improve and develop products based on customers’
needs and preferences and may increase customer loyalty. An understanding of what the
customer needs and prefers is crucial in the development of successful marketing
strategies in a product-service business such as the coffee shop. The modern marketer
must have a repositioning strategy to capture the changing trends of the technologically-
savvy, budget-conscious online consumer (Pavel & Vlad, 2016). Social media interaction
is an effective way to engage customers in the development of budget-friendly but
customer-based products and services (Hidayanti et al.).
Transition
In Section 1, I discussed the problem statement, purpose statement, and the
central research question. I supported the problem statement and the purpose statement
34
with peer-reviewed sources. The method and design I selected were the qualitative
research method and multiple case study, respectively. I used the central research
question to frame the interview questions. After the discussion of the conceptual
framework, I reviewed the academic and professional literature about various marketing
strategies for small businesses, highlighted past research and contributions to the study.
The literature review comprised significant writings in the marketing field. In
Section 2, I discussed all required aspects of the research, namely, (a) purpose statement,
(b) role of the researcher, (c) study participants, (d) research method and design, (e)
population and sampling, (f) ethical research, (g) data collection instruments, (h) data
organization, (i) data analysis technique, (j) reliability and validity, and (k) transition and
summary. In Section 3, I introduced the study, (a) presentation of the findings, (b) the
application to professional practice, (c) implications for social change, (d)
recommendation for action. I concluded Section 3 with my recommendations for future
research about coffee shop marketing strategies, reflections, and conclusions.
35
Section 2: The Project
In Section 2, I outlined the purpose statement. Then, I discussed my role as the
researcher and defined my study participants. After discussing the qualitative research
method and multiple case study research design, I discussed the population and sampling
and ethical research. Section 2 also included a discussion of data collection instruments,
data collection techniques, data organization techniques, and data analysis. I concluded
this section by discussing my stratagem for improving the credibility of my study
research.
Purpose Statement
The purpose of this qualitative multiple case study was to explore what marketing
strategies some coffee shop owners used to sustain business operations during the first 5
years of operation. The targeted population consisted of five coffee shop owners in the
state of Arkansas who successfully implemented marketing strategies to sustain business
operations during the first 5 years of operation. Positive social change may result in a
reduction in the number of coffee shop failures, thus improving employees’ worth and
dignity, and reducing the unemployment rates, which can result in building stronger
communities through gainful employment.
Role of the Researcher
As the researcher, it is my responsibility to adopt the most suitable research
methodology and design and then seek out and engage the appropriate participants in the
study. Additionally, I am responsible for the construction of the interview questions in a
manner, which elicits informative answers. I am also responsible for interviewing,
36
member checking, and transcript validation and reviewing, determining and assuring the
data saturation. Following the suggestion of Fusch and Ness (2015) I will achieve data
saturation when there is enough data to reproduce the study and when gathering
additional data or thematic coding will not result in new information about the subject
matter. The researcher’s use of multiple data collection sources offers internal and
external validity of the study, I am also responsible for the triangulation of data sources
by collecting data including (a) marketing strategies, (b) competitive advantage
strategies, and (c) social media strategy, of coffee shop owners who have succeeded in
business during the first 5 years.
Given my exposure to small businesses as a marketing strategist, I have individual
perspectives and opinions on running a small business, which may influence my
interpretation of collected data. However, my plan for avoiding potential bias in this
research was to present the experiences of the participants and to ensure the accurate
representations of the participants through data analysis and thematic interpretation.
Parsa, van der Rest, Smith, Parsa, and Bujisic (2015) suggested the use of open-ended,
semistructured questions in the interview process as the primary source of data for an in-
depth understanding of the phenomenon and to avoid potential bias in interviews.
Moreover, the open-ended interview is the most effective tool to gain visibility into the
interviewee’s experience (Silverman, 2017). Fusch and Ness (2015) stated it was
pertinent that the researcher does not influence the participants’ responses thus impacting
the validity of the data collected.
37
Bias occurs in all phases of research. Therefore, I took steps to mitigate potential
instances of bias and establish my positionality within the research. Hopkins, Regehr, and
Pratt (2017) asserted that positionality denotes a space in which the researcher’s
objectivism and subjectivism meet. As the researcher, I ensured my insider positionality,
my assumptions, and beliefs did not pose challenges in this study, including the potential
to influence the answers.
Conversely, my insider positionality facilitated rapport and understanding to ask
relevant follow-up questions to elicit rich data during the interviewing process. I avoided
bias with member checking after the interview is over, and I transcribed the actual
interview and ensured that I did not interject bias during the interview with member
checking. Bracketing is the process of writing down personal experiences, biases, and
previous knowledge and notions about the research topic (Sorsa, Kiikkala, & Åstedt-
Kurki, 2015). I followed up with my subjects and ensured data accuracy by using
member checking. With member checking, I asked subjects to review the actual
transcripts to verify the truthfulness and to assure the credibility and trustworthiness of
the research study.
Participants
Participants for this qualitative multiple case study were business owners of
coffee shops who had successfully implemented marketing strategies to remain in
business beyond the first 5 years in Northwest Arkansas. Regarding sample size for this
study, Boddy (2016) advised the sample size depends on what the researcher wants to
find out, what will enhance research credibility, and what is achievable within the
38
constraints of time and resources. Some scholars recommend the researcher interviews
more than one person for a case study design (Boddy, 2016). In this research study, I
selected the owner of 5 coffee shops targeted in the study who implemented successful
marketing strategies. To find the potential participants, I conducted an online search of
Northwest Arkansas travel guide (https://nwatravelguide.com/cat/coffee/) and found 62
coffee shops. Most of the 62 coffee shop owners had not been in business for up to 5
years. Therefore, I expanded my online search to the entire state of Arkansas. My further
research was on the coffee shops’ online presence, and other publicly available data via
the Internet to determine the participants who met the study criteria.
Regarding the plan for selecting the participants for a study, Dasgupta (2015)
advised the plan aligns with the overarching study research question, and the participants
should be able to provide rich data from their experiences. After I achieved approval
from Walden University’s Institutional Review Board (IRB) (approval number 02-13-19-
0606269), I selected the potential participants that meet the participant inclusion criteria.
I then sent an email invitation to the owners of these coffee shops requesting them to
participate in my study research voluntarily. From the pool of voluntary participants, I
made a final decision on the participants for the study.
Research Method and Design
The purpose of this qualitative multiple case study was to explore what marketing
strategies coffee shop owners used to sustain business operations during the first 5 years
of operation. I discussed the research method and research design below.
39
Research Method
The research problem and research question determine the suitability of the
research method (Singh, 2015; Venkatesh et al., 2016). Research study methodologies are
qualitative, quantitative, or mixed methods (Venkatesh et al.). A qualitative research
method is a tool for discovery, considering the experiences of individuals based on
research questions, and collecting in-depth data from multiple sources in natural
conditions (Park & Park, 2016). Comparatively, quantitative researchers use structured or
raw data and statistics for hypothesis testing to predict and control social phenomena
(Park & Park). Mixed method researchers combine qualitative and quantitative methods
within the same project for addressing a research question (Carins, Rundle-Thiele, &
Fidock, 2016). I chose the qualitative methodology as there were no variables to compare
or examine as within a quantitative or mixed method approach.
Researchers use the qualitative research method to gain a holistic view of the
topic via documents, observations, and interviews (Park & Park, 2016). Yin (2017) stated
that utilizing an interview method with open-ended questions is valuable for gathering
data from the participants. Also, with the qualitative method, I gained an understanding
of the perspective of the participants through observation and interpretation. I saw an
advantage of using a qualitative approach as the opportunity to gain valuable insights into
the reasoning behind an occurrence or problem. I used the qualitative methodology to
explore the research question: What marketing strategies do some successful coffee shop
owners use to sustain business operations during the first 5 years of operation?
40
Using the unstructured or semistructured techniques including open-ended
questions, the researcher uncovers common tendencies in thought and opinion (Park &
Park, 2016; Yin, 2017). Yin stated that it takes the researcher time to explore, gather and
analyze the data. It also takes time to study the culture and interaction between a group of
people through participant observation, interviews, and historical documents (Park &
Park). Park and Park; Yin, stated that in a qualitative study, the researcher could not
generalize the findings of the study to the population of interest.
Research Design
Qualitative researchers have access to several research study designs, which
include (a) ethnography, (b) phenomenology, (c) narrative, and (d) case study (Yin,
2017). Researchers use a phenomenological design to explore the participants’
perspectives and interpretation of experiencing a phenomenon (VanScoy & Evenstad,
2015). In an ethnographic approach, the researcher explores groups’ cultures through
observations and interviews (Letourneau, 2015). Investigators may use a narrative design
when they want to focus on the study on the life stories and experiences of individuals
presented through their own stories (Yin, 2017). Considering I was not researching the
participants’ perspectives of a phenomenon, groups’ cultures or the life stories of
individuals, I decided not to use a phenomenological, ethnographic, or narrative design.
I used semistructured interviews to explore successful marketing strategies that
some coffee shop owners have used to sustain business operations during the first 5 years
of operation. Researchers use a case study design to understand complex phenomena
(Dresch, Lacerda, & Cauchick Miguel, 2015). Yin (2017) noted that a case study design
41
is an approach for in-depth exploration of a study’s problem and lends itself to the
opportunity for future research. Yin (2017) further noted the 5 components of case study
research design were (a) the study questions, (b) the propositions, (c) the data analysis,
(d) linking the data to the propositions, and (e) the criteria for interpreting the findings of
the study. Using a case study design may help the researcher explore strategic
management areas via face-to-face semistructured in-depth interviews and research
questions (Gaya & Smith, 2016). Gaya and Smith further outlined the importance of
ensuring rigor in a qualitative study. The researcher using a case study design must
understand the importance of choosing key informants, following the case study protocol,
rigorous data collection, and analysis methods (including the ability to ask pertinent
questions), facilitating triangulation of sources, and reporting of findings to increase the
study’s validity and the reliability of the data collected. The importance of achieving
rigor in qualitative research mirror those of Noble and Smith (2015) covering credibility,
transferability, data dependability, and confirmability.
Yin (2017) noted that the case study could be a single case or multiple cases
bounded by time and location. Case studies may also involve one organization and
location or multiple organizations and locations. Gaya and Smith (2016) explained that a
researcher could use the single case study design if the single case possessed unique
attributes needed to meet the research purposes. Conversely, the researcher of multiple
case study makes comparisons which clarify whether a developing finding is unique to a
single case or steadily replicated by several cases (Fletcher, Massis, & Nordqvist, 2016).
42
Since I plan to interview independent owners in various locations, I used a
multiple case study model. Case study design researchers collect data from various
sources to ensure credibility (Yin, 2017). Researchers use the data collected from two or
more sources or data triangulation, including interviews, peer debriefing, and member
checking to enhance the dependability and transparency of the research (Fusch & Ness,
2015). Fletcher et al. (2016) explicated that each data source contributes to the
researcher’s understanding of the whole phenomenon. To ensure data saturation in my
study, collected data until there is no added information or themes emanated from the
data collection process.
Population and Sampling
Once I settled on the methodology and research design, I selected the appropriate
sample for the study. Gentles, Charles, Ploeg, and McKibbon (2015) defined sampling in
qualitative research as the selection of precise data sources from which the researcher
collects data to address the research objectives. In a research study, the research question
determines the sample size. Therefore, the selection of the participants is a qualitative
case study is an important decision. Fletcher et al. (2016) noted that case study sampling
inextricably links to the understanding of the investigated phenomenon.
Fusch and Ness (2015) opined that a researcher’s selection of participants for this
case study must align with the suitability of the participant to answer the research
question and the conceptual framework. The population for this multiple case study was 5
coffee shop owners who have successfully used marketing strategies to sustain business
operations. I used the purposive sampling method, to select the participants. The rationale
43
for using a purposive strategy was that I assumed that the participant had an in-depth
understanding of the phenomenon of study.
Parveen, Jaafar, and Ainin (2015) noted that researchers use purposive sampling
to effectively target participants to gain a more in-depth insight into the phenomenon of
study. Fusch and Ness (2015) further posited the researcher should choose the sample
size which has the best prospect for the researcher to reach data saturation. I selected the
owner from each of 5 coffee shops located in Arkansas who used marketing strategies to
sustain their business operation in the first 5 years of operation.
Ethical Research
I followed the procedures and processes to ensure the ethical implementation of
the study. Greenwood (2016) asserted that the researcher has a reasonable duty to protect
the research participants. My study conformed to the requirements for minimal ethical
risk to satisfy the terms of IRB. Cugini (2015) opined that the IRB of any institution
handles the determination, review, approval, modifications, or disapproval of all research
activities involving study participants. Upon the receipt of my approval from the Walden
University Institutional Review Board to conduct research, I sent the participants meeting
the study criteria an email to explain the details and intent of the study. The letter of
intent will also include a copy of the Informed Consent Form for review and approval by
the participants. I ensured that the informed consent form complied with IRB
requirements and included the purpose of the study, the voluntary nature of the study, the
interview structure, and consent to audio record the interview, and how I planned to use
the data collected during the interview. Finally, I included my contact information.
44
Informed consent is a manner of obtaining approval from an individual
participating in a research study (Grady et al., 2017). The informed consent form includes
information about the research, the details of the study questions and data collection
methods, and the participant’s voluntary choice whether to take part in the research.
Therefore, informed consent is a means of protecting the rights and welfare of
participants while they contribute to the advancement of knowledge. Grady et al., further
recommended the consent form include information that the potential study participants
can pull out from the study for any reason. The participants can withdraw either by email,
through telephone or other technology. There were no incentives in exchange for study
participation.
Upon receiving IRB approval, I contacted the participants by telephone and e-
mail to confirm and schedule dates to conduct participant interviews. Integrity is central
to ethical research and maintaining participant confidentiality is vital in research studies
(Gudkova, 2017). Researchers must strive to protect participant privacy and
confidentiality (Wallace & Sheldon, 2015). To assure the ethical protection and
confidentiality of the participants, I did not identify the participants involved by name or
any other descriptive information of the individuals or the organizations in which the
participants work. However, I informed the participants of risks associated with sharing
company proprietary information and individual opinions needed by my research
questions. I also informed the participants that there was no monetary exchange for their
participation in the study. I will, however, share a summary of the findings with the study
participants. The interview data will remain confidential but available to the participants.
45
Furthermore, I used alphanumeric codes to protect the participants’ identity
throughout the study. I coded each participant names as small business owner (SB) (SB1
to SB5). I will retain the summary of the findings for 5 years to protect the confidentiality
of the participants. I collected publicly available documents and marketing strategies
relating to coffee shop owners. I also obtained the information from the public
information available via company websites and other readily available media.
Data Collection Instruments
The objective of my study was to explore marketing strategies for sustainable
business operations. The researcher is the primary data collection instrument in
qualitative research (Clark & Vealé, 2018). For this qualitative case study, I am the
primary data collection instrument and cannot separate myself from the research. As the
researcher, I am operating in the world of the study participants as well as in the world of
my perspective about the study. Therefore, I am an active participant in the research
process. I collected data through in-depth interviews, participant observation, and non-
participant observation as recommended by Gudkova (2017). The interview is the most
effective method of data collection for qualitative studies (Yin, 2017)., Yin stated that a
good interviewer should know the areas of technical and interaction competence. In
qualitative research, the researcher uses interview questions structured, but open-ended
questions as the primary source of data for an in-depth understanding of the phenomenon
(Parsa et al., 2015).
Fusch and Ness (2015) found that researchers must structure the interview
questions in a manner, which gives multiple participants the opportunity to answer the
46
same questions. Likewise, Lee, Lee, Chua, and Han (2016) advocated using the
semistructured interview format, which gives the researcher the flexibility to clarify the
participants’ responses. Hawkins, Stuhlm, Degen, and Goodman (2015) argued that the
interview question itself is crucial in promoting a consistent answer. Behind every
question lies a goal or intention. Open questions invite open-ended answers, which open
discussion and invite the respondent to dig deeper for answers. Therefore, I used the face-
to-face interview method to collect data from the SBs. During the face-to-face interviews,
I asked open-ended structured questions to explore the marketing strategies that coffee
shop owners used to achieve longevity in business beyond the first 5 years. Furthermore,
I collected data from social media platforms of the coffee shops and publicly available
data.
Reflexivity is a situation in which the researcher influences participants using bias
(Yin, 2017). One goal of reflexivity in qualitative research is to assess whether the
researcher is part of the researched, shares the participants’ experience, and enhances the
credibility of the research (Berger, 2015). Furthermore, researcher bias is a possibility
because of my personal bias and perceptions. Researchers reasoned that bracketing is a
method for improving the researcher’s objectivity during the study (Sorsa et al., 2015).
Therefore, I recorded my personal biases by writing memos during the data collection
and analyses and maintain journal entries to reflect on, as ways to improve the objectivity
of my data interpretations.
Furthermore, I used member checking as suggested by Birt, Scott, Cavers,
Campbell, and Walter (2016) to aid in enhancing the reliability and validity of the data
47
collection instruments and ensuring an accurate representation of participants’ views.
Member checking is the method of returning a written summary of the interview to the
SB to check (validate) its accuracy (Birt et al., 2016). Upon completion of the study, I
added the interview protocol and interview questions to the appendices.
Data Collection Technique
In this study, I explored the marketing strategies some successful coffee shop
owners use to sustain business operations during the first 5 years of operation. I collected
the data for my study by contacting selected coffee shop owners to determine their
suitability. Upon IRB approval, I contacted the pool of potential participants using e-mail
to introduce myself and the objective of the study. Next, I scheduled a phone meeting to
explicate the study. After selecting potential participants, I provided the participants with
the informed consent form for their review and signing. Once I obtained the signed
consent form, I scheduled a time and location for each interview. Before each interview, I
sent the participant a copy of the questions to ensure they are familiar with the questions
and asked them to address their concerns. The participants did not receive any incentive
to participate in the study.
I used open-ended semistructured questions in the interview process as the
primary source of data for an in-depth understanding of the phenomenon as suggested by
Parsa et al. (2015). The interview comprised 11 open-ended questions aligned with the
research question. I conducted one-on-one interviews at times and locations convenient to
each participant, recorded each participant’s interview using Audacity, and downloaded
the audio file. After completing the interview, I followed the recommendations of
48
Silverman (2017) and transcribed each audio recording to ensure I captured each
participant’s complete interview. I presented the transcript summary to the participants to
member-check the content and provide additional information or clarification necessary.
Researchers code and develop themes to prioritize critical concepts for analysis
(Vaughn & Turner, 2016). To enhance the reliability and validity of my research data, I
used NVivo12™ to organize, validate, and code the data to identify the subthemes and
themes. Zamawe (2015) stated that NVivo™ has features such as character-based, and
thematic coding and rich text capabilities that are crucial for qualitative data management
and is compatible with multiple research designs.
Data Organization Techniques
Proper data organization techniques increase the credibility of the study (Sutton &
Austin, 2015). After I compared the transcribed data with my interview notes, I
commenced the data cleanup and data organization process. I organized the data in the
following ways: (a) member checking the transcribed interview, (b) maintained a
reflective journal to note my thoughts, assumptions, and experiences during the research
process, (c) entered the raw data into NVivo12™, and (d) reviewed my notes against the
interview questions. Bengtsson (2016) stated that data organization is a vital component
of a credible qualitative research study. Therefore, I used the following organizational
tools: Mendeley, Microsoft Word, and Microsoft Excel for this study. I compiled the
participants’ responses from the interview questions, audio recording, and interview
notes, and saved the audio files by the participant number to maintain confidentiality.
SB1 for the owner from the first coffee shop, SB2 for the owner from the second coffee
49
shop and so on. After the approval by Walden’s Chief Academic Officer (CAO), I will
transfer all digital data about my doctoral study to an external hard drive and delete all
the data from my computer. I will store the external drive and the physical copies of the
interview transcript and member checking documents in a storage location that is only
accessible to me. I will store all the digital data and documents and keep it for 5 years
from the date of CAO approval before deletion.
Data Analysis
I used the 8Ps of marketing mix in exploring the marketing strategies of
successful coffee shop owners in Arkansas. The 8Ps of marketing mix is appropriate as
coffee shop owners may leverage these strategies to remain in operation. My use of
interview questions may answer the central question of the study. Additionally, case
study researchers use methodological triangulation for the merging of multiple methods
to reach a single conclusion which better supports that conclusion than using one of those
methods (Heesen, Bright, & Zucker, 2016). The researcher’s use of triangulation of data
sources strengthens the research study because it serves as an indication to the reader that
the research is credible (Taylor, Bogdan, & DeVault, 2015). Triangulation is a strategy
which is useful in the validation and reconciliation of data obtained after the application
of different methods of information collection on the same subject of study (Fusch &
Ness, 2015). An advantage of using a triangulation approach is that using multiple
sources of data enhances the validity of the research (Fusch & Ness, 2015).
In this qualitative multiple case study, following the guidance of Hussein (2015), I
used methodological triangulation by comparing the information I gathered from sources
50
of data including the interviews, documents, and public records from Internet sources.
Graue (2015) stated that the researcher needs to be able to interpret and explain or
analyze the data. Data analysis is one of the crucial steps in the qualitative research
process (Mayer, 2015). The process of data analysis involves the categorizing, coding,
analysis of the collected data, and the identification of significant themes (Yin, 2017).
When the interviews were complete, the responses were coded to protect privacy
(coffee shop owners names were coded as SB1, SB2, SB3, SB4, and SB5), and NVivo™
(QSR International) software was used to assist in identifying recurring words, phrases,
subthemes, and universal themes. I used NVivo12™ because the software was more user-
friendly than Atlas Ti data analysis software. Furthermore, I correlated the recurring
themes with elements from the 8Ps conceptual framework. I imported the interview
transcripts into NVivo12™ software for data coding and identified, nodes, the critical
subthemes, and themes aligned to my conceptual framework for data analysis. NVivo™
is a data analysis computer software that qualitative researchers use for the organization,
storage, and analysis of research data. Çayir and Saritas (2017) stated that the use of
computer software in data analysis allowed researchers to disseminate research result in a
more explicable manner. Furthermore, Yin (2017) proposed that researchers use data
analysis to organize and categorize data into thematic codes.
Coding the data is the method the researcher utilizes to organize and prepare the
data for the analysis (Graue, 2015). Furthermore, coding the data enables the researcher
to draw conclusions and present the findings of a phenomenon (Graue). The coding,
51
organizing, and categorizing data, and the researcher’s awareness and participant
observation are essential to the data analysis of the research topic (Chowdhury, 2015).
Reliability and Validity
The qualitative researcher must strive to ensure the reliability and validity of the
research. To ensure reliability and validity in a case study research, the researcher must
be aware of and reduce subjectivity in the interpretation of the results (Yin, 2017). Noble
and Smith (2015) opined that two of the steps to achieving reliability in qualitative
research includes the researcher taking steps to ensure the appropriateness of the research
methods and the credibility of the findings. Below, I discussed reliability and validity as
critical components of qualitative research.
Reliability
To ensure reliability in qualitative research, the researcher needs to guard against
personal bias (Noble & Smith, 2015). In qualitative research, a researcher can use
credible methods to increase the likelihood of consistent findings in future studies.
Furthermore, Noble and Smith posited that an independent researcher should arrive at
similar or comparable research findings as the researcher. Leung (2015) posited that
reliability refers to the researcher’s ability to replicate the research process and the
research outcomes. One of the steps in ensuring the reliability of the interview as a
research instrument is to obtain feedback on the interview protocol (Castillo-Montoya,
2016). The researcher’s goal is the ability to obtain the same results in a repeat of the
study (Morse, 2015). I ensured that I followed the steps suggested by Castillo-Montoya
(2016) in explicating the steps for ensuring the reliability of the interview protocol I used
52
in the study. The interview protocol is included in Appendix C. These steps included
creating an audit trail, explicating (a) the purpose of the study, (b) participant selection,
(c) data collection, (d) data analysis, (e) research findings, and (f) study conclusion.
To further ensure reliability in this study, I checked (verified) the accuracy of the
interview responses using member checking. I ensure the alignment between the purpose
of the proposed study and the central research question. I ensured that I secured the
elicited data in secure, electronic password-protected files on a USB drive which was
stored in a locked file cabinet at my home. I stored the signed consent forms and other
electronic files on my password-protected computer and backed up on a password-
protected external hard drive. I will store the external hard drive for 5 years from the
CAO approval. At the end of the 5 years, I will shred the paper documents and will erase
the data from the external hard drive. I applied standard methodical approaches to
achieve reliability in qualitative research consistent with a case study research method
(Yin, 2017).
Validity
In qualitative research, researchers seek to ensure results are credible,
transferable, and achieve confirmability in the research design and implementation
(Morse, 2015). Credibility is the assurance in the conclusion of the research findings
which address the findings from the viewpoint of the participants, transferability refers to
the applicability of the findings in other settings by adhering to data collection, data
saturation, and analysis techniques for the case study design, and confirmability is the
extent to which the participants shape the findings of the study (Sutton & Austin, 2015).
53
Confirmability in qualitative study confirms that the research data is the
participant’s narrative and is free from the researcher’s personal bias (Hussein, 2015).
Validity in qualitative research as a critical component refers to the researcher’s
appropriateness of the data, the application of research methods, and the precise nature of
the research findings (Abbaszadeh & Abbaszadeh, 2016; Noble & Smith, 2015).
Furthermore, to enhance a study’s credibility, the researcher must ensure the research
question, the research method, and research design all align with the desired outcome
(Leung, 2015).
Cypress (2017) opined that in qualitative research, the validity of the findings of
the study predicates on the researcher’s due diligence with data collection during the
research process. Researchers also opined that additional strategies to achieve validity in
the research study include peer review or debriefing, clarifying the researcher’s bias,
member checking, external audits, and triangulation (Morse, 2015). Therefore, I applied
methodological triangulation in the proposed study by incorporating interviews, data
from publicly available information on the website and social media networks of the
coffee shop to ensure validity as recommended by Marshall and Rossman (2016).
To achieve data saturation, the researcher must interview multiple study
participants using the same set of questions (Fusch & Ness, 2015). Therefore, I asked the
same set of questions to all the five coffee shop owners. I also collected data from SB
websites and SB social media platforms. I collected data from five SBs using
semistructured interviews until I reached the point of saturation. Fusch and Ness stated
that a researcher reaches data saturation when there are no new data or new codes, and no
54
new themes. Furthermore, I documented the data collection instructions to ensure
appropriate audit trail and asked the study participants to confirm their responses during
the interview and the member-checking phase.
Transition and Summary
I chose the participants for my study using a purposeful sampling technique. I
obtained obtain IRB approval before starting data collection. I collected data from study
participants through semistructured interviews using the face-to-face method and through
publicly available information about the company and social media platforms. I used the
analytical framework suggested by Houghton, Murphy, Shaw, and Casey (2015) for data
analysis. I used techniques like methodological triangulation, member checking, and
reflexivity to improve the reliability and validity of my research study. In Section 3, I
provided the presentation of the findings, application to professional practice,
implications for social change, recommendations for action, recommendations for future
research and conclusion.
55
Section 3: Application to Professional Practice and Implications for Change
Introduction
The purpose of this qualitative multiple case study was to explore what marketing
strategies coffee shop owners use to sustain business operations beyond the first 5 years
of operation. I collected data from the owners of five coffee shops located in Arkansas. I
developed the interview questions to explore the marketing strategies five successful
coffee shops used to sustain business operations beyond the first 5 years. The collection
tools comprised face-to-face, semistructured interviews, social media platforms, and
publicly available coffee shop information. The findings showed marketing strategies
including premium product, word-of-mouth promotion, and community engagement that
the owners used to sustain their business operations to provide better customer service
and increase their customer base.
Presentation of the Findings
The overarching research question of my study was: What marketing strategies do
some coffee shop owners use to sustain business operations during the first 5 years of
operation? Based on the methodological triangulation of the data sources collected, eight
emergent themes were identified from the analysis of data collected through face-to-face
interviews. The interview questions are included in Appendix A. A response was
considered a theme if it was part of the response of at least 3 SBs. In the following
subsections, I describe the study participants, the eight themes, how the participants
answered the eleven interview questions, how the data collected assisted in answering the
56
research question, and how I supported the selection of the 8Ps of marketing mix as the
conceptual framework for this study research.
Eight themes emerged from the analysis of data collected through face-to-face
interviews. The themes were (a) business operations (b) community engagement, (c)
premium products, (d) use of social media for marketing, promotion, and branding, (e)
competitive pricing, (f) location, (g) customer service and personalization, and (h) points
of marketing differentiation. One significant finding was the lack of threat to coffee shop
business by national brands. Coffee shop owners can successfully sustain business
operations despite the threat of new entrants. The findings showed marketing strategies
that the coffee shop owners used to sustain their operation to provide preferred customer
service, increase sales, and differentiate the coffee shop from competitors.
Descriptive Data of Participants
Study subjects consisted of owners of coffee shops who had survived beyond the
first 5 years of operation. The owners interviewed were from the state of Arkansas. Three
of the owners interviewed were from Northwest Arkansas, and two were from Little
Rock metropolitan area of Arkansas. The study participants’ characteristics are depicted
in Table 2.
Table 2
Personal Demographics
Small Business Owner
(SB)
Location
Years in Business
57
SB1
Fayetteville, Arkansas
More than 20 years in
operation
SB2
Siloam Springs,
Arkansas
More than 5 years in operation
SB3
Fayetteville, Arkansas
More than 20 years in
operation
SB4
Little Rock, Arkansas
More than 20 years in
operation
SB5
Little Rock, Arkansas
More than 10 years in
operation
Themes
Through semistructured interviews, social media platforms, and other publicly
available data, I gained an in-depth understanding of the marketing strategies of coffee
shop owners. The following is an analysis of the themes.
Theme 1: Business operations
One hundred percent of participants identified the need for longevity in the
ownership of the business and active participation in the day-to-day operations of the
business. Lude and Prügl (2018) opined that consumers perceived brands that show their
family association as more authentic than brands that do not. The subthemes that emerged
during data analysis were the following: (a) longevity in the ownership of the coffee shop
and (b) owners’ family business structure and active participation in the day-to-day
58
operations of the coffee shop. Theme 1- Business Operations Evidentiary Statements are
presented in Table 3.
Table 3
Business Operations
SB
Comment
SB1
I have been in business for more than 20 years. A lot of the customers are our
neighbors and friends. Actively engaged in day-to-day operations.
SB2
Actively engage – we are actively involved in the day-to-day operations of the
coffee shop, including the hiring, baking, and brand promotion.
SB3
We worked to improve an existing business, in terms of the product, marketing
and pricing of the coffee to ensure the best price available anywhere in the
region.
SB4
Robust interaction - we are focused on our four walls, but I, I know
every business owner on this street, every single one, I know them personally, I
meet with them monthly, we have meetings here or the meetings at their place.
We talk about strategies. We share ideas, and we share distributors. The success
in our business operation is networking with other coffee shop owners,
interacting with the community, customers, and frontline employees.
SB5
I own this business with one of my adult children. You know a coffee house is
no different from any other business out there. I am responsible for hiring, and
he is responsible for managing the frontline employees.
59
In this business operations theme, specifically, the longevity in the ownership of
the business, three out of five SBs (60%) had engaged in business for more than 20 years.
One had been in business for longer than 5 years, but less than 10 years and one had been
in business for more than 10 years. In my research, an SB stated: “We are a family
business and do not have an excess of employees who are not vested in the business”
(personal communication, February 25, 2019).
Data collected from the SBs in my research indicated that in all cases, the SBs
were active participants in the operations of the coffee shop. The owners engaged in the
decision making regarding the brand alongside their adult children or spouse. SB2 and
SB3 run the coffee shop with their spouses (personal communication, February 24, 2019;
personal communication, February 25, 2019). SB1 and SB5 run the coffee shop location
with the owner’s adult children (personal communication, February 23, 2019; personal
communication, February 27, 2019). One of the SBs conveyed that his job as the owner
of the coffee shop was to oversee the direction of the staff in the initiatives that they are
doing (personal communication, February 27, 2019). The responses of the SBs affirmed
the assertions of Kelly, Athanassiou, and Crittenden (2018) that a founder could be
expected to shape the family’s interaction with the external environment of the business
and influence the strategic management of the business.
Theme 2: Community Involvement and Engagement
Data collected from all five SBs indicated that four out of five SBs (80%) all but
one SB (20%) were actively engaged and involved in the community. With community
involvement and engagement initiatives, SBs gain customer loyalty, credibility, and trust
60
(Utami et al., 2018). SB can participate in the development of the community in which
they are located. SB1 (personal communication, February 23, 2019) informed that the
coffee shop was actively engaged in the community to the extent that community
organizations sought out coffee donations for their events. Theme 2 – Community
Involvement and Engagement Evidentiary Statements are presented in Table 4.
Table 4
Community Involvement and Engagement
SB
Comment
SB1
I am known in the community as the coffee guy. I created the coffee shop
because I was obsessed with the idea of creating a community space. I wanted to
create a community space where everybody would be welcomed. Coffee shops
or places can become community spaces.
SB2
Community - We care about the community. That is why we opened our coffee
shop here in the community where we live. There is a need for communal
experience, the place where people can gather. The 3
rd
place after home and
work. It is just never personally made sense to us to open in another town like a
second location or wherever in another town because we do not know that
community. We want to serve the people we see every day. Then you know
what they are going through. We know their kids. We want to be part of the
community, not just move people through like a number.
61
SB3
Not a community meeting place, even though the coffee shop is socially active
during the mornings, we are primarily concerned with providing a product that
people will appreciate.
SB4
Community immersion – what has been a strategy for us is to immerse ourselves
into the community. Those are all things that are part of our mission. I believe
that you must invest in your community and be concerned about what happens in
your immediate neighborhood that goes beyond the four walls of the coffee
shop.
SB5
We are all wrapped around an environment, that is warm and cozy, and
community friendly. We are huge into the community and participate in various
civic functions, charity organizations, entertainment and poetry nights, and Bible
studies. I am not in the coffee shop a lot. I am in the community a lot. Moreover,
I think that is what is cool about this shop is that we are an all-inclusive place
and welcome the community into our shop.
Most of the owners spent considerable time within the community. One of coffee
shop owner sponsors a lot of charitable causes within the community, which align with
the mission of the coffee shop owner, helping children, helping families, helping women,
helping those who are transitioning, whether it be out of prison or poverty. The SBs
conveyed that community involvement is a crucial ingredient to the success of the coffee
shops.
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Theme 3: Premium Products
Five out of five SBs identified the importance of having a premium product that
rivals that of the national brands. Consistent with the findings of De Sá et al. (2017) the
most essential coffee product features included taste flavor, roasting point, and brew
methods. Zhang et al. (2019) found that the rich taste of coffee was most notable for
customer satisfaction. Theme 3 – Premium Products Evidentiary Statements are
presented in Table 5.
Table 5
Premium Products
SB
Comment
SB1
We roast our own coffee beans and make every product we serve from
scratch. We have always had fresh baked cookies and other products that
complemented the coffee.
SB2
Quality products – A lot of people for convenience matters over quality,
patronize national brand but I can say all our products are better than the
national brands. We also have artisan bakery products. We make all the syrups
for all the coffees. I have a baking assistant. I bake all our pastries, scones,
cookies, and muffins. We make all the bagels by hand. We make all the
sandwiches, make everything. Our goal is to be self-sufficient eventually.
SB3
We pride ourselves in producing the best coffee products. We have had
several opportunities to put in satellite coffee shop locations, but we
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turned them down because we do not want to spread ourselves too thin to the
extent that it damages the quality of our products. Because if you
damage your reputation in a business like this, it is hard to get it back.
SB4
We only use premium coffee beans and roast our beans in-house. We
provide made from scratch, artisan products. Using time tested recipes,
we have maintained the same quality in the taste of our products for
decades. Our products are categorized by category, namely, breakfast,
lunch, and cakes.
SB5
We market a high-end premium product. We have a professional roaster in-
house and create our single origin coffee and specialty coffee blends. For us, we
cannot afford to devalue our product which explains why we give our product a
premium price tag.
Although all the SB identified the threat of a new entrant, especially a national
brand, they conveyed that the quality of their coffee products was better than the national
brands coupled with their community immersion and engagement. The responses of the
SBs reaffirm the statement of Hargis and Bradley (2011) on the importance of creating
unique products and services to build a competitive advantage.
Theme 4: Use of Social Media for Marketing, Promotion, and Branding
To grow a business and sustain business operations, a small business owner must
attract foot traffic into the establishment. Popescu (2018) opined that in other to grow
revenue, a company engages with current and potential customers in a transactional
manner. Five out of five SBs conveyed that their primary medium of advertising was
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word-of-mouth advertising. Business owners use word-of-mouth as a person-to-person
communication tool to communicate information about a brand, product, or service
(Huete-Alcocer, 2017). Coffee shops rely a lot on word-of-mouth marketing because of
their engagement in the community (SB1, personal communication, February 23, 2019;
SB4, personal communication, February 27, 2019; SB5, personal communication,
February 27, 2019). All the SBs interviewed also have a Facebook page as a medium to
engage with customers and to expose their brand.
The ability to utilize information technology in marketing is a key ingredient to
the success of a small business. SBs often lack information technology skills and
expertise (Nguyen et al., 2015). SB4 conveyed that one of the critical challenges the
coffee shop faced was transitioning from sole reliance on word-of-mouth marketing to
social media marketing and promotion of the brand (personal communication, February
27, 2019). Theme 4 – Use of Different Media for Marketing, Promotion, and Branding
Evidentiary Statements are presented in Table 6.
Table 6
Use of Social Media for Marketing, Promotion, and Branding
SB
Comment
SB1
We use word-of-mouth advertising and donations for marketing,
promotion and exposing our brand to the community. We have built trust,
loyalty, and credibility on this community over the years. We also use social
media Instagram and Facebook to reach the younger target market.
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SB2
We engage in social media to engage the community. We are deliberate
about hiring creative people who can also promote the brand via social
media.
SB3
In addition to Facebook, we also engage in listing services such as Yelp to
promote the brand and the coffee shop and regularly receive high
reviews. People come into our business based on what they see online.
SB4
We use mobile resources like print media and a bit of radio. This may
sound old-fashioned but that this how we have grown our brand in the
past. We are transitioning now into more of a social media presence
through Facebook and Instagram. We have recently enlisted the help of an
Instagram expert. Our social media presence has made an impact on our sales.
SB5
We have recently revamped his website and optimized it to achieve search
engine optimization (SEO). This SB also hired a dedicated marketing person to
handle social media accounts of the coffee shop. We also plan to promote and
sell our products through subscription sales.
Popescu (2018) affirmed that improved online reputation leads to a company’s
higher visibility on search engines. Kujur and Singh (2016) posited that the business
owners must develop a plan for their online social media presence and social media
platform preference. SB2 and SB4 conveyed that they have received greater engagement
from Instagram (personal communication, February 24, 2019; personal communication,
February 27, 2019). SB2 and SB4 also connect their Instagram account to their Facebook
66
page posting simultaneously to both platforms for maximum exposure (personal
communication, February 24, 2019; personal communication, February 27, 2019).
Popescu (2018) opined that traditional ways of finding local business were becoming
obsolete in favor of newer forms of marketing. All the SBs I interviewed have Facebook
pages. Cultivating and maintaining online customer relationships helped to maintain
ongoing interactions between the coffee shop and the customers even after leaving the
coffee shop (Xie et al., 2016). The SB1 conveyed that one of their locations received
awards for the best Instagram photos (personal communication, February 23, 2019).
Theme 5: Competitive Pricing Strategy
A business owner may use an assortment of pricing strategies when selling a
product or service. Pricing strategy is a business owner’s ability to integrate resources to
control the best price for maximum profit and maintain competitive advantage (Flatten et
al., 2015). One of the questions I asked the SBs was the pricing strategy that they used in
the first 5 years in business operation. Theme 5 – Competitive Pricing Strategy
Evidentiary Statements are presented in Table 7.
Table 7
Competitive Pricing Strategy
SB
Comment
SB1
We conduct marketing research to determine the coffee price. We are not cheap
but not overly pricey. We have never been big on pricing but the quality of the
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coffee and the customer experience. We have had a good corner in the area
coffee market for years.
SB2
Competitive pricing strategy – we have tried not to be too high or too low, but to
maintain fair but competitive pricing that our customers are willing to pay. In
some instances, we are 50 -70 cents cheaper than the national brands. Our
customers appreciate the quality of our product. We also roast our coffee beans
onsite.
SB3
Sustaining model - our pricing strategy has been and continues to be to
produce the best coffee available at the best price. We have low
overhead as we are family-owned and do not have an excess of part-time
employees. We focus on pricing the products in a manner that allows us to retain
our loyal customer base.
SB4
So, our process is very similar. It is the same as it has been in years, so that part
never really changes. What impacts our pricing strategy is food costs. We
benchmark with other coffee shop owners to maintain a
competitive pricing strategy. In the coffee shop business, you are not
going to make much money unless you change your price point or sell
more units.
SB5
Premium product pricing – I could sell my coffee for less, but then I have
devalued my product. I have a premium product, and we give it a premium price
tag. We are a coffee by choice destination. If you are running five, seven, 10%
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on earnings before interest, tax, depreciation, and amortization (EBITDA), you
are doing okay.
All the SBs recommended competitive pricing strategy to gain new customers and
retain existing ones. The responses of the SBs affirm the statement of Rajasekaran (2015)
that a business owner must pay attention to pricing to achieve a competitive advantage in
the coffee shop business and to grow the customer base. Additional effective marketing
strategies which SBs used to remain in business for more than 5 years included location,
customer service, and personalization, and points of marketing differentiation.
Theme 6: Location
The location of each coffee shop indicated a direct connection between the SBs’
desire to create a community space and sustain business operations as a coffee shop
owner. One hundred percent of the SBs conveyed that the location was an essential factor
in building and sustaining a successful coffee shop that can withstand the threats of new
entrants into the coffee business. I observed that all the SBs were in business districts or
downtown areas. One of the SBs (20%) had the added advantage of being located close to
a University. Success or failure was predicated on selecting the right location for any
business (Parsa et al. (2015). Coffee shop owners are strategic about the location of
coffee shops (Situmorang, Mulyono, & Azmi, 2018). In addition to the physical location,
the SBs also conveyed their decision for the interior décor of the coffee shops. Theme 6 –
Location Evidentiary Statements are presented in Table 8.
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Table 8
Location
SB
Comment
SB1
High traffic volume, close to a business district. In addition to the location of the
coffee shop, we wanted the internal location of each of our coffee shops to be
different. We did not want our location to look like the national chains. We serve
the same drinks at each location, but the ambiance is different.
SB2
Downtown location. We love old things and staying in downtown was important
to us. Our decision to stay downtown was mainly because downtown is where
the heart is. Third place (home, work, and coffee shop).
SB3
Right location. There was not much else this location could be
used for. The location was perfect for a small drive-through type of
business.
SB4
High traffic volume, off the highway and in a business district.
SB5
We are a destination, but we wanted a community space to have an
intimate coffee house.
In this theme, all the SBs indicated that the location of their coffee shop was a key
indicator of profits. SB5 conveyed that most of his coffee sales were derived from the
surrounding neighborhoods, commuters, and the people in the community (personal
communication, February 27, 2019). For coffee shop owners to succeed in business
operation beyond the first 5 years, SB4 conveyed that the best location might be
70
determined by examining the community dynamics and ample parking (personal
communication, February 27, 2019). By benchmarking their geographical location to
those competitors, coffee shop owners may uncover the strengths and weakness of their
coffee shops and use the insight gathered to make operational decisions (Popescu, 2018).
Theme 7: Customer Service and Personalization
Five out of five SBs conveyed that in a coffee shop business, superior
customer service and personalization of services were non-negotiables. All the SBs
indicated that to increase the customer base or foot traffic in a service-oriented business,
the owner must create a customer-friendly environment. SB2 moved the location of their
coffee shop to provide a place where they could serve a more diverse clientele. Theme 7
– Customer Service and Personalization Evidentiary Statements are presented in Table 9.
Table 9
Customer Service and Personalization
SB
Comment
SB1
A culture of customer service - we are deliberate in the way we provide
customer service and personalization. We created a coffee shop where
everyone would be welcomed and served by a diverse and eclectic front-line
staff.
SB2
Familiar faces – as owners, we are behind the counter talking to people.
People like how we serve them. We do not insist that people buy
anything when they come into our coffee shop. Paying and non-paying
customers can sit in the coffee shop and enjoy free Wi-Fi for an extended period.
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SB3
We pride ourselves in providing exceptional customer service.
We are not a traditional coffee house. We do not have any frills,
but our customer base is loyal. Enhanced customer retention strategy
SB4
Relational, not transactional – we never want to be transactional. I want it to be
about the experience someone has and how well they connect with us here.
SB5
We have created a better customer service experience, better bean
selection, and revamped the menu. I am learning how to communicate
better with and manage millennial baristas.
Two of the SBs (40%) conveyed that they were taking steps to evolve the service.
SB4 indicated that he could have tremendous improvement in how the coffee shop
connects with customers (personal communication, February 27, 2019). For example,
SB4 does not currently retain customer data for ongoing engagement.
Theme 8: Points of Marketing Differentiation
Porter (1980) recommended that successful business owners need to
differentiate themselves from their competitors in an atmosphere of aggressive
competition. To sustain business operations beyond the first 5 years, 100% of the SBs
agreed that they need to have points of marketing differentiation that transcended a great
product, price, or location. The SBs conveyed that they needed points of marketing
differentiation which provided a competitive advantage against other coffee shop owners.
Lude and Prügl (2018) recommended that managers of family-owned businesses leverage
the inherent differentiation potential of being a family-owned business in their marketing
and branding strategies. The SBs indicated that they achieved marketing differentiation
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from other coffee shop owners and the large chain coffee shops through their connection
to the community and exceptional customer service. The SBs stressed the importance of
having a close connection to the customers. Theme 8 – Points of Marketing
Differentiation Evidentiary Statements are presented in Table 10.
Table 10
Points of Marketing Differentiation
SB
Comment
SB1
We market our brand through clothing and apparel and market to
our local community in a manner that shows that we are genuine
and have a connection to the community that cannot be replicated
by national chains.
SB2
We are laidback in our approach to marketing. This approach is
innovative, and we are uncorporate in our marketing of
niche products and brand apparel
SB3
We have maintained our drive-through and a drive-up window. 80%
of our business is at the drive-up window.
SB4
Willing to accept mistakes – when we make mistakes, we own it
and make it right for the customer. If it is a significant error, we
will not charge the customer.
SB5
Create a quality product – provide the best selection of roasted beans
with a single origin and signature blends and marketing them to
high-end clientele.
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Zeriti, Robson, Spyropoulou, and Leonidou (2014) affirmed that effective
marketing strategies contributed to attracting customers to buy the products and services
of a business. In support of Zeriti et al., five out of five SBs conveyed that quality,
consistency, and value were critical points of marketing differentiation in a service
business such as a coffee shop. One of the SBs indicated that creating points of marketing
differentiation as an effective marketing strategy, meant that as a coffee shop owner, you
need to develop your niche. In addition to selling coffee products, the SB would need to
market complementary artisan products. Another SB conveyed that he was in the process
of creating a line of grab-and-go products marketed at the busy professionals who just
want to eat on the go. Another point of marketing differentiation one SB shared was
offering open pour coffee, which looked old fashioned but had become popular with
regular customers. SB5 indicated that he tries to affiliate and collaborate as a coffee shop
owner with mid-to-upscale restaurants and create private label blends to be exclusively
sold to those restaurants and bakery shops (personal communication, February 27, 2019).
Other Relevant Finding: Key challenges
Alford and Page (2015) posited that small business owners lack knowledge of
business administration including marketing strategies and technology to survive in small
business. SBs have operational challenges during the initial stage of the business
(Lotfizadeh & Shamsi, 2015; Nguyen et al., 2015). In response to question number two,
all the SBs conveyed that the most significant challenge was trying to learn the ropes of
74
business operation while implementing the coffee shop owner’s marketing strategy. One
of the SBs conveyed the following:
One of the challenges that we faced in implementing our marketing
strategy was that there was not any downtown culture or coffee culture at
all. Downtown was a forgotten part of town. So, our challenge was getting
people to come down here when there was not much to come downtown to
do.
Another SB conveyed that the biggest challenge in implementing their marketing
strategy was having a basic understanding on how to use the social media platforms and
combining social media marketing with the traditional word-of-mouth marketing that he
was accustomed to. SB5 indicated that the key challenge in implementing the marketing
strategy for the coffee shop was creating an awareness of the coffee shop after there was
a change in ownership (personal communication, February 27, 2019).
Table 11 is a depiction of how I supported the 8Ps of marketing mix as the
conceptual framework for this research.
Table 11
Mapping Interview Questions to the Conceptual Framework
Interview
Question
Number
SB Question
Conceptual
Framework
Component
Rationale/Coded theme
1.
What marketing
strategies have you used
Processes, people,
promotion
Business operations – active
engagement in the running
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to sustain business
operations during the
first 5 years of
operation?
of all aspects the business,
be all in, be true to self,
perseverance, take care of
your staff,
2.
What were the key
challenges you had in
implementing your
marketing strategies
during the first 5 years of
operation?
Processes,
physical evidence,
promotion
Learning the ropes of the
business, using a hybrid of
word-of-mouth and social
media to implement
marketing strategies
3.
How did you address the
critical challenges to
your marketing strategies
during the first 5 years of
operations?
People
Hire people who are smarter
than you, network with
other coffee shop owners,
relational first, then
transactional, enhanced
personal communication
skills
4.
What marketing
strategies helped you to
increase your customer
base during the first 5
years of operation?
Promotion
The coffee donation,
inviting interior, accepting
of all diverse patrons, word-
of-mouth, community
outreach
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5.
How did you establish
your pricing strategy
compared to the pricing
of your competitors
during the first 5 years of
operation?
Price
Food and coffee bean prices,
benchmark with other coffee
shop owners, fair but
sustainable pricing
6.
How did the physical
location of your business
contribute to increasing
your customer base
during the first 5 years of
operation?
Place
Location is crucial,
community involvement and
engagement, coffee shop
ambiance is eclectic
7.
What media were most
effective at creating
more foot traffic into
your coffee shop during
the first 5 years of
operation?
Promotion
Initially, word-of-mouth,
transitioned to social media
(Facebook and Instagram),
online listing services
(Yelp) and other form of
electronic media (Radio)
8.
What were the main
points of differentiation
that you emphasized in
your promotional
Personalization,
product,
promotion, people
Premium proud, a brand
associated with the
community., quality,
consistency, and value,
77
messages during the first
5 years of operation?
employees make the
difference
9.
How did you
merchandise your
products to be more
appealing to customers
during the first 5 years of
operation?
Promotion,
personalization,
pricing
Decide who your target
market is and do not devalue
your brand. Offer multiple
channels of trade and
customization – retail,
online, wholesale
10.
What examples of
superior service offered
by your coffee shop
during the first 5 years of
operation do you recall?
Personalization
(Quality)
Make everyone feel
welcome. Have exceptional
and well-trained frontline
employees. Own your
mistakes.
11.
What additional
information can you
provide regarding
marketing strategies you
used to sustain business
operations during the
first 5 years?
Personalization
(Productivity),
people, promotion
Take care of customers,
have a niche and artisan
products, leading by
example, uncorporate, get to
know people, build an
online presence
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Applications to Professional Practice
The findings of this study may assist coffee shop owners in Arkansas in
determining the best marketing strategies. The findings of the study could contribute
significantly to professional business practice by (a) providing a marketing guide for
operating a coffee shop and (b) evaluating current and future marketing strategies to
enhance their competitive advantage. In the study, the SBs indicated that their
involvement and engagement in the community and the adoption of new media were
crucial aspects of the sustenance of their coffee shops and an increase in the customer
base in a competitive coffee shop environment.
The SBs identified providing premium coffee and artisan products brought in
regular and loyal customers into the shop. The findings of this study apply to coffee
shops in several ways including community engagement, social media adoption, location,
and front-line business operations. Social media is a crucial factor in minimizing
marketing challenges (Ogbuji & Papazafeiropoulou, 2016). As more people use third
places such as coffee shops as a public gathering place outside of home and work (Van
der Merwe & Maree, 2016), the owners’ active community engagement contributes to the
strength of a community (Yuen & Johnson, 2016).
By conducting this research study, I add to the existing body of knowledge
regarding marketing strategies of coffee shops. Emergent themes of the study included
community involvement and online social media engagement. The results of this study
contribute to business practice by providing information to individuals who are
considering opening a service business and specifically to coffee shop owners who want
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to improve the marketing strategies of coffee shops. Mukherjee and Shivani (2016)
opined that the consideration of the traditional marketing mix elements of product, price,
place, and promotion as well as the newer elements of participants, physical evidence,
and the process might assist a business owner in achieving the marketing objectives in
services. The 8Ps of marketing mix for coffee shop owners is a visual representation of
the components of marketing mix that is designed to enhance a coffee shop owners’
marketing mix . The model includes 8 themes that emerged from my study (Figure1).
According to Goldsmith (1999), the 8Ps of marketing mix were designed to
enhance the survivability of a service-oriented business. In my study, I found that the
owners of coffee shops executed marketing strategies that were determined by the
community in which they were located. Figure 1 shows the themes which emerged from
my study.
Figure 1
8Ps of Marketing Mix for Local Coffee Shops
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Implications for Social Change
The poor execution of marketing strategies and technology is one of the factors
contributing to small business failures (Alford & Page, 2015; Lotfizadeh & Shamsi,
2015). By implementing more effective marketing strategies, coffee shop owners could
sustain the business operation. Stephan, Patterson, Kelly, and Mair (2016) posited that
social change requires an intentional commitment to societal transformation. Positive
social change requires a commitment to contribute to society in a substantial and positive
manner.
Positive social change may result in a reduction in the number of coffee shop
failures, thus improving employees’ worth and dignity, and reducing the unemployment
rates, which can result in building stronger communities through gainful employment.
The findings of this study identified multiple ways for owners of coffee shops to
contribute to social change in their community by (a) sustaining the operation of coffee
shops in local communities, (b) contributing to new job creation, and (c) contributing to
regional economic growth. By adopting the recommendations for further action, owners
of coffee shops may avoid the downside of coffee shop failure by using the
recommendations as a blueprint for maximizing marketing strategies, increasing their
customer base, and enhancing competitive advantage against competitors.
Recommendations for Action
Having marketing strategies is vital to the sustenance of coffee shops. Nguyen et
al. (2015) opined that adopting effective marketing strategies is pertinent to the
sustenance of coffee shops. The findings of this study are not only significant for existing
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coffee shop owners but also valuable for potential coffee shop owners. Using the
strategies identified in this study may (a) reduce the challenges coffee shop owners face
in the business operations; (b) enhance owners’ ability to maximize their current
marketing strategies, and (c) expand owners’ capacity to integrate new marketing
strategies to create points of differentiation which may result in a competitive advantage.
Some coffee shop owners lack marketing strategies for sustaining business
operations beyond the first 5 years. The study findings indicate that coffee shop owners
can use a combination of marketing strategies to sustain their businesses. I recommend
coffee shop owners should engage in their communities, adopt social media, offer
premium and artisan products, and provide exceptional customer service for sustaining
their business. Lude and Prügl (2018) also recommended that the managers of family
firms should include statements about their family background in their branding strategy
for differentiation purposes. The family background could be depicted in the form of a
tagline on the brand logo. For example, the coffee shop owner could include the tagline:
a family tradition since 1972. I will provide the results of this study to interested
stakeholders through community presentations, publications in business and academic
journals, and consulting opportunities geared to coffee shop owners. The findings of this
research should not be limited to coffee shop owners, but they should also be
disseminated to other channels such as academic journals, prominent scholars of the
marketing mix theories, the Small Business Administration, and local chambers of
commerce.
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Recommendations for Further Research
I conducted a qualitative multiple case study to explore what strategies some
coffee shop owners use to sustain business operations beyond the first 5 years. I explored
and uncovered common themes that emerged from the participant face-to-face interviews
and social media networks. I selected the qualitative research method so I could better
explore and understand the thought processes of my study subjects. The limitations
affecting this multiple case study are the choice of an exploratory multiple case study of
five small business owners of coffee shops from Arkansas may not yield enough data to
answer the research question and may not be representative of the population of coffee
shop owners in the United States or other countries.
The first recommendation for the future study is how to overcome the challenge
of coffee shop owner face in continuing to engage and remain relevant in the community
as changes occur in the community. Yuen and Johnson (2016) opined that third places
(coffee shops) were gathering places that contributed to the strength of a community.
Coffee shop owners could help foster a sense of community by incorporating local
concepts in the interior design, décor, and having exceptional front-line service.
The second recommendation for further study is how to overcome the challenges
of social media adoption. Ogbuji and Papazafeiropoulou (2016) posited that in the
dynamic marketplace, the small business owner might face marketing challenges without
a proactive social media adoption. The SBs I interviewed conveyed that they needed to
leverage the possibilities of social media in promoting their coffee shops. Through social
media and social location marketing, customers can share their experiences and check in
83
with others (Situmorang et al., 2018). Instagram is based on visual content such as
posting of pictures, and Facebook has the capability for the customer to check into the
coffee shop Check-ins show up in the feeds of that customer’s Facebook friends, creating
opportunities for people to see the business on Facebook. Furthermore, Chua, Deans, and
Parker (2015) posited that blogs are a tool that can be used by business owners for
branding, managing reputation, and promoting their online presence. Coffee shop owners
can use blogging to drive engagement on social media.
The third recommendation for further study is how to overcome the challenge of
improving front-line engagement with customers and consistently providing exceptional
customer service. Increasing levels of customer service result in customer satisfaction and
may produce more profits (Goldsmith, 1999). Stock et al. (2016) suggested that frontline
employees may help the customer by making product recommendations, recognizing
customers’ preferences. Coffee shop owners must concentrate on efforts to improve
consistency and service quality.
Coffee shop owners interviewed care about quality, consistency, and value.
Customers usually appreciate the quality of coffee based on their taste and presentation
(Zhang et al., 2019). Prayag et al. (2016) highlighted the importance of implementing
service quality and service delivery components impacting customer service. A study
conducted outside of Arkansas may determine whether the findings of this study are
peculiar to Arkansas only or if the findings are transferable to a broader geographical
area. Furthermore, researchers should employ a different qualitative research design, such
as phenomenology or ethnography or a quantitative research design such as experimental
84
to explore further marketing strategies for the continued sustenance of coffee shop
operations.
Reflections
The purpose of this qualitative multiple case study was to explore the marketing
strategies that coffee shop owners in Arkansas use to sustain business operations beyond
the first 5 years. In conducting this study on coffee shops, I understood that in the
competitive coffee shop environment, the coffee shop owners could use diverse
marketing strategies to sustain and expand business operations. From the study findings, I
developed an in-depth understanding of the research problem and observed that coffee
shop owners use a mix of marketing strategies to sustain their businesses. My reflection
of the coffee shop owners includes a deeper appreciation for their resilience and
commitment to the business.
My reflection on the DBA journey includes the knowledge of the research
process, finding ways to overcome possible personal bias in research, and preparing to
become a scholar-practitioner. Through the doctoral research study process, I have
improved my understanding of the components of conducting academic research while
considering the impact of my research on social change. Because of this study, I look
forward to assisting small business owners in the development of marketing strategies.
Conclusion
The purpose of this qualitative multiple case study was to explore what strategies
coffee shop owners in Arkansas state use to sustain business operations beyond the first 5
years
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Using open-ended questions, I conducted semistructured interviews with 5 coffee
shop owners to collect data to answer the research question. Data were derived from an
in-depth analysis of 11 semistructured interview questions answered by 5 successful
coffee shop owners, social media platforms, other publicly available data, and member
checking. The data reached saturation when the coffee shop owners did not provide any
new information, and no new themes emerged (Fusch & Ness, 2015). I used NVivo12™,
computer-assisted qualitative data analysis software to organize and analyze data. Eight
themes emerged from the thematic analysis of data to explore the marketing strategies
coffee shop owners in Arkansas use to sustain business operations beyond the first 5
years. The themes were (a) business operations (b) community engagement, (c) premium
products, (d) use of social media for marketing, promotion, and branding, (e) competitive
pricing, (f) location, (g) customer service and personalization, and (h) points of marketing
differentiation.
The marketing strategies identified in the findings provided solutions that owners
of coffee shop owners and their stakeholders can use to grow and sustain their business.
One significant finding was the lack of threat to coffee shop business by national brands.
Coffee shop owners can successfully sustain business operations despite the threat of new
entrants. The findings showed marketing strategies that the coffee shop owners used to
sustain their operation to provide preferred customer service, increase sales, and
differentiate the coffee shop from competitors. Using the 8Ps of marketing mix as a lens
for this study, which involved coffee shop owners, this study may fill a gap in the
literature. The study findings included the importance of community involvement and
86
engagement, location, the adoption of social media, and benefits of using the appropriate
mix of marketing strategies to sustain coffee shop operations beyond the first 5 years.
87
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Appendix: Interview Protocol
Introduction to the Interview
My name is Abi Adeleke, a student at Walden University pursuing a doctoral
degree in Business Administration specializing in Marketing. Thank you for accepting to
participate in this study. I am conducting a qualitative multiple case study to explore
marketing strategies of successful coffee shop owners in Northwest Arkansas. The length
of this interview should be about 30-45 minutes. The interview format is open-ended
questions. Please feel free to seek clarity on questions and add more detailed explanations
and personal views as you see appropriate.
Things to remember
• Switch the mobile phone to silent mode
• Collect the signed consent form
• Get approval to record the interview
• Assure participant all responses will be confidential
• Start interview and audio recording simultaneously and take notes
• Observe the participant for non-verbal body language and gestures
• Collect detailed responses to the interview questions
• Not to interrupt the participants and to carefully listen to what they are saying
(active listening)
• Ask follow-up probing questions to get more in-depth information.
After the Interview
113
I will paraphrase the participant’s responses to each question in my own words.
After 5 days, I will then reach out to the participant to ensure I accurately interpreted the
participant’s intended message for each question. If the participant acknowledges the
accuracy of my paraphrased responses, then I will document the responses in my report.
Additionally, if the participant says my paraphrased responses are not accurate, I will
correct my paraphrased responses and record the previous interpretation of the responses
and the newly corrected paraphrased responses in my report. I would also thank the
participant(s) for taking their time to participate in the study and then give them contact
numbers in case they would have followed up questions and concerns.
