- Free Essays, Term Papers & Book Notes

Coffee Time - Research and Decision Making

By:   •  Case Study  •  1,848 Words  •  November 27, 2009  •  1,012 Views

Page 1 of 8

Essay title: Coffee Time - Research and Decision Making

Research and Decision Making

Before any research is conducted, the time, location, workers, target audience and the amount of income needed for the business is considered. Coffee Time (CT) recognized an emerging market in South Asia (India). In order to determine how much revenue that may be obtained from each outlet, CT employed Total Access (TA), a market research company, to research the cities and potential target audience in India. As demonstrated by CT, an organization needs to be innovative, open to change, and flexible in order to remain productive (McShane & Glinow, 2004).

For CT to compete fiercely in India, it may need to expand into affluent and densely populated territories, with �special flavors’ and coffee bars, to ensure that the targeted market is reached. This may require TA to be familiar with the cultural outlook, lifestyle, demographics, and infrastructure of the population in India.

What does CoffeeTime truly know about the various locations in India? What does CoffeeTime not know that it might learn from further research?

Coffee Time decided to expand to India, because of the awareness that India’s economy is good for business, especially coffee. Doing so requires CT to form an alliance with TA, to assess the area and determine the sites that may be very lucrative. Because of the exotic and aromatic coffee flavors that CT offers, people from various lifestyles may be attracted. India’s booming market and its traditional and modernized values are also added attributes to the coffee sales in the area. India’s economy is also strong because of its prospects in technology. Hence, Brad Collins, Senior Vice President of Marketing for CT, proposed opening other sites in India. Before making such move, CT needs to determine where to locate the coffee bars (what cities), age groups and the population distribution of the area (Research Simulation, 2008).

The first step in locating a potential space for business is to have TA survey India and come up with the demographics of the population that may be interested in CT’s product. TA’s findings (secondary data) may reveal that 12 Indian cities are very affluent and have a mixture of conservatives and modernized people. Brad Collins believes that simple random and cluster sampling may provide data to understand the perceptual map of the site (Cooper & Schindler, 2005).

How do the limitations of the data available to CoffeeTime affect the validity and reliability of the data?

All predictive studies, performed via primary or secondary research, are prone to errors; hence, CT must ensure that its data is valid and reliable. Although CT uses an extensive budget, outside data from TA and direct surveys, its research may still have some limitations. For this purpose, internal validity is the research tool used to measure its worth. Content validity is another way to judge the accuracy of every sample examined. The elimination of certain age groups from the study organized can cause content validity to become limited. Content validity is also at a disadvantage, because CT lacks the staff to test the data to ensure its authenticity. Finally, predictive criterion-related soundness must possess four qualities like relevance, freedom from bias, reliability, and availability to be complete. These attributes can be improved on as needed (Cooper & Schindler, 2003).

The reliability of the data depends on the measurement procedures. For example, if the same study is conducted on the same people, but at different times or if the experiment fluctuations over time, the consistency of the data may be invalid. Another instance, where unreliable data may occur, is if CT were to ask why people would favor a certain coffee bar over others, in a variety of ways to judge its accuracy. The same people interviewed may answer differently each time that question is asked (Cooper & Schindler, 2003).

As the Manager for Business Development, what further data can be seen before deciding where to locate CoffeeTime outlets in India? How should CoffeeTime obtain a random sample?

The Manager of Business Development for CoffeeTime evaluates the data from the cities researched for potential success. Other relevant data from competitors may be an excellent way to determine the best places for coffee bars. Descriptive statistics may depict how long the companies have been in business and their financial reports may expose their profitability. The mean, median, and mode of the collected data can convince the CT manager that the benchmarked companies are doing well financially. The information gathered is meant to display the amount of traffic and time customers spend in a coffee shop per visit, how many coffee bars are in the area, rate

Continue for 7 more pages »  •  Join now to read essay Coffee Time - Research and Decision Making and other term papers or research documents
Download as (for upgraded members)
Citation Generator

(2009, 11). Coffee Time - Research and Decision Making. Retrieved 11, 2009, from

"Coffee Time - Research and Decision Making" 11 2009. 2009. 11 2009 <>.

"Coffee Time - Research and Decision Making.", 11 2009. Web. 11 2009. <>.

"Coffee Time - Research and Decision Making." 11, 2009. Accessed 11, 2009.