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A New “Joe” On the Block Case Study

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Updated: Oct 3rd, 2019


A coffee shop in the United States is a considered a competitive and lucrative retail business. The most dominant coffee shops in the United States include Starbucks, McDonald’s, Dunkin’ Donuts and Burger King (Smith 142).

In addition, the retail industry has many local competitors that are located in almost every city and town. Consumers’ preferences on coffee are based on taste, price and experience (Tucker 19). Joe needs to conduct a thorough research on coffee shop business.


A Cup of Joe business idea is a brilliant idea and implies the growing demand for coffee in the United States. Although the business name is appealing and implies a sense of creativity, the retail business is influenced by other critical factors. Among the most notable factors in the industry include taste, customer experience and market research.

Joe has to make a critical decision in regard to the new market research. In this context, Joe must consider three factors that include assessing the reliance of the previous research, requirements of a primary research and reliability of both secondary and primary research methods.


The objective of the Joe’s research is to achieve relevant deliverables that are key to success of the business. The objectives include:

  • Ascertain the appropriate business location.
  • Establish the correct preferences for coffee as mentioned by the customers.
  • Determine factors that influence the success of a coffee shop.
  • Determine the appropriate price and quality of the coffee product.


From the primary research, several issues emerged in regard to the reliance of the study. For example, Starbucks emerged as the most preferred business entity by the customers. From the sample 100 customers, Starbucks emerged as a huge enterprise and can provide quality coffee.

Perhaps, this explains why the price of Starbucks’s coffee is slightly high compared to McDonald’s, Burger King and Dunkin Donuts. From the research findings, the study on the coffee taste did not include any data to reveal how the variable was measured. Perhaps, a measurement scale on taste should be used to cover the flaw of the study.

The flaws of the studies imply that Joe did not follow the required stages of a marketing research process. However, the initial marketing research was qualitative in nature since it was based on secondary resources. Apparently, the researcher relied on internet information and magazines.

The qualitative marketing research stage is important for gathering the general view about the market, competitors, products and prices. On the other hand, Joe’s proposal to conduct primary research shows the importance of using quantitative marketing research.

Quantitative marketing research is conducted by sampling customers who prefer coffee. In this context, recording customer’s preferences and taste on product, as well as, price are a part of quantitative marketing research. Apparently, a quantitative marketing research is effective in determining the reliability of the available market information.


The preferences of the American consumer are not the same across the country. Across the states, consumers prefer locally-owned coffee shops that understand the social-economic setting of the region.

On the other hand, large-scale coffee shop retailers such as Starbucks, McDonald’s, Dunkin Donuts and The Burger King are preferred in large cities where many of the customers are middle-income earners.


Joe can hire a consultant to conduct the research. A consultant has the adequate resources and competency to conduct an in-depth research. In addition, Joe’s decision to start the business will be based on the consultant’s ability to outline three deliverables that include size of the market, popularity of coffee shops and types of coffee (Tucker 4).

Works Cited

Smith, F. Andrew. Fast food and junk food: An encyclopedia of what we love to eat. Santa Barbara: ABC-CLIO, 2011. Print.

Tucker, M. Catherine. Coffee culture: Local experiences, global connections. New York: Routledge, 2011. Print.

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