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Explore the Concepts of Relationship Marketing Within Taiwan Coffee Market

Ying-Yueh Su, Yen Ku Kuo and Bang-Lee Chang
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Ying-Yueh Su: Chinese Culture University, Taiwan
Yen Ku Kuo: National Taiwan Normal University, Taiwan
Bang-Lee Chang: Chinese Culture University, Taiwan

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Abstract: The hot drinks market in Taiwan had traditionally been dominated by tea consumption, rather than coffee, however, in the recent years, the coffee consumer population in Taiwan has seen a rapid growth and become the focus of the world coffee industry. As the coffee drinking culture in Taiwan continued to boom, more cafés were opened. In an addition to a wide variety of coffee shops and coffee chains speedily expanding new locations set up. Fast food restaurants and convenience stores are also joining this market to have a share of this big coffee consumption pie. This study applied the concepts of relationship marketing including interaction, emotional contents, customer lifetime values and customization in order to have better understanding the Taiwan café shops performance. This research used in-depth interviews with café operators about how they implement RM to build customer relationships. 16 interviews were conducted with local café operators in Taipei area. All interviews were taped, transcribed, and analyzed. The findings suggest that the development of products meeting the coffee consumers’ needs and preference based on a true understanding of the thoughts and behaviors and even luring the customers with the design of the shops are the major issues. Variable add-value products such as the coffee gift boxes, coffee cups, coffee making equipment and coffee makers have been received considerable attention for the business opportunities. In addition, the location of coffee shops should be carefully concerned before entry this market because consumers often prefer the convenience of store-bought coffee.

Keywords: Relationship Marketing; Interaction; Emotional Contents; Customer Lifetime Values; Customization; Coffee Shops (search for similar items in EconPapers)
Date: 2016
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