Does physical environment of coffee shops in Korea really matter for customers to visit

Abstract

It is the aim of this study to propose a strategic suggestion for coffee shop owners or managements to stay competitive in the industry. The following steps were taken in this study. First, through a reviewing of related literatures, components of physical environment such as facility, ambience, and social factors were thoroughly reviewed to build a hypothetical construct with emotional response, and relationship quality. Second, a research model based on the hypothetical construct was set up. Third, a survey questionnaire designed for online was sent out through various SNS on September 20th, 2016 and closed on September 30th, 2016. Total 300 questionnaires were collected and after discarding 30 for inappropriateness, 270 responses were used for the final analysis. Finding from this study suggested that physical environment did have a significant relationship with customers" emotional response and therefore affected relationship quality. Rather than the standardized physical set-up of most franchised coffee shops, distinctive and differentiated physical environment and service could gain a competitive edge over competitors.