A case study of using multi-dimensional Scaling analysis to position
the brand perception of coffee chains stores in the Tao-yuan area
Chen, Ying-jan & Chen, Yen-you
Abstract
The increase of nationally consumptive capacity in recent years has resulted in the proportionate increase of
attention devoted to the quality of life. Such devotion can be seen in the number of the growing population of
frequent coffee buyers. However, these customers are not more satisfied with merely the quality of coffee
and services offered at a coffee shop than with the experience and ambience created by a coffee brand. This
reveals that the spending habits, majorly shaped by functional benefits in the past, has given in to others
related to expression of personal tastes, search for novelty, or creation of memorable experiences.
Simultaneously, the marketing strategy has changed from the traditional one with all emphasis on the
functions and benefits of products into the one whose focus is on creating experience for customers. The new
trend observed here aims at providing sensational, affective, cognitive, behavioral, and relational values, in
contrast with the functional benefits, and brings entertainment, sensation, strong emotions, and original
challenges into focus. Seeing the transition from the product to brand, we were deeply convinced that it’s
worth studying customers’ perception and awareness of coffee brands. The subjects of our study, the
customers at seven coffee chain stores selected to represent different types in the Tao-yuan area, were
examined with the multi-dimensional scaling (hereinafter referred to as MDS) analysis method and cluster
analysis (hereinafter referred to as CA) in hope of shedding light on their perception of coffee brands.
The data collected from the subjects in question in regard to brand perception would later be used for
positioning assessment. To find out the differences among these brands, competition cluster analysis,
benchmark analysis, and competition situation assessment were made, following methodological and
theoretical framework.
Our findings after MDS analysis and CA suggested that Starbucks of all the seven selected brands fell in the
leading group, winning with high scores of customers in the category of brand awareness and location for
gathering and occasion to begin with. Secondly, although Dante Coffee and e Coffee fell into the same group,
Dante was perceived better in brand awareness. Thirdly, 85°C and Mc cafe were categorized in the same
group. Fourthly, 7-ELEVEN enjoyed high brand awareness but was perceived for less of a location for
gathering and occasion. Moreover, Familymart and Mr. Brown were grouped for failing in both brand
awareness and location for gathering and occasion. Finally, e-Coffee and Dante Coffee didn’t receive
perception as location for gathering and occasion and positive brand awareness, and were categorized in the
same group for that.
Key words: coffee chain stores, multi-dimensional scaling analysis/MDS, brand awareness
陳英任 萬能科技大學觀光與休閒事業管理系講師 師範大學地理學系博士
2.陳彥佑 聖母醫護管理專科學校講師
本篇研究感謝學生：黃向宇、黃瑜君、陳育駿、陳永哲、邱永翰、辜濱全、張雅筑、傅湘怡協助調查
1. Introduction
1.1 Motivation
In Taiwan, enjoying a cup of coffee was considered a luxurious way for consumers to switch off their
negative emotions caused by the stress of juggling work and family. Observing the increasing dependency
upon coffee for relaxation, a plenty of coffee shops, with the aim of providing accessible and affordable
coffee, opened for business and thereafter the idea of coffee chains stores was popularized.
According to the data from Taiwan Chain Store Almanac, the number of coffee shops in Taiwan grew
considerably with conditions of leisure and culture improving, accompanied by the fact that the market share
of canned coffee climbed at the rate of 4.28 percent annually. In the soft drink market of 1997 in Taiwan, the
sales of canned coffee, which were only second to bottled water and whose growth rate was ranked as second
fastest, were the only drink that had grown continuously in the recent decade. (Bi-zhen Fang, 2000). It was
also commonly noted that such affective benefits as expression of personal tastes, search for novelty, or
creation of memorable experiences serves stronger buying motives than the functional ones with a stress on
the problem- and-solution appeal in terms of purchasing coffee. That means that the marketing strategy in
that realm has changed from the traditional one with all the emphasis on the functions and benefits of
products into the one whose focus is on creating experience for customers; in other words, the strategy which
aims at providing sensational, affective, cognitive, behavioral, and relational values, in contrast with
functional benefits, hereby brings entertainment, sensation, strong emotions, and original challenges into
attention in marketing coffee brands. However, there has been relatively rare research conducted on
consumption experience of consumers in different coffee chains stores. This study, therefore, attempts to
examine the brands of coffee chain stores in consumers’ perception, under the theoretical framework of
experiential marketing proposed by Schmitt (1999), using a sample selected from seven coffee chain stores
in the Tao-yuan area: Starbucks, 7-ELEVEN, Familymart, Dante, e-Coffee, 85°C, McDonald.
1.2 Purpose of this research
Our research hopes
(1) to reach a better understanding of the consumer market segmentation on these seven coffee chains
stores in question
(2) to find out the room for improvement from the consumer perceptions about the brand positioning of
these seven coffee chains stores in question
(3) to identify the store images for these seven coffee chains stores in question
1.3 Research subjects and area
(1) Research subjects:
The customers who buy coffee at coffee chain stores are selected to accomplish the purpose of this study,
which is to analyze the consumer brand perception by making comparison among the coffee chains stores
in the Tao-yuan area.
(2) Research area
Famous coffee chain stores and convenient stores which offer ground coffee are targeted on our research
list, ranging from Starbucks, Seven-eleven, Familymart, Dante, e-Coffee, 85°C, McDonald.
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2. Literature reviews
2.1 Definitions and types of chain store systems
(1) Definitions of chain stores
a. Chain stores are defined as groups of retail outlets, consisted of two units or more, owned by one
firm. Each unit usually has similar or identical products or services, designs and layouts, and unified
purchases in operation. (Schewe and Smith, 1983)
b. Four characteristics of chain stores are identified as follows:
i) similar products sold at more than one spelling spots(Mason, Mayber and Ezell, 1991)
ii) similar architecture
iii) unification purchase
iv.) joint ownership
c. Chain store operation refers to the business operation which is run and managed in mutual
cooperation, using the same slogans, logos, and corporate identity system. A number of retail outlets
are regarded as chain stores only when they are operated under a standardized method and model,
sharing similar combination of products and services, marketing strategies, and store layouts and
interior designs (Niu, 1995).
d. Some papers proposed broad and narrow definition for the concept of chain stores with functional
and formal conditions.
i.) Narrow definition of chain stores:
Chain stores are defined narrowly as a group of retail outlets that share a unified store image and
central management, and can substantially perform chain functions.
ii.) Broad definition of chain stores:
Chain stores are defined broadly as a group of retail outlets that use the same slogans, logos, and
signs to create a unified store image to consumers. Such definition is made for appearance’s sake.
2.2 Definition of brands
Kotler pointed out that a brand is the promise sellers make “to consistently provide the identity of specific
product, service and business,” and can deliver six levels of meaning -essence, benefits, values, personality
and users-to its buyers (Kotler, 2000). Brands can add values to their products, and is a make-up of
psychological and physical elements. On the one hand, the quality of a product is connected with its brand
name and the corporation thereof, simultaneously differentiating themselves from others. On the other hand,
the psychological part of a brand ascertains consumers with consistency, coherency, and relevancy of its
products or services, from the communication, guarantee, to practice. These two parts are both crucial in
making a brand, and thus the value of which conveys multiple meanings to consumers- the quality of the
tangible products and, psychologically, the confidence consumer s have for the brand. Knox and Bikcerton
stresses the importance of a brand from the psychological viewpoint, pointing out that the major role of
brands is to create a distinction and preference for a product or service in the mind of consumers. (Knox and
Bickerton, 2003)
Keller contends that brands come from the brand knowledge of consumers. Brand knowledge includes two
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components: brand awareness and brand image. Brand awareness is the probability that consumers are
familiar about the life and availability of the product. It is a degree to which consumers precisely associate
the brand with the specific product. Brand awareness includes brand recognition and brand recall. Brand
image reflects the overall impression formed by various associations with the brand in consumers’ mind. The
preference, strength, and uniqueness of those associations with brands are contributing factors to variations
of brand knowledge and brand equity (Keller, 1993). The aforementioned viewpoints of the researchers lead
to the conclusion that brand-oriented strategies are crucial in sustainable operation and growth currently.
Undeniably, the only way coffee chain stores can stand out against their competitors is to build brand equity.
In other words, brand equity can ensure some chain stores remain in advantage by offering a powerful
platform to launch new products, protecting their brand from attacks of other competitors, and influencing
brand preferences and purchasing intention of consumers
2.3 The importance of brand positioning
Brand positioning is the core of making brand strategies. It includes two components- the first is the benefits
a brand can generate and the second is the consumers who value those benefits. Brand and positioning are
two sides of the same coin in that brand lies in the consumer perceptions and positioning is the process in
which a brand is introduced by a corporate to consumers. Aaker argues that brand positioning is one part of
brand identity and brand value. It also actively informs consumers about the position of its brand and sends a
message to consumers that this brand surpasses any others in competition. In other words, brand positioning
determines the direction for marketing and promotion (Aaker, 1996).
Many marketing experts believe there is no need to distinguish brand strategy from brand positioning,
because it would be impossible to create a unique value for a brand in consumers’ mind without positioning
(Temporal, 1999).
3.4 Brand positioning strategy
On basis of six positioning strategies proposed by Aaker and Shansby (1982) as well as other related
researches, Kotler(1999) makes a list of seven kinds of positioning: (1) Attribute positioning: positioning a
brand with the characteristics and features of the products (2) Price or quality positioning: positioning a
brand on certain level of hierarchy in price or quality (3) Use or application positioning: positioning a brand
in accordance to the use and application of the products (4) User positioning: positioning a brand according
to targeted users of the products (5) Product category positioning : positioning a brand according to the
category in which the products fall(6) Competitor positioning: positioning in accordance to the status of the
competitors (7) Benefit positioning: positioning according to the special benefits the product offers to
consumers.
3. Research methodology
The purpose of this chapter is two-fold. One was aimed to illustrate the methodology used in this research
and the other to justify the sampling design and data analysis tools selected to accomplish the goals based on
the first chapter of motivation and second chapter of literature reviews.
3.1 research subjects and area
The purpose of this study was aimed to use MDS to analyze the consumer brand perception in the Tao-yuan
area. Famous coffee chain stores and convenient stores which offer ground coffee were targeted on our
1
research list, ranging from Starbucks, 7-ELEVEN, Familymart, Dante, e-Coffee, 85°C, McDonald.
3.2 research methods and tools
Our research adopted questionnaires as the method to investigate the consumer behaviors of coffee chain
stores, in order to further examine their market segmentation. Our questionnaires were designed in the
directions suggested by our title “Using MDS to position the brand perception of coffee chain stores-a case
study of the Tao-yuan area.” The research tools were based on relevant national literature reviews and
measurements, together with interviews with consumers at different age groups about the motives and
benefits behind their purchases.
3.3 Design of questionnaires
All the question items in our questionnaires were designed to analyze brands. Before the design of our
questionnaires, we had interviewed consumers in the Tao-yuan area to solicit the impressions about and
suggestions for coffee brands, to induce the general expectations they had and factors they considered when
they decide which coffee store to visit for their coffee. The transcriptions of the interviews were simplified
for the purpose of further statistic analysis and questionnaire design. The questionnaires were divided into
two parts-one is importance assessment and the other basic information.
3.4 Sampling design
Our research adopted the convenient sampling of non-probability sampling, a sample data collection method.
There were instructions provided to fill in the questionnaires which would be collected right after completion.
The selected eight coffee chain stores in the Tao-yuan area were sampled to distribute questionnaires. During
the time of investigation from first to thirtieth of January in 2010, four hundred questionnaires were
distributed in total. After ruling out the incomplete ones, three hundred and twenty effective questionnaires
were collected.
3.5 Data analysis
To accomplish the purposes of this study and verify the relevant hypothesis of ours, the data analysis was
divided into several stages.
a. Cluster analysis
Cluster analysis or clustering is the assignment of a set of N number of observations into I number of
subsets, in which I is less than or equal to N. This analysis functions to reduce observations and to group
similar ones into clusters. With the differences between the clusters widened and those in them narrowed,
these clusters are then treated as categories and will be renamed for strategic purposes.
b. Multi-dimensional scaling analysis
Multi-dimensional scaling /MDS analysis is a set of related statistical techniques that use N number of
subjects, in according to P number of parameters, to evaluate M number of objects. Its function is to give
perception positioning analysis through perceptual maps. Perception analysis includes benchmark
analysis, competition situation analysis, crucial factor assessment, strategic analysis.
4. Results and data analysis
4.1 Cluster analysis
This study adopted MDS to evaluate brand perceptions/positioning. On basis of perception positioning, the
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competition cluster analysis and benchmark brand analysis were made.
Diagram 1 Perception map
Positioning map for brand perception
Second-dimensional axe
Starbucks
Dante
McDonald
e- Coffee
85°C
Familymart
Seven-Eleven
First-dimensional axe
Table 1 Clustering analysis
Final clustering central points
Attribute
Clusters
1
2
3
4
5
85°C, McDonald
Starbucks
7-ELEVEN
Dante, e-Coffee
Familymart
Corporate image
5.30
5.82
5.70
3.79
4.68
Quality of service
4.93
5.67
5.18
3.89
4.37
Efficiency of service
5.15
5.33
5.42
3.88
4.63
Convenience
5.32
4.67
6.38
3.20
5.06
Ambience
4.90
5.70
3.32
3.90
3.33
Diversity of products
4.84
5.25
4.97
3.84
4.17
Quality of products
4.77
5.76
4.65
3.73
4.02
Price
4.95
3.87
5.63
3.76
4.60
Environment & interior design
4.84
5.77
4.47
3.84
4.04
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4.2 Benchmark analysis
Bench analysis is used to identify the distinctive brand which can serve as learning exemplar for other brands.
Brands can be divided into benchmark and non-benchmark groups-the former are the coffee chain stores
which stand out in certain attributes and the latter are not. Through this procedure, it is able to differentiate
the groups of brands with higher scores from others. It is shown in table 2 that the benchmark brands in
terms of corporate image, quality of service, and efficiency of service are Starbucks, 7-11, McDonald. The
benchmark brands in the attribute of convenience are 85°C, Starbucks. The benchmark brands in the attribute
of ambience are 85°C, Starbucks, 7-11, and McDonald. The benchmark brands in terms of diversity and
quality of products are 85°C, Starbucks, 7-11. In terms of the price, 85°C, 7-11, and McDonald are
benchmark brands. In terms of the environment and interior design, 85°C, Starbucks and 7-11 are benchmark
brands.
Table 2 Benchmark analysis
Attributes
Brands
Scores
Starbucks
5.82
Benchmark
Brand corporate
Attributes
Brands
Scores
85°C
5.21
Starbucks
5.25
7-ELEVEN
4.97
85°C
4.91
Starbucks
5.76
Benchmarks
Brand product
7-ELEVEN
5.70
Benchmark
image
Benchmark
variety
McDonald
5.43
Starbucks
5.67
Brand service
Brand product
7-ELEVEN
5.18
benchmark
quality
Benchmark
quality
McDonald
4.96
7-ELEVEN
4.65
Starbucks
5.33
85 度 C
5.18
7-ELEVEN
5.42
7-ELEVEN
5.63
McDonald
5.32
McDonald
4.72
85°C
5.29
85°C
4.81
Starbucks
5.77
McDonald
4.88
Brand service
Benchmark
Brand price
Benchmark
efficiency
Brand convenience 7-ELEVEN
6.38
McDonald
5.35
85°C
4.83
Starbucks
5.70
McDonald
4.97
Brand store
ambience
Brand store
Benchmark environment and
interior design
Benchmark
Benchmark
4.3 Competition situation assessment
Competition situation assessment can pinpoint the advantages and disadvantages for the objects, according to
the performances evaluated by P number of assessment parameters. Competition situation analysis is crucial
in analyzing interior environment and is a pre-process work for strategic plans.
Table 3 Competition situation assessment
Competition situation assessment
Familymart
Competitive
Attributes
Scores
Competitive
Attributes
Scores
1
Advantages
None
Brand corporate images
4.68
Brand service quality
4.37
Brand service efficiency
4.63
Brand convenience
5.06
Brand store ambience
3.33
Brand price
4.6
Disadvantages
Brand store environment and
4.04
interior design
Brand product variety
4.17
Brand product quality
4.02
Dante
Competitive
Attributes
Advantages
None
e-Coffee
Scores
Competitive
Attributes
Advantages
None
Brand corporate image
4.04
Brand corporate image
3.53
Brand service quality
4.1
Brand service quality
3.68
Brand service efficiency
3.98
Brand service efficiency
3.78
Brand convenience
3.31
Brand convenience
3.09
Brand store ambience
4.22
Brand store ambience
3.58
Brand price
3.8
Disadvantages
Disadvantages
Brand price
3.71
Brand store environment and
Brand store environment and
4.13
3.54
interior design
interior design
Brand product variety
4.01
Brand product variety
3.67
Brand product quality
3.93
Brand product quality
3.52
McDonald
Competitive
Advantages
Scores
Attributes
Brand corporate image
85°C
Scores
Competitive
5.43
Attributes
Scores
Brand convenience
5.29
Advantages
Brand service quality
4.96
Brand store ambience
4.83
Brand service efficiency
5.32
Brand product variety
5.21
Brand convenience
5.35
Brand product quality
4,91
Brand store ambience
4.97
Brand price
Brand price
4.72
Brand store environment and
5.18
4.81
interior design
Brand store environment and
4.88
Brand corporate image
5.18
interior design
Disadvantages
Disadvantages
Brand product variety
4.46
Brand product quality
4.63
Brand service efficiency
Starbucks
Competitive
Attributes
Brand service quality
4.9
4.97
SEVEN
Scores
Competitive
Attributes
Scores
1
Brand corporate image
5.82
Brand corporate image
5.7
Brand service quality
5.67
Brand service quality
5.18
Brand service efficiency
5.33
Brand convenience
6.38
Brand store ambience
5.7
Brand product variety
4.95
Advantages
Advantages
Brand product variety
5.25
Brand product quality
4.65
Brand product quality
5.76
Brand price
5.63
Brand store ambience
3.32
Brand store environment and
5.77
interior design
Brand convenience
4.67
Brand price
3.87
Disadvantages
Disadvantages
Brand store environment and
4.47
interior design
5. Conclusions and suggestions
5.1Conclusions
This study adopted MDS analysis to discuss positioning of brand perception, using consumers visiting coffee
chain stores in the Tao-yuan area as our research subjects. It compared and contrasted the differences among
the coffee brands of that area, under the theoretical and research framework of benchmark brand analysis and
competition situation analysis, in order to help to make positioning strategies for the private brands in the
future.
5.2 Suggestions
(1) Dante
The lack of promotions and advertisements of these coffee chain stores, which were mostly set up in Taipei
City in an early stage, deprives their consumer brand awareness. Our research suggests they should increase
the frequency of their brand’s public exposure to promote recognition and build parting lots.
(2) Starbucks
In spite of their high consumer brand awareness and good reputation as good gathering occasions, not all
consumers respond to their prices well. Our research suggests they design a special marketing model for
students or the group of consumers constrained to their budgets.
(3) 85° C
Known for their slogan “35 NT dollars for a high-end coffee,” these coffee chain stores are chosen to open
at street corners, popular locations for business spots here, at the cost of parking space for consumers.
Coffee-to-go consumers seem to enjoy more the benefits of the locations than those who would like to have
their coffee at the stores.
(4) e-Coffee
Selling both coffee and tea drinks, the chain stores of e-Coffee suffer from ambivalent store image and are
mistaken by many consumers as just some regular coffee chain stores. The over-expansion of the chain at the
height of its fame has taken its toll on maintaining its brand image and the quality of products and raised
doubts in consumers about its professionalism and quality.
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(5)7-ELEVEN
Although 7-ELEVEN has created the one and the only brand image, made a great and persistent effort to
apply new marketing strategies, differentiated itself from others with fresh foods and customized products
and services, coffee consumers are hesitated to have their coffee at the stores, concerned with the
disturbances of other speedy grocery shoppers, in addition to the limited coffee choices and seats provided
there. Their locations, carefully chosen by Euclidean linear distance patterns, are spots for convenience but
not those for gathering occasions.
(6)Familymart/Mr. Brown Coffee
Our investigation revealed that Familymart-Mr. Brown Coffee is not well positioned in brand awareness and
gathering occasions. Familymart-Mr. Brown Coffee chain store system is a strategic alliance by two different
business sectors- one is Familymart convenient stores and the other Mr. Brown Coffee of King Car Group.
However, Familymart convenient stores are not as wide in distribution as President chain stores, and their
products and marketing, to many consumers, are not as on the cutting-edge as those of President’s, which
can manage to impress consumers with their originality.
(7) McDonald
McDonald is an international brand which enjoys high brand awareness, but some consumers complained the
unavailability of drive-through services at some McDonald restaurants in Taiwan and the lack of
independent space for surfing the net and sipping their cups pose a serious challenge to their purchase
intentions. Although their marketing strategy of McDonald Sweet Cards attracts the consumer group of
students, the quality of coffee at their restaurants still demands great improvement.
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