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International Master of Business Administration Program (IMBA) National Taichung University of Education International Master of Business Administration Program (IMBA) National Taichung University of Education The Effect of Brand Experience and Customer Satisfaction on Brand Loyalty: A Case Study of Tom N Toms Coffee in Mongolia A thesis submitted by Enkhjargal Boldbaatar Under supervision of Chaang-Yung Kung July 2018 ACKNOWLEDGMENT After intensive period for a year, today is day for writing this note of thanks. I would like to express my deepest appreciation of gratitude to people who contributes in someway to the work described in my thesis. I would first like express sincere gratitude to my advisor professor PhD, Chaang-Yung Kung for his constant support and encouragement with patience, motivation, enthusiasm and immense knowledge. My sincere appreciation goes to the Department of International Master of Business Administration in the National Taichung University of Education for their assists and contribution full support during this thesis. I would also like to thank all my teachers, classmates and all friends for their big support. I have learned many things since I became a student at NTCU. A very special thank goes out to my family. I might not have been complete this thesis without their love and support me spiritually throughout my life from my father Boldbaatar.D, mother Baasanjargal.G and all of my family. CONTENT CONTENT ............................................................................................................................................. 3 LIST OF FIGURE .................................................................................................................................. 5 LIST OF TABLE .................................................................................................................................... 6 ABSTRACT ........................................................................................................................................... 7 CHAPTER ONE: INTRODUCTION ...................................................................................................... 9 1.1 BACKGROUND OF THE RESEARCH ....................................................................... 9 1.2 RESEARCH MOTIVATION ...................................................................................... 15 1.3 RESEARCH PURPOSE AND QUESTIONS .............................................................. 16 1.4 SIGNIFICANT OF THE RESEARCH ............................................................................ 17 1.5 RESEARCH OUTLINE .................................................................................................. 17 1.6. DEFINITION OF THE TERM ....................................................................................... 17 CHAPTER TWO: LITERATURE REVIEW ......................................................................................... 19 2.1 BRAND........................................................................................................................... 19 2.2 BRAND LOYALTY ....................................................................................................... 20 2.3 BRAND EXPERIENCE .................................................................................................. 23 2.4 CUSTOMER SATISFACTION ....................................................................................... 25 2.5 RELATIONSHIP BETWEEN BRAND EXPERIENCE, CUSTOMER SATISFACTION, AND BRAND LOYALTY .................................................................................................... 26 2.5.1 The relationship between Brand Experience and Customer Satisfaction................................. 26 2.5.2 The relationship between Customer Satisfaction and Brand Loyalty ...................................... 27 2.5.3 The relationship between Brand Experience and Brand Loyalty ............................................ 28 2.5.4 Hypothesis and Conceptual framework ................................................................................. 28 CHAPTER THREE: RESEARCH METHODOLOGY .......................................................................... 30 3.1 RESEARCH APPROACH .............................................................................................. 30 3.2 DATA COLLECTION .................................................................................................... 31 3.3 DATA ANALYSIS ......................................................................................................... 34 3 CHAPTER FOUR: RESEARCH FINDINGS ........................................................................................ 36 4.1 PILOT TEST .............................................................................................................. 36 4.2 DESCRIPTIVE RESULT ........................................................................................... 36 4.2.1 Demographic Profiles ........................................................................................................... 36 4.2.2 Consumer behaviors at Tom N Toms Coffee ......................................................................... 37 4.2.3 Brand Experience, Customer Satisfaction, and Brand Loyalty ............................................... 39 4.3 FACTOR ANALYSIS AND RELIABILITY TEST .................................................... 42 4.3.1 Brand Experience ........................................................................................................... 42 4.3.2 Customer Satisfaction .................................................................................................... 43 4.3.3 Brand loyalty ................................................................................................................. 44 4.4 HYPOTHESIS RESULTS .......................................................................................... 45 CHAPTER FIVE: CONCLUSION........................................................................................................ 48 5.1 CONCLUSION ............................................................................................................... 48 5.2 RECOMMENDATION ................................................................................................... 49 REFERENCE ....................................................................................................................................... 51 4 LIST OF FIGURE FIGURE 1 PER CAPITA CONSUMPTION IN MONGOLIA .................................................. 10 FIGURE 2 GROWTH OF TOM N TOMS COFFEE CHAIN STORES .................................... 12 FIGURE 3 TOM N TOMS COFFEE IN MONGOLIA ............................................................. 13 FIGURE 4 TOMN N TOMS COFFEE PRODUCTS................................................................. 13 FIGURE 5 TOM N TOMS COFFEE PRODUCTS 2 ................................................................ 14 FIGURE 6 TOM N TOMS COFFEE PRODUCTS 3 ................................................................ 14 FIGURE 7 TOM N TOMS COFFEE OFFERS A VARIETY OF COFFEE-RELATED PRODUCTS ............................................................................................................................. 15 FIGURE 8 FRAMEWORK OF THE RESEARCH ................................................................... 29 5 LIST OF TABLE TABLE 1 QUESTIONNAIRE SCALE AND MEASUREMENT ............................................. 32 TABLE 2 RELIABILITY RESULT .......................................................................................... 36 TABLE 3 DEMOGRAPHIC INFORMATION ......................................................................... 37 TABLE 4 FREQUENCY OF PURCHASING TOM N TOMS COFFEE .................................. 38 TABLE 5 TYPE OF COFFEE PURCHASE AT TOM N TOMS .............................................. 38 TABLE 6 PURCHASE OTHER BEVERAGE AT TOM N TOMS COFFEE ........................... 38 TABLE 7 PURCHASE COFFEE BEAN AT TOM N TOMS COFFEE FOR DRINKING AT HOME ...................................................................................................................................... 39 TABLE 8 MEAN VALUE OF BRAND EXPERIENCE ........................................................... 40 TABLE 9 MEAN VALUE OF CUSTOMER SATISFACTION ................................................ 41 TABLE 10 MEAN VALUE OF BRAND LOYALTY .............................................................. 42 TABLE 11 FACTOR ANALYSIS AND RELIABILITY TEST FOR BRAND EXPERIENCE 43 TABLE 12 FACTOR ANALYSIS AND RELIABILITY TEST FOR CUSTOMER SATISFACTION ...................................................................................................................... 44 TABLE 13 FACTOR ANALYSIS AND RELIABILITY TEST FOR BRAND LOYALTY ...... 44 TABLE 14 REGRESSION RESULT OF CUSTOMER SATISFACTION VS BRAND EXPERIENCE .......................................................................................................................... 45 TABLE 15 REGRESSION RESULT OF BRAND LOYALTY VS CUSTOMER SATISFACTION AND BRAND EXPERIENCE ...................................................................... 46 6 The Effect of Brand Experience and Customer Satisfaction on Brand Loyalty: A Case Study of Tom N Toms Coffee in Mongolia Advisor(s): Dr.(Professor) Chaang-Yung Kung International Master of Business Administration National Taichung University of Education Student: Enkhjargal Boldbaatar International Master of Business Administration National Taichung University of Education ABSTRACT Coffee shop business is well known, and mature business
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